FINAL REPORT ON MANAGEMENT THESIS “To understand customers’perception of services for current account provided by SBOP and HDFC”

By:Manju Bala 7NBBT001

FINAL REPORT ON MANAGEMENT THESIS SEM-3
“To understand customers’ perception of services for current account provided by HDFC bank and SBOP”

ICFAI NATIONAL COLLEGE
BATHINDA

Submitted To: By:-

Submitted

Ms Poornima Garg No:-7NBBT001

Manju Bala Roll

TABLE OF CONTENT
          Acknowledgements Bank Current Account About HDFC Current Account of HDFC Customer Pattern About SBOP Current Account of SBOP Summary Objectives

     

Limitation Methodology Findings Recommendation Appendices References

ACKNOWLEDGMENT
I am very thankful to ICFAI NATIONAL COLLEGE for giving me opportunity to undertake this final report. I like to thanks our center head Mrs Pooja Sharma and including others faculities Mrs Poorinima garg , Mrs Anchal garg who provided me proper guidence to do this project.And at the last but not the list I would like to thank all respondence of Bathinda who gave their precious time to provide all the usefull information .

drafts and notes.usually a corporation. which does most or all of the following: recieves demand deposits and time deposits .(Manju Bala) INTRODUCTION ABOUT BANKING SECTOR An organisation. collect checks. discounts notes . and invests in securities.makes loans.honors instruments drawn on them .chartered by state or federal government .certifies .

and lend money to customers on current account (called overdraft). accept term deposits and make term loans and provide other financial services. have influenced The word bank is derived from the Italian banca. Banks may also issue bank notes. Banks have a long history. The terms “bankrupt” and "broke" are similarly derived from banca rotta. a so called non-banking financial company. which refers to an out-of-business bank. which is derived from a Germanic language and means “bench”. having its bench physically broken. Money lenders in Northern Italy originally did business in open areas. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank. and economies and politics for centuries.depositor’s checks and issues drafts and cashier’s checks WHAT IS BANK? A bank is a business that borrows from its customers on current accounts repayable to its customer's cheques and collects cheques for its customers' accounts. Banks that issue notes are called Banks of Issue. or big . Currently in most jurisdictions the business of banking is regulated and banks require a license.

open rooms. This was followed by Bank of Hindustan. a bank generates profits from transaction fees on financial services and from the interest it charges for lending. By the 1900s. After India's independence in 1947. the Reserve Bank was nationalized and given broader powers. Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. Traditionally. The first fully Indian owned bank was the Allahabad Bank set up in 1865. Calcutta was the most active trading port. with each lender working from his own bench or table. Couple of decades later. in 1906. Indian banking sector was formally regulated by Reserve Bank of India from 1935. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Calcutta" in Calcutta in June 1806. mainly due to the trade of the British Empire. In recent history. much of a bank's income is provided by overdraft fees and riskier investments.both of which were founded under private ownership. with historically low interest rates limiting banks' ability to earn money by lending deposited funds. . Bank of India. and due to which banking activity took roots there and prospered. foreign banks like HSBC and Credit Lyonnais started their Calcutta operations in the 1850s. in Mumbai . in 1895 in Lahore. Both these banks are now defunct. the market expanded with the establishment of banks like Punjab National Bank. At that point of time.

The Reserve Bank of India (RBI).This is the model of banking structure in India that shows the importance and authority of RBI and also existence of Commercial Banks included foreign and Regional Rural. closely monitors developments in the whole financial sector The banking sector is dominated by Scheduled Commercial Banks (SCBs). Public Sector Banks. as the central bank of the country. Private Sector Banks and other Nationalized Banks in India. there . As at end-March 2002. Co-operative Banks included Urban Banks and State Banks.

