A Dissertation Report On

“A STUDY ON CUSTOMER PREFERNCES TOWARDS CREDIT CARDS

IN HDFC BANK”
Submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Of

BANGALORE UNIVERSITY

Submitted by

TEJASWINI K
(Roll. No 18OTCMD008)
Under the Guidance of

Dr.B. Venugopal
Asst. Professor
IIPMB, Bangalore
Carried out at

HDFC Bank Ltd

Konankunte Branch

Indian Institute of Plantation Management Bangalore

Jnana Bharathi Campus, Mallathalli Post, Bangalore- 560056

Affiliated at Bangalore University (2018-2020)

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 GUIDE CERTIFICATE

This is to certify that Dissertation titled “STUDY ON CUSTOMER PREFERENCES

TOWARDS CREDIT CARDS IN HDFC BANK” carried out at HDFC Bank ltd is an original
wok carried out by TEJASWINI K, bearing registration number 18OTCMD008, student of
MBA, INDIAN INSTITUTE OF PLANTATION MANAGEMENT, BANGALORE and is
been submitted in partial completion for the award of Master’s Degree in Business Administration
by Bangalore University.

The report has not been submitted to any other University or Institute for the award of any other
Degree or Diploma or Certificate and is an original work of study by her under my guidance

Signature of Guide with date Signatureof Director/Chairperson

INDIAN INSTITUTE OF PLANTATION MANAGEMENT

Jnana Bharathi Campus
P.O. Mallathalli
BENGALURU – 560056 INDIA Email – info@iipmb.edu.inWebsite – www.iipmb.edu.in

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 ACKNOWLEDGEMENT

No project report ever mirrors the endeavors of a solitary person. The report owes its reality to the
consistent help and direction of various individuals. I am thankful to every one of them.

I owe a ceaseless obligation of appreciation to Dr. B VENUGOPAL for their master direction and
backing.

I would like to express thanks all the respondents for giving their valuable time and providing
useful information.

I am also thankful to all those who have either directly or indirectly contributed towards the
completion of the project, for their support and encouragement.

Tejaswini.K

3
 DECLARATION

This is to confirm that Dissertation titled "Concentrate ON CUSTOMER PREFERENCES

TOWARDS CREDIT CARDS IN HDFC BANK" did at HDFC Bank ltd is a unique wok did by
TEJASWINI K, bearing enrolment number 18OTCMD008, understudy of MBA, INDIAN
INSTITUTE OF PLANTATION MANAGEMENT, BANGALORE and is been submitted in
halfway satisfaction for the honour of Master's Degree in Business Administration by Bangalore
University.

PLACE: Bangalore TEJASWINI.K

DATE:

4
 TABLE OF CONTENTS
Chapters Contents Page no

1 INTRODUCTION 7

2 COMPANY PROFILE 14

3 REVIEW OF LITERARURE 24

4 RESEARCH METHODOLOGY 26

5 DATA ANALYSIA AND INTRETATION 29

6 FINDING, SUGGESTIONS, CONCLUSIONS 35-36

7 REFERENCES 38-39

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 ABSTRACT

A charge card is a little plastic card gave to clients as an arrangement of installment. It enables its
holder to purchase merchandise and ventures dependent on the holders guarantee to pay for these
products and enterprises. The guarantor of the card makes a spinning record and awards a credit
extension to the customer from which the client can get cash for installment to a dealer or as a loan
to the client. This is descriptive research and we have collected 150 respondent data through the
structured questionnaire. in this research paper we are trying to identify the changing attitude of
the South Nagpur consumers towards plastic money.

In the present occupied world, no one has the opportunity to pull back cash from the ledger for
shopping. Everyone is keen on conveying the plastic cash in their wallet for shopping as it gives
comfort, security, effectiveness and even style. In this vicious challenge, banks need to strive to
pick up piece of the overall industry and to meet the desires for clients with the goal that they can
charm their clients. This investigation is done to distinguish client inclinations and desires from
Visas. The fundamental target is to recognize the components that impact the decision of charge
cards, consumer loyalty, and customer conduct with respect to the credit in Bangalore urban areas.
Results show that the decision of charge card relies on salary, sexual orientation and calling of the
respondent. Consumer loyalty relies on pay, recurrence of utilization in a month and measure of
use every month.

Keywords: Attitude, Awareness, Credit card, Cardholders and perception.

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 INTRODUCTION TO INDIAN BANKING SYSTEM

HISTORY OF BANKING IN INDIA

Without a sound and successful financial framework in India it can't have a solid economy.
The financial arrangement of India ought in addition to the fact that hassle be free it ought to have
the option to address new difficulties presented by the innovation and some other outside and
inside elements. For as far back as three decades India's financial framework has a few exceptional
accomplishments amazingly. Actually, Indian financial framework has come to even to the remote
corners of the nation. This is one of the fundamental reasons of India's development procedure.
The government’s regular policy for Indian bank since 1969 has paid rich payments with the
nationalisation of 14 major private banks of India. Not long ago, an account holder had to wait for
hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a
choice gone are days when the most efficient bank transferred money from one branch to other in
two days. The first bank in Quite a while, through moderate, was set up in 1786. From 1786 till
today, the adventure of Indian financial framework can be isolated into three unmistakable stages.
They are as referenced beneath.

