A Dissertation Report On

“A STUDY ON TELEMARKETING STRATEGIES ADOPTED BY HDFC BANK FOR MARKETING CREDIT

CARDS”
Submitted in partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Of
BANGALORE UNIVERSITY

Submitted by
SHARATH KUMAR MK
(Roll. No 18OTCMD027)
Under the Guidance of
Faculty Guide Company Guide
DR. SHILPA.K
Asst. Professor
IIPMB, Bangalore
Carried out at

HDFC Bank Ltd

Konankunte

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 TELEMARKETING STRATEGIES

ADOPTED BY HDFC BANK” carried out at HDFC Bank ltd is an original wok carried out by
SHARATH KUMAR MK bearing registration number 18OTCMD027, student of MBA, INDIAN
INSTITUTE OF PLANTATION MANAGEMENT, BANGALORE and is been submitted in
partial fulfilment 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 Signature of Director/Chairperson

INDIAN INSTITUTE OF PLANTATION MANAGEMENT

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

CERTIFICATE

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 This istocertify that SHARATH KUMAR, Reg. No. 18OTCMD008 student of MBA, Indian
Institute of Plantation Management, Bengaluru has completed her internship as part of her academic
requirement program from
Study on customer preferences towards credit card in HDFC bank

We wish her a bright future.

Girish

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 DECLARATION

I SHARATH KUMAR hereby declare that my dissertation project “STUDY ON TELE

MARKETING STATEGIES ADOPTED BY HDFC CRDIT CARD” is the result of the project work
carried out by me under the guidance of Dr. SHILPA K. (Faculty Guide), and
------ In partial fulfilment for the award of Master’s Degree in Business
Administration o Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University of Institute for the award of any other degree or diploma or
certificate.

Place: Bangalore SHARATH KUMAR

Date: (18OTCMD027)

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 INTRODUCTION

Since the 1980s, credit card usage has soared all around the world. The convenience and safety of
not carrying cash, the possibility of paying in instalments, non-price benefits like bonuses, rewards,
and shopping miles, and quick and easy access to credit are among the factors that contributed to
the widespread adoption of credit cards by consumers. There has been a significant increase of
credit card usage in India. As the credit card network spreads and more persons get into its ambit,
customer service in its business gains further importance. The present trend indicates that the
coming years will witness a burgeoning growth of credit cards which will lead to a cashless society.
Credit has become an important vehicle of trade promotion. Credit cards provide convenience and
safety to the buying process. One of the important reasons for the popularity of credit cards is the
sea change witnessed in consumer behaviour. Credit cards enable an individual to purchase
products or services without paying immediately. The buyer only needs to present the credit cards
at the cash counter and sign the bill. Credit card can, therefore, be considered as a good substitute
for cash or cheques. A credit card is a card establishing the privilege of the person to whom it is
issued to charge bills. Most retail firms accept credit cards. Credit cards allow consumers to make
purchases without paying cash immediately or establishing credit with individual stores. They
eliminate the need to check credit ratings and to collect cash from individual customers. The issuing
institution establishes the card’s terms, including the interest rate, annual fees, penalties, the grace
period, and other features. Credit card debt is typically an unsecured debt. Repossession is not
easily accomplished by the lender to ensure payment. Banks have often priced the product
assuming maximum exposure. This chapter contains information on credit card system, credit card
operating cycle, credit card defaults, consequences of credit card default and needfor the study.

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 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

State co-op Commercial Banks Central co-op Commercial Banks

Banks Banks and Primary
Cr. Societies

Indian Foreign

Public Sector
Private Sector Banks HDFC,
Banks
ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

and its Subsidiaries Banks

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TELEMARKETING

Telemarketing is a method of direct marketing in which a salesperson solicit

prospective customers to buy products or services, either over the phone or through a subsequent to
face or Web conferencing appointment scheduled during the call. face
Telemarketing is the act of selling, soliciting, or promoting a product or service over the
telephone; the telephone is the most cost-efficient, flexible, and statistically accountable
medium available. At the same time, the telephone is still very intimate and personal. It is
individual to individual.

Meaning:
Telemarketing is the process of using the telephone to generate leads, make sales, or gather
marketing information. Telemarketing can be a particularly valuable tool for small
businesses, in that it saves time and money as compared with personal selling, but offers
many of the same benefits in terms of direct contact with the customers.

Telemarketing can also include recorded sales pitches programmed to be played over the phone via
automatic dialling. Telemarketing has come under fire in recent years, being viewed as an annoyance
by many.

Telemarketing is especially useful when the customers for a small business's products or services are
located in hard-to-reach places, or when many prospects must be contacted in order to find one
interested in making a purchase. Although some small businesses operate exclusively by telephone,
telemarketing is most often used as part of an overall marketing program to tie together advertising
and personal selling efforts. For example, a company might send introductory information through
the mail, then follow-up with a telemarketing call to assess the prospect's interest, and finally send a
salesperson to visit.

Telemarketing can be either inbound or outbound in scope. Inbound telemarketing consists of

handling incoming telephone calls—often generated by broadcast advertising, direct mail, or
catalogues—and taking orders for a wide range of products. Representatives working in this type of
telemarketing program normally do not need as much training as outbound reps because the customer
already has shown an interest by calling in.

Outbound telemarketing can be aimed directly at the end consumer—for example, a home repair
business may call people in its community to search for prospects—or can be part of a business-to-
business marketing program. Representatives working on this side of the industry generally require

7
more training and product knowledge, as more actual selling is involved than with inbound
operations.

Major applications of business-to-business telemarketing include selling to existing accounts,

outbound new account development, inbound order processing and inquiry handling, customer
service, and supporting the existing field sales force. As the costs of field sales continue to escalate,
businesses are using telemarketing as a way to reduce the cost of selling and give more attention to
marginal accounts. Telemarketing programs can be either handled in-house by a company or firmed
out to service bureaus. Operations range in size from a one-person in-house staff member at a small
business to a major corporation or service center that may have as many as 1,000 telephone stations.

One of the advantages telemarketing has over other direct marketing methods is that it involves
human interaction. Used correctly and by professionals, the telephone is a very cost-efficient, flexible
and statistically accountable medium. At the same time, the telephone is still very intimate and
personal, one person speaking with another.

Although telemarketing has been the centre of some controversies—ranging from scams run over the
phone to a number of legal issues that have been the centre of debate at both the state and national
levels—the industry continues to grow. In fact, the American Telemarketing Association found that
spending on telemarketing activities increased from $1 billion to $60 billion between 1981 and 1991.
By the mid-1990s, telemarketing accounted for more than $450 billion in annual sales. This
increased use of telemarketing resulted in an unexpectedly strong backlash and for telemarketing
firms the landscape in the early 21st century has changed dramatically.

Telemarketing is especially useful when the customers for a small business products or
services are located in hard-to-reach places, or when many prospects must be contacted in
order to find one interested in making a purchase.

Although some small businesses operate exclusively by telephone, telemarketing is most

often used as part of an overall marketing programme to tie together advertising and
personal selling efforts. For example, a company might send introductory information
through the mail, then follow-up with a telemarketing call to assess the prospect’s interest,
and finally send a salesperson to visit.

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TYPES OF TELEMARKETING:
Telemarketing can be either inbound or outbound in scope.

1. Inbound Telemarketing:
It consists of handling incoming telephone calls—often generated by broadcast advertising,
direct mail, or catalogues—and taking orders for a wide range of products. The
representatives working in this type of telemarketing programme normally do not need as
much training as the outbound representatives.

