SUMMER TRAINING PROJECT REPORT

ON
TO STUDY ON COMPETITION ANALYSIS OF CURRENT
ACCOUNT,
CARRIED OUT AT

Submitted to :Jiwaji university , Gwalior

For the partial fulfillment of the

Master of Business Administration
(Batch 2010-12)
Submitted by :Kartar singh yadav
Mba 3rd sem

NRI Institute of Technology and Management

Gwalior

DECLARATION
I Kartar singh yadav hereby declare that the summer training project report
Entitled

TO

STUDY ON

COMPETITION

ANALYSIS

OF

CURRENT ACCOUNT, has been prepared as part of the completed of

the degree of an MBA Gwalior NRI Institute of Technology and
Management Gwalior and it is beside on original work as will be used
academic purpose

DATE :

KARTAR SINGH YADAV

PLACE:

MBA 3rd SEM

CERTIFICATE
This is to certify that Mr. KARTAR SINGH YADAV student of MBA 3rd SEM
summer training project report Entitled TO STUDY ON COMPETITION
ANALYSIS OF CURRENT ACCOUNT

programmed has completed under my

guidance.

DATE:

PLACE:

..

ACKNOWLEDGEMENT

The summer training in HDFC Bank has been a truly remarkable experience. The experience
gained during 8 weeks of training period have been quite enriching and the intensive
exposure to market environment would prove beneficial in the long run as well as in the
outlet of planning, building and shaping my career in future.
It gives me immense pleasure in acknowledging the valuable guidance extended to me by
various person of HDFC in successful completion of this project
I sincerely thank Mr. Rahul Mantri (Manager- Retail Banking), Pune for their kind
cooperation

for

completing

this

project.

am

very

thankful

to

Professor my internal project guide for having equipped me with

the skills which contributed a great deal in the successful completion of the project.
At last, but not the least, I would like to thank the dealers and customers to cooperate with
me in giving me through and valuable information for the project.

DATE :
PLACE:

KARTAR SINGH YADAV

MBA 3rd SEM

INDEX
Reno.

Chapters Name

Page no.

ACKNOWLEDGEMENT
2

OBJECTIVE OF THE STUDY

12

3.

COMPANY PROFILE

13

4.

ORGANISATIONAL STRUCTURE

5.

PRODUCT PROFILE

18

6.

LITERATURE REVIEW

32

7.

RESEARCH METHODOLOGY

37

8.

DATA ANALYSIS,INTERPRETATION & TABULATION

39

9.

OBSERVATION & FINDINGS

63

10.

CONCLUSIONS

65

11.

SUGGESTIONS & RECOMMENDATION

67

12.

BIBLIOGRAPHY

69

13.

ANNEXURE

70

CHAPTER I

OBJECTIVE OF THE STUDY

To know the services of the other competitor bank in pune.

To know the charges various banks are charging for their services.

Its Comparison with different competitor bank so that it can have a rough idea of its
position in the market.

To know the methods of banking.

To know the banking and financial terms used in day-to-day life and which plays an
important role in our life.

NEED OF THE STUDY

For Bank: The study is useful to HDFC Bank because with the use of the report it can compare itself
with other banks and also do some modifications in its services and charges so as to compete
with the competitors in both short as well as long run.

For Student: The study is useful for student as he gains knowledge about various services of bank, the
working of the bank and also about the competitors of the bank, which plays an important
role in the marketing and implementation of the strategy.

SCOPE OF THE STUDY

The scope of study is to understand the problems faced by the bank while maintaining
the market position among the competitors. With the help of this project we can introduce
new facilities and we can explore new segments of customers with the analytical conclusion
of this project. We can better understand what our weaknesses are and what our strengths are;
so that we can explore the strengths and remove weaknesses.

CHAPTER II

INTRODUCTION
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 RBIs 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 as a scheduled Commercial
Bank in January 1995.

Promoter
HDFC Bank is Indias 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 a
market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling
units. 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 was ideally positioned bank in the Indian
environment.