 Early stage from 1786 of Indian banks.

 Nationalization of Indian banks and up to 1991 before Indian financial segment
changes.
 New period of Indian preparing framework with the appearance of Indian monetary
and banking segment changes after 1991.

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 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

State co-op Central co-op Commercial Banks

Banks Commercial Banks and
Banks Primary Cr.
Societies

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI etc.

State Bank of India Other Nationalized Regional Rural

and its Subsidiaries Banks Banks

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CUSTOMER PREFERENCE

Customer inclination is characterized as the abstract tastes of individual shoppers, estimated by

their fulfilment with those things after they've acquired them. This fulfilment is regularly alluded
to as utility. Purchaser worth can be controlled by how shopper utility analyses between various
things.

Customer inclination can be estimated by their fulfilment with a particular thing, contrasted with
the open-door cost of that thing since at whatever point you get one thing, you relinquish the
chance to purchase a contending thing. The inclinations of individual shoppers are not contained
inside the field of financial aspects. Those inclinations are directed by close to home taste, culture,
training and numerous different factors, for example, social weight from companions and
neighbours. For instance, somebody who wants to claim a particular brand of a cell phone since
her companions all have a similar brand.

MAJOR FACTORS INFLUENCING FOR GETTING CREDIT CARD:

1. Your Income/Salary:
Common credit limit is 2X or 3X of your month to month salary. Assume your pay slip
shows Rs.50,000 every month, you can anticipate Rs. 1 Lakh – 1.5 Lakh credit limit. For
independently employed, assume you've recorded a pay of Rs.5 lakhs for last money related year,
you can anticipate 1 Lakh – 2 Lakhs as acknowledge limit as Business cards typically shows signs
of improvement limit for evident reasons. items profited structure the bank. Assume you're
utilizing FD/RD/protection plans from a similar bank, you're probably going to have higher
relationship esteem with the bank, thus your credit limit.
2. No annual fee
3. Rewards
4. Low interest rate
5. Free borrowing
6. Earn free money
7. Build a good credit report
8. Free insurance
9. Protect your money
10. It’s the only way to pay

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 11. Emergency needs
12. Personal expense

INTRDOUCTION OF CREDIT CARD

A Visa is a card or system which empowers card holders to buy merchandise, travel and feast in
an inn without making quick installment. The charge card holders can utilize the cards to get credit
from banks as long as 55 days. The charge card eases the customer from the strain of conveying
money and guarantees wellbeing. It is the accommodation of broadened credit without custom.
Along these lines, Visa is an identification to wellbeing, accommodation, glory and credit.

Mastercard’s charge intrigue and are principally utilized for momentary financing. Intrigue as a
rule starts one month after a buy is made and getting limits are pre-set by the person's FICO
assessment. It enables its holder to purchase products and ventures dependent on the holder's
guarantee to pay for these merchandise and enterprises. The guarantor of the card makes a rotating
record and awards a credit extension to the customer (or the client) from which the client can
acquire cash for installment to a trader or as a loan to the client.

Holders of a valid credit card have the approval to purchase goods andservices up to a
predetermined amount, called a credit limit. The vendor receives essential credit card information
from the cardholder, the bank issuing the card actually reimburses the vendor, and eventually the
cardholder repays the bank through regular monthly payments. If the entire balance is not paid in
full, the credit card issuer can legally charge interest fees on the unpaid portion

The Mastercard is one of the most disruptive items among all the money related apparatuses
accessible. Conclusions among money related specialists and thought pioneers are similarly as
blended. A Mastercard is only a device. Regardless of whether its belongings are useful or hurtful
relies upon the aptitudes and information on the client, an individual with the ability to pick how
to utilize the apparatus. Physically, a cutting edge charge card is a rectangular bit of plastic,
graphite, or a metallic combination, that recognizes a budgetary record. All contain an attractive
strip on the bank, and some contain a RFID chip. A record number and the proprietor's name or
business name might be engraved on the front.

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In the background, the charge card speaks to a kind of money related record. By utilizing Visas,
clients can offer a bank's cash rather than their very own to pay for an item or administration
today, and after some time, they reimburse the bank. To help utilizing another person's cash,
clients will frequently need to pay enthusiasm, true to form with different sorts of credits. This is
the place issues can emerge. Utilizing others' cash is frequently ideal than utilizing your own in
light of the fact that it lets you keep your very own cash accessible for different purposes, however
in the event that you something with another person's cash while not having the option to
reimburse that sort of credit, the outcomes can annihilate your very own money related future.

TYPES OF CARDS

1. Millennia Cards
2. Credit Cards
3. Debit Cards
4. Prepaid Cards
5. Forex Cards
6. Commercial Credit Cards

CHARACTERISTICS OF CREDIT CARD

1. Credit limit

All banks have various cut off points set for clients relying on the sorts of cards in their
ownership. Indeed, even inside a specific sort of card, cut off points may change contingent on the
credit value of the person. This relies upon the gross salary of the individual and the period for

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 which the individual is utilizing the card. Be that as it may, a few banks have a card, which has no
set credit limit.

2. Interest charges

This is the greatest wellspring of income for the giving banks. The loan costs by and large
range from 1.99% - 3% every month. This is proportional to around 24%-35% every year. The
intrigue charges are additionally material on accumulated intrigue. Along these lines, a client can end
settling up intensely for the credit taken.

