A

Summer Training Project Report

ON
A case study on Digitalization of HDFC BANK LTD.

1
DECLARATION

2
ACKNOWLEDGEMENT

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 TABLE OF CONTENTS

1) INTRODUCTION (5-8)

2) COMPANY PROFILE (9-16)

(3) PRODUCT RANGE (17-40)

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED ACCOUNT

 DEMAT ACCOUNT

SAFE DEPOSIT LOCKER’S

(4 ) MANAEMENT (41-50)

(5) OBJECTIVE OF THE RESEARCH (51-52)

(6) RESEARCH METHODOLOGY (53-54)

(7) SOURCE OF INFORMATION (55-64)

(8) SERVICES STRATEGY OF THE HDFC BANK (65-68)

(9) DATA ANALYSIS (69-80)

(10) FINDINGS (81-84)

(11) SUGGESTIONS AND RECOMMENDATIONS (85-88)

(12) LIMITATION (89-90)

(13) QUESTIONNAIRE (91-95)

(14) BIBLIOGRAPHY (96-97)

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INTRODUCTION

5
 INTRODUCTION

OVERVIEW OF BANKING SYSTEM IN INDIA

The banking system is an integral sub-system of the financial system. It represents an

important channel of collecting small saving from the household and leading it to the

corporate sector.

The Indian Banking system has the Reserve Bank of Indian (RBI) as the apex body for all

matters relating to the banking system. It is the "central bank " of India. It is the banker to

all other banks.

FUNCTION S OF RBI.

1. Currently issuing authority.

2. Banker to the Government.

3. Banker to other banks.

4. Framing of Monetary Policy.

5. Exchange control

6. Custodian to Foreign Exchange and Gold Reserves

7. Developmental activities

8. Research and Developing in the banking sector.

Following is the classification of banks:

 NON SCHEDULED BANKS:

These are banks which are not included in the second schedule of the banking

Regulation Act, 1965. It means they do not satisfy the conditions lay down by that

schedule. They are further classified as follows:

1. Central Co-operative Banks and Primary Credit Societies.

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2. Commercial Banks.

 SCHEDULED BANKS

Scheduled Banks and banks which are included in the second schedule of the Banking

Regulation Act, 1965. According to this schedule a scheduled bank:

a. Must have paid - up capital and reserve of not less than Rs. 500,000;

b. Must also satisfy the RBI tat its affairs are not conducted in a manner detrimental

to the interest of its depositors.

Scheduled banks are sub-divided as;

1. State Co-operative Banks;

2. These are Co-operatives owned and managed by the state.

3. Commercial Banks;

4. These are business entities whose main business is accepting deposits and extending

loans. Their main objective is profit maximization and adding shareholder value.

These are further sub-divided as;

1. Indian Banks;

These banks are companies registered in India under the Companies Act. Their place of

origin is in India.

These are also sub-divided as;

1. State Bank of India and its Subsidiaries.

2. This group comprises of the state Bank of India (SBI) and kits seven subsidiaries viz.

State Bank of Patiala, State Bank Hyderabad, State Bank of Travancore, State Bank

of Bikaner and Jaipur, State Bank of Mysore, State Bank of Saurashtra, State Bank of

Indore.

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3. Other Nationalized Banks;

4. This group consists of private sector banks that were Nationalized the Government of

India Nationalized 14 private banks in 1969 and another 6 in the year 1980

5. Regional Rural Banks;

6. These were established by the RBI in the year1975 of Banking Commission. It was

established to operate exclusively in rural areas to provides credit and other facilities

to small and marginal farmer, agricultural laborers, artisans and small entrepreneurs.

7. Old Private Sector Banks.

8. This group consists of banks that were established by the privy states, community

organisations or by a group of professionals for the cause of economic betterment in

their area of operations. Initially their operations were concentrated in a few regional

areas. However, their spread through the nation as they grew.

9. New private Sector banks;

These bank were started as profit oriented companies after the RBI opened the banking

sector to the private sector. These banks are mostly technology driven and better

managed than other banks.

 Foreign Banks

These are banks that were registered outside and had originated in a foreign country.

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COMPANY PROFILE

9
 COMPANY PROFILE

HDFC Bank was incorporated in Aug. 1994 and promoted by Housing Development

Finance Corporation Limited (HDFC) India's premier housing finance company which

also enjoys an impeccable track record in India as well as in international markets. 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 the RBI's liberalization of the

Indian Banking Industry. HDFC Bank concentrates in four areas - corporate banking,

treasury management, custodial services and retail banking. It has entered the banking

consortia of over 50 corporates for providing working capital finance, trade services,

corporate finance and merchant banking. It is also providing sophisticated product

structures, sound advice and fine pricing mainly in areas of foreign exchange and

derivatives, money markets and debt trading and equity research through its state-of-the-

art dealing room. With its sophisticated and customer friendly facilities & services

including multi-branch access, ATMs & cluster deposits and is well positioned to

establish a significant niche for itself in retail banking.

In Feb. 2000, Times Bank has been amalgamated with the bank. This is an important

milestone in the history of bank as well as Indian banking sector, being the first merger of

two private sector banks. This adds

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Significant value to bank in terms of increased branch network, expanded geographic

reach, enhanced customer base, skilled manpower, etc. Recently HDFC BK & Life

Insurance Corporation (LIC) forms alliance for online facility for payment of insurance

premium. With this facility, LIC policy holders can now pay their insurance premiums

through HDFC Bank's on-line payment facility. HDFC BANK has become the first

private sector bank to be authorized by the Central Board of Direct Taxes (CBDT) as

well as the RBI to accept direct taxes, commencing April 01 2001. The taxes will be

accepted at specified branches of the bank. Also it has announced a strategic tie-up with a

Bangalore-based business solutions software developer Tally Solutions Pvt (TSPL) for

developing and offering products and services facilitating on-line accounting and banking

services to SMEs (Small and Medium Enterprises).In 2001-02 the bank was listed on the

New York Stock Exchange in the form of ADS. Each ADS represents 3 equity shares.

Consequent to the issue, the paid up capital of the Bank has increased by Rs.37.42 crores.

The Bank was selected for The Economic Times Award -Corporate Excellence for

Emerging Company. The Bank has continued to receive awards and gain recognition

from various leading domestic and international publications during 2002-03.The bank

was selected as "Best Bank in India 2002" by Euromoney,"Best Local Bank in India

2002" by Finance Asia, both

Awards being received for the fourth year in succession. The bank was also rated as the

"Best Domestic Commercial Bank 2002" by Asia money. The bank was selected from

amongst over 400 nominations from 24 countries, to be a recipient of the Computerworld

Honors 2002 award in the Finance, Insurance and Real Estate category for its use of

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Information Technology. During 2002-03, the bank has allotted 670000 of Equity Shares

to its employees under ESOP. Consequent to this allotment, bank's Paid up Equity has

been increased from Rs.281.37 crores to Rs.282.05 crores.

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 the RBI's liberalization of the Indian Banking Industry.

The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its

registered office in Mumbai, India. The bank commenced operations as a Scheduled

Commercial Bank in January 1995.