Business Focus
HDFC Banks mission is to be a world class Indian Bank. The banks aim is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services in the segment that the Bank operates in and to achieve healthy growth in
profitability, consistent with the banks risk appetite.

Capital Structure
The authorized capital of HDFC Bank is Rs.450crore (Rs.45 Billion). The paid up capital is
Rs.282crore (Rs.28.2 Billion). The HDFC group holds 24.4% of the banks equity while
about 13.2% of the equity is held by the depository in respect of the banks issue of American
Depository shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and

Indocean Financial Holding Ltd, Mauritius (IFHL), both fund advised by J. P. Morgan
Partner, formerly Chase Capital Partners, together hold about 5.5% of the banks equity.

Times Bank Amalgamation

As a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with
HDFC Bank Ltd., effective February 26,2000.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over branches spread over cities across the country. All branches are linked on an online realtime basis. Customers in 80 locations are also serviced through Phone Banking. The Banks
expansion plans take into account the need to have presence in all major industrial and
commercial centers where its corporate customer are located as well as the need to build a
strong retail customer base for both deposits and loan products.

Management
Mr.Jagdish Kapoor took over as the banks Chairman in July 2001. Prior to this Mr. Kapoor
was the Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr.Aditya Puri has been a professional banker for over 25 years and
before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia.
The Banks board of Director is composed of eminent individual with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the Board.

Technology
HDFC Bank operates in a highly automated environment in term of information technology
and communication systems. All the banks branches have connectivity, which enables the
bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines
(ATMs).

Business Profile
HDFC bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional branch banking on the retail side. The bank
has three key business areas: -

A) Wholesale Banking Services:The banks target market is primarily large. It covers blue-chips manufacturing companies in
the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these
corporate, the bank provides a wide range of commercial and transactional banking services,
included working capital finance, trade services, transactional services, cash management,
etc.

B) Retail Banking Services:The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one step window for all
his/her banking requirements. The products are backed by world-class services and delivered
to the customers through the growing branch network, as well as, through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

C) Treasury Operations:Within this business, the bank has three main product areas

Foreign Exchange and Derivatives,

Loan Currency Money Market &

Debt Securities and Equities.

With the liberalization of the financial market in India, corporate need more sophisticated risk
management information, advice and product structure.

Rating
HDFC Bank has its deposit programs rated by two rating agencies

Credit Analysis & Research Limited (CARE)

Fitch Rating India Private Limited.

Corporate government Rating

The Bank was one of the first fort companies which subjected itself to corporate governance
and Value Creation (GVC) rating by the rating agency, The Credit Rating Information
Services of India Limited (CRISIL).

Awards and Accolades

Over the years, HDFC Bank has received recognition and awards from various leading
organization and publication, both national and international. HDFC Bank was selected as the
Best Bank-India 1999, Best Domestic Bank India 2000, Best Bank India 2001,
Best Bank 2002 by Euro money, Best Domestic Commercial Bank India 1999, Best
Domestic Commercial Bank 2000, Best Domestic Commercial Bank India 2001and
Best Domestic Commercial Bank India 1999, Best Local bank In India 2002, Best
Local bank In India 2003 by Finance Asia. In the October 2000 issue, Forbes Global
selected HDFC Bank amongst the top 20 in the Forbes listing of the worlds best small
companies. Closer home, HDFC Bank was selected for The Economic Times Award
Corporate Excellence for Emerging Company of the Year 2000-01 and as Business Indias
Best Bank for the year 2000. For its use of information technology the bank has been
recognized as a Computer world honors Laureate and awarded the 21 st Century
Achievement Award in 2002 for the Finance, Insurance & real Estate Category by computer
world, Inc., USA. HDFC bank was awarded the Best IT User award 2003 (Category:
Banking) as per of the IT User Awards 2003 conferred by economictimes.com &Nasscom.

HDFC Bank is one of Forbes Global "Best Under a Billion

In its issue dated October 27th, 2003, Forbes Global magazine has named HDFC Bank as
one of the "Best under a Billion, 200 Best Small Companies for 2003". These 200 successful
companies outside the US were selected from some 19,000 companies from Asia & Europe
with annual sales below US$1 billion, based on profitability, earnings and sales growth.
Forbes Global also talked to fund managers, analysts and industry watchers to spot these 200
best companies with brief operating histories but promising futures.

