A

Project Report

(Project Semester 1June-15July 2019)

Study of Customer Perception Towards Credit Card

Submitted by

Vaibhav Jindal
Student ID: 17BBAN034

Logo of Company

Under the Guidance of

Faculty Internship Guide: Industry Guide:

Name: Dr. Monu Kuruvilla Name: Aashish Kachhara
Designation: Assistant Professor Designation: R.H.

Faculty of Management

JECRC UNIVERSITY, JAIPUR

3 June To 18 July, 2019

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2
 ACKNOWLEDGEMENT

I would like to thank ‘IndusInd Bank’ Jaipur for providing me an opportunity to work on my
project. I would like to thank Mr. Aashish Kachhara for providing me continuous guidance and
support for his valuable inputs during the course of my project and helped me a lot by providing
required information as and when I needed it.

I am thankful to my faculty guide for their support and finally I would like to thank the entire
faculty members of JECRC, Jaipur for equipping me to carry out this study.

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 PREFACE

These days institutes have started giving more stress on management training, as it is the interface of a
management student with the culture of corporate world and also it gives the first-hand experience to use the
knowledge acquired by then in the corporate world.

IndusInd Bank gave me the opportunity to do a project on ‘customer perception towards credit card’ which
was basically about knowing what a general public think of the credit card facility being offered to them by
banks.

The project’s main objective was to study about how customer perceive the credit facility given to them.

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 Declaration

I hereby declare that the project work entitled “Customer Perception Towards Credit Card” is an authentic
record of my own work carried out at “IndusInd Bank” as requirements of 45 days project semester for the
award of degree of BBA., JECRC University, under the guidance of “Mr. Aashish Kachhara” and “Dr. Monu
Kuruvilla”, during 03 June 2019 to 18 July 2019.

Signature of student :
Name of Student : Vaibhav Jindal
Student ID : 17BBAN034

Date: ___________________

Certified that the above statement made by the student is correct to the best of our knowledge

Faculty Guide Internship Guide

Name: Dr. Monu Kuruvilla Name: Aashish Kachhara
Designation: Assistant Professor Designation: R.H.

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 Executive Summary

The main objective of my doing project in Banking Industry was only because of a broad scope and continuous
growth of sector. The methodology used in this project are primary data (survey) and secondary data (journals,
magazines & annual reports). The most relevant method of data collection was Primary data and sample size
was 107. The Descriptive research method was used to obtain the relevant result and it is applicable only to
Jaipur.

Based on analysis few findings, conclusion with suggestions have been obtained and they are: -

• Mostly people using their services more than 2 years.

• Many bank users prefer credit card.
• Many people face problem in interest rate.
• According to service IndusInd found better.
• Mostly people are satisfied with their Credit limit.
• Mostly people want free credit cards from their bank.
• Mostly people are satisfied their customer care service provider.

By working in such a successful organization,I have come to know lot about this organization’s functioning.
➢ Credit Cards should be available on date.
➢ There should be more number of Branches & ATM.

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 INDEX

S. No. Component Page No.

Internship Certificate 2
A

Declaration 3
B

Acknowledgement 4
C

Preface 5
D

Executive Summary 6
E

Industry overview 9-22

Chapter 1
• Definition of bank
• Types of banks
• Reserve bank of India
• Role of RBI in controlling banks
• How to open a bank in India
Chapter 2 Company overview 23-40
• About the IndusInd bank
• Promoters
• Stakeholder
• IndusInd bank products and services

Methodology 41-43
Chapter 3
• Statement of problem
• Scope of study
• Objective of the study
• Purpose of the study
• Research methodology
• Sampling methodology
• Limitations of the study
• Data analysis

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 Questionnaire
Chapter 4 44-46

Chapter 5 Data interpretation and analysis 47-57

F Conclusion 58-59

G Finding 60-61

H Suggestion and recommendation 62-63

I Bibliography 64-65

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Chapter 1: Industry Overview

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1.1 Definition of Bank:

Banking means “Accepting deposits for the purpose of lending or investments of deposits of money from the
public repayable on demand or otherwise and withdrawal by cheque, draft or otherwise.”

1.2 Origin of the word “Bank”:

The origin of the word bank is shrouded in mystery. According to one view point banking is derived from
German word “branck” which means heap or mound. In England the issue of paper money by government
was referred to as a raising a bank.

1.3 What is banking?

In simple words, Banking can be defined as the business activity of accepting and safeguarding money
owned by other individuals and entities, and then lending out this money in order to earn a profit. However,
with the passage of time, the activities covered by banking business have widened and now various other
services are also offered by banks. The banking services these days include issuance of debit and credit
cards, providing safe custody of valuable items, lockers, ATM services and online transfer of funds across
the country / world.

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1.4 Types of Banks:

• ORGANISED AND UNORGANISED BANKING:

That part of Indian banking system which does not fall under the control of our central bank i.e. Reserve
Bank of India is called unorganized bank.
Example: Indigenous Banks.
Whereas, organized banking system refers to that part of the Indian banking system which is under the
influence and control of the Reserve Bank of India.
Example: Commercial Banks, Industrial Banks.
• SCHEDULED AND NON-SCHEDULED BANKS:
Under the Reserve Bank of India Act, 1939, banks were classified as: -
scheduled banks or non-scheduled banks.
The scheduled banks are those which are entered in the second schedule of RBI Act, 1939. Scheduled
banks are those banks which have a paid-up capital and reserves of aggregate value of not less than Rs
200 crores and which satisfy RBI.
On the other hand, non-schedule banks are those banks whose total paid up capital is less than Rs 200
crores and RBI has no specific control over these banks. These banks are not included in the second
schedule of RBI Act, 1934.

• INDIGENOUS BANKERS:
From very ancient day’s indigenous banking as different from the modern western banking has been
organized in the form of family or individual business. They have been called by various names in
different parts of the country as Shroffs, Sethus , Sahukars, Mahajans, Chettis and so on. They vary in
their size from petty money lenders substantial shroffs.

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• CENTRAL BANK:

In each country there exists central bank which controls a country’s money supply and monetary policy.
It acts as a bank to other banks, and a lender of last resort. India Reserve Bank of India (RBI) is the
Central Bank.

