A PROJECT REPORT ON

“DIGITALIZATION IN BANK AT HDFC LTD."

Submitted in partial fulfilment for the award of the degree

BACHALORS OF BUSINESS ADMINISTRATION

SESSION: 2021-2022

SUBMITTED TO SUBMITTED BY
MR Rajesh kumar singh Puja Ailani
(PROFESSOR. -B.B.A) BBA VI SEMESTER
DPRT.OF MANAGEMENT ROLL NO: 13220401018

JEEVANDEEP MAHAVIDYALAYA
Affiliated to Mahatma Gandhi Kashi Vidyapith University, Uttar Pradesh, Varanasi

CERTIFICATE
This is to certify that research report entitled “A Research Report
on DIGITALIZATION IN BANK AT HDFC LTD” submitted by Miss
Puja Ailani , roll no: 13220401018 in partial fulfillment of the
degree of BACHELOR OF BUSINESS ADMINISTRATION of MGKVP,
Varanasi is a bonafide work of research carried out under the
supervision of Mr Rajesh kumar Singh for the Academic year
2021-22.

In my opinion the report fulfills the requirement of the regulation

& relating to the nature and standard of work for BBA of

JEEVANDEEP MAHAVIDYALAYA.

I recommend that research report may be sent for evaluation.

Mr. Rajesh kumar singh

(Co-ordinator)
 ACKNOWLEDGEMENT

Learning and acquiring knowledge have no leaps and bounds. It is one resource that never

gets exhausted, the more you preach the better it gets and the more it lives down through

ages. From the day since man set his foot on earth learning process had begun and is still

evolving making life happier and memorable. One can only led a person to things he needs

to know, but never can teach him how to learn. Experience through failures and hardship

makes a man perfect.

I express my sincere gratitude towards Mr. Vaibhav Singh, Branch Manager at HDFC

Bank Ltd., Lahurabeer, Varanasi for giving need and opportunity to undergo Project report

survey in one of the leading financial institutions of India.

I also take the opportunity to thank my Course Co-Ordinator Mr. Rajesh kumar singh to
provide me with relevant insights to understand the project and guided at every step.
Without his guidance and undivided attention, the project would not have taken this shape.

Puja Ailani
BBA VI Semester
Roll No.:13220401018
 DECLARATION

I, Puja Ailani Student of B.B.A. VI Semester, Varanasi (Uttar Pradesh) hereby declare

that all the information facts and figures produced in this report is based on my own

experience and study during my open market research in analyzing the “DIGITALIZATION

IN BANK AT HDFC LTD."

I further declare that all the informat ion and facts furn ished in this pr oject
report are base d on my inten sive research fin dings. They a re first hand
and or igina l in nature.

Puja Ailani
BBA VI Semester
Roll No.:13220401018
 PREFACE

As a part of our course curriculum, I had to go through a Project Report on any topic to get
the right exposure to the practical aspects of business management.

I want to express my gratitude for the experience and practical knowledge that I earned
during the PROJECT REPORT SURVEY. In this project report I had presented my great
experience in the form of words. In making the project report theoretical knowledge was
needed more than the practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to
its competitors. I have enjoyed my report preparation and have learnt lots of new things. I
have tried my level best to make this report a reader friendly & also did my level best to
fulfill the objective of the study.
 TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
a. Meaning and Definition
b. Indian Banking Industry
c. Indian Banking System
d. Major Players in India
2. Introduction to Digitalization
a. Meaning and Definition
b. Digital Banking
3. Company Profile
a. History of HDFC Bank
b. Mission, Vision and Objectives
c. Management at HDFC Bank
d. Business Profile
e. Ratings/Awards
f. Products of HDFC Bank
g. Digital Services of HDFC Bank
h. Digital Initiatives
i. Departments at HDFC Bank
g. Swot Analysis of HDFC Bank
Part II
4. Objectives of the study
5. Literature Review
6. Research Methodology
a. Research Design
b. Research Type
c. Sampling Design
 d. Sources of Data Collection
e. Data Collection Tools
f. Methods of Data Collection
Part III
7. Data Analysis & Interpretations
8. Findings
9. Conclusion
10. Suggestions
11. Limitations
12. Bibliography
13. Appendix
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of baking in the modern industrial world is commercial
banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact, this is the function which the bank
performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."

-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.

-By Findlay Sheras

Thus
A Bank:

 Accept deposits of money from public.

 Pays interest on money deposited with it.
 Lends or invests money.
 Repays the amount on demand,

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  Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the Italian
business house carrying on crude from of banking were called banchi bancheri" According
to another viewpoint banking is derived from German word "Branck" which mean heap or
mound. In England, the issue of paper money by the government was referred to as a raising
a bank.

ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking was
developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

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 INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have started
with the appearance of money. The first record of minted metal coins was in Mesopotamia
in about 2500B.C. the first European banknotes, which was handwritten appeared in1661,
in Sweden. Cheque and printed paper money appeared in the 1700’s and 1800’s, with many
banks created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which extended
throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban co”,
meaning bench, because moneylenders worked on benches in market places. The bank of
Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in
their safes in return for a fee. Receipts given to the Merchant were sometimes used to buy
or sell, with the metal itself staying under lock and key. The goldsmith realized that they
could lend out some of the gold and silver that they had and charge interest, as not all of
the merchants would ask for the gold and silver back at the same time. Eventually, instead
of charging the merchants, the goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were using
bank of England notes of their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks
merged into larger and fewer groups and expanded into other country.

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HISTORY OF INDIAN BANKING INDUSTRY

Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal,
was established. But the industry changed rapidly and drastically, after the nationalization
of banks in 1969.

Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly expanded
their foot prints after nationalisation of banks in India in 1969 and further in 1980. Although
there is a restrictive entry/expansion for private and foreign banks in India, these banks
have increased their presence and business over last 5 years.

Peculiar characteristic of Indian banks unlike their western counterparts such as high share
of household savings in deposits (57.4% of total deposits), adequate capitalization, stricter
regulations and lower leverage makes them less prone to financial crisis, as was seen in the
western world in mid FY09.

The Scheduled Commercial Banks (SCBs) in India have shown an impressive growth from
FY04 to the mid of FY09. Total deposits, advances and net profit grew at CAGR of 19.6%,
27.4% and 20.2% respectively from FY03 to FY08. Banking sector recorded credit growth
of 33.3% in FY05 which was highest in last 2 and half decades and credit growth in excess
of 30% for three consecutive years from FY04 to FY07, which is best in the banking
industry so far. Increase in economic activity and robust primary and secondary markets
during this period have helped the banks to garner larger increase in their fee based
incomes.

A significant improvement in recovering the NPAs, lowest ever increase in new NPAs
combined with a sharp increase in gross advances for SCBs translated into the best asset
quality ratio for banking sector in last two decades. Gross NPAs to gross advances ratio for
SCBs decreased from the high of 14% in FY2000 to 2.3% in FY08.

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With in the group of banks, foreign and private sector banks grew at higher rate than the
industry from FY03 to FY08 primarily because of lower base effect and rapid expansion
undertaken by these banks. In FY09, overall growth in credit and deposits was led by PSBs.
However, growth of private and foreign banks was significantly lower in FY09 due to their
high exposure to stressed sectors and problems at parent level for foreign banks.

Unsecured bank credit has risen over the years and stood at 23.3% of bank credit in FY08
as compared to just 10.9% in FY2000. Lending to sensitive sector has also grown at CAGR
of 46.1% from FY05 to FY08. In the backdrop of the economic downturn, we feel that the
excellent performance seen in last five years ended FY08 will be difficult to repeat in
coming years.

We expect that with the downturn in the economy, credit and deposit growth will moderate
in coming years. Credit growth will be led by spending on the infrastructure while retail
credit will show a moderate growth. Margin pressures due to lag effect of rate cuts between
interest rate on deposits and advances, lower treasury gains and core fee income and
increasing in provisions for NPAs is likely to put pressure in the bottom line of the banks.

Going forward, PSBs’ which are close to the required lower level of government stake and
have concentrated presence in particular region are likely to consider its merger with other
PSB as an important option if they want to sustain the growth seen in past.

FUNCTIONS OF BANKS

Primary Functions

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange

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Secondary Functions

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

Utility Functions

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveller's cheque letter of credit.
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.

STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking
units contributing to almost 50% of deposits and 60% of advances. The Reserve Bank
of India is the foremost monitoring g body in the Indian Financial sector. It is a centralized
body that monitors discrepancies and shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) –
the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks

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 2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks
in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub
sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks

Industry estimates indicate that out of 274 commercial banks operating in the
country, 223 banks are in the public sector and 51 are in the private sector. These
private sector banks include 24 foreign banks that have begun their operations here. The
specialized banking institutions that include cooperatives, rural banks, etc. form a part of
the nationalized banks category.

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 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
State co-op Commercial Commercial Banks
Banks and
Banks Banks Primary Cr.
Societies

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI, etc

State Bank of Other Nationalized Regional

India and its Banks Rural Banks
Subsidiaries

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 CLASSIFICATION ON THE BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types:

PUBLIC SECTOR BANKS

Public sector banks are those banks which are owned by the Government. The Govt. runs
these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were
also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present
there are 9 banks are nationalized. All these banks are belonging to public sector category.
Welfare is their principal objective.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country

such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in

preparation to the share of the banks held by him.

CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term &

medium term loans to their members. Co-operative banks are in every state in India.

Its branches at district level are known as the central co-operative bank. The central

Co-operative bank in turn has its branches both in the urban & rural areas. Every state

Co-operative bank is an apex bank which provides credit facilities to the central co

operative bank. It mobilized financial resources from richer section of urban

population by accepting deposit and creating the credit like commercial bank and

borrowing from the money mkt. It also gets funds from RBI.

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ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act. 1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON-SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders. Since
their deposits are for a short-period only. They cannot lend money for a long period. These
banks reform various types or agency job for their customers. These banks are not in a
position to grant long-term loans to industries because their deposits are only for a short
period. The majority of joint stock banks in India are commercial banks which finance
trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
Japan. These banks are established in HAMBURG City of Germany in 1765. In India a
department of post offices functions as a saving banks.

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FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in their
own currency. Thus these banks convert home currency into foreign currency and vice
versa. It is on this account that these banks have to keep with themselves stock of the
currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business

INDUSTIRAL BANKS

The industrial banks extend long term loans to industries. In fact, they also help industrials
firms to sell their debentures and shares. Sometimes, they even underwrite the debentures
& shares of big industrial concerns.

These banks found their origin in India. These banks made a significant contribution to the
development of agricultural and industries before independence. Mahajans, rural
moneylenders and jewelers have been the forerunner of these banks in India.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to the
development of agricultural and industries before independence. Mahajans, rural
moneylenders and jewelers have been the forerunner of these banks in India.

CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty &
responsibility of carrying out the monetary policy formulated by the government. India's
central bank known as the reserve bank of India was set up in 1935.

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AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of banks
of finance agriculture. The credit requirement of the farmers are two types. Firstly the
farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There are
two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provides short-term credit, while the letter extend
long-term loans to the farmers.

