New To Bank- Acquisition

SIP project report

Submitted in partial fulfillment of the requirements for the

PGDM Program

2018-2020

By Shubham Mehta

18PGDM179

Supervisors: 1. Mr. Bikram Kalra

2. Prof. Nalin Jain

International Management Institute, New Delhi

2018-2020
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. Bikram Kalra, Branch Manager, First
India Place Branch, HDFC Bank, Gurgaon for his guidance, monitoring and encouragement
during the intial course of my research. Under his mentorship, I had freedom to pursue my
research and I was given sufficient opportunity to do the same.

I would also like to express my immense gratitude and deep regards to Mr. Shakti Baral,
Branch Operations Manager, First India Place Branch, HDFC Bank, Gurgaon for his cordial
support, valuable information and guidance, which helped me throughout the various stages
of my internship.

I would also like to extend my heartfelt thanks to my faculty guide, Prof. Nalin Jain for
giving his valuable time in monitoring my project.

Finally, I extend my sincere thanks to the entire team at HDFC Bank for providing me
with a great learning experience and giving me an opportunity to interact with their valuable
customers. I also would like to extend my humble gratitude to the whole team for entrusting
some of their crucial data with me and treating me as a part of their team.
 DECLARATION BY STUDENT

I Shubham Mehta, student of International Management Institute, New Delhi Roll No.
18PGDM179 has completed my Summer Internship at HDFC Bank (First India Place Branch)
and has submitted this project report entitled A Study on how to acquire New Customers for
Banking Sector towards partial fulfilment of the requirements for the award of the Post
Graduate Diploma in Management (PGDM) 2018-2020.

This Report is the result of my own work, no part of it has earlier comprised any other report,
monograph, dissertation or book.

--------------------------

Shubham Mehta
 CERTIFICATE

This is to certify that Mr. Shubham Mehta, student of International Management Institute, New
Delhi Roll No.18PGDM179 has completed his summer internship at HDFC Bank (First India
Place Branch) and has submitted this project report entitled A Study on how to acquire New
Customers for Banking Sector towards partial fulfilment of the requirements for the award of
the Post Graduate Diploma in Management (PGDM) 2018-2020.

This Report is the result of his own work and to the best of my knowledge, no part of it has
earlier comprised any other report, monograph, dissertation or book. This project was carried
out under my overall supervision.

Date:

Place:

-----------------------
Mr. Bikram Kalra
Branch Manager
FIP Branch, HDFC Bank
 TABLE OF CONTENTS

Topic Page No

1) Executive Summary ……………………………………………………….……..…...…....1

2) Chapter 1: Introduction

1.1 Indian Banking Industry Analysis……..…..…………………………………........2

1.2 Government Initiative………..………….…………………………………………2

1.3 Future of Banking Industry…..…………………………………………………….3

1.4 Porter’s Five Forces….……….………………..…………………………………..4

3) Chapter 2: Objective

2.1 Relevance of Study …………….……………..………………………….…..……5

2.1 Literature Review ……………………………...…………………..……………...5

2.3 Objective of Study ………………………………………………………..……….6

4) Chapter 3: HDFC Bank Limited

3.1 Key Fundamentals ……….…………………………………………………….......8

3.2 Core Values, Mission and Vision………………………...………………………..8

3.3 SWOT Analysis…………………..………………………………………….…….9

3.4 Working of Department…………………………………………………………..11

3.5 HDFC Bank Products...…………….……………………………………………..12

3.6 About the Branch…………………….…………………………………………...13

5) Chapter 4: Research Methodology

4.1 Project Design……………………….……………………………………………15

4.2 Field Work………………………………………………………………………..17

4.3 Data Collection Methods…………………………………………………………21

6) Chapter 5: Data Analysis………………………………………………………………….22

7) Chapter 6: Result of the Study ……………………………………………….…………...33

8) Chapter 7: Recommendation ……………………………………………………………...35

9) Chapter 8: Limitation of the Study ……………………………………………………......36

10) Chapter 9: Further Scope of the Study ……………………………………………….….37

11) Annexure ………………………………………………………………………………...38

12) Bibliography……………………………………………………………………….……..40
 LIST OF FIGURES

Topic Page No

1) Indian Banking Industry Analysis…………………………………………………………..2

2) Porter’s Five Forces Analysis……………………………………………………………….4

3) HDFC Bank Core Values…………………………………………………………….……..9

 LIST OF TABLES

Topic Page No

1) Fundamentals of HDFC Bank………………………………………………………………8

2) Leads generated during Portfolio Calling………………………………………………….16

3) Leads generated during Dukandar Dhamaka Drive………………………………………..18

4) Leads generated during Corporate Drive…………………………………………………..20

5) Crosstabulation Recommendation and Annual Income…………………………………....24

6) Crosstabulation Recommendation and Gender…………………………………………….25

7) Crosstabulation Recommendation and Age………………………………………………..26

8) Factor Analysis…………………………………………………………………………….27

9) Rotated Component Matrix………………………………………………………………..27

9) Calculated Chi-Square Values for different factors……………………………………….32

 EXECUTIVE SUMMARY

Customer Acquisition and Customer Retention for any bank is an important parameter in the
growing competition. HDFC Bank which is one of the fastest growing banks also focuses on
both the parameters. Building Customer Loyalty is also a prime objective. Cross-selling
products and services that are currently not avail by the customers is one of the focus points.

It was found and observed during the internship that not only most customers with HDFC Bank
are satisfied but they are also impacting the bank in a positive manner by recommending the
same to other thereby creating a very strong word-of-mouth factor to other customers.

The internship focused on knowing the products and services of HDFC Bank to start with. The
process of sale right from prospect to pitching to conversion was practically comprehensive
during the internship where in the products were pitched both to the retail and the corporate
segment via different drives. Cross-selling and upselling of the products of banks to walk-in
customers and to other customers through a targeted database via personnel visit or over
telephony.

A Customer Survey was initiated to determine the level of satisfaction with various factors
used by the customers to select and access performance of the bank. Interesting findings
discovered during the survey after data analysis are presented.

