ACKNOWLEDGEMENT

It is always acknowledged so precious a debt as that of

learning. It is the only debt that is difficult to reply through
gratitude. It is indeed a great opportunity for me to pen down a
few lines about people to whom my acknowledgement is due.
It is my deepest sense of gratitude that I wish place on record
my sincere thanks to Dr. Amit Gupta (Project guide) for
providing me this opportunity to complete my project work in
Marketing Management.
I would also like to thanks all those who could not find a
separate name but has help me directly or indirectly.
Last but not the least I would like to thanks my faculty
members at Centurion Institute of Professional Studies who
gave me the useful tips and opened a whole New World of
Knowledge for me.

Lastly, I would like to thank all the

members of HDFC Bank and my colleagues who gave me

fruitful information to finish my project.

EXECUTIVE SUMMARY

In accordance with the resource project the topic chosen

identify the corporate target market (current account) and
Costumers perception of in

JAIPUR city.

In this research the beginning of the project is the assistance of

various tools, techniques and information belong to the subject.
This research has been identified that there are no dependent
and in depended various which effecting the topic and problem
relatively.
The problem identified the corporate target market (current
account) and Costumers perception in JAIPUR city and effect a
particular consumer has been described in this research..
Hence to observe the problem related response according to
the questionnaire many of the person queered.
It is close ended question asked so the respondent field for the
cognizance which is beneficial for me and company.

OBJECTIVE
Different objective behind conducting this projecto Identifying Customer satisfactions.
o Customer Orientation towards Features available in HDFC
Bank Current Account products.
o Listing of the product preferences in Current Account.
o Recommendation on Market potential For HDFC Bank in
Current Account.

Content table

S. No.

Page No.

Contents
Introduction of project..

Banking

introduction
Company

14-36

profile..
List of company products

37-47

Research

48

objective
Research

49-53

Methodology.
Data
collection
&

Data 54-55

analysis
Findings
.

sector 7-13

56-63

Conclusion

10

.
Recommendation

11

Limitation

12

study
Annexure

and

64

Suggestion 65-66
of 67
68

Questionnaire
.
Bibliography

INTRODUCTION
The project was carried out for understanding the customer
behavior in Current Account of HDFC Bank JAIPUR branch
and its market potential.HDFC Bank was established in the
year 1994, they are old player in banking sector, The bank
has two principle client segments customer and asset
management.The bank follows values such as Integrity,
teamwork, respect, professionalism, & Mission. The segment

of bank we are considering here is- Corporate banking. The

product out of which have chosen for research is Current
Accounts.This research helps us in finding out the customers
view regarding the product and Services offered by the
HDFC bank and awareness by promotion and also identifying
the the market potential of the product offered by the HDFC
bank.
ABOUT THE PROJECT
The project was carried out in Jaipur city with an objective of
knowing satisfaction
level of customer with bank services and do customers are
aware about the different types of
Current

Account

with

various

schemes,

Services

and

different offers provide by the bank. The total sample size

taken was one thousand (100) from various market of the
Jaipur. The research shows that the market potential for the
bank is very good and so many customers are not aware of
the services provided by the bank which are not provided by
other banks. On the other hand we have also the existing
customers of HDFC Bank who are satisfied with the working
style of bank, but want continuous updates about the new

service schemes and other products of bank. They want that

bank should do promotional activity as Advertising. So that
they can be updated while seating at home. The researcher
used the method of questionnaire to know all feedback
which is listed above.

Banking sector profile

Banking in India originated in the first decade of 18th century.
The first banks were The General Bank of India, which started in
1786, and Bank of Hindustan, both of which are now defunct.
The oldest bank in existence in India is the State Bank of India,
which originated in the "The Bank of Bengal" in Calcutta in June
1806. This was one of the three presidency banks, the other
two being the Bank of Bombay and the Bank of Madras. The
presidency banks were established under charters from the
British East India Company. They merged in 1925 to form the
Imperial Bank of India, which, upon India's independence,
became the State Bank of India. For many years the Presidency
banks acted as quasi-central banks, as did their successors.
The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After India's

independence in 1947, the Reserve Bank was nationalized and

given broader powers.
A couple of decades later, foreign banks such as Credit
Lyonnais started their Calcutta operations in the 1850s. At that
point of time, Calcutta was the most active trading port, mainly
due to the trade of the British Empire, and due to which
banking activity took roots there and prospered.
EARLY HISTORY