OPPORTUNITIES

The Banking sector is considered the most lucrative option in today’s job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by
careers in Private Banking, Investment Banking and Retail Banking. One could work in a
variety of areas in banking industry including Recurring Deposit account, banking officer,
probationary officer, loan officer, assessor, personal loan officer, home loan officer, home
loan agent, loan manager, mortgage loan underwriter, loan processing officer, accountant,
product marketing and sales executive, and customer service executive among others.

In the Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions
for some commission. While some brokers like to practice with individual clients others
work for institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities analysts. Security
analysts are those who advise companies on floatation’s of shares as they are expected to
have sound knowledge of capital markets.

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Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability
projections, compare financial results, survey the industry as a whole and on the basis of
the available information, and finally conclude to a decision. Equity Analysts do jobs
similar to investment analysts and research the equity markets and make predictions.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

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 INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.

Integration of digital technologies into everyday life by the digitization of everything that
can be digitized.

“Digital” is the new buzz word in the banking sector, with banks all around the
globe hopping onto the digital bandwagon. Just like how the introduction of
mobile technology massively disrupted innovation in the banking sector, digital is
now doing the same. Banks of all sizes are making sizeable investments in digital
initiatives in order to maintain a competitive edge. So, what does “digital” actually
mean?

It definitely provides a glimpse into the future of banking. What digital essentially does is
that it uses technology to design experiences, both seen and unseen. “Digital is all about
making what can be seen unseen – making services so smooth and seamless that it becomes
invisible to the customer”. “Despite all the automation and improvements that digital
banking has the potential to achieve, customers and their needs still form the very core of
the banking sector.”

It is the simplicity of design, the removal of friction and the ability to improve the customer
experience.

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 DIGITAL BANKING

MEANING AND DEFINITION

“Digital Banking – a new concept in the area of electronic banking, which aims to enrich
standard online and mobile banking services by integrating digital technologies, for
example strategic analytics tools, social media interactions, innovative payment solutions,
mobile technology and a focus on user experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across all

channels and points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services,
organization, culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

Digital Banking is the application of technology to ensure seamless end-to-end processing

of banking transactions/operations; initiated by the client, ensuring maximum utility; to the
client in terms of availability, usefulness and cost; to the bank in terms of reduced operating
costs, zero errors and enhanced services.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,
ii. fewer (or ideally no) errors,

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 iii. smaller branch footprint (the typical branch can become a kiosk affair, providing
technology interfaces for the client to use plus the ability to deal with banking
specialists via a video link) – a minimum number of actual staff will be required.
iv. concentrating banking/business specialists in a single centre, who are then
available to clients via a technology link (either on their mobile, pc or via a kiosk
branch).

Operating cost savings of between 20% to 40% could be achieved this way, according to
industry experts. Cutting costs has the opposite effect on profits – they go up.

2. Dumping legacy systems;

i. Make no mistake - one of the biggest drawbacks to going ‘Digital’ is this
irrational clinging to legacy systems (developed in the 1960s and 1970s) that
hold progress back. Banks plead the huge cost of making the change. They are
wrong. The ultimate costs of not making the change are far greater.

Benefits to the customer:

1. Improved services and product offerings;

i. 24/7 bank services and availability through your mobile, pc or kiosk branch,
ii. ‘smart banking’ applications that allow ALL transactions to be completed from
the device of your choice, from beginning to end (with clear instructions and fail
safe mechanisms),
iii. access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),
iv. new useful client services such as warnings, notifications, budgeting,
expenditure analyses, savings programs, calculators (you name it – the range is
endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the client’s needs (not the banks)
vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products

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 3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Digital banking is set to overtake branch networks as the preferred access channel for how
customers will interact with their bank by 2015.

Online and mobile are preferred channels, particularly for Generation Y customers

Immersed in digital

Digital communication is pervasive; from mobile phones to tablet computers, we are

immersed in digital. Recent development of new digital features has led to:

 Improvements in user-experience design through interactive, game-like interfaces that are

starting to merge the boundaries between the real and the virtual and bringing data to life
through rich visualizations.
 Advances in mobile devices and networks, providing new services such as enhanced digital
security and the ability to access the Internet from anywhere (partially limited by high
international roaming charges).
 The rise of social media and collaboration tools, empowering customers and employees, and
moving control of the ‘brand message’ from businesses to consumers.

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 Innovation in digital analytics and predictive models, driving deeper insight into customers’
behavior and enabling highly targeted and relevant treatment strategies to be executed through
digital media.
 New channel integration technologies, enabling a more seamless end-to-end experience for
customers with their bank.

Generation Y is fully embracing digital communication and is the customer group with
whom banks need to establish customer primacy relationships. The advantage of being the
primary bank is increased share of wallet and higher revenue over time, based on a strong
sense of customer loyalty – and good customer service.

PwC research shows that Generation Y are more than 20% more likely to use, or consider
using online or mobile banking services, than Baby Boomers and nearby twice as likely as
‘matures’. According to this research, their primary bank is consistently more likely to be
the bank of choice for customers when they are planning to buy another banking product.

Consumer expectations are changing with digital interaction

Present day consumers expect high quality digital communication. Rich content including
elegant designs, instant search results and interactive features. Bank websites, especially
online banking sections, are now required to offer a pleasant experience while remaining
highly functional.

It is still common for banks to send out account statements using the postal service;
however, for many people digital banking offers 24/7 account balance control – there is a
clear preference, especially for younger customers, to want instantaneous access to their
accounts. The posted account statement is snail mail in comparison. The utility of snail
mail, by contrast, is rapidly dying.

Consumers have access to more information than ever before, they now communicate with
more people and more frequently – traditional word-of-mouth has a completely different
meaning when one considers the immediacy of Facebook, Twitter or even email. Access
to information and the ease with which consumers can share views with those they know

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– or even ‘the world’ – is dramatic. Good experiences can be easily shared online... as can
negative ones.

It is important that banks understand the importance of customer thinking in deciding

where to trust their money and in choosing their primary banking relationship. This has
long-term influence personally, but also as an element of influence on their friends and
those they communicate with online.

Banks should consider four main aspects of a robust digital offering:

1. Customer attitudes and behavior are changing

2. Digital is preferred globally.

3. Digital is a part of Generation Y’s lifestyle and this is the key time for them to decide
on their primary banking relationship.

4. Digital is evolving – technology devices and software all serve to disrupt traditional
means of communication. Simultaneously, each brings opportunity.

Security is the foundation of digital banking

Security extends from the bank’s hardware to the user’s device – whether a PC/Mac at
home, an iPad or the newest Smartphone. In all cases, digital banking must employ robust
security technologies which protect the communication, user information and the bank’s
IT infrastructure.

Indeed, it is clear that for digital banking to be a rewarding experience for the customer
and a profitable growth area for the banks, technology partners, payment processing service
providers and mobile phone operators – there ought to be a comprehensive agreement on
shared technology standards and processes. The European Commission has just issued a
Green Paper, ‘Towards an integrated European market for card, internet and mobile
payments’ which addresses many of the issues while being much broader than online
banking itself. Luxembourg’s LuxTrust is a strong step here in moving digital banking
forward in terms of a security standard.

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Digital in Private Banking

Private Banks have been slow to introduce digital technology applications for their
customers arguing that the private banking industry is a personal and pre-dominantly face
to face business with little need for such applications to enhance the relationship. Security
and privacy issues are two of the reasons cited for not embracing these new developments.

However, there are a number of arguments for private banks to seriously evaluate their
digital strategy and make it one of the cornerstones of their service offering and brand
building activities. As the next generation of private banking clients start to dominate,
private banks will need to avoid the image of an old out-of-date bank that has lost touch
with its clients.

Private banking is about being a trusted advisor as well as being connected and
recommended. Since the digital revolution, which started in the 1990’s, people are
increasingly turning to the Internet not only to inform themselves regarding financial
products but also the reviews of other customers using the products and services.
Customers are already using social media to share their views on financial products and
services.

There is some recognition here in Luxembourg of the increasing place digital

communication is taking, as noted in The PwC Global Private Banking / Wealth
Management Survey 2011 which found that 38 percent of private bankers expected to
interact more with their clients through social media in the next two years and that 56
percent of private banks expected to use mobile technologies over the same period.

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 COMPANY PROFILE

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to
receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI’S liberalization of the Indian Banking Industry.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become “a world class Indian bank”, benchmarking themselves
against international standards and best practices in terms of product offerings, technology,
service levels, risk management and audit and compliance. The objective is to build sound
customer franchises across distinct business so as to be a preferred provider of banking
services for target retail and wholesale customer segments and to achieve a healthy growth
in profitability, consistence 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.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.
 Maintain their current high standards for asset quality through disciplined credit
risk management.

21
 Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

Bank logo

Type Private company

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Aditya Puri (MD)[1]

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking

22
 Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards[2]

Revenue ₹74,373.22 crore(US$11 billion)

(2016)[3]

Profit ₹12,817.33 crore(US$1.9 billion)

(2016)[4]

Total assets ₹687,892 crore(US$100 billion)

[4]
(2015)

Total equity ₹505.64 crore(US$75 million) [5]

Number of 76,286 (March 2015)[6]

employees

Website HDFCBank.com

Registered Office

HDFC Bank House,

Senapati Bapat Marg, Lower Parel,

Mumbai, Maharashtra – 400013

23
Management at HDFC
S.No Name Designation

1 Shyamala Gopinath Chair Person

2 Paresh Sukthankar Deputy Managing Director

3 A N Roy Director

4 Keki Mistry Director

5 Renu Karnad Director

6 Umesh Chandra Sarangi Additional Director

7 Mr. Aditya Puri Managing Director

8 Kaizad Bharucha Executive Director

9 Bobby Parikh Director

10 Partho Datta Director

11 Malay Patel Director

Other Detail:

Business Group HDFC Group

Listings BSE , NSE , NYSE

ISIN No. INE040A01018

Incorporation 31/12/1994

Public Issue Date 31/12/1995

24
Promoters

HDFC is India’s premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

Capital Structure

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The paid-
up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317 ) equity
shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity and about
18.87 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 32.57
% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4,41,457
shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on
the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002

Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against Rs.629,322
crores as of June 30, 2015. The Bank’s total income for the quarter ended June 30, 2016
was Rs.19,322.6 crores, as against Rs.16,503.0 crores for the quarter ended June 30, 2015.
Net revenues (net interest income plus other income) increased by 19.6% to Rs.10,588.1

25
crores for the quarter ended June 30, 2016 as against Rs.8,850.7 crores in the corresponding
quarter of the previous year.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-
time basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking and SMS based banking. The
Bank’s expansion plans take into account the need to have a presence in all major industrial
and commercial centres, where its corporate customers are located, as well as the need to
build a strong retail customer base for both deposits and loan products. Being a clearing /
settlement bank to various leading stock exchanges, the Bank has branches in centres where
the NSE / BSE have a strong and active member base.