2. Outbound Telemarketing:

It can be aimed directly at the end consumer; for example, a home repair business may call
people to search for prospects and customers. Representatives working on this side of the
industry generally require more training and product knowledge, as more actual selling is
involved in comparison to the inbound operations.

Advantages of Telemarketing:
1. Human interaction:
One of the advantages telemarketing has over other direct marketing methods is that it
involves human interaction.

2. Small businesses:
Telemarketing can be a particularly valuable tool for small businesses, in that it saves time
and money as compared to personal selling, but offers many of the same benefits in terms of
direct contact with customers.

3. Customer service:
Building a loyal client base is a fundamental factor in establishing a long- term business
success and increasing the value of the company. Telemarketing customer services can gain
repeat orders and increase the penetration of the customer base. Telemarketing has the
advantages of delivering excellent customer service.

4. Reduces cost:
As the costs of field sales continue to escalate, businesses are using telemarketing as a way
to reduce the cost of selling. It is also easier to communicate with customers. Most of the

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marketing efforts are directed towards select markets, so the cost per person contacted is
less.

5. Flexibility:
It is the most flexible form of direct marketing. It helps in knowing and understanding what
customers want, and are prepared to buy. Survey can be conducted with the advantages of
telemarketing, knowing what customers are looking for, the product or service, the brand,
etc.; one can constantly update the client data base.

6. Response measurement:
Response measurement is possible by knowing the effectiveness of advertising. The results
can be compared with the ones previously established, and the future plans can be based on
such results.

Disadvantages of Telemarketing:
1. An increasing number of people have become averse to telemarketing.

2. No visual contact with the customer is possible.

3. More people are using technology to screen out unwanted callers, particularly
telemarketers. `

4. Government is implementing tougher measures to curb unscrupulous telemarketers.

5. If hiring an outside firm to do telemarketing, there is lesser control in the process, given
that the people doing the calls are not your employees.

6. A telephone conversation has very short memory.

7. Pre-purchase inspection of goods not possible.

8. It can be extremely expensive, particularly if telemarketing is outsourced to an outside

firm.

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Benefits of telemarketing

TELEMARKETERS FOLLOW THE BELOW STEPS TO IMPROVE 1.

Telemarketing works: - Telemarketing industry continues to grow for it has a significant impact on
lead generation as it creates a wide range of options and opportunities for targeted customers. It is the
right way of testing new products and can be a fast way of acquiring new customers. Telemarketing
also gives many of the advantages of face to face meetings, and even allows companies to contact a
large number of telemarketing industry continues to grow for it has a significant impact on lead
generation as it creates a wide range of options and opportunities for targeted customers. It is the
right way of testing new products and can be a fast way of acquiring new customers. Telemarketing
also gives many of the advantages of face-to-face meetings, and even allows companies to contact a
large number of potential customers at a distance.

1. Be Clear When Cold Calling

Successful telemarketing begins with knowing your purpose before you initiate the call. Are
you trying to find out the name of the decision maker? Do you want to send information? Do
you want an opportunity to pitch your product or service? Are you conducting a survey? If
you know your purpose in advance you'll communicate the right message in subtle,
subconscious ways. You'll be more confident and everyone knows that confidence wins
mindshare, which is what sales is all about.

2. Be Prepared for Each Cold Call

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 One of the best kept secrets of telemarketing is to know your script. Cold calling is a numbers
game and the only way to skew the numbers in your favour is to be prepared. Confidence in
your purpose and control of your message shows your prospect that you are a professional
and that your product or service is of value. 

3. Be Efficient While Telemarketing

Even if the message is welcome it's an interruption to what your prospect was doing before
they answered your call. Show them that you respect their time and yours. 

4. Make the customer feel important

During the call, it's important to make your prospect feel like they're the most important
person in the world to you. Take the time to really understand their needs and match your
pitch to the issues they face.

5. Be Interested and Interesting During Cold Calls

Prospects are used to the sales pitch. In fact, they've all-but become immune to it. When you
call, grab their attentions with power words that provoke interest, then try to get them talking
about themselves. Take notes, then use what they said as you relate the reason for your call.
People will care what you know when they see clearly how it applies to their life. Remember
that people don't buy products, they buy results. 

6. Ask questions

By asking questions, you're showing an interest in your prospect and encouraging them to
talk about themselves. Don't be afraid to ask as many questions as you like. Make sure you
ask a good proportion of open questions, i.e. those which require something other than a
"yes" or "no" answer. It might help to make a list of such questions to refer to when you're on
the phone

7. Smile as you dial

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 When cold calling, always put on a positive and friendly front. Your prospects do not have to
listen to you and will not if you're not enigmatic and engaging. A calm and confident manner will
yield far better results, and your success will breed further success

8. Perseverance

Cold calling can feel like an uphill struggle sometimes, and it can make you want to give up. By
persevering, you will learn more about what appeals to customers, and hone your technique to
improve your results. 

9. Maintain the initiative

When finishing your call, suggest a time to get back in touch. And make sure it's you that calls them
back. Your call will be more welcome if you agree a time to call back and stick to it.  

10. Close the deal

Once you have established some interest in your company and/or products, it's time to close the deal.
Consider what you need to secure the order i.e. a visit in person or a signed order form and don't be
afraid to ask for it, once you're sure your buyer is keen.

11. Be Someone They Want to Call Back

Voicemail isn't a dead end. Too many telemarketers lose opportunities by not leaving messages for
their prospects via voice messaging systems. To catch attention on voicemail, begin with the end in
mind. You want them to call you back so leave your name and number. Tell them to write that down.
People write numbers when they are dictated anticipating that the information might be necessary.
Use that to your advantage. Next state a compelling reason why you're calling and an even more
compelling reason for them to call you back. Project confidence but don't sound slick. Finally leave
your name and number again in case they didn't get it.

12.Motivation

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One of the most important things in telemarketing is motivation. Someone has to want to do the job.
The overall motivation will determine how they speak to people. So, successful telemarketers are
very motivated to do the job.

13. Product knowledge

In order to successfully speak about a product or a service, the telemarketer must know about the
product or the service. Customers will ask questions before they buy or sign up for something, so the
telemarketer should be able to answer the questions. Knowing the product or service will help the
telemarketer make a successful deal.

14. Know the call format

The telemarketer should have a call format or a call plan. They should know the order of the call: the
introduction, the description of the product, the price, the value of the product, how to order, and the
closing.  Many companies will have a script to follow. A successful telemarketer will know the script
and use it to their advantage.

15. Attitude

Attitude is evident on the phone. When someone' happy and excited, those emotions will palatable,
even on the phone. Angry, upset, or frustrated telemarketers are usually not successful. So, the
successful telemarketer will have a positive attitude while doing their job.

16. Know the customer

A good telemarketer will know the customer. Know when it is a good time to call. Calling during
dinner, early in the morning, or late at night will not be successful. If you call at a bad time, ask the
customer when a better time to call would be. Know what they are looking for. Do not try to sell
them something they are not interested in. This will create hostility. Listen to what the customer has
to say. Their comments and input can help you guide the direction of your call. Respect the

14
customer's feelings and comments. Knowing the customer is a successful technique for any
telemarketer.

17. Visualize your success

Many telemarketers receive bonuses or rewards for a job well done. A successful telemarketer will
visualize his or her success. They set goals and work towards those goals. Having a vision of what
you want to get out of this job will help create a successful telemarketer.

