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STUDY OF CONSUMER PERCEPTION REGARDING CREDIT CARDS SCHEME OF HDFC BANK
Submitted to Punjab Technical University In partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION
I, "”, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.
_______________________ (Student's name & Signature)
If words are considered as a symbol of approval and token of appreciation then let the words play the heralding role expressing my gratitude. Firstly I am thankful to that Gracie GOD who blessed me with all kinds of facilities that had been provided to me for completion of my report. I acknowledge my deepest sense of gratitude and sincere feeling of indebtness to my divine teacher ……and all my faculty members whose guidance and through their sustained efforts and encouraging attitude I was able to complete my project. I am extremely grateful to the management of the Bank for permitting me to take a training and also for spending their precious time and sharing the valuable information with me and in helping my project to be a success.
Theory & practice are the two aspects of the management education . I must say that the staff provided me with an excellent work atmosphere for doing the project. Executive summary . Practical training exposes the potential manager to the actual work environment & provides them rich insight into what actually goes on in the industrial climate of India. I had the privilege of doing my Project on HDFC Bank credit card. I have gained precious & valuable knowledge regarding practical aspects while prepare my project report. In fact the implementation of theory in practice is the life of management. the two have to be blend together.In order to produce dynamic & promising executive. The project report is on “Consumer Perception regarding the Credit Card of HDFC Bank”.
ATM. Debit Card Facilities. the bank has built for itself a reputation of being one of India’s leading. R & D Formalities. Alternative Delivery Channels. A thriving economy. Accounts and deposit products. Payment services . Depository Participant Services for retail customers. through which they utilize balance transfers to reduce their interest burden over the short term. Transactional Services. Loan against marketable securities. Trade services. purchasing clothing. pegged at 27 million in 2007. Mutual funds. Mobile Banking. Cash Management Services. Stock exchange member. petrol. is growing at an annual rate of 30-35%. Personal loan. Investment and insurance. Phone Banking. The country’s credit card base. The cardholders are increasingly using credit/debit cards for dining. Working capital Finance. and each issuer has posted an enviable annual growth rate for several years. Analyzing loan. is one of the new private sector banks in India. with a consistent record of accomplishment of superior financial performance and impeccable asset quality. Most Indians now have multiple cards. substantial increase in disposable incomes and consequent rise in consumer expenditure.India is the second fastest growing market for financial cards in the Asia-Pacific region. which commenced business in early 1995. Auto Loan. foreign participation and a booming tourism industry are combining to create high levels of growth in India’s nascent financial cards market. RBI’s Legal formalities. Solutions to Corporate customers. New products. durable goods and jewellery. Some of the activities of the bank are: Loan from other bank. In this relatively short span of less than 10 years. Loan for two wheeler. Investment Advisory services. growing affluence levels and consumer sophistication have all led to robust growth in credit cards. Lending Formalities. innovative customer focused bank. helped by product innovation and a supportive regulatory environment HDFC Bank Ltd. Deposit Formalities. Net Banking. Credit Card Facilities.
Banks even offer details of expenses incurred on credit cards under different headings – such as food. The government has also been a leading player in encouraging access to financial cards for India’s poor. describes company’s product market and technological area. the quality of services has not declined. amongst opportunities were: International market and .Despite the high demand. medical insurance at a heavy discount and much more. The Reserve Bank of India recently allowed certain non-banking finance companies to issue co-branded credit cards with commercial banks. Product features match the best anywhere in the world. clothes and jewellery .to enable easier tracking by the customer. Nevertheless the company’s mission and vision statement are mentioned to be the same. The cardholder is offered the option of converting a big purchase made on a credit card into a loan at a lower rate of interest spread over a long period. Almost all the credit cards come with standard benefits such as free accident insurance. Some of the strengths of HDFC bank found were: Company image and technological capability. So HDFC should have an alternate elaborated mission statement. especially in rural areas. which should not be the case since the mission of the company sets apart one company from other companies in the same area of business. which is aimed at the farming community. E-mail alerts and mobile alerts on credit cards are commonplace. Weaknesses included: High cost involvement and undifferentiated products. India’s regulators have been generally supportive in the development of the financial cards industry in the country. through schemes such as the Kisan Credit Card. which could be: To be a financial bank which offers wide range of financial instrument which works to deliver quality service to its customers equipped with latest technologies and novelty of international standards. The mission identifies the scope of company’s operations. It also gives thrust to company’s strategically decisions. though the non-bank partner’s activities are restricted to the marketing and distribution of the co-branded cards.
recent technological development. have yet to realise their full potential. The growth of credit cards in number and transaction volumes in India was low compared to other countries in the AsiaPacific region. Another contributing factor was the quiet but aggressive promotion campaign launched by key `producers' in this sector. This is not the way most Indians perceive this issue. Though Credit card is very old concept. Debit cards. But it gains more importance since last few years only. but cross-country statistics very definitely bear out the position as stated in the Executive Summary of a $1400-report on `Financial Cards in India'. too.2 years only. The main purpose of using credit card according to majority of people is shopping because at most of the times the amount to be spent on shopping is not pre planned and with the help of credit cards they do not have to worry for the cash which they need if the shopping expenses rises. published by Euromonitor International. But there is definitely room for further growth. It is clear from the research that majority of people have started to purchase it since last 1 . . Among the factors that limited growth was the comparatively slow rate of growth of ATMs in India. and lastly the threats posed were: Price wars with competitors and competitors having superior access to channels of distribution.
No. CHAPTER INTRODUCTION TO PROJECT SECTION A: THEORETICAL FOUNDATION A.2 History Page No.CONTENTS Sr.1 INTRODUCTION A. I. 1 3-47 .
8 Credit card numbering: A.6 Problems A.13 Growth of credit cards .11 Detail of HDFC Bank Credit Card 11.12 Cardholder Dispute Form A.4 Merchant's side 3.9 Credit cards in ATMs A.4 Commercial Cards A.A.1.6 Transaction steps 3.10 Types of credit cards A.2 Benefits 3.4 Features A.3 Premium Cards: Access world-class privileges and benefits 11.2 Special Benefit cards 11.7 Profits and losses 7.5 Security A.1 Interest charges 3.1 Costs 7.2 Revenues A.3 Grace period 3.7 Prepaid credit cards A.5 Parties involved 3.3 How credit cards work 3. Classic Cards 11.
21 Future Prospects 48-55 56 57-64 .6 Time banks Amalgamation C.3 Business focus C.19 HDFC Product Range C.18 Branches of HDFC C. 14 Retail Banking Services C.7 Growth C.2 Mission and Business Strategy C. SECTION B: REVIEW OF LITERATURE INTRODUCTION TO COMPANY SECTION C: INTRODUCTION TO ORGANISATION C.II.9 Technology C.17 Awards and Recognition C.16 RATING C.11 Management C.4 Capital Structure C.10 Distribution Network C.12 Business Profile of HDFC Bank C.1 OVERVIEW C.13 Wholesale Banking Services C.15 Treasury C.8 Subsidiaries and associate Companies C.5 Merger of HDFC Bank and Centurion Bank of Punjab C.20 Recent Achievements and milestones C. 14 Retail Banking Services C.
3 Business Strategy D.1 PROFILE D.23 FINANCIAL RESULTS C.C.22 PERFORMANCE OF HDFC BANK C.4 SWOT Analysis of Training Unit:- 65-100 III IV Objective of study Research Methodology RATIONALE OF THE PROJECT 101-105 106-109 V Data Analysis and Interpretation Finding & Suggestion LIMITATIONS OF THE STUDY 110-113 BIBLIGRAPHY .24 Financial Analysis of HDFC Bank Limited SECTION D: INTODUCTION TO TRAINING UNIT D.2 ORGANISATION STRUCTURE D.
Chapter I INTRODUCTION TO THE SUBJECT .
SECTION A .
THEORETICAL FOUNDATION A. and since the early 1990s. providing enhancements. Card issuers have expanded into the subprime markets not only through pricing but also by offering an array of different types of cards. In the past. lowering interest rates. This aggressive approach has resulted in widening the .1 INTRODUCTION Competition across the 1990s has changed credit card issuers’ pricing strategy. Credit card issuers are competing by waiving annual fees. they offer lower rates to existing customers who have good payment records (prime or A markets) while maintaining relatively high rates for higher-risk (sub-prime or B/C markets) or late-paying cardholders. including secured cards in which the credit limit is tied to a security deposit provided by the consumer. but more recently many of them have offered a broad range of card plans with differing interest rates depending on consumers’ credit risk and usage patterns. For example. credit card issuers offered programs with a single interest rate.
In contrast. McNamara in order to consolidate multiple cards. at the cost of having interest charged. produced the first "general purpose" charge card. A credit card is only an automatic way of offering credit to a consumer. Imagine what a credit purchase would be like without it. which requires the balance to be paid in full each month. A. Today. which is similar but . In the case of credit cards. A credit card is a system of payment named after the small plastic card issued to users of the system. the issuer lends money to the consumer to be paid later to the merchant. The Diners Club. and are the same shape and size. The modern credit card was the successor of a variety of merchant credit schemes. which was created partially through a merger with Dine and Sign. and terms of repayment. every credit card carries an identifying number that speeds shopping transactions. as specified by the ISO 7810 standard. Most credit cards are issued by local banks or credit unions. as well as increasing potential problems. Credit is a method of selling goods or services without the buyer having cash in hand. specifically to sell fuel to a growing number of automobile owners.2 History The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. a credit card allows the consumer to 'revolve' their balance. In 1938 several companies started to accept each other's cards. It is different from a charge card. It was first used in the 1920s. The concept of paying merchants using a card was invented in 1950 by Ralph Schneider and Frank X. the sales person would have to record your identity. billing address. in the United States.variety of credit card choices for consumers. Bellamy used the term credit card eleven times in this novel.