This included 27 Public Sector Banks (PSBs). It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee recommendations.5%against 17. 30 Private. Scheduled commercial banks touched. State Bank of India is still the largest bank in India with the market share of 20%. The home loans alone account for nearly two-third of the total retail portfolio of the bank. the retail segment is expected to grow at 3040% in the coming years . leading creating the second largest bank in India with a balance sheet size of Rs1040bn. Retail Banking is the new mantra in the banking sector. a growth of 14% as against 18% registered in the previous year. ICICI and its two subsidiaries merged with ICICI Bank. 40 Foreign and 196 Regional Rural Banks. And on advances.were 296 Commercial banks operating in India. there were 68 scheduled co-operative banks consisting of 52 scheduled urban co-operative banks and 16 scheduled state co-operative banks. A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the ability of banks to absorb losses and the ratio has subsequently been raised from 8% to 9%. the growth was 14.3 % of the earlier year. According to one estimate. on the deposit front. Also.

processing and sharing credit information on borrowers of credit institutions. SBI and HDFC are the promoters of the CIBIL. The RBI is now planning to transfer of its stakes in the SBI. (CIBIL) was set up in August 2000. With a view to provide an institutional mechanism for sharing of information on borrowers/ potential borrowers by banks and Financial Institutions. mobile banking. convertible debentures of corporate and units of equity-oriented mutual funds. NHB and National Bank for Agricultural and Rural Development to the private players. the Credit Information Bureau (India) Ltd. Also.Net banking. this pilot project of the ministry would pave way for smoother functioning of the credit market in the country. the Government has sought to lower its holding in PSBs to a minimum of 33 per cent of total capital by allowing them to raise capital from the market. Banks are free to acquire shares. subject to a ceiling of 5% of the total outstanding advances (including Commercial Paper) as on March 31 of the previous year. The finance ministry spelt out structure of the government-sponsored ARC called the Asset Reconstruction Company (India) Limited (ARCIL). ATMs and bill payments are the new buzz words that banks are using to lure customers. The Bureau provides a framework for collecting. phone banking. The .

In addition.Government will hold 49% stake and private players will hold the rest 51% .    . minimum balance Fees etc.5%).the majority being held by ICICI Bank (24. Minimum balance is also specified by each bank. the bank also levy certain charges for maintaining the accounts in the form of ledger Fees. Current Deposit a/c  These accounts are meant purely to meet the transaction needs of the customer and hence not entitled to any interest from bank. This a/c is opened by a business organization for meeting their business transactions.

Syndicate Bank. which offer tax free returns.Categories of Banks The “Reserve Bank of India” governs the operation of banks in India. Public Provident Fund (PPF) accounts. can be opened at State Bank of India branches. In India. Government of India backs these. Bank of Baroda. and Canara Bank. but they are slowly introducing internet banking. If you do not operate an account (make a deposit or withdrawal) in the branch for a long . Many of the branches of these banks are not networked. Sometimes. ATM cards and other facilities. IT requirements are not correctly estimated and this results in problems for customers Our experience is that they offer better service compared to all other types of banks. banks can be classified into 3 categories Public sector banks like State Bank of India. so depositor’s money is safe. Public sector banks are some of the oldest banks in India and have reasonable charges for most services.

They also have timings convenient for working people . many co-op banks have shut down and depositors have lost money. Bharat Co-op Bank. though some banks are now offering internet banking. Most branches are open for a limited time in the morning. who have to reach office in time.a period of more than one year. because of mismanagement by the Directors of these banks. Their employees are unionized and often strike work Co-operative banks: major banks include Abhyudaya Bank. However. these banks usually charge an additional amount to reactivate it. these banks have a large number of branches. In cities like Mumbai. Mutual funds dividends cannot be directly credited to your account in these banks. If an account is inactive for more than 1 year (no cash withdrawal or deposit is made). which is very inconvenient for customers. the account becomes inactive and additional verification is required to make it active. . Maharashtra has the largest number of co-op banks in India. You have to periodically visit the branch to update your passbook. They also offer a higher rate of interest compared to other banks.usually open in the evening and on Sundays.time . especially salaried employees with a 9 to5 job.