18. Enjoy the success

A successful telemarketer will always take the time to enjoy the fruit of their hard work. They will
be proud of their successes and will continue to strive for future success.

What is credit card?

“Credit Cards - It's credit to you!”

A credit card is referred to as ‘plastic money’. Carrying a lot of cash on you can be cumbersome,
risky and sometimes, you run short of it, just when you most need it. A credit card is the smart
solution to these problems. It is a convenient and safe alternative for cash.

Besides, it says things about you most people associate a credit card with a prestige, which it most
certainly bestows on you but more importantly, it says that you have taken the onus of being
responsible to extended credit so, when you get yourself a card, remember that, because your bank
does.

CREDIT CARD SYSTEM

In the year 2014, HDFC Bank became the biggest issuer of the credit card in the country – a
whopping 5.5 million outstanding credit cards were issued by the end of October 2014, as per the
data of Reserve Bank of India. During the same year, the bank introduced the missed call banking
service, allowing the customers to access the banking services easily without having to visit the bank
personally or using online facilities. A little more than a million customers started using this facility
within a few weeks of its launch. In 2016, the bank continued the top position of being the biggest
issuer of credit cards in India with the issue of around 7.28 million credit cards and a 22 percent of
growth over the previous year as per the RBI data. The HDFC Bank Credit cards base is comparable

15
to the mixed card base of the ICICI Bank and SBI Bank’s credit card. In February 2018, according to
a data released by the Reserve Bank of India, HDFC Credit Card customer base stands at 1.02 crore
and it is equal to 28.68 percent of the total credit card customer base in India. HDFC BANK The
Housing Development Finance Corporation Limited (HDFC) was the first one to receive an approval
from the Central Bank to set up a bank in the private sector during the year 1994. As a part of
Reserve Bank of India’s liberalization policy of the Indian Banking Industry, the RBI started to give
approval for private players to set up banks as per the set rules and regulations. The bank was
incorporated during August 1994 in the name of ‘HDFC Bank Limited’. Its registered office is
located in Mumbai, the financial capital of India. The bank commenced its operations as a Scheduled
Commercial Bank in the year January 1995. The bank’s first office was opened at Ramon House,
Churchgate in Mumbai. The bank opened its first corporate office and a full-service branch at Sandoz
House, World, in midtown of Mumbai. The office was inaugurated by Dr. Manmohan Singh, the
then Union Finance Minister. During March 1995, it launched its first initial public offering of Rs
500 million. In May 1995, the HDFC Bank was listed on the Bombay Stock Exchange at Rs 39.95
per share. They were listed on the National Stock Exchange in November 1995. In the year
November 1999, HDFC Bank launched international debit card, enabling the account holders to their
access bank account from anywhere in the world. It was for the first time an international debit card
was launched in association with Visa International in India.

Features of HDFC Credit Card

• Personalized Offerings – HDFC provides a customized credit card to match the needs and
requirements of the individual customers.

• Discount Facilities – HDFC credit card has tie-ups with elite brands ranging from apparel to dining
and hence provides great discount facilities, cash back offers and reward points to all its customers
on all the days in a year.

• Modernized Security – The HDFC credit card offers its customers highly secured mechanism to
conduct online transactions smoothly without facing any hassles.

• Balance Transfer – It provides a facility to transfer the balance from one credit card to another or
to transfer the amount to any other account.

• Loan against Card – HDFC credit card provides loan against card without much of paperwork at
the doorsteps of the customer on demand

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• Bill Value Program – The credit card can be used to pay bills and for shopping purpose. One can
pay mobile, telephone, electricity, insurance bills using HDFC credit card and get cash back benefits
and accumulate reward points offer.

The following are the Bill Value Programs of HDFC Bank: -It charges an annual service fee of Rs
199 per annum. It provides following benefits.

 Welcome Benefit of 500 Bonus Reward Points on the first utility bill payment (Payment
through Smart Pay or directly to the merchant). Smart Pay Benefit of 2% Cash back on all
Smart Pay payments with a max cap of Rs 200 and reversal of Rs 10.
 Smart Pay Transaction Processing Fee (Smart Pay is a standing instruction for making utility
bill payments on HDFC Bank Credit Card)
 Direct Pay Benefit – 1% Cash back on all utility bill payments directly made to the billing
merchant with a max cap of Rs 150

BENEFITS OF HDFC CREDIT CARD

The following are the benefits of using an HDFC Credit Card:

 Low-Interest Rates – HDFC Credit card, charges a very low-cost structure with respect to
interest rates on all overdue payments.
 Cashless Transactions – With the HDFC Credit Card, the cardholder can transact easily
without carrying cash all the time. The user can enjoy hassle-free cash using HDFC Credit
Card. It discounts the need to carry cash everywhere.
 Customized Service – HDFC provides a broad pattern of credit card service to match
everyone’s taste and expenses. It offers the user a host of benefits which are extremely
handy.
 Universal Recognition – HDFC credit cards are universally accepted and facilitate cashless
transactions across millions of merchant locations across the world.
 Unique Assistance – HDFC Credit Cardholders are entitled to receive exclusive benefits
like reward scheme, loan on credit card facility, online services, EMI option facilities, cash
back schemes, EMI option, travel assistance, frequent flier miles, free movie tickets, dining,
shopping and fuel surcharge waiver facility and so on.

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The cardholder can use a credit card for e-shopping and make online bill payments.
The cardholder can also extend a loan and it allows the user to pay through EMIs.
Additionally, one can even earn discounts and get reward points by using an HDFC
credit card.

Insurance – The HDFC Credit Card was the first credit card in India which introduced a special
feature of free inbuilt cashless Mediclaim policy. Currently, it provides the insurance facilities under
the following categories: Health Insurance, Critical Illness Insurance, Accident Protection Insurance
and Super Top up Insurance.

How to Apply HDFC Credit Card?

HDFC Credit Card apply either by visiting the nearest branch of HDFC Bank or via online. HDFC
Credit Card Apply via Offline for Offline application – through the bank branch, you can visit the
nearest HDFC Bank and meet a credit card handling bank’s representative and express your interest
to obtain a Credit Card of your choice after going through the various credit card variants. The
representative will guide you through the application filling process, wherein you will be required to
fill out the form and submit the required documents. The bank will check whether the candidate is
eligible to avail the credit card for which they have applied for. Based on the eligibility of the
customer, they may or may not receive the credit card, it will be on the discretion of the HDFC Bank
to decide if a customer has to be given Credit Card or not. HDFC Credit Card Apply Online for
HDFC Bank Credit Card apply online, you need to visit the HDFC Bank’s official website and
follow the list of procedure as given below: HDFC Bank Credit Card Application Form

1. Select the type of Credit Card you wish to apply for as per the individual requirement after going
through the features of the card in detail.

2. Click on the ‘Apply Online’ option.

3. Enter your mobile number in the specified column and click on proceed option

4. A one-time password (OTP) will be sent to the respective mobile number for verification 5. Now
enter the OTP and click on the proceed option

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6. Enter the personal details including the • Name • Gender • Date of Birth • Residential Address •
Employment Type • If you have a Credit Card, then mention the details about the same • In case if
you have applied in the last six months then select the appropriate option

7. Enter the captcha code and proceed further

8. You can select from the list of the cards as per the individual requirements

9. Select Apply option and proceed further

10. You have to fill up the online application form with correct details and submit the same and thus
you complete submitting the online application form to secure credit card.