The first fully Indian owned bank was the Allahabad Bank,
established in 1865. However, at the end of late-18th century,
there were hardly any banks in India in the modern sense of the
term. At the time of the American Civil War, a void was created
as the supply of cotton to Lancashire stopped from the
Americas. Some banks were opened at that time to finance
industry, including speculative trading in cotton. With large
exposure to speculative ventures, most of the banks opened in
India during that period failed. The depositors lost money and
lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans

for next several decades until the beginning of the 20th

century.

Structure of the organized banking sector in India. Numbers of

banks are in brackets.

At this time, the Indian economy was passing through a relative

period of stability. Around five decades have elapsed since the
India's First war of Independence, and the social, industrial and
other infrastructure have developed. At that time there were
very small banks operated by Indians, and most of them were
owned and operated by particular communities.
The presidency banks dominated banking in India. There were
also some exchange banks and a number of Indian joint stock
banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock
banks

were

generally

under

capitalized

and

lacked

the

experience and maturity to compete with the presidency and

exchange banks. This segmentation let Lord Curzon to observe,
"In respect of banking it seems we are behind the times. We
are like some old fashioned sailing ship, divided by solid
wooden

bulkheads

compartments."

into

separate

and

cumbersome

By the 1900s, the market expanded with the establishment of

banks such as Punjab National Bank, in 1895 in Lahore and
Bank of India, in 1906, in Mumbai - both of which were founded
under private ownership. Punjab National Bank is the first
Swadeshi Bank founded by the leaders like Lala Lajpat Rai,
Sardar Dyal Singh Majithia. The Swadeshi movement in
particular inspired local businessmen and political figures to
found banks of and for the Indian community. A number of
banks established then have survived to the present such as
Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.

FROM WORLD WAR I TO INDEPENDENCE

The period during the First World War (1914-1918) through the
end of the Second World War (1939-1945), and two years
thereafter until the independence of India were challenging for
Indian banking. The years of the First World War were turbulent,
and it took its toll with banks simply collapsing despite the
Indian economy gaining indirect boost due to war-related

economic activities. At least 94 banks in India failed between

1913 and 1918 as indicated in the following table:

Number

of
Authorized capital Paid-up

Capital

Years banks
(Rs. Lakhs)

(Rs. Lakhs)

1913 12

274

35

1914 42

710

109

1915 11

56

1916 13

231

1917 9

76

25

1918 7

209

that failed

POST-INDEPENDENCE

The

partition

of

India

in

1947

adversely

impacted the

economies of Punjab and West Bengal, paralyzing banking

activities for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The

Government of India initiated measures to play an active role in

the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a
mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking
and finance. The major steps to regulate banking included:
In 1948, the Reserve Bank of India, India's central banking
authority, was nationalized, and it became an institution
owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) "to regulate,
control, and inspect the banks in India."
The Banking Regulation Act also provided that no new
bank or branch of an existing bank may be opened
without a license from the RBI, and no two banks could
have common directors.
However, despite these provisions, control and regulations,
banks in India except the State Bank of India, continued to be
owned and operated by private persons. This changed with the
nationalization of major banks in India on 19th July, 1969.

NATIONALISATION

By the 1960s, the Indian banking industry has become an

important tool to facilitate the development of the Indian
economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to
nationalize the banking industry. Indira Gandhi, the-then Prime
Minister of India expressed the intention of the GOI in the
annual conference of the All India Congress Meeting in a paper
entitled "Stray thoughts on Bank Nationalisation." The paper
was received with positive enthusiasm. Thereafter, her move
was swift and sudden, and the GOI issued an ordinance and
nationalised the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national
leader of India, described the step as a "masterstroke of
political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies
(Acquition and Transfer of Undertaking) Bill, and it received the
presidential approval on 9th August, 1969.