Apart from these the SIP provided critical learning and comprehension how the employees are
being evaluated based on their sales target and how it is being reflected on their score card is
also being learnt.

1
CHAPTER 1
INTRODUCTION
1.1 INDIAN BANKING ANALYSIS:

Figure 1: Indian Banking Industry Analysis

The Reserve Bank of India (RBI) record suggests, India’s banking sector is well-regulated and
capitalized. Indian Banking Industry has seen a lot of reforms in terms of digital payments and
small finance banks. To restructure the domestic banking industry these new measures may
help in the long run.

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49
foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384rural
cooperative banks, in addition to cooperative credit institutions.

1.2 GOVERNMENT INITIATIVES:

• Pradhan Mantri Suraksha Bima Yojana:

- Accidental death insurance cover for up to Rs. 2 lakh (US$ 2,983.29).
- Premium: Rs. 12 (US$ 0.18) per annum.

• Pradhan Mantri Jeevan Jyoti Bima Yojana:

- Life insurance cover.
- Premium: Rs. 330 (US$ 4.92) per annum.
- Risk Coverage: Rs. 2 lakhs (US$ 2,983.29) in case of death for any reason.

2
 • Atal Pension Yojana:
- Under the scheme, subscribers would receive the fixed pension of up to Rs 5,000
(US$ 74.58) at the age of 60 years (depending on their contributions).
- The Central Government will also co-contribute 50 per cent of the subscriber's
contribution or Rs 1,000 (US$ 14.92) per annum, whichever is lower, to each eligible
subscriber account, for a period of 5 years.

• Pradhan Mantri Jan Dhan Yojana:

- 316.7 million accounts were opened.
- Each & every citizen will be enrolled in a bank for opening a Zero balance account.
- Each person getting into this scheme will get an Rs. 30,000 (US$ 447.49) life cover
with opening of the account.

Government is taking several steps to enable digitalization in banking sector. There has been
launch of digital payment gateways such as United Payments Interface (UPI) and Bharat
Interface for Money (BHIM) by National Payments Corporation of India (NPCI).

According to the RBI Report in 2016-17 there are 2, 22,475 Automated Teller Machines
(ATM) and 25, 29,141 Point of Sale devices (POS). Along with this, banks are encouraging
NEFT and RTGS for digital transactions

1.3 FUTURE OF BANKING INDUSTRY

India’s Banking Industry is all set for a robust growth because of the rapidly growing business
would come to bank for their credit needs. Also, with the advancements in technology have
brought internet and mobile banking service this far.

The banking sector is laying greater emphasis on providing improved services to their clients
and upgrading their technology infrastructure, to enhance the customer’s overall experience as
well as give banks a competitive edge.

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1.4 PORTER’S FIVE FORCES

Figure 2: Porter’s Five forces

4
CHAPTER 2
2.1 RELEVANCE OF STUDY
Increasing the customer base is the fastest way to grow business and the most obvious way to
reach short-term revenue goals set up by an organization. As the number of the customers
getting associated with the organization increase, the rate of using product or services of the
banking sector also increases. Also, there is possibility that a satisfied customer seeks to buy
special category of related products apart from the regular ones.
Thus, a study on how to acquire New Customers for Banking Sector become important to
find all possibilities of enhancing the market share and penetration aspects for HDFC Bank in
this competitive and ever evolving banking sector.

2.2 LITERATURE REVIEW

This part gives basic insights into the literature review of retail branch banking sector which
was obtained by going through various pre-researched papers that provided a theoretical and
practical contributions to the selected topic.

a) Customer Acquisition:
According to Kotler and Armstrong (2009), customer acquisition is defined as finding the
right customer that provide a profitable return to the firm. It is necessary for every firm that
want to create sustainable business and expand their business through the medium of product
and service and it is very effective in the situation where the switching cost is relatively low
and repeat purchase are rare. Thereby creating a segment of the customer and then targeting
them to create lead and finally following up with them to convert and making them part of
their business.

b) Customer Retention:
According to Thompson (2004), customer retention is about enhancing the sales by endlessly
satisfy and serving the customers, so they will keep coming back. To ensure the customer
retention to be successful, the quality of the service needs to be able to satisfy or go beyond
the customer expectations

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c) Customer Satisfaction and Loyalty:
It has been observed in the work of Timm (2011), that a basic sense of caring, concern and
competence plays an important role in formulation of customer satisfaction. Customer that
are satisfied with a service that tends to be loyal and involved with repeat purchases that lead
to mouth-to-mouth promotion which will considerable increase the company profitability.

Developing the variables for the Questionnaire:

Research Journal: International Journal of Bank Marketing
Research Paper Title: Classification of service quality attributes using Kano’s model: A study
in the context of the Indian banking sector
Manuscript ID: IJBM - 02 - 2014 - 0029

The above research paper dealt in the fact that the satisfaction levels of the customer towards
a product or service is directly based on the perceived quality offered by the provider. Thus,
to measure satisfaction levels that lead to customer retention and loyalty various component
of perceived quality needs to be studied.
Perceived quality within banking sector can be defined as the customer's perception of the
superiority of a product or service of the banking sector with respect to its competitors.
Thus, for our study we studied 3 major features of perceived quality which are as follows:
1) Courtesy and Empathy shown by Employees
2) Accessibility and Convenience to the Customers
3) Reliability of banking Service/ Product.
Based on the above 3 parameters a set a questionnaire having 13 variables (plus
demographics) corresponding to those parameters was framed to obtain a feedback of
customer satisfaction levels which was then further analyzed.

2.3 OBJECTIVE OF STUDY

This study basically covers the following major objectives analyzed through a planned
project design discussed in further chapters:
• To Promote In-house HDFC products in existing Marketspace
• To Bring in New Clients through Scoping Methodology
• To Analyze Consumer Behavior for improving Customer Satisfaction and Loyalty.