As of June 30, 2016, the Bank also has a network of 4,541 branches and 12,013 ATMs
across India. Moreover, HDFC Bank's ATM network can be accessed by all domestic and
international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

Management

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs.
Gopinath has 39 years of experience in financial sector policy formulation in different
capacities at RBI. As Deputy Governor of RBI for seven years and member of the Board.
Mrs. Gopinath had been guiding and influencing the national policies in the diverse areas
of financial sector regulation and supervision, development and regulation of financial
markets, capital account management, management of government borrowings, forex
reserves management and payment and settlement systems.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years
and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

26
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional
expertise of the management team and the overall focus on recruiting and retaining the best
talent in the industry, the bank believes that its people are a significant competitive
strength.

Technology

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online connectivity,
which enables the bank to offer speedy funds transfer facilities to its customers. Multi-
branch access is also provided to retail customers through the branch network and
Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. In terms of core
banking software, the Corporate Banking business is supported by Flexcube, while the
Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open,
scaleable and web-enabled.
The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market share.

Business Profile

HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the retail
side. The bank has three key business segments:

Wholesale Banking Services

27
The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

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, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high-net-worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind needs
of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers.
It is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

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. The

28
Bank launched its credit card business in late 2001. By March 2015, the bank had a total
card base (debit and credit cards) of over 25 million. The Bank is also one of the leading
players in the “merchant acquiring” business with over 235,000 Point-of-sale (POS)
terminals for debit / credit cards acceptance at merchant establishments. The Bank is well
positioned as a leader in various net based B2C opportunities including a wide range of
internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk
on this investment portfolio.

Ratings/Awards

Credit Rating

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible investment
risk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which
represents "superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)"
rating to the bank's deposit programme, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high".

29
HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion
rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of
"CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the
rating "AAA (ind)" with the outlook on the rating as "stable". In each of the cases referred
to above, the ratings awarded were the highest assigned by the rating agency for those
instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). 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. The bank was assigned a 'CRISIL
GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect
to wealth creation for all its stakeholders while adopting sound
corporate governance practices are the highest.

Awards and Achievements

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

It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.
2016

30
IDRBT Banking Technology Excellence Best Bank in Banking Technology
Awards 2016 Excellence for the year 2015-16

Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial

Awards Industry & Digital Banking

Dun & Bradstreet Corporate Awards HDFC Bank wins Dun & Bradstreet
2016 Corporate Award 2016 in the Banking
sector

The Financial Express India's Best Banks - Profitability: Rank 1

Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1

Outlook Money Awards 2015 - Best Bank of the year : Runner up

- Winner : Institutional Financial
Distributor of the year

Pension Fund Regulatory and - Best Performing Bank - Maximum

Development Authority awards for Atal APY Subscribers
Pension Yojana - Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector
Banks

Business Today KPMG India's Best Banks 2015

Awards

31
Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30
Global CEOs for 2nd year

IBA Awards HDFC Bank wins prestigious IBA

Banking Technology Awards

Business Today Best Companies to Work for in India

NABARD Award Best Bank in JLG-Bank Linkage

programme in Assam

Business Today - KPMG India's Best HDFC Bank wins Bank of the year and
Bank Best Digital Banking Initiative awards

NABARD Award - The Best Bank in HDFC Bank wins NABARD Award
SHG Credit Linkage in Tamil Nadu

2015

AIMA Managing India Awards 2015 - Business Leader of the Year - Aditya
Puri

Barron's - World's 30 Best CEOs - Mr Aditya

Puri

32
Finance Asia poll on Asia's Best - Best Managed Public Company -
Companies 2015 India'
Best CEO- Aditya Puri
Best Corporate Governance- Rank 3
Best Investor Relations- Rank 3

J. P Morgan Quality Recognition - Best in class straight Through

Award Processing Rates

2014

Euro money - HDFC Bank wins Best Private Banking Services for
Super affluent clients for 5 years in a row at Euro money
Awards

Euro money Private - Best Private Banking Services award for Net-worth-
Banking and Wealth specific services category for Super affluent clients (US$
Management 1 million to US$ 5 million).
Survey 2015 - Best Private Banking Services award Asset
Management

FE Best Bank - Best Bank in the New Private sector

Awards - Winner - Profitability
- Winner - Efficiency

Business Today - - Best Large Bank - Overall

KPMG Study 2014 - Best Large Bank - Growth

33
Business world- - Best Large Bank
PwC India Best - Fastest Growing Large Bank
Banks Survey 2014

Asia money FX Poll - Best Domestic Provider of FX options

2014 - Best Domestic Provider of FX products & Services
- Best Domestic Provider of FX research & market
coverage
- Best Domestic provider for FX Services

The Asian Banker Strongest Bank in India in the Asian Banker 500 (AB 500)
Strongest Bank by Balance Sheet Ranking 2014

Dun & Bradstreet - - Best Bank - Managing IT Risk (Large Banks)

Polaris Financial - Best Bank - Mobile Banking (Large Banks)
Technology - Best Bank - Best IT Team (Private Sector Banks)
Banking Awards
2014

Forbes Asia Fab 50 Companies List for the 8th year

Brands TM Top 50 India's Most Valuable Brand

Most Valuable
Indian Brands study
by Millward Brown

Finance Asia - Best Bank - India

Country Awards - Best CEO- Rank 1
2014 and poll on - Best CSR - Rank 1
- Best CFO - Rank 2

34
India's Top
Companies

Asia money Best of Best Domestic Banks - India

Dun & Bradstreet - Best Corporate in Banking Sector

Manappuram
Finance Limited
Corporate Award
2014

35
 Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The product of HDFC bank are

Savings Account
Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with
variety of features. The interest rates on the Savings Account are 4% p.a. which is
calculated daily on the end of day balance. The following accounts and their respective
interest rates are mentioned underneath:
 Savings Max Account
 Regular Savings Account
 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Basic Savings Bank Deposit Account
 Institutional Savings Account
 BSBDA Small Account

Salary Accounts
The bank offers multiple types of salary accounts to suit the needs of all types of corporate.
The salary accounts offer various features to the accountholders like free insurance
coverage. The different types of Salary Accounts are:
 Premium Salary Account
 Regular Salary Account
 Defence Salary Account
 Salary Family Account
 Classic Salary Account
 Reimbursement Account

36
  Basic Savings Bank Deposit Accounts – Salary

Current Accounts
Current accounts are required by businessmen and professionals who have regular
transactions through the bank. The account deals mainly in liquid deposits and allows
unlimited number of transactions every day like funds being withdrawn or cheques being
written against the account without worrying about the balance in the account.
Professionals, traders, SME businessmen, agricultural businesses can avail various benefits
like fund transfers between all HDFC Accounts, free local collections through cheque and
fund transfers as well as easy inter-city banking. Moreover, the bank also offers a range of
Current Accounts to suit individual preferences like:
 ULTIMA Current Account
 Supreme Current Account
 Apex Current Account
 EZEE Current Account
 Max Current Account
 Agri Current Account
 Plus Current Account
 Current Account for Hospitals and Nursing Homes
 Trade Current Account
 Current Account for professionals
 Premium Current Account
 Merchant Advantage Plus Current Account
 Regular Current Account
 Merchant Advantage Current Account
 Flexi Current Account
 Institutional Current Account

37
Deposits
Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest
rates. HDFC Bank also offers various types of deposit accounts promising high interest
rates for customers seeking deposit accounts. Here are the deposit accounts available with
the bank:
 Regular Fixed Deposit
 Recurring Deposit
 5 year Tax Saving Fixed Deposit
 Safe Deposit Locker – the bank also provides the facility of Safe Deposit lockers
for you to store your valuable deposits. The lockers are available in various sizes at
various locations.
Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural
accounts available:
 Basic Savings Bank Deposit Accounts – Farmers
 Kisan Club Savings Accounts

Loans
HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans
are available with the bank:

Personal Loan Business Loan

Home Loan Car Loans

Two-Wheeler Loans Gold Loan

Loan against Assets Educational Loan

38
 Government Sponsored Programs Rural Loans

Credit Cards
The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank are as follows:

Super Premium Cards- There are 3 variants under the Super Premium Variety which are:
 Infinia
 Regalia
 Diner’s Club Black

Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and
Times Group which offer special discounts on airline travel through Jet Airways and offers
on dining and movie tickets. The range of co-brand cards includes:
 Jet Privilege HDFC Bank World
 Jet Privilege HDFC Bank Platinum
 Platinum Times Card
 Titanium Times Card

Professional Credit Cards- Credit cards issued specifically to professionals like Doctors
and Teachers with best lounge programs and freedom to fill fuels across any fuel s
respectively. The cards come in two variants:
 Doctor’s Superia
 Teacher’s Platinum

Premium Travel Cards- These cards are specially designed to offer travel related benefits
and discounts. The cards offer reward points which can be redeemed against air tickets or
against dining and also lounge access of airports. The range includes:

39
  Superia
 AllMiles

Cash back cards- The specialty of these cards is that the card promises cash back on
everyday spends in the form of Reward Points which can be redeemed to get cash back and
also zero fuel surcharge. The range of cash back cards include:
 Platinum Edge
 Titanium Edge
 Money Back

Premium Cards- Credit cards which offer premium range of offers and discounts on dining,
entertainment and complimentary access to airport lounges. The premium rage of credit cards
includes the following types of cards:
 World MasterCard
 Diners Club Premium
 Diners Club Rewardz
 Visa Signature

Solitaire- A premium card especially for women customers with exclusive offers and
rewards for females.

Platinum Plus Card- It is a regular credit card designed for regular usage offering Reward
Points on everyday spends and also fuel surcharge waiver.