In these places. some countries. France. or had developed alternative forms of cash-less payments. store cards and so on. were much faster to . such as Carte bleue or the EC-card (Germany. Switzerland. a product which eventually evolved into the Visa system ("Chargex" also became Visa). In contrast. In 1966 Barclaycard in the UK launched the first credit card outside of the US. In contrast. There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions). including organization-branded credit cards. the take-up of credit cards was initially much slower. Canada and the UK. Bank of America created the Bank Americard in 1958. among many others). The fractured nature of the US banking system meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. France in particular. Canada or UK. it was followed shortly thereafter by American Express and Carte Blanche. although having reached very high adoption levels in the US. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US. because of the legislative framework surrounding banking system overdrafts.required the entire bill to be paid with each statement. MasterCard came to being in 1966 when a group of credit-issuing banks established Master Charge. Western Union had begun issuing charge cards to its frequent customers in 1914. In many countries acceptance still remains poor as the use of a credit card system depends on the banking system being perceived as reliable. it is important to note that many cultures were much more cash-oriented in the latter half of the twentieth century. corporate-user credit cards.
after which cardholders can use it to make purchases at merchants accepting that card.where the card designs is related to the "affinity" (a university. In most cases a percentage of the value of the card is returned to the affinity group. A. the credit card user agrees to pay the card issuer. Electronic verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds. When a purchase is made. A. Also. many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet. allowing the verification to happen at time of purchase. 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). The design of the credit card itself has become a major selling point in recent years. . This has led to the rise of Co-Brand and Affinity cards . for example) leading to higher card usage.develop and adopt chip-based credit cards which are now seen as major anti-fraud credit devices. but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid. known as a 'Card/Cardholder Not Present' (CNP) transaction. The value of the card to the issuer is often related to the customer's usage of the card.3 How credit cards work Credit cards are issued after an account has been approved by the credit provider. The cardholder indicates his/her consent to pay.1 Interest charges Credit card issuers usually waive interest charges if the balance is paid in full each month. or to the customer's financial worth.3.
but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. Usually.3. or cash back (typically up to 1 percent based on total purchases) to try to attract customers. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. regardless of whether the . Grace periods vary. a credit card transaction is often more secure than other forms of payment.00 of the total amount remained unpaid. if a user had a $1. A.3 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. however.For example. credit card providers often offer incentives such as frequent flyer points. finance charges will be calculated and the grace period does not apply. If. gift certificates. Some policies allow for reinstatement after certain conditions are met.3.000 transaction and repaid it in full within this grace period. A. even $1. interest would be charged on the $1. such as checks. if a customer is late paying the balance.4 Merchant's side For merchants.000 from the date of purchase until the payment is received. usually between 6 and 12 months after which a higher rate is charged.3. A. The only downside to consumers is that the period of low interest credit cards is limited to a fixed term. Low interest credit cards or even 0% interest credit cards are available.2 Benefits Because of intense competition in the credit card industry. because the issuing bank commits to pay the merchant the moment the transaction is authorized. there would be no interest charged.
Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. A. cards are even more secure than cash. Independent sales organization: Resellers (to merchants) of the services of the acquiring bank. the bank charges the merchant a commission for this service and there may be a certain delay before the agreed payment is received by the merchant. . though this is not always allowed by the credit card consortium. a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges as a result of disputes. this is no longer the case. because they discourage theft by the merchant's employees and reduce the amount of cash on the premises.3. The commission is often a percentage of the transaction amount. but as of 2007. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently.5 Parties involved Cardholder: The holder of the card used to make a purchase. Some small merchants require credit purchases to have a minimum amount to compensate for the transaction costs. In most cases. For each purchase. Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant. American Express and Discover were previously the only card-issuing banks for their respective brands. In addition. plus a fixed fee. the consumer.consumer defaults on the credit card payment (except for legitimate disputes and can result in charges back to the merchant).
A. Credit Card association: An association of card-issuing banks such as Visa. MasterCard. American Express.3. Paymentech. If a transaction is not submitted in the batch. An authorization will generate an approval code. Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution. which the merchant stores with the transaction. Examples of typical affinity partners are sports teams. but in general is the organization that the merchant deals with. card-issuing banks. Discover. Batching: Authorized transactions are stored in "batches". etc. May be operated by an independent company. and get paid a fee or a percentage of the balance for each card issued using their name.6 Transaction steps Authorization: The cardholder pays for the purchase and the merchant submits the transaction to the acquirer (acquiring bank). Concord EFS net. Vital. and acquiring banks. Nova. and Visa Net. Batches are typically submitted once per day at the end of the business day. that set transaction terms for merchants. the authorization will stay valid for a period determined by the issuer. Nabanco. after . Transaction processing networks include: Cardnet. the transaction type and the amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. which are sent to the acquirer. NDC Atlanta. Transaction network: The system that implements the mechanics of the electronic transactions. and one company may operate multiple networks. Omaha. Merchant account: This could refer to the acquiring bank or the independent sales organization. universities and charities. The acquirer verifies the credit card number.
American Express or Discover) and can be used in similar ways just as though it were a regular credit card. A. the issuer pays the acquirer for the transaction. the issuer returns the transaction to the acquirer for resolution. it carries a credit-card brand (Visa. In the event of a chargeback. Funding: Once the acquirer has been paid. who must either accept the chargeback or contest it." which is the fee the merchant pays the acquirer for processing the transactions. The main advantage over . the cardholder loads it with any amount of money. After purchasing the card. Charge backs are typically initiated by the cardholder. MasterCard. Essentially.which the held amount will be returned back to the cardholder's available credit (see authorization hold). Charge backs: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. the acquirer pays the merchant.3. The merchant receives the amount totaling the funds in the batch minus the "discount rate. However.7 Prepaid credit cards A prepaid credit card is not a credit card since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. Clearing and Settlement: The acquirer sends the batch transactions through the credit card association. such as a parent or employer. The acquirer then forwards the chargeback to the merchant. up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card. which debits the issuers for payment and credits the acquirer.
and are available with a large variety of credit limits.5 Security Credit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. whereupon access to the number allows easy fraud. A. as well as the PIN. Many other fees also usually apply to a prepaid card. The main one is to require a security PIN with the card. but often there are additional measures. repayment arrangement. . no fraud can take place in this way. and require a signature. Merchants often accept credit card numbers without additional verification for mail order purchases.secured credit cards is that you are not required to come up with $500 or more to open an account. and other perks such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cash back. a stolen card can be cancelled. Some merchants will accept a credit card number for in-store purchases. security is potentially compromised. which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. accessible credit. credit cards offer consumers an easy way to track expenses. which requires that the thief have access to the card. Credit cards are accepted worldwide. whenever a person other than the card owner has access to the card or its number. Thus. there is sometimes the same level of security as for mail order (number only) hence requiring only that the fraudster take care about collecting the goods. For internet purchases. Therefore.4 Features As well as convenient. With prepaid credit cards you are not charged any interest but you are often charged a purchasing fee plus monthly fees after an arbitrary time period. but many require the card itself to be present. and if this is done quickly. A.
7 Profits and losses In recent times. credit card portfolios have been very profitable for banks. . The goal of the credit card companies is not to eliminate fraud. a security risk is created. Naturally. the simplest being copying information from retailers. but to reduce it to manageable levels. since the business is essentially one of making unsecured (uncollateralized) loans. largely due to the booming economy of the late nineties. which are generally used quickly before the cards are reported stolen. A. and thus dependent on borrowers not to default in large numbers. However. anywhere card details become human-readable before being processed at the acquiring bank. many banks offer systems where encrypted card details captured on a merchant's web server can be sent directly to the payment processor. systems with security holes are usually the result of poor implementations of card acquisition by merchants. This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction. Despite efforts to improve security for remote purchases using credit cards. either online or offline. This opportunity has created a huge black market in stolen credit card numbers.6 Problems The low security of the credit card system presents countless opportunities for fraud.A. For example. Most internet fraud is done through the use of stolen credit card information which is obtained in many ways. in the case of credit cards. However. a website that uses SSL to encrypt card numbers from a client may simply email the number from the web server to someone who manually processes the card details at a card terminal. such high returns go hand in hand with risk.
or cash back as an incentive to use the card. Depending on the type of card. while lending their capital to other borrowers at higher rates. to taking the many phone calls which cardholders place to their issuer. which may or may not include balance transfers. rewards will generally cost the issuer between 0. the creditor may declare the debt to be a charge-off. Rewards: Many credit card customers receive rewards. Charge offs: When a consumer becomes severely delinquent on a debt (often at the point of six months without payment). such as frequent flier points.) The item will include relevant dates. and the amount of the bad debt. to mailing the statements. to running the computers that keep track of every cardholder's balance. cash advances. they may borrow as much as their customers require. most card issuers will refund some or all of the charges that the customer has . Operating costs: This is the cost of running the credit card portfolio. or an unauthorized duplicate made. When a card is stolen.25% and 2. It will then be listed as such on the debtor's credit bureau reports (Equifax. Rewards are generally tied to purchasing an item or service on the card. for instance. in the UK in 2004 it was over £500 million. lists "R9" in the "status" column to denote a charge-off.1 Costs Credit card issuers (banks) have several types of costs: Interest expenses: Banks generally borrow the money they then lend to their customers. or other special uses.7. gift certificates.0% of the spend. As they receive very low-interest loans from other firms. Fraud: The cost of fraud is high. to protecting the customers from fraud rings. including everything from paying the executives who run the company to printing the plastics.A.
interchange fees have been set by the bank card associations and their major card-issuing banks. Interest on outstanding balances: Interest charges vary widely from card issuer to card issuer. Often. but also from card to card. there are "teaser" rates in effect for initial periods of time. in some cases. especially in mail order cases where the merchant cannot claim sight of the card A. called over limit fees . PIN-based debit cards. Card-issuing banks obtain these interchange fees in addition to the enormous revenue they receive from card holder interest and fees. or even cheques. with business cards and rewards cards generally costing the merchants more to process). or will add a percentage to the sale price to cover the interchange fee. These refunds will. which is why many merchants prefer cash. be at the expense of the merchant.received for things they did not buy. Traditionally. but will vary not only from merchant to merchant. Merchants pay their banks fees of 1 to 6 percent of each sale (for large merchants these fees may be negotiated . whereas regular rates can be as high as 40 percent. Fees charged to customers: The major fees are for: Late payments or overdue payments Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake). Interchange fees are the single largest component of the various fees that banks deduct from merchants' credit card sales.7.2 Revenues Interchange fee: Bank card associations such as Visa and MasterCard require merchants to pay billions of dollars in Interchange fees to banks that issue their credit and debit cards. who are the primary beneficiaries of these fees.