• COMMERCIAL BANK:
A bank is dealing with general public, accepting deposits from making loans to large numbers of
households and firms. Through the process of accepting deposits and lending, commercial banks create
credit in the economy. Some examples (commercial banks in India are State Bank India (SBI), Punjab
National Bank (PNB) etc.

• DEVELOPMENT BANKS:
Development banks are specialized financial institutions. To promote economic development,
development banks provide medium term and long-term loans the entrepreneurs at relatively low rate of
interest rates. Some examples of development banks in India are Industrial Development Bank of India
(IDBI), Industrial Financial Corporation of India (IFCI), Industrial Credit and Investment Corporation of
India (ICICI) etc.

• CO-OPERATIVE BANKS:
Co-operative banks are organized under the provisions of the Co- operative society’s law of the state.
These banks were originally set up in India to provide credit to the farmers at cheaper rates. However, the
co-operative banks function also in the urban sectors.

• LAND MORTGAGE BANKS:

The primary objective of these banks is to provide long-term loans to farmers at low rates in matters
related to land, the land mortgage banks are also known as the Land Development Banks.

• REGIONAL RURAL BANKS:

Regional Rural Banks (RRBs) are established in the rural areas to meet the needs of the weaker section of
the rural population.

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• NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT (NABARD):
This bank was established in 1982 in India in view of providing the rural credit to the farmers. Actually,
it is an apex institution which coordinates the functioning of different financial institutions working in the
field of rural credit. NABARD has been making continuous efforts through its micro-finance programme
or improving the access of the rural poor to formal institutional credit. The self-help group (SHG) – Bank
linkage programme was introduced in 1992 as a mechanism to provide financial services to the rural poor
people on a sustainable basis.

• EXCHANGE BANKS:
These banks are engaged in buying and selling foreign exchange. These banks help the growth of
international trade.

• EXIM BANK:
It is popularly known as ‘Export Import Bank’. Such banks provide long term financial assistance to the
exporters and importers.

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1.5 Reserve Bank of India:

The Reserve Bank of India (RBI) is India's central banking institution, which controls the monetary
policy of the Indian rupee. It commenced its operations on 1 April 1935 in accordance with the Reserve Bank
of India Act, 1934.The original share capital was divided into shares of 100 each fully paid, which were
initially owned entirely by private shareholders. Following India's independence on 15 August 1947, the RBI
was nationalized on 1 January 1949.

The RBI plays an important part in the Development Strategy of the Government of India. It is a member
bank of the Asian Clearing Union. The general superintendence and direction of the RBI is entrusted with the
21-member central board of directors: the governor; 4 deputy governors; 2 finance ministry representatives
(usually the Economic Affairs Secretary and the Financial Services Secretary); 10 government-nominated
directors to represent important elements of India's economy; and 4 directors to represent local boards
headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards consists of 5
members who represent regional interests, the interests of co-operative and indigenous banks.

The central bank was an independent apex monetary authority which regulates banks and provides important
financial services like storing of foreign exchange reserves, control of inflation, monetary policy report till
2016 August. A central bank is known by different names in different countries. The functions of a central
bank vary from country to country and are autonomous or quasi-autonomous body and perform or through
another agency vital monetary functions in the country. A central bank is a vital financial apex institution of
an economy and the key objects of central banks may differ from country to country still they perform
activities and functions with the goal of maintaining economic stability and growth of an economy.

1.6 Role of RBI in controlling Banks:

The RBI has different functions in different roles.

• RBI is the Regulator of Financial System
The RBI regulates the Indian banking and financial system by issuing broad guidelines and instructions. The
objectives of these regulations include:
➢ Controlling money supply in the system,
➢ Monitoring different key indicators like GDP and inflation,
➢ Maintaining people’s confidence in the banking and financial system, and
➢ Providing different tools for customers’ help, such as acting as the “Banking Ombudsman.”
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• RBI is the Issuer of Monetary Policy
The RBI formulates monetary policy twice a year. It reviews the policy every quarter as well. The main
objectives of monitoring monetary policy are:
➢ Inflation control
➢ Control on bank credit
➢ Interest rate control
The tools used for implementation of the objectives of monetary policy are:
➢ Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR),
➢ Open market operations,
➢ Different Rates such as repo rate, reverse repo rate, and bank rate.
• RBI is the Issuer of Currency
Section 22 of the RBI Act gives authority to the RBI to issue currency notes. The RBI also takes action to
control circulation of fake currency.
• RBI is the Controller and Supervisor of Banking Systems
The RBI has been assigned the role of controlling and supervising the bank system in India. The RBI is
responsible for controlling the overall operations of all banks in India. These banks may be:
➢ Public sector banks
➢ Private sector banks
➢ Foreign banks
➢ Co-operative banks, or
➢ Regional rural banks

The control and supervisory roles of the Reserve Bank of India is done through the following:

• Issue of License: Under the Banking Regulation Act 1949, the RBI has been given powers to grant
licenses to commence new banking operations. The RBI also grants licenses to open new branches
for existing banks. Under the licensing policy, the RBI provides banking services in areas that do not
have this facility.
• Prudential Norms: The RBI issues guidelines for credit control and management. The RBI is a
member of the Banking Committee on Banking Supervision (BCBS). As such, they are responsible
for implementation of international standards of capital adequacy norms and asset classification.
• Corporate Governance: The RBI has power to control the appointment of the chairman and
directors of banks in India. The RBI has powers to appoint additional directors in banks as well.
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• KYC Norms: To curb money laundering and prevent the use of the banking system for financial
crimes, The RBI has “Know Your Customer” guidelines. Every bank has to ensure KYC norms are
applied before allowing someone to open an account.
• Transparency Norms: This means that every bank has to disclose their charges for providing
services and customers have the right to know these charges.
• Risk Management: The RBI provides guidelines to banks for taking the steps that are necessary to
mitigate risk. They do this through risk management in Basel norms.
• Audit and Inspection: The procedure of audit and inspection is controlled by the RBI through off-
site and on-site monitoring system. On-site inspection is done by the RBI on the basis of
“CAMELS”. Capital adequacy; Asset quality; Management; Earning; Liquidity; System and control.
• Foreign Exchange Control: The RBI plays a crucial role in foreign exchange transactions. It does
due diligence on every foreign transaction, including the inflow and outflow of foreign exchange. It
takes steps to stop the fall in value of the Indian Rupee. The RBI also takes necessary steps to
control the current account deficit. They also give support to promote export and the RBI provides a
variety of options for NRIs.
• Development: Being the banker of the Government of India, the RBI is responsible for
implementation of the government’s policies related to agriculture and rural development. The RBI
also ensures the flow of credit to other priority sectors as well. Section 54 of the RBI gives stress on
giving specialized support for rural development. Priority sector lending is also in key focus area of
the RBI.