3. Annual charge
This is a fixed sum, which must be paid each year self-governing of the degree of
utilization. In the course of recent years, with increment in rivalry a general decrease in these
charges can be watched.
4. Grace period
This is the additional period, which is offered to the client for reimbursing the credit. In
the Indian situation, the primary admonition Is given toward the finish of a quarter of a year, and a
dark imprint is set against the client if there should arise an occurrence of non-instalment for over
seven months. Further elegance period is settled on a case to case premise.
5. Value Added Benefits
These incorporate carrier ticket booking and protection benefits on lost baggage and
unintentional passing’s for e.g., offers limits of 3.5% on household airfares and 6.5% on worldwide
ones if tickets are exciting to their cards. The most recent in line of significant worth included
highlights are the prizes agendas. Here a cardholder procures a specific number of focuses by going
through a specific entirety of cash from their Mastercard’s.

WHAT CONSUMERS LOVE AND HATE ABOUT DEBIT CARDS AND

CREDIT CARDS:

Most customers convey more than one bit of plastic in their wallet. Its regular to have a plastic and
at least two Visas. In any case, the one that gets the biggest portion of a buyer's buys is alluded to
as the "highest point of wallet" card, and you need to ensure your card is their first decision.

Impacting somebody's choice to pick a particular card for some random exchange can be trying
for retail banks and credit associations. What's more, in the advanced age, it isn't getting any

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easies either. Portable wallets like Apple Pay, PayPal and Samsung Pay are confusing the
instalments scene both for shoppers and monetary establishments the same.

CONSUMERS LOVE CASH REWARDS-

Customers like rewards increasingly more every year. Prizes rank as the most alluring advantage a
card can offer, far outpacing different highlights like financing cost, backer's image, style/plan of
card, and adaptable instalment choices. On the off chance that the prizes program offers the
correct prizes, its feasible that you can charge customers a higher loan cost.

Money discounts, other exceptionally pined for highlights are firmly identified with getting money
back-getting a good deal on both name brand and nearby vendors. Buyers like coupons and unique
offers dependent on their practices, on the off chance that you realize a customer utilizes their
platinum card at a claim to fame nourishment advertise or is a tech nerd who frequents Best Buy,
use information examination to focus on these buyers with limits and extraordinary offers.

PRICE POINT INFLUENCES THE PAYMENT USED:

• Credit cards are the favoured instalment strategy for first-class things

• Consumers are generally inclined toward money while paying for transportation.

• 38% of shoppers are apprehensive they'll overspend when utilizing visas.

PAYMENT PREFERENCES DIFFER BY GENDER:

• Men will in general incline toward Mastercard’s while ladies will in general favour
checkcards.

• Men will in general utilize their charge cards for remunerations.

• Women are bound to hold Mastercard use for crises.

• Women are increasingly keen on utilizing a wearable gadget as an instalment strategy.

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 HISTORY OF HDFC BANK

HDFC BANK LTD was consolidated in August 1994 for the sake of 'HDFC BANK LTD', with its
enrolled office in Mumbai, India. HDFC Bank started activities as a planned business Bank in
sixteenth January 1995.

If at any point there was a man with a crucial was Hasmukhbhai Parekh, Founder and Chairman
Emeritus, of HDFC Group. HDFC BANK LTD was among the first to set up a bank in the private
division. The bank has developed reliably and is presently among the main players in the business.

HDFC has made tremendous dominance in retail contract advances to different market partitions
and moreover has a gigantic corporate client base for its hotel related credit workplaces. With its
bent in the cash related markets, a strong market reputation, enormous speculator base and unique
purchaser establishment, HDFC was undeniably arranged to propel a bank in the Indian condition
in an accomplishment trade in the Indian monetary industry, Times Bank was united with HDFC
Bank Ltd., incredible February 26, 2000.

The Housing Development Finance Corporation Limited (HDFC) was among the first to get an 'on
a fundamental level' underwriting from the Reserve Bank of India (RBI) to set up bank in the
private division, as a significant part of the RBI's progression of the Indian Banking Industry in
1994. The bank was participated in August 1994 for 'HDFC Bank Limited', with its register emier
lodging store association and acknowledges an impeccable notoriety in India similarly as in
overall markets. HDFC has made tremendous expertise in retail contract advances to different
market parts and besides has a huge corporate client base for its hotel related credit workplaces.
With its involvement with the monetary markets, a solid market notoriety, enormous investor base

14
and novel purchaser establishment, HDFC was undeniably situated to advance a bank in the Indian
condition.

MISSION STATEMENT OF HDFC BANK

1. World class Indian Bank

2. Benchmarketing against global gauges
3. To assemble sound client establishments crosswise over unmistakable organizations
4. Best rehearses as far as item contributions, innovation, administration levels, chance
administration and review and consistence

VISION STATEMENT

The HDFC Bank is resolved to keep up the most significant level of moral benchmarks, proficient
uprightness and administrative consistence. HDFC Bank's business theory depends on four
guiding principle, for example, -

1. Operational greatness.

2. Customer Focus.

3. Product administration.

4. People.

The objective of the HDFC Bank is to give its target advertise customers a full extent of money
related things and banking organizations, giving the customer a one-advance window for all
his/her necessities. The HDFC Bank notwithstanding and the endeavour cautioning organizations
programs have been organized recollecting needs of customers who searches for specific cash
related plans, information and appeal on various theory streets.