HDFC Bank named Best Bank in India for 2003

HDFC Bank, one of Indias leading private sector banks, has been named the Best Bank in
India for the year 2003 in a survey conducted by KPMG and leading business magazine,
Business Today.

CHAPTER III

THE ORGANIZATION:
HDFC Bank 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 from Housing Development
Finance Corporation Limited (Bank), in 1994 during the period of liberalization of the
banking sector in India.HDFC India was incorporated in August 1994 in the name of HDFC
Bank Limited.HDFC India commenced operations as a Scheduled Commercial Bank in
January 1995.
HDFC India deals in varieties of products like home loan, standard life insurance, mutual
fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like
Calcutta, Chennai, Delhi, Bangalore, Hyderabad, and Ahmedabad apart from HDFC Mumbai
Headquarter HDFC India :
'Trade Star', 2nd floor, 'A' Wing,
Junction of Kondivita and M.V. Road,
Andheri-Kurla Road,
Andheri (East), Mumbai - 400 059.
Tsel: (Board) 2822 0055 / 55516666 (Fax) : 2822 9998 / 2822 2414
Network : More than 468 branches over 212 cities across the country
ATMs : The ATMs of HDFC India can be accessed by all domestic and international
Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge
cardholders.
Authorized capital: Rs. 450 crore
Paid-up capital: Rs. 282 crore
Equity: Holds 24.2%
listing: HDFC India has been listed on the Stock Exchange, Mumbai and the National Stock
Exchange. The bank's American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol "HDB"

Organizational Structure
Chairperson
(JagdishCapoor)

Managing
Director
(AdityaPuri)

Executive director

Executive director

(Harish Engineer )

(PareshSukthankar)

Director

Director

Director

Director

Director

Director

(KekiMi

(C.M

(PanditPala

(Vineet

(ArvindPan

(Gautam

stry)

Vasudev)

nde)

Jain)

de)

Divan)

VISION STATEMENT
The vision of the Chairman and Board of Directors of the bank is to develop the bank into a
much stronger bank with the higher level of modernization to handle the business volume in
excess of Rs.10, 350 Crores and a profit level of more than Rs. 110 Crores by the end of
March 31, 2007. Noble thoughts and high ideas of the team of management charged with
dynamic spirit of action will take the bank to a greater height, achieving growth in strength
and exhibit the bank as a model bank in the Banking industry.
The bank has set itself a high standard, be it in operation, customer service or compliance to
regulation.Technology up gradation and march towards Hi-Tech and Cyber Banking are the
current mission of the bank.

MISSION STATEMENT

Our mission is to be a World Class Indian Bank, benchmarking ourselves against

international standards and best practices in terms of product offerings, technology, service
levels, risk management and audit & compliance. The objective is to build sound customer
franchises across distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy growth in
profitability, consistent with the Banks risk appetite. We are committed to do this while
ensuring the highest levels of ethical standards, professional integrity, corporate governance
and regulatory compliance. HDFC Bank has been recognized as a Best Bank in
India' in the magazines, as well as surveys year on year.

CHAPTER IV

PRODUCT PROFILE

TYPES OF CURRENT ACCOUNT:

1. REGULAR CURRENT ACCOUNT
Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, you can access your account anytime,
anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank
branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for
faster collections in your account. Regular Current Account requires you to
maintain

an

average

quarterly

balance

of

Rs10,000

With a vast network of branches in cities all over the country, and access to a
multitude of ATM's, you can keep track of all your transactions anytime.

Features & Benefits

Convenient inter-city banking :

Deposit your local cheque 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. RTGS payment @ Rs.100/- per transaction

Inter-city Account to accounts funds transfer between HDFC Bank accounts at a

nominal charge of Rs.15/- per transactions

Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at

flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of
Rs.25/- .

Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of
Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- .

Payable at par cheque book at nominal price.

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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure
and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep.