Returned cheques fees or payment processing fees (e.g. phone payment fee) Cash advances and convenience cheques. Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this. Membership fees (annual or monthly), sometimes a percentage of the credit limit. Exchange Rate Loading Fees (May not even appear on your statement!) A.8 Credit card numbering: The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code. In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits. A.9 Credit cards in ATMs Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date.
A.10 Types of credit cards When we look back at the history of credit cards, they started out simple and standard: Each issuer produced one card with one set of features. Today, credit cards come in multiple levels with ranging interest rates, fees and reward programs, so before you fill out an application, it's important to know which will best suit your financial situation and lifestyle. The following is a brief description of the most common types of credit cards available. 1) Standard credit cards: These credit cards are the most common and are readily available from most banks and financial groups. They are unsecured, which means you do not have to put down a security deposit to prove the money can be repaid. The way the annual percentage rate is offered or calculated for these cards can vary. Here are two examples:
Balance transfer credit cards allow consumers to transfer a high interest
credit card balance onto a credit card with a low interest rate. Typical in the market today are balance transfer credit cards with an introductory annual percentage rate (APR) of 0 percent, with that introductory or "teaser" rate lasting several months up to a year. The terms of balance transfer credit cards varies between offers.
Low interest credit cards offer either a low introductory APR that jumps
to a higher rate after a certain period, or a single low fixed-rate APR. Low interest cards can be very useful when consumers need make a large purchase because it allows several months to a year to pay it off with very low or no interest.
2) Credit cards with rewards programs: Reward credit cards allow users to earn incentives for making purchases with their credit card. Reward cards usually require better-than-average credit for approval. There are seven major types:
Cash back credit card: Cash back credit card allows you to earn cash
rewards for making purchases. The more the card is used, the more cash rewards you receive. Most cash back cards earn users around 1 percent of total purchases, excluding interest and finance charges.
Reward credit cards: Reward credit cards are similar to cash back cards in
that cardholders can accumulate points toward a reward structure, which is based on how much the card is used over time. General reward cards offer cardholders a variety of items to cash points in for: gift cards, electronics, hotel stays, plane tickets, jewelry, pet supplies and more.
Hotels or traval point credit cards: This is a genre of credit cards specific
to hotels and travel. Some cards are co-branded with hotels, such as the Marriott Rewards Visa card, or the Hilton HHonors American Express card. These credit cards allow you to earn points for all purchases, in addition to bonus points for dollars spent on stays at the respective hotel chain.
Retail rewards credit cards: These credit cards are co-branded with a
major retailer, such as Disney, Amazon.com or Best Buy. Points are accumulated by making everyday purchases, though cardholders are awarded with double or triple points for making purchases from the cobranded retailers.
Gas cards with points: Gas cards come in two species: general and brand-
specific. General cards treat all gas companies equally, while brandspecific cards favor one gas company. The Discover Open Road card, a general gas rebate card, gives you 1 percent cash back for general
This type of card allows consumers to earn airline mile credits whenever they make purchases. Some cards are co-branded with a specific airline. Airline specific credit cards:These cards are associated with one airline. Home improvement reward credit cards: These credit cards allow consumers to earn reward points for all purchases. cardholders can opt for cash back rewards. Automobile manufacturer’s credit cards: Auto rewards cards allow consumers to earn points that can be redeemed toward the purchase of a new or used car. or apply their earnings toward the purchase of a new GM vehicle. you earn 1 percent back on regular purchases. but 6 percent back on purchases involving utilities. This card is most beneficial to those looking to purchase a vehicle in the near future. with the Citi Home Rebate MasterCard. for example. With the GM Flexible Earnings MasterCard. For example. Points can be redeemed for airline travel.purchases but rewards you with 5 percent back for buying gas or having auto maintenance done at any company. much like frequent flier miles. the cardholder accumulates points from both making purchases with the card and by flying on the specified airline. . cable/satellite TV. while earning extra points for home-related expenditures. 3) Airline mile frequent flier credit cards: While certain general reward credit cards allow points to be redeemed for plane tickets among other things. while some are generic and can be redeemed for tickets with a variety of airlines. there is a subset of reward cards specifically for air travel. auto-related expenses or merchandise. Typically. Generic airlines miles cards: Credit cards such as Miles by Discover allow you to redeem your reward points for air travel through any airline. Internet connection and telecom for the first year.
5) Specialty credit cards: These types of cards are for consumers with unique needs for their credit use. there are several credit cards designed to help rebuild poor credit histories. Depending on your specific situation. Business credit cards: These cards are available for business owners and executives and have many of the same features as traditional credit cards: low introductory rates. If your credit score is less than satisfactory. Student credit cards are specifically designed for those enrolled in accredited four-year colleges and universities to help them build a credit history from the ground up. . cash back programs and airline rewards. which makes it difficult to get approved for a traditional card. This is a great option for people who aren't involved in a frequent flier program and aren't loyal to any particular airline. Student credit cards: Many college students need a credit card. 4) Bad credit and/or credit repair cards: Credit can easily go from good to bad due to poor budgeting or simply by an overlap between jobs. A. These credit card programs are designed specifically to meet the needs of those individuals.travel agent or online travel site. There are several options available to those who have had bad credit in the past and for those who are currently trying to repair their credit. their Credit Cards are designed to meet your unique needs. debt consolidation or use of introductory APRs on balance transfers may be wise choices. such as business professionals and students. it does not mean you cannot qualify for a credit card. If you still need credit or want to start repairing your credit by proof of action.11 Detail of HDFC Bank Credit Card HDFC Bank has range of Cards help you meet your financial objectives. but they generally have little or no credit history.
a.p.a. eating out.) 21 60 Rs. 200. Self Employed 21 65 Rs.000/. holidaying.000/. fuelling up vehicle. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.1. railway ticket reservations just about any financial requirement. planned or on impulse. Classic Cards • Silver Credit Card The HDFC Bank Silver Credit Card can be used for all your requirements. be it shopping.List of hdfc credit cards: Classic Cards Silver Credit Card Premium Cards Gold Credit Card Titanium Credit Card Woman's Gold Card Platinum Plus Credit Card Visa Signature Credit Card World MasterCard Credit Card Special Benefit Cards Value Plus Credit Card Health Plus Credit Card Commercial Cards Corporate Credit Card Business Credit Card A. .p. 150.11.
) • Self Employed 21 65 Rs. 150. .000/. 21 60 Rs.2 Special Benefit cards • Value Plus Credit Card A true value card that enables you to avail 5% cash back on all your purchases.a.a. Health Plus Credit Card Cashless Mediclaim. extra protection for the family. It's power packed with a host of unmatched features that provides your family with true Value and savings. discounts at participating hospitals.p.11.p. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.A. It brings unique features like the Cashless Mediclaim facility and discounts at leading hospitals which make it an unmatched product. 200.000/.
a. Self Employed 21 65 Rs. Introducing the HDFC Bank Health Plus International Credit Card .p. This card comes to you from HDFC Bank in association with the United India Insurance Company (UIIC).000/.000/. This is not just a card but a guarantee of a healthy and secure future. A.a. one of the leading insurance service providers.11.) 21 60 Rs.p. This card is designed keeping your good health in mind. 150. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.3 Premium Cards: Access world-class privileges and benefits • Gold Credit Card . It brings you unique features like the Cashless Mediclaim facility and discounts at leading hospitals which make it an unmatched product.India's first health Care Credit Card with a free inbuilt Cashless Mediclaim.Imagine a Credit Card that takes care of your financial health as well as your family's health and fitness. 200.
a.000/. and rewards redemption against air miles.p.a. 150. cashback offers.000/. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs.) • Self Employed 21 65 Rs. It's overloaded with travel benefits .p. air miles redemption.A card to match premium lifestyle with features like special offers on air and train ticketing. 21 60 Rs 200.discounts. assured 50% discounts on hotel tariffs. Titanium Credit Card The unique reward points structure gives 2 reward points for every Rs150 on domestic spends and 5 reward points for every Rs150 on international spends • Woman's Gold Card .
