PROBLEM STATEMENT

The first step in research is formulating a research problem. A poorly defined

problem will not yield any useful result. It is rightly said that a problem well defined if
half solved.
In order to identify the research problem three categories of symptomatic situation
namely overt difficulties, latent difficulties and unnoticed opportunities should be
studied.
1. Overt difficulties are those, which are quite apparent, and which manifest
themselves for example if a firm has been witnessing a decline in sale for same
time this could be called on overt difficulty.
2. Latent difficulties on the other hand are those, which are not so apparent and I
which if not checed, would soon become evident for ex. !ecline sales may in
due course demorali"e the sale staff.
#. $nnoticed %pportunities indicate the potential for growth in a certain area of
mareting. &uch opportunities are not clearly seen and some effort is required to
explore them.
As such no problem was given to me while doing my summer training pro'ect but
I found the following problems in the organi"ation.
1
Complicated terms and Conditions
The terms and conditions of every product was so much complicated that it is not
easily understandable by the customers.

Strict Rules and Hig Targets
(ules and regulation for the employee of the organi"ation were so much tight some time
they feel very hectic. )oreover the targets given to them are also very high
!NTRO"#CT!ON TO BAN$!N%
MEAN!N% AN" "E&!N!T!ON'
*y +indla &heras
*an is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baing in the modern industrial world is
commercial baning , central baning.
*aning means -Accepting !eposits for the purpose of lending or investment of
deposits of money from the public, repayable on demand or otherwise and withdraw by
cheque, draft or otherwise..
*aning /ompanies 0(egulation1 Act, 1232
The concise oxford dictionary has defined a ban as -4stablishment for custody
of money which it pays out on customers order.. Infact this is the function which the
ban performed when baning originated.
-*aning in the most general sense, is meant the business of receiving,
conserving , utili"ing the funds of community or of an special section of it..
*y 5. 6ills , 7. *ogan
-A baner of ban is a person, a firm, or a company having a place of business
where credits are opened by deposits or collection of money or currency or where money
is advanced and waned..
A Ban('
Accept deposits of money from public,
8ays interest on money deposited with it.
9ends or invests money.
2
(epays the amount on demand
Allow the money deposited to be with drawn by cheque or draft.
OR!%!N O& )OR" BAN$'
The origin of the word ban is shrouded in mystery. According to one view point
the Italian business house carrying on crude from of baning were called banchi
bancheri.. According to another viewpoint baning is derived from :erman word
-*ranc. which mean heap or mound. In 4ngland, the issue of paper money by the
government was referred to as a raising a ban.
OR!%!N O& BAN$!N%'
Its origin in the simplest form can be traced to the origin of authentic history.
After recogni"ing the benefit of money as a medium of exchange, the importance of
baning was developed as it provides the safer place to store the money. This safe place
ultimately evolved in to financial institutions that accepts deposits and mae loans i.e.,
modern commercial bans.
BAN$!N% S*STEM !N !N"!A
H!STOR!CAL PERSPECT!+E'
6e can identify there distinct phases in the history of Indian baning;
1. 4arly phase from 1<=>?12>2.
2. @ationali"ation of bans and up to 1221 prior to baning sector reforms.
#. @ew phase of Indian baning with the advent of financial baning. *aning in
India has its origin as early as Aedic period. It is believed that the transitions
from man lending to baning must have occurred even before )anu, the great
5indu furriest, who has devoted a section of his wor to deposit and advances
and laid down rules relating to the rate of interest. !uring the mogul period,
the indigenious baner played a very important role in lending money and
financing foreign trade and commerce.
!uring the days of the 4ast India company it was the turn of agency house to
carry on the baning business. The :eneral *an of India was the first 'oint stoc ban to
be established in the year 1<=>. The other which followed was the *an of 5industan and
*engal *an.
The *an of 5industan is reported to have continued till 12B>. 6hile other two
failed in the meantime. In the first half of the 12
th
century the 4ast India /ompany
established there bans. The band of *ombay in 1=B2, and the *an *ombay in 1=3#.
These three bans were amalgamated in 122B and new ban, the imperial *an of India
was established on 2<
th
7anuary, 1221.
#
6ith the passing of the &tate *an of India Act in 12CC the undertaing of the
Imperial *an of India was taen over by the newly constituted &*I. The (eserve *an
of India 0(*I1which is the /entral ban was established in April, 12#C by passing
(eserve *an of India Act 12#C. The /entral office of (*I is in )umbai and it controls
all the other bans in the country.
In the wae of &wadeshi )ovement, number of bans with the Indian
management were establishment in the country, namely, 8un'ab @ational *an 9td., *an
of India 9td., *an of *aroda 9td., /anara *an 9td. %n 12
th
7ul 12>2, 13 ma'or bans of
the country were nationali"ed and on 1C
th
April 12=B, > more commercial private sector
bans were taen over by the government.
CLASS!&!CAT!ON ON BAS!S O& O)NERSH!P'
%n the basis of ownership bans are of the following types'
,- P#BL!C SECTOR BAN$'
8ublic sector bans are those bans that are owned by the :overnment. The :ovt.
runs these *ans. In India 13 bans were nationali"ed in 12>2 , in 12=B another
> bans were also nationali"ed. Therefore in 12=B the number of nationali"ed
ban 2B. *ut at present there are 2 bans are nationali"ed. All these bans are
belonging to public sector category. 6elfare is their principle ob'ective.
.- PR!+ATE SECTOR BAN$S'
These bans are owned and run by the private sector. Aarious bans in the country
such as I/I/I *an, 5!+/ *an etc. An individual has control over there bans
in preparation to the share of the bans held by him.