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Promoters

HDFC is India's premier housing finance company and enjoys an impeccable track record

in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to

remain the clear market leader in mortgages and banking services in India. Its

outstanding loan portfolio covers over a million dwelling units. HDFC has developed

significant expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities. With its

experience in the financial markets, a strong market reputation, large shareholder

base and unique consumer franchise, HDFC was ideally positioned to promote a

bank in the Indian environment

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional / branch banking on the retail

side. The bank has three key business areas: -

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 Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing companies in the

Indian corporate sector and to a small extent, emerging mid-sized corporate. For these

corporate, the Bank provides a wide range of banking services, including working capital

finance, trade services, transactional services, cash management, etc. Based on its

superior product delivery / service levels and strong customer orientation, the Bank has

made significant inroads into the banking consortia of a number of leading Indian

corporate including multinationals, companies from the domestic business houses and

prime Public Sector companies. It is recognized as a leading provider of cash

management and transactional banking solutions to corporate customers, mutual funds,

stock exchange members and banks.

a) Retail Banking Services

The objective of the Retail Bank is to provide a full range of financial products and

banking services, giving the customer a one-stop window for all his banking

requirements. The products are backed by world class service and delivered to the

customers through various delivery channels including the branch network, as well as

alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile

Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus

and the Investment Advisory Services programs have been designed keeping in mind

needs of customers who seek distinct financial solutions, information and advice on

various investment avenues. The Bank also has a wide array of retail loan products

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including Loans against shares, Auto Loans, Personal Loans and Loans for Consumer

Durables and Two-wheelers. It is also a leading provider of Depository Participant (DP)

services for retail customers.

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as

well. The debit card allows the user to directly debit his account at the point of purchase

at a merchant establishment, in India and overseas. The Bank launched its credit card in

association

With VISA in November 2001. The Bank is well positioned as a leader in various net

based B2C opportunities including a wide range of internet banking services for Fixed

Deposits, Loans, Bill Payments, etc.

b) Treasury Operations

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalization of the financial markets in India, corporate need more sophisticated risk

management information, advice and product structures. These and fine pricing on

various treasury products are provided through the bank's Treasury team.

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PRODUCT RANGE

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 PRODUCT RANGE

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED DEPOSIT

 DEMAT ACCOUNT

 SAFE DEPOSIT ACCOUNT

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SALARY A/C

There are three type of product code in salary account .product code 105 is basically

employees of the regular organization, they are not provided with instant kit and those

how are provided with instant kit there product code is 154, for the premium customer the

product code is 114 and those how are provided with instant kit they have the product

code of116, product code 120 is only defense person organization/department. If product

code 120 account holders want to a debit card then they have to pay Rs.100 per annum.

Branch code for Meerut Garh Road branch.

With HDFC Bank’s Salary Account, costumer receives an array of rewards with their

monthly pay. All at no extra cost to customer.

Their employees get privileged services that help them achieve even more

 Direct Salary Credits – Their employee need not go to the band ,deposit their cheques

and wait for it to be cleared .Their salary is automatically credited to their accounts

 Interbranch/Intercity Banking at 142 branches and over 360 ATMs

 No minimum Balance to be maintained in the account to avail of these benefits

Interbranch/Intercity Banking: - Costumer can use any of HDFC BANK branches/

ATMs across 111 cities in India, no matter where their

Account is held e.g. costumer may open their account in Pune and can operate this

account the next time costumer travel to Bangalore or for that matter from any other city.

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Also no need to open a new account when costumer gets transferred to another city where

HDFC BANK has a branch.

ATM 24-hour Banking: - Over 675 ATMs across 111 cities enable costumer to

withdraw up to Rs.15, 000 a day.

Free International Debit Card: - It’s like an ATM Card that costumer can shop with

and make payments at 25,000 outlets in India and 10 million worldwide. Costumer can

also withdraw money from over 5.6 lakhs Maestro/visa/Plus/cirrus ATMs, in 140

countries.

HDFC BANK also waives the annual fee for one additional card per account for the first

year.

Free Demand Drafts: Customers can avail of free demand drafts up to Rs.25, 000/- per

instrument payable at any city where HDFC BANK have branches.

Free Phone Banking: - This 24- hour’s facility enables customer to conduct a range of

banking transactions with just a call on to the no. 0522-4003333

Free net Banking: - Customer can now bank at the click of a mouse, backed by the

highest level 128-bit security.

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Free Mobile Banking: - Customer can even conduct a range of banking transactions

over a mobile phone, using SMS facility or a WAP activated phone.

Free Personalized Cheque Book: - Their employees get personalized Cheque book with

the name of the account holder printed on the cheque leaves.

Free Payable At Par Cheque Book:- Employees of the premium organization will get

cheque books which are localized all over INDIA.

Sweep-in Account: - This facility is a fixed deposit linked to savings account. So even if

funds are short in the savings account that entire customers have to do is just issue a

Cheque. The money is automatically

Swept in from the fixed deposit into the savings account. The balance amount continues

to earn high interest rate.

Super Saver Account: - This account gives customer an overdraft facility of unto 75%

of the Fixed Deposit in times of emergency. Customer can access their funds either

through an ATM or by issuing a Cheque, while the Fixed Deposit continues to earn high

interest rate.

Free Collection of Outstation Cheques: This account entitles customer to free

collection of outstation cheques drawn on all cities where HDFC BANK have branches.

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(2) How else do customer benefit from HDFC Bank’s Salary Account?

With HDFC BANK Salary Account, customer enjoys a number of privileged value

added services such as:

Direct Salary Credits: - Customer salary is automatically credited to their account. All

customer have to do is inform their payroll department of their HDFC Bank Salary

Account number.

Demat Account: Customer can enjoy paperless trading, by opening a Demat account.

Joint Account facility: - Customer can open a joint account by opening a Demat account

Personalized Cheque Book: Customer get a personalized cheque boom with the name

of all the account holder (S) printed on the cheque leaves.

At Par Cheque Book: Customer get at par cheque books which are treated local all over

India.

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SAVING ACCOUNT
The e-Age Saving Account from HDFC Bank brings customer a comprehensive

range of products and services. Each one is designed to minimize their effort,

making it much simpler for you to do their banking. HDFC BANK now have 211

branches in 110 cities and over 650 ATMs across the country. Add to this an

international network of over 6.5 lakhs ATMs which customer can access with their

international Debit Card. That’s world class banking for customer.

Free 24 hour ATM:- Customer can withdraw up to Rs. 10,000 per day from any of

HDFC BANK extensive network of over 650 ATMs across 110 cities all over the

country. Customer can also deposit cash/cheques, get an account balance, request for a

cheque book and transfer funds, all at the push of a few buttons. This amazing facility is

available 24 hours a day 365 days a year.

Rs. 15,000 per day with their Debit Card.

Free Net Banking: - HDFC BANK convenient Net banking facility will open up a

whole amount of services for customer at just the click of a mouse. Customer can:

 Check their upto the minute account balance etc.

 Open a Fixed Deposit.

 Get a Demand Draft

 Make a TDS inquiry

 Request a stop payment on a cheque

 Request for a new cheque boom

 Transfer funds within their own accounts
 Carry out third party transfer of funds

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International Debit Card: The HDFC Bank international Debit Card lets customer

shop and also withdraws money from HDFC BANK ATM network. With HDFC

BANK’S international Debit Card, customer can shop at 18,000 establishments in India

and over 100 Lakhs establishments in 140 countries. Customer can also withdraw cash

from over 1600 VISA/Plus ATMs in India and 605 Lakhs ATMs in 140 countries. The

amount customer spend on their card will be automatically debited from their Savings

Account. So when customer go shopping customer don’t have to carry cash!

Interbranch/intercity Banking:- Customer can access their account from any of

the 211 branches in 110 cities and over 650 ATMs across the country. So customer can

withdraw cash from another branch, through a self-cheque or an ATM. Customer could

also transfer funds between two accounts, or deposit a local cheque in one branch and get

is credited to their account in another city.