The Bank will arrange to render the services like Cash & Cheque Pickup and Cash
Delivery, through a reputed agency.

Enjoy facilities like 24-hour Phone Banking, NetBanking and MobileBanking that
helps you check your balance & transaction details, find out the status of your cheque
or stop cheque payment.

2. PREMIUM CURRENT ACCOUNT

Your business needs a partner who can manage your finances while you concentrate
on growing your business.
You can avail benefits of inter-city banking account with Premium Current Account,
which requires an average quarterly balance of only Rs. 25,000, offers PayableAt-Par cheque book facility & FREE inter-city clearing transactions across our
network up to Rs.25 Lacs per month.
A Current Account with the benefits of accessing your account from a large
network of branches, and through direct access channels - the phone, mobile,
Internet and through the ATM.Enter into a profitable relationship and access all
the privileges flowing your way.

Features & Benefits

Free anywhere collection & payment within HDFC Bank branch network (except
Dahej), up to Rs.25 lacs per month, incremental amount to be charged @ Rs.1.50
per Rs.1,000/-, min Rs.25/-

Free NEFT Transactions.

Free RTGS collection. RTGS payment @ Rs.100/- per transaction.

Inter-city Account to accounts funds transfer between HDFC Bank accounts at a

nominal charge of Rs.15/- per transactions.

Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal
cost of Rs.25/- and can be issued from any HDFC Bank Branch .

Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost
of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/and can be issued from any HDFC Bank Branch.

100 "At Par" cheque leaves free per 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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient,

secure and hassle-free. Now, you can enjoy the benefits of banking right at your

doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup
and Cash Delivery, through a reputed agency.

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking to

access your account.

3) TRADE CURRENT ACCOUNT

In today's changing business requirements, you need to transfer funds across cities,
and time is of the essence. HDFC Bank Trade Current Account gives you the
power of inter-city banking with a single account.
From special cheques that get treated at par with local ones in any city where we
have a branch, to free account to account funds transfer between HDFC Bank
accounts, to free inter-city clearing of up to 50 lakhs per month, our priority
services have become the benchmark for banking efficiency. Trade Current
Account requires you to maintain an average quarterly balance of Rs. 40,000.

Features & Benefits

Free Account to account funds transfer between HDFC Bank accounts.

Free RTGS/NEFT Transactions.

Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC
Bank Branch.

Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank
Branch.

Free anywhere collection & payment within HDFC Bank branch network (except
Dahej), up to Rs.50 lacs per month.

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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure
and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep.
The Bank will arrange to render the services like Cash & Cheque Pickup and Cash
Delivery, through a reputed agency.

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking that

helps you check your balance & transaction details, find out the status of your cheque
or stop cheque payment.

4. PLUS CURRENT ACCOUNT

In today's fast-paced world, your business regularly requires you to receive and send
funds to various cities in the country. HDFC Bank Plus Current Account gives
you the power of inter-city banking with a single account and access to more
than 327 cities.
From special cheques that get treated at par with local ones in any city where we
have a branch, faster collection of outstation cheques (payable at branch
locations), free account to account funds transfer between HDFC Bank accounts
to Free inter-city clearing of up to 100 lakhs per month, our priority services
have

become

the

benchmark

for

banking

efficiency.

Plus Current Account requires you to maintain an average quarterly balance of

Rs. 100,000.
Read on to know the powerful plus points of the HDFC Bank Plus Current Account.

Features & Benefits

Free Account to account funds transfer between HDFC Bank accounts

Free payment and collection through RTGS.

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.

Free anywhere collection & payment transactions (clearing) within HDFC Bank
branch network (except Dahej), up to Rs.100 lacs per month.

Convenience to withdraw & deposit cash at all our branches*

300 "At Par" cheque leaves free per 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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure
and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep.

The Bank will arrange to render the services like Cash & Cheque Pickup and Cash
Delivery, through a reputed agency.

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that
helps you check your balance & transaction details, find out the status of your cheque
or stop cheque payment

5. FLEXI CUURENT ACCOUNT

Tired of static transaction limits during peak seasons?