BUSINESS STRATEGY

Increasing piece of the overall industry in India's growing banking

Delivering great client assistance

Maintaining current elevated requirements for resource quality through restrained credit chance
administration

Develop imaginative items and administrations that draw in focused clients and address
wasteful aspects in the Indian area
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PROMOTER
HDFC is India's head lodging reserve association and acknowledges an impeccable notoriety in
India similarly as in worldwide markets. Since its introduction in 1977, the Corporation has kept
up a dependable and strong advancement in its exercises to remain the market boss in contracts. Its
phenomenal development portfolio covers well over a million dwelling units. HDFC has made
basic dominance in retail contract advances to different market segments and besides has a
colossal corporate client base for its hotel related credit workplaces. With its inclusion with the
cash related markets, a strong market reputation, tremendous financial specialist base and
exceptional purchaser foundation, HDFC was obviously arranged to propel a bank in the Indian
condition.
BUSINESS FOCUS
HDFC Bank's vital to be a World-Class Indian Bank. The objective is to fabricate sound customer
foundations across over specific associations so as to be the favoured provider of banking
organizations for target retail and markdown customer areas, and to achieve strong advancement
in profitability, dependable with the bank's risk hunger. The bank is made plans to keep up the
most raised degree of good rules, capable decency, corporate organization and regulatory
consistence. HDFC Bank's business thinking relies upon four key convictions - Operational
Excellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
The supported capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The settled up capital is
Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's worth and about
17.6% of the value is held by the ADS Depository (in regard of the bank's American Depository
Shares (ADS) Issue). All things considered, 28% of the value is held by Foreign Institutional
Investors (FIIs) and the bank has around 570,000 theorists. The offers are recorded on the Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are
recorded on the New York Stock Exchange (NYSE) under the image 'HDB'.
DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at present has a favored plan of more than
1229 branches spread more than 444 urban zones transversely over India. All branches are related
on an online reliable explanation. Clients more than 120 areas are in addition upgraded through
Telephone Banking. The Bank's improvement plans consider the need to have a closeness in all
noteworthy current and business focuses where its corporate clients are orchestrated
correspondingly as the need to build up a solid retail client base for the two stores and advance
things. Being a clearing/settlement bank to different driving stock trades, the Bank has branches in

16
the focuses where the NSE/BSE has a solid and dynamic part base. The Bank in like way has a
plan of about more than 2526 sorted out ATMs over these urban systems. Similarly, HDFC Bank's
ATM system can be gotten to by all nuclear family and by and large Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

HUMAN RESOURCES
The Bank's staffing needs kept on expanding during the yearparticularly in the retail banking
organizations in accordance with the business development. All out numberof workers expanded
from14878 as ofMarch31, 2006 to 21477 as of March 31, 2008.The Bank proceeds tofocus on
preparing its representatives on a proceeding with premise, both at work and through preparing
programs led by inside and externalfaculty.

The Bank has reliably accepted that more extensive worker responsibility for shares positively
affects its exhibition and representative inspiration. The Bank's worker investment opportunity
plot so far spreads around 9000 representatives.

MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Going before this, Mr. Capoor
was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri,
has been a specialist merchant for over 25 years and before joining HDFC Bank in 1994 was
going Citibank's undertakings in Malaysia. The Bank's Board of Directors is made out of popular
individuals with a plenitude of contribution with open methodology, association, industry and
business banking. Senior authorities addressing HDFC are in like manner on the Board. Senior
money related specialists with impressive association with India and abroad head various
associations and limits and report to the Managing Director. Given the master aptitude of the
supervisory gathering and the general focus on selecting and holding the best capacity in the
business, the bank acknowledges that its kinfolk is a basic cantered quality.
QUALITY POLICY
Security: The bank provides long term

HDFC BANK BUSINESS PROCEDURE UNDERSCORES THE

ACCOMPANYING:

Increment piece of the overall industry in India's extending banking and monetary administrations
industry by following taught development technique concentrating on quality and not on amount

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 and conveying top notch client assistance. Influence our innovation stage and open saleable
frameworks to convey more items to more clients andtocontroloperating costs. Keep up current
highstandardsforasset quality throughdisciplinedcreditrisk the executives. Developedinnovative
productsand administrations thatattractthetargetedcustomersandtalkinproductivities in the Indian
money related segment. Keep on creating items and administrations that lessen bank's expense of
assets. Concentrate on high profit development with low instability.

2.2 PRODUCT SCOPE:

HDFC Bank offers a lot of items and administrations to address each issue of the individuals. The
organization thinks about both, people just as corporate and little and medium undertakings. For
people, the organization has a range records, speculation, and benefits conspire, various kinds of
credits and cards that help the clients. The clients can pick the appropriate one from a scope of
items which will suit their life-stage and needs. For associations the organization has a large group
of altered arrangements that range from supported administrations, Non-subsidized
administrations, Value expansion administrations, Mutual store and so on. These moderate plans
separated from giving long haul an incentive to the workers help in upgrading generosity of the
organisation. The outcomes of the organization are arranged into different areas which are as per
the following:

 Accounts and stores.