NOTE: - On receiving Costumer instruction to pay their bill, the bill amount will be

deducted form customer account.

Free Phone Banking: - HDFC Bank’s 24 hour Phone Banking service lets customer

conduct a wide range of banking transactions from the comfort or their home of office.

Phone No. 0522-4003333

Customer can:-

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 Get their account details

 Ask for a cheque book or a statement

 Open a Fixed Deposit

 Transfer money within their own accounts

 Order a Demand Draft

 Stop cheque payment, etc.

Now customer can do all their banking activities through the phone.

All this for an average quarterly balance of just Rs. 5000.

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CURRENT ACCOUNT

At HDFC Bank, HDFC BANK understand that running a business requires time and

money, also that their business needs are constantly evolving. That’s where HDFC

BANK comes in. HDFC BANK provides customer with a choice of Current Account

options to exclusively suit their business whatever the size scope.

Take Costumer pick!

Customer can choose the Current Account that works best for their specific business

needs.

1. Regular Current Account

The regular Current Account requires an average quarterly balance of Rs.10, 000 only.

Besides the free ATM card and easy accessibility, their first 50 cheque leaves are offered

free.

2. Premium Current Account

Their account can be operated from any of the branches for depositing of withdrawing

money. A Premium Current Account requires an average balance of only Rs. 25.000 per

quarter. Moreover, for premium Current Account holders cheque leaves are free.

Free Services offered to Regular and premium current Account holders:

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 One ATM card per account (only for individuals/Sole Proprietorships).

 Replacement in case of damaged cards.

 Monthly statement.

 Online, real-time Net Banking.

 24 hours Phone Banking access (please check for availability in their city,).

3. HDFC Bank Trade

It is a Current Account ideal for small funds transfer across various cities in the country.

Trade Account is suitable for small businessmen and traders.

Features offered to HDFC Bank Trade Account holders:-

 At par payable cheques.

 Free inter-city Funds Transfers up to Rs. 25 lacs.

 Free Pay Orders

 Free Demand Drafts Payable on HDFC Bank locations upto 30 per quarter. (Check

with branch for value limits).

ATM card for individuals/Sole Proprietorships. Free online, real time Net Banking.

24-hour Phone Banking access (please check for availability in their city).

A Trade Current Account requires an average quarterly balance of only Rs. 40,000.

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4. HDFC Bank Plus

Single Account, Multi-city Banking

If their business regularly requires customer to receive and send funds to various cities in

the country, HDFC Bank Plus provides customer with the means to facilitate such

transactions efficiently.

With just one account, customer have access to more that 111 cities in the country. In

other words, the power of a single account and multi-city banking. This results in huge

savings on inter-city movement of funds and other service charges.

Furthermore, HDFC BANK strategic alliance with Chase Manhattan Bank gives

customer the advantage of competitive rats for trade finance

And faster inward/outward remittances. The average balance requirement for the HDFC

Bank Plus account is Rs. 100,000 per quarter.

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FIXED DEPOSIT
Super save account

(A temporary overdraft against their fixed Deposit)

Would not it be great to earn a high interest on their Fixed Deposit and at the same time

enjoy the liquidity associated with a Saving account/ Get their self the HDFC Bank

Super Save Account and that’s exactly what customer will have.

How do I benefit from the Super Save Account?

Maximum Liquidity

Their Super Saver Account allows customer to issue cheques and use and ATM card for

withdrawals, just like Savings Account. Customer can access their account from any of

HDFC BANK 211 branches or over 650 ATMs spread across India. Even in an

emergency, customer need not break their fixed Deposit to withdraw money. So customer

get their money whenever customer need it.

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Easy operation

Customer can open a supersaver Account with nominal sum of just Rs. 25,000 and enjoy

a temporary withdrawal limit of upto 75% of their deposit Even after customer withdraw

a part of their limit; their entire deposit continues to earn a high rate of interest, i.e. their

deposit in not broken. Customer are required to pay an overdraft interest that is 2% more

than the interest earned by their Fixed Deposit for the amount of overdraft, and only for

the period for which customer use the money. Besides, customer can take an overdraft by

simply using a cheque of through an ATM. Isn’t that great?

 For overdraft limits greater than Rs. 2 Lakhs, overdraft interest will be charged at

the Bank’s Prime Lending Rate (PLR).

High yield

Customer can choose any account plan between 6 months and 5 years for their Super

Saver Account. HDFC BANK personal Bankers will give customer expert advice on the

best possible account plan yielding the most attractive interest, depending on their needs.

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Better Returns that a Savings Account

Even if customer withdraw unto 70% of their Supersaver Account on day one and do not

put it back for a year, customer still earn more than customer would through a Saving

Account. Incredible isn’t it?

For example, let us assume that the interest on a 3-year deposit is 10% p.a. and customers

have a Fixed Deposit of Rs. 50,000 with the bank. If customer withdraw Rs.10, 000 from

their Super Saver Account, their earnings in a year will be:

Customers earn Rs. 5000@ 10% p.a.on Rs.50, 000.

Customers are charged Rs. 1,200@ 12% for the year.

Therefore, the net interest customer earn is Rs. 3, 8000

Thus, customer earns Rs. 3,800 on a balance of Rs. 40,000 in their Super Saver Account.

On the other hand, customer would earn only Rs. 1,600 (@ 4% p.a.) with the same

balance in an ordinary Savings Account. A comparison of interest earned in a year from a

Rs. 50,000 Super Saver Account (3year plan) and a Savings Account, at different levels

of withdrawal, is shown below:

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Amount Interest earned in 1Year
Super Saver Savings account @ Net Gain (Rs.)
withdrawn on day
Account @ 10% 4% p.a. (Rs.)
one (Rs)
P.A. (Rs.)
0 5000 2000 3000
10000 3800 1600 2200
20000 2600 1200 1400
25000 2000 1000 1000
30000 1400 800 600
35000 800 600 200

In fact, the higher the balance in their Super Saver Account, the higher their returns.

Moreover, the shorter the period for which customer use the money, the higher their

earnings.

Free ATM Card

With every Super saver Account customer get a free ATM Card. This allows customer to

enjoy 24 hour banking 365 days a year, including Sundays sand bank holidays. Their

convenience is all the matters.

 Available in select cities only

Personalized Cheque Book

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Customer also gets a cheque book with every Super Saver Account, with their name

printed on it.

Overdraft on Current Account against their fixed Deposits

Customer can also get an overdraft on their Current Account against their own fixed

Deposits with the bank. Please contact their Personal Banker for details on

documentation required.

SWEEP IN ACCOUNT

(A Flexible Fixed Deposit cum Savings Account)

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Imagine having an account that changes to suit their needs. When customer want their

money to earn high interest it worked like a Fixed Deposit, when customer want to

withdrew money in a hurry, it works like a savings Account. Customers win both ways

So what is a Sweep-in Account?

It is a Fixed Deposit that comes automatically linked to a savings Account. So whenever

customers’ are short of funds in their Saving account and their money is “blocked” in a

fixed Deposit, customer just have to issue a cheque (or use the ATM.) their money

automatically gets transferred, i.e. swept-in from their fixed Deposit into their Saving

Account. It’s as easy as it sounds. To open a sweep in Account, all customer need is to

open a Fixed Deposit as per the norms of the bank and a Savings Account with no

minimum balance requirement.

Customer need to maintain a minimum fixed Deposit of Rs, 50.000 at all times to avoid

service charges. In case of non maintenance of Rs.50.000 in fixed deposits, customer

savings Account will be subject to service charges as applicable. The saving account

needs to be opened with an initial amount of Rs.5000.