HDFC Bank Flexi Current Account is the answer to your changing banking needs during
peak seasons.
With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere Transaction
limits are a multiple of the balance you maintain in your Current Account.
So, during peak seasons, you get the benefit of higher transaction limits due to the higher
average balances maintained in your account.

Whats more, during lean seasons, you need not bother about maintaining huge balances
to

enjoy

high

transaction

limits,

which

you

anyway

may

not

need.

Flexi Current Account requires you to maintain a minimum Average Monthly Balance
(AMB) of just Rs. 75,000.

Features & Benefits

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

Transaction
Cash Deposit at Home Branch Location

Dynamic Free Limits*

Rs. 24,00,000 in that particular

month
Anywhere Payments, Collections & Funds Transfer Free up to Rs.1,00,00,000/- in that
(except Dahej)

particular month

Pay your vendors on a real time basis using Real Time Gross Settlement (RTGS)
available across 23,000 Bank Branches*. Whats more, payments and collections
through RTGS are completely free!

Make and receive remittances to & from your vendors & customers across 20,000
+ Bank Branches of more than 50 Banks through Net Banking using National
Electronic Fund Transfer (NEFT), Absolutely Free!

Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank
Branch*

Convenience to withdraw and deposit cash at all our branches*.

Competitive pricing on Demand Drafts drawn on Correspondent Banking

Locations as well as Outstation Cheque Collection at HDFC Bank Locations

InstaAlert service- 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 Phone Banking, Net Banking and Mobile Banking
that helps you check your balance and transaction details, find out the status of
your cheque or stop cheque payment.

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient,

secure and hassle-free. Now, you can enjoy the benefits of banking right at your
doorstep. The Bankwill arrange to render the services like Cash & Cheque Pickup
and Cash Delivery, through a reputed agency.

6. MAX CURRENT ACCOUNT

Presenting maximum benefits and minimum hassles for you with Max Current Account!
With a Rs. 5 lakhs average quarterly balance requirement, we present to you a world of
privileges that helps your business expand and grow. Features like maximum free
transaction limits including other beneficial features on this current account truly enhances
your business potential to the Maximum.
\

Features & Benefits

Maximum transactional benefits with faster mobilization of funds

Average quarterly balance requirement of Rs. 5,00,000/-

Access to more than 750 branches

Huge cost savings in inter-city transactions for 500 payable-at-par cheque

issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order

Faster collection of outstation cheques

Free Account to Account funds transfer between HDFC Bank accounts

Free payment and collection through RTGS

Free payment and collection using NEFT (through NetBanking)

Free Demand Drafts which can be issued from any HDFC Bank branch

Free Pay Orders which can be issued from any HDFC Bank branch

Free anywhere collection & payment (clearing) up toRs. 5 Crore per month within
HDFC Bank branch network (except Dahej)

Convenience to withdraw and deposit cash at all our branches*

Free cash deposit up toRs. 50 Lakh per month across all home branches (subject
to a maximum of 50 transactions per month and a per day limit of Rs.1,00,000/on cash deposit at a non-home branch)

Choice of local / Payable at Par cheques. 500 leaves free per 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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient,

secure and hassle-free. Now, you can enjoy the benefits of banking right at your
doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup
and Cash Delivery, through a reputed agency.

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking
that helps you check your balance and transaction details, find out the status of
your cheque or stop cheque payment.

7. APEX CURRENT ACCOUNT

The top position is always the coveted position. With the Apex current account, take
your business to a new high. On maintaining an average quarterly balance of Rs. 10
Lakh,

this account makes sure you make the most of every business opportunities

coming your

way. Unlimited, free, anywhere Banking experience at the APEX is

reserved for you.

gggggggggggggggggggggggggggggggggggggggggggggggggg

Features & Benefits

Maximum transactional benefits with faster mobilization of funds

Average quarterly balance requirement of Rs. 10,00,000/-

Access to more than 761 branches

Huge cost savings in inter-city transactions for payable-at-par

cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order

Faster collection of outstation cheques

Free Intercity Cheque Collection & Payments within HDFC Bank Network
(excluding Dame).