Apart from the above, the RBI publishes periodical review and data related to banking. The RBI plays a
very important role in every aspect related to banking and finance. Finally, the control of NBFCs and
others in the financial world is also assigned with RBI.

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1.7 How to open a bank in India:

First, register your company under Companies Act 2013

Then one needs to get license from RBI.

Now, the Company has to have some pre-conditions -

1. Must have a minimum of 200 crores of Paid-Up Capital.

2. Then, to these 300 crores of Authorized Capital needs to be added, once the company starts its
operations.

3. This is either brought by shareholders' equity or by issuing bonds/debentures etc.

4. Once the Capital is in place, the bank can start its operations. It can take in Deposits or give
out Loans.

5. The Deposits can be either Demand Deposits or Time Deposits. We should realize that these
deposits are Liabilities to the banks, because they need to be paid back to the customer with
interest.

6. The Loans advanced to customers are its Assets, as they get back their money and interest too.

7. Now, once they start getting in Deposits (NDTL) (Net Demand and Time Liabilities), a part of it
should be stored in an account with the Reserve Bank of India. This is called Cash Reserve Ratio.
Right now, it is 4% of the NDTL.

8. And for the bank's own safety, to ensure liquidity of the bank, it should also store a part of its
deposits in safe places, like cash, government-securities or gold. This is called Statutory Liquidity
Ratio. Right now, it is 21.25% of the NDTL.

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 9. Then, it can start Lending.

10. Now, according to Basel-3 Norms, it should have a minimum Capital Adequacy Ratio, according
to its Risk-weighted Assets. This is around 10%. Depends on various factors like Tier-1, Tier-2
Capital or 0NBFC etc.

11. After this, the Bank should ensure that at least 25% of its branches are in non-urban areas.

12. Also, the banks should ensure that at least 40% of its total Lending goes to the Priority Sector
(Agriculture, education, SHGs etc.). This is called PSL.

If all this is done, then it can be rightly called a Scheduled Commercial Bank. It would be regulated
under the Banking Regulations Act, 1949and the Reserve Bank of India Act, 1934.

2011 – 2012

Awarded as the “Best Bank Mid-sized” in Businessworld–PwC Best Banks Survey 2011.

Awarded as the “Best Mid-Sized Bank Bank” in Business Today –KPMG Best Banks Survey 2011.

Awarded M.IT.R- 50 Marketing & IT Recognition Program amongst top 50 brands –organised by Paul Writer in
association with IBM.

Awarded the CII Environment Best Practice Award 2012 for the “Most Innovative Environmental Project”.

Awarded in the “Business Enterprise Services” category for running ATMs on solar power – Organised by Panasonic
Green Globe Foundation.

Awarded the status of ‘Star Brand 2011 ICMR Star Brands of India Survey.

Awarded the “Best Bank in New Generation Category ” by the STATE FORUM OF BANKERS CLUB KERALA.

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 • Last 17 years of history

2019 – 2018

Most Improved Bank Performance of the Year’ awarded by Bloomberg UTV Financial
Leadership Awards 2011.

Winner of ‘Best Use of technology in training and e-Learning Initiatives’ awarded by IBA
Banking Technology Awards 2010.

Runners up of ‘Best Risk Management’ Initiatives awarded by IBA Banking Technology

Awards 2010.

Silver winner of ‘Excellence in Business Process Management and Work flow in Australia and
Asia Region’ Global awards by Workflow Management Coalition and BPM.com, USA.

Talisma User awards for ‘Enterprise Adoption’ of CRM– 2010.

Ranked 2nd in the fastest growing Bank (mid-size) category – published in “India’s Best Banks”
report by Business World and PWC.

‘Excellence Award’ as the 2nd best New Generation Bank in Kerala for the second consecutive
year awarded by the State Forum of Bankers Clubs, Kerala.

2018 – 2017

Awarded the "Best Priority Sector Bank" amongst the private sector banks by Duns & Bradstreet.

Tier II Issue – raised Rs. 4200 million in March 2010.

Awarded the ‘Technology Bank of the Year-2009’ from IBA.

“Excellence Award’, the 2nd best new generation bank in Kerala by the State Forum of Bankers’
Clubs, Kerala.

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Recognised for 'Best Performance in Credit Quality' by financial Express.

Received the prestigious ISO 27001 certification for IT operations.

2017 – 2016

QIP Issue – raised Rs. 4803 million in August 2009

Regulatory clearance for 113 new branches are in place

(as of June 30,2010)

Appointed as Clearing & Settlement Bank at 6 major Tea Auction centres

(includes 2 which were added in 2010)

Tied up with BONY Mellon for on line remittances from United States to India

2016 – 2015

GDR Issue - raised Rs 2,222 million; Ratings: ICRA Highest A1+ - CDs, Crisil P1+: CDs, FDs

New Launch/Rollout: Mid-market Investment Bank, 3rd Party Distribution Platform,

Warehouse Receipt Finance

Awards/Recognition: The Smart Workplace - Economic Times, Best CSR Practice Company –
BSE/NASSCOM

Extended microfinance to 300,000+ women by partnering leading MFIs like SKS Mircofinance

Extensive IT initiatives

Became clearing/settlement bank for NSE currency futures exchange

New management team headed by Romesh Sobti inducted from ABN AMRO Bank NV

2015 – 2014

GDR - raised Rs 1,460 million, tied up with Cholamandalam MS for bancassurance

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Signed an agreement with National Multi Commodity Exchange Ltd as clearing banker

2014 – 2013

Tied-up with Religare Securities for offering 3-in-1 account covering banking, depository &
securities trading

Tied up with Aviva Life Insurance for bank assurance.