Commercial Cards- Arrange of credit cards especially designed for business usage
offering fuel surcharge waiver, lounge access to airports, travel and entertainment benefits
and also air tickets discounts. The range of business cards include:
 Business Platinum
 Business Gold Credit Card
 Corporate Platinum
 Corporate World MasterCard

40
  Corporate VISA Signature
 Corporate Card
 Purchase Card
 Distributor Card

Debit Cards
HDFC Bank offers Debit cards with every Savings Account to customers which are safer
than carrying cash because they require a PIN every time they are used, they provide great
discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used across
almost all outlets for payment. The range of debit cards issued by the bank are:
 EasyShop Platinum Debit Card
 Jet Privilege HDFC Bank World Debit Card
 Easy Shop Titanium Royale Debit Card
 EasyShop Titanium Debit Card
 EasyShop Debit Card
 EasyShop Business Debit Card
 EasyShop Women’s Advantage Debit Card
 EasyShop NRO Debit Card
 EasyShop Imperia Platinum Chip Debit Card
 EasyShop Gold Debit Card
 RuPay Premium Debit Card

Demat Account
HDFC Bank issues Demat Account for investors like traders, long term investors as well
as beginners for a flexible and customized solution. The demat account offered by the bank
is safe and dependable for buying and storing a customer’s equity investments, mutual
funds, IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and NCDs. The
account can also be opened online and the types of demat accounts offered are as follows:
 Demat Account
 2 in 1 Account
 3 in 1 account

41
Investments
HDFC bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance products and General Insurance Products. The
investment products are further subdivided into the following categories:
 Mutual Funds
 Equities & Derivatives through HDFC Securities Trading Account
 IPO Application through ASBA (Application Supported by Blocked Amount)
 Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat pure
gold bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and tamper
proof packing
 Investment in Silver through Mudra Silver Bars which are available in 50g and
100g with Assay Certification and tamper-proof certified packaging.
 8% Savings Bond which are risk-free and can be bought with a minimum
investment of Rs.1000
 Sec 54 EC – Capital Gains Bond with a maximum investment of 50 lakhs and tax
exemption on capital gains
 Inflation Indexed National Savings Securities – Cumulative (IINSS – C) with a
minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance
HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and the
non-life insurance products are issued in association with HDFC Ergo. The following are
the heads of insurance and their respective plans:

Life Insurance
The list of below mentioned plans range from term insurance, endowment insurance and
money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete

42
insurance products basket for customers to choose from. The plans available are:

 HDFC Life Click2Protect Plus Plan - an online term insurance plan with varied
options corresponding to benefits payable
 HDFC Life Health Assure Plan - a health plan
 HDFC Life Cancer Care – a health plan specifically designed for diagnosis and
treatment of cancer
 HDFC Life Pension Super Plus – a pension plan which guarantees income after
retirement
 HDFC SL ProGrowth Super II – a Unit Linked Plan giving the dual benefit of
insurance and market linked growth for wealth appreciation
 HDFC SL YoungStar Super Premium – a Unit Linked Child Plan taking care of
your child’s future while at the same time giving increased benefits in the form of
market linked returns.
 HDFC Life ProGrowth Plus - a unit linked insurance plan
 HDFC Life Classic Assure Plus – a limited premium life insurance plan with
higher protection option
 HDFC Life Super Savings Plan – a participating Endowment Assurance plan
with built-in Accidental Death Cover for a comprehensive coverage
 HDFC Life Personal Pension Plus – a pension plan with lifelong pension option
and guaranteed benefit at maturity
 HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to choose
Accidental Death Coverage
 HDFC Life Guaranteed Pension Plan – a limited term premium paying annuity
plan with guaranteed lifetime pension payments
 HDFC Life New Immediate Annuity Plan – an immediate annuity plan wherein
the pension payouts start immediately after payment of the Purchase Price
 HDFC Life Smart Woman Plan – an award winning insurance cum investment
plan designed for women for covering their life as well as maternity expenses,
congenital or malignant female-specific cancers

43
  HDFC Life Invest Wise Plan – a single premium ULIP plan for wealth
maximization without having to pay regular premiums
 HDFC Life Single Premium Pension Super Plan – a single pay pension plan
with market linked returns and an assured benefit of 101% of premiums paid on
vesting or maturity
 HDFC SL Crest – a simple insurance plan which can be taken by filling up a
Short Medical Questionnaire
 HDFC Life Super Income Plan – a participating guaranteed benefits plan which
pays regular incomes in the payout period of 8-15 years
 HDFC Life Sanchay – a traditional life insurance plan with a limited premium
paying term
 HDFC Life YoungStar Udaan – a child insurance plan which can be either
availed as an Endowment Plan with lump sum benefit at maturity or money back
plan with benefits paid out in instalments during the last 5 policy years
 HDFC SL ProGrowth Maximiser – a single pay unit linked plan with no limit on
the maximum premium investment
 HDFC Life Click2Invest ULIP – a unit linked plan available online
 HDFC Life Sampoorna Samridhi Plus Plan – a limited payment endowment
assurance plan wherein the cover can be extended for up to 100 years
 HDFC Life Sampoorna Nivesh – a traditional insurance plan with single, regular
or limited premium paying options

Health Insurance
Health Insurance falls under the purview of general insurance and four types of health
insurance plans are offered by the bank which are as follows:
 Health Suraksha – a health plan covering hospitalization, pre and post
hospitalization expenses, day care procedures, domiciliary treatment and organ
donor expenses. The coverage can be taken for an individual and also his family with
treatments in a network of 4800+ hospitals.
 Critical Illness Silver Plan – a health plan specifically designed for treatment of
critical illnesses covering 8 critical illnesses in its scope of coverage

44
  Critical Illness Platinum Plan – a critical illness plan which covers 15 critical
illnesses and provides the benefit upon diagnosis of the covered illness
 Individual Personal Accident Plan II – a personal accident plan which can be
taken for self and family and covers hospital expenses, injuries, disability due to
accident with a coverage range of 2.5 lakhs to 15 lakhs
 Motor Insurance – motor insurance is offered to customers in partnership with
HDFC Ergo and there are two types of motor insurance plans available:
Commercial Vehicle Insurance – it provides comprehensive coverage for your
commercial vehicle across 1600+ network garages in India
Private Car Insurance – insurance coverage for your private car with cashless
claims across 1600+ network garages. Moreover, the plan also offers discounts
based on age and occupation
 Two –Wheeler Insurance – an insurance plan for your two-wheeler with a
provision of cashless claim across 1600+ network garages throughout the country.
 Travel Insurance – an insurance plan for domestic and international travel be it
for business or leisure purposes. The plan covers emergency medical expenses,
emergency medical evacuation, repatriation of remains, emergency dental expenses,
hospital cash, accidental death and permanent total disability while flying in a
common carrier, personal accident, flight delay, loss of baggage and personal
documents, delay of checked-in baggage, personal liability, financial emergency
assistance, contingency travel benefits and hijack distress allowance.
 Home Insurance – an insurance policy issued to protect the home as well as its
contents. The plan covers risk against fire, lightning, explosion, flood, inundation,
storm, riot, strike, earthquake, terrorism, burglary and theft with coverage for 1-5
years.

Digital Services at HDFC Bank

HDFC Bank provides a very good digital service to the customer for their transaction.
Through these services the customer of the bank can also access their transaction. Digital
services include-

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1. Fund transfer

HDFC Bank allows various categories of Fund Transfer options for safe and secure fund
transfers which make banking easy. The fund transfer options are:

E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient and
supports fund transfers from any bank branch to any other bank branch anywhere in India.
RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank fund
transfer in real time which is speedier, faster and has no geographical limits.
Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank
form the comfort of one’s home and the payment is safe and charges at a negligible fee.
IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank
electronic fund transfer service which can be done even on Sundays or Bank holidays or
late at night.

2. Online Banking
With an increasing trend of internet usage, everything has been digitalized and the bank is
not behind in this race. The bank offers the facility of Online banking to its customers
which is safe and reduces unnecessary hassles of visiting the branch to carry out any
transaction. Online banking service offered by HDFC Bank includes:

Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to-
the-second account information, Net Banking manages customer’s account from the
comfort of costumer’s mouse- anytime, anywhere.

Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking numbers in your city to register for Net banking.

Net Banking offers a host of banking transactions from the comfort of the customer’s home.
One can check the bank account balance, book a Fixed or Recurring Deposit, recharge the
mobile or DTH Connection, paying off utility bills, paying taxes, applying for IPO, invest

46
in Mutual Funds online to name a few. The process is fast and completely secured without
having to worry about any fraud or theft.

Bank industry leading service provides a host of features at customer finger-tips:

 View Account Balances & statements

 Transfer Funds between accounts
 Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills
 Order a cheque Book
 Request stop payment on cheques
 And lots more

Benefit of Net Banking

Internet Banking is the most convenient and powerful way to manage customer’s account.
Net Banking is Real Time, giving them up-to-the-second details on customer’s account. It
can be accessed anytime, from anywhere, giving them complete control over their finances.
There are no queues to stand in, or turn to wait for. With Net Banking you are in control.

HDFC Bank’s Net Banking is secure. Using industry-standard technologies and

infrastructure, our service gives you peace of mind. So next time you think of visiting your
branch, switch on your PC instead. View the Net Banking Demo and see how easy it is it
use.

Credit Card Net Banking: Through this facility the customer can view the credit card
activities online, pay the credit card bills, view Credit Card Statements online, know the
unbilled transactions and get the complete account information
Email statements: A savings or a current accountholder are eligible to get their account
statements on their email id. The Savings accountholders get a monthly statement and the

47
Current Accountholders get daily, weekly or monthly statements. The statements are free
of cost and display all the relevant transactions of the relevant period.
Loan accounts online: This feature enables the bank to provide post loan services to the
customers. Loan customers of the bank can log in and view their loan summary, transaction
history and loan account details.

3. Phone Banking
The bank extends banking information to your phone where information is available at the
end of a simple phone call.
The customer can also call the bank and effect transactions over the phone. Transactions
like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and
cheque status, ordering cheque books, stopping cheque payments, credit card related
queries can all be solved by a call to the bank’s phone banking division.
Now your bank account is now just a phone call away. Through Phone Banking you can:

 Check your account balance.

 Enquire on the cheque status.
 Have a mini statement faxed across to you.
 Request for a cheque book / Account statement.
 Enquire on your fixed deposits / TDS.
 Open a fixed deposit
 Request for Demand Draft / Managers Cheques.
 Transfer funds amongst your linked accounts
 Pay utility and HDFC Bank Credit Card bills.
 Do stop cheque payments.
 Report loss of your ATM /Debit Card.
 Product information.

4. Mobile Banking

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By simply downloading the bank’s app on your smart phone, you can avail of over 75
transactions. The application is secure and fast. Mobile is now your bank! Now access your
bank account and conduct a host of banking transactions and inquiries through your mobile,
with our unique Mobile Banking services.
Mobile Banking is a service that allows you to do banking transactions on your mobile
phone without making a call, using the SMS facility.

Uses of Mobile Banking:

Mobile Banking service provides a host of features at your finger-tips through SMS:

 Get your balance detail

 Obtain your last 3 transactions details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get fixed deposit detail
 Pay your bills

How does it work?

Mobile Banking works through a set of text massages (SMS). With SMS you can perform
a wide range of query-based transaction from your Mobile Phone, without even making a
call.

All you need to do is to type in the specified code for the transaction as a text massage and
send 5676712.

See designated codes for GSM Phone.

See designated codes for Reliance India mobile Phones.

You will receive the response in form of a text message on your mobile phone screen within
a few seconds.

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How is this different from making a call on mobile phone or using Phone Banking?

The differences between making a call on mobile phone and sending a text message are as
follows:

You are not required to dial a number; you send a text message i.e. a coded message to
5676712

HDFC Bank does not charge anything for this service and there is no airtime involved.
However, the Cellular Service Provider may levy a nominal charge for the SMS facility.

In Mobile Banking, you actually see your banking transactions on your mobile phone
screen as opposed to hearing a message through the phone.

How do avail of this service?

a) If you are opening an account with the bank, you can apply for MobileBanking through
the account opening document.

b) If you already have an account with the bank, you can apply for MobileBanking through
the combined Direct Banking Channels form. You can download the form and call for a
sales representative. Alternatively, you can fill this form and hand it over to your nearest
branch.

c) If you already have an account with the bank and if you are registered for Net Banking
services, then you can register online using the 'Mobile Banking Registration' option
available inside Net Banking.

Does it cost anything?