Free Account to Account funds transfer between HDFC Bank accounts.

Free payment and collection through RTGS

Free payment and collection using NEFT (through Net Banking)

Free Demand Drafts which can be issued from any HDFC Bank branch

Free Pay Orders which can be issued from any HDFC Bank branch

Convenience to withdraw and deposit cash at all our branches*

Free Cash Deposit uptoRs. 100 laces per month across all home branches (subject to a
maximum of 50 transactions per month and a per day limit of Rs.1,00,000/- on cash
deposit at a non-home branch)

Choice of local / Payable at Par Cheques. 500 leaves free per 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!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure
and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep.
The Bank will arrange to render the services like Cash & Cheque Pickup and Cash
Delivery, through a reputed agency.

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that
helps you check your balance and transaction details, find out the status of your
cheque or stop cheque payment.

CHAPTER- V

LITERATURE REVIEW

4.1) RETAIL BANKING: THE NEW BUZZWORD

Progress has a new address and that is India. The economic growth coupled with the robust
gains in stock markets has brought with it prosperity and wealth in the hands of Indians. The
number of millionaires in India has crossed the 100,000-mark. Salaries in India have
witnessed a 13- 14 per cent growth, higher than that seen in China and other South East Asian
countries. This means there is more money in the hands of the people that needs to be
managed well, says Pralay Mondal, country head, retails assets and credit cards, HDFC
Bank. This increase in wealth is fuelling the growth of the retail banking sector.
The boom in the financial services market has led to the creation of vast armies of sales
persons called direct sales agents (DSAs) for marketing the varied products. Another strategy
used by some banks is to tap into their own large base of depositors who are offered multiple
products depending on their needs.This helps to lower acquisition costs, lower default rates
and higher deposits being held in banks by the customer. Banks are now targeting the rural
consumers too.
Banks are also offering micro-finance in order to fulfill their social obligations. If retail
banking is a buzzword in India today, the reason is not far to see. After all, margins in retail
banking are higher than corporate banking and the growth too is faster. Several banks that
were not very active in retail banking are now eyeing this sector.
Just the person retail bankers had been looking for banking sector has tremendous potential
for growth. According to the PwC report, total domestic credit in India was around $400
billion compared to Chinas $ 2.8 trillion. But the new banks will have to compete with
existing banks including nationalized ones, private sector banks, foreign banks, smaller
institutions including co-operative banks and in some areas with non-banking finance
companies too.

The Indian banking system has come a long way since 1786 when the first bank was set up in
India. In the pre- Independence days, initially banks were set up as private institutions with
mostly European shareholders. Post-independence, most of the banks were nationalized in
1969. In the 1990s, following economic reforms, the banking sector was also liberalized. The
entry of private banks and increasing competition resulted in nationalized banks becoming
more
efficient and turning aggressive in the market place. The introduction of automated teller
machines (ATMs), phone banking and internet banking by most banks has bid adieu to the
serpentine queues seen earlier.

4.2) OLD AND NEW PLAYERS

State Bank of India (SBI), a nationalized bank, is the largest bank in the country. The other
major players are Allahabad Bank, Punjab National Bank, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, and Indian Bank, institutions that were set up in the
early 1900s as private banks but were nationalized subsequently. Leading private sector
banks like ICICI Bank and HDFC Bank leveraged technology to provide more efficient
services, thus stealing a march over the older, nationalized banks. There exist many smaller
banks such as co-operative banks that operate at the local level. Citibank and Standard
Chartered Bank are among the biggest foreign banks in India; others include HSBC and
Deutsche Bank.
Other than the pure banking operations, many foreign banks also have other interests. For
instance, Citi Financial is the largest NBFC in the country, with a network of 450 branches in
180 cities while French Bank SocieteGenerale, apart from banking activities, also has
interests in a BPO SG Global Solution Centre in Bangalore and a car fleet management
company ALD which has a presence in Mumbai, Delhi, Bangalore and Hyderabad. Eric
Dhoste, chief executive and group country head, India, SocieteGenerale, says that the group
employs more than 1,000 employees in India across all activities. There are many NBFCs in
India that are hoping to metamorphose into banks, just as Kotak Mahindra Finance, formerly
an NBFC, converted into Kotak Bank. GE Money has used the partnership route to grow its
business in India. It is number two in the credit cards business and serves 3.3 million card
customers with joint venture partner, State Bank of India in technology, markets and funds.