/- CO0OPERAT!+E BAN$S'
/o?operative bans are those financial institutions. They provide short term ,
medium termD loans to there members. /o?operative bans are in every state in
India ?Its branches at district level are nown as the central co?operative ban.
The central co?operative ban in turn has its branches both in the urban , rural
areas. .4very state cooperative ban is an apex ban, which provides credit
facilities to the central co?operative ban. It mobili"ed financial resources from
richer section of urb#n population by accepting deposit and creating the credit lie
commercial ban and borrowing from the money mt. It also gets funds from
(*I.
&#NCT!ONS O& BAN$S'
,- Primar1 &unctions
2a3 Acceptance of deposits
243 Ma(ing Loans and Advances
3
9oans
%verdrafts
/ash /redit
!iscounting of *ills of 4xchange
.- Secondar1 &unctions
0a3 Agenc1 &unctions
/ollection of cheques and bills etc
/ollection of interest and dividend
)aing payment on behalf of customers .
8urchase and sale of securities.
To act as trustee and executor
043 #tilit1 &unctions
&afe custody of customers valuable articles and securities.
$nderwriting facility
Issuing of TravellerDs cheque and letter of credit
+acility of foreign exchange
8roviding trade information
8roviding information regarding credit worthiness of their customers.
C
H"&C Ban(
The 5ousing !evelopment +inance /orporation 9imited 05!+/1 was amongst the first
to receive an Ein principleF approval from the (eserve *an of India 0(*I1 to set up a
ban in the private sector, as part of the (*IFs liberali"ation of the Indian *aning
Industry in 1223. The ban was incorporated in August 1223 in the name of E5!+/ *an
9imitedF, with its registered office in )umbai, India. 5!+/ *an commenced operations
as a &cheduled /ommercial *an in 7anuary 122C.
5!+/ *an is headquarted in )umbai. The *an at present has networ of over
3C#1 branches spread over 22= cities across India. All branches are lined on an online
real time basis. /ustomers in over 12B locations are also serviced through Telephone
*aning.
8romoter
*usiness +ocus
/apital &tructure
Time *an Amalgamation
!istribution @etwor
)anagement
Technology
*usinesses
(atings
PROMOTER
5!+/ is IndiaDs premier housing finance company and en'oys an impeccable
trac record in India as well as in international marets. &ince its inception in 12<<, the
/orporation has maintained a consistent and healthy growth in its operations to remain a
maret leader in mortgages. 5!+/ currently has a client base of over C,BB,BBB
borrowers, 1#,BB,BBB depositors, 1,BB,BBB shareholders and C2,BBB deposit agents.
5!+/ raises funds from international agencies such as the 6orld *an, I+/
06ashington1, $&AI!, /!/, A!* and Gf6, domestic term loans from bans and
insurance companies, bonds and deposits. 5!+/ has received the highest rating for its
bonds and deposits program for the eighth year in succession.
Its outstanding loan portfolio covers well over a million dwelling units. 5!+/
has developed significant expertise in retail mortgage loans to different maret segments
and also has a large corporate client base for its housing related credit facilities. 6ith its
>
experience in the financial marets, a strong maret reputation, large shareholder base
and unique consumer franchise, 5!+/ was ideally positioned to promote a ban in the
Indian environment.
%ver the years, 5!+/ has helped to promote institutions in the field of housing
finance, and in the financial sector in general.
@otable amongst these has been 5!+/ *an. This was initially promoted in a
strategic alliance with @at west )arets?$G. 5!+/
*an commenced its operations in +ebruary 122C. 5!+/ *an currently has
strategic business collaboration with The /hase )anhattan *an. 5!+/ *an is
presently one of the largest private sector bans following the merger with Times *an
9imited. The merger has provided 5!+/ *an a strong presence in the retail?baning
segment.
5!+/ currently holds 23.3 H of equity in 5!+/ *an.
&toc also listed on @I&4 in the form of American !epository &hares
@etwor of over 131> branches and ##=2 AT)s in CCB cities
8hone baning, mobile and internet baning
/ustomer base of over #.1 million accounts
Gey business areas
6holesale baning
(etail baning
Treasury operations
+inancials 0as per Indian :)81 for year ended )ar #1,2BB#
Total income; (s 23.2> bn, increase of2#H over previous year
8AT; (s #.2 billion, increase of#BH over previous year.
(eturn on 4quity ?1=.1 H ?)aret capitali"ation J (s. >> billion 0$&K
1.#2 billion1.
B#S!NESS &OC#S
5!+/ *anDs mission is to be a 6orld?/lass Indian *an. The *anDs aim is to
build sound customer franchises across distinct businesses so as to be the preferred
provider of baning services in the segments that the ban operates in and to achieve
healthy growth in profitability, consistent with the banDs ris appetite. The ban is
committed to maintain the highest level of ethical standards, professional integrity and
regulatory compliance. 5!+/ *anDs business philosophy is based on four core values;
%perational 4xcellence, /ustomer +ocus, 8roduct 9eadership and 8eople.
<
T!MES BAN$ AMAL%AMAT!ON
In a milestone transaction in the In Indian baning industry, Times *an 9imited
0another new private sector ban promoted by *ennett, /oleman , /o. LTimes :roup1
was merged with 5!+/ *an 9td, effective +ebruary 2>, 2BBB. As per the scheme of
amalgamation approved by the shareholders of both bans and the (eserve *an of India,
shareholders of Times *an received share of 5!+/ *an for every C.<C shares of Times
*an. The amalgamation added significant value to 5!+/ *an in terms of increased
branch networ, expanded geographic reach, enhanced customer base, silled manpower
and the opportunity to crosssell and leverage alternative delivery channels.