11. Once the details are filled in, the bank will check whether the candidate is eligible to avail the
credit card for which they have applied for. Based on the eligibility of the customer, they may or may
not receive the credit card, it will be on the discretion of the HDFC Bank to decide if a customer has
to be given Credit Card or not. 12. If you have fulfilled the
criteria, you will get a call from the HDFC Bank executive regarding the application form after
which a representative from the Bank will visit you to collect the required documents.

13. Once the application is approved, the respective Credit Card will be delivered to your address
within a week. Applicants can also apply for an HDFC Bank’s Credit Card, by using the customer ID
and mobile number via online.

HDFC BANK CREDIT CARD ELIGIBILITY: - The list of HDFC Bank Credit Card eligibility
criteria:

• To apply for HDFC Bank’s Credit Card, the individual should have attained a minimum of 21 years
of age. Anyone falling in this category is eligible to apply for a credit card with HDFC Bank.

• The applicant should be a resident of India or Non-Resident Indian.

• The applicant should have a good CIBIL Score.

• The applicant should have a regular source of income

• The applicant should have a minimum income of Rs 18,000 per month

• The applicant should be a regular employee working in an established company or a self-employed

professional managing own business.

DOCUMENTS REQUIRED FOR HDFC BANK’S CREDIT CARD

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• One Identity Proof issued by the government of India – Election Voters ID, Driving License,
Aadhaar Card, Passport, Ration Card.

• Proof of Income – Last 3 months salary slip or last 3 months bank statement

• Address Proof – Electricity Bill (latest or previous month), Phone Bill (latest or previous month),
Rental agreement, Flat maintenance bill (latest or previous month), bank statement (latest or previous
month), Passport, Driving License

• PAN Card.

• Passport size photograph

BENEFITS OF HDFC CREDIT CARD

Banking Customers who access the HDFC Bank Credit card using the Net Banking facility can view
all the account information quickly and easily. The online features of the credit card help the users to
view the Account Information Credit card statement for up to last 6 months Unbilled transactions
Request for AutoPay registration Credit Card Payments Registration of New Card Statement on e-
mail Credit Card ATM Pin De-registration of Card AutoPay De-registration HDFC Credit Card
Statement The HDFC Credit Card Statement will be received every month and it mainly records all
the transactions which the credit card holder makes during the previous month. The credit card
statement will be sent either courier to your corresponding address or you will receive it as an e-mail
statement or both, based on how you have opted to receive the statement. HDFC Credit Card users
can view this statement online via Net Banking also. One should check this statement carefully as it
is an important document. If you come across any unauthorized or suspicious transaction, then the
same should be bought to the immediate notice of the bank. Important Things to look out for while
viewing HDFC Credit Card Statement: Transaction the HDFC Credit Card Statement will include the
chronological list of all the transactions which you have made during the statement period. Domestic
and international transactions will be listed separately. Each of the transaction will include the date of
the transaction, description of the transaction and the value of the transaction. It also includes any
credits to your account, for example – credit card bill payment which you have made or a refund that
you may have received. Such transactions will be marked as ‘Cr’ next to the amount column. It is
always advised to check each of the items against the charge slips or transaction alerts. Dues At the
time of reading the summary, do check the total dues (the sum of all the transactions during the
statement period plus any past dues) and the minimum due amount (the amount you should pay to
avoid late payment charges). Account Summary This will give an overview of how much you have

20
paid to the bank and how much you spent and past due amount if any. Dates While reading the
HDFC Credit Card Statement do check the statement date (the date on which the statement was
generated) and the payment due date (the date by which you should pay the total dues to avoid late
payment charges). Limits Check your credit limit (it is the limit up to which the cardholder can spend
in a month), available credit limit (the credit limit minus what you have already spent) and available
cash limit (how much one can withdraw from ATMs) Reward Points Summary This section will
highlight the accumulated reward points during the statement period and in total. It all informs you
that if any points are likely to expire and the points you may have

INTREST CHARGES

Interest charges Credit card issuers usually waive interest charges if the balance is paid in full each month,
but typically will charge full interest on the entire outstanding balance from the date of each purchase if the
total balance is not paid. The credit card may simply serve as a form of revolving credit, or it may become a
complicated financial instrument with multiple balance segments each at a different interest rate, possibly
with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments.
Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump
dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the
issuing bank decides to raise its revenue.

GRACE PERIOD

Grace period A credit card's grace period is the time the customer has to pay the balance before
interest is charged to the balance. Grace periods vary, but usually range from 20 to 50 days
depending on the type of credit card and the issuing bank. Some policies allow for reinstatement
after certain conditions are met. Usually, if a customer is late paying the balance , finance charges
will be calculated and the grace period does not apply. Finance charges incurred depend on the
grace period and balance, with most credit cards there is no grace period if there is any outstanding
balance from the previous billing cycle or statement (i.e. interest is applied on both the previous
balance and new transactions). However, there are some credit cards that will apply finance charge
only on the previous or old balance, excluding new transactions.

Benefits to customers

Because of intense competition in the credit card industry, credit card providers often offer
incentives such as frequent flyer points, gift certificates, or cash back (typically up to 1 to 5 percent

21
based on total purchases) offers try to attract customers to their programs. Low interest credit
cards or even 0 per cent interest credit cards are available.

Benefits to merchants

For merchants, a credit card transaction is often more secure than other forms of payment, such as
cheques because the issuing bank commits to pay the merchant the moment the transaction is
authorized, regardless of whether the consumer defaults on the credit card payment. In most cases,
cards are even more secure than cash, because they discourage theft by the merchant's employees
and reduce the amount of cash on the premises. Prior to credit cards, each merchant had to
evaluate each customer's credit history before extending credit. That task is now performed by the
banks which assume the credit risk.

CREDIT CARD OPERATION CYCLE

The credit card operation comprises the following steps as follows:

Credit purchases: A Cardholder purchases goods/services and gives the credit card.

Processing of credit card: A Merchant establishment delivers goods after taking an authenticated
credit card and noting the number and taking signatures on certain forms.

Raising of bill: The Merchant establishment raises the bill for the purchase and sends it to the
credit card issuing bank for payment.

Marking payment: The issuing bank pays the amount to the merchant establishment.

Bill to cardholder: The issuing bank raises bill on the credit cardholder and sends it for payment.

Card Payment: The credit cardholder makes the payment to the issuing bank.

THE FOLLOWING IMPORTANT PARTIES INVOLVED IN THE OPERATION OF CREDIT CARDS ARE:

Credit cardholders: The person named on the card. This may be customer of a bank to whom the
card has been issued or any such person to whom the bank has issued a card authorized by the

customer of the bank to hold and use the card. This individual is also responsible for payment of all
charges made to that card. The holder of the credit card who uses to make a purchase is called the
consumer.

22
Card-issuing bank: The financial institution or other organization that issued the credit card and
also responsible for billing the cardholders for charges. The bank bills the consumer for repayment
and bears the risk that the card is used fraudulently. The issuing bank extends a line of credit to the
consumer. Liability for non-payment is then shared by the issuing bank and acquiring bank.

Merchant Establishments: The individual or business accepting credit cards for sold products or
services to the cardholders.

Acquiring bank: The financial institution accepts payment for the products or services on behalf of
the merchant establishments.

Independent sales organization: Resellers (to merchants) of the services of the acquiring bank. i.e.
outside services providers for marketing of cards.

Merchant account: This could refer to the acquiring bank or the independent sales organization,
but in general is the organization that the merchant deals with.