2013 – 2012

Signed an agreement with NCDEX as clearing banker

Opened its second representative office in London

2012 – 2011

Ashok Leyland Finance Ltd, a leading NBFC merged with the Bank (total 115 branches),
opened representative office in Dubai

2011 – 2010

IndusInd Enterprises & Finance Ltd, a NBFC & one of the promoters of the Bank amalgamated
with the Bank

Increased branch network to 53

2010– 2009

Tie ups with exchange houses in Middle East and banks in the United States

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2009 – 2008

IPO - raised Rs 1,800 million, became clearing bank to First Commodities Clearing
Corporation of India

2000 – Became clearing/settlement bank for BSE/NSE

Raised Rs 1,000 million through preferential issue of shares

Incorporated in 1994; Promoted by a group of Non Resident Indians. Started

operations with Rs 1000 Mn Capital

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Chapter 2: Company Overview

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2.1 About IndusInd Bank

IndusInd Bank derives its name and inspiration from the Indus Valley civilization a culture describes by
National Geographic as ‘one of the greatest of the ancient world ‘combining a spirit of innovation with sound
business and trade practices.

Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja Group,
conceived the vision of IndusInd Bank- the first of the new-generation private banks in India –and through
collective contributions from the NRI community towards India’s Economy and social development.

The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, who was the country’s Finance
Minister, started with a capital base of Rs. 1,000 million (USD 32 million at the prevailing exchange rate), of
which Rs. 600 million was raised through private placement from Indian Residents while the balance Rs. 400
million was contributed by Non-Resident Indians.

2.2 VISION:

IndusInd Bank will be:

➢ A relevant business and banking partner to our clients.

➢ Customers Responsive, striving at all time to collaborate with clients in providing solutions for their
banking needs.
➢ A forerunner in the market place in terms of profitability, productivity and efficiency.
➢ Engaged with all stakeholders and will deliver sustainable and complaint return.

2.3 MISSION:

Consistently add value to the stakeholders and emerge as the ‘best-in-class’ in chosen parameters amongst the
comity of banks, by doubling the profits, clients and branches within the next 3 years.

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2.4 PROMOTERS:
Hinduja Group is the promoter of IndusInd Bank.
The Hinduja Group is an Indian Conglomerate company headquartered in London, United Kingdom. They
are involved in a wide range of activities including Foundries, import export, trading, motor vehicles,
banking, call centers and healthcare.
The company was founded in 1914 by Parmanand Deepchandh Hinduja.
Hinduja Group Companies are:
• Ashok Leyland;
• Hinduja Foundries Ltd.;
• IndusInd Bank;
• Gulf Oil Corporation Ltd.;
• KPB Hinduja College of Commerce etc.

2.5 STAKEHOLDERS:
• Customers:
The bank’s Customer base consists of retail banking customers as well as corporate banking customers.
The bank is committed to meeting their expectations and engaging with them in a result oriented and
transparent manner.
• Employees:
IndusInd Bank has 23060 full time employees working out of branches and offices. The Bank aims to
provide its employees a safe and diverse work environment with opportunities for growth and
development.
• Shareholders and Investors:
Our shareholders and investors share our vision for the bank and we are committed to building a
sustainable business and creating long-term value.
• Senior Leadership:
Senior leadership at the bank consists of the Board of Directors and the Core Executive Team (CET).
Together, they drive the business and strategic decisions of the bank.

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• Suppliers and Service Provider:
The bank is committed to uploading sustainable procurement practices and ensuring that suppliers and
vendors are aware of and adhere to compliance standards as required.

• Regulatory Authorities:
The Bank engages with a number of financial regulatory authorities (RBI and SEBI) and is complaint
with all relevant regulations and laws.
• Society and NGOs:
The bank engages with the broader community through its financial products and services. They also
engage with civil society groups and NGOs through CSR activities.

2.6 CAPITAL STRUCTURE: (Rs in crores)

March 2019

Equity Share Capital 602.09

Reserves 25746.55

Revaluation Reserve 325.55

NET WORTH 26674.19

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2.7 INDUSIND BANK PRODUCTS AND SERVICES:

PRODUCTS
AND
SERVICES

Assets Liabilities

Saving Current
Loans Investments Insurances Cards Others Account Account

Bank offers various products in terms of servicing its customers. The bank has tried to tab the growth of the
retails sectors and has come with various products. Some of them are:

• Liabilities:
➢ Saving Accounts:
IndusInd Bank offers customers a regular saving account with the host of convenient features and
banking channels to transact through. So, now customers can bank at their convenience, without the
stress of waiting in the queue.
The interest rates offered by IndusInd Bank Saving Account are as follows:
❖ For daily balance up to Rs 1 lakh it is 4%p.a.
❖ For daily balance above Rs 1 lakh and below Rs 10 lakhs it is 5%p.a.
❖ For daily balance above Rs 10 lakhs it is 6%p.a.

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Types of IndusInd Bank Savings Account:
1. Indus Exclusive Savings Account:
It comes with numerous lifestyle privileges and benefits along with a rewards programme that allows
you to earn reward points with each purchase.
2. Indus Select Saving Account:
It is a premium savings account that offers Air Accident Insurance, Fire and Theft Insurance and other
premium benefits.
3. Indus Maxima Savings accounts:
It offers benefits such as unlimited withdrawal at ATMs of other banks, free debit cards for add-on
accounts, free transfer of funds through NEFT $ RTGS etc.
4. Indus Privilege Savings Accounts:
It is a savings account which can also be opened by minors and offers facilities such as low minimum
balance requirement, free internet & Mobile Banking, round the year banking (at selected branches) etc.

There are some more types of saving account schemes offered by IndusInd bank which are Indus
Privilege Active, Indus Diva Savings Account, Indus Senior Saving Account, Indus 3-in-1, and Indus
Young Saver, Indus Classic Savings account, Indus Easy Savings account and Indus Small Account.