 Loans.
 Investments and Insurance.
 Forex and instalment administrations.
 Cards.
 Customer focus.

WHO CAN BE A CREDIT CARD HOLDER?

The general foundation applied is an individual spending limit and not just his pay and his riches.
The other rule is the value of the buyer and his normal month to month balance. A large portion of
the banks have got out the standards for giving the charge cards.

I. An individual who procures a compensation of Rs. 60,000/_ per annum is qualified for a card.

II. A reference from a broker and the businesses of the candidate is demanded.

III. He ought to have an investment funds current record in the bank.

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 IV. His benefits and liabilities on a specific date are accounted for to bank.

V. An announcement of annual or month to month pay.

VI. He is viewed as credit admirable upon as far as possible relying on his salary, resources and
consumption. The qualified client is approached to fill in application structure giving the subtleties of
record number, name, address, salary, riches status and a proof of his pay/riches and so forth.

PRODUCTS AND SERVICES PROVIDED BY HDFC BANK

1. Savings Accounts
 Ordinary Savings Account Savings in addition to Account
 Reserve funds as Account No Frills Account
 Retail Trust Account Salary Accounts
 Finance Classic Regular Premium
 Protection Salary Account Kid's Advantage Account
 Annuity Saving Bank Account Family Savings Group
2. Current Accounts
 In addition, current Account Trade Current Account
 Premium Current Account Regular Current Account
 Repayment Current Account RFC – Domestic Account
3. Fixed Deposits
 Ordinary Fixed Deposit Super Saver Account Sweep-in Account
4. Loans
 Individual Loans Home Loans
 Bike Loans New Car Loans
 Utilized Car Loans
 Overdraft against Car Expenses Loans
 Gold Loan
5. Training Loa
 Platinum Plus Credit Card
6. Debit Cards
 Easy shop International Debit Card Easy

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  Shop Gold Debit Card
 Easy Shop International Business Debit Card
7. Access Your Bank
 Net Banking
 Phone Banking
 Mobile Banking ATM
QUALITY POLICY

Security: The bank gives long haul money related security to their strategy. The bank does this by
offering disaster protection and benefits items.

Trust:The bank acknowledges the trust put by their preparation holders in the bank. Thus, it will
deal with their speculations cautiously and satisfy this trust.

Development: perceiving the many needs of our clients, the bank offers a scope of inventive
items to address these issues.

Honesty

Client driven

Individuals care "one for all and just for one"

Cooperation Joy and straightforwardness

CREDIT CARDS

In the present aggressive and quick time card administrations giving by the banks are actually
quite imperative to each individual and each business need or to take feast in to the inn or to buy
adornments from the gem retailers cards are assuming great job in the financial segments.

Bank scopes of cards help to meet budgetary targets. Along these lines, regardless of whether
people are hoping to add to his purchasing power, directing cashless shopping, or planning his
consumption, he will discover a card that suits him.

DIFFICULT TYPES OF CREDIT

Mastercard’s

An individual needs thing like, an outing to ball, a precious stone ring for spouse's fantasies. A
few dreams can hardly wait. On the off chance that there's something individual has constantly

20
needed. In the event that an individual needed satisfy his needs he can get profits by the HDFC
bank's Mastercard’s offices

Troublesome

TYPES OF CREDIT

Great Card

Silver Visa

Titanium Credit Card

Lady's Gold Card

Platinum in addition to Credit Card

Visa Signature Credit Card

World Master Card

Business Cards

Corporate Credit Card

VARIOUS KEY FACTOR TO CHOOSE THE BEST CREDIT CARD

• Credit Limit

• Credit Time Offered

• Rate of Interest

• Eligibility Criteria

• Acceptance of the Card

• Joining expense

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HOW CREDIT CARD WORKS?

• Credit cards are agreed with Visa guarantor, for example, a bank or credit association, after
a record has been affirmed by the credit supplier, after which cardholders can utilize it to make
buys at shippers tolerating that card.

• When a buy is made, the charge card client consents to pay the card guarantor. The
cardholder shows agree to pay by marking a receipt with a record of the card subtleties and
demonstrating the sum to be paid or by entering an individual distinguishing proof number (PIN)

• Many shippers currently acknowledge verbal approvals by means of phone and electronic
approval utilizing the web, known as a card not present exchange (CNP). Forcard not present
exchanges where the card isn't appeared (e.g., internet business, mail request, and phone deals),
vendors moreover check that the client is in physical ownership of the card and is the approved
client by requesting extra data, for example, the security code imprinted on the rear of the card,
date of expiry, and charging address.

• Each month, the Mastercard client is sent an announcement showing the buys attempted
with the card, any extraordinary charges, and the aggregate sum claimed.

• After getting the announcement, the cardholder may contest any charges that the individual
believes are mistaken. Something else, the cardholder must compensation a characterized least
extent of the bill by a due date, or may decide to pay a higher sum up to the whole sum claimed,

22
• The Visa backer charges enthusiasm on the sum claimed if the equalization isn't forked
over the required funds (ordinarily at a lot higher rate than most different types of charge).

• In expansion, if the charge card client neglects to make at any rate the base instalment by
the due date, the backer may force a "late expense" or potentially different punishments on the
client.

