1

PROJECT FINAL REPORT

ON

BANKING

BY

POONAM

AT
 2

Summer Internship Project

PROJECT TITLE

A project report on

COMPANY GUIDE FACULTY GUIDE

================ ==============
Mr. Manish Panchal Prof. Pragna Kaul

Branch Manager IBMR Ahmedabad

Kapadwanj.
 3

Prepared by :

Jigar J Soni

Roll no. 5 , Div – A

IBMR _Ahmedabad
Year – 2008/09
 4

Acknowledgements

If words are considered to be signs of gratitude then let these words

Convey the very same My sincere gratitude to HDFC BANK for

providing me with an opportunity to work with BANK and giving

necessary directions on doing this project to the best of my abilities.

I am highly indebted to Mr. Manish Panchal., Branch Manager and

company project guide, who has provided me with the necessary

information and also for the support extended out to me in the

completion of this report and his valuable suggestion and comments

on bringing out this report in the best way possible.

I also thank Prof. Pragna Kaul, IBMR_Ahmedabad, who has

sincerely supported me with the valuable insights into the completion

of this project.

I am grateful to all faculty members of IBMR_Ahmedabad and my

friends who have helped me in the successful completion of this

project.
5
 6

CONTENTS

Sr. No. Subject Covered Page No.

1 Introduction of banking sector 6-7

2 Introduction of the Organization(HDFC Bank) 8-9

3 Title of the Report 10

4 Objective of the study 11-12

5 Type of Reserch 13-15

6 Sample Size and method of selecting Sample 16-19

7 Scope of Study 20-23

8 Limitation of Study 24-25

9 Facts and Findings 26-31

10 Analysis and Interpretation 32-33

11 Swot analysis(HDFC)(Report) 34-41

12 Conclusion 42-48
 7

13 Recommendation and Suggestions 49-55

14 Appendix

15 Biblography

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural Bank

 8

Banks Banks in India

(28) (27) (29) (102)

• Nationalized • Old Private
Bank Banks
• Other Public • New Private
Sector Banks Banks
(IDBI)
• SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we more concerned about private sector banks and competition

among them. Today, there are 27 private sector banks in the banking
Sector: 19 old private sector banks and 8 new private sector banks.
These new banks have brought in state-of-the-art technology and
Aggressively marketed their products. The Public sector banks are
Facing a stiff competition from the new private sector banks. The
banks which have been setup in the 1990s under the guidelines of the
 9

Narasimham Committee are referred to as NEW PRIVATE SECTOR

BANKS.

New Private Sector Banks

• Superior Financial Services
• Designed Innovative Products
• Tapped new markets
• Accessed Low cost NRI funds
• Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets

expected to reach US$1 trillion by 2010. An expanding economy,
middle class, and technological innovations are all contributing to this
growth.The country’s middle class accounts for over 320 million
people. In correlation with the growth of the economy, rising income
levels, increased standard of living, and affordability of banking products
are promising factors for continued expansion.
 10

The Indian banking Industry is in the middle of an IT revolution,

Focusing on the expansion of retail and rural banking.

Players are becoming increasingly customer - centric in their

approach, which has resulted in innovative methods of offering new
banking products and services. Banks are now realizing the
importance of being a big player and are beginning to focus their
attention on mergers and acquisitions to take advantage of
economies of scale and/or comply with Basel II regulation.“Indian
banking industry assets are expected to reach US$1 trillion by 2010 and
are poised to receive a greater infusion of foreign capital,” says Prathima
Rajan, analyst in Celent's banking group and author of the report. “The
banking industry should focus on having a small number of large
players that can compete globally rather than havinga large number of
fragmented players."
 11

WE UNDERSTAND YOUR WORLD

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part
of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January
1995.

HDFC is India's premier housing finance company and enjoys an

impeccable track record in India as well as in international markets.
Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over
amillion dwelling units.
 12

HDFC has developed significant expertise in retail mortgage loans to

different market segments and also has a large corporate client base
for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base
and unique consumer franchise, HDFC as ideally positioned to promote a
bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission : to be a “

World Class Indian Bank.” We realized that only a single minded focus
on product quality and service excellence would help us get there.
Today, we are proud to say that we are well on our way towards that
goal.
 13

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

• Auto Loan • Saving a/c • Mutual Fund

• Loan Against • Current a/c • Bonds
Security • Fixed deposit • Knowledge Centre
• Loan Against • Demat a/c • Insurance
Property • Safe Deposit • General and Health
• Personal loan Lockers Insurance
• Credit card • Equity and Derivatives
• 2-wheeler loan • Mudra Gold Bar
• Commercial
vehicles finance
• Home loans
• Retail business
banking
• Tractor loan
• Working Capital
Finance
 14

• Construction
Equipment
Finance
• Health Care
Finance
• Education Loan
• Gold Loan