21 60 Rs 200.a. • World MasterCard Credit Card .000/.p. Enjoy a world of exclusive privileges on your HDFC Bank Platinum Plus Credit Card. Eligibility Criteria Salaried Minimum Age Maximum Age Annual Income (Rs. 150. • Visa Signature Credit Card A card for the rarest of the rare A card with unique and exclusive privileges that complement your refinement and style.The customers can Enjoy the benefits of the best premium card made specifically for women.) • Self Employed 21 65 Rs.p.000/.a. Platinum Plus Credit Card India's only Platinum Credit Card with exclusive travel and preferential benefits a recognition of those who have "arrived in life".
4 Commercial Cards • Corporate Credit Card HDFC Bank Corporate card is the first among few to provide you with truly world beating features on your credit card. powered by Mastercard International • Business Credit Card . It comes with a unique 24x7 Expense management solution called SMART DATA ONLINE.a very premium offering for the truly elite. A card with tailor-made premium privileges that complement a discerning lifestyle A.HDFC Bank presents the World MasterCard Credit Card .11.
Welcome to the world of exclusive privileges and world class services. . The HDFC Bank International Business Card is designed to add value to your business. while keeping in mind the conveniences and lifestyle benefits for business owners and the self employed community specifically.It makes Perfect Business Sense .Better Business with HDFC Bank International Business card.
A.12 Cardholder Dispute Form .
6 million in 2007. which was at about 17.1 million in 2003 to 22.13 Growth of credit cards Bankers expect their credit card business to grow by over 30 per cent in 200708.The number of cards in force this year is about 30 per cent more than that in 2006. Credit cards have seen a gradual growth from about 7.A.5 million. . There has been approximately a 30-40 per cent growth in the number of cards in force and also the amount of annual spends on cards on a yearon-year basis.
Section B REVIEW OF LITERATURE .
Parasuraman. (3) between service quality specifications and service delivery. between how executives perceive the quality of the service they provide and the tasks associated with delivering those services to customers. or gaps.Review of Literature Here. Schlesinger and Heskett (1991):Citing research on customer loyalty conducted by the Forum Corporation. Schlesinger and Heskett (1991) noted that only 14% of customers stopped patronizing service business because they were dissatisfied by . this author found the fourth gap (between both service quality specifications and service delivery. They found that the customer's perception of service quality depends upon the size and direction of the gap between the service the customer expects to receive and what he or she perceives to have been received. This chapter deals with the review of the empirical studies by the experts and the researchers. but it is useful to briefly look at. (2) between management perception of expectations and the translation of those perceptions into service quality specifications. and external communications to customers) to be of particular relevance. no doubt there have been large number of studies in the literature in this field and it is not possible to comment on all these studies. and (4) between both service quality specifications and service delivery. as many as possible. and external communications to customers. (1984): identified a set of discrepancies. Parasuraman." Because this study focused on the interaction between the firm's representatives and its customers. noted that these gaps "can be a major hurdle in attempting to deliver a service which consumers would perceive as being of high quality. an attempt is made to glance through the research carried out earlier in the field of “Consumer Perception regarding Bank”. The magnitude of this gap (which can be either positive or negative) was determined by four interrelated variables: (1) the difference between actual consumer expectations and management perceptions of those expectations.
but thieves can do extra homework to fetch additional details of a particular cardholder. and that customers who were dissatisfied with the resolution of their problems were twice as dissatisfied as those whose problems were resolved to their satisfaction Lee’s (2001) Study has also shown that the more competitive the market. and a miscreant with a tag reader within the read range of the card. while more than two-thirds defected because of what they judged to be indifferent or unhelpful service. A person with a credit card in a wallet is at a busy public place (say. would be able to identify the cardholder. frequency. (1990):studied whether customers' perceptions of quality were influenced by whether or not they had experienced a recent service problem they examined customers who had experienced recent service problems and those who had not." Zeithaml. and amount of purchase Paturi (2006): The advent of contact less payment technology brings with it new opportunities for stealing information from a credit card without the owner’s notice. Of course. the greater the importance of customer satisfaction and customer loyalty. after reading the card’s tag without the owner’s permission. They found that service problems adversely affect customers' perception of service quality. (1984) that customers' judgments of high and low service quality depend on "how consumers perceive the actual service performance in the context of what they expected. the information on the credit card may not be complete enough to enable many kinds of fraud. In the credit card market loyalty is typically measured by recency. steal whatever data was transmitted and potentially use that information to commit crimes.the quality of the product. . The miscreant. on a train). A card is just one of many sources of personal information a thief can get. This finding supported the observation of Parasuraman.
cash back.75% . completely legal game they are playing. But he did not know that they can raise his interest rate if he has made a late payment on any of his other cards. a recent Moneyfacts. That means if we spent £1. . Foreign usage loading on cards averages 2. It’s wonderful to get free stuff travel. We also need to consider the fact that if we are withdrawing cash whilst abroad. it's hard not to second-guess your choice. The customers may ask that why so. and money for college just by using credit card. But with so many rewards programs out there. and so on). transfer fees. In fact.000 on our credit card whilst on our holiday we would be charged £27. Bakshi (2008): Many of us do not realize that. that end up costing the customers thousands of dollars (late fees. including those issued by other companies. it is always been the interest rate game that hurt the most. when we use a credit card abroad the card issuer adds on a foreign usage loading. Have you got the best card? Are you using it to its best advantage? Could you get more from a different one? But there is no single best card for everyone that the right card for a customer depends on the kind of rewards he wants and how much you charge. A customer own a credit card.co.Bach (2007): Of all the games the credit card companies play. over-limit fees. There is a new.000 using your credit card abroad you would be charged 4. we will also be charged our usual cash withdrawal fee. The answer is found in the fine print of their credit card agreement.50.£47. which averages 2%. and it can literally wipe the customer out financially if he is not careful. Weston (2007): The thrill of a credit card rewards program is so fleeting. Thus. he knows that if he is late with a payment the credit card company will charge him a late fee in addition to raising his interest rate.uk user poll revealed that 67% of consumers do not know the charges for using their credit card abroad. and it's called a universal default clause. if you withdrew £1.50.75%.
But when shopping for a card. etc. grace period. Hynes (2008): Credit cards are convenient for buying things now and paying later. big cars. The trend of using credit cards is increasing day by day. Bank of America offers two such credit cards. cost and rewards. Don't forget that every time you use your credit card you are borrowing money. Carrying a card is easier than carrying cash.Crystal (2008): This is a modern age of shopping malls. one needs to keep several things in mind like the credit card interest rate. Now. offering a 10% discount coupon for every 10 prescriptions filled and paid for with your store credit card. HSBC is market testing a debit card linked to drugstore CSV’s Extra Care rewards program. If you want to live all the luxuries of life. The pitfalls of credit card use are the accumulation of large amounts of debt and the inability to make more than the minimum monthly payment. Grant (2008): Some relief is being offered by a surprising source: credit cards. Even Target is in the game. Limit the number of credit card applications you fill out. Citibank's card offers discounts of up to 60% on prescription drugs. It has become risky to carry cash on the move. you need to have a good bank balance. People like to be updated with the trend. annual fee. you no longer need to save money each month to buy your preferred product. On the other hand. This is why this generation likes to own a credit card. and discounts on prescriptions. watches. . It's important to look out for your own interests. You will pay a finance charge if you don't pay off your balance each month. as well as dental and vision care by paying for their medical expenses with plastic. Credit card companies are in business to make money. and credit line. Credit cards are also convenient for travelers and businessmen. expensive clothes. consumers can earn cash for their health-savings accounts. Consider what you are looking for in a credit card such as the interest rate. expenses are on the rise and there can be times when are in need of money. So.
” We found 85% of (consumers who carry a balance) prefer rewards for paying on time versus rewards on spending.Smart money (2008): When a customer is buried in debt. Margo Georgialis. Now some credit card companies. not one that has a rewards program. choosing a credit card is typically a question of finding the one with the lowest interest rate. After all. a 1% cash-back bonus isn't much of a perk when he is paying 18% or more in annual interest. are trying to convince the customers otherwise by launching credit cards that offer special cash-back rewards meant to appeal to those carrying a balance. According to Mr. the chief marketing officer for Discover." So they are trying to combine these both CHAPTER II INTRODUCTION TO COMPANY . including Discover and Bank of America.
Oman. HDFC covers over 90 locations through its outreach programmes.. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network.] HDFC Bank Type Public (NYSE: HDB) Founded 1994 Headquarters HDFC Bank Ltd. HDFC has an office in London and Dubai and service associates in Kuwait.HDFC's distribution network spans 243 outlets that include 49 offices of HDFC's distribution company. Home loans are also marketed through HDFC Sales. Al Khobar. Jeddah and Riyadh in Saudi Arabia.1 OVERVIEW HDFC or Housing Development Finance Corporation Limited. HDFC Sales Private Limited. Abu Dhabi. Qatar. Sharjah. founded 1977 by Hasmukhbhai Parekh. HDFC Bank Limited and other third party Direct Selling Agents (DSA). is an Indian company which is primarily in the business of providing home loans.To cater to nonresident Indians.INTRODUCTION TO ORGANISATION C. In addition. .
corporate governance and regulatory compliance.Mumbai. and to achieve healthy growth in profitability. service levels. www. corporate governance and regulatory compliance.2 Mission and Business Strategy: Mission of HDFC Bank is to be "a World Class Indian Bank". We are committed to do this while ensuring the highest levels of ethical standards. Credit Cards. Their business strategy emphasizes the following: C. and to achieve a healthy growth in profitability. professional integrity.3 Business focus HDFC Bank's mission is to be a World-Class Indian Bank. Savings.com C. professional integrity. . risk management and audit & compliance. Insurance etc. benchmarking ourselves against international standards and best practices in terms of product offerings. HDFC Bank's business philosophy is based on four core values . technology.Operational Excellence.hdfcbank. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments. Investment vehicles. Product Leadership and People. consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards. India Banking Industry Products Website Insurance Capital Markets and allied industries Loans. Customer Focus. consistent with the Bank's risk appetite. 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.