HDFC bank. ATM and phone banking. Also keep a track of the cheque books that are issued to your account. they are forced to take a cheque book of 25 leaves and pay bank charges for taking more than 30 cheque leaves (though this is the banks fault actually) Private sector banks such as HDFC Bank.If your account is debited for some bank charges. if a customer has already taken a cheque book of 10 leaves . Private and foreign banks cover 65% of the forex transactions in India . You can access your account from any branch in India (usually at a charge). Bharat Co-op Bank issues cheque books in denominations of 10 leaves and 25 leaves only. They issue 30 cheque leaves free every 6 months. So. They often do not have cheque books of 10 leaves available. Many times. your account is debited for services you have never used. They have made optimum use of technology and offer internet banking. redemption amounts to your account. Mutual funds can directly credit dividends. IDBI bank and UTI bank were established less than 15 years ago. you should check with the bank manager and ask them the exact details.

these banks will only take any action. If you do not maintain the minimum average quarterly balance (AQB) for a three month period. Now the Reserve Bank of India has made it mandatory for them to give an acknowledgement.The minimum balance requirement is much higher in these banks. before opening an amount. If a cheque has been deposited in an ATM.they were not responsible). . if it can be proved that the payees account has been debited. usually more than Rs 5000 for a savings account. Earlier these banks refused to give any acknowledgement for cheques deposited (if they lost the cheque . It is advisable to check the balance sheets of these banks. The air-conditioned branches of private banks are well designed. Bank statements are sent by post every month or every 3 months. and not been credited to your account. but their staff is often indifferent to customers.Rs 250 .Rs 500. Marketing executive of some new banks like Kotak Mahindra is willing to reduce the AQB requirements to get more customers. along with notifications about changes in bank charges. their bank charges are substantial . If you have deposited a cheque and it is not credited to your account. they usually take 3 to 4 days to find out where the cheque has disappeared.

HSBC. Global Trust Bank was a private sector bank. it is advisable to check the financial status of these banks.Before keeping large amounts in these banks. due to financial problems. which was taken over by the public sector Oriental Bank of Commerce. but the recipient does not have any way to find out who has sent the amount. Citibank. However. Some banks like Syndicate Bank provide details of this scheme at their branch. you can only contact their call center! Recently the entire staff of Citibank’s Jaipur branch was dismissed due to malpractices article from “Economic Times on Citibank Jaipur problem” The Reserve Bank of India has established the Banking Ombudsman Scheme for inexpensive and quick resolution of complaints against banks. usually in the main financial district of major cities. Standard Chartered are some of the foreign banks operating in India. Citibank offers electronic fund transfer to other bank. Details of Banking . They also have very high charges and for some types of accounts. So if you have any problem. you are charged for even a visit to the branch. Customers could not withdraw large amounts from their bank accounts for some time. they have a limited number of branches.

HDFC bank. . exporters and retail customers. Indusind Bank and Indian Bank are selling to retail customers as of March 2006. Though 17 banks are authorized to import gold and resell to jewelers.Ombudsman Scheme are available at the RBI website and websites of some Indian and foreign banks. The gold purchased from banks is 24 karat gold imported from PAMP refinery. Switzerland According to a report by ICRA Limited. Indian banks have a large number of holidays and bank holidays are different in the various states in India.5% and 6. the public sector banks hold over 75 percent of total assets of the banking industry. a rating agency.5% respectively. with the private and foreign banks holding 18. Corporation Bank. only HDFC bank.

   . is Aditya Puri. CEO & MD of HDFC Bank Ltd. Its registered office in Mumbai It won best Home Financer award& best strategy award at Marketing& Advertising Power in2005.ABOUT HDFC  HDFC Housing Development Finance Corporation was established in August 1994 but it started operation as schedule commercial bank in january 1995.

HDFC Bank now has a wide network of over 531 branches across 228 cities &over thousand networked ATM’s. All fact &figure highlighted the rapid growth of HDFC Bank over the last nine years. This Bank adopted the Corporate Governance Policy & keeping in mind the importance of attaining fairness of all stakeholders as well as achieving organization efficiency .

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Domestic Account Flexi Current Account Regular Fixed Deposit .Types Of Current Account Plus Current Account Trade Current Account Premium Current Account Regular Current Account Reimbursement Current Account RFC .