"!STR!B#T!ON NET)OR$
5!+/ *an is headquartered in )umbai. The *an at present has an enviable
networ of over >=3 branches spread over #1C cities across the country. All branches are
lined on an online real?time basis. /ustomers in =B locations are also serviced through
8hone *aning. The *anDs expansion plans tae into account the need to have a
presence in all ma'or 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. *eing a clearingLsettlement ban to various leading stoc exchanges, the
*an has branches in the centers where the @&4L*&4 have a strong and active member
base.
The ban also has a networ of over 1>BC networed AT)Ds across these cities.
)oreover, all domestic and international AisaL)aster/ard, Aisa 4lectronL)aestro,
8lusL/irrus and American 4xpress /reditL/harge cardholders can access 5!+/ *anDs
AT) networ.
MANA%EMENT
)r. 7agdish /apoor too over as the banDs /hairman in 7uly 2BB1. 8rior to this,
)r. /apoor was a !eputy :overnor of the (eserve *an of India. The )anaging
!irector, )r. Aditya 8uri, has been a professional baner for over 2C years, and before
'oining 5%+/ *an in 1223 was heading /itibanDs operations in )alaysia.
The *anDs *oard of !irectors is composed of eminent individuals with a wealth
of experience in public policy, administration, industry and commercial baning.
&enior executives representing 5%+/ are also on the *oard.
&enior baning professionals with substantial experience in India and abroad head
various businesses and functions and report to the )anaging !irector. :iven the
professional expertise of the management team and the overall focus on recruiting and
=
retaining the best talent in the industry, the ban believes that its people are a significant
competitive strength.
H"&C PRO&!LE
Board of "irectors'
)r. 7agdish /apoor /hairmanL/hair 8erson
)r. Aditya 8uri )anaging !irector
)r. Gei ). )istry !irector
)r. Arvind 8ande !irector
)r.Ashim &amanta !irector
)r gautam divan !irector
)s (enu Garnad !irector
)r. /.). Aasudev !irector
!r. 8andit 8alande !irector
)r. 5arish 4ngineer 4xec. !irector
)r. 8aresh &uhtanar 4x. !ivn.
E5e!cutive +ice0President 2Legal3 6 Co- Secretar1
)r. &an'ay *.!ongre
Auditors
)Ls 5aribhati , /o.
/hartered Accountant
Registered Office
5!+/ *an 5ouse
&enapati *apat )arg
9ower 8arel
)umbai J 3BB B1#
Tel.;C>C21BBB, >>C21BBB
+ax; 232>B<#<
6ebsite;www.hdfcban.com
4mail;investor.heupdesMhdfcban.com
2
H"&C Product Profile
5!+/ *an India provides the following range of products;
&avings Account
5!+/ *an 8referred
&weep?In Account
&uper &aver Account
5!+/ *an 8lus
!emat Account
5!+/ )utual +und
5!+/ &tandard 9ife Insurance
H"&C !ndia innovative services
5!+/ 8hone *aning
5!+/ AT)
5!+/ Inter?cityLInter?branch *aning
5!+/ @et *aning
5!+/ International !ebit /ard
5!+/ )obile *aning
5!+/ *ill 8ay
H"&C Ban( Loans
5!+/ 8ersonal 9oan
5!+/ @ew /ar 9oan and $sed /ar 9oan
5!+/ 9oan Against &hares
5!+/ Two 6heeler , /onsumer 9oan
5!+/ 5ome 9oan
1B
TECHNOLO%*
5!+/ *an operates in a highly automated environment in terms of information
technology and communication systems. All the banDs branches have connectivity, which
enables the ban to offer speedy funds transfer facilities to its customers. )ultibranch
access is also provided to retail customers through the branch networ and Automated
Teller )achines 0AT)s1.
The *an has made substantial efforts and investments in acquiring the best
technology available internationally to build the infrastructure for a world?class ban. In
terms of software, the /orporate *aning business is supported by +lexcube, while the
(etail *aning business by +inware, both from i?flex &olutions 9td. The systems are
open, scaleable and web?enabled.
The *an has prioriti"ed its engagement in technology and the Internet as one of
its ey goals and has already made significant progress in web?enabling its core
businesses. In Deach of its businesses, the *an has succeeded in leveraging? its maret
position, expertise and technology to create a competitive advantage and build maret
share.
B#S!NESS PRO&!LE
5!+/ *an caters to a wide range of baning services covering both commercial and
investment baning on the wholesale side and transactionalLbranch baning on the retail
side. The ban has three ey business areas;
2a3 )olesale Ban(ing Services
The *anDs target maret is primarily large, blue chip manufacturing companies in
the Indian corporate sector and to a lesser extent, emerging midsi"ed corporates.
+or these corporate, the *an provides a wide range of commercial and
transactional baning services, including woring capital finance, trade services,
transactional services, cash management, etc. The ban is also a leading provider
of structured solutions that combine cashD management services with vendor and
distributor finance for facilitating superior supply chain management for its
corporate customer
243 Retail Ban(ing Services
The ob'ective of the (etail *an is to provide its target maret customers a full
range of financial products and baning services, giving the customer a one stop
window for all hisLher baning requirements. The products are baced by world?
class service and delivered to the customers through the growing branch networ,
as well as through alternative delivery channels lie AT)s, 8hone *aning, @et
*aning and )obile *aning.