Credit card association: An association of card-issuing banks such as Visa, MasterCard, Discover,
American Express that set transaction terms for merchants, card-issuing banks

Transaction network: The system that implements the mechanics of the electronic transactions.
May be operated by an independent company, and one company may operate multiple networks.
Transaction processing networks include Cardnet, Nabanco, Omaha, Paymentech, NDC Atlanta,
Nova, Vital, Concord EFSnet, and Visa Net.

Affinity partner: Some institutions lend their names to an issuer to attract customers that have a
strong relationship with that institution, and get paid a fee or a percentage of the balance for each
card issued using their name. Examples of typical affinity partners are sports teams, universities,
charities, professional organizations, and major retailers.

STRATEGIES EVERY CREDIT CARD MARKETING EXEC SHOULD IMPLEMENT

Constructing an effective credit card marketing strategy isn’t as simple as throwing a precious metal
into a card’s name or casting Alec Baldwin for television spots. There are 5 tactics in particular that
you would be remise in not implementing immediately, if you haven’t already done so.

23
1. Focus each product on a single consumer need:
By focusing each credit card offer on a distinct consumer need, you garner both the
ability to present more effective value propositions to consumers and a customer base that
behaves as predictability as possible, thereby making it easier to forecast card predictability
as well as adjust marketing strategies based on early returns.
This is obviously difficult to achieve if the same card is trying to address disparate needs. For
example, if a card provides lucrative rewards as well as low introductory interest rates, you’ll
wind up with some customers who spend a lot and always pay their bills in full, some who
transfer balances with no guarantee that they will keep their cards following the expiration
of intro rates.

2. Bring together marketing and underwriting:

Too often the marketing and underwriting teams at credit card companies are disparate
entities that have effectively little, if anything, to do with one another. You know what this
leads to? Applicants that do not fit the underwriting criteria used to develop offers and
underwriting conservatism that could easily be avoided.
A credit card’s marketing message significantly affects the type of consumer that will apply
for it. And if the only direction given a marketing team is that each account cannot cost the
company more than $100, for example, they’ll likely meet that constraint, but in doing so
may attract riskier, less profitable customers. This would, in turn, necessitate an
underwriting adjustment to the point that each account could no longer cost more than $70,
which would push the marketing team to rely more heavily on the lowest-hanging fruit –
even riskier, less profitable customers than before.

3. Offer secured cards:

All credit card companies should offer secured credit cards for two very simple reasons: 1)
they provide profitable access to a significant consumer segment without adding any risk
and 2) soliciting secured card customers who prove their creditworthiness will become one
of your most efficient marketing channels. It’s a can’t-lose strategy made even more
essential now that the CARD Act has mitigated both the profitability and popularity of
unsecured credit cards for people with bad credit.

24
4. Appeal to farmer debit card users:

In the past, consumers have gravitated to debit cards instead of credit cards for three main
reasons: 1) a desire not to have to pay bills; 2) the urban legend that debit cards provide fraud
protection superior to that available via credit cards; and 3) the decreased risk of
overspending.

However, recent overdraft and swipe fee regulations have resulted in a mini-exodus from
debit cards, driven primarily by the near-extinction of debit card rewards. This means a
significant opportunity exists for credit card companies to add valuable new accounts to their
rewards portfolios. The key to addressing the aforementioned consumer concerns is a
combination of auto-pay plans, customizable limits, and education about the relative merits
and risks of both credit cards and debit cards. Marketers can thereby ensure that rewards are
the deciding factor in people’s minds.

5. Leave no customer empty handed.

When a customer comes to a bank in search of a credit card, you’re seeing the fruits of a lot
of time and money spent on marketing. The most irresponsible thing you can do at this
juncture is turn the consumer down for whichever card they apply and offer no profitable,
attainable alternative. At the very least, a secured card will be fitting, and by exhausting every
opportunity to turn potential customers into customers, you’ll drastically increase the
efficiency of marketing dollars.

Ultimately, it’s no secret that the credit card company making the most out of every
marketing dollar spent generally wins, as that company can simply outspend the competition.
It’s therefore key that marketing executives think not only about their advertisements and
value propositions, but also about product terms, card profitability, and customer experience.
In short, mechanisms like those discussed in this article could significantly increase
marketing budget efficiency.

25
 COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an
‘in principle’ approval from the Reserve Bank of India (RBI) to set up bank in the private sector, as
part of the RBI’s liberalization of the Indian Banking Industry in 1994. The bank was incorporated in
August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India HDFC
Bank commenced operations as a scheduled Commercial Bank in January 1995. HDFC is India’s
premier housing finance company and enjoys an impeccable track record in India as well as in
international markets. 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.

HDFC Bank began operations in 1995 with a simple mission: to be a “World class Indian Bank”
We realized that only a single-minded focus on product quality and service excellence would help
us get there. Today, we are proud to say that we are well on our way towards that goal.

HDFC Bank Limited (the bank) is an India- based banking company engaged in providing a range of
banking and financial services, including commercial banking and treasury operations. The bank has
a network of 1412 branches and 3295 automated teller machines (ATMs) in 528 cities and total
employees in 52687.

26
HISTORYOF HDFC BANK

HDFC BANK LTD was incorporated in August 1994 in the name of ‘HDFC BANK LTD’, with its
registered office in Mumbai, India. HDFC Bank commenced operations as a scheduled commercial
Bank in 16th January 1995.

If ever there was a man with a mission it was Hasmukh Bhai Parekh, Founder and Chairman
Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first to set up a bank in the private
sector. The bank has grown consistently and is now amongst the leading players in the industry.

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 expertise 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 in a milestone
transaction in the Indian banking industry, Times Bank was merged with HDFC Bank Ltd., effective
February 26, 2000.

MISSION STATEMENT OF HDFC BANK

I. World class Indian Bank

II. Bench marketing against international standards
III. To build sound customer franchises across distinct businesses
IV. Best practices in terms of product offerings, technology, service levels, risk management and
audit & compliance

VISION STATEMENT

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core values
such as: -

1. Operational excellence.
2. Customer Focus.
3. Product leadership.

27
 4. People.

The objective of the HDFC Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one- step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY

 Increasing market share in India’s expanding banking

 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian sector

PROMOTER

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 market leader in mortgages. Its
outstanding loan portfolio covers well 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.

28
BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking services
for target retail and wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC
Bank's business philosophy is based on four core values - Operational Excellence, Customer
Focus, Product Leadership and People.

CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6
crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the
equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS)
Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has
about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National
Stock Exchange. The bank's American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB'.

DISTRIBUTION NETWORK

HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable network of over 1229
branches spread over 444 cities across India. All branches are linked on an online real-time basis.
Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion
plans take into account the need to have a presence in all major industrial and commercial centers
where its corporate customers are located as well as the need to build a strong retail customer base
for both deposits and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member
base. The Bank also has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's

29
ATM network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

HUMAN RESOURCES

The Bank’s staffing needs continued to increase during the year particularly in the retail banking
businesses in line with the business growth. Total number of employees increased from14878 as
ofMarch31, 2006 to 21477 as of March 31, 2008.The Bank continues to focus on training its
employees on a continuing basis, both on the job and through training programs conducted by
internal and external faculty.

The Bank has consistently believed that broader employee ownership of its shares has a positive
impact on its performance and employee motivation. The Bank’s employee stock option scheme so
far covers around 9000 employees.

MANAGEMENT

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Kapoor was a
Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a
professional banker for over 25 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, industry and commercial banking. Senior executives representing HDFC 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.