How does it work?

Since the Sweep in Account holds their money in a Fixed Deposit in units of Re.1 every

time money is swept from their fixed deposit to their Savings account, interest loss in

minimized. Further, the amount swept in earns interest for the tenure that it has

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completed without any penalty. The rest of their deposit continues to earn the original

interest rate till maturity.

There’s more! Customer can, if customer like always open an add on deposit for just Rs.

5,000. Further, customer link as many deposits as customer like to their Savings account.

And the Sweep in automatically chooses the oldest deposit first before sweeping money

into their Savings Account.

Enjoy the benefits of a truly flexible fixed Deposit. Just open a Sweep in Account. The

Savings accounts comes with it.

Call us and HDFC BANK representative will come over to their home of office and open

an account for customer. Well take care of details and formalities including their

photograph.

DEMAT ACCOUNT

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Now customer can avoid mutilation, duplication and pilferage of share certificates. Open

a Demat Account with HDFC Bank and protect their securities from damage. loss and

theft. And remember, HDFC Bank is the largest depository participant amongst all banks.

Why do I need Demat Account?

With SEBI making trading mandatory in the Demat form and the advent of Rolling

Settlements it is imperative that all investors have a Demat Account with a depository

participant. When customer place a buy order, a seller can deliver the securities in Demat

form, which can only be credited to a Demat Account.

What benefits do I get from an HDFC Bank Demat Account

 No Account Opening Charges.

 Nominal Annual Maintenance Charges.

 Competitive fees for transactions.

 Demat Account Status on the internet.

 Option to open a Demat Account with NSDL, CDSL or both.

 Personalized instruction Book.

What other benefits do I get?

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 Paperless trading which will help prevent mutilation. Loss and misplacement of

certificates and eliminate the problems of bad delivery.

 Safety of their securities with HDFC Bank.

 Problems of bad delivery, theft or mutilation eliminated.

 Zero stamp duty.

 Faster settlements of buy and sell orders, direct credit of allotment from public/

rights/bonus issues.

How do I open an HDFC Bank Demat Account?

 Fill up the application form and the Agreement and get it singed by all the applicant.

 Attach one photograph of each applicant.

 Provide proof of identity/Residence (copy of ration card/ driving license/voters

ID/passport or PAN

 card). Please bring the original to the bank along with a photocopy.

 Annual charges of Demat account Rs.499 per annum

Once their Demat account is active, customer will receive periodic account statements

from HDFC Bank. HDFC bank’s Demat Account is

also accessible on the internet, allowing customer to check balances, transaction status,

Demat status etc. online.

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SAFE DEPOSIT LOCKERS

Safeguard their valuables with HDFC Bank lockers.

Their jewellery, share certificates and important documents are far too important for

customer to risk keeping them at home. As an HDFC Bank customer, HDFC BANK

offer customer a safe and secure place to guard their valuables from theft, fire or any

unforeseen circumstances.

Various locker Sizes: HDFC BANK lockers are available in various convenient

sizes. Customer can choose the locker of their choice depending on customer

requirement.

Complete privacy: The spacious design and special mobile screens of HDFC BANK

locker rooms provide complete Privacy. Besides, HDFC BANK allow usage of only one

locker per row, at a time.

Water – Proof Fire Proof and Secure: the lockers are housed in a special area

of the branch which is secured by strong room doors and tamper-proof locks. Besides,

the walls of HDFC BANK locker rooms are specially treated to protect them from water

seepage and fire.

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Convenient hours of operations: Their can operate the lockers during the branch

timings, and even on Sundays at select braches.

How to get a locker at HDFC Bank?

When customer open an account with us customer can ask about HDFC BANK locker

facilities.

Rating

HDFC Bank's programme for Certificates of Deposits has been rated by the Indian rating

agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the

highest rating for short term instruments indicating superior capacity for

repayment.

Business Focus

HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a

sound customer franchise across distinct businesses so as to be the preferred provider of

banking services in the niche segments that the bank operates in and to achieve healthy

growth in profitability, consistent with the bank's risk appetite. The bank aims to ensure

the highest level of ethical standards, professional integrity and regulatory compliance.

HDFC Bank's business philosophy is based on four core values: Operational Excellence,

Customer Focus, Product Leadership and

38
People. The Bank signed a strategic business collaboration agreement with Chase

Manhattan Bank in February 1999.

Capital Structure

The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2

crores. The HDFC Group holds 24.5% of the bank's equity while about 13.3% of the

equity is held by the depository in respect of the bank's issue of American Depository

Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and

Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan

Partners, formerly Chase Capital Partners) together hold about 11.6% of the bank's

equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance is

widely held by about 300,000 shareholders. The shares are listed on the The Stock

Exchange, Mumbai and the National Stock Exchange. The bank's American Depository

Shares are listed on the New York Stock Exchange under the symbol "HDB".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector b

ank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank

Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the

shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

39
received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamation

added significant value to HDFC Bank in terms of increased branch network, expanded

geographic reach, enhanced customer base, skilled manpower and the opportunity to

cross-sell and leverage alternative delivery channels.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network

of over branches spread over cities all across the country. All branches are linked on an

online real-time basis. Customers in 39 locations are also serviced through Phone

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. Being a clearing/settlement bank to

various leading stock exchanges, the

Bank has branches in the centers where the NSE/BSE has a strong and active member

base.

The Bank also has a network of almost over networked ATMs across these cities.

Moreover, 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. It is the only bank in India which provides access to all the 3

major International Card Networks on its ATM network.

40
Management

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this,

Mr.Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Adyta Puri, has been a professional banker for over 20 years

and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy & administration and commercial banking. Senior executives

representing HDFC and J P Morgan Partners (formerly Chase Capital Partners) are also

on the Board.

Senior banking professionals with substantial experience in India and abroad head

various businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting and

retaining the best talent in the industry, the bank believes that its people are a significant

competitive strength. 

41
Technology

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have connectivity which

enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch

access is also provided to retail customers through the branch network and Automated

Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. In terms of

software the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by Finware, both from I-flex Solutions Ltd. (formerly Citicorp

Information Technology India Ltd.). The systems are open, scaleable and web-enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key

goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise

and technology to create a competitive advantage and build market share.

42
AWARDS AND ACCOLADES

HDFC Bank was selected as the "Best Bank - India 1999" and "Best Domestic Bank -

India 2000", "Best Bank - India 2001" by Euro money, and "Best Domestic Commercial

Bank - India 1999" and "Best Domestic Commercial Bank - India 2000", "Best Domestic

Commercial Bank - India 2001" by Finance Asia. In the October 2000 issue, Forbes

Global selected HDFC Bank amongst the top 20 in the Forbes listing of the world's best

small companies. Closer home, HDFC Bank was selected for The Economic Times

Award - Corporate Excellence for Emerging Company of the Year 2000-01 and as

Business India's Best Bank for the year 2000.

In the year 2000, leading financial magazine Forbes Global named us in its list of "The

300 Best Small Companies" in the world and as one of the "20 for 2001" best small

companies in the world.

There have been some other proud moments as well:

London-based Euro money magazine gave us the award for "Best Bank India" in 1999,

"Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002.

Hong Kong-based Finance Asia magazine rated us "Best Domestic Commercial Bank in

India" in 1999, 2000 and 2001 respectively and "Best Local Bank in India " in 2002.