6
CHAPTER 3
HDFC BANK LIMITED

HDFC Bank is one of the leading New generation private sector banks. When RBI liberated
the Indian Banking industry in 1994, HDFC Bank Ltd. was the one of the first banks to receive
an ‘in principle’ approval to set up a private sector bank. It was incorporated by Housing
Development Finance Corporation on August 30, 1994 whose commercial operations as a
scheduled bank started in January 1995 when it inaugurated its first branch at Churchgate. Its
first IPO offering recorded a 55 times oversubscription. HDFC Bank Ltd. has its shares listed
in NSE and BSE. Its American Depository shares are listed on NYSE and global depository
shares on Luxemburg Stock exchange. Nearly 21% of the shares of HDFC Bank Ltd. are held
by the HDFC Ltd. The subsidiaries of HDFC Bank are HDFC Standard Life Insurance
Company Limited, HDFC Asset Management Company, HDFC EGRO General Insurance
Company, GRUH Finance, HDFC Property Fund, HDFC Red, Credila Financial Services etc.
HDFC Bank offers a wide range of products and services to its customers including Retail
Banking, Wholesale Banking and Treasury Banking.

• 4,787 branches

• 12,635 ATM's in 2,691 cities/towns

• Number of employees in HDFC Bank are 96247.

• Won the Best Bank Award

- At the Dun & Bradstreet Corporate Awards 2018.

- NASSCOM AI game changer award 2018.
- Company of the year 2018.
- National payments excellence awards 2018

HDFC Bank aims at creating an ecosystem where customers are provided with a whole set of
options for banking and giving them convenience of experiencing the same.

7
HDFC Bank focusses on its core banking solutions using customer centricity and
amalgamating it with the new and trending innovative technological advancements.

3.1 KEY FUNDAMENTALS OF HDFC BANK LIMITED

Market Cap (Rs Crores) 636120.68

Net Profit 17,487 crores

Earnings Per Equity Share (Face Value 2 Per Share) 67.76

Price to Earnings Ratio 30.53

Book Value Per Share 467.51

Table 1: Fundaments of HDFC Bank

3.2 HDFC BANK Core values, Mission, Vision statement

Mission: HDFC Bank's mission is to be “a World Class Indian Bank”.

Vision: To be customer driven best managed enterprise that enjoys market leadership in
providing housing related finance.

Objective: The objective is to build sound customer franchises across distinct businesses to be
the preferred provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank
is committed to maintain the highest level of ethical standards, professional integrity, corporate
governance and regulatory compliance.

HDFC Bank’s business philosophy is based on five core values: Operational Excellence,
Customer Focus, Product Leadership, People and Sustainability.

8
 Figure 3: HDFC Bank Core Values

3.3 SWOT ANALYSIS:

Strengths:

1. HDFC is one of the main new age private sector bank.

2. HDFC has a large collaboration with corporate for employee salary accounts.

3. Aggressive Online offers on Credit and Debit cards.

4. HDFC bank has the high degree of customer satisfaction when compared to other private
banks.

5. The attrition rate in HDFC Bank is low and it is one of the best places to work in private
banking sector.

6. HDFC bank has been responsible for several CSR activities and has also been recognized
with several banking awards.

7. HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from various
financial rating institutions like Dun and Bradstreet, Financial express, Euromoney awards for
excellence, Finance Asia country awards etc.

8. HDFC has good financial advisors in terms of guiding customers towards right
investments.

9. Acquisitions have boosted the operations of the bank.

9
Weaknesses:

1. Rural penetration is low for HDFC as compared to nationalized banks.

2. HDFC cannot enjoy first mover advantage in rural areas. Rural people are loyal in terms of
banking services to public sector banks.

Opportunities:

1. HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase.

2. HDFC bank has lowest bad debts portfolio and the recovery of bad debts are high when
compared to government banks.

3. HDFC Bank has very good opportunities in abroad.

4. Greater scope for acquisitions and strategic alliances due to strong financial position.

Threats:

1. The non-banking financial companies and new age banks are increasing in India.

2. RBI has opened to 74% for foreign banks to invest in Indian market.

3. New banking licenses and regulations can impact stiff competition.

Major Competitors:

1. State Bank of India (SBI)

2. ICICI Bank

3. Bank of Baroda

4. Punjab National bank

5. Kotak Mahindra

6. IDBI Bank

7. Axis Bank

10
3.4 WORKING OF RETAIL BRANCH BANKING
Retail branch banking of HDFC Bank plays a significant job in as it gives most of the business
to the bank. It provides a full range of products and services to its target customers giving them
a one-stop window for all their banking requirements.
The main products offered by bank are Liability Products such as Current Account, Saving
Account, Fixed Deposits, Recurring Deposits etc., and Assets such as Personal Loans, Business
Loans, Gold Loans, and Education Loans etc. Other than these, Credit Cards, Debit Cards,
Insurance, Lockers, and Mutual Funds.
The digital products offered are Net banking, Mobile Banking, Phone Banking, Missed Call
Banking, SMS Banking Apps such as PayZapp, HDFCOnchat etc.

Retail branch of First India Place Mg Road –

It has different departments and different positions of employees to deal with various types of
customers and their requirements.
Tellers are there for cash or cheque dealings.
In the branch there are Personal Bankers who have portfolio of classic customers and non-
managed customers. They must deal with these clients fulfilling their requirements and
generating new leads from them.
There are Relationship Managers also who have portfolio of Classic and Preferred customers
and the Imperia Relationship Managers handle the imperia clients.
There are various categories for the customers which are as follows: -
i. Non- Managed Customers: - The customers which have taken some products from the
bank but do not manage their average monthly balance appropriately are the non-
managed customers of the bank. These customers can be converted into managed ones,
by pitching products to them in a better way and bank employees stay in touch with
them constantly to build a relation with them.

ii. Classic Customers: - These are the customers who must maintain average monthly
balance in Savings Account greater than one lakh or minimum quarterly balance of two
lakh in current account.
• A dedicated personal banker is being assigned and various family benefits are there.