30
TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online 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. The Bank's business is supported by scalable and robust
systems which ensure that our clients always get the finest services we offer. 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.

HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial services industry by following
disciplined growth strategy focusing on quality and not on quantity and delivering high quality
customer service. Leverage our technology platform and open saleable systems to deliver more
products to more customers and to control operating costs. Maintain current high standards for asset
quality through disciplined credit risk management. Developed innovative products and services that
attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to
develop products and services that reduce bank’s cost of funds. Focus on high earnings growth with
low volatility.

2.2 PRODUCT SCOPE:

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

31
enhancing goodwill of the company. The products of the company are categorized into various
sections which are as follows:
 Accounts and deposits.
 Loans.
 Investments and Insurance.
 Forex and payment services.
 Cards.
 Customer center.

CARD SERVICES

In today’s competitive and fast time card services providing by the banks are really very important
to every person and every business need or to take meal in to the hotel or to purchase jewellery
from the jewellery shops cards are playing good role in the banking sectors.

Bank ranges of cards help to meet financial objectives. So, whether persons are looking to add
to his buying power, conducting cashless shopping, or budgeting his expenditure, he will find a card
that suits him.

CREDIT CARDS

A person wants things like, a trip to ball, a diamond ring for wife’s dreams. Some dreams can’t wait.
If there’s something person has always wanted. If a person wanted fulfil his wants, he can get
benefits from the HDFC bank’s credit cards facilities

Different types of credit card

Classic Card

Silver credit Card

Titanium Credit Card

Woman’s Gold Card

Platinum plus Credit Card

Visa Signature Credit Card

32
World Master Card

Commercial Cards

Corporate Credit Card

CREDIT CARD MARKETING: EIGHT WAYS TO MAKE YOUR CARD TOP

OF WALLET

 Regular communication with customers: Establishing ongoing communications with

cardholders can help reinforce your card value proposition, communicate benefits and
heighten brand awareness. There’s great potential in a multichannel approach, using both
traditional and digital communications tools and existing customer touch points.

 Segmented offers: It may be effective to design differentiated and segmented marketing

campaigns and promotions for different types of customers. For cardholders who use their
card infrequently or for low-ticket items, you may be able to capture more usage with spend-
and-get offers or bill pay campaigns—and for cardholders who spend frequently, a good
approach might be to encourage digital wallet usage and give them more spending power
with a credit line increase.

 Targeted promotions: To encourage specific spend behavior such as small-ticket purchases

or new merchant category purchases, consider promotions aimed at cardholders that are likely
to spend in those categories in the future. Visa can help you identify current spending trends,
patterns and customer segments to help you more effectively match your promotions with the
right customers and grow usage.

 Diversified messaging: Sending ongoing communications without overwhelming your

customer base is a tricky balance. One solution may be to diversify your communications by
promoting varied card benefits or offers, including balance transfers, credit line increases, bill
pay, small ticket purchase messaging, holiday offers and sweepstakes.

 Seasonal spending promotions: You may be able to take advantage of seasonality in

spending behaviors by timing your spending offers to maximize the impact. Some seasonal
options include:

33
 o January: Promote balance consolidation and increase spending power through
balance transfer offers and credit line increases
o June: Encourage summer vacation spending with rewards messaging
o August: Create back-to-school usage offers with spend-and-get offers
o November: Develop holiday spending offers to encourage top-of-wallet behavior
 
 Timed balance transfer promotions: Seasonality in spending also creates opportunities for
targeted balance transfer offers. Potential usage campaign themes include:

o January: Promotions encouraging transfer of holiday balances

o April: Messaging around paying taxes using credit products
o August/September: Campaigns directed at parents and students who are paying
tuition and getting ready for the school year.
 
 Your rewards program: Your rewards program can be a cornerstone of your usage strategy.
For example, you may encourage top-of-wallet behaviors by reminding customers how they
can earn and redeem their rewards. Customers that are actively engaged with your rewards
program should demonstrate top-of-wallet behavior.

It can be valuable to remind your customers of your program’s earn rates and redemption
options. Consider tying incentives to the rewards earning structure that you have in place. For
new customers, consider a spend-and-get campaign that encourages active usage for everyday
and big-ticket purchases. To promote engagement and encourage adoption, it may help to
establish a low redemption tier that active cardholders can achieve in the first three to six
months.

Usage promotion vs. early month on book (EMOB): Usage campaigns can help drive increased
spend behavior from active customers. Usage campaigns should garner better results from already-
active accounts versus inactive segments. If you are

34
HOW CREDIT CARD WORKS?

 Credit cards are issued by credit card issuer, such as a bank or credit union, after an account
has been approved by the credit provider, after which cardholders can use it to make
purchases at merchants accepting that card.
 When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder
indicates consent to pay by signing a receipt with a record of the card details and indicating
the amount to be paid or by entering a personal identification number (PIN)
 Many merchants now accept verbal authorizations via telephone and electronic authorization
using the internet, known as a card not present transaction (CNP). Forcard not present
transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales),
merchants additionally verify that the customer is in physical possession of the card and is the
authorized user by asking for additional information such as the security code printed on the
back of the card, date of expiry, and billing address.
 Each month, the credit card user is sent a statement indicating the purchases undertaken with
the card, any outstanding fees, and the total amount owned.
 After receiving the statement, the cardholder may dispute any charges that he or she thinks
are incorrect. Otherwise, the cardholder must pay a defined minimum proportion of the bill
by a due date, or may choose to pay a higher amount up to the entire amount owned,

35
  The credit card issuer charges interest on the amount owned if the balance is not paid in full
(typically at a much higher rate than most other forms of debit).
 In addition, if the credit card user fails to make at least the minimum payment by the due date, the
issuer may impose a “late fee” and/or other penalties on the user.
 To help mitigate this, some financial institutions can arrange for automatic payments to be deducted
from the user’s bank accounts, thus avoiding such penalties altogether as long as the cardholder has
sufficient funds.

Major Factors Influencing your Credit Limit:

1. Your Income/Salary:

Usual credit limit is 2X or 3X of your monthly income. Suppose your salary slip shows Rs.50,000 per
month, you can expect Rs. 1 Lakh – 1.5 Lakh credit limit. For self-employed, suppose you’ve filed an
income of Rs.5 lakhs for last financial year, you can expect 1 Lakh – 2 Lakhs as credit limit as Business
cards usually gets better limit for obvious reasons.

2. Your CIBIL Score:

Everything should be fine if your CIBIL score is 750 or above. Lower score might lower your limit even
though your income might be high. Any existing defaults found on your other Loan accounts/credit cards
might affect your expected credit limit negatively or maybe even reject your application.

3. Your Portfolio with the issuing Bank:

This is very important if you’re requesting a credit card based on your savings/salary account
transactions. HDFC/AXIS credit cards are easy to get this way, provided you’ve good amount of
transactions on your account every month. Banks not only see your transactions, but also other products
availed form the bank. Suppose you’re using FD/RD/insurance plans from the same bank, you’re likely to
have higher relationship value with the bank, and so your credit limit.

4. Hard Enquiries with other bank:

36
If you’ve requested credit cards/loan with 5 banks all in same month, this will not only reduce your
CIBIL score, it will also show your credit hungry behaviour and this might reduce your expected credit
limit.

5. Ongoing Loans/EMI:

If your monthly income is Rs.50,000 and if you’re paying monthly EMI of Rs.30,000 on your home loan,
this will give a huge blow on your expected credit limit as your cash flow gets reduced by half  and so
your ability to pay bills. So bank knows that you’ve got only Rs.20,000 left for spending and you cannot
expect a limit like 1 Lakh or so.