43
Asia money magazine has named us "Best Commercial Bank in India 2002".

The Economic Times has conferred on us The Economic Times Awards for Corporate

Excellence as the Emerging Company of the Year 2000-01.

Leading Indian business magazine Business India named us "India's Best Bank” in 2000.

Another leading Indian business magazine Business Today in a survey rated us "Best

Private Sector Bank” in India in 1999.

For our use of information technology we have been recognized as a "Computerworld

Honors Laureate” and awarded the 21st Century Achievement Award in 2002 for

Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our

technology initiative has been included as a case study in their online global archives.

NASSCOM and economictimes.com have named us the ‘Best IT User in Banking’ at the

IT Users Awards 2003.

We are aware that all these awards are mere milestones in the continuing, never-ending

journey of providing excellent service to our customers. We are confident, however, that

with your feedback and support, we will be able to maintain and improve our services.

44
Product Range

Savings, Fixed Deposits, Current and Demat Accounts Savings Account, Investment

& Insurance : Apart from the usual facilities, you get a free ATM Card,

Interbranch banking, Net Banking, Bill Pay, Phone Banking, Debit Card and

Mobile Banking, among others.

HDFC Bank Preferred: A preferential Savings Account where you are assigned a

dedicated Relationship Manager, who is your one-point contact. You also get privileges

like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat

Account and lower interest rates on loans, to name a few.

Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your

Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The

money is automatically swept in from your fixed deposit into your Savings Account.

Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit.

In an emergency, you can access your funds while your Fixed Deposit continues to earn

high interest.

HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have

HDFC Bank Plus, a Current Account and then some more.

You can transfer up to Rs. 50 lakhs per month at no extra charge, between the four

metros. You can also avail of cheque clearing between the four metros, get cash

45
delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques,

outstation cheque clearance facility, etc.

Demat Account: Conduct hassle-free transactions on your shares. You can also access

your Demat Account on the Internet.

Innovative services for your convenience...

Phone Banking: 24-hour automated banking services with 39 Phone Banking numbers

available. You can just call 4003333 for any type of query regarding the accounts.

ATM 24-hour banking: Apart from routine transactions, you can also pay your utility

bills and transfer funds, at any of our ATMs across the country all year round.

Intercity/Interbranch Banking: Access your account from any of our branches in cities.

Net Banking: Access your bank account from anywhere in the world, at anytime, at your

own convenience. You can also view your Demat Account through Net Banking.

International Debit Card: An ATM card you can shop with all over the country and in

over 140 countries with. You can spend in any currency, and pay in Rupees.

46
Mobile Banking: Access your account on your mobile phone screen at no airtime cost.

Use SMS technology to conduct your banking transactions from your cell phone.

Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs,

Internet, phone or mobile phone. No more standing in long queues or writing cheques.

Although this is not fully activated in Lucknow.

Loans for every need

Now, our loans** come to you in easy-to-pay monthly installments, and are available

with easy documentation and quick delivery.

Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a

computer or an exciting holiday.

New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car, new or

used! And the loans come to you with easy documentation and speedy processing at

attractive interest rates.

Loans against Shares: Get an overdraft up to Rs. 10 lakhs at an attractive interest rate

against physical shares, up to 50% of the market value of your shares. In case of Demat

Shares, you can get a Loans against Shares of up to 65% of the market value of your

shares, till Rs. 20 lakhs.

Two Wheeler & Consumer Loans: To help you buy the best durables for your home.

47
Investment & Insurance: Investment is provided through mutual fund.

Mutual funds are funds that pool the money of several investors to invest in equity or

debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.

Insurance in HDFC Bank has plan for every segment of life, for child there is Young star

Plan, for pension there is Unit Link Pension plan, HDFC Standard Life’s Unit Link

Endowment Plan. For both mutual fund & Insurance Young Star Plan.

48
OBJECTIVE OF

THE RESEARCH

49
 OBJECTIVE OF THE RESEARCH

 To know the various financial products provided by a Bank in the current scenario

with reference to HDFC BANK LTD. MEERUT .

 To know the various facilities provided by the HDFC BANK LTD, MEERUT with an

aim to retain their customers.

 To Check Segment Wise Penetration and Use of Direct Banking Channels.

NEED OF THE STUDY

As the banking sector is the fastest growing sectors in current Business World. So it is

necessary to have In-depth Knowledge of BANK Products provided by them. And to

check Segment Wise Penetration and use of Direct Banking Channels in MEERUT..

50
 RESEARCH

METHODOLOGY

51
 RESEARCH METHODOLOGY

• A questionnaire was prepared to gauge the awareness of HDFC Bank in Retail

banking sector.

• Survey has been done in and out of the bank covering a wide cross-section of the

society.

• The question was presented in one to one interview with each of the respondents.

• Responses of the question had been thoroughly analyzed.

• Conclusions had been arrived at using the response of the questionnaire.

52
SOURCE OF INFORMATION

 Collection of data has been done through secondary sources like. Brochures,

Company profile

 Primary sources are Personal interviews, face to face contact to 140 persons

(approximate).

53
SEGMENT WISE PENETRATION AND USE OF DIRECT

BANKING CHANNELS

HDFC Bank in Lucknow has corporate tie up with various companies. Another part of

my project was to increase the Product Holding Ratio of these corporate. Product

Holding Ratio is the number of products an employee in the organization holds.

Employees of the organization are divided into various Bands like 1, 2,3,4,5. I have to

convert Band 1 customers to Band 2 or Band 2 customers to Band 3 and so on. Band 5

customers are the customers how hold maximum products and they are customers who

are most profitable customers to the bank. The most effective manner to increase the

PHR is to see that whether the customers are using Direct Banking Channel .DBC are

the products like Net banking, Phone Banking, Mobile Banking .If the customers are

using these products then they must not be coming to the bank there by the bank does

not have to spend time and man power in attending that customers. If the customers are

having direct banking channels and are using it then they are of some profit the bank.

Other than DBC there is another product which is the effective way of increasing the

PHR that is Insta Alert, which shows balance of your account on your mobile phone,

although DBC are free of cost services but for Insta Alert the customer have to pay

25 Rs quarterly if they are regular customers and for

the Premium customers these are free of cost .Seeing that the customers are using all the

DBC and Insta Alert than it is to be seen that whether customers are not requiring any

54
other products of the Bank like Credit Cards :-For the premium corporate credit cards

are free, for rest there are some charges that have to be paid by the customers.

Mutual Funds:-Are another way to increase PHR .Having investment in mutual funds is

same for all the customers in the corporate.

Insurance: - This Product is provided to the customers how want some type of insurance

which is provided by HDFC Standard Life Insurance. There various product in the

insurance.

Auto Loan: - To provide auto loan to the customers how are interested in taking loan for

there vehicles whether it is old or new vehicle.

Personal Loan: - To provide personal loan to the customers how want loan for some

personal purpose. The rate of interest for premium customers would be different from

the regular customers.

Fixed Deposit :- For the customers how want to have there money save and earn interest

on it , for them there is fixed deposit scheme either they can have sweep-in FD or super

saver account which is explained earlier.

Housing loan: - Customer how wants Loan for the construction of there house or to buy

a new house, loan is to be provided to them; again the rate of interest are different for

different organization.

Having corporate tie up with various organization and employees having salary account

with HDFC Bank , Bank does not want its customers to switch to other banks so in order

maintain it customer base bank provides one stop shop, which fulfill there

55
requirements. And that is why bank emphasizes on corporate selling. There are

approximately 120 corporate in Lucknow where HDFC Bank has its tie up with

Companies meaning those many salary account with bank , out of this 20 corporate are

the premium corporate where the maximum selling can be done. In the table given below

will indicate the corporate that had being contacted and products being sold.