11
 • They deal with these clients fulfilling their requirements and generating new leads from
them.

iii. Preferred Customers: - These customers have higher account balance to be maintained
as compared to classic customers. The average monthly balance in Savings Account to
be maintained is above two lakhs and average quarterly balance in Current Account
should be above 5 lakhs.
• A relationship manager is being assigned to them.

iv. Imperia Customers: - These are the biggest portfolio customers of HDFC Bank. The
average monthly balance to be maintained in savings account should be more than 10
lakhs and the current account average quarterly balance should be above 30 lakhs.
A dedicated imperia client relationship manager is assigned here.

o There is one branch manager to supervise all the operations of the branch and then there
are branch operations manager, for supervision of daily operations at Bank and to
manage in absence of branch manager.
o Other than these, there is trade department in the branch who deals with trade and forex
services. Credit/Debit Card department is also there to encourage customers to go
digital and pay digitally. Numerous schemes are offered to the customers such as
lifetime free credit card without any annual charges, so that customers approve of these
cards. NRI customers or the customers visiting foreign lands are also offered Forex
Cards to have easy expenditure facilities in other countries.
o Loan department is also present who looks after the loan requirements of customers and
generate database of customers for various loan offers.

3.5 HDFC BANK PRODUCTS:

1. Saving Accounts: HDFC has different types of savings account that caters to needs of
different customers. They are described as follows:

12
 • Regular Savings Account: - This is a regular savings account that requires users
to maintain average monthly balance of Rs 10,000 in case of Metro and urban
areas, Rs 5,000 in case of semi-urban and Rs 2,500 in case of rural branches.
• SavingsMax Account: - It requires an average monthly balance of Rs 25,000
and offers exclusive benefits such as Platinum Debit Card and other rewards and
benefits.
• Women’s Savings Account: - An exclusive account for women that suit their
banking, lifestyle and investment needs. It requires an average monthly balance
of Rs 10,000 in case of metro and urban areas and Rs 5,000 in case of rural and
semi urban region.
• Basic Savings Bank Deposit Account: - It’s a zero-balance account for resident
individuals and Hindu Undivided Families.

2. Current Accounts:

• Regular Current Account: Ideal low-cost account for businesses that operate
in one city. With free access to one of the most advanced and secure Net Banking
and Mobile Banking services.
• Smart Up Solutions: A Smart business account tailormade for startups assist in
achieving startup goals with smart financial tools, smart advisory services and
technology
• Ascent Current Account: Multiplier benefits across all nature of transactions.
• Apex Current Account: Perfectly placed to meet the needs of fast growing,
large business, this dynamic current account helps derive the most advantage
from several value-added features.

3. Personal Loan:

HDFC Bank application process is quick, hassle-free and requires minimal

documentation. One can check eligibility in 60 seconds, and instantly apply online for
a personal loan. And can get funds within 4 hours of approval. Existing HDFC Bank
customers can benefit from special rates and loan approvals in 10 seconds.

13
4. Credit Card:

HDFC Bank introduced the first Credit Card in India, and today more than 10 million
customers use an HDFC Bank Credit Card to make their life more rewarding. They
come equipped with advanced safety features so one can make purchases without any
worry. Various Credit cards are:
• MoneyBack
• JetPrivilege HDFC Bank Signature
• Infinia

3.6 About First India Place Branch MG Road

• One of the oldest branches in Gurgaon.

• It has been 15 years since its inception.
• Despite being at a place where there are a lot of another bank’s too for example.
IndusInd Bank, SBI bank, the bank is at top of preference for the customers.
• It has RS 2300 crore balance with it- 750 crore in savings account and rest is deposits.
• It has 90,000 employee’s databases with 2800 customers those are managed
customers which comes under premier banking.

14
CHAPTER 4
RESEARCH METHODOLOGY
This chapter basically deals with the stepwise procedure followed to carry out the study on how
to acquire new customers for the banking sector over a specific period.

4.1 PROJECT DESIGN

The Project allocated is New to Bank - Acquisitions. This basically comprised of customer
acquisition which refers to bringing new customers or clients to the existing business of
banking sector.

The entire project was divided into 3 phases as per plan of action.

1) Phase 1:

Phase 1 basically referred to the Field Work that was assigned to cover two key drives initiated
by HDFC Bank to undergo Market Scoping in nearby areas.

• Dukandar Dhamaka
• Corporate Drive

(The complete details of the same are included in the Field Work Section of this chapter)

This Phase contributed to the first objective that was highlighted in the Chapter 2 of this report.

2) Phase 2:

Phase 2 was the middle phase of the project:

This phase covered two aspects:

a) Contacting the Portfolio Clients of Relationship Managers:

Under this, the task assigned was to contact the portfolio clients of the Relationship Managers
(RM) and using their My Asset Customer (MAC) data, pitching various pre-approved offers
that were present in their portfolio like Consumer Durables Loan, Home Loan, Person Loan. If
the client was interested, it was referred to as Lead generation and this was provided to the
concerned RM, who then had to follow-up with that towards conversion.

15
The MAC data that I worked was provided by Mr. Vishank Singhal (RM) and after contacting
his portfolio clients, I could generate the following Leads:

S.No. Customer Name Service or Product Interested Status

1 Sagar Kapoor Credit Card Successfully Dispatched
2 Karan Seth Credit Card Successfully Dispatched
3 Manchanda Credit Card Successfully Dispatched
4 Viroba Saving Account Successfully Done
5 Tanu Kumari Saving Account Successfully Done
6 Garima Yadav SIP Warm Lead

Table 2: Leads generated during portfolio calling.

b) Contacting HDFC Customers for offer of PL-10 Seconds:

HDFC Bank has a scheme in which handful of customers based on nature of their transactions
were given an offer to get personal loan approved in just 10 seconds with minimal
documentation required.

Thus, under this, the task assigned was to generate leads by contacting the customers and
provide this generated leads to the respective personal loan team.

This Phase contributed to the Second objective that was highlighted in the Chapter 2 of this
report.

3) Phase 3:

This phase aimed at studying the customer behavior by analyzing the satisfaction levels of the
customers along with finding the measure of loyalty they showcased for HDFC Bank.

Under this phase, a primary research was conducted by preparing a questionnaire by going
through the literature review and then asking the customers who visited the branch for
responses and thus analyzing that data to study the demographics affecting the footfall of
customers along with the satisfaction level they have with working of HDFC Bank.