37
 LITERATURE REVIEW

SUJIT CHAKRAVARTY

Credit cards provide benefits to consumers and merchants not provided by other payment
instruments as evidenced by their explosive growth in the number and value of transactions over the
last 20 years. Recently, credit card networks have come under scrutiny from regulators and antitrust
authorities around the world. The costs and benefits of credit cards to network participants are
discussed. Focusing on interrelated bilateral transactions, several theoretical models have been
constructed to study the implications of several business practices of credit card networks. The
results and implications of these economic models along with future research topics are discussed

AUSUBEL, LAWRENCE M

The bank credit card market, containing 4,000 firms and lacking regulatory barriers, casually appears
to be a hospitable environment for the model of perfect competition. Nevertheless, this article reports
that credit card interest rates have been exceptionally sticky relative to the cost of funds. Moreover,
major credit card issuers have persistently earned from three to five times the ordinary rate of return
in banking during the periods 1983-88. The failure of the competitive model appears to be partly
attributable to consumers making credit card choices without taking account of the very high
probability that they will pay interest on their outstanding balances. Copyright 1991 by American
Economic Association

MARTHA SOLT 
Government of the United States of America - Division of Research and Statistics
Since the 1980s, Visa U.S.A. (Visa) and Master-Card International (MasterCard), the bank-
controlled credit card associations that together account for approximately 70 percent of today's
credit card market, have been able to control the use of and access to their networks to the advantage
of their bank members. Recently, however, the credit card industry has been changing: some
merchants are now large enough to exert their own leverage, legal defeats have impeded the ability
of credit card associations to control the market, and some participants have developed new

38
arrangements and alliances that may be a prelude to further changes in the industry. This article
surveys recent developments in an industry that is facing new competitive dynamics. 

The article begins by describing the formation of the payment card industry and then its structure.
The article continues by explaining the functioning of credit card networks: the various kinds of
network models, and the significance of interchange fees in the most complex model. Next discussed
are recent industry-altering litigation involving Visa and MasterCard, and significant aftereffects of
the litigation. The article concludes by noting the main challenges facing the industry today.

Underbanked and Unbanked Consumers in the U.S. provides market size, industry and product
revenue forecasts and analyses the legislative and regulatory challenges driving the growth of
alternative financial services (AFS). Increasingly, these products are seen as a viable alternative to
banks by the 26% of U.S. households that are underbanked or unbanked.

FELIX ACHOUTAKANG; CLAUDINE TENG-HUI;[2008]

 Banking is topic, practice, business or profession almost as old as the very existence of man, but
literarily it can be rooted deep back the days of the Renaissance (by the Florentine Bankers). It has
sprouted from the very primitive Stone-age banking, through the Victorian-age to the technology-
driven Google-age banking, encompassing automatic teller machines (ATMs), credit and debit cards,
correspondent and internet banking

KER STETTER, JIM. 

Ker Stetter explains that SET was created by Visa and Master Card to provide a secure method for
performing credit card transactions over the Internet. The goal of SET is to create a feeling of trust
among the public in order to increase the purchases of goods and services over the Internet.
However, Ker Stetter points out that this sense of trust could be misleading to many people. SET can
only protect the security of the transmission of encrypted credit card information. SET cannot
guarantee that the merchant’s web site is secure. It is up to the merchant’s web administrator to
maintain web site security to block hackers

39
OBJECTIVES OF THE STUDY

 To study the strategies adopted by HDFC Bank for telemarketing via credit cards
 To study the types of telemarketing used by HDFC bank.
 To study the method of approach a client’s/ customer through telemarketing.
 To study the risk or problem associated to telemarketing.

RESEARCH METHODOLOGY

It describes the data collection method, the sampling plan, the tools of investigation, planning and
testing of questionnaire and the limitations of the study. The study requires the data to be collected
from two different sources i.e. the primary source and the secondary source. The primary data is
collected with the help of structured questioners which is being modified and reliable and the
secondary data through the various journals, newspapers and websites.

Data Source:

a) Primary Data: Primary data was collected by means of questionnaire.

b) Secondary data: Secondary data collected by referring to various books, newspapers,
magazines, journals and internet (details in bibliography)

Research Design

A research design is the set of methods and procedures used in collecting and analysing
measures of the variables specified in the problem research.
Research design is defined as a framework of methods and techniques chosen by a researcher
to combine various components of research in a reasonably logical manner so that the
research problem is efficiently handled. It provides insights about “how” to conduct research
using a particular methodology. Every researcher has a list of research questions which need
to be assessed – this can be done with research design.

40
TYPES OF STUDY:

Descriptive method 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

SAMPLE TECHNIQUE/TOOLS:

Convenience sampling is used for conducting this study

ABOUT THE INTERNSHIP TRAINING

Internship training is a class held at organization to provide an enhanced understanding of outside

working environment; it describes the experience and benefits during internship period. This contains
an overview of internship training activities, tasks and projects that had been worked during
internship training period.

From September for following 3days they trained us, in that day they gave us a brief introduction
about company, what strategies they are using, and about business planning, after that they assigned
us the works about what should to be done.

41
On 4th day –they thought us about how to interact with customers and how to approach about credit
cards. Daily we were given some tasks to complete within that day. Our target was about daily 20
persons to complete the task.

Then we work on reviews of the bank and there was the strategy thought to us of which how to talk
with the customers. Then we made a call of 750 persons in a month

Planning skill

At work we should plan our day to day tasks. Can use well laid-out plans as a tool to influence other,
inspiring confidence, and making it earlier to communicate about the problems/trouble.

Problem solving skill

Abilities are clearly needed for working on team project but they are also necessary to deal with
unfordable issues needing immediate attention on a day to day basis and for dealing with other
people and their behaviour.

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.

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.

42
TABLE 4.1: RESPONSE OF THE GENDER

Gender No of respondents Percentage

male 300 68

female 140 32

total 440 100

Gender
male female

32
Percentage
68

140
No of respondents
300

INTERPRETATION:

43
This chart shows that the respondents of male is higher compared to female. Male respondents
percentage is 68% and female percentage is 32%.

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

no of respondents
21-35 36- 50 51-65

23%
32%

45%

44
INTERPRETATION:

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

Response No of respondents Percentage

Lawyer 72 16
Architect 68 15
Teacher 42 9
Doctor 56 14
Builder 89 20
Accountant 38 9
Engineer 40 9
Manager 35 8
TOTAL 72 16
TABLE 4.3: RESPONSE REGARDING OCCUPATION

No of respondents

Lawyer
8% 16% Architect
9% Teacher
9% Doctor
15% Builder
Accountat
20% 10% Engineer
13% Manager

INTERPRETATION

From the pie chart, majority of the respondents occupation is builder.

45
TABLE 4.4: RESPONSE FOR WHICH BANK THEY ARE USING FOR THE SERVICES.

RESPONSE NO OF RESPONDENTS PERCENTAGE

HDFC Bank 125 28
ICICI Bank 86 20
City Bank 70 16
SBI Bank 89 20
standard chartered 70 16
total 440 100

NO OF RESPONDENTS

16% HDFC Bank

28%
ICICI Bank
City Bank
20% SBI Bank
standard chartered
20%
16%

INTERPRETATION

46
From the above pie chart, the respondents are more using the credit cards in HDFC Bank. 28% of the
respondents are using in HDFC Bank, 20% of the respondents are using SBI Bank.20% of the
respondents are using the services in ICICI Bank and 16% of the respondents are using the credit
cards in city bank and standard chartered.