PENETRATION OF DIRECT BANKING CHANNEL IN INDIA:

NET BANKING: -

Almost all leading bank in India are hoping that just as ATMs saw a period of in action

before they were accepted by Indian masses, Internet banking too would be adopted once.

Customers are comfortable with the technology for instance in 1998 India had just 500

ATMs. To day it has close to 7500 ATMs.

While Internet banking in potential and powerful delivery channels. It has failed to make

significant impact due to variety or reasons. RBI in its report trend and progress of

banking in India 2001 - 2002, says Internet

Banking has failed to take of due to a combination of psychological, Technological and

socio-economic factors. Further the report states that additional hurdles relating to legal

and infrastructural problems have also affected growth.

There are three clear reasons why Internet taken of the India.

1- Slowness in adoption of the Internet by the 40 + AGE group.

56
2- Lacks of a strong trust environment prevent rapid more of corporates in to

adopting Internet.

3- Lack of a critical man of early adopters of security and trust technology among

bankers operating in India to drive the transition from bricks and mortar to e -

banking"

Although the Govt as made considerable progress in initiating a trust environment, with

some public certification authorities (PCA). Already licensed to operate the adoption of

trust technology is till a douting factor for many users. What needs to be level adopted in

a simple way of integrating trust into online banking se services.

57
ATM:-

In this competitive edge of time banking based on customer satisfaction. After

liberalization, the banking sectors empharises on retail banking during 1996 private

sector banks comes into action to compete with RBI and SBI. War for fast service give

birth to E-age banking.

Now in India E-age banking are adopted by all the banks.

Most excepted channel of direct banking is ATM 90% of cash with drawal done by

ATMs. Approximately 7500 ATMs are present in India today. The growth rate of 60 - 7

0% per years an averagely.

ICICI take capture a good number of customer by adopting the e - banking. It has

approximately 1200 ATMs today. A branch stand of ICICI with 8 ATMs.

HDFC, UTI, ABNAMRO are also competitive to ICICI - ATM has given life to private

sectors banks.

58
MOBILE BANKING: -

It is used by customer in Hyderabad, Ghaziabad, Banglooro, Kolkota, Bombay and so on

high tech city. It is cost effective channel but not used by branch in the entire city where

ever bank branch stand.

PHONE BANKING: -

Very cost effective channel of e-banking by which are can banking from any where, any

time. In India ICICI banks customers are using phone banking in large scale. They do

balance enquiry of their account.

59
 EVALUATION OF HDFC BANK AND ITS COMPETITORS IN

DELIVERY CHANNELS: -

When new private banks started installing ATMs across the length and breath of the

country. Customers started flocking in droves. A care in point is ICICI bank. During the

liberalization of the banking sectors ICICI bank, which did not have a huge national

network, realized that it could use it to enhance its value added offerings.

Say O.P.Srivastava, head of the retail channel infrastructure group at ICICI bank when

the banking sector was liberalized. We knew that to get a lead over the well-entrenched

PSU bank we had to take the help of delivery channels like ATM. There a was the only

way to counter the reach of national player. ICICI bank is the most aggressive player of

ATMs and has seen its base surge from 125 ATMs in January 200 to 1200 today such as

been the impact of ATMs that ICICI banks is customer base has grown from two million

to five million in the last two years, Srivastava attributes this increase to the increase in

ATMs outlets.

Player from the bank is the other big try which has in the banking industry which has

aggressively. Though HDFC bank has armada half the number of ATMs as compared to

ICICI bank, its ATMs are among the higher transaction in the world says Mudit Saxena,

Vice President for

60
retail marketing and head of net banking at HDFC bank, "The average per day

transactions at HDFC bank ATMs is 350 - 400, with same ATMs recording as many as

700 transaction per day. " After tech survey banks take UTI bank and ABX Amro have

also become extremely aggressive in installing ATMs.

In the case of UTI bank the ATMs have added a fillip to the banks customer base. Says

V.K. Ramani, president for IT at UTI bank, " from the first year of ATMs installation, we

have seen a surge in our customer base currently we have 647 ATMs servicing a has of

1.3 million customer. Over 90% of cash withdrawal of cash withdrawals are done

through ATMs. The number of ATMs transaction have also increased from are million in

September 2017 to 2.5 million in September 2017 with growth figures like this its no

wonder that every branch manager wants an ATMs installed in his area of operation.

ABN Amro bank too has a similar story to tell. Like UTI bank this bank also saw a 90%

increase in its cash withdrawals once it increased its ATM outlets. We are restricted with

respect to the timings, but an ATM gives a customer access to our bank 24 hours, 365

day, 7 day a week. ABN Amro bank has added close imitative.

Summaries the evaluations of the Indian banking industry perfectly. Bank followed to

broad approaches when adopting technologies. The first approach was evolution any

banking play who has large brick and mortar legacy, particularly the public sector banks,

kept the banking channels intact and automated the bottleneck points. This approach was

61
adopted by around 80% of the industry. However, some back adopted a revolutionary

approach and changed the banking scenario altogether. State bank of India is a good

example of the evolutionary approach, whereas HDFC bank and ICICI bank, are good

examples of the revolutionary approach. Some banks have gone a step ahead and share

their ATMs with other banks. For instance, ABNAMRO bank has a private ATM sharing

agreement with UTI bank.

Banks are also developing new strategies to leverage their ATM outlets. For instance,

rather than set upon branch in every suburb, ICICI bank has hit upon a ratio of 8 ATMs

to one branch office, thus effectively reaching out to a large customer base, at a

substantially lower cost. ABN Amro launched Royalties, India's first banking rewards

programme. The customer gets rewarded every time he uses any of the bank's electronic

access channels. If the customer bites the bait, it not only reduces the work load, but also

translates into huge cost savings.

PSU banks, which are witnessing their customer base dwindling, are now looking at

playing the same game. Market analysts believe that the

installed base of ATMs which was so far primarily driven by private sector banks, will be

driven by PSU banks in the near future.

62
SERVICE STRATEGY OF

THE HDFC BANK

63
 SERVICE STRATEGY OF THE HDFC BANK

HDFC bank aims at full customer satisfaction its customers range from ordinary

household to high profile business houses. It has wide range of type of account and

several other payment and deposition facilities to cater to the need of these customers for

speedy transaction to match the demand of e-commerce .It has several model facilities

like internet banking, telebanking etc. all the cheques presented to hdfc bank are

accounted within a day where drawee branch is in the same city for out station cheques it

takes maximum three days only. It has a team of dedicated motivated & trend

professionals who listen to and sort out the problems of customers. To avoid long queue

and waiting lines it has avoid network of reliable ATMs through out the country .It has

ATMs are joined to the main server who satellite link which helps it to maintain data of

every transaction ,after each transaction customer is served with the bank statement the

customer may also access transfer his account via internet in addition all these services

the bank also provides customers with debit and credit cards which allows them to make

transaction any where in the world which has visa compatibility in this way hdfc bank

epitomizes.

The merits of both orthodox and electronic banking. Thus HDFC Bank not only tries to

satisfy its customers but also make all attempts to delight them.

HDFC Bank has three pronged services strategy :

1. People management

2. physical Environment Management

3. process Management

64
1. People Management

HDFC Bank has well qualified team of professional team of professionals who

are experts in customer relationship management. They have achieved. Thus

level of expertise through training and motivation program taken up at regular

interval because of this high levels of competence HDFC Bank is often of called

as Indian Foreign Bank.