11
The 5!+/ *an 8referred program for high net worth individuals, the 5!+/
*an 8lus and the Investment Advisory &ervices programs have been designed
eeping in mind needs of customers who see distinct financial solutions,
information and advice on various investment avenues. The *an also has a wide
array of retail loan products including Auto 9oans, 9oans against maretable
securities, 8ersonal 9oans and 9oans for Two?wheelers. Its also a leading provider
of !epository &ervices to retail customers, offering customers the facility to hold
their investments in electronic form.
5!+/ *an was the first ban in India to launch an International !ebit /ard in
association with AI&A 0AI&A 4lectron1 and issues the )aster/ard )aestro debit
card as well. The debit card allows the user to directly debit his account at the
point of purchase at a merchant establishment, in India and overseas. The *an
launched its credit card in association with AI&A in @ovember 2BB1. The *an is
also one of the leading players in the Nmerchant acquiringN business with over
2C,BBB 8oint?of?sale 08%&1 terminals for debit L credit cards acceptance at
merchant establishments. The *an is well positioned as a leader in various net?
based *2/ opportunities including a wide range of Internet baning services for
+ixed !eposits, 9oans, *ill 8ayments., etc.
2c3 Treasur1 Operations
6ithin this business, the ban has three main product areas?+oreign 4xchange
and !erivatives, 9ocal /urrency )oney )aret , !ebt &ecurities, and 4quities
6ith the liberali"ation of the financial marets in India, corporate need more
sophisticated ris management information, advice and product structures, These
and fine pricing on various treasury products are provided through the banDs
Treasury team. To comply with statutory reserve requirements, the ban is
required to hold 2CH of its deposits in government securities. The Treasury
business is responsible for managing the returns and maret ris on this
investment portfolio.
12
RESERCH METHO"OLO%* '
The procedure adopted for conducting the research requires a lot of attention as it has
direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this
reason that research methodology, which we used at the time of conducting the research,
needs to be elaborated upon. (esearch )ethodology is a way to systematically study ,
solve the research problems. If a researcher wants to claim his study as a good study, he
must clearly state the methodology adopted in conducting the research so that it ma be
'udged by the reader whether the methodology of wor done is sound or not.
(esearch is any organi"ed inquiry carried out to provide information for solving
problems. *usiness research is a systematic inquiry that provides information to tae
business decisions.
"efinition
-(esearch comprises of defining and redefining hypothesis or suggesting solution,
collecting, organi"ing and evaluating data maing deductions and reaching conclusions..
B1 Clifford )ood1
The term (esearch )ethodology here comprises of all research activities carried
on in connection with the -Anal1sis is various scemes under Saving7 Current and
&i5ed "eposit Accounts Provided 41 H"&C Ban(8-
Meaning of Researc;
(esearch is defined as -a scientific , systematic search for pertinent information
on a specific topic. (esearch is an art of scientific investigation. (esearch is a
systemati"ed effort to gain new nowledge. It is a careful investigation or inquiry
especially through search for new facts in any branch of nowledge. (esearch is an
academic activity and this term should be used in a technical sense. (esearch com prices
defining and redefining problems, formulating hypothesis or suggested solutionsO maing
deductions and reaching conclusions to determine whether they fit the formulating hypo
thesis. (esearch is thus, an original contribution to the existing stoc of nowledge
maing for its advancement. The search for nowledge through ob'ective and systematic
method of findqing solution to a problem is research.
Sampling 6 Sampling "esign

1#
All items in any field of inquiry constitute a E$niverseF or E8opulationF. A
complete enumeration of all items in the population is nown as census inquiry. *ut
where census inquiry is not feasible due to time, money and efforts constraint sample
survey is conducted.
The respondents selected should be as representative of the total population as possible in
order to produce a miniature cross?section. The selected respondents constitute what is
technically called a EsampleF and the selection process is called 9sampling tecni:ue;
and the survey so conducted is nown as 9sample surve1;-
A 9sample design; is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in
selecting items for the sample.
The corporate sea being very fast, it becomes impossible to contact each and
every individual of the universe due to the time and money constraints. Therefore, the
study has been narrowed down to a representative sample to mae the study more
manageable.
Geeping in view the ob'ectives and resource limitations of the study, sample of
1BB orgnaisations was taen. This sample of three organi"ations was selected on the basis
of random sampling.
Researc "esign
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure. (esearch design is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection measurement and analysis of
data. (esearch design operational implication to the final analysis of data.
It also includes the time and cost budget since most studies are done under these
two constraints. (esearch design can be categori"ed as;
The present study is descriptive in nature, as it sees to describe ideas and insight
and to bring out new relationships. (esearch design is flexible enough to provide
opportunity for considering different aspects of problems under study. It helps in bringing
into focus some inherent weaness in enterprise regarding which in depth study can be
conducted by management
In the study I will apply descriptive researc design- As descriptive researc design is
the description of state of affairs, as it exists at present. In this type of research the
researcher has no control over the variables, he can only report what has happened or
what is happening.
13
"ata Collection '
The data for the study is comprised both primary as well as secondary.
Primar1 data has been collected from executives of 5!+/ *an, other bans and
customers, through the questionnaire comprising the various questions related to the
study, by discussions, meeting with the executives at different levels, copy of
questionnaire is enclosed in the annexure. &econdary data has been collected through the
annual reports, data from maga"ines, 'ournals, newspapers and online information.
The primary data are those which are collected a fresh and for the first time and
thus happen to be original in character.