➢ Current Account:
In today’s fast-paced world, business regularly requires to receive and send funds to various cities in the
country. IndusInd Bank Regular Current Account gives you the power of inter-city banking to more than
200 cities.
The current account of IndusInd Bank is designed to meet the requirement of regular businesses,
corporate firms, importers, and exporters. Some of the current accounts of IndusInd Bank are:
❖ Forex Current Account: It allows transaction in 7 different currencies and is designed to meet
the requirements of international business organizations. Through Indus EXIM and Indus Dollar
One accounts, importers and exporters can avail inexpensive trade services.
❖ Indus Edge Current Account: The account is designed for large traders, wholesalers, and
manufacturers and it comes with high cash deposit limits. Indus Edge has 7 variants which are
listed below:

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 1. Indus Blue
2. Indus Silver
3. Indus Silver Plus
4. Indus Aspire
5. Indus Gold
6. Indus Gold Plus
7. Indus Prestige
❖ Niche Current Accounts: IndusInd offers three different current account products to cater to the
industry specific need of traders. It is as follows:
1. Indus Grain Merchant Flexi
2. Indus Textile Current Account
3. Indus Infotech Current Account
• Assets:
➢ Loans:
Loans facilities like Home Loans, Personal Loans, Gold Loans, and Indus Kisan etc are provided by
IndusInd bank.
IndusInd bank has signed a memorandum of understanding (MoU) with HDFC Ltd for distribution of
home loans.
Under the agreement, IndusInd Bank will use its network of 300 branches to originate and distribute
home loan for HDFC Ltd. For all home loans sourced by the bank, processing, disbursement and
servicing unction will rest with HDFC.
❖ Personal Loan:
IndusInd Bank advance personal loans for a variety of reasons including marriage, renovation,
travel, business etc. they offer attractive interest rates extending from 13.99% to 23.00% which is
payable through EMIs. The interest rate varies based on the income, location and company listing.
Loan amount up to 15 lakhs are available for salaried and self employed individuals with tenure
ranging 12-60 months. As personal loans are unsecured loans, they have simpler documentation
with no collateral or need for a guarantor. IndusInd bank offers pre-payment of the loan post 12
months of EMI for salaried and 6 months for self employed with minimal pre closure charges.
❖ Gold Loan:
A gold loan is a short-term loan give to you against the security of gold ornaments. It helps you
raise funds by depositing your gold with the bank instead of letting it lie idle in a locker.

29
 Advantage:
1. Easy paperwork: Simple documents like ID proof and address proof are sufficient to avail
gold loans. Unlike unsecured loans, there is no requirement to produce income statements or
credit scores to determine creditworthiness.
2. Quick approval: A loan backed by security is reassuring to bankers, which increases the
chances of your application being approved. Gold is a good security which enables your
request to be approved at the earliest.
3. Low interest rates: ranging between 13-14%, the interest rates charged on gold loan is
markedly less than other unsecured loans.
4. Quick processing time: This is ideal for immediate cash requirements since funds are
disbursed within hours.
5. Raise substantial funds: You may avail up to 60% of the value of your gold ornaments as
loan.
6. Low cost: A nominal processing fee of 1% and the option of pre-payment without any
charges make availing a goad loan a significantly cheaper option.

➢ Investment:
At IndusInd Bank along with deposits and loans, Bank assists to manage finance by providing various
investments options from IndusInd Bank offers to investment in mutual funds, pure gold and Demat
Account etc.
❖ Mutual Fund Overview: In a mutual fund many investors contribute to form a common pool of
money. A mutual fund uses this money that is collected from investors, to buy those assets which
are specifically permitted by its stated investment objective. For example, a growth fund will buy
mainly equity assets- ordinary shares, preference share, warrants etc. An income fund would
mainly buy debt instruments like debentures and bonds. The fund’s assets are owned by the
investors in the same proportion as their contributions bears to the total contributions of all
investors put together. In India, a mutual fund is constituted as a trust and the investor subscribes
to the units of the scheme launched by the fund.

30
 Mutual fund classification:

Mutual Funds

Open-Ended Close-Ended Exchange

Equity Funds Debt Funds Hybrid Funds
Schemes Schemes Traded Funds

1. Equity Funds:
The main objective behind choosing equity funds is to potentially generate high returns while tackling the
inherent high risk. Equity funds are of different types, such as:
a. Index funds- involves equities of companies that form a part of the stock market index
b. Income funds- stocks with very high dividend
c. Sectoral fund- dependent on the sector of a company
d. Diversified funds- includes ELSS and RGESS

2. Open-Ended Schemes:
This type of mutual fund is flexible in allowing investors to enter and exit without any end date. Investors
can simply buy and redeem units on any business day at the prevailing values.

3. Close-Ended Schemes:
Close-ended schemes come with a New Offer Fund (NOF) period after which new investments are not
accepted. The mutual fund is conducted only for a specific time span after which it is closed and the
returns are given to the investors. If an investor wants to exit before the redemption date, he can do so by
selling the units the stock exchange.

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4. Debt Funds:
Debt funds are low-risk-low return mutual funds that invest in government securities, debentures,
corporate bonds and other market instruments. For investors who look for more stable and stress-free
source of returns, debt funds are the best choice. Debt funds can be categorized into different types based
on the investment made. They include money market funds, fixed maturity funds, gilt funds and income
funds.
5. Hybrid Funds:
People who wish to invest in mutual funds that are more stable than equity funds, yet more rewarding
than debt funds, should choose hybrid funds. Based on the balance drawn between equities and debts,
hybrid funds can be divided into three types:
a. Balanced funds involve 65% investment in equities and rest in debt.
b. Monthly income plans involve only 25% to 30% in equities.
c. Asset allocation funds can involve up to 90% of equities based on the market conditions.
There is another type of hybrid fund that involves investing in a combination of equity, debt and gold.
This involves increased expenses to have a smooth management of diversified funds.
6. Exchange Traded Funds:
Exchange traded funds, commonly referred to as ETFs, work similar to stock trading. They can be bought
and sold only in the stock market and have a lower expense ratio than equity funds. ETFs based on gold
(called Gold ETFs) are popular and help to safeguard the gold assets of the investor along with reassuring
the quality of the metal.

❖ Demat Account Overview: Shares are traditionally held in physical or paper form. This method
could lead to loss/theft of certificates, forged/fake certificates, cumbersome and a time consuming
procedure for transfer of shares. Therefore, to eliminate these weaknesses, a new system called
Depository System was introduced in India after the enactment of the Depositories Act 1996.
A depository system is a system, which holds your shares in the form of electronic accounts in the
same way a bank holds your money in a saving account.
Depository system provides the following advantages to an investor:
1. Your shares cannot be lost/stolen or mutilated.
2. You never need to doubt the genuineness of your shares i.e., whether they are forged or fake.
3. Share transactions like transfer, transmission etc. can be affected immediately.