2. Physical Environment Management

Every Branch and ATM’s of HDFC Bank is located in the posh area of the

locality it helps the bank to create a good image among customer.

Further it helps customers access the bank facilities in leisure time that is while

marketing or on way to some important destination.

Further all ATMs and branches are fully air conditioned with relaxing

environment which puts visitors at ease and peaceful relax the tension and stores

of customers.

3. Process Management

HDFC Bank has simplified procedures for transaction and opening accounts it

has done away with Hassle of Going centers which are mandatory in many in

many banks similarly it has done a way with many lumbers one and non

essential procedures which helps customers reduce stress and under tension.

65
 ODPEC ANALYSIS
The opening and closing of A/c pass through several stage which is abbreviated as

ODPEC. The details of which as follows

ODPEC

O-Opening A/c are opened at local level immediately.

D/p-Developing A/c are developed in Mumbai where date entry is done and computed

within 12 to 15 days working days.

C-closing A/c are closed afters a notive from the holds at local level.

66
DATA - ANALYSIS

67
 DATA - ANALYSIS

BANKWISE DISTRIBUTION OF ACOUNT HOLDERS

Based on the response of 250 people following table has been made :

NAME OF THE BANK NO. OF ACCOUNTS %age

HDFC 70 28%
ICICI 110 44%
UTI 20 8%
IDBI 50 20%

UTI
IDBI 8% HDFC
20% 28%
HDFC
ICICI
IDBI
UTI

ICICI
44%

RANK IN ORDER OF BANKS WITH RESPECT TO NUMBER OF

68
CUSTOMERS HELD

1. ICICI

2. HDFC

3. IDBI

4. UTI

POPULARITY OF THE TYPES OF ACOUNTS

69
Based on the response of 250 people following table has been made

Name of Account Used by people % age

SAVINGS 80 32%
CURRENT 70 28%
FIXED 40 16%
SALARY 60 24%

SALARY SAVINGS
24% 32%

FIXED
16%
CURRENT
28%

Types of accounts held by people ranked in order

1. Savings

70
2. Current

3 Salaries

4. Fixed

HENCE IT IS EVIDENT FROM THE DATA THAT SAVINGS ACCOUNTS ARE

THE MOST POPULAR ONES AMONG ALL TYPES OF ACCOUNTS. WHERE AS

FIXED DEPOSITS ARE LESS POPULAR AND SALARY ACCOUNTS COMES

THIRD IN RANKING>

MOST SOUGHT AFTER ATTRIBUTES OF A BANK

People ranked different attributes as 1,2 ,3 etc.,

71
Based on these responses mean rank has been calculated.

ATTRIBUTES MEAN RANK

ATM 2.6
FACILITIES 3.88
LOCATION 2.72
SERVICE 4.24
ATMOSPHERE 5.276
EMPLOYEE BEHAVIOUR 3.388

MEAN RANK

6
5.276
5
4.24
3.88
4 3.388

2.6 2.72
3

0
ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE
BEHAVIOUR

NOW ARRANGING THE MEAN RANKS IN ASCENDING ORDER WE GET THE

OVERALL RANK WHICH IS AS FOLLOWS:

1. ATM

2. LOCATION

72
3. EMPLOYEE BEHAVIOUR

4. FACILITIES

5. SERVICE

6. ATMOSPHERE

SATISFACTION LEVEL OF CUSTOMERS

FROM THE RESPONSES OF CUSTOMERS OF DIFFERENT TYPES OF

ACCOUNTS CUSTOMER SATISFACTION LEVEL HAS BEEN GAUGED.

SAVINGS 70%
CURRENT 60%
SALARY 55%
FIXED 70%

73
 100%

80%
60%
Series1
180

160
40%
140

20%
120

100 North

West

80
Ea s t

0%
60

40

20

1 s t 3rd
SAVINGS CURRENT SALARY FIXED
Qtr Qtr

POSSIBILITY OF EXPANSION CONSIDERING PRESENT CUSTOMER BASE

From the responses of question whether people would like to open another account

following table has been made

YES 45%
NO 55%

74
 YES
45%

YES
NO

NO
55%

CUSTOMER IN GHAZIABAD USED ATMs FOR WHAT PURPOSE IN

PERCENTAGE

2% 5%
8%

85%

Cash withdrawal Balance Inquiry 75

Cash deposit change of pin no.
76
COMFORT LEVEL OF USERS: -

Users of e-banking are comfortable with ATM. But not used, not aware and also not

comfortable with other channel in Ghaziabad.

% OF PEOPLE FILLS COMFORT IN USING ATMs

AGE WISE

90%
80% 82%

70%
60% 57%
50%
40%
34%
30%
20%
10% 12%

0%
Age 18 -25 Age 26 - 40 Age 41 - 55 Age 55 - Above

% OF PEOPLE FILL COMFORT IN USING ATMs

77
 OCCUPATION WISE

27%
87%
44%

68%

Student Service Man Business Man Govt. Employee

78
FINDINGS

79
 FINDINGS

1. From the response of the Questionnaire gathered and findings the experience

during the survey from of people around, about the HDFC Bank, a lot of

conclusion and findings have been arrived at which are sufficient to unravel the

mysteries and connotations of customer behavior and their satisfaction.

2. Since HDFC Bank is number two in terms of number of account holders, and has

a positive image and enormous goodwill among masses elevates its position from

niches to runner in retail banking sector. It can very well take on the challenge

posed by ICICI Bank and try to improve its position by focusing on key strength

areas and strategically eliminating its weak points.

3. For expansion HDFC Banks should make forays into semi-urban and smaller

cities and also rural areas .In fact these days, rural income is increasing at a much

faster rate then. Urban income and also the market are considered virgin which

makes the launching and expansion prospects very good one. In this way the Bank

can

80
4. Gain foothold over these territories and reap rich harvest in terms of booming

account numbers.

5. However it was felt during the survey that major constraint which may laggard

the growth of HDFC Bank is the inadequate number of ATMs across the country.

The Bank need to improve upon this front because in terms of customers

consideration of attributes in choosing a bank ATMs and location of it are of

paramount importance.

6. Since saving account ate the most popular among masses, innovative ideas has to

be framed to inveigle new prospects into this venture. Possible targets could be

school and college going students, housewives and small businessmen who could

easily put their money from irregular source of income into this account.

7. Now-a-days Banking is no more the way of only providing interest for the

deposited money, but they are the ways of accessing and transacting with them

from anywhere and anytime at any part of the world. Hence, flawless and

effortless access of bank accounts from mobile phones and Internet has to be

made available.

81
8. It is also felt that in the era of e-banking where transaction is more on the IT

highway the success of bank will depend more on building information networks

rather then anything else. In the near future all existing banks including HDFC

Bank may have to rival Airtel and hutch network, which too might become Banks

very soon rather then competing among themselves. Hence vision for success in

near future is building up of information gathering and dissemination network

base

82
SUGGESTIONS AND

RECOMMENDATIONS

83
 SUGGESTIONS AND RECOMMENDATIONS
 Try to improve after sales services.

 To be some quality conscious.

 Try to install ATM’s at more convenient places for their customers.

 Try to provide Complete/Actual information to the customers.

 Customers must have all the information regarding charges & fees.

 HDFC must issue at par cheques to all their customers.

MAKE STRONG PUBLIC RELATIONS:

The bank has to provide better services to satisfy the needs and wants of customers

specially on the occasion of deepawali and dashahara like festivals so that the customer

has to satisfied with their services of banks the bank is to provide loans, specially housing

loans to the customer at very low interest rates so that the every middle class family is to

avail loans without any problem.