No, this service is brought to you FREE from HDFC Bank. Also, since you are using the
text messaging service from your mobile phone, you do not incur any airtime charges in
making a phone call from your mobile phone. However, the Cellular Service Provider may
levy a nominal Value-Added Services (VAS) charge for the SMS facility.

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5. Insta Alerts
Insta Alert is a service through which the bank can proactively inform customers about
transactions / events that occurs in his bank account. This information can be given to the
customers via SMS on their mobile phone, or through an email to their mail id or both.
Alert could either be event based e.g., Salary Credit or Frequency based e.g. Weekly
balance of account. Alerts acts as an important value add in the service that bank provide
to the customers, as it will help in proactively informing the customers about their bank
account related activities. This reduces the load from bank channels like Phone Banking or
branches as customer does not need to call for getting information on Cr/Dr in accounts.
Alerts also increase the Brand Recall of the bank in the minds of customers.
SMS & Email – your account transactions also generate a SMS or email alert where any
debit transaction, credit transaction and maintenance of account balance is alerted to the
customer if registered.

Types of alerts:

The customer can register for any or all of the following alerts.

 Debit transactions greater than Rs 5000 / 10000 / 200000 / 500000

 Credit in account greater than Rs 5000 / 10000 / 200000 / 500000
 Account balance below Rs 5000 / 10000 / 200000 / 500000
 Weekly account balance
 Salary Credits
 Utility bill payment due Alerts
All in all, company will be giving their employees an account that makes banking a
pleasure for them. While corporate save time and money by directly crediting there
employees’ salary nation-wide at one go.

6. Insta Query
Insta query is a service that allows you to do a banking transaction on your mobile phone
without making a call. You can do your transaction using the SMS facility

What can I do use Insta Query?

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 Get your balance details
 Obtain your last 3 transaction details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

How does it work?

Insta Query works through a set of text messages (SMS). With SMS you can perform a
wide range of query-based transactions from your mobile phone, without even making a
call.

All you need to do is to type in the specified code for the transaction as a text message and
send it to 5676712.

You will receive the response in the form of a text message on your mobile phone screen
within a few seconds

7. ATM
Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank
almost anytime. To withdraw cash, make deposits, or transfer funds between accounts, you
generally insert an ATM card and enter your PIN. Some financial institution and ATM
owners charge a fee, particularly to consumers who don’t have accounts with them or on
transactions at remote locations. Generally, ATMs must tell you they charge a fee and its
amount on or at the terminal screen before you complete the transaction. Check the rules
of our institution and ATMs you use to find out when or whether a fee is charged.

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It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by far
the largest investment ever made in electronic self-service by financial institutions. Over
US$ 40 billion has been invested in simply buying these machines and many times that in
running them. There are now over 1.1 million machines operating in over 140 countries
worldwide.

The banks are losing the cashier’s checks, check cashing and even cash dispensing to the
c-stores and grocery stores. They are asleep at the switch and watching more transactions
walk away to convenience stores and supermarkets that provide 24 hour access and
integrated transactions.

ATMs do provide a larger set of functions, such as check cashing, ticket sales or money
orders. We already know that cash dispensing as a dedicated function is a sustainable
application, the question is whether that application can be incorporated successfully into
a more complex consumer product that offers multiple applications.

Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash
options provide the facility of withdrawing prefixed amounts. Ultra-Fast Cash option
allows you to withdraw Rs.3000/- in one shot.

Balance Enquiry: Know your ledger balance and available balance.

Mini Statement: Get a printout of your last 8 transactions and your current balance.

Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit both
cash and cheques. / Cash deposited in ATMs will be credited to the account on the same
day (provided cash is deposited before the clearing) and cheques are sent for clearing on
the next working day.

Funds Transfer: Transfer funds from one account to another linked account in the same
branch.

PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card.

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Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for
payment of bills, making donations to temples / trusts, buying internet packs, airtime
recharges for prepaid mobile phones and much more…

Others: Request for a cheque book from ATMs and our concerned branch will dispatch it
such that it reaches you within 10 working days.

DIGITAL INITIATIVES

Private sector lender HDFC Bank launched nationwide campaign to position itself as a
premier digital bank.
Integrated, nationwide brand campaign “Har Zaroorat Poori Ho Chutki Mein, Bank Aapki
Mutthi Mein... the campaign will reinforce bank's position as India's premier digital bank".
Some initiatives are-
PayZapp– A complete payment solution for all your needs.

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Chillr – App to enable customers to send money to any person on phone contact list.
Digital Wallet -to transact on any website for HDFC Bank and non-HDFC Bank
customers.
HDFC Bank Watch Banking– A banking experience on a personalized wearable device
taking consumer’s interaction with the bank to a whole new level.
30-Minute Auto Loan, 15-minute Two-Wheeler Loan.
10-second personal loan disbursement.

HDFC Bank’s PayZapp

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As smartphones are turning into wallets, several startups and banks have launched mobile
applications to enable peer-to-peer transactions, micro-payments as well as payment
solutions for merchants.

HDFC Bank, one of India's leading private sector bank, has now launched a comprehensive
mobile payment solution that encompasses several mobile commerce scenarios. The latest
initiative in HDFC Bank's digital banking offering christened #GoDigital, 'PayZapp',
allows one-click payments for all your spends.

PayZapp offers easy checkout using a single PIN without the need to enter credit/debit card
details or a code or OTP for the second factor authentication. The wallet in the app is linked
to your credit and debit card and acts as a virtual card - a virtual international card that you
can use for any transactions across the globe.

It doesn't have any transaction limit as well. Also, the app allows users to transfer money
instantly to anybody using a mobile phone or an email ID.

The app also integrates SmartBuy, a virtual mega marketplace from HDFC Bank that lists
all deals and offers by leading e-Commerce portals as well as utility payment options.
While HDFC Bank has managed to partner with leaders like Flipkart, Makemytrip,
Cleartrip, BookMyShow, Expedia, GoIbibo, Yatra and Big Basket at the launch, the bank
intends to get over 10,000 merchants onboard in next 45 days.

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But you are limited in options when you're booking an airline ticket. For instance, since
only partner OTAs would be available, but apart from straightforward discounts and
promotions, you'd also save on the convenience charges.

In a casual conversation, the bank stated that one is likely to save at least 10-15% on typical
monthly purchases via SmartBuy.

At the moment, the app is available only for HDFC Bank customers and for Android
devices only. In the second phase - next three months - the service would open to other
cardholders and also see the launch on iOS and Windows devices too.

Soon, PayZapp would also introduce loyalty points, geo-targeted offers, QR code based
payments and contactless payment mobile instruments.

Although still in beta, the app is pretty straightforward to use. You need to register using
the mobilephone number already registered with the bank, fill in your details, and create a
Personal Identification Number (PIN). Your mobile number works as your Login ID.

Parag Rao, Business Head, Cards, Payment Products and Merchant Acquiring Services at
HDFC Bank, said that the genesis of PayZapp stems from the 'banks are obsolete'
comments.

Every day an innovative startup is disrupting the space with convenient payment
instruments and bringing financial inclusion, and HDFC Bank does not want to be
considered as a 'dinosaur' despite several digital initiatives and industry firsts.

Unlike a mobile wallet, there's no hassle of pre-payment or recharging. Also, there are no
additional charges levied by the bank for purchases, fund transfers or bill payments using
the app.

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 HDFC Bank launches Chillr #GoDigital

 Partners with MobME for instant money transfer app

 App to enable customers to send money to any person on phone contact list

(L-R) Mr Nitin Chugh, Head, Digital

Banking, HDFC Bank Mr. Dhiraj Relli, Branch Banking Head, HDFC Bank and Mr. Sony
Joy, CEO Chillr, unveil the product at the launch

HDFC Bank launched Chillr, a mobile app that allows users to instantly transfer money to
any contact in their phonebook 24 hours a day, seven days a week. HDFC Bank has
partnered with MobME, a Kochi-based technology firm, to launch this app.

Chillr allows users to send money in 3 simple steps:

1. Choose the recipient from your list of Chillr contacts

2. Enter the amount to be transferred & a message to recipient
3. Enter your secret M-PIN & press PAY

The recipient will instantly receive money in his / her bank account.

Chillr is a first-of-its kind application that is linked directly to the customer’s bank account,
so there is no need to worry about filling up a prepaid wallet. No passwords are stored on
the phone and it can be accessed only with an M-PIN known to the customer alone.

58
With this app, customers no longer have to ask for account information and wait for a set
amount of time in order to add beneficiaries if they wish to transfer money. They can send
and request money directly on their mobile.

With Chillr, HDFC Bank customers can transfer money to any person in India, once they
download the app and register. The app is widely accessible as it works on Android and
iOS operating systems. It will soon be launched for the Windows phone as well.

The app is particularly useful for college students and young professionals. While dining
at restaurants, customers, particularly youngsters can split the bill using this app. Parents,
whose children are studying away from home in other cities can transfer money via the
app. In the near future it will also allow users to pay utility bills and various merchants via
the mobile.

Chillr is also an important tool for financial inclusion in rural markets, allowing migrant
workers to remit money to family back home in a secure manner. HDFC Bank has also
piloted the use of Chillr for its Sustainable Livelihood Initiative (SLI), a programme that
reaches out to people at the bottom of the pyramid by providing them with livelihood
finance and skills training. The participants running small businesses used the app to make
payments to employees, avoiding the hassle of travelling to the nearest ATM to withdraw
cash.

“Customer convenience is central to our concept of Digital. This Chillr app will benefit
various segments of people in the society. From students to young professionals, from
the migrant workers in cities to customers in rural India, this app gives the convenience
to send and receive money using your mobile phone in secured manner. This app is one
more important step by the Bank to leverage technology and digital to offer banking
services anytime and anywhere”

– Nitin Chugh, Head, Digital Banking, HDFC Bank

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 Chillr is the latest initiative in HDFC Bank’s digital banking offering christened GoDigital.
This campaign began on the banks of the Varanasi last year, with the launch of its ‘Bank
Aap Ki Muththi Mein’ offering, which literally converts the mobile phone into a bank
branch. Since then, the bank has launched a host of innovative digital initiatives. With
Chillr, HDFC Bank is adding to its digital product suite.

HDFC Bank to introduce Digital Wallet #GoDigital

 Available for HDFC Bank customers and all other debit and credit card holders
 Accessible from mobile app and online, as well as enabled with NFC for contactless
payments

HDFC Bank is all set to launch a digital wallet and an electronic marketplace for various
online merchants. Once an account holder or credit card holder registers for a digital wallet,
he can transact on most websites using only his wallet credentials. The wallet will not be
restricted to HDFC Bank customers, but also allow non-HDFC Bank debit and credit card
holders.

HDFC Bank is the market leader both as a card issuer and in processing card payments for
merchants, and accounts 40% of e-commerce transactions. With the shift from desktops to
mobile phone, mobile devices account for half of the purchases in terms of number of
transactions.