(The questionnaire that was used in this phase has been attached in the Annexure section of
this report and the detailed is present in the Analysis section of this chapter)

16
This Phase contributed to the Third objective that was highlighted in the Chapter 2 of this
report.

4.2 FIELD WORK

The Phase 1 of the Summer Internship was conducted in a such a way to gain maximum
exposure in form of Market Scoping in nearby areas. The field work was done covering two
major drives organized by HDFC Bank.

1) Dukandar Dhamaka

There is a common practice of using Swipe Machine in today’s market space and these swipe
machines are often issued to current account holders of specific banks like AXIS, SBI, HDFC
etc. Often these Swipe Machines are third party manufactured and cost somewhere around
₹3,000 - ₹5,000 each year as rent.

Under Dukandaar Dhamaka (spanning over 1 week), the major objective was to make people
aware and ultimately promote the sales of In-House Electronic Data Capture (EDC) Machine
from HDFC Bank in the nearby Markets, thereby bringing new customers for the bank.

Thus, this product helped in generating revenue from two ends, Firstly, customer making this
product operational were paying handling charges. Secondly, if a customer needs to transact,
an account is needed, thereby a new customer is acquired.

Features that made this machine a stand out product are as follows:

Type Point of Sale (POS) Machine

Account Required Saving/Current
Charges ₹750 + GST (Annually)
Transaction Type Directly to Account
Nature Paper-less Operations

For the promotion and sales of this EDC machine, nearly all shops in Central Arcade and
Chakkarpur (MG Road, Gurgaon) market were covered.

17
This drive laid focus on generating leads for the HDFC Bank for acquiring new customers
under EDC Machine signup or providing the machine to existing account holders. The
generated lead was then given to the branch and proper documentation was done to open the
required account along with setup of EDC at the required location within 7 days.

The following is the status of the leads that were generated:

Existing/New EDC New Account Type of

S.No Customer
Customer Purchased Opened Account
1 Sai Kripa Bartan Store Existing Yes No
2 Ajay Pan Corner New to Bank Yes Yes Saving
3 Global Communication New to Bank Yes Yes Saving
4 VITA New to Bank Yes Yes Saving max
5 Apna Bhojanalaya New to Bank Yes Yes Saving
6 Biji Ki Rasoi New to Bank Yes Yes Current
7 Vada Pav Bhandar Existing Yes No
8 Food Striker Existing Yes No
9 Accessories Hub Existing Yes No
10 Goli Vada Pav Existing Yes No

Table 3: Leads generated during Dukandar Dhamaka Drive

Final status of this Drive:

Through this drive 10 customers signed up for purchasing this EDC machine out of which 5
New customers were acquired by HDFC Bank, which also brought in new signups for account
openings of those respective customers in just one week.

b) Corporate Drive:

After the successful completion of Dukandar Dhamaka next task assigned was finding the
HDFC Bank penetration in nearby Corporate along with capturing the current account (along
with requirement of HDFC in-house EDC Machines). 5 major Corporates Towers were visited
in that drive that existed for around 2 weeks.

The detailed report of the corporate visit is as follows:

18
1) VATIKA CITY POINT:

Address: Sector 25, MG Road, Gurugram

Date of Visit: 10th April 2019
Number of Offices Visited: 29
Valid Responses: 18
HDFC Bank Presence: 10
Penetration: 55.55%

2) METROPOLIS MALL:

Address: Sector 28, MG Road, Gurugram

Date of Visit: 09th April 2019
Number of Offices Visited: 23
Valid Responses: 20
HDFC Bank Presence: 13
Penetration: 65%

3) JMD ARCADE:

Address: Opp. Metro Pillar No - 80, Gurugram

Date of Visit: 18th April 2019
Number of Offices Visited: 13
Valid Responses: 13
HDFC Bank Presence: 9
Penetration: 69.23%

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4) JMD REGENT SQUARE:

Address: Sector 25, MG Road, Gurugram

Date of Visit: 22nd April 2019
Number of Offices Visited: 19
Valid Responses: 17
HDFC Bank Presence: 5
Penetration: 29.41%

5) CITY CENTRE MALL

Address: Housing Colony, Sector 28,

Gurugram
Date of Visit: 24th April 2019
Number of Offices Visited: 41
Valid Responses: 41
HDFC Bank Presence: 26
Penetration: 63%

Leads Generated during Corporate Drive:

Banking Status of Action

S.No Customer Corporate Tower
With Lead Taken
1 Kriti Life AXIS Bank City Centre Warm
2 Bombay Selection IDBI Bank City Centre Warm
3 Not Just Parantha YES Bank City Centre Warm
4 Accessories Hub SBI Bank Metropolis Hot Converted
5 Alma Rejuvna Kotak Metropolis Hot Converted
6 Halyeon AXIS Bank Metropolis Hot Converted
7 Nirvana Spa SBI Bank JMD Arcade Hot
8 Organic Spa SBI Bank JMD Arcade Warm
9 Debbas Lighting India ICICI Bank JMD Regent Square Warm
10 SSSS Construction Pvt. Ltd YES Bank JMD Regent Square Hot

Table 4: Leads generated during Corporate Drive

20
4.3 DATA COLLECTION METHODS

Data collection is a process of collecting information from all the relevant sources to find
answers to the research problem and evaluate the outcomes.
The objectives of the project are such that both primary and secondary data is required to
achieve them. So, both primary and secondary data was used for the project. Primary data was
basically collected by the mode of questionnaire which measured the satisfaction level of the
existing customers and secondary data was collected from various sources like magazines,
websites, and tabloids. Etc.
Data collection methods can be divided into two categories:
1) Primary data Collection:
Primary data was used to measure the level of satisfaction of existing customers. It was done
by preparing the questionnaire and in-depth interviews. The findings helped to prepare the
strategies that can be implemented in acquiring new customers.
2) Secondary Data Collection:
It was done to achieve the objective of studying the latest trends in banking industry.