.all this without visiting the branch or ATM! Enjoy facilities like 24-hour Phone Banking.100 lacs per month. Free anywhere collection & payment transactions (clearing) within HDFC Bank branch network (except Dahej). Register for InstaAlert service and receive updates on your account as and when the select transaction happens . up to Rs.HDFC Bank Plus Current Account Features & Benefits Free Account to account funds transfer between HDFC Bank accounts Free payment and collection through RTGS. find out the status of your cheque or stop cheque payment. Net Banking and Mobile Banking that helps you check your balance & transaction details. Free payment and collection using NEFT (through Netbanking) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Convenience to withdraw & deposit cash at all our branches* 300 "At Par" cheque leaves free per month.

all this without visiting the branch or ATM! Enjoy facilities like 24-hour PhoneBanking. Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch. up to Rs. Free anywhere collection & payment within HDFC Bank branch network (except Dahej). RFC Domestic Account Features & Benefits . Convenience to withdraw & deposit cash at all our branches* 200 "At Par" cheque leaves per free month . Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. find out the status of your cheque or stop cheque payment.50 lacs per month. Register for InstaAlert service and receive updates on your account as and when the select transaction happens . Free RTGS/NEFT Transactions.Trade Current Account Features & Benefits Free Account to account funds transfer between HDFC Bank accounts. NetBanking and MobileBanking that helps you check your balance & transaction details.

100.000/.000/-.000/-.100.100.000/.25/.50.000/& up to Rs.& up to Rs. RTGS payment @ Rs.40/-. Pay Order up to Rs. POs above Rs.000/.at nominal cost of Rs.at flat cost of Rs..per transaction S Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.25/.all this without visiting the branch or ATM! : Flexi Current Account Features & Benefits .000/.at nominal cost of Rs.100.50.40/-. Register for InstaAlert service and receive updates on your account as and when the select transaction happens . DDs above Rs.Convenient inter-city banking : Deposit your local cheques in one branch of a city and have it credited to your account at a branch in another city or make payments across HDFC Bank locations using PAP cheque facility at a nominal rate Free payments and collections through NEFT Free RTGS collection..at flat cost of Rs.15/. Free Pay Order (PO) above Rs.50.100/. Demand drafts up to Rs.50.000/. Payable at par cheque book at nominal price.per transactions Free Demand Drafts (DD) above Rs.

you maintain an AMB of Rs. Your dynamic free transaction limits for that month would be as per the following table [ .2. Collections & Funds Transfer as well as Cash Deposit at home location branches based on the AMB maintained For example.Enjoy dynamic free limits on Intercity Payments.000/.in a particular month.00.

an currently an associate bank of the State Bank of India was founded on 17 november 1917. On 1 April 1960.SBOP was founded by Bhupinder Singh Maharaja of the princely state of Patiala of undevided India and the functions of the bank included the normal functions of commercial banks.SBOP was . SBOP is originally named Patiala State Bank.About State bank of Patiala COMPANY’S PROFILE Overview State bank of Patiala is an associate bank of State bank of India.the bank was made a wholly owned subsidiary of the government of Punjab. as also some functions similar to functions of central bank for the princely State of Patiala. After India’s independence.

Haryana. and State Bank of Travancore). Himachal Pardesh.Delhi and Chandigarh.Rajsthan . Presently.accorded the status of an associate bank of State Bank group. State Bank offers you the convenience of over 5000 ATMs in India. The State bank of Patiala has a network of 830 service outlets including 750 branches in all major cities of India . State Bank of Hyderabad.Jammu & Kashmir. State Bank of Patiala. using the State Bank Cash Plus card. State Bank of Saurashtra. State Bank of Bikaner & Jaipur. State Bank of Indore. already the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks namely. State Bank of Mysore. . but most of the branches are located in the India State of Punjab .

Current accounts of SBOP There are two types of current accounts .