• To help relieve this, some monetary organizations can orchestrate programmed instalments
to be deducted from the client's financial balances, along these lines maintaining a strategic
distance from such punishments by and large as long as the cardholder has adequate assets.

23
 LITERATURE REVIEW

1. Credit cards also help as an open- ended, easily available credit source (Lee and Kwon
2002). When consumers practice credit cards as a mode of financing, credit cards compete
with bank loans and other forms of financing (Brito and Hartley 1995).
2. The behaviour and the boldness of the consumer towards the use and acceptability of credit
cards differ for psychographic reasons (Yang, James and Lester 2005). Available online
on www.abhinavjournal.com
3. Ausubel (1991) suggests that consumers may not even consider the interest rate when
making purchases.(Canner and Cyrmak, 1985; Godwin, 1998; Norton,1993; and Park,
1993) It has been suggested that positive changes in credit attitudes have led to an
increasing willingness by consumers to use credit to finance current consumption, a large
part of which is often in the form of credit card debt.
4. Rathamani.P(2002) in his study on “consumer satisfaction towards private sector banks”
determines the changing Dynamics of banking industry driven by the growth of the
increase in personal consumption of customer on account rising income and increase
family incomes.
5. Harry nowka, Southwestern Oklahoma State University, Nancy Buddy,
Southwestern Oklahoma State University in their study titled (customer responses: A
COMPARATIVE STUDY) wants to determine various variables which influence
customers of a bar and grill. This comparative analysis includes customer responses with
comparisons made to the major competitor’s customer responses, student customer
responses, and responses of a panel of non-customers assembled to assess potential
customer responses.
6. Milindh.S (1999) adoption ofInternetbankinginAustralianconsumer: an empirical
investigation international journal of bank marketing.
7. Bahia, K and J Nantel (2000)
The paper proposed an elective scale for estimating administration quality in retail
banking. The examination built up a scale called as banking administration quality scale
which contained components like adequacy and affirmation, get to, cost, effects,
administration portfolio and dependability.

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8. Jamel, A, Naser, K (2002)

The study examined key drivers of customer satisfaction 167 customers and it was found
that core and relational performances had impact on customer satisfaction and there was
negative relationship between customer expertise and customer satisfaction.

9. Sureshchandar et al (2002)
The examination inspected connection between administration quality and consumer
loyalty in Indian financial segment. There were seen as a free however firmly related. The
two builds fluctuate fundamentally in center administrations, human component,
systematization of administration conveyance, physical assets, and social duty.

25
OBJECTIVES OF THE STUDY

 To study the factors influences on customer choices of credit card

 To analyse Customer preferences regarding the credit card in Konankunte branch.
 To estimate the credit card usage.
 To give appropriate findings and suggestions.
RESEARCH METHODOLOGY

It depicts the information assortment technique, the examining plan, the apparatuses of
examination, arranging and testing of poll and the confinements of the investigation. The
examination requires the information to be gathered from two unique sources for example the
essential source and the voluntary source. The essential information is collected with the
assistance of organized examiners which is being changed and dependable and the optional
information through the different diaries, papers and sites.

Research Design

The present study enquired and presented the outcomes concerning the set targets indicated before
which identifies with portrayal of the situation subsequently it obviously expresses that it was a
DESCRIPTIVE STUDY, which included actuality discovering enquiries of various types.

TYPES OF STUDY:

Descriptive method is used for conducting this study

SAMPLE TECHNIQUE/TOOLS:

Convenience sampling is used for conducting this study

STUDY AREA:

Data is collected from the customers of HDFC bank in Bangalore

SAMPLE UNIT:

Customers of the HDFC Bank are the respondents

SAMPLE SIZE:

440 customers were selected.

26
Data Source:

a) Primary Data: Primary data was collected

b) Secondary data: Secondary data collected by referring to various books, newspapers,
magazines, journals and internet.

TOOLS FOR ANALYSIS:

Percentages, charts and comparison statement

ABOUT THE INTERNSHIP TRAINING

Temporary job preparing is a class held at association to give an upgraded comprehension of

outside workplace; it portrays the experience and advantages during entry level position period.
This contains a diagram of temporary position preparing exercises, errands and activities that had
been worked during entry level position preparing period.

From September for following 3days they prepared us, in that day they gave us a short
presentation about organization, what methodologies they are utilizing, and about business
arranging, after that they doled out us the worksabout what ought to be finished.

On fourth day – they contemplated how to associate with clients and how to approach about
Mastercard’s. Day by day we were given a few assignments to finish inside that day. Our
objective was about to see what are the preference of customers on credit cards.

At that point we chip away at reviews of the bank and we find out about whatcustomer likes while
obtaining Mastercard’s and what are the elements that impact to purchase then the Visa
utilizations. At that point we assessed on 20 calls for each day who lean towards on what premise
so for month it becomes 440 clients.

Planning skill

At work we should design our everyday undertakings. Can utilize all around spread out plans as a
device to impact other, moving certainty, and making it prior to impart about the
issues/inconvenience.

Improving team planning skill

Team planning skills for more productivity, and it involves in every piece of task and achieving
good team playing skill essential for effective completion of tasks and increase in productivity.

27
A team work it needs more co-ordination of workers to solve problem arise in a different aspect,
misunderstanding in the working methodology and consult every work max less we had to
improved our team work status by working together working with different professional and
works.