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However, the complexity of entering card details onto a phone screen also leads to high
level of failed transactions. A digital wallet meets Reserve Bank of India’s requirement of
two-factor authentication but does away with the hassle of filling card details every time.
Also, the digital wallet – which can be accessed from a mobile app or online – will be
enabled for contactless payment using Near Field Communication (NFC) by flashing the
phone in front of readers that can accept NFC payments. Also, the customers will not need
to store their card details on third-party websites, and as a bank, the details are in any case
entrusted with the bank.

In a standard credit card purchase, the number of steps can go up to 11-12 including filling
in the 16-digit card number, name, expiry date, CVV and other details. Our digital wallet
will enable the transaction to be completed in two steps, which substantially cuts down the
failure rate on mobile phone purchases, which is as high as 50%.
– Parag Rao, Senior EVP and Head (Card Payment Products), HDFC Bank

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According to industry estimates, by 2020, 30% of all digital payments will be done using
a digital wallet. HDFC Bank’s new offering, in line with the Go Digital initiative, attempts
to offer the “The future of mobile payments”

HDFC Bank Watch Banking

A Step forward in our journey – Go Digital: Bank Aapki Mutthi Mein

In December 2014, HDFC Bank launched its ‘Go Digital – Bank aapki mutthi mein’
campaign on the banks of the Varanasi River with an aim to provide holistic banking
services in all possible digital channels. Today, HDFC Bank provides 175+ banking
transactions through its Net banking platform and 80+ transactions through Mobile
banking (Mobile and Tablet apps).

HDFC Bank thought that it was the opportune moment to introduce a new category in
digital banking, leveraging the emerging wearable platforms, and becoming the first bank
in India to launch Watch banking for Apple Watch.

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Why Apple Watch?

HDFC Bank is starting with the Apple Watch and aims to provide banking services through
all wearable devices across platforms like iOS and Android.

We have started with Apple Watch since it is designed from ground up keeping in mind
what the user would want to do with such a device in a jiffy. HDFC Bank’s App has been
made keeping this in mind and the features are chosen accordingly.

Features of HDFC Bank Watch Banking

HDFC Bank will provide a total of 10 banking transactions in the current launch phase.
Some of them being View Account Information, Bill Payments, Recharges, Hot listing
facilities, locate nearest branch/ATM/offer, request statement/ chequebook etc. Moreover,
HDFC Bank’s Watch Banking does not require our customers to download a separate App.
Customers can activate Watch Banking from an upgraded version of HDFC Bank’s Mobile
Banking App itself!

Security features and how will it work?

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 HDFC Bank brings in the same level of high security of its Mobile Banking App to its
Watch Banking experience.

 Any user information or data flow that happens, it if from the mobile phone to the bank’s
secure servers. The watch is merely a projection device.
 For added security, there is a watch banking PIN that the user himself sets during the
one-time set-up process. This can be done only after entering his customer id and
password known only to the user.
 Additionally, the Apple watch itself has a passcode lock just like other iOS devices.

HDFC Bank launches ‘Bank Aapki Muththi Mein’ – a bouquet of transactions on mobile
#GoDigital

 Technology agnostic, runs on all popular mobile platforms

 Largest offering of its kind in the country with over 75 banking transactions
 55% of all transactions at HDFC Bank are conducted through digital channels
 Allows customers to book FDs, RDs, pay bills, taxes, buy insurance, mutual funds,
even loans

HDFC Bank today

launched Bank Aap Ki Muththi Mein, an offering that literally turns a mobile phone into a
bank branch. A bank branch the size of your palm that is with you round-the-clock,
wherever you are.

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With over 75 transactions – all a touch away – it offers the customer the widest range of
transactions conceivable. These are both financial and non-financial transactions that he
needs in his daily life for which he would have to visit a branch, or an ATM. It is by far
the largest offering of its kind by any bank in India.

Besides essential transactions such as booking fixed- and recurring deposits, bill and tax
payments, buying insurance and mutual funds, the offering will also allow customers – for
the first time in the country – to buy instantly all kind of loans. It also offers them fully
customized, location-specific promotions, offers/deals on shopping, dining, movies and
entertainment.

With Bank Aap Ki Muththi Mein, you can do everything other than access your locker, and
deposit or withdraw cash. Customer convenience is central to our concept of Digital. And,
there is no bigger convenience than bringing your bank to the palm of your hand. We are
very excited to unveil our Bank Aap Ki Muththi Mein offering and with-it world-class
experience of banking to millions of our countrymen.

Mr. Nitin Chugh, Head – Digital Banking, HDFC Bank

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Part of the Bank’s digital banking offering christened GoDigital, Bank Aap Ki Muththi
Mein is technology agnostic and runs on all mobile devices popular technology platforms
support. As of September 2014, India had over 900 million mobile users in the country but
only 40 million mobile banking customers.

Bank Aap Ki Muththi Mein works on both a smart phone as well as the basic phone that
supports internet browsing. For phones that do not support internet browsing, there’s sms
banking and missed-call banking. All that a customer needs to do is send a text to or call a
toll free number to know his account balance, get a mini statement, request a check book
or detailed account statement.

Today, 55% of all transactions at HDFC Bank are conducted through digital channels.

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DEPARTMENTS AT HDFC BANK

Marketing Department

67
Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been
pushing result-oriented local and digital marketing since he joined India's second-largest
private bank last year.
HDFC Bank uses technology-led marketing to keep costs low. He launched some 4,000
campaigns and 400 analytical solutions (a 40% y-o-y increase) in the past year to bring in
more customers to the bank and aggressively stepped up its digital presence to increase
business from this channel by over 60%.

Jain, a keen trekker who has run three half marathons (and wishes he had time for more),
is pushing his colleagues to shift away from a centralised marketing function, and think
local by setting up local marketing teams to cater to specific needs of a community or
locality. "I want our marketers to focus on the catchment areas around branches and run
campaigns to suit residents or businesses there," he says.

His result-oriented approach is something his rivals and industry watchers admire. "He's
an objective-driven marketer who has been able to effectively leverage technology and
digital programmes," says Sanjay Jain, chief marketing officer of Reliance Capital.
HDFC's Jain stands out for his focus on return on investment and not spread across many
hard-to-measure campaigns, he says.

Ajay Kelkar, COO of customer relationship solutions firm Hansa Cequity, says Kartik Jain
uses technology and digital media more effectively than most of his peers. "This gives the
bank an opportunity to get one view of the customer and, in a muted economy, opens up
better opportunities to cross sell products," he says.

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As marketers become more concerned with cost, the idea of highly visible above-the-line
advertising rarely appeals to Jain. "We haven't done a big-ticket campaign in 2-3 years,"
he says. Instead, the ads will be targeted, like its Infineon credit card ads pegged at big
spenders.

While he wouldn't disclose his marketing budget, Jain says HDFC Bank spends less than
one-fifth of it on above-the-line activities, with the rest reserved for below-the-line
campaigns. "Marketing is about customer engagement that leads to measurable business
results," he says.
While it's a challenge to get close enough to customers to garner key insights for new
campaigns, marketers like Jain are increasingly under pressure to reduce spends in a
slowing economy.

Jain is leaning heavily on digital campaigns to proselytise HDFC Bank. Under him, the
bank's website has become the most visited private bank website and the most responsive
bank on Facebook, according to a survey by Social Bakers in May 2012.
"With increasing penetration of internet and mobile, digital marketing has become an
inexorable element of marketing...this is especially true in the case of financial services,
where products and services cannot be distributed efficiently without the use of
technology," Jain says. Parag Rao, who heads HDFC Bank's credit card business, says
while Jain's overview across the bank's businesses has allowed him to synergise marketing
campaigns, his data analytics team is a welcome bonus.

Finance Department

Finance department is broadly concerned with the acquisition of funds by a business firm.
 How large should be the firm and how fast should it grow?
 What should be the mix of firm’s assets?

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  What should be the mix of the firm’s financing?
 How should the firm analysis, plan, and control its financial affairs.
Finance is the lifeblood of the organization. Finance management as an integral
part of the overall management is not a totally independent area. It draws heavily on related
subjects and fields of study namely economics, accounting, marketing, production, and
quantitative methods. Following are the main features of financial management.
 The focus of financial management was mainly on certain episodic event like
formation, issuance of capital, major expansion, merger, re-organization, and
liquidation in the life cycle of the firm.
 Approach was mainly descriptive and institutional. The instrument of financing,
the institution and procedures used in capital market, and the legal aspect of
financial events formed the core of financial management.
 The outsider’s point of viewed mainly from the point of investment bankers,
leaders and other outside interests.

According to HDFC BANK Ltd.’s AGM on JUNE 1, 2009: -

 Issued 50 crore Redeemable Subordinated Bonds to increase Capital Adequacy
Ratio, which had come down to 11.09% from 12.19%.
 HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on
date of AGM total outlets increased to 134. Bank has plans to increase this number
to 160 by year-end. Ten new outlets are planned for Maharashtra.
 Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in
March 2001. These advances were made to corporates with "AAA" rating for short
tenure and Bank has recovered these amounts in the current year.
 Money at call and short notice with banks went up from Rs 487 crore in March to
Rs 1,357 crore in March 2001. Bank found this opportunity giving good returns and
funds were parked with overseas accounts.
 All HDFC Bank branches and head office undergo Concurrent Audit.
 HDFC Bank is the largest issuer of debit cards in the country.

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  HDFC’s reported a 80% increase in top line in FY 2001 and 75% increase in bottom
line. The reason for less than proportionate growth in Net Profit is due to
investments made for future growth. Bank sees these years as consolidation period.
 HDFC Bank serves 5 lakh accounts in Demat Services segment. Total number of
employees for Depository services is 142 and this segment contributed Rs 7 crore
to Net Profit.
 Out of the stipulated norm of 40% advances to priority sector by RBI, HDFC Bank
has made 15% advances to Agriculture sector. These include loans to farmers and
investments in NABARD and Rural Electrification.

Human Resource Department

“Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations.

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Work force of an Organization is one of the most important inputs of components. It is said
that people are our single most important assets. Because of the unique importance of
HUMAN RESOURCE and its complexity due to ever changing psychology, behaviour and
attitudes of men and women at work, in all business concerns, there is one common
element. I.e. Human personnel function, i.e., manpower management function is becoming
increasingly specialized. The personnel function or system can be broadly defined as the
management of people at work- management of managers and management of workers.
Personnel function is particularly interested in personnel relationship and interaction of
employees-human relations.

Mandeep Maitra is the Country Head HR at HDFC Bank.

She has done her B.A. Psychology from lady Shriram Colege, Delhi and MBA HR from
Tata Institute of Social Sutdies. The HR department at HDFC bank has 54 people,
including the trainers. The HR department is present in Mumbai, Chennai, Delhi,
Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow. All people
here in HR are MBAs, except for those handling HR operations

Responsibilities of Human Resource Department.

 HRD maintain daily attendance record through branch manager via E-mail.
 Take decisions for approval regarding leave notes.
 He takes the decision related to the recruitment, selection and training of the candidates.
He talks to the consultant related to the recruitment of the qualified candidates. He also
does screening of the candidates, shortlist the candidate and takes the first round of the
interview.