C. The shares are listed on the The Stock Exchange.3.450 crore (Rs. Mumbai and the National Stock Exchange. all requisite statutory and regulatory approvals for the merger have been obtained. All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23. Roughly 31.510 crore in one of the largest merger in the financial sector in India. 22. CBoP shareholders will get one share of HDFC Bank for every 29 . With RBI’s approval.000 crores. with HDFC Bank Ltd. C.000 shareholders. HDFC will also acquire a strong SME (small and medium enterprises) portfolio from CBoP.167 branches.9 crore (Rs. The balance sheet size of the combined entity would be over Rs.000 crores. 1. a strong deposit base of around Rs.000 crores and net advances of around Rs.5 Merger of HDFC Bank and Centurion Bank of Punjab The Reserve Bank of India has sanctioned the Scheme of Amalgamation of Centurion Bank of Punjab Ltd.1% of the bank's equity and about 19. The combined entity would have a nationwide network of 1. 1.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).4 Capital Structure The authorized capital of HDFC Bank is Rs.1 billion).4.311. 2008. The HDFC Group holds 22. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". HDFC Bank Board on 25th February 2008 has approved the acquisition of Centurion Bank of Punjab (CBoP) for Rs 9. 1949. The paidup capital is Rs. The Scheme has been sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190. 89. 63.5 billion).
shares held by them. Centurion boards approve 1:29 share swap ratio Shareholders of Centurion Bank of Punjab would be eligible to exchange 29 shares into one share of HDFC Bank. This will be HDFC Bank’s second acquisition after Times Bank. . HDFC Bank. This follows the board of directors of the two banks approving on Monday a share-swap ratio of 1:29.
however. Coleman & Co. Downward pressures on economic growth may not immediately translate into an expansionary monetary policy. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India. /Times Group) was merged with HDFC Bank Ltd. effective February 26. C. if not rising.8 Subsidiaries and associate Companies HDFC Bank HDFC Mutual Fund .08. shareholders of Times Bank received 1 share of HDFC Bank for every 5.C.6 Time banks Amalgamation In a milestone transaction in the Indian banking industry. enhanced customer base. The acquisition added significant value to HDFC Bank in terms of increased branch network. expanded geographic reach. 2000..7 Growth The Indian economy seems likely to see some moderation in growth rates in 200809 relative to 2007. system credit growth is likely to be lower than in 2007-08. skilled manpower and the opportunity to crosssell and leverage alternative delivery channels.75 shares of Times Bank. given the continued risks of inflation from global energy and commodity prices. with a lower GDP growth coupled with tighter liquidity conditions (as RBI tackles concerns on inflation) and stable or slightly higher interest rates. Times Bank Limited (another new private sector bank promoted by Bennett. Thus. Nonetheless. structural drivers will continue to support growth which is a positive for banks as well. C. Given India’s strong macro-economic fundamentals. slightly slower credit growth could coexist with firm. interest rates. It is still likely to experience healthy growth in absolute terms and will probably remain one of the fastest growing economies in the world.
9 Technology HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. the Bank has succeeded in leveraging its market position. 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 . The Bank's business is supported by scalable and robust systems which ensure that clients always get the finest services offered. All branches are linked on an online real-time basis. expertise and technology to create a competitive advantage and build market share. C.HDFC Standard Life Insurance Company HDFC Sales HDFC General Insurance Other Companies Co-Promoted by HDFC Financial Information with regard to Subsidiary Companies C. Customers in over 120 locations are also serviced through Telephone Banking. to build the infrastructure for a world class bank. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). which enables the bank to offer speedy funds transfer facilities to its customers.10 Distribution Network HDFC Bank is headquartered in Mumbai. All the bank's branches have online connectivity. The Bank has made substantial efforts and investments in acquiring the best technology available internationally. The Bank at present has an enviable network of over 761 branches spread over 327 cities across India. In each of its businesses. 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.
Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry. 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 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 1977 networked ATMs across these cities. Plus/Cirrus and American Express Credit/Charge cardholders. Being a clearing/settlement bank to various leading stock exchanges. Mr. HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard. industry and commercial banking. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy. The Managing Director. C. Prior to this. Moreover. Board of Directors Jagdish Capoor Chairman / Chair Person Aditya Puri Managing Director Keki Mistry Director Vineet Jain Director Renu Karnad Director Arvind Pande Director . Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director.retail customer base for both deposits and loan products. Aditya Puri. Mr. Capoor was a Deputy Governor of the Reserve Bank of India. Jagdish Capoor took over as the bank's Chairman in July 2001. Senior executives representing HDFC are also on the Board. administration.11 Management Mr. the bank believes that its people are a significant competitive strength. Visa Electron/Maestro.
trade services. mutual funds. C. the Bank provides a wide range of commercial and transactional banking services. transactional services. The bank has three key business segments: C. giving the customer a one-stop . blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. The bank is also a leading provider of structured solutions.12 Business Profile of HDFC Bank HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. For these customers. etc. 14 Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers.13 Wholesale Banking Services The Bank's target market ranges from large. stock exchange members and banks. which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. including working capital finance. cash management.Ashim Samanta Director C M Vasudev Director Gautam Divan Director Pandit Palande Director Harish Engineer Executive Director Paresh Sukthankar Executive Director C.
Personal Loans and Loans for Two-wheelers. advice and product structures. C. Phone Banking. the bank is required to hold 25% of its deposits in government securities. With the liberalization of the financial markets in India. These and fine pricing on various treasury products are provided through the bank's Treasury team.15 Treasury Within this business.HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. Local Currency Money Market & Debt Securities.Foreign Exchange and Derivatives. the bank has three main product areas . The Treasury business is responsible for managing the returns and market risk on this investment portfolio. Net Banking and Mobile Banking.window for all his/her banking requirements.16 RATING Credit Rating . It is also a leading provider of Depository Participant (DP) services for retail customers. as well as through alternative delivery channels like ATMs. The Bank also has a wide array of retail loan products including Auto Loans. corporate need more sophisticated risk management information. C. and Equities. To comply with statutory reserve requirements. The Bank launched its credit card business in late 2001. The products are backed by worldclass service and delivered to the customers through the growing branch network. Loans against marketable securities. providing customers the facility to hold their investments in electronic form.
which represents instruments considered to be "of the best quality. The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. Both Credit Rating and Information Services of India Limited (CRISIL) and ICRA Limited (ICRA) have for the eighth consecutive year. HDFC Bank has bagged the Business Today's Best Bank Award. rated and awarded by a number of organizations. which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency. C. . reaffirmed their 'AAA' rating for HDFC's deposits and bonds. awards and recognition have been conferred on your Bank by leading domestic and international organizations during the fiscal 2007-08.17 Awards and Recognition Over a decade of its operations. As in the past years. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest. carrying negligible investment risk”. HDFC Bank has been recognized.The Bank has its deposit programs rated by two rating agencies . The Bank's Fixed Deposit programmed has been rated 'CARE AAA (FD)' [Triple A] by CARE. Some of them are: * For the fifth consecutive year. Corporate Governance Rating The bank was one of the first four companies.Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. This rating represents 'highest safety as regards timely repayment of principal and interest'. The Credit Rating Information Services of India Limited (CRISIL).
1.' There were 26 categories in all.HDFC bank shared the top slot with another bank * The Asia Pacific HRM Congress in Mumbai . mutual funds. in 325 cities in India.It is a path breaker in the Indian banking sector.716 ATMs. C. * Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Award. * 'Dun & Bradstreet -American Express Corporate Best Bank Award 2007. * Business Today Survey conducted by the Monitor Group Innovation Study HDFC Bank is one of India's most innovative 28 companies across ten major business sectors * The `Asian Banker Excellence in Retail Financial Service Awards'.* Outlook Money and NDTV Profit's Best Bank in the private sector category.Bank bagged as many as ten awards including "Organization with innovative HR Practices". Telecom and Software & IT. * The Financial Express-Ernst &Young Best Bank award in the Private Sector category .18 Branches of HDFC Currently HDFC Bank has 758 branches. trusts. partnerships. financial institutions. governments. including FMCG. corporates.The Best Retail Bank in India. and all branches of the bank are linked on an online real-time basis. In 2007 HDFC Bank . The bank offers many innovative products & services to individuals. insurance companies.
Fixed Deposit: If you believe in long-term investments and wish to earn higher interests on your savings. on May 23. Check up on your balances from the comfort of your home or office through Net Banking. Though. Flexibility. What's more no penalty if you withdraw part of the FD in times of need. A Current account is ideal for carrying out day-to-day business transactions. the official license was given to Centurion Bank of Punjab branches. Need money urgently? Withdraw cash from any of the1794 ATM centers spread across the country.acquired Centurion Bank of Punjab taking its total branches to more than 1. Get up to 9. 2008 C. HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments. . Security and High Returns all bundled into one offering. allowing you to make your payments without carrying large sums of money with you. draw Demand Drafts and withdraw cash.75% on HDFC Bank Fixed Deposit with an additional 0. Accounts and Deposits Saving Account: An easy-to-operate savings account that allows you to issue cheques.19 HDFC Product Range HDFC Bank India provides the following range of products: 1. Current Account: Having a current account with HDFC Bank is the best way of conducting your financial activities with ease. Phone Banking and Mobile Banking. without the hassle of handling physical documents that get mutilated or lost in transit.50% for Senior Citizens. Demat account: HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8 Lac demat accounts.000. to continue working as HDFC Bank branches. NOW is the time to invest your money in our Fixed Deposit. over a period of time.