The secondar1 data are those which have already been collected by someone else
and which have already been passed through the statistical process.
Primar1 "ata' Puestionnaire, data from ban staff members and
9oan department.
Secondar1 "ata' !ata from maga"ines, 'ournals, newspapers,
%nline information etc.
OB<ECT!+ES O& THE ST#"*
To now the concept of *aning sector.
To explore various schemes lie saving account, current account, fixed deposits,
demat account offered by 5!+/ *an.
To now which is the most popular scheme of the ban.
To now promotional efforts made by the ban to attract customers.
To now problems faced by the customers in the ban.
To find out awareness level , reaction of customers towards direct baning
channels providing by ban.
To find causes of dissatisfaction, if any, about !irect *aing /hannels.
To provide suggestions for improvement in different schemes provided by 5!+/
ban.
1C
L!M!TAT!ONS O& THE ST#"*
!ue to constraints of time , resources the present study is liely to suffer from
certain limitations some of these are mentioned below, so that study can be
understood in a proper way ;
Area covered under the report as sample si"e was very small.
The research was carried out in a short period of >?< wees as a part of summer
training. The pro'ect was completed within the given time frame.
&ome of the respondents of the survey were unwilling to give information.
&ometimes wrong respondents provided information, which needed to be,
crosscheced , verified.
/hances of biasness are there because of the use of convenient sampling.
&ome respondents were not available and thus needed data could not be found.
Availability of data was a constraint due to only on those schemes are considered,
which is available.
Though every J -8recaution has taen due to large data , complex calculation
there may be chance of errors..
1>
S)OT ANAL*S!S
Strengths
HDFC bank is the second largest private banking sector in India having
2,201 branches and 7,110 ATMs
HDFC bank is located in 1,17! cities in India and has "ore than #00
locations to serve c$sto"ers thro$gh Telephone banking
The banks ATM card is co"patible %ith all do"estic and international
&isa'Master card, &isa (lectron' Maestro, )l$s'cir$s and A"erican (*press+
This is one reason ,or HDFC cards to be the "ost pre,erred card ,or shopping and
online transactions
HDFC bank has the high degree o, c$sto"er satis,action %hen co"pared
to other private banks
The attrition rate in HDFC is lo% and it is one o, the best places to %ork in
private banking sector
HDFC has lots o, a%ards and recognition, it has received -.est .ank
a%ard ,ro" vario$s ,inancial rating instit$tions like D$n and .radstreet,
Financial e*press, ($ro"one/ a%ards ,or e*cellence, Finance Asia co$ntr/
a%ards etc
HDFC has good ,inancial advisors in ter"s o, g$iding c$sto"ers to%ards
right invest"ents
Weakness
HDFC bank doesnt have strong presence in 0$ral areas, %here as ICICI
bank its direct co"petitor is e*panding in r$ral "arket
HDFC cannot en1o/ ,irst "over advantage in r$ral areas+ 0$ral people are
hard core lo/als in ter"s o, banking services+
HDFC lacks in aggressive "arketing strategies like ICICI
The bank ,oc$ses "ostl/ on high end clients
2o"e o, the banks prod$ct categories lack in per,or"ance and doesnt
have reach in the "arket
1<
The share prices o, HDFC are o,ten ,l$ct$ating ca$sing $ncertaint/ ,or the
investors
Opportunities
HDFC bank has better asset 3$alit/ para"eters over govern"ent banks,
hence the pro,it gro%th is likel/ to increase
The co"panies in large and 2M( are gro%ing at ver/ ,ast pace+ HDFC has
good rep$tation in ter"s o, "aintaining corporate salar/ acco$nts
HDFC bank has i"proved its bad debts port,olio and the recover/ o, bad
debts are high %hen co"pared to govern"ent banks
HDFC has ver/ good opport$nities in abroad
4reater scope ,or ac3$isitions and strategic alliances d$e to strong
,inancial position
Threats
HDFCs nonper,or"ing assets 56)A7 increased ,ro" 0+1# 8 to 0+208+
Tho$gh it is a slight variation its not a good sign ,or the ,inancial health o, the
bank
The non banking ,inancial co"panies and ne% age banks are increasing in
India
The HDFC is not able to e*pand its "arket share as ICICI i"poses "a1or
threat
The govern"ent banks are tr/ing to "oderni9e to co"pete %ith private
banks
0.I has opened $p to 7!8 ,or ,oreign banks to invest in Indian "arket
1=
PESTLE ANAL*S!S
1. Indian baning sector is least affected as compared to other developed countries?
thans to robust policy framewor of (*I.Q :overnment affects the performance of
baning sector most by legislature and framing policy government through its budget
affects the baning activities securiti"ation act has given more power to baning sector
against defaulting borrowers.Q &tricter prudential regulations with respect to capital and
liquidity gives India an advantage in terms of credibility over other countries.Q To support
capitalisation, the government has infused (s 2#,2BB crore 0$&K C.2 billion1 into state?