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 ➢ Insurance:
Insurance policies like Health Insurance, General Insurance, life insurance and Card Protection Plans
are provided by the bank.
The bank has tied up with TATA AIA Life Insurance to sell the later’s insurance policies through
the bank’s branches after its arrangement with Aviva Life Insurance ended.
The partners will collaborate to provide a wide range of solution to address protection, savings and
wealth creation needs of IndusInd bank’s customers.

➢ Card:

❖ Debit Card: IndusInd bank provides its customers the option of choosing from a wide range of debit
cards. Each debit card has distinctive features especially designed to suit different types of customer’s
profile.

Debit Cards

Visa Debit MasterCard

Card Debit Card

Platinum International World Debit

Signature Platinum VISA Platinum
Premier Gold VISA Card

Visa Debit Card:

1. Signature Debit Card:
This card offers superior value with its exciting offer, benefits and delightful banking services.
Perks:
a. Earn accelerated Indus Money Points on every transaction done through signature debit card.

33
 b. Complimentary air accident insurance coverage worth Rs. 30 lakhs, personal accident insurance
coverage worth Rs. 2 lakhs, purchase protection insurance worth Rs. 50000 and lost card liability of
up to Rs. 3 lakhs.
2. Platinum Premier Debit Card:
This card is power packed with host of exclusive privileges and discount vouchers which offers a
convenience of shopping, dining and travelling.
Perks:
a. Get higher daily transaction and cash withdrawal limit worth Rs. 2.5lakhs and Rs. 1.25 lakhs,
respectively.
b. Get gift vouchers worth Rs. 2500 from leading brands, 500 reward points, etc. on activating the card.
c. Earn Indus Money Points on every spend on this card.

3. Platinum VISA Debit Card:

The card brings unmatched benefits and luxuries that match up the style and lifestyle need of the
customers.
Perks:
a. Get maximum cash withdrawal limit of worth Rs. 1 lakh per day and maximum spending limit worth
Rs. 2 lakhs per day.
b. Accumulated reward points can be redeemed for cashback, array of branded products or can be
converted into JP miles.
c. Enjoy fuel surcharge waiver for all fuel spends across all fuel stations in India.

4. International Gold VISA Debit Card:

This debit card is tailor made to give more value-added services. Customer can use this card anywhere in
the world and can get huge savings on shopping.
Perks:
a. This card covers the entire gamut of day to day spends. Get periodic discount and cashback offers on
apparels, movie tickets train or bus tickets and much more.
b. Get daily cash withdrawal limit of Rs. 50000 sat ATMs and daily transaction limit of Rs. 1 lakh at
POS terminal and e-commerce website.
c. Avail complementary purchase protection insurance worth Rs. 50000 and lost card liability of Rs. 1
lakh.

34
MasterCard Debit Cards:
1. Platinum Debit card:
This card is designed to give superior value through exciting offers and benefits.
Perks:
a. Get 500 rewards points, 200 bonus points as joining gift on activating the card.
b. Earn 5x reward points on spending over Rs. 20000.
c. Maximum cash withdrawal limit from ATMs is 1.25 lakhs per day and maximum transaction limit at
POS terminals and online merchant websites is 2.5 lakhs per day.
2. World Debit Card:
Enjoy cashless shopping experience. Avail amazing cashbacks and discount offers and earn accelerated
reward points on every transaction you made using this card.
Perks:
a. Get 500 rewards points, 200 bonus points as joining benefits.
b. Get complimentary airport lounge access at selected domestic and international airports. (limited to 2
free visits per quarter)
c. Avail buy one get one movie ticket free when booked from BookMyShow.

Credit Card:

IndusInd bank offers a credit card customer maximum flexibility with higher purchase limits,
rewards redemption program, exciting lifestyle privileges, and exclusive credit cards with no pre-set
spending limits.

35
 CREDIT CARD

Signature Platinum credit Platinum aura Iconic credit Platinum select

credit card card credit card card credit card

Signature Credit Card:

These cards are for those who wish to avail deals and unique privileges on living, dining and traveling
experiences.
Some of the features of this card are:
1. Customer will get 1.5 reward points for every Rs 100 that he/she spends on the card.
2. This card gives access to promotion codes for jet airways and can avail upto100% off on the base
fare of the flight tickets.
3. One can avail exclusive concierge services around the clock, such as: hotel reservation, exclusive
booking, and flight booking and so on.

Platinum Credit Card:

This card is ideal for those who are looking for lifestyle and travel benefits, and higher reward points.
The card offers many features and benefits to cater to your lifestyle related needs. They are:
1. You can earn reward points instantly as soon as you use your card for any transaction.
2. Get Satya Paul vouchers and promotion codes for jets airways as a welcome bonus.
3. Enjoy 2.5% fuel surcharge waiver at all petrol pump across the country.

Platinum Aura Credit Card:

If the person wants a premium credit card that cater to the needs and also offer flexible reward points,
he should opt for this card.
Features:
1. Get lost baggage insurance cover of up to Rs 100000 and access to a travel assist program called
‘Travel Plus’.
2. Enjoy golf benefits such as individual coaching, Green Fees etc.

36
 Iconic Credit Card:
It provides exclusive offers that will cater to every aspect of your lifestyle.
Features:
1. Enjoy your business and leisure trips with numerous offers and access to more than 600 domestics
as well as international airport lounges.
2. Customer can avail auto assist services such as fuel supply, roadside repair, battery service,
towing assistance, medical assistance etc.

Platinum Select Credit Card:

The platinum select credit card comes with a myriad of benefits that make it ideal for people with
premium lifestyles.

Features:
1. Get vouchers from Satya Paul as a welcome bonus, which can be redeemed in stores across the
country.
2. Get access to an enhanced travel assist program called ‘Travel Plus’.
3. Enjoy auto assist services such as battery service, towing assistance, medical assistance and
accident management, fuel supply etc.