LIMITATIONS

In spite of the fact that each exertion was made to make the report legitimate in each sense, yet
there are not many components which may have their impact on the last report.

1. There was time lack. Time gave to us was short which make it hard for us to direct study
at more extensive territory.
2. Sometimes respondents didn't react well to every one of the inquiries in the poll.
3. Low contribution from the bank officials make to battle increasingly, because of which we
had to confine our example size to 80.
4. Some business may have happened in examination. In view of absence of master
information.
5. Biasness in perspectives on respondents can't be precluded.
6. Resistance to change once in a while influences perspective on respondents

28
 TABLE 4.1: RESPONSE OF THE GENDER

GENDER NO OF RESPONDENTS PERCENTAGE

Male 300 68%

Female 140 32%

Total 440 100%

Source: Primary data

Chart.1: Gender wise

male female

32
Percentage
68

140
No of respondents
300

INTERPRETATION:

This chart shows that the respondents of male is higher compared to female. Male respondents’
percentage is 68% and female percentage is 32%.

29
 TABLE 4.2: RESPONDENTS REGARDING AGE GROUP

AGE NO OF RESPONDENTS PERCENTAGE

21-35 100 23

36- 50 200 45

51-65 140 32

Total 440 100

SOURCE: Primary data

Chart 2: Age group wise

21-35 36- 50 51-65

23%
32%

45%

INTERPRETATION:

This chart shows that the respondents of 36-50 age groups are higher compared to other groups.
45% of the respondents age groups are 36-50, 32% of the respondents age group are 51-65 and
23% of the respondents age group are 21-35.

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 TABLE 4.3: RESPONDENTS WHICH OF THESE SERVICESCUSTOMERS ARE
INTERESTED.

PRODUCTS NO OF RESPONDENTS PERCENTAGE

Savings a/c 150 34
Fixed deposits 80 18
Current a/c 85 19
Demat account 20 5

Credit cards 65 15
Mutual funds 40 9
Total 440 100
Source:Primary data

Chart 3: Which Services interested for customers

9%
Savings a/c
15% 34% Fixed deposits
Current a/c
5% Demat account
Credit cards

19% Mutual funds

18%

INTERPRETATION

From the above pie chart, majority of the customers are interested in creating savings account.
34% of the respondents are interested to create savings account, 19% of the respondents are
interested to create current account,18% of the respondents are interested to create fixed
deposits, 15% of the respondents are interested to buycredit cards.9% of the respondents are
interested to take mutual funds. And 5% of the respondents are interested to create Demat
accounts.

TABLE 4.4: RESPONDENTS OF OVERALL SATISFACTION RATING WITH THE

BANK BY CUSTOMERS

31
 PARTICULARS NO OF RESPONDENTS PERCENTAGE
Very dissatisfied 78 18
Somewhat dissatisfied 99 23
Neither satisfied nor dissatisfied 93 21
Very satisfied 103 23
Somewhat satisfied 67 15
Total 440 100
Source: Primary data

Chart 4: Overall satisfaction rating with the bank

No of respondents Percentage

23
23
21

18
15

99 103
93
78
67

Ver y S o m ew h at n ei t h er V e r y s a ti s fi e d S o m ew h at
d i s s a ti s fi e d d i s s a ti s fi e d s a ti s fi e d n o r s a ti s fi e d
d i s s a ti s fi e d

INTERPRETATION

From the above bar charts, majority of the respondents are very satisfied with satisfaction rating
with the bank. 23% of the respondents are very satisfied for the overall satisfaction with the bank,
23% of the respondents are somewhat dissatisfied forthe overall satisfaction with the bank, 21%
of the respondents are neither satisfied nor dissatisfied, 18% of the respondents are very
dissatisfied for overall satisfaction with the bank and 15% of the respondents are somewhat
satisfied for overall satisfaction with the bank.

TABLE 4.5: RESPONDENTS OF KNOWING THE SERVICES OF THE BANK OR NOT

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Savings account 100 23
Fixed deposits 99 23

32
Current accounts 92 21
Demat accounts 27 6
Credit cards 65 15
Mutual funds 57 13
Total 440 100
Source:Primary data

Chart 5: Knowing the services

Savings account Fixed deposits Current accounts

Demat accounts Credit cards Mutual funds

13%
23%

15%

6%
23%

21%

INTERPRETATION

From the above chart, majority of the respondents know about savings account. 23% of the
respondents know about Savings account, 23% of the respondents know about Fixed deposits
account, 21% of the respondents know about the Current accounts, 15% of the respondents know
about Credit Cards, 13% of the respondents know about the Mutual Funds and 6% of the
respondents know about the Demat accounts.

TABLE 4.6: RESPONDENTS ABOUT WHAT REASONS THAT ATTRACTS TO BUY

CREDIT CARDS

PARTICULARS NO OF RESPONDENTS PERCENTAGE

Spending limit 160 36

Bonus or credit points 77 18

33
Emergency needs 203 46
Total 440 100
Source:Primary data

NO OF RESPONDENTS PERCENTAGE

203

160

77

46
36
18

Spending limit Bonus or credit points Emergency needs

INTERPRETATION

From the above bar chart, majority of the respondent’s reason to buy a credit cards areemergency
need.46% of the respondents are attracted to buy credit cards for the reason i.e., Emergency
needs,23% of the respondents are attracted to buy the credit cards for the reason for the give
Spending limit and 18% of the respondents are attracted to buy the credit cards for the reason for
they give Bonus or Credit points.