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CONTINUOUS MARKET FEED BACK:

To make the good relation with the customers, it is very important to take feed back time

to time to know about the problems and difficulties which are faced by the customers.

PROVID RECENT INFORMATION TO THE CUSTOMERs:

The bank is able to give as many as possible information’s to our customers so that the

customer is able to understand which type of information is to be used in a particular

sector.

85
TRY TO INPROVE ON LINE TRADING:

Due to on line trading the customers are given way of opening and depositing their

money on the basis of on line services and make trading. Of shares and mutual funds

TRY TO INSTALL ATM’s AT MORE CONVENIENT PLACES:

This financial year bank also try to increase the ATMs so customers can avail their banks

as well as ATM’s as many as possible places specially in commercial places like petrol

pumps, in market , in the hospital . So that the customer has convenience to Deposit and

withdraw their money without problems.

TRY TO OPEN EXTENTION COUNTER AT VARIOUS PLACES:

The bank has to open their extension counter in various places of their city so that the

deposit of bank is also increase and the turnover of bank during facilities which is

provided by bank cheaper rate.

86
LIMITATION

87
 LIMITATIONS OF THE STUDY

The study could have been more comprehensive and more representative of the

universe, had the sample-size been larger, but it was not possible mainly due to

lack of time and some other constraints.

The areas covered were restricted to Srinagar city only and as such the results of

questionnaires are valid for Srinagar city only.

All this report has been an individual attempt and it involves the human process of

interpretation and analysis, so there are chances of human error.

While talking to customers over the telephone, regarding their profiling process it

was never known whether I was speaking to the real intended individual.

While filling up the questionnaire, not all the respondents were eagerly giving the

responses. Chances are quite high that some of them might have given wrong or

misleading answers.

88
CONCLUSION

89
 CONCLUSION
The banking scenario has changed drastically. The changes which have taken place in the
last ten years are more than the changes took place in last fifty years because of the
institutionalisation, liberalisation, globalisation and automation in the banking industry.

Indian banking system has several outstanding achievements to its credit, the most
striking of which is its reach. Indian banks are now spread out into the remote corners of
our country. In terms of the number of branches, India’s banking system is one of the
largest in the world. According to the Banker 2004, India has 20 banks within the world ’s
top 1000 out of which only 6 are within the top 500 banks.

Today banking sector is marked by high customer expectations and technological

innovations. Technology is playing a crucial role in the day to day functioning of the
banks. These banks that have harnessed and leveraged technology best have a strategic
advantage. To face competition it is necessary for banks to absorb the technology and
upgrade their services.

In today’s context banks are following the strategy of “relationship banking” which is
need of the hour. The customer services are playing a very significant role in banking
business. In India major events leading to deregulation, liberalisation and privatisation
have unleashed forces of competition, making the banks run for their business, not only
to create the customer, but more difficult to run for their business, not only to create the
customer, but more difficult to retain the customer. Prompt and efficient customer
service, thus, has become very significant. Relationship banking is the new paradigm for
survival and success, embracing a ‘share of customer’ approach to growth by identifying,
protecting and expanding customer relationship.

Commercial banks are coming up with more and more vacancies, and the banking sector
now has more new jobs than any other sector. Right from the branch level to the highest
level, there is tremendous range of opportunities available in the sector. Jobs in this sector
can be both rewarding and enjoyable, as you get opportunities to learn about business,
interact with people and build up clientele. Both government and private players are
currently offering a plenty of jobs in this sector. So, this is great news for all those who
are thinking to go into the banking streams.

90
QUESTIONNAIRES

91
APPENDIX

QUESTIONNAIRES

I thanks for agreeing to spare 5 minutes of your's time for filling up this

questionnaire. I am doing this survey of 100 customers of deferent banks. All

details given by you will be kept strictly confidential.

1- DO YOU HAVE ANY A/C IN BANKS? IF YES GIVE THE NAME OF BANKING

ORGANIZATION.?

I------------------------------ II- -----------------------------

NO

2- HOW LONG RELATION YOU HAVE WITH YOUR BANK?

A- LESS THAN 1 YEAR. B-1-3 YEARS

C-3-5 YEARS. D-MORE THAN FIVE YEARS.

3-WHAT SATISFIED YOU MOST IN YOUR BANK?

A- RELIABILITY B- PERSONAL CARE C-FAST SERVICE

D-OTHERS (SPECIFY)…………………………………………………..

4-DO YOU LIKE 24 HOURS, 365 DAYS AND 7 DAYS WEEK BANKING IN THE

PRESENT DAYS.

A) YES B) NO

92
5-WHICH OF THE ELCTRONIC BANKLING CHANNELS YOU ARE USING.TICK

A-ATM B- PHONE BANKING C- MOBILE BANKING

D-INTERNET BANKING E - OTHERS (SPECIFIED) ----------------------

6-DO YOU FIND E-AGE BANKING CHANNELS ARE HELPFUL FOR YOU.

A) YES B) NO

7-CAN E-AGE BANKING CHANNELS REPLACE TRADITIONAL BANKING.

A) YES B) NO

8- FOR WHAT PURPUSE YOU USE E-AGE BANKING CHANNELS.

A- CASH WITHDRAW B- BALANCE INQUIRY

C- CASH DEPOSIT D- OTHER THAN IT (Specify)

--------------------------------------------------------------------------------------.

9- DO YOU FIND YOURSELF COMFORTABLE WITH E-AGE BANKING

CHANNELS.

A) YES B) NO

IF NO ,WHY?…………………………………………………………………………..

93
10- DO YOU THINK E-AGE BANKING CHANNELS ARE.

A- COST EFFECTIVE B- INCREASES PRODUCTIVITY

C- TIME SAVING D- NONE OF THESE

11- WHICH BANK IS BETTER IN MANAGING E-AGE BANKING CHANNELS?

(RANK IN ORDER.)

A- ICICI B- HDFC C- IDBI

D- UTI E- SBI F- INDUS IND

12- WHAT ATTRACTS YOU MOST? (RANK)

LOCATION
EMPLOYEE BEHAVIOUR
ATM
FACILITIES
SERVICE
ATMOSPHARE

13- ARE YOU SATISFIED WITH THE BANK

(YES/NO)

14- IF YES DO YOU WANT TO OPEN ANOTHER ACCOUNT

(YES/NO)
15- IF NO REASON FOR DISSATISFACTION

94
SUGGESTIONS AND FEED BACK (About e-age banking and challenges)

-…………………………………………….…………………………………………….

-…………………………………………….…………………………………………….

PERSONAL DETAILS-

NAME ………………………………………………………………………..

AGE - 18-25 YR 25- 40YR.

40-55 YR. MORE THAN 55YR.

SEX - M F

OCCUPATION ……………………………………………………………………

95
BIBLIOGRAPHY

96
 BIBLIOGRAPHY
BOOKS:-

1. MARKETING CHANNELS (fifth edition)

-By Stern-EL Anasary

2. MANAGEMENT INFORMATION SYSTEM (6th edition)

-by Lordon& Lordon

WEBSITE -

1. www.yahoo.com

2. www.hdfcbank.com

6. www.economictimes.com

NEWS PAPER-

1. THE FINANCIAL EXPRESS

1. BUSINESS STANDERED

MAGAZINE-

1-CAPITAL MARKET

2-EXPRESS COMPUTER

3-E-COMMERCE

4-BUSINESS INDIA

HDFC BANK CATALOUGE

97