owned bans during the last three fiscals
2. The move to increase +oreign !irect Investment +!I limits to 32 percent from 2B
percent during the first quarter of this fiscal came as a welcome announcement to foreign
players wanting to get a foot hold in the Indian )arets by investing in willing Indian
partners who are starved of net worth to meet /A( norms.Q /eiling for +II investment in
companies was also increased from 23.B percent to 32.B percent and have been included
within the ambit of +!I investment Q Increase +arm /redit Q &ubvention of 1H to be paid
as incentive to farmers Q !ebt 6aiver for +armers Q &etting up of separate tas force for
those not covered under the debt waiver scheme
#. Agriculture has been the mainstay of our economy with >BH of our
populationderiving their sustenance from it.QIn the recent past, the sector has recorded a
growth of about 3H per annum withsubstantial increase in plan allocations and capital
formation in the sector with help ofbaning assistance.QThe one?time ban loan waiver of
nearly (s <1,BBB crore to cover an estimated 3B million farmers was one of the ma'or
highlights
3. 4very year (*I declares its > monthly policies and accordingly the
variousmeasures and rates are implemented which has an impact on the
baningsector.QThe 4conomic measures affects the baning sector to boost the economy
by giving certain concessions or facilities. If in the savings are encouraged, thenmore
deposits will be attracted towards the bans and inturn they can lendmore money to the
agricultural sector and industrialsector, therefore, booming the economy.QIf the +!I limits
are relaxed, then more +!I are brought in India through baning channels
C. Gey 7uly &ept %ct4very year (*I declares its > monthly (ate 2>th 1>th
2Cthpolicies and accordingly the various smeasures and rates are implemented whichhas
an impact on the baning /(( >.oo >.BB >.BBsector.In past 23 months (*I has changed
its (epo =.BB =.2C =.CBey monetary rates 1# times to curb rateinflation and other
economic riss. (ever <.BB <.2C <.CB se repo rate &9( 23 23 23
12
>. Indian economy has registered robust growth in past years and *aning sector
isdirectly related to the growth of the economy.:%I is trying to push the economy by
framing favorable +!I policies , @(IInvestment plans which directly affect the
:!8.These plans directly affect baning industry as money comes through bans
andban earns interest on that.
<. Interest (ates;(*I controls interest rates, which (*I monitors regularly(ecently
(*I reduced ban rate to stimulate growth of baning industryInflation (ate;India is
facing huge troubles due to inflation as it is 1BH now.To curb the inflation and slowdown
of economy (*I has taen varioussteps lie lowering interest rates to increase the
demand in baning sector&avings and Investments; :ross domestic saving is 2=H of total
income in India9atest step taen by (*I to deregulate savings rates is a step to
increase*an savings
=. It includes cultural aspects and health consciousness, population growth rate,
agedistribution, career attitudes and emphasis on safety. This could be
classifiedinto;*efore the birth of the bans, people of India were used to borrow money
localmoneylenders, shahuars, shroffs. They were used to charge higher interest andalso
mortgage land and house. *ut after emergence of bans attitude of people waschanged
and they have started lending from the bans 9ife style of India is changing rapidly. They
are demanding high class products. They have become more advanced. 8eople needs and
wants are increasing day by day. And this has this has opened opportunities for baning
sector to tap this change. This has made things available easily to everyone.
2. Increase in population is one of he important factor, which affect theprivate sector
bans. *ans would open their branches after looing into thepopulation demographics
of the area.@ewer branches are coming to serve the increasing population. This incentive
to banscomes on the bac of the continuing need to open more branches in these &tates
inorder to ensure more uniform spatial distribution9iteracy rate in India is very low
compared to developed countries.Illiterate people hesitate to transact with bans. &o, this
impacts negatively onbans. *ut there is positive side of this as well i.e. illiterate people
trust more onbans to deposit their money, they do not have maret
information.%pportunities in stocs or mutual funds
1B. Technology plays a very important role in banFs internal control mechanisms as
wellas services offered by them. Through the use of technology new products and
serviceare introduced. It include technological aspects suchas (,! activity, automation,
technology incentives and the rate of technologicalchange. &ome of the technological
changes which brought radical changes in baningindustry are described below ; The
latest developments in terms of technology in computer and telecommunication have
encouraged the baners to change the concept of branch baning to anywhere baning.
The use of AT) and Internet baning has allowed Eanytime, anywhere baningF facilities
Automatic voice recorders now answer simple queries, currency accounting machines
maes the 'ob easier and self?service counters are now encouraged.
11. /redit card facility has encouraged an era of cashless society. The bans have
now started issuing smartcards or debit cards to be used for maing payments. These are
2B
also called as electronic purse.Q &ome of the bans have also started home baning
through telecommunicationfacilities and computer technology by using terminals
installed at customers homeand they can mae the balance inquiry, get the statement of
accounts, giveinstructions for fund transfers, etc.Q Today bans are also using &)& and
Internet as ma'or tool of promotions and giving great utility to its customers. +or example
&)& functions through simple text messages sent from your mobileQ Technology
advancement has changed the face of traditional baning systems. Technology
advancement has offer 23R< baning even giving faster and securedservice
12. Indian economy has registered a high growth for last three years and is expected
tomaintain robust growth rate as compare to other developed and developingcountries.
*aning Industry is directly related to the growth of the economy.The growth rate of
different industries were;Agriculture ; 1=.CHIndustry ; 2>.#H&ervices ; CC.2HQ It is great
news that today the service sector is contributing more than half of the Indian :!8. It
taes India one step closer to the developed economies of the world. 4arlier it was
agriculture which mainly contributed to the Indian :!8.Q This increases the avenues of
investment by the industrial sector . This wouldfurther increase the borrowings by the
industries leading to the baning IndustryQ In regards with the service sector , as the
income of the people will increase, lending and savings will increase leading to increased
business for the bans .
