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

By:Manju Bala 7NBBT001

“To understand customers’ perception of services for current account provided by HDFC bank and SBOP”


Submitted To: By:-


Ms Poornima Garg No:-7NBBT001

Manju Bala Roll

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

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Limitation Methodology Findings Recommendation Appendices References

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 .

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

and economies and politics for centuries. 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. a so called non-banking financial company. accept term deposits and make term loans and provide other financial services. The terms “bankrupt” and "broke" are similarly derived from banca rotta. Banks that issue notes are called Banks of Issue. and lend money to customers on current account (called overdraft). Banks may also issue bank notes. which refers to an out-of-business bank. have influenced The word bank is derived from the Italian banca. having its bench physically broken. Banks have a long history. which is derived from a Germanic language and means “bench”. Money lenders in Northern Italy originally did business in open areas.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. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank. or big . Currently in most jurisdictions the business of banking is regulated and banks require a license.

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

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. there . as the central bank of the country. Co-operative Banks included Urban Banks and State Banks. The Reserve Bank of India (RBI). As at end-March 2002. Private Sector Banks and other Nationalized Banks in India.

The home loans alone account for nearly two-third of the total retail portfolio of the bank. It is proposed to hike the CAR to 12% by 2004 based on the Basle Committee recommendations. And on advances. Retail Banking is the new mantra in the banking sector. Also. Scheduled commercial banks touched. This included 27 Public Sector Banks (PSBs).3 % of the earlier year. on the deposit front.were 296 Commercial banks operating in India. the growth was 14. the retail segment is expected to grow at 3040% in the coming years . a growth of 14% as against 18% registered in the previous year. 40 Foreign and 196 Regional Rural 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%. According to one estimate. ICICI and its two subsidiaries merged with ICICI Bank. State Bank of India is still the largest bank in India with the market share of 20%. 30 Private. there were 68 scheduled co-operative banks consisting of 52 scheduled urban co-operative banks and 16 scheduled state co-operative banks. leading creating the second largest bank in India with a balance sheet size of Rs1040bn.5%against 17.

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

Minimum balance is also specified by each bank. 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.Government will hold 49% stake and private players will hold the rest 51% . In addition.the majority being held by ICICI Bank (24. This a/c is opened by a business organization for meeting their business transactions.    .5%). minimum balance Fees etc. the bank also levy certain charges for maintaining the accounts in the form of ledger Fees.

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

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

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

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

Global Trust Bank was a private sector bank. which was taken over by the public sector Oriental Bank of Commerce. Details of Banking . They also have very high charges and for some types of accounts. but the recipient does not have any way to find out who has sent the amount. usually in the main financial district of major cities. they have a limited number of branches. HSBC. you are charged for even a visit to the branch. So if you have any problem. 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. Customers could not withdraw large amounts from their bank accounts for some time.Before keeping large amounts in these banks. Standard Chartered are some of the foreign banks operating in India. due to financial problems. Citibank. However. Citibank offers electronic fund transfer to other bank. it is advisable to check the financial status of these banks. Some banks like Syndicate Bank provide details of this scheme at their branch.

Corporation Bank. Indian banks have a large number of holidays and bank holidays are different in the various states in India. Though 17 banks are authorized to import gold and resell to jewelers. a rating agency. . The gold purchased from banks is 24 karat gold imported from PAMP refinery. only HDFC bank. with the private and foreign banks holding 18. exporters and retail customers. HDFC bank.Ombudsman Scheme are available at the RBI website and websites of some Indian and foreign banks. the public sector banks hold over 75 percent of total assets of the banking industry.5% respectively. Switzerland According to a report by ICRA Limited. Indusind Bank and Indian Bank are selling to retail customers as of March 2006.5% and 6.

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

This Bank adopted the Corporate Governance Policy & keeping in mind the importance of attaining fairness of all stakeholders as well as achieving organization efficiency .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.



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 .

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

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

per transactions Free Demand Drafts (DD) above Rs.000/ flat cost of Rs.000/.& up to Rs. RTGS payment @ Rs.100/. POs above Rs. Pay Order up to Rs..000/.all this without visiting the branch or ATM! : Flexi Current Account Features & Benefits .50.15/.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. Register for InstaAlert service and receive updates on your account as and when the select transaction happens .000/.000/& up to flat cost of Rs. DDs above Rs.000/.100.40/ nominal cost of nominal cost of Rs. Payable at par cheque book at nominal price. Demand drafts up to Rs.50.50.. Free Pay Order (PO) above Rs.40/-.50.100.25/.000/.per transaction S Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.25/.000/-.

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

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

State Bank of Mysore. State Bank of Indore.Delhi and Chandigarh. State Bank offers you the convenience of over 5000 ATMs in India. State Bank of Saurashtra.Rajsthan . . Presently. The State bank of Patiala has a network of 830 service outlets including 750 branches in all major cities of India . 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. Himachal Pardesh. and State Bank of Travancore). State Bank of Hyderabad. State Bank of Bikaner & Jaipur.accorded the status of an associate bank of State Bank group. State Bank of Patiala. using the State Bank Cash Plus card. Haryana. but most of the branches are located in the India State of Punjab .Jammu & Kashmir.

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

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

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

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

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

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

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

012 – – Unilateral Current Transfers –67.314.079 Financial Account US-owned assets abroad 283.Current Account Exports of goods and services 1.117 – Capital Account Capital account transactions –3.778.414 Foreign-owned assets in the US 829.439 .888 Imports of goods and services 1.173 Statistical discrepancy 12.


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

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 .

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

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

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

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