As a valued customer you benefit from our Relationship Pricing Programmer with exclusive offers such as a free Gold International Debit card. order cheque books. Avail of an overdraft facility of up to 75% of the value of your Deposit. A deficit in your Savings or Current Account is taken care of by using up an exact value from your Fixed Deposit. loans at preferential rates. etc Sweep-In Account: Do you wish to avoid taking overdrafts.Hdfc bank preferred: How would you like a banker dedicated to take care of all your banking requirements and suggesting ways to invest your money with good returns from time to time? If you're a seasoned professional or have been running a successful business over the years.. a free International Titanium card or a free International Gold Credit Card. Get the best of both worlds. the HDFC Bank Preferred Program is meant for you. Since deposits are broken down in units of Re 1/-. Super Saver Account: Enjoy a high rate of interest along with the liquidity of a Savings Account by opting for a Supersaver Facility on your savings account. HDFC India innovative services ATM: 24-hour access to cash. you will lose interest only for the actual amount that has been withdrawn. recharge your prepaid card. and still take advantage of your Fixed Deposits? Then what you need is a Sweep-In Facility on your savings account. all from our wide network of over 1200 ATMs. view mini-statement. .. 2. Link your Fixed Deposit to your Savings or Current Account and use it to fall back on in case of emergencies.
Insta Alert: Now you can get regular updates on your bank account on your mobile phone or email ID. What’s more you can check the bill amount before you make any payments ensuring you always pay the right amount. you have the luxury of paying your telephone. Just register for our Insta Alert service and receive updates on your account as and when the select transaction happens . Bill Pay has made all your bill payments easy. anywhere. The sophisticated computerized network gives you the flexibility of accessing your Savings or Current Account from any of our over branches and over ATMs across India.anytime. electricity and mobile phone bills at your convenience through the Internet. a comprehensive bill payments solution. who will provide you with the required assistance. Bill Pay: Now. You may also talk to a Phone Banker.using Bill Pay. ATMs. Net Banking lets you manage your account from the comfort of your mouse .all this without visiting the branch or ATM . You can open an account at any branch nearest to your residence or office and access it at any branch in the city or anywhere in the country.Net Banking: Net Banking is HDFC Bank's Internet Banking service. Branch Banking: Welcome to the networked world of HDFC Bank. with our unique Mobile Banking service. your mobile phone or telephone . Mobile Banking: Your Mobile is now your bank! Now access your bank account and conduct a host of banking transactions and inquiries through your mobile. Phone Banking: When you dial in to Phone Banking. Providing up-to-the-second account information. a voice prompt will guide you through the various transactions.
3. your loan gets processed faster. The procedure is simple. The procedure is simple. Loans Whatever your need. documentation is minimal and approval is quick. Two Wheeler Loan: With flexible payment options and easy repayment. Over 3 decades of exclusive experience. Express Loan: We now offer Express Loans Plus at your Doorstep to help fulfill all your needs. HDFC Home Loans. our range of loans can help Personal Loan: A wedding in the family? Maybe your house needs renovation? Our range of Personal Loans brings you one step closer to your dreams. our Two Wheeler Loan offers the perfect excuse to purchase that bike you've always wanted. Gold Loan: With HDFC Bank's Gold Loan. Educational Loan: Bridging the gap between you and higher education . help you realize your dream. documentation is minimal and approval is quick. Car Loan: If you are a salaried individual holding any of the credit cards mentioned below. Home Loan: HDFC Bank brings HDFC home loans to your doorstep. you can get an instant loan against your gold jewellery and ornaments. a dedicated team of experts and a complete package to meet all your housing finance needs.
conducting cashless shopping. NSC. Choose from: . Mutual Fund Units. Loans against Rental Receivables: Need additional funds for your business? Our Loan against Rent Receivables gives you the perfect opportunity to supplement your regular cash flow. 4. Tractor Loans: If you are looking for finance to buy your tractor. you will find a card that suits you. Flexibility to choose between an EMI based loan or an Overdraft. Credit card: Besides arming you with unmatched spending power. or budget your expenditure. Cards Our range of Cards helps you meet your financial objectives. UTI Bonds (6. GOI Relief Bonds. KVP. Debit card: What if you could carry your bank account with you? HDFC Bank Debit Cards give you complete and instant access to the money in your accounts without the risk or hassle of carrying cash. Loans against Property: Get a loan against your residential or commercial property. LIC Policies. you have come to the right place.Loans Against Securities : Get an overdraft against your securities like Equity Shares. So whether you are looking to add to your buying power. The best credit cards are available here. our Credit Cards are designed to meet your unique needs. Choose one that's tailored for you. including even the online credit cards service Netsafe. We offer hassle-free Tractor loan with the best terms for funding at the most attractive rates in India.60% ARS Bonds & US64 Bonds).
Investment and Insurance Mutual funds: Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. 6. investment and protection needs. transfer monies to India.Prepaid card: Besides offering convenience. inaugurated HDFC Bank's new branch at Shillong in Meghalaya. Regional Business Manager. our Prepaid Cards have been tailored to answer your travel and gifting needs. HDFC Bank has a range of products and services that you can choose from to transact smoothly. retirement. risk adjusted returns. Mutual Funds could be Equity funds.. East. Madhusudan Hegde. . efficiently and in a timely manner. Choose from a range of traditional insurance and unit linked plans designed to help you with your savings. 5. make payments etc. Forex and Trade Services: If you need to deal in foreign currency and keep tabs on exchange rates every now and then. C.20 Recent Achievements and milestones 500th Branch Inaugurated HDFC Bank has now got 500 branches and over 1200 ATMs at 220 locations across the country. Debt funds or balanced funds. It crossed the important milestone when Mr. Insurance: Life insurance is designed to offer financial protection for you and your family during the times of uncertainties. Funds are selected on quantitative parameters like volatility. FAMA Model. and rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers.
168 branches in the West and 53 branches in the East region.. but in small towns and under banked regions as well. Vikram Mehmi. C. The vast network of branches and ATMs helps us reach out to our customers. have launched a range of co-branded products. which is reflected in the overall performance of the bank. The Co-Branded products were unveiled by Mr. and a presence in 220 locations spread over 24 states across the country. CEO. "Crossing the 500-branch landmark is an important occasion for us. Aditya Puri." HDFC Bank-IDEA Credit Card launched In an exclusive nationwide marketing alliance. and Mr. HDFC Bank said. Managing Director. An HDFC Bank-Idea CoBranded VISA Credit Card for subscribers of Idea Cellular and an Idea-HDFC Bank Co-Branded postpaid connection for credit card customers of HDFC Bank. Speaking about the landmark. HDFC Bank and IDEA Cellular Ltd. IDEA Cellular Ltd. 102 branches in the South. The alliance targets at bringing best-in-class products to customers of both Idea Cellular and HDFC Bank. not just in the metros. Our presence and proximity in 220 locations has enabled us to strengthen our relationships across various categories of product offerings. Aditya Puri.HDFC Bank has got 177 branches in the North. Managing Director. Mr. HDFC Bank Ltd. The HDFC Bank-Idea co-branded VISA credit card is available in Gold and Silver variants.21 Future Prospects .
higher income levels amongst the growing middle class. the changing attitudes towards borrowings. and significant opportunities lie for banks here where the penetration of credit and financial products is still relatively low. Although growth in retail credit has moderated in the last year.2004 2002 – 2003 2001 – 2002 85% 70% 55% 45% 35% 30% 25% . Cyclical slowdown is unlikely to impact segments of the economy such as agriculture where a structural shift is under way.22 PERFORMANCE OF HDFC BANK Details of dividend declared by the Bank: 2007-2008 2006-2007 2005 – 2006 2004 . This presents a major opportunity for banks and financial institutions to finance these investments.The financial system in India has witnessed considerably less turmoil and volatility than that in advanced economies. C.. Given this scenario. The eleventh five year plan (2007-2012) envisages an investment of USD 500 billion. all augur well for the long-term. the shift in demographics towards a higher proportion of younger working population.2005 2003 . sustainable growth of retail lending in the Indian market. The central and state governments appear to be driving an ambitious programme in the infrastructure sectors. the low penetration levels of retail credit (estimated at less than 12% of GDP). domestic corporates are more likely to turn to local sources of funding. cars etc. with approximately USD 80 billion envisaged for 2008-09 alone. The rural economy has been the greater focus of government policy in recent years. and the large pent-up demand for housing.