1#. There are two ma'or factors determining the legal aspects of the *aning Industry
;In 1232, the *aning (egulation Act was enacted which empowered the (eserve *an
ofIndia 0(*I1 Nto regulate, control, and inspect the bans in India.The *aning
(egulation Act also provided that no new ban or branch of an existingban could be
opened without a license from the (*I, and no two bans could havecommon directors
The (eserve *an of India 0(*I1 will intervene to smooth sharp movements in the rupee
and prevent a downward spiral in its value, but will balance this with the need to retain
reserves in the event of prolonged turbulence
13. The impressive performance of Indian bans as compared to other large
economies onalmost all parameters ? profitability, cost to income ratio, non?performing
asset 0@8A1levels, valuations, net interest margins, fee income ? the industry is on the
right side ofaverage among comparable economies.Q Transition from class baning to
mass baning and increased customer focus isdrastically changing the landscape of
Indian baning. 4xpansion of retail baning has alot of potential as retail assetsQ @ew
channels 0lie AT) and mobile phones1 allow transactions at a fractional cost.The study
exposes a possibility for the next decade. Investment in technology in theIndian baning
industry is about half of international averageQ /onsolidation in the baning industry has
remained crucial to ensuring technologicalprogress, excess retention capacity, emerging
opportunities and deregulation of variousfunctional and product
21
=,- )at factor pla1s an important role >ile opening an account?
TA*94 ?3.1
&ACTORS @A%E O& RESPON"ENTS
Advertisement 2B
&pecial %ffer #B
%perational &taff 1C
/onvincing 8ower of 4xecutive 2B
/redibility of *an 1C
@ of Respondents
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '0 #BH, after conducting the survey advertisement plays 2BH,
&pecial %ffer plays %perational &taff plays 1CH, /onvincing 8ower of 4xecutives plays
22
2BH and /redibility of *an 8lays 1CH role while opening an account in 5!+/ *an.
Thus study shows that special offer plays the most important role while opening an
account according to the respondents.
=.- )ic product does 1ou use te most?

TA*94?3.2
PRO"#CT NAME @A%E O& RESPON"ENTS
&aving ALc 33
/urrent ALc 22
+ixed !eposit 2>
!emat ALc =
@ of Respondents
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '
I this table shows that the people who are using &aving ALc are 33H, /urrent ALc are
22H, +ixed !eposit are 2>H and %ther are =H.
Thus the study shows that &aving ALc is the most preferred product of 5!+/
*an by respondents.
2#
=/- )ic t1pe of &"R is most popular?

TA*94?3.#
&" Sceme @A%E O& RESPON"ENTS
&imple +! #B
&uper &aver 3C
&weep in ALc 2C

@ of Respondents

08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '0 This Table shows that people are using simple +! are #BH,
&uper &aver are 3CH are &weep in ALc are 2CH.Thus the study shows that &uper &aver is
the most popular +! &cheme by the respondents )ost 8opular +! &cheme.
23
=A- Are 1ou a4le to maintain A=B of Rs- ,BBBB in saving account?

TABLE0A-A
84(/4@TA:4 %+ T54 (4&8%@!4@T&
Ies @o
CD ,D

Tis can 4e so>n 41 tis grap
H of (espondents
2PR!MAR* SO#RCE0 S#R+E*3
!NTERPRETAT!ON '
)ost of the customers were able to maintain average Puarterly *alance.
2C
=D. )ic of te follo>ing "irect Ban(ing Cannels 2"BC3 1ou avail
te most?
TA*94?3.C
!*/ +A/I9ITI4& HA:4 %+ T54 (4&8%@!4@T&
AT) AD
8hone *aning ,B
@et *aning .D
)obile *aning .B
84(/4@TA:4 %+ (4&8%@!4@T&
08(I)A(I &%$(/4? &$(A4I1
!NTERPRETAT!ON '
Thus study shows that AT) is the most preferred !irect *aning /hannel by the
respondents.
2>
=E -)at are te causes for not using an1 of te "irect Ban(ing
Cannels?
TA*94?3.>
/A$&4& HA:4 %+ T54 (4&8%@!4@T&
$nawareness #2
9ac of Gnowledge 32
+eel more secure while baning personally 1C
$nsatisfied C

84(/4@TA:4 %+ (4&8%@!4@T&
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '
This graph shows that the main cause for not using !*/ by respondents is lac of
nowledge.
2<
=F- Ho> >ill 1ou rate performance of director 4an(ing cannels 1ou
are using?
TA*94?3.<
84(+%()A@/4 %+ %*/ HA:4 %+ T54 (4&8%@!4@T&
*est 3B
:ood #B
+air 2B
8oor <
Aery 8oor #
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '
The graph shows that 3BH people says !*/ *est, #BH says !*/ is good, 2BH
says !*/ +air, <H says !*/ is poor and #H says !*/ is very poor in its performance.
2=
=C- Ho> >ould 1ou rate performance of H"&C Ban(?
TA*94?3.=
/A$&4& HA:4 %+ T54 (4&8%@!4@T&
Best AB
%ood /D
&air .B
Poor /
+er1 Poor .

84(/4@TA:4 %+ (4&8%@!4@T&
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '
This graph shows that 3BH people says 5!+/ is *est in its performance, #CH people
says 5!+/ is :ood, 2BH says it is +air, #H says it is poor and 2H people says it is
very poor in its performance.
22
=G- "id 1ou face an1 pro4lems >ile maintaining 1our account in
4an(?
Table no.? 3.2
Option @
*es .E
No FA
@ O& RESPON"ENTS
08(I)A(I &%$(/4?&$(A4I1
!NTERPRETAT!ON '
This :raph shows that 2>H people says they are facing the problem while maintaining
the Account and <3H people says they are not facing any of the problem while
maintaining the Account in 5!+/ *an.