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 He maintains the database of the candidates to come for an interview. He also maintains
personal file of each employee. He also completes the joining formalities of each new
employee.
 They are taking surprising visit in every branch and collect information about
employees.
 He is responsible for the monthly salary of the employees as per their attendants and
passing to the Branch Manager.

Human Resource planning

"Human resource planning is the process of forecasting a firm's future demand

for and supply of the right type of people in the fight number".
The planning process:
HRP essentially involve forecasting personnel needs, assessing personnel supply and
matching demand supply actors through personnel related programmes. The planning
process is influenced by overall organizational objectives and the environment of business.
Importance of HRP
1. Future Personnel Need
2. Coping with Change
3. Creating Highly Talented Personnel
4. protection of Weaker Section
5. To adopt International Strategies
6. Foundation for Personnel Functions
7. Increasing Investment in Human Resource
8. Resistance to Change and Move
Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available whenever
they are needed. Every organization needs employee time by time because of promotion or

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retirement of an employee. For this purpose an organization need to search for the right
candidate. And so it needs to encourage this type of right candidates whenever they require.

Sources of Recruitment

 Personal data of candidates and data bank maintain by the HR.

department

 Campus Recruitment.
 Company’s own website.
 Placement consultants.
 Advertisement in the news papers like Times of India, Gujarat
Samachar.

 Employee reference.

Recruitment Process

Applicant Profile Shortlist Screening Interview

pool Check

E-Recruiting
Perhaps no method has ever had as revolutionary an effect on recruitment practices as
the internet. There are respective company websites devoted in some manner to job posing
activities. Currently, employers can electronically screen candidate's soft attributes, direct
potential hires to a special website for online skill assessment. Conduct background checks
over the internet, interview candidates via videoconferencing. And manage the entire
process with web-based software. Companies benefit immensely through cost savings.

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Speed enhancement and worldwide candidate reach which the internet offers. From the job
seekers perspective the internet allows for searches over a broader array of geographic and
company posting than was possible before. Problems notwithstanding, both job givers as
well as job seekers find internet as the most effective source of recruiting and its usage in
the days to come will be all pervasive

Selection

 Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define as
the process of differentiating between applicants in order to identify and hire those with
a greater likelihood of success in a job.
 Selection is based on probation base, they are taking experienced person for 6 month’s
probation and for fresher the probation period is 1 year.
 While the selection of the senior level post, is taken by head office at Mumbai.

Selection Process :
Telephonic - interview
Selection Test
Final Interview
Reference & Background
Analysis
Selection Decision
Employment Agreement
Offer Letter
Medical Clarification

RECRUITMENT & SELECTION

HDFC bank's campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI,
SCMHRD, etc and not only IIM'S. They go to 70 business schools, covering far away
places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institute understand

75
the psychology of the up country customers and are ambitious about working for private
sector banks. They hire B.Com, M.Com, engineers and other graduates, as well as MBA's.
Today the requirement is not just globalization, but localization. To achieve this they hire
people from various towns and cities. They are even hiring managers from rural
background. Thehas a need to locate people in 500 + branches across 300 cities. I come to
know in my observation that bank often don't recruit from IIMs. When I asked about this ,
then the senior manager says that the bank is able to attract IIM graduates after they have
worked for 3 to 5 years of work experience and they have experienced the real world and
are likely to be less
disillusioned. They take screening very seriously, though they don't use detectives. They
do speak to current employers and ask question about performance and integrity. After the
completion of recruitment process, HDFC bank starts it selection process according to its
schedule to the selection of deserved candidates.

Training and Development

 Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic world
of business training is more important there is an ever present need for training men.
So that new and changed techniques may be adopted. A new and changed technique
may be taken as an advantages and improvement affected in the old methods.
 Training is learning experience that seeks relatively permanent change in an individual
that will improve his/her ability to perform on the job.
 They provide “on the job” training to their employees in the branch as they select these
employees for selling various products of bank by direct marketing. Whenever they
select new candidates for any post, they use to give them on the job work.
 In case of sales persons to distribute their various products, in the beginning the person
has to work under the observation of his senior then the have to go in market to have
their own experience.

76
 The time for training program for the candidate is depends up on the relevant position
of his work area. They also provide training related to customer care and
communication.

Performance Appraisal

 An organization’s goals can be achieve only when people put in their best efforts.
Performance appraisal may be understood as the assessment of an individual’s
performance in a systematic way. It is define as the systematic evaluation of the
individual with respect to his/her performance on the job and his/her potential for
development.
 To appraise the performance of the employee they have developed a credit system on
the basis of the given target to the employee. After appraising the performance of the
employee they put the grade of each employee in the following grade criteria.

Employee Remuneration and Incentive Payments

 Remuneration is the compensation an employee receives in return for his/her

contribution to the organization. Remuneration occupies an important place in the life
of an employee.
 At HDFC, remuneration of an employee comprises – wages and salary, incentives.

Wages and Salary

 A part from various incentives and benefits, the personnel are compensated only in
terms of wages and salaries. A proper compensation in terms of this is necessary for
motivation employees for their continuous
 Improved performance. For all this, it is required that wages and salaries are provided
well by organization.

77
 Wages and salary refers to the establishment and implementation of sound policies and
practices of employee’s compensation. A wage and salary is the remuneration paid for
the service of labor in production periodically to an employee. The bank is in service
industry so the salary is given on monthly basis. They use to hire certain salesman on
commission base and they are provided their salaries on commission base. While other
permanent staff are being given monthly salaries. As HDFC bank is reputed bank in
market the pay scale are as per the standard.
 Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales
officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving
attractive incentives as per the target. The salary of branch manager is around 35000
per month.
Incentive
In HDFC, employees get incentives on the basis of the target given to each employee
and their area of work. They have developed the incentive structure for the employees
on the basis of point system. All the employees get the incentive in the form cash
reward.

BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE

HDFC BANK
 Helps the individual in marketing better decisions and effective problem solving
 Through training and development, motivational variables of recognition,
achievement, growth, responsibility and advancement are internalized.
 Aids in encouraging and achieving self-development and self-confidence
 Helps a person handle stress, tension, frustration and conflict
 Provides information for improving leadership, knowledge, communication skills and
attitudes
 Increase job satisfaction and recognition
 Moves a person towards personal goals while improving interactive skills
 Satisfies personal needs of the trainer
 Provides the trainee an avenue for growth and a say in his own futur
 Develops a sense of growth in learning
 Helps a person develop speaking and listening skills

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  Helps eliminate fear in attempting new tasks
Employees benefit

The employees of HDFC automatically become HDFC bank salary account Holders with
special benefit and privileges and receive instant salary credit. The benefit include
international debit card, corporate card with individual liability (CCIL), access to phone
banking and internet banking, demat accounts, and host of other services to complement
their savings account. Here are some of the features of HDFC Bank’s salary account.

BEST PRACTICES
The most important thing in HR is to hold the confidence of people. Talent retention is a
challenge today. Another challenge is managing expectations of youngsters, who are
looking for fast tracking their career and want exposure quickly, they may not be lured by
money alone, but the profile that they work for. Bank gives ample opportunity to those who
seek job rotation, If they have a new opening, they advertise it internally. Banks philosophy
is that it is better to lose a person to another department than to another bank. Their
Performance management system is their 'signature' system. They have one of the lowest
rates of attrition.
Middle management onwards their salaries here are good. Women have been rising up the
ranks in the bank. At the junior level, over 33% of the workforce in consumer and retail
banking comprises of women. In the senior levels, it is about 12% and in the top
management, it is about 6 to 9%. This organization was very cost conscious. Today they
have foreign tours, parties as national and regional levels, award nights and outings. As an
organization they have started celebrating success.

Swot Analysis of HDFC Bank

Strengths

 HDFC bank is the second largest private banking sector in India having 2,201 branches
and 7,110 ATM’s.

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 HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve
customers through Telephone banking.
 The bank’s ATM card is compatible with all domestic and international Visa/Master card,
Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for HDFC
cards to be the most preferred card for shopping and online transactions.
 HDFC bank has the high degree of customer satisfaction when compared to other private
banks.
 The attrition rate in HDFC is low and it is one of the best places to work in private banking
sector.
 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.
 HDFC has good financial advisors in terms of guiding customers towards right
investments .

Weaknesses

 HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct
competitor is expanding in rural market.
 HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core loyals
in terms of banking services.
 HDFC lacks in aggressive marketing strategies like ICICI.
 The bank focuses mostly on high end clients.
 Some of the bank’s product categories lack in performance and doesn’t have reach in the
market.
 The share prices of HDFC are often fluctuating causing uncertainty for the investors.

Opportunities

 HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase.
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 The companies in large and SME are growing at very fast pace. HDFC has good reputation
in terms of maintaining corporate salary accounts.
 HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high
when compared to government banks.
 HDFC has very good opportunities in abroad.
 Greater scope for acquisitions and strategic alliances due to strong financial position.

Threats

 HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a slight
variation it’s not a good sign for the financial health of the bank.
 The non banking financial companies and new age banks are increasing in India.
 The HDFC is not able to expand its market share as ICICI imposes major threat.
 The government banks are trying to modernize to compete with private banks.
 RBI has opened up to 74% for foreign banks to invest in Indian market.

OBJECTIVE OF THE STUDY

 To identify the awareness and usage of Digital-Banking.

 To study the impact of digitalization.
 To know how much banking services has been improved.
 To study the satisfaction level of the respondents.

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 LITERATURE REVIEW

Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and
27 public sector banks where majority ownership is included by the government. During
the reform period, the financial system permitted the banks to select their lending rates and
deposits, and also authorizes higher disclosure to make sure of large transparency in the

82
balance sheets. As a result of reforms in the banking sector the share of entire assets of
public sector banks was decreased to 75 percent from 90 percent. In the private sector, the
new banks entry diminished the concentration of assets which further might have made the
competition stronger which leads to more profitability, productivity, and enhancing
efficiency.

Dr. Richard Nyangosi (2014) in his study on Topic ‘Digitizing Banking Services’
finds that-
Internet and mobile technologies of recent years have gained momentum and are
impacting the working of every process including financial services. Financial Service
providers including banks are turning their necks toward the wave of these Technologies.
Their findings includes- Adoption of cell phone banking. Out of the respondents surveyed,
26 percent had adopted cell phone banking in India out of those who adopted, mostly were
young aged. This service too like any other e-banking services is gaining momentum as
customers are finding it easy to bank 24x7. Using different common E-banking services
provided through a cell phone, which included: balance inquiry, requesting cheque book,
know last few transactions, requesting bank statement, stop payment of cheque, and bill
payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample
adopted Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have proved
to be useful to both customers and providers in recent times. Customers find it easy,
convenient, and efficient to transact conventional banking services which are non-
monetary in nature such as balance enquiry, transfer of funds, change password etc through
a mobile phone.