Benefits

Platinum Select Rewards

Earn reward points on every Rs. 100 you spend using your platinum select credit card. Redeem these points
for airline miles or against your outstanding.
The rewards program on your IndusInd Bank Platinum Select credit card has been specially designed to cater

37
to your premium lifestyle. For every Rs.100 spent on your IndusInd Bank Platinum Select credit card, you
get 1 reward point.

Redemption of Reward points:

You have a range of exciting options to choose from for redeeming your rewards points earned on your
platinum select credit card.

Redeem against airmiles:

You can also redeem your reward points for air miles on our domestic and international partner airlines and
earn free trips to your dream destinations.

100 Reward Points = 100 airmiles on partner domestic and international airlines.

Redeem against cash value:

You can also redeem your reward points against your outstanding.
1 Reward Point = Re. 0.75 of cash value

Issues and challenges to the Credit Card:

Implications:

Credit card industry is growing at a very fast pace everywhere. But in their race, they are forgetting that they
are giving rise to defaults & manipulations all together. Credit card has changed the consumer behavior
extensively. Nowadays credit card has become a fashion orientation symbol. People are now more towards
impulsive buying than being frugal. They are buying blindly, things which are of no use to them & also beyond
their paying capacity just because of the fact that with credit cards they can delay their payments.

The bad practices & increased cases of cloning of credit cards are on a rise as people want to defer their
payments & sometimes want to evade them. People are using credit cards more as a borrowing tool than a
payment mechanism. This sudden rush in borrowing has prompted concerns that consumer debt may spiral out
of control, especially in China, Thailand and South Korea. In South Korea, household debt grew 20.3

38
percent in 2001. In Thailand, the National Economic and Social Development Board have warned that the rapid
growth in consumer lending, particularly through the use of credit cards, could jeopardize the country's future
economic stability.

Credit-card fraud is a problem that exclusively concerns emerging card markets. According to a report, the no.
of consumers tends to use credit card beyond their paying ability is increasing. With over 100 million credit
cards issued to the public around the end of 2002 (Kim 2002), consumer bankruptcies have erupted in recent
years and there are grave concerns that the number will significantly increase as credit card debts mount up
and distress more consumers financially. Deregulation by emerging-markets governments and simplification
of the credit-card application process have resulted in consumers taking advantage of the new lines of credit
open to them, borrowing up to their full credit.

One of the other challenges credit card issuers face is generating a sufficient volume of profitable accounts
while, at the same time, being selective in granting accounts and credit lines to maintain an acceptable level of
credit risk. The issuing bank manages these risks by issuing cards only to those with a risk profile it is
comfortable with and then setting reasonable account limits. Banks are more likely to issue credit cards to
relatively high-income individuals as there is greater likelihood that they will promptly repay their debts and
have low default rates, besides having greater prospects of extensive card use.

In a bid to lure customers, credit card companies have started unethical practices, in the absence of any
regulatory framework. Most credit card-issuing banks, in violation of the spirit of basic banking principles,
have been sending unsolicited cards to customers. Many customers are billed for cards lost in transit and
unauthorized used by someone else. Moreover, propriety demands that additional cards be issued only on the
request of customers and not otherwise. Many credit card issuers levy charges without seeking the consent of
customers. For instance, Citibank, the largest issuer of credit cards in India, has been unilaterally levying a host
of charges like Suraksha Credit Shield Premia, transaction Handling Charge and Suraksha Personal Accident
Premia

➢ Others:
There are various other services which are provided by IndusInd Bank. They are premium
banking, online banking, immediate payment services and foreign exchange etc.

❖ Premium banking program:

1. Regular industry updates/report to help you keep abreast of latest developments that impact your
investment decision.
39
 2. Monthly physical and e-statements net banking to help you track transactions and access your
accounts online, including your wealth portfolio.
3. An independent team will review your wealth transactions and provide notification, if required.
4. Check-on-Cheque service to help you keep track of cheque issued on your account by way of
cheque images in your physical and e-statement.

❖ Net Banking:

Indus Net is an easy-to-use net banking service introduced by IndusInd to help its customers save
precious time which is otherwise wasted on making trips to the bank. Customers can carry out variety
of banking related activities from the convenience of the home or office. Some of the features of
Indus Net are:

1. Account Enquiry

Indus Net enables you to control and monitor your account online, wherever you may be. You can
view your account summary online and monitor your transactions, view your transaction history and
download account statements dating back to the past 12 months, view images of cheques issued, and
also view the details of your debit card like transaction limits, reward points, status, Indus Money
balance, etc.

2. Financial Transactions

Online fund transfers can now be done in a jiffy with the help of Indus Net. You can transfer money,
to and from your own IndusInd account, to other IndusInd bank account and also to third party bank
accounts held with other banks. Online fund transfers, which can also be scheduled to be carried out
at pre-specified dates or intervals, will be done via NEFT, RTGS or IMPS. You can add and manage
beneficiaries to whom regular fund transfers have to be made. You can make credit card bill
payments via fund transfers.

3. Security

Via Indus Net, you can get your debit card validated by the bank on an Online Registration basis,
register to receive a One Time Password (OTP) for your card / account related transactions to ensure
absolute security and also enable Channel Locking.

40
Chapter 3: Methodology

41
3.1 Statement of problem:

This topic is selected because customer’s perception is very important to manage the functioning of a bank.
This will help the management team to understand how customer perceives the organization and highlights
the cases of consumer’s dissatisfaction.

3.2 Scope of study:

The survey was conducted on operative level of IndusInd bank DCM branch. The questionnaire was framed
considering those factors where corrective action can be taken. From the result, the marketing department of
the bank can take corrective actions to improve the satisfaction of the customers.

3.3 Objective of the study:

The objectives of the study are as follows:

➢ To find the customer perception toward IndusInd Bank Credit Card.
➢ To identify the ways to increase the market share of IndusInd bank.

3.4 Purpose of the study:

The study has been conducted for gaining practical knowledge about marketing practices

3.5 Research Methodology:

Research Design:

“A research design is the arrangement of conditions for collection and analysis data in a manner to combine
relevance to the researcher purpose with economy in procedure”

The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the
characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in
nature. The main objective of Descriptive study is to acquire knowledge.