FINDINGS:

 Majority of the customers gender who buy credit cards are male.
 Majority of the customers age group who buy credit cards lie between 36-50.
 Majority of the customers are interested in having savings account, fourth thing comes of
buying credit cards.

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  Majority of the customers satisfaction with rating the bank is very satisfied.
 Majority of the customers know about savings account but at the fourth thing is knowing
about credit cards.
 Majority of the customers are attracted to buy the credit cards for the reason it is of
emergency needs and second thing comes that they give spending limit.

SUGGESTIONSANDRECOMMENDATIONS

 Reliability is an undeniable spot to begin. Clients of the bank need to know their assets are
protected and inside reliable establishments. An approach to guarantee this significant
serenity is find a way to guarantee bank representatives are very much prepared, so each
bank partner can offer total and far reaching data by any means times. Reliable

35
 arrangements joined with a learned staff will cultivate a high level of institutional union
and unwavering quality.
 Responsiveness, again when related with a well-prepared staff and convenient answers to
support related inquiries, would make critical advances into causing HDFC bank be
viewed as responsive. Staff ought to be urged to display important alternatives to banking
clients in a way that doesn't look like charisma to such an extent as a longing to serve.
 Intangibles please clients the same amount of as effects in the financial business.
Individuals will in general visit a similar part of a bank again and again. Typically, this is
an area near their home or their working environment. It is normal that clients become
agreeable and habituated to these branch banks, for a similar explanation they create
commonality with a local market or accommodation store.
 It bodes well that bank workers would be urged to figure out how to perceive the
subregular clients, become familiar with their names, and start to recognize their essential
help necessities.
 Learning to comprehend customers‟ requirements will permit bank partners to offer
upgraded administrations, maybe bringing down customers‟ banking costs and expanding
their venture potential. This could likewise open up the plausibility of expanded benefits
for banks, for when seen as more help and client arranged, they will, as a result, become a
valuable and lovely approach to "shop."
 Keeping the save money with modern innovatively are significant components. Present
day equipment's, new improved innovation ought to be supplanted with the nut cases. On
the off chance that the staff inside is charming and well-educated, in a tastefully satisfying
condition, at that point consumer loyalty will be high.
 The five-dimensional structure might fill in as an important system for following a bank
“service quality execution after some time and looking at it against the presentation of
contenders. Things on certain measurements ought to be extended if that is essential for
unwavering quality.
 Thus, the financial businesses should ceaselessly quantify and improve these
measurements so as to pick up client’s devotion.

36
.

CONCLUSION

The investigation has uncovered that charge card has become a spending design for individuals in
India. What's more, it has a made a significant effect on spending intensity of the individuals. It
likewise tells that the individuals know about charge card distinctive private bank. Private banks
have gigantic effect of Visa use. It additionally tells that private banks have impact individuals

37
more than the open area banks. Banking segment plays out a vital job being developed of Indian
economy. So banks need to alternatively utilize mechanical advancement to build transmission,
improve their exhibition and proficiency, convey savvy items and administrations, give speedier,
proficient and helpful client assistance and in this way, advance the general improvement and
advancement of the nation. Banks should discover approaches to impact client will utilize their
Mastercard on day by day puts together and work with respect to it so increasingly more client
will utilize their Mastercard. They should attempt spread all costs which happens on every day
bases.

Through this task, it could be inferred that individuals are very little mindful about the different
results of the bank and a large number of them not intrigued to open a record, to contribute cash at
all administrations were considered as unsought great which require no-nonsense selling, yet in
changing pattern in salary and individuals getting monetarily proficient, the interest for banking
segment is expanding step by step. Thus, finally the end is that there is intense challenge ahead for
the organization from its significant rivals in the financial part. Last yet not the least I might want
to say thanks to HDFC Bank for allowing me a chance to work in the field of Finance Department.
I trust the organization finds my investigation pertinent.

BIBLOGRAPHY
Reference
Books: Richard P Bagozzi 2002 “Social psychology of consumer behaviour”

38
 1. Kothari, C.R, Research Methodology, New Delhi, Vikas Publishing House PVT LTD.
2007

WEBSITES

1. www.hdfcbank.com

2. www.economictimes.indiatiome.com

3. www.business-standard.com

4. www.wikepedia.com

ANNEXURE:

1. AGE?
2. GENDER?
o Male
o Female
3. WHICH OF THESE SERVICES ARE INTERESTED?
39
 o Savings account
o Fixed deposits
o Current accounts
o Demat accounts
o Credit cards
o cMutual funds
4. OVERALL SATISFACTION RATING WITH THE BANK
o Very dissatisfied
o Somewhat dissatisfied
o Neither satisfied nor dissatisfied
o Very satisfied
o Somewhat satisfied
5. How many customers know about the services?
o Savings account
o Fixed deposits
o current accounts
o Demat accounts
o Credit cards
o Mutual funds
6. What will be the reasons the customer attracts to buy the credit cards?
o Spending limit
o Bonus or credit points
o Emergency needs.

40