1998 1996 – 1997 20% 16% 13% 10% 8% C.9% to Rs.7 crores in the quarter ended June 30.1.2000 .5 crores) and (loss) on revaluation/sale of investments of Rs.2 crores.0%.1 crores for the Corresponding quarter of the previous year. 2007 Rs 146.1%. Fees and commission was the main contributor to other income for the quarter and increased by 37.2000 1998 . 2008 Total income for the bank for the quarter ended June 30. Other income (non-interest revenue) for the quarter ended June 30.2 crores in the quarter ended June 30.6% to Rs.4.7 crores in the Corresponding quarter ended June 30. Net revenues (net interest Income plus other income) were Rs.4 crores (corresponding quarter ended June 30.4 crores as against Rs.3% to Rs. 2008 grew by 59.1.572.3.23 FINANCIAL RESULTS: Profit & Loss Account: Quarter ended June 30. 2008.2. up by 75. an increase of 48.5 crores. 723.0% and a core net interest margin of just over 4. 2007. 2008 was Rs.1999 1997 . driven by average asset growth of 68. 558. Interest earned (net of loan Origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs.157.593. 621. 2008.7% over Rs. The other two major components of other income were foreign exchange/derivatives revenues Of Rs. (77.6) crores.2.2.9 crores for the quarter ended June 30.52.2 crores as against Rs. 2007 to Rs.5 crores for the quarter ended June . 316.6 crores for the quarter ended June 30. Net interest income (interest earned less interest expended) for the quarter ended June 30. 069. 2008 increased by 74. 641.511. 2007.2001 1999 . as against profit of Rs. 215.
1.324.6% over the quarter ended June 30. Ratio analysis is a technique of analysis and interpretation of financial statements.344.47 =1.13 1957.7 crores for the quarter ended June 30.1 crores for the corresponding quarter ended June 30.218. in crores 2005-06 4207.4 crores against Rs.45 1758. Operating expenses for the quarter ended June 30.49 =1. 2007. 2008 were at 30. an increase of 44.24 Financial Analysis of HDFC Bank Limited a) Ratio Analysis A ratio is an arithmetical expression of the relationship of one number to another.5 crores (against Rs. 299.40 =1.307.464. 2007.7 crores for taxation.36 Interpretation:- . 2007).4 crores. Provisions and contingencies for the quarter were Rs. comprising Primarily of specific provisions for non-performing assets and general provisions for standard assets of Rs. Liquidity Ratio a) Current Ratio: Current ratio is defined as the relationship between current assets and current liabilities. Current Ratio =Current assets/ Current liabilities Rs.7% of net revenues.30.52 2003-04 2396. the Bank earned a Net Profit of Rs. 2007.6% of total income and 55.30 2208. C.90 2004-05 2982. After providing Rs. A financial ratio is the relationship between two accounting figures expressed mathematically.
This ratio is calculated to know the firm’s ability to meet its current obligations. Ratio has been improved from 2003-04 to 2005-06, it is near to the rule of thumb i.e 2:1. So the liquidity position of company is considered to be satisfactory. 2. Leverage Ratios a) Debt equity Ratio:-Debt equity ratio is calculated to measure the relative claims of outsiders and the owners against the firm’s assets. Debt-Equity Ratio = Outsiders funds Shareholders funds Rs. in lacs 2006-07 328260 643315 =0.51 Interpretation:The ratio indicates the proportionate claims of owners and outsiders against the firm’s assets. Ratio has been increased from 2004-05 to 2006-07. Company’s debt equity ratio is considered to be satisfactory because usually 1:1 ratio is considered to be satisfactory. 3. Profitability Ratios a) Operating Ratio: - Operating ratio establishes the relationship between cost of goods sold and other operating expenses on the one hand and the sales on the other. 2005-06 170200 529953 = 0.32 2004-05 50000 451985 =0.11
Operating Ratio = Operating Cost * 100 Net Sale Rs. in lacs 2006-07 242080 2005-06 169109 2004-05 108540
522580 = 46.32%
366982 = 46.08%
222927 = 44.68%
Interpretation: - Above figures shows that operating cost of company has been increased. On the other hand sales of company are also increased. So this ratio is favorable for the company b) Net Profit Ratio: - Net profit ratio establishes a relationship between net profit and sales, and indicates the efficiency of the management in manufacturing, selling and other activities of the firm.
Net Profit Ratio = Net Profit After tax * 100 Net Sales Rs. in lacs 2006-07 114145 2005-06 87078 2004-05 66556
522580 = 21.84% 366982 = 23.73% 242927 = 27.40% Interpretation: - Above figures shows that ratios are going on decrease which indicates that the profitability of company is not good. Performance of profits in relation to sales is not good. 4. Over all Profitability Ratios a) Return on Shareholders Investment:Return on Shareholders Investment = Net Profit After Interest and Tax Shareholders fund Rs. in lacs 2006-07 2005-06 2004-05
66556 451985 = 14.73%
63315 = 17.74% 529953 = 16.43%
Interpretation: - The ratio is going on increase. Investors would like to invest, where returns are higher. Above ratios gives the idea of growth in the companies profitability and efficiency. b) Trend Analysis The financial statements are analyzed by computing trends of series of information. This method determines the direction upwards or downwards and involves the computation of percentage relationship. 1. Trend analysis of Turnover (Interest income) Year Turnover(in lacs)
700000 600000 500000 400000 300000 200000 100000 0 2 0 0 22-0 0 32- 0 0 42-0 0 52- 0 0 6 03 04 05 06 07
T u r n o v e r ( in l a c s )
Interpretation: - Above graph shows that interest income has continuously increased in all years. Increase in interest income is quite satisfactory 2. Trend analysis of Profit after Tax Year 2002-03 Profit After Tax 38760 2003-04 50950 2004-05 66556 2005-06 87078 2006-07 114145
. in c rore s ) Interpretation: .(Rs.above graph shows that earning per share has continuously increased.Profit after tax has substantially increased.0 0 6 03 04 05 06 07 E a r n in g P e r S h a r e ( in R s . 3. It means the performance of concern is good.95 200405 22.) Interpretation: .92 2006-07 36.92 2005-06 27. in crores) 120000 100000 80000 60000 40000 20000 0 2 0 0 22-0 0 32.0 0 42.0 0 52.) 40 35 30 25 20 15 10 5 0 2 0 0 22.0 0 6 03 04 05 06 07 P r o f it A f t e r T a x ( R s .29 03 Earning Per Share 13.75 (in Rs. Trend analysis of Earning per Share Year 20022003-04 17. In five year period it is more than doubled.0 0 32-0 0 42-0 0 52.
1 PROFILE Branch in Ludhiana .SECTION D INTRODUCTION TO TRAINING UNIT D.
30 pm Weekly Off: Sunday D.30 am to 3.30 pm Weekend: Saturday. Timings: 9. Timings: 9.2413671 / 5035875 0161 . 11Am on Sat High Value Cut of Timing Weekday: Monday to Friday.141001 Punjab Tel Fax ATM Lockers 0161 .Area Address Ferozpur road Barewal road Ludhiana .2 ORGANISATION STRUCTURE .5089503 YES YES 1PM.30 am to 12.
3 Business Strategy .Branch Manager Back up Br. Manager Relationship manager Sales manager PBA PBA Teller authority Personal Banker Team Leader Personal Banker Teller Sales Team Personal Banker Personal Banker D.
Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. 3. Increase the market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on balancing quality and quantity and on delivering a high quality customer services.1. 2. Continue to develop products and services that reduce our cost of funds and focus on high earning growth with low volatility. Maintain high standards of asset quality through disciplined credit risk management.4 SWOT Analysis of Training Unit:Strengths . 4. D.
• Popular brand name • Standard services • Technological up gradation of system • Products and services are superior • Good parking space • Good location Weaknesses • Weak financial position • Employees turnover • Lack of cordial relations among the employees • Less facilities as compare to other branches Opportunities • Untapped rural market • Serve the additional customer groups by providing wide range of products and services • To expand in terms of new market or product segment • Use of latest technology in business Threats • Stiff competition in the market Less amount AQB (average quarterly balance ) maintained by other banks .
CHAPTER III OBJECTIVES OF STUDY Every research study has an objective. we cannot conduct a research. Objective tells . Objective is like our goal of any research study. Until we have an objective.
us the motive and right path of the study. 2. This study focused on the consumer perception regarding the credit cards of HDFC Bank 1. After deciding the objective we can choose the right path of our study. To know about the causes of dissatisfaction of customers regarding the credit card of HDFC Bank. 3. To know about the quality of the credit card services being provided by HDFC Bank. . To suggest changes for improvement of credit card .
organizing and evaluating data. making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. It may be understood as the science of studying how research is done scientifically. formulating hypothesis or suggested solutions. According to Clifford Woody. . “Research comprises defining and redefining problem.” Research methodology is a way to systematically solve the research problem.CHAPTER RESEARCH METHODOLOGY Research Methodology Research can be defined as a scientific and systematic search for pertinent information on a specific topic. collecting.
Population: Population refers to part of universe from which the sample for conducting the . The research design for my research is exploratory. it constitutes the blueprint for the collection.e.Need of Research: The need of this research is to check the level of awareness and satisfaction of consumers regarding the credit cards of HDFC bank among the customers and to find the reasons for using those credit cards. Sample design may as well lay down the items to be included in the sample i. Sample design is designed before data are collected. literature on banking Sampling unit: LUDHIANA Sample size: 50 respondents Sampling Design: Sample design is a definite plan for obtaining a sample from a given population..e. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. the research design is the conceptual structure within which research is conducted. Data Sources: The task of data collection begins after a research problem has been defined and a research design has been chalked out Two types of data sources have been used: Primary Data: Direct data collection through questionnaire. the size of the sample. measurement and analysis of data. There are many sample designs from which a researcher can choose. In fact. Research Design: Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Secondary Data: Indirect data sources i. reports.
but in case of infinite the number of item is infinite i. It should be optimum. It may be finite or infinite. we cannot have an idea about the total number of items. The population for this study is all the customers who have account in any bank. . An optimum sample is one which fulfills the requirement of efficiency. reliability and flexibility. Universe and population can be same in some researches. The size of the sample should neither be excessively large. Sampling Unit: Sampling unit refers to smallest possible individual eligible respondent.. In finite universe the number of items is certain. non-probability convenience sampling is opted for.research is selected. The sample size for my research is 50. Sampling Techniques: In this research study. Sampling Size: This refers to the total number of respondents selected from the universe to constitute a sample. representative ness. In my study the sampling unit is single individual who have Credit cards of HDFC Bank.e. nor too small. Convenience sampling is done purely on the basis of convenience or accessibility.