First of all I prepared quationnaire to take the feed back existing current account holder and take the feedback from the current account holder of HDFC bank and SBOP bank. To complete my project I took the sample of 50 customers . . It was very difficult to take time from the customer to do the survey.SUMMARY My title is “ To understand the customer ‘s perception of services for current account provided by HDFC and SBOP “.Some of the bank are not aware about the services of HDFC bank. After my study I found out that most of the customers of HDFC bank are not fully satisfied with bank . It is very difficult to find the existing customers from the market. To do the survey I selected the area. Even the current account holders of other bank are very loyal to their existing bank and didn’t give the right information .

OBJECTIVES   To learn about the companies To study the services of HDFC bank and SBOP bank for current account To know which bank provide best service in current account .

LIMITATION     It is very difficult to find exsisting customers of HDFC bank and SBOP Some times customer gives wrong information Lack of available data Some time customers are busy in their work & they refused to cooperate in providing the information Bank employees don’t have time for know something for services of current account  .

Convienence sampling .METHODOLOGY Sample area :.Bathinda Sample size :.50 Tool used :.Personel interview of customers and quitionnair Sampling Technique :.

. Out of 50 . 30 people have current account in HDFC and 20 people have current account in SBOP.Analysis HDFC SBOP Services for current a/c People like 30 20 I conducted survey of 50 people.

HDFC provide internet banking.FINDINGS I conducted survey of 50 people. HDFC provide better services for current account rather than SBOP .local .Because HDFC is a private player and bank is providing better services to customer for more profit that’s why people believe in HDFC. SBOP is the subsidiary of State Bank Of India.mobile banking. They opened their current account in SBOP. Ifound that thoso people who believe in government .

pay orders. demand draft.Out of 20 People 96% fully satisfied with SBOP services for current account and 4% people partial satisfied.20 people have current account with SBOP Bank . pay order .HDFC provide locker facility . Out of 50 people . I conducted servey 50 people. .cheques.So that 30 people have current account in HDFC bank and 20 people have current account in SBOP.SBOP does not provide locker facility.demand draft.

I conducted servey 50 people.30 people have current account with HDFC Bank .Out of 30People 88% fully satisfied with HDFC services for current account and 12% people partial satisfied. 2003 (Millions of dollars) . Out of 50 people . Balance of Payments Accounts US International Transactions.

117 – Capital Account Capital account transactions –3.778.439 .Current Account Exports of goods and services 1.888 Imports of goods and services 1.079 Financial Account US-owned assets abroad 283.012 – – Unilateral Current Transfers –67.414 Foreign-owned assets in the US 829.173 Statistical discrepancy 12.314.

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S.Figure 18-4: U. Macroeconomic Data. 1964-1972 .

RECOMMENDATIONS • Bank should immediately solve the customer problem • Bank’s should make customer aware about the charges of services • HDFC bank require to provide fast service • If company want to the edge over competitors then SBOP bank requires to give something extra with current facility to the customers .

a) Yes b) No Q2. Which bank you would like to choose? Ans.APPENDICES:Q1. a) HDFC c) ICICI b) SBOP d) PNB e) others Q3. In which bank have you current account? Ans. a) Yes b) No Q5. a) HDFC c) ICICI b) SBOP d) PNB e) any others . Do you have current account? Ans. a) Yes b) No Q4. Are you satisfied from this bank? Ans. Do you want to change your bank? Ans.

What type of service is provided by SBOP in current account ? Ans. What type of service you expect from bank? Ans. a)Internet Banking c)Locker e) Cheques g) Others b)Dimand draft d)Pay order f) Mobile banking Q8.Q6. How much minimum money do you require to open a current a/c in HDFC ? Ans. ____________________________________________________ Q9. a)Internet Banking c)Locker e) Cheques g) Others b)Dimand draft d)Pay order f) Mobile banking Q7. What type of service is provided by HDFC bank in current a/c? Ans. a) 1000 c)More than 10000 b)5000 .

co.sbp.hdfcbank. a) 1000 c)More than 10000 b)5000 REFERENCES www.in Interact with customers through survey .com www.Q10 How much minimum money do you require to open a current a/c in SBOP ? Ans .

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