• Sample Size - 86
• Sampling unit - Sector 28, Gurgaon
• Sampling technique - Quota and Convenient

21
CHAPTER 5

DATA ANALYSIS

The primary data that was captured through the responses was analyzed as to find the
satisfaction level of the customer with HDFC Bank. In total 87 responses were recorded.

The summary of responses and there possible interpretation are as follows:

1) Age of the Respondents:

Through the response’s customers are falling

under the age group of 18 - 40, which signifies
that youth has its firm belief in the methodology
of this bank and are happy to open new
relationship with HDFC Bank.

2) Gender:

Through the responses the ratio to female to male

was almost 40-60%. That signifies how gender
diversity is maintained by the bank.

3) Occupation:

Through the responses a lot of accounts were

opened by students that signifies the amount of
trust that young generation has on HDFC Bank
as it comes out as new age bank. Secondly,
Number of Salaried Account is also more
ranging around 52% that signifies the
penetration of HDFC Bank in corporates.

22
4) Annual Income:

The customers associating with HDFC Bank

belonged to various income levels, that can be
observed from the chart that a person earning
less than 1 lakh to a person earning more than
Rs 12,00,000 all are associated with HDFC
Bank.

5) Awareness of HDFC Bank:

The data shows customers are greatly

influenced by friends or relatives of the people
which convince them to get associated with the
bank that they think provide best in class
facilities.

6) Recommendation to other people:

Interpretation of the above data:

This question was asked from the respondents to enquire what kind of word of mouth could be
observed and whether existing customers could bring in new customers for the bank. The data
could be classified as follows:

23
(Not Recommend to others) Rating 0 – 3: 3 Respondents (3%)

(Undecided) Rating 4 – 7: 24 Respondents (28%)

(Happy to Recommend) Rating 8 – 10: 60 Respondents (69%)

Thus, it could be seen that high percentage (~ 70%) of customers are happy to recommend
HDFC Bank to others, thereby giving a very strong insight into the word of mouth publicity
for the bank.

Cross Tabulation:
Recommendation and Annual Income

Table 5: Crosstabulation between Recommendation and Annual Income

Only Respondents having low income group i.e. less than 1 lakh (10.7%) are likely to not
recommend whereas respondents having income above 12 lakhs (100%) are more likely to
recommend HDFC Bank to others.
Respondents having less than 1 Lakh, around 40 percent are undecided, and 41 percent would
recommend.
Respondents having income 1 to 5 lakhs, 8.4 percent are undecided, and 91.7 percent would
recommend.

24
Respondents having income 5 to 8 Lakhs, 35.7 percent are undecided, and 64.3 percent
would recommend.

Respondents having income 8 to 12 Lakhs, 33.3 percent are undecided, and 66.7 percent
would recommend.
Respondents having income above 12 lakhs, 100 percent would recommend.
Also, we can see that as we move from low to high income group respondents seems to be
more on the recommendation side.

Recommendation and Gender

Table 6: Crosstabulation between Recommendation and Gender

In case of Female respondents’ 41.1 percent are undecided whereas in case of Male
respondents’ 18.8 percent are undecided.

In case of Female respondents’ 55.90 percent would recommend whereas in case of Male
respondents’ 79.20 percent would recommend.

25
Recommendation and Age

Table 7: Crosstabulation between Recommendation and Age

Respondents having age group 18-25 years, around 3.4 percent would not recommend, 32.7
percent are undecided, and 63.7 percent would recommend.
Respondents having age group 26-40 years, around no one would not recommend, 20 percent
are undecided, and 80 percent would recommend.
Respondents having age group 40-60 years, around no one would not recommend, no one is
undecided, and 100 percent would recommend.

Analysis through SPSS

After collecting all the data, it was also interpreted using the SPSS software to analyze the
relationship between the data of the survey.

1) Factor Analysis:

Factor analysis is used in the analysis as to reduce the number of questions into limited number
of parameters which makes it easy to categorize and interpret

Upon running the factor analysis in SPSS we get the following:

26
 Table 8: Factor Analysis

It can be observed that in the Total field (Initial Eigenvalues), 3 values are above 1 and rest are
below 1, so we can interpret that the set of 13 parameter-based questions could be categorized
into 3 broader parameters.

The division of question into respective 3 categories is done through following table:

Component
1 2 3
Q1 .728 .292 .406
Q2 .808 .143 .280
Q3 .835 .185 .213
Q4 .808 .256 .211
Q5 .209 .855 .044
Q6 .037 .798 .262
Q7 .322 .812 .111
Q8 .246 .592 .358
Q9 .420 .331 .506
Q10 .133 .144 .860
Q11 .258 .450 .496
Q12 .443 .157 .693
Q13 .299 .150 .710
Table 9: Rotated Component Matrix
Extraction Method: Principal
Component Analysis.

27
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 4 iterations.
The technique used to club questions together is which even value out of 3 components is
higher for respective question, the question belongs to that parameter or component.

Thereby, Q1 – Q4 is under component 1, Q5 – Q8 is under component 2 and Q9 – Q13 is under

component 3.

Component 1 is referred to as Courtesy and Empathy, which is categorization of following

questions:
1) Employees are consistently polite/respectful to you
2) Employees understand your specific needs
3) Employees have the knowledge to answer your questions
4) When you have a problem HDFC bank shows a sincere interest in solving it

Component 2 is referred to as Accessibility and Convenience, which is categorization of

following questions:
1) HDFC Bank has convenient branch locations
2) HDFC Bank has user friendly internet banking services
3) HDFC Bank has a large ATM network
4) HDFC Bank offers convenient operating hours

Component 3 is referred to as Reliability, which is categorization of following questions:

1) When HDFC Bank promises to do something by a certain time, it does so
2) HDFC Bank performs the service right at the first time
3) You feel safe in transactions with HDFC Bank
4) Employees of HDFC Bank tell you exactly when services will be performed
5) Employees of HDFC Bank give your prompt service

Advantage of using Factor Analysis:

Thus, factor analysis helped to reduce 13 set of questions (variables) into 3 major components
or factors, thereby enabling us to compare demographics directly with them