CHAPTER RATIONALE OF THE PROJECT .
It taught the way of working in a corporate. towards . like It gave a chance to work with renown corporate which helped to have a look upon what actually a ‘Corporate World’ is.RATIONALE OF THE PROJECT In rationale of project the discussions are about various benefits that are achieved while working the project. The project has changed many things in the daily routine life like punctuality. It helped to become comfortable with different type of situations that a person faces during his tenure of working and also provided me adequate exposure related banking services. stress situations and most important the way of different things. The project has helped to become more familiar with Microsoft Office even more than earlier. like how to deal with different type of situations as well as persons.
.CHAPTER DATA ANALYSIS AND INTERPRETATION Data Analysis and Interpretation HDFC’s Credit card holding period.
It is clear from the research that majority of people have started to purchase it since last 1 .Holding Period Less Than 1Year 1 To 2 Years 2 To 5 Years More Than 5 Years Total Responses 21 19 10 0 50 Percentage 42% 38% 20% 0% 100% HDFC credit card holding period More Than 5 Years 0% less than one year 42% less than one year 1 To 2 Years 2 To 5 Years More Than 5 Years 2 To 5 Years 20% 1 To 2 Years 38% Interpretation: Though Credit card is very old concept. FACTORS Status symbol RESPONSES PERCENTAG 5 10% 2 4% 20 40% Imitating others Convenience Don’t for purchasing want to carry cash 23 46% 0 0% 50 100% Any other Total . . But it gains more importance since last few years only.Factors influencing people to purchase HDFC credit cards.2 years only.
Purposes for using credit card. PURPOSE Shopping For paying Bills RESPONSES 24 12 5 For E.For mobile cards 7 2 50 Other Reason Total Shopping recharging . Also it causes them convenience of purchasing. It is convenient for them to carry a credit card. So they own it because they feel it is safer.E factors influencing purchase of credit cards Any other 0% Status symbol 10% Imitating others 4% Convenienc e for purchasing 40% Status symbol Imitating others Convenience for purchasing Dont want to carry cash Any other Dont want to carry cash 46% Interpretation: The most important factor that influences the purchase of credit card is that the people do not want to carry cash along with them when they go for shopping or for any of their expenses. Very few people think that they use credit cards just for imitating.
Frequency Once in a week Responses Percentage 17 34% Once in a month 13 26% More than once in a month 20 40% 50 100% Total .PERCENTAG E 48% 24% 10% 14% 4% 100% Other Reason For 4% recharging mobile cards 14% For EShopping 10% For paying Bills 24% Purpose for using credit cards Shopping For paying Bills Shopping 48% For E-Shopping For recharging mobile cards Other Reason The main purpose of using credit card according to majority of people is shopping because at most of the times the amount to be spent on shopping is not pre planned and with the help of credit cards they do not have to worry for the cash which they need if the shopping expenses rises. Frequency of using credit cards.
Services Responses Percentage Insurance Services 25 50% Cash back services 20 40% Any other 5 10% Total 50 100% . People have started to use their Credit cards on weekly basis.Frequency of using credit cards More than once in a month 40% Once in a week 34% Once in a week Once in a month More than once in a month Once in a month 26% Interpretation: Majority of people use credit cards more than once in a month as it has become a necessity in their life and they can shop when ever they want. Services of credit card offered by HDFC. Credit card’s usage rate has been increased.
Amount Responses Percentage Less than 10000 17 34% 10000-20000 10 20% More than 20000 23 46% Total 50 100% .Services offered Any other 10% Insurance Services 50% Insurance Services Cash back services Any other Cash back services 40% Interpretation: majority of people think that the bank offers them most of insurance services as compare to cash back services or any other kind of service Amount of credit card provided for credit shield.
Majority prefer to hold a Credit card with more credit shield.Credit shield More than 20000 46% Less than 10000 34% Less than 10000 10000-20000 More than 20000 1000020000 20% Interpretation:People hold those credit cards which provide credit shield according to their need. Miscalculation Responses Percentage Yes 18 36% No 32 64% Total 50 100% . Many of the people had credit shield availability more than 20000 Miscalculation of value of transaction.
Miscalculation of value Yes 36% Yes No 64% No Interpretation: majority of people think that they have never gone through miscalculation of the value of their credit transaction but still there are people who are facing this kind of problem Fulfillment of Promised facilities at the time of issuance. Fulfillment Responses Percentage Yes 40 80% No 10 20% Total 50 100% .
Problems regarding credit cards. Problems Faced Yes Responses 20 Yes Responses No 30 Total 50 .Fulfillment of promises No 20% Yes No Yes 80% Interpretation: majority of people think that that the bank has fulfilled the promises which they made at the time of selling the credit card to the customers but only few people think that they are not being fulfilled.
Problems Hidden Charges Long Processing Time 7 35 Documentation Total Responses Percentage 12 60 1 5 20 100% Documentat ion 5% Long Processing Time 35% Problems Hidden Charges Long Processing Time Documentation Hidden Charges 60% Interpretation: the problem which many people feel regarding credit card is the hidden charges behind them. Reliability of Security given to the bank regarding credit cards Reliable Responses Percentage Very Much 15 30% Average 30 60% Very Less 5 10% Total 20 100% . Also the long processing time worries them.
Reliability Very Less 10% Very Much 30% Very Much Average Very Less Average 60% Interpretation: majority of people neither rely too much on the security offered by the HDFC bank regarding credit cards nor they are denying this factor but they think security to be average Satisfaction towards bank’s services. Satisfied Responses Percentage Yes 45 90% No 5 10% Total 50 100% .
. May be they expect more from the bank.Satisfaction No 10% Yes No Yes 90% Interpretation: nearly all of the people are satisfied with the services offered by the bank except few exceptions.
Another reason is hidden charges. Suggestion . 3) There is some problem in the technology works behind the working of credit cards.CHAPTER FINDINGS AND SUGGESTION Finding 1) Credit cards have gain more importance since last few years only. 2) Most of the people prefer to own a Credit card because it facilitates purchasing and people do not want to carry cash with them. 4) Cards are witnessing a gradual expansion to more cities with more segments getting covered and with more and more customers preferring to make credit card payments to cash. This is one reason behind the dissatisfaction of cardholders. So they own it because they feel it is safer. It is clear from the research that people have started to purchase it since last few years only.
So that can be improved. 4. Though the competition is very much the bank should decrease their interest rates. 3 Given the competitive nature of the market. 2. Some customers complained that the bank is not sending the bank statements properly. The card should be resold to the customers who have already stopped the credit card services due to some problem by solving their particular problems. as a result of this the customers are facing a problem to pay the bills on time. HDFC need to deliver superior service in order to retain their customers. More and more services should offer along with Credit cards as it is an effective way to attract more customers CHAPTER LIMITATION OF STUDY . 5. and the bank is charging late fees.1.
LIMITATIONS OF THE STUDY Although I have done sincere efforts to collect the relevant information. DIFFICULT TO GET INFORMATION: . .This study is based on the assumption that responses are true & factual although at times that may not be the case. So results of study may not be generalized. OUTPUT MAY BE INACCURATE: .The scope of study is limited to Ludhiana only because of limited time & money. the study may have the following limitations:LIMITED SCOPE: .It was very difficult for me to get fulfill the forms because of respondent’s busy schedule & not providing me sufficient time to fill the form seriously.
com/2008/07/hdfc-bank-2007-2008-annualreport.htm http://deadpresident.blogspot.Though every care has been taken to eliminate such biases.emeraldinsight.major-media.html . but considering the human factor the possibility of small bias having come up cannot be ruled out altogether.html http://inventors. .DYNAMIC BEHAVIOUR OF CUSTOMER: . BIASNESS: .com http://www.google.com/od/cstartinventions/a/credit_cards.com/learning-resources/customer-retention-lit.about.htm http://www.jsessionid=18DB603 D0BEFFE7A3013B0B4DBCD01D4? Filename=Published/EmeraldFullTextArticle/Articles/0750180102.com/Insight/ViewContentServlet. finding of today may become invalid tomorrow. BIBLIOGRAPHY Reference to web page: http://www.Customer behavior is dynamic in nature & thus over the time.
html http://www.misysbanking.htm http://www.scribd.businesswireindia.hinduonnet.aspx http://www.pdf http://www.http://nmccvikas.com/mentor/2008/03/03/stories/2008030350391 200.thehindubusinessline.networkmagazineindia.cfm/214418?articleid=214418 cvc.2008 .asp?b2mid=3164 http://www.nic.com/article_detail.2008 Business Today mar 23.com http://www.com/businessline/blnus/17281533.com/iw/2008/08/17/stories/2008081750821100.com/hdfc/ www.cardbhai.com/200305/tech3.htm http://www.gov.amazines.com http://www.creditcardtipsetc.com/pressrelease.in/ComptitivenessManagement/SMEFinanceCredit/CommercialBanksI nitiatives/Pages/HDFCBank.com/Newsroom/Press_Releases_2007/pr_items/pr_932 0.com/doc/3757602/centurion-bank Magazine Business Today feb 24.in/vscvc/cvcspeeches/sp21jan02. htm http://www.hdfcbank.shtml http://www.thehindubusinessline.
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