Cards Payment Services Access To Bank

• Credit Card • NetSafe • NetBanking

• Debit Card • Merchant • OneView
• Prepaid Card • Prepaid Refill • InstaAlert
• Billpay MobileBanking
• Visa Billpay • ATM

• InstaPay • Phone Banking

-------------------------------- • Email Statements
• DirectPay
Forex Services
• VisaMoney • Branch Network
--------------------------------
Transfer
• Product &
• e–Monies
Services
Electronic Funds
• Trade Services
Transfer
• Forex service
• Online Payment
Branch Locater
of Direct Tax
• RBI Guidelines

WHOLESALE BANKING
 15

Corporate Small and Medium Financial Institutions and

Enterprises Trusts

• Funded • Funded Services BANKS

Services • Non Funded Services • Clearing Sub-
• Non Funded • Specialized Services Membership
Services • Value added services • RTGS – submembership
• Value Added • Internet Banking • Fund Transfer
Services • ATM Tie-ups
• Internet • Corporate Salary a/c
Banking • Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts
 16

NRI SERVICES

Accounts & Deposits Remittances

• Rupee Saving a/c • North America

• Rupee Current a/c • UK
• Rupee Fixed Deposits • Europe
• Foreign Currency Deposits • South East Asia
• Accounts for Returning Indians • Middle East
• Africa
• Others
Quick remit
IndiaLink
Cheque LockBox
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

• Mutual Funds • Home Loans

• Insurance • Loans Against Securities
• Private Banking • Loans Against Deposits
• Portfolio Investment Scheme • Gold Credit Card

Payment Services Access To Bank

 17

• NetSafe • NetBanking
• BillPay • OneView
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • PhoneBanking
• Online Donation • Email Statements
• Branch Network
•

MONEY EARNED-MONEY SPENT

HDFC BANK earned from the ‘Interest from Advances’ 51.14 % ,‘Interest from Investment’
27.12 %, bank earned commission exchange and brokerage of 15.25 %. These are the major
earning sources of the bank. Bank also earned from the Forex and Derivatives and some
other Interest Income.Bank spent 39.75 % on Interest Expense, 30.27% on Operating
Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend, Loss on
Investment , Tax. As we discuss above that balancing is must between these two for every
 18

organization especially in the era of globalization where there are stiff competition among
various market players.

RECENT DEVELOPMENT

The Reserve Bank of India has approved the scheme of amalgamation of Centurion
Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.All the branches
of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May
23, 2008. With RBI’s approval, all requisite statutory and regulatory approvals for
themerger have been obtained.
 19

The combined entity would have a nationwide network of 1167 branches; a strong
deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores.
The balance sheet size of the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The
shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC
Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of Punjab
Limited This is subject to receipt of Approvals from the Reserve Bank of India, stock
exchanges and Other requisite statutory and regulatory authorities. The shareholders Also
accorded their consent to issue equity shares and/or warrants convertible into equity
shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group
companies on preferential basis, subject to final regulatory approvals in this regard.
The Shareholders of the Bank have also approved an increase in the authorized capital
from Rs.450 crores to Rs.550 crores.

ACHIEVEMENT IN 2007

Business Today-Monitor
Group survey
One of India's "Most Innovative Companies"

Financial Express-Ernst
 20

& Young Award Best Bank Award in the Private Sector category

Global HR Excellence 'Employer Brand of the Year 2007 -2008' Award - First Runner up,
Awards - Asia Pacific & many more
HRM Congress:

Business Today 'Best Bank' Award

Dun & Bradstreet –

American Express
Corporate Best Bank 'Corporate Best Bank' Award
Award 2007
The Bombay Stock
Exchange and Nasscom
Foundation's Business 'Best Corporate Social Responsibility Practice' Award
for Social Responsibility
Awards 2007
Outlook Money & NDTV Best Bank Award in the Private sector category.
Profit

The Asian Banker Best Retail Bank in India

Excellence in Retail
Financial Services
Awards

Asian Banker HDFC BANK Managing Director Aditya Puri wins the Leadership
Achievement Award for India

STANDARD LIFE INSURANCE :-

 21

The Standard Life Assurance Company ("Standard Life") was established in 1825and the first
Standard Life Assurance Company Act was passed by Parliament in 1832.Standard Life was
reincorporated as a mutual assurance company in 1925.Standard Life is Europe's largest
mutual life assurance company. Standard Life, which has been in the life insurance business
for the past 182 years, is a modern company surviving quite a few changes since selling its
first policy in 1825. The company expanded in the 19th century from its original din burgh
premises, opening offices in other towns and acquiring other similar businesses. Standard Life
currently has assets exceeding over ￡70 billion under its management and has the distinction
of being accorded "AAA" rating consequently for the past six years by Standard & Poor.

INCORPORATION OF HDFC STANDARD LIFE INSURANCE CO. LTD:-

The company was incorporated on 14th August 2000 under the name of HDFC
Standard Life Insurance Company Limited.