TABLE 4.5: HOW LONG THE RESPONDENTS ARE PART OF THE HDFC BANK

RESPONSE NO OF RESPONDENTS PERCENTAGE

Less than 6 months 40 9

Less than 1 year 100 23

Less than 2 year 150 34

More than 2 year 150 34

Total 440 100

Chart Title
no of respondents percentage

34
More than 2 year
150

34
Less than 2 year
150

23
Less than 1 year
100

9
Less than 6 months
40

47
INTERPRETATION

From the above bar graphs respondents are part of HDFC Bank are more for less than 2 years and
more than 2 years.34% respondents are part of HDFC bank to less than 2 year and more than 2 year,
23% of the respondents are part of HDFC Bank to less than 1 year and 9% of the respondents are part
of HDFC Bank to less than 6 months.

TABLE 4.6: THE RESPONDENTS OF WHICH HOW MANY ARE AWARE OF THE
DIFFERENT SERVICES OFFERED BY HDFC BANK.

RESPONSE NO OF RESPONSE PERCENTAGE

yes 390 89

no 50 11

total 440 100

diff erent services

yes no
390

89
50

11

NO OF RESP ONSE P ER C ENTAG E

INTERPRETATION

From the above bar graph it is clear that majority of the respondents are aware of the products and
services offered by HDFC Bank i.e., 89% of the respondents are aware of services offered by HDFC
Bank. 11% of the respondents are not aware of the services offered by HDFC Bank.

48
TABLE 4.7: RESPONDENTS OF WHICH CUSTOMERS ARE FACING THE PROBLEM
REGARDING THE BANK OR NOT

particulars no of respondents Percentage

Timeliness 249 57

Customer relationship 100 23

Infrastructure 91 21

Others 0 0

no of respondents

21% Timeliness
Customer relationship
Infrastructure
Others
57%
23%

INTERPRETATION

49
From the above pie chart, majority of the respondents are facing the problems with HDFC Bank.
57% of the respondents are facing the problems with timeliness, 23% of the respondents are facing
the problems with customer relationship and 21% of the respondents are facing the problems with
infrastructure.

TABLE 4.8: RESPONDENTS OF HOW MUCH RATE THE HDFC BANK IN

MAINTAINING GOOD RELATIONSHIP.

Particulars No of respondents Percentage

Good 170 39

Average 250 57

Poor 20 4

Total 440 100

RATE
No of respondents Percentage
250
170

57
39

20

Good Average Poor

INTERPRETATION

50
From the above bar chart, majority of the respondents gave average rate for maintaining good
relationship in HDFC Bank. 57% of the respondents gave average rate for maintaining good
relationship, 39% of the respondents gave Good rate for maintaining good relationship and 4% of the
respondents gave Poor rate for maintaining good relationship

FINDINGS

 Majority of the customers gender are male i.e.300 customers.

 Majority of the 200 customers age group is lie between 36-50.
 Majority of the customers are satisfied by using the services in HDFC Bank only.
 Majority of the customers are part of HDFC Bank for a period of less than 2 years and more
than 2 years.
 Majority of the customers are aware of the services offered by HDFC Bank.
 Majority of the customers are facing the problems with timeliness.
 Majority of the customers gave average rate for maintaining good relationship in HDFC
Bank.

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SUGGESTIONS AND RECOMMENDATIONS

The environment of the bank can be made more customers friendly and the working of the

bank should be more organized and efficient by training the employees of the bank.

2. Improving customer care facilities by providing 24 hours banking facilities more effective.

3. More number of CURRENT ACCOUNTS With different features are looked forward from

public.

4. Proper and general insturuction about the maintenance and working of current account

and its benefits should be made clearer.

5. The banking hours should be more customers friendly it should close little later in the

evening.

6. The banking process needs to be more systematic so that the transaction time can be

reduced.

7. There is a mixed response when it comes to transaction time. A certain section or

respondents seem to be satisfied but a substantial number of customers are looking for

faster transaction time.

8. Special schemes should be provided for smaller retail shops as well new package of

offers and discounts should be provided for high network people and senior citizens .

52
 LIMITATIONS

Though every effort was made to make the report authentic in every sense, yet there are few factors
which might have their influence on the final report.

1. There was time shortage. Time provided to us was very short which make it difficult for
us to conduct survey at wider range.
2. Sometimes respondents did not respond well to all the questions in the questionnaire.
3. Low cooperation from the bank executives make to struggle more, due to which
We were forced to restrict our sample size to 80.
4. Some business might have occurred in analysis. Because of lack of expert knowledge.
5. Biasness in views of respondents can’t be ruled out.
6. Resistance to change sometimes affects view of respondents.

CONCLUSIONS:

At the end I would like to conclude that the Indian banking market is growing at an astonishing rate,
with assets expected to reach US$ 1 trillion by 2021. HDFC bank had a network of 4014 branches
and 11766 automated teller machines in 2464 cities in India.

Banking is also now being regarded as a versatile financial planning tool. Research indicates that
Indians have four basic financial needs during their life asset accumulation (such as buying a house
or car), protecting their family, securing their children’s education, and provision for their retirement.
India being a country having a huge population of around one billion people with only 32% of the
banking population in India possessing banking the country has a vast potential, which has been left
untapped till now. Banking Company Banking advisors are the lifeline and a very huge asset so each
company try to recruit and select a potential force of Banking advisors because this is the advisors
who generate maximum business for the Bank. Banking advisors provide a very strong support to the
Bank and do all possible efforts to generate huge amount of profit to the company and for him.

53
BIBLIOGRAPHY :

1. Essays, UK (November 2018), Sales of credit cards: Telemarketing. Retrieved from

https://www.ukessays.com/essays/marketing/sales-of-credit-cards-through-telemarketing-
marketing-essay,php?vref=1

2. 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

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ANNEXURE:

1.Gender of Credit card user.

 Male  Female
2. Age group of credit card users.
 15 to 35  35 to 50
 50 to 60  Above 60
3. Your annual Income?
 >1,00,000  1,00,000 to 2,00,000
 2,00,000 to 3,00,000  < 3,00,000

4. Which area they belong?

 Rural urban
5. Occupation of credit card user?
 Lawyer  Doctor  Engineer
 Architect  Builder  Consultant
 Exporter  Importer  Student

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  Others, Please specify______________________________________

6. Which Bank Credit card you using currently?

 AXIS Bank  SBI Bank
 ICICI Bank  HDFC Bank

7. How long have been you using the Credit card?

 Less than 6 months  1to 2 years
 2 to 4 years  More than 4 years

8. How often do you use Credit card services in a day?

............... Times

9. In which bank you are operating your savings account?

__________________________________________________________

10. In which bank you are operating your current account?

__________________________________________________________

11. How much minimum balance or average quarterly balance you have to maintain in

your account?

Savings Account _________________

Current Account _________________

12. Why has you chosen HDFC bank?

 Past Relationship  Brand name

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  Near to home/office  Others, Please specify_______

13. Are you satisfied with the services providing by your bank?

Satisfied Indifferent Dissatisfied V. Dissatisfied

V. Satisfied

14. Are you Satisfied with Bank’s Services?

 Yes  No
 Fully  Partially

15. How would you rate the services of Bank?

1. Good 2. Fair
3. Poor 4. Very poor

57