A second dose of nationalisation of 6 more commercial banks

followed in 1980. The stated reason for the nationalisation was
to give the government more control of credit delivery. With the
second dose of nationalisation, the GOI controlled around 91%
of the banking business of India. Later on, in the year 1993, one
of the nationalised banks, namely, New Bank of India was
merged with Punjab National Bank. It was the first and only
merger of a Nationalised Bank into a Nationalised Bank,
resulting in the reducing the number of Nationalised Banks
from 20 to 19.
After this, until the 1990s, the nationalised banks grew at a
pace of around 4%, closer to the average growth rate of the
Indian economy.
LIBERALISATION
In the early 1990s the then Narsimha Rao government
embarked on a policy of liberalisation and gave licences to a
small number of private banks, which came to be known as
New Generation tech-savvy banks, which included banks such
as Global Trust Bank (the first of such new generation banks to
be set up)which later amalgamated with Oriental Bank of

Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bank

and HDFC Bank. This move, along with the rapid growth in the
economy of India, kickstarted the banking sector in India, which
has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private
banks and foreign banks.
The next stage for the Indian banking has been setup with the
proposed relaxation in the norms for Foreign Direct Investment,
where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has
gone up to 49% with some restrictions.
The new policy shook the Banking sector in India completely.
Bankers, till this time, were used to the 4-6-4 method (Borrow
at 4%;Lend at 6%;Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of
working for traditional banks.All this led to the retail boom in
India. People not just demanded more from their banks but also
received more.

CURRENT SITUATION

Currently (2007), banking in India is generally fairly mature in

terms of supply, product range and reach-even though reach in
rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong
and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India
is an autonomous body, with minimal pressure from the
government. The stated policy of the Bank on the Indian Rupee
is to manage volatility but without any fixed exchange rate-and
this has mostly been true.
With the growth in the Indian economy expected to be strong
for quite some time-especially in its services sector-the demand
for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also
expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg
Pincus to increase its stake in Kotak Mahindra Bank (a private
sector bank) to 10%. This is the first time an investor has been
allowed to hold more than 5% in a private sector bank since the

RBI announced norms in 2005 that any stake exceeding 5% in

the private sector banks would need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 27
public sector banks (that is with the Government of India
holding a stake)after merger of New Bank of India in Punjab
National Bank in 1993, 29 private banks (these do not have
government stake; they may be publicly listed and traded on
stock exchanges) and 31 foreign banks. They have a combined
network of over 53,000 branches and 17,000 ATMs. According
to a report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percent of total assets of the banking
industry, with the private and foreign banks holding 18.2% and
6.5% respectively
Introduction of many more products and facilities in the
banking sector in its reforms measure. In 1991, under the
chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM

stations. Efforts are being put to give a satisfactory service to
customers. Phone banking and net banking is introduced. The

entire system became more convenient and swift. Time is given

more importance than money.

COMPANY PROFILE

COMPLETE NAME OF THE COMPANY

The Housing Development Finance Corporation Limited

(HDFC Bank Ltd.)

BUSINESS OBJECTIVE

The

primary

residential
provision

housing
of

objective
stock

housing

in

of

HDFC

the

finance

in

is

country
a

to

enhance

through

systematic

the
and

professional manner, and to promote home ownership.

Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector
with the overall domestic financial markets.

ORGANISATIONAL GOALS
HDFC's main goals are to
(a)

Develop

close

relationships

with

individual

households,
(b)

Maintain its position as the premier

housing

finance institution in the country,

(c) Transform ideas into viable and creative solutions,
(d) Provide consistently high returns to shareholders,
and

(e) To grow through diversification by leveraging off

the existing client base

SLOGAN
We Understand Your World

HISTORICAL DEVELOPMENT OF THE COMPANYThe 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 liberalisation
of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered offi ce in Mumbai, India. HDFC
Bank commenced operations as a Scheduled Commercial
Bank in January 1995.

BUSINESS FOCUS

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

consistent

and

healthy

growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a
million dwelling units.