42
Source of data:
The data collected are classified into primary and secondary data.
➢ Primary data:
In this study, the primary data is collected in a form of questionnaire.
➢ Secondary data:
Secondary data were collected from the company’s website, annual publications.

3.7 Sampling methodology:

Research work was conducted by taking a sample of 107 consumers. The sample was randomly selected
from each customer. To study the perception of consumer, questionnaire was prepared.

3.8 Limitations of the study:

As I was asked to carry on my training, I found the following limitations during my training period. So, I
could not collect all information regarding my topic.
➢ Shortage of time was one of the biggest problems.
➢ All the observation and recommendation were made on the feedback obtained from survey.
➢ There can be some biasness in the information provided by the banks

3.9 Analysis of Data

➢ Data will analysis through Pie Chart & Statistical Method.

43
Chapter 4: Questionnaire

44
 Questionnaire on credit card
Name:

1. Gender of credit card user.

a) Male
b) Female

2. Age group of credit card user

a) 20-35
b) 35-50
c) 50-60
d) Above 60

3. Which are they belong to?

a) Urban
b) Rural

4. Which bank’s credit card do they use?

a) IndusInd bank
b) SBI
c) ICICI
d) HDFC
e) Other

5. How long they have been using the credit card?

a) Less than 1 year
b) 1 to 2 year
c) 2 to 4 years
d)
e) More than 4 Years

45
6. Why do you apply for credit card?
a) Can get discounts
b) Get free gifts when applying
c) Convenient to make payment
d) Other

7. Why they have chosen this bank (mentioned in question no. 4)?
a) Past relationship
b) Brand Name
c) Nearness
d) Other

8. Reason for not having credit card of IndusInd Bank?

a) Offers are not good
b) Charges are high
c) Credit limit
d) Customer care services

9. Are you satisfied with the service provided by your bank?

a) Yes
b) No
10. Do you intend to increase the consumption because of the premium?
a) Yes
b) No

46
Chapter -5 Data analysis

47
1. Gender of Credit card user.

Sex Result
Male 85
Female 22
Total 107

Inference: out of 107, 85 are males and 22 are female who are using
credit card.

48
2. Age group of credit card user.

Age group Result

20 to 35 35
35 to 50 47
50 to 60 15
Above 60 10
Total 107

Inference: There is more usage of credit card in the age group of 35

to 50 as compared to other ages. People above 60 are less likely to
use credit card.
49
3. Which area do they belong to?

Area Result
Rural 17
Urban 90
Total 107

Inference: Credit cards are more popular in urban area than in

rural area as a greater number of credit card users belongs to
urban area.

50
4. Which bank’s credit card do they use?

Bank Result
IndusInd 29
SBI 10
ICICI 18
HDFC 35
Other 15
Total 107

Inference: a greater number of people prefer HDFC credit card

whereas least are using SBI credit card.
51
5. How long they have been using the credit card?

Period Result
Less than a year 25
1 to 2 years 33
2 to 4 years 39
More than 4 years 10
Total 107

Inference: More numbers of users between 1 to 2 years, because

every year a new card with new features is introduced in the
market.

52
6. Why do you apply for credit card?

Reasons Result
Can get discounts 38
Get free gifts when 21
applying
Convenient to make 28
payment
Others 20
Total 107

Inference: More people are using credit card to get discounts while
shopping and because it its convenient to make payments.

53
 7. Why they have that bank (mentioned in question no. 4)?

Preference Result
Past relationship 31

Brand name 36

Nearness 18

Others 22
Total 107

Inference: More customers are using credit cards because of its

brand name and good services to its customers.

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 8. Reason for not having credit card of IndusInd Bank?

Preference Result
Offers are not good 10
Charges are high 53
Credit limit 5
Customer care services 10

Total 78

Inference: People are not using IndusInd bank’s credit card because
the charges are very high.

55
9. Are you satisfied with the service provided by this bank?

Responses Result
No 42
Yes 65
Total 107

Inference: Higher numbers of customers are satisfied with the

bank services.

56
10. Do you intend to increase the consumption because of the
premium?

Responses Result
No 65
Yes 42
Total 107

Inference: Majority of customers will not increase the

consumption of credit card even if bank provides higher
premium.

57
Conclusion

58
6.1 Conclusion:
As mentioned earlier and also by going through the whole company profile and other data, it is clear that
INDUSIND bank has few offices across the country.
By working in such a successful organization, I have come to know lot about this organization’s functioning
and its markets exacting quality control absolute commitment and integrity and most significantly a sense of
dynamism of striving for the extraordinary and lots more to offer it one of the most professional in its nature.
The main purpose of the organization study was to know about the organization and the functioning of
various departments. After my study I can say that the INDUSIND Bank follows a flat organizational
structure with adequate number of employees in each functional department.
Moreover, the company is having good infrastructure which can help in the future for increasing the business
worldwide. Only the thing is that the company is having less involvement in advertisement campaign. If they
concentrate on much more for advertising it would help them for attracting new customers.

59
Finding

60
5.1 Findings:
➢ Very few customers prefer using credit card in today’s world.
➢ Mostly people using this service for more than 2 years.
➢ Many bank users prefers credit card.
➢ Many people face problems in interest rate.
➢ According to service IndusInd found better.
➢ According to value added services we found HDFC bank better than IndusInd Bank. Because some
customer change IndusInd to HDFC.
➢ Mostly people are satisfied with their credit limit.
➢ Mostly people want free credit cards from their bank.
➢ Mostly people are satisfied their custome care service provider.

61
Suggestion and recommendation

62
7.1 Suggestion:
➢ Credit cards should be available on date.
➢ There should be a greater number of branches & ATM.
➢ Various special & attractive offers should be introduced.
➢ It is advised to the company that rather than service only in leading Company better to tie up with the
SME’S.

63
Bibliography

64
 Bibliography

➢ Text Books:
Kotler, Philip. How to Create, Win & Dominate Markets, The Free Press, 3rd Edition, New
York, 1999.

➢ Magazine:
India Today

➢ Newspaper:
Economic Times

➢ Websites:
• www.indusind.com
• www.wikipedia.com
• https://m.moneycontrol.com/stock/indusindbank/IIB/financials/profit-loss
• https://www.paisabazaar.com/indusind-bank/

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