28
Analysis of Demographics (Using Chi-Square Goodness of Fit)
The dependence of Behavior of employees on Respondents Age, Gender, Occupation and
Income Levels were studied.
1) Dependence on Age:
To analyze whether behavior of HDFC employees is different for different age of customers.
Null Hypothesis (Ho): Courteousness of employee is same towards all age group of customers
Alternate Hypothesis (Ha): Courteousness of employee is different towards all age group of
customers
Cross tabulation was used with Respondents Age and Courtesy and Empathy of Employee in
rows and columns respectively and then Chi-Square Test was conducted to measure the
significance level.
The result was as follows:

Chi-Square Tests
Asymptotic
Significance
Value Df (2-sided)
a
Pearson Chi-Square 5.189 6 .520
Likelihood Ratio 6.049 6 .418
Linear-by-Linear
2.654 1 .103
Association
N of Valid Cases 87
a. 7 cells (58.3%) have expected count less than 5. The
minimum expected count is .14.

Interpretation from the test:

Since the p-value is 0.520, which is greater than significance value (0.05), thereby we fail to
reject the Null Hypothesis. Therefore, Courteousness of employee is same towards all age
group of customers and hence all the customers even of different age levels are not treated
differently.
2) Dependence on Gender of Respondents:
To analyze whether behavior of HDFC employees is different for different gender of the
customer.

Null Hypothesis (Ho): Courteousness of employee is same for different gender of the customer

29
Alternate Hypothesis (Ha): Courteousness of employee is different for different gender of the
customer
Cross tabulation was used with Respondents Gender and Courteousness of Employee in rows
and columns respectively and then Chi-Square Test was conducted to measure the significance
level.
The result was as follows:
Chi-Square Tests
Asymptotic Significance (2-
Value Df sided)
a
Pearson Chi-Square 1.959 3 .581
Likelihood Ratio 1.950 3 .583
Linear-by-Linear
1.102 1 .294
Association
N of Valid Cases 87

a. 2 cells (25.0%) have expected count less than 5. The minimum expected
count is 1.17.

Interpretation from the test:

Since the p-value is 0.581, which is greater than significance value (0.05), thereby we fail to

reject the Null Hypothesis. Therefore, Courteousness of employee is same towards all gender

group of customers and hence no gender of customer is been treated in any different manner.

3) Dependence on Occupation of Respondents:

To analyze whether behavior of HDFC employees is different for different occupation of the

customer.

Null Hypothesis (Ho): Courteousness of employee is same for customer belonging to different

occupation

Alternate Hypothesis (Ha): Courteousness of employee is different for customer belonging to

different occupation

30
Cross tabulation was used with Respondents Occupation and Courteousness of Employee in

rows and columns respectively and then Chi-Square Test was conducted to measure the

significance level.

The result is as follows:

Chi-Square Tests
Asymptotic Significance (2-
Value Df sided)
Pearson Chi-Square 14.740a 6 .022
Likelihood Ratio 15.708 6 .043
Linear-by-Linear
7.944 1 .012
Association
N of Valid Cases 87
a. 6 cells (50.0%) have expected count less than 5. The minimum expected
count is .17.

Interpretation from the test:

Since the p-value is 0.022, which is greater than significance value (0.05), thereby we reject
the Null Hypothesis. Therefore, Courteousness of employee is not same towards all customer
having different occupations.

4) Dependence on Income Levels of Respondents:

To analyze whether behavior of HDFC employees is different for different gender of the
customer.
Null Hypothesis (Ho): Courteousness of employee is same for different income levels of the
customer
Alternate Hypothesis (Ha): Courteousness of employee is different for different income levels
of the customer
Cross tabulation was used with Respondents Income Levels and Courteousness of Employee
in rows and columns respectively and then Chi-Square Test was conducted to measure the
significance level. The result was as follows:

31
Chi-Square Tests

Asymptotic Significance (2-

Value Df sided)
Pearson Chi-Square 20.696a 12 .055
Likelihood Ratio 21.829 12 .039
Linear-by-Linear
.697 1 .404
Association
N of Valid Cases 87
a. 14 cells (70.0%) have expected count less than 5. The minimum
expected count is .21.

Interpretation from the test:

Since the p-value is 0.055, which is greater than significance value (0.05), thereby we fail to
reject the Null Hypothesis. Therefore, Courteousness of employee is same towards the
customers having different income levels.

S.No. Factors Gender Age Occupation Income

1 Courtesy and Empathy 0.581 0.52 0.022 0.055
2 Accessibility and Convenience 0.547 0.014 0 0.04
3 Reliability 0.42 0.004 0.001 0

Table 10: Calculated Chi-square Value for different Factors-Demographic pairs.

In this we can see for the first factor i.e. Courtesy and Empathy we reject the null hypothesis
only for Occupation whereas for the other 2 factors Accessibility and Reliability we reject the
null hypothesis for age, occupation and Income.
By reject the null hypothesis means for Accessibility and Convenience factors is different for
different age group of customers.

32
CHAPTER 6

6.1 RESULT AND DISCUSSION

Summarizing the whole data analysis for the survey conducted as well as the market scoping
done, following results and learning can be drawn:

• Penetration of HDFC in the Market surveyed is around 62 percent.

• Around 70 percent of respondents would recommend HDFC Bank.
• During the scoping part we found out that customers are satisfied with the services of
the Branch officials.
• As we move from Low income to High income group respondents seems to be more
on the recommendation side.
• More Male respondents around 80 percent would recommend HDFC Bank compared
to Female where around 55 percent would recommend.
• In case of people of age group 18-25 years percentage is 63.7% which rises to 80
percent for the age group 26-40 years and even rises to full 100 percent for the age
group 40 and above.
• During market penetration we found that majority of the customers find the location of
the Branch to be convenient. According to the sources, convenient location plays a
majority role in switching the services of the Bank.
• In case of Courteousness of employee both genders have the same opinion, also
different age group and different income level people think the same.
• In case of Accessibility and Reliability both genders have the same opinion, but it
differs for the different age, occupation and income.