Their ambition from the beginning was to be the first private company to re-enter the life
insurance market in India. On the 23rd of October 2000, this ambition was realized
when HDFC Standard Life was the first life company to be granted a certificate of
Registration
.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard
Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is
the maximum investment allowed under current regulations. HDFC and Standard Life
have a long and close relationship built upon shared values and trust. The ambition of
HDFC Standard Life is to mirror the success of the parent companies and be the
yardstick by which all other insurance companies in India are measured.

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life
insurance companies, which offers a range of individual and group insurance solutions.
It is a joint venture between Housing Development Finance Corporation Limited (HDFC
Ltd.) India’s leading housing finance institution and one of the subsidiaries of Standard
Life plc, leading providers of financial services in the United Kingdom

.
Both the promoters are well known for their ethical dealings and financial strength and
are thus committed to being a long-term player in the life insurance industry.

RESEARCH OBJECTIVES & SCOPE OF RESEARCH PROJECT:-

PROBLEM DEFINATION:
 22

Recruit consultants were with good background human being and through rigorous process of
recruitment but still not able to perform up to the expectation level of company, HR is not able
to short out the problem why the performance is not coming even after giving the full marketing
support.

OBJECTIVES OF RESEARCH PROJECT:-

PRIMARY OBJECTIVES

 To recruit more and more Financial Consultant and to promote the

benefits those are provided by HDFC Standard Life to its Financial
Consultants.

 To find the different way of recruiting and selecting the Financial

Consultants who can produce more and fruitful results.

 To study awareness of the HDFC Standard life insurance.

SECONDARY OBJECTIVES:

 To determine the need and purpose of Financial Consultant.

 To understand the deciding criteria for people to become Financial

Consultant.

 To collect and analysis the information of prospect candidates in order to

make them appear in front of management so that they can be selected as
Financial consultant.

 To offer suggestions based upon the findings.

TYPE OF RESEARCH:-
Preliminary Investigation:

In which data on the situation surrounding the problems shall be gathered to arrive at
 23

• The correct definition of the problem.

• An understanding of its environment.

Exploratory Study:

To determine the approximate area where the problem lies.

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the problem. By
analyzing the secondary data, the study aim is to explore the short comings of the present
system and primary data will help to validate the analysis of secondary data besides on
unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration.Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct
answers. In questionnaires open ended and closed ended, both the types of questions has
been used.

COLLECTION OF DATA:

1: Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines, management books, preserved
information in the companies database and website of the company.

2: Primary data:
All the Chartered Accountants, Tax Consultants, Insurance Agents, Auto loan providers were
personally visited and interviewed. They were the main source of Primary data. The method of
collection of primary data was direct personal interview through a structured questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.
·
 24

Sampling Units:

Chartered Accountants, Tax Consultants, Lawyers, Business Man,

Professionals and House Wives of Jaipur

Sample Technique:
Random Sampling.
· Research Instrument:
Structured Questionnaire.
· Contact Method:
Personal Interview.

SAMPLE SIZE:

My sample size for this project was 200 respondents. Since it was not possible to cover the
whole universe in the available time period, it was necessary for me to take a sample size of
200 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary data
collection will based on personal interview. I have prepared the questionnaire according to the
necessity of the data to be collected.

RESEARCH LIMITATIONS:
 25

• It was not possible to understand thoroughly about the different marketing aspects of
the Financial Consultant within 60 days.

• As stipend, money was not given it was difficult to continue the project work.

• All the work was limited in some limited areas of Jaipur so the findings should not be
generalized.

· The area of research was Jaipur; It was too vast an area to cover within 60 days.

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1.Your Age?
TABLE
Sr. No. Category No. of Percentage
Respondents
1 18-23 years 40 20
2 24-29 years 70 35
3 30-35 years 60 30
4 35 & above 30 15
Total 200 100

SWOT ANALYSIS

STRENGTH WEAKNESSES

• Right strategy for the right

• Some gaps in range for certain
 26

products. sectors.

• Superior customer service • Customer service staff need

vs. competitors. training.

• Great Brand Image • Processes and systems, etc

• Products have required • Management cover insufficient.

accreditations. • Sectoral growth is

• High degree of customer constrained by low

satisfaction. unemployment levels and

competition for staff
• Good place to work

• Lower response time with

efficient and effective
service.

• Dedicated workforce aiming

at making a long-term
career in
the field.
 27

Opportunities Threats

• Profit margins will be good. • Legislation could impact.

• Could extend to overseas • Great risk involved

broadly. • Very high competition prevailing
• New specialist applications. in the industry.

• Could seek better customer • Vulnerable to reactive

deals.

• Fast-track career development attack by major competitors

opportunities on an industry- • Lack of infrastructure in rural

wide basis. areas could constrain

• An applied research centre to investment.

create opportunities for • High volume/low cost market is

developing techniques to intensely competitive.
provide added-value services.