#B
=,B- )1 do 1ou prefer H"&C Ban(?
TA*94?3.1B
+A/T%(& 84(/4@TA:4
*etter +acilities 2B
8lan #B
&elusen #B
Agents 1C
%thers C
08(I)A(I &%$(/4? &$(A4I1
!NTERPRETAT!ON '
The graph shows that 2BH respondents preferred 5!+/ *an because of *etter
+acilities, #BH because of *etter plan, #BH because of &elusen, 1CH because of agents
and CH because of other facilities.
&!N!"!N%
#1
&aving account is the most important product, next come +!, then current and
lastly !emat.
&uper saver scheme is the most popular scheme in +!.
Around =CH of respondents are able to maintain their AP* of (s. CBBB in saving
account.
AT) facility is mostly used among all direct baning channels as 3CH
respondents agreed to this.
9ac of nowledge about !*/ is the most important reason for not using !*/.
Also awareness about them is the reason !*/ performance is rated as
satisfactory.
5!+/ *anFs performance is rated as satisfactory.
4xecutives have satisfactory nowledge about products.
<3H of respondents faced no problem while maintaining their account.
5!+/ *an is preferred the most because of facilities , better plans , selusen.
#2
S#%%EST!ONS
8romotional efforts lie advertisement canopies increase in number of )areting
4xecutive, distribution of brochures, sponsoring various shows , functions
should be increased to increase awareness about 5!+/ *an and its products and
attract customers.
%n line trading of shares should be started for !emat ALc holders.
&ervice charges for non maintenance of AP* in saving account should be
decreased.
!emonstrate the use of !irect *aning /hannels 0!*/1 lie AT), phone
baning, net baning, +or account opening and delivery of welcome it, time
should be reduced.
The ban should provide regular and frequent calls to their profitable customers to
retain clientele , to mae them feel more comfortable and attached to the ban
0/()1.
5!+/ *an should also bring a new feature of // 0/ash /redit1 limit.
##
B!BL!O%RAPH*
)e4 sites ;
www.hdfcban.com
www.pnb.com
www.statebanofindia.com
finance.indiamart.com
rupya.com
tribuneindia.com
ingvs'aban.com
otamahindra.com
Annual reports or annual statement of 5!+/ ban
*rouchers of 5!+/ Ban(
<ournal '
International 'ournal of mareting research
International 'ournal of research in mareting
7ournal of business research
7ournal of business /onsumer research
7ournal of finance
7ournal of financial economics
7ournal of financial management , analysis
7ournal of general management
*usiness India
*usiness wee
*usiness today
*usiness world
Treasury )gt. challenges for India *aning Industry, I/+AI university C#>?#=.
#3
=#EST!ONNA!RE
@ame ; SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
Age ; SSSSSSSSSSSSSSSSSSSS &ex SSSSSSSSSSSSSSSSSS
%ccupation ; SSSSSSSSSSSSSSSSSSSSS 8hone @o. ; SSSSSSSSSSSSS
,- )ic factor pla1s an important role >ile opening an account?
Advertisement &pecial %ffers
/onvincing power of 4xecutives
%perational &taff ! /redibility of ban
.- )ic product do 1ou use te most?
&aving Account %thers
/urrent Account +!
/- )ic &" sceme is mot popular?
+! &uper saver ALc
&weep in account
A- Are 1ou a4le to maintain A=B of Rs- ,BBBB in savings account?
Ies @o

D- )ic of te follo>ing facilities "irect 4an(ing Cannels 2"BC3 1ou avail
te most?
AT) @et *aning
)obile *aning 8hone *aning
#C
E- )at are te causes for non using an1 of te "irect Ban(ing Cannels?
$nawareness $nsatisfied
9ac of nowledge about use %ther
F- Ho> >ill 1ou rate performance of direct 4an(ing cannels 1ou are using?
*est :ood +air
8oor Aery 8oor
C- Ho> >ould 1ou rate performance of H"&C Ban(?
*est :ood +air
8oor Aery 8oor
G- "id 1ou face an1 pro4lems >ile maintaining 1our account at 4an(? !f 91es;
please mention >at pro4lems 1ou faced-
Ies SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
@o SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
,B- )1 do 1ou prefer H"&C Ban(?
*etter &ervices Attractive 8lans
%ther *etter (eturns Agent Gnown
,,- Suggestions '
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
Place ' HHHHHHHHHHHHHHHHH
"ate ' HHHHHHHHHHHHHHHHHH
#>
CONCL#S!ON
#CH of respondents carne to now about ban through friends while 3BH
through mareting executive 1BH through ads and exhibition each.
&pecial offer with the products played an important role while opening an
account as suggested by #BH respondents are credibility of ban plays important
role as suggested by another 1CH of respondents agreed while 1CH of
respondents agreed operational staff and convincing power of executives play
important role as 2BH.
&aving account is the most important product, next come +!, then current and
lastly !emat.
&uper saver scheme is the most popular scheme in +!.
Around =CH of respondents are able to maintain their AP* of (s. CBBB in saving
account.
AT) facility is mostly used among all direct baning channels as 3CH
respondents agreed to this.
9ac of nowledge about !*/ is the most important reason for not using !*/.
Also awareness about them is the reason !*/ performance is rated as
satisfactory.
5!+/ *anFs performance is rated as satisfactory.
4xecutives have satisfactory nowledge about products.
<3H of respondents faced no problem while maintaining their account.
5!+/ *an is preferred the most because of facilities , better plans , selusen.
#<
#=