6.2 KEY LEARNINGS

• I was able to understand various processes and bottlenecks in the retail banking
processes.
• I understood service plays an important role in the banking sector. Most of the
customers preferred HDFC Bank for its service.
• The core working area during my internship is to communicate with our customers.
This work is polishing my skills and sharpening them.

33
 • Understanding basic sale process from prospect to lead generation to final conversion.
• Development of soft skills.
• Most of the customers were unaware of the features that the product can offer. This
made me understand the need for effective communication.

6.3 CONCLUSION

Based on the study of acquiring new customers for banking sector, it can be concluded that
acquiring new customers at a rapid pace has played a major role in establishing HDFC Bank at
the Number one position in terms of Market Capitalization amongst this fierce competition that
exist in today’s market place.

Not only does HDFC Bank focus on acquiring new customer, but also lays a huge emphasis on
retaining them thereby creating an atmosphere of customer satisfaction and loyalty. Majority
of the customers are satisfied with the methodology adopted by HDFC bank in terms of
delivering products and features without hassle.

34
CHAPTER 7

RECOMMENDATION

1) Model Existing Profitable Customer

Providing timely feedback can help deliver delightful customer experiences at every brand
touchpoint. This will not only retain existing customers who all are satisfied but also help to
gain new customers.

2) Referrals from existing Current Customers

Another way to reach out new customers is getting referrals from existing customers who are
profitable to Bank. Word of Mouth promotion is widely acclaimed in marketing banking
services.

3) Needs-Based Marketing
Understanding the customer's need and selling the right product at the right time is very
important. Therefore, adopting the right pricing strategy is very critical along with judging
what the customer sees value in going for the bank’s product.

4) Staff Training
Bank's staff plays a vital role in acquiring a new customer. Here, training plays a significant
role. Proper training programs can help the team to develop soft skills to handle customer
objections. To Treat customers fairly and equally.

5) Introducing the Referral Plans

Along with aggressively marketing the product and services, HDFC Bank could also engage
new customers by providing customers to earn cash benefits or rewards if they bring new
customers on their own and make him a part of HDFC Bank.

35
CHAPTER 8

LIMITATION OF THE STUDY

The market scoping and customer survey has given various useful insights and conclusions
about customer acquisition for banking sector. However, this study had certain limitations
which are stated as follows:

• Many shops did not have owners and sales people did not know much information
regarding this, hence Market Scoping could not be used to full extent to convert non-
existing customers into existing ones.
• Many of the respondents were customers of HDFC Bank as the survey was conducted
with walk-in customers, hence, the data is little biased as per the criteria of banks is
considered.
• The questionnaire was sent online to respondents who were mostly in the age group 18-
26 which makes it little biased for this age group and such biasedness is unavoidable
• Some open-ended questions have been put in the questionnaire to give respondent
freedom to express their perception which could not be used for the further analysis.
• The sample size of the study is 87 observations; thus, all the results and conclusions are
based on the same.

36
CHAPTER 9

FURTHER SCOPE OF IMPROVEMENT

HDFC Bank is Number 1 bank in India by Market Capitalization thereby has a very high
customer acquisition strategy as compared to other banks. However, there is always a scope
for future improvement which can help the bank to scale even greater heights and provide a
platform for improving customer satisfaction and loyalty

Some of the areas where HDFC Bank could improve in the future are:

• The Market Scoping limited to areas nearby the branch could be increased in future to
cover a larger presence for verifying the penetration of HDFC Bank across various
market place
• There is a scope of increasing the respondent base by covering the satisfaction level of
other bank customers to obtain a broader picture and comparing it with satisfaction
levels of HDFC customer base
• The Study is conducted of 3 major variables of banking sector, this could be even
further extended to other factors thereby obtaining better insight of the whole scenario.
• The respondents set should be more diverse in terms of age and occupations which will
provide more accurate results

37
Annexure 1
HDFC BANK SURVEY

1) Respondent Name: ________________________________________

2) Respondent Age (in years):

a) Below 18 b) 18 – 25 c) 26 – 40 d) 41 – 60 e) Above
60

3) Gender:
a) Male b) Female c) Others

4) Contact Number: __________________________________________

5) Occupation:
a) Student b) Self-Employed c) Unemployed d) Salaried e) Government

6) Annual Income:
a) Below 1 Lakh b) 1 – 5 Lakhs c) 5 – 8 Lakhs d) 8 – 12 Lakhs
e) Above 12 Lakhs

7) How did you hear about HDFC bank?

a) Social Media b) Friends/Relatives c) HDFC’s Website d) Google Search
e) E-Commerce Offers

8) Please Tick (✓) the appropriate options:

Strongly Strongly
Parameters Agree Neutral Disagree
Agree Disagree
a) Employees are consistently
polite/respectful to you
b) Employees understand your
specific needs
c) Employees have the
knowledge to answer your
questions.

38
 d) When you have a problem
HDFC bank shows a sincere
interest in solving it.
e) HDFC Bank has convenient
branch locations
f) HDFC Bank has user
friendly internet banking
services.
g) HDFC Bank has a large
ATM network
h) HDFC Bank offers
convenient operating hours
=`) When HDFC Bank
promises to do something by a
certain time, it does so.
j) HDFC Bank performs the
service right at the first time.
k) You feel safe in transactions
with HDFC Bank.
l) Employees of HDFC Bank
tell you exactly when services
will be performed.
m) Employees of HDFC Bank
give your prompt service.

11) How likely are you to recommend HDFC Bank to others on a scale of 0 - 10?

Least 0 1 2 3 4 5 6 7 8 9 10 Most Likely

Likely

12) Any Suggestions:

___________________________________________________________________________
__________________________________________________________

-- Thank You for Banking with us!! --

39
 BIBLIOGRAPHY

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https://www.ibef.org/industry/banking-india.aspx
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4) HDFC is transforming into a full-scale digital bank. (2015, January 05). Retrieved from
https://www.businesstoday.in/magazine/special/HDFC-bank-digital-transformation-best-
indian-large-bank-2014/story/213957.html
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standard.com/company/HDFC-bank4987/information/company-history
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https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfcbank/HDF01
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bank-limited.php
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40