Malhotra, Pooja & Singh, (2010) This study is an attempt to present the present status
of Internet banking in India and the extent of Internet banking services offered by Internet
banks. In addition, it seeks to examine the factors affecting the extent of Internet banking
services. The data for this study are based on a survey of bank websites explored during
July 2008. The sample consists of 82 banks operating in India at 31 March 2007. Multiple
regression technique is employed to explore the determinants of the extent of Internet

83
banking services. The results show that the private and foreign Internet banks have
performed well in offering a wider range and more advanced services of Internet banking
in comparison with public sector banks. Among the determinants affecting the extent of
Internet banking services, size of the bank, experience of the bank in offering Internet
banking, financing pattern and ownership of the bank are found to be significant. The
primary limitation of the study is the scope and size of its sample as well as other variables
(e.g. market, environmental, regulatory etc.), which may have an effect on the decision of
the banks to offer a wide range of Internet banking services. The purpose of the study is to
help fill significant gaps in knowledge about the Internet banking landscape in India. The
findings are expected to be of great use to the government, regulators, commercial banks,
and other financial institutions, e.g. co-operative banks planning to offer Internet banking,
bank customers and researchers. The bankers as well as society at large will come to know
where the banks lag in terms of adoption of Internet banking and in providing different
products and services. An understanding of the factors affecting the extent of Internet
banking services is essential both for economists studying the determinants of growth and
for the creators and producers of such technologies. Moreover, this paper contributes to the
empirical literature on diffusion of financial innovations, particularly Internet banking, in
a developing country, i.e.
India.
Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding e-
banking services. A survey of 1,200 respondents was conducted in October 2008 in
Ludhiana district, Punjab. The respondents were equally divided among three bank groups
namely, public sector, private sector and foreign banks. The present study investigates the
perceptions of the bank customers regarding necessity of e-banking services, quality of e-
banking services, bank frauds, future of e-banking, preference of bank customers regarding
banks, comparative study of banking services in various bank groups, preferences
regarding use of e-channels and problems faced by e-bank customers. The major finding
of this study is that customers of all bank groups are interested in e-banking services, but
at the same time are facing problems like, inadequate knowledge, poor network, lack of
infrastructure, unsuitable location, misuse of ATM cards and difficulty to open an account.
Keeping in mind these problems faced by bank customers, this paper frames some

84
strategies like customer education, seminars/meetings, proper network and infrastructure
facilities, online shopping facilities, proper working and installation of ATM machines,
etc., to enhance e-banking services. Majority of professionals and business class customers
as well as highly educated and less educated customers also feel that e-banking has
improved the quality of customer services in banks.
Azouzi, D. (2009) this paper aims to check if the current and prompt technological
revolution altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to understand the
customers' behavior regarding the adoption of electronic banking. To achieve this purpose,
an empirical research is carried out in Tunisia and it reveals that panoply of factors is
affecting the Customer’s attitude toward e-banking. For instance; age, gender and
educational qualifications seem to be important and they split up the group into electronic
banking adopters and traditional banking defenders and so, they have significant influence
on the customers' adoption of e-banking. Furthermore, this study shows that despite the
presidential incentives and in spite of being fully aware of the e-banking's benefits,
numerous respondents are still using the conventional banking. It is worthy to
mention that the fear of loss because of transactions errors or hackers plays a Significant
role in alienating Tunisian customers from online banking.

RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose
of making business decisions. The methodology may include publication research,
interviews, surveys and other research techniques.

Research Design
A research design serves as a bridge between what has been established (the research
objectives) and how to accomplish these objectives. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for the

85
collection, measurement and analysis of data. More explicitly, the design decisions happen
to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money. But how all these can be achieved depends
mainly on the research purpose.

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables.

Sampling Design:

For my survey I have used Convenience sampling technique.

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Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer ask
questions in a face to face contact to the other person.

SECONDARY DATA is the data which are available in the form of fact and figures. The
sources of secondary data are:

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

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 DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

3% 2%

15% Savings Account

Current Account
80% Salary Account
Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving
account, 15% have current account, 3% have salary account and 2% respondents have other
account which include NRI and fixed deposit account in the bank. It means that the bank
has a very good amount of saving account customers as compare to the other account.

88
Q2. Since how long you are having account in HDFC Bank?

15% 0-1 Year

33%
27% 1-2 Years

25% 2-3 Years

3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and
more.

Q3. According to you what is more convenient way for banking?

10%

Branch Banking
Digital Banking
90%

Interpretation:

When the customers are asked about their preference between branch banking and digital
banking 90% customers preferred digital banking and 10% customers preferred branch
banking as a mode of their banking transaction. Above graph reveals their preferences for
the both.

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Q4. Do you use Digital Banking Services of HDFC Bank?

0%

Yes
No
100%

Interpretation:

Out of the 100 respondents all the 100% of them use digital banking services of HDFC
bank.

Q5. What are your reasons for choosing our Digital banking services?

100%
90%
80%
70%
60%
50% 60 80 68
40%
30%
20%
10%
0% 0

Interpretation:

Out of the 100 respondents 60% use digital banking services for convenience, 80% use to
save time and 68% use due to 24 hour access.

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Q6. Which Digital banking services do you use at HDFC Bank?

100%
80%
60% 75 60 24 4 100
40%
20%
0%

Interpretation:

Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile
banking, 24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and
all the 100% of respondents use ATM service.
Q7. For what purpose you use Digital banking services at HDFC Bank?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use
to pay bill, 78% use to get balance details, 36% use for recharge.

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

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 45%
Yes
55% No

Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank
Go digital initiative while 55% of them are not aware.

Q9. Which Digital Initiative of HDFC you know about?

100%

80%

60%
88.88 78.33 28.88 44.44
40%

20%

0%
PayZaap Chillr Digital Watch
Wallet Banking

Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers do
not know about Go digital initiative because they are not much aware about this facility.
45% of them are aware about some initiative and out of those 45% customers 88.88% know

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about PayZaap, 78.33% know about Chillr, 28.88% know about Digital wallet, and 44.44%
know about Watch banking.

Q10. Do you use HDFC Bank Go Digital banking services?

40%
Yes
60%
No

Interpretation:
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and
60% do not use it.

Q11. Do you think HDFC Bank banking services has improved through
Digitalization?

2%

Yes
No
98%

Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of
HDFC bank and 2% of the respondents do not think that digitalization has improved the
banking services.

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Q12. Please rate that how much Digitalization has improved the Banking Services?

0%
0%
5 Stars
18% 14%
4 StARS
3 Stars
68%
2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the banking
services, 68% rate it 4 stars, and 18% rate 3 stars.

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

0%
2%

33% Fully Satisfied

Satisfied
65% Somewhat satisfied
Not satisfied

Interpretation:
Satisfaction level is very important for the direct banking channel of bank. In above graph
we can see that 65% Customers are satisfied with HDFC bank digital services, 33%
customers are fully satisfied and only 2% are somewhat satisfied. It indicates that HDFC
bank customers have high satisfaction level from the services they get.

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 FINDINGS

In our study we find that 100% respondents are aware with the ATM facility use this facility
and around 75% of them use internet banking, 60% use mobile banking, 24% use phone
banking. But the awareness of Insta query is only 4%.

Most of customers believe that Digital banking is more convenient way for banking and
most of them use digital banking in order to save time and also as it has 24 hour access.

Customers use digital banking services at HDFC bank mostly for money transfer, to pay
bill, for recharge, online shopping. HDFC bank provides very quick services to its
customers.

Most of respondents who are not using the Go Digital initiatives of the bank, it is because
they are not much aware about the initiatives of the bank.

The customer are using the digital banking services for few purpose it means the use of the
digital banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the service
of the bank for the particular digital banking service.

The response of the respondents indicates that digitalization has a good and positive impact
on the banking services.

According to the response of the respondents it shows that digitalization improved the
banking services very much for the customers.

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 CONCLUSION
The project speaks about the study of all departments which are present in the specific
branch of the bank. Learn the processes that take place in each departments.
During the first half of the internship, the project undergoes the study of all the departments
individually by working under every department dealing with real time customers.
The final aim of the project is to study how the adoption of digitalization has affected the
financial status of the bank. It is also crucial to know the profits and the losses the bank
undergoes while adopting this methods.
During this first half of the project, while studying about the departments, it was also
studied how digitalization was adopted in each department and how it has benefited both,
the customers and the bank officials.
A survey was made to study how digitalization has helped branch. Customers not using the
digital banking were also convinced to start using the same.
HDFC bank was the first bank in the banking sector to adopt digitalization and has won an
award for the same.
Through digital banking, banking is now available to the customers on the tip of their
fingers, by providing the facility of banking over mobile phones. Even with a basic phone
without internet access, a customer can bank using SMS and Missed Call Banking.
Through mobility, the bank is delivering a greater flexibility to the customers.
Hence, now the mobile platform today accounts for the largest share that is 40% of total
value transacted over mobile phones in the country. The bank’s website acts as a 24x7
virtual branch. Powered with Search, Select and Buy features, the site receives 13 million
unique visitors a month, making it one of the most visited financial

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 SUGGESTION

 Though the Digital Banking is an effective tool but many of the customers are not using
it due to the awareness of the particular digital banking services. Now the responsibility
lies with the bank to make them aware about various Digital banking channels through
publicity and advertisement

 Bank should educate the customer about the usage of digital banking services and also
about their advantages. This would prompt the customers to shift from traditional brick
and mortar channel.

 It has been observed that even the customers who know about digital banking services
are not using this facility due to misconception and lack of information. These
customers should be targeted by the bank and must be convinced to use the same.

 The result of the study show that customers are using only few services of various
digital banking services - for example ATM for view balance and cash withdrawal etc.
Though digital banking provides a full gamut of various services. Customer should be
made aware of these services and must be encouraged to use the same.

 The bank may improve existing facilities in rural areas through advertising, spread
awareness about computer and internet banking.

 The best way to motivate the customer to use digital banking is more efficient customer
care service.

LIMITATIONS
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There are certain limitations of this project report which are listed below.

 This study is limited only to the customers of the HDFC bank, Lucknow.
 The responses of the customers may be biased.
 Sample size is limited to 100.

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 BIBLOGRAPHY

 http://www.hdfcbank.com/htdocs/aboutus/News_Room/pdf/press_release_fina
 ncial_results_ mar17.pdf
 http://www.sharekhan.com/Upload/NewsLetter/Specialreport.pdf
 http://www.hdfcbank.com/aboutus/cg/annual_reports.htm
 http://www.marketing91.com/swot-analysis-hdfc/
 https://www.hdfcbank.com/aboutus/News_Room/hdfc_profile.htm
BOOKS:
 Kotler Philip, marketing management, (Pearson education, 12th edition)
 Malhotra K. Naresh, marketing research (An applied orientation), Research
design.
 HDFC BANK annual report 2017-18.
 Banking practices & strategies – author Anand Sharma.

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 APPENDIX

Questionnaire

NAME……………………………………

GENDER………………………………..

AGE……………………………………

OCCUPATION……………………......

EMAIL ID………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current

account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

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Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

Yes No

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Q9. Which Digital Initiative of HDFC you know about?

Pay Zapp Chillr

Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

Yes No

Q11. Do you think HDFC Bank banking services has improved through
Digitalization?

Yes No

Q12. Please rate that how much Digitalization has improved the Banking Services?

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

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Q14. Any suggestions or recommendation to HDFC Bank?

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