A fast developing country like India also needs good infrastructure to sustain economic
growth, leading to opportunities in the areas of infrastructure / project finance. Incidentally,
the government too is keen to ensure that credit growth moves into the productive side, that
is, industry and the rural economy. Thanks to the RBI, the Indian banking sector remains on
track. When inflation threatened to derail the growth story, it enforced strict norms that
helped to rein in inflation. The level of non performing assets (NPA) in Indian banks too is in
keeping with internationally acceptable levels and is lower than in some South East Asian
countries.
In anticipation of the growth in the coming years, existing players in India are drawing up
major expansion plans. The Tatas are said to have lined up a massive investment of over a
billion dollars over the next three to four years through a new company, Tata Capital. Anil
Ambani wants Reliance Capital, one of the fastest growing financial sector companies, to be
among the top three financial services companies, including banks, in the country. It plans to
increase its employee strength from current 11,000 to 50,000 over the next two years. Due to
regulatory restrictions, foreign banks can only grow organically today.

CHAPTER- VI

RESEARCH METHODOLOGY
METHODOLOGY OF STUDY:
Research can be defined as a systemized effort to gain new knowledge. A research is carried
out by different methodologies which have their own pros and cons. Research methodology is
a way to solve research in study and solving research problems along with logic behind them
are defined through research methodology. Thus while talking about research methodology
we are not only talking of research methods but also consider the logic behind the methods.
We are in context of our research studies and explain why it is being used a particular method
or technique and why the others are not used. So that research result is capable of being
evaluated either by researcher himself or by others.

RESEARCH METHOD:
Research has its special significance in solving various operational and planning problems of
business and industry. Research methodology is a way to systematically analyze the research
problem.

ASSUMPTIONS:
1. It has been assumed that sample of hundred represents the whole population.
2. The information given by the customer is unbiased.

COLLECTION OF DATA:
This research is solely based on primary research done by means of questionnaires targeted to
respondents who primarily belong to the business and service sector. During the entire
research work data of around 100 respondents have been collected. The sample size is 100.
a. Sampling Methods: A sample is the representative of the populations which will
predict the behaviors of the whole universe

b. The sampling size put under 2 categories: Probability Sampling and Non Probability
Sampling.

EXECUTION OF PROJECT
It is very essential in the research process to know the accuracy of the findings which
depends on how systematically the study has been carried out so that it can make sense.
We have executed the project after prior discussion with our guide and structured in the
following steps:

a. Preparation of a questionnaire.
b. The focal point of the designing the questionnaire was to comprehend the current
investment scenario with respect to tax planning part.

c. This questionnaire was primarily aimed to respondents who belong to the service and
business class people.

d. The questionnaires were discussed through personal interface with the respondents.

LIMITATIONS OF STREAMLINING RESULTS:

Every work has its own limitations. Limitations are extent to which the process should
not exceed. The following limitations for the project are:
1. Duration of project was not enough to make our conclusion on such a vast subject. A
time constraint has also become a major limitation.
2. The sample size taken for drawing the conclusion was not sizeable.
3. Investor ignorance was faced during discussions with respondents.
4. As the topic is related with their income part so respondents were a bit
towards disclosing their true feelings.

reluctant

CHAPTER- VII

Questionnaire
Sir/madam
We are conducting market assessment of HDFC product with special
reference to current account at Pune.
We would like to include your opinion for this purpose.

NAME OF THE COMPANY

CONTACT PERSON

: .

: .

DESIGNATION

: .

CONTACT NUMBER

: ..

ADDRESS

: ............

1. What is the type of your Business?

(a) Trading

(b) Manufacturing

(c) Service Industry

(d) Others

2.What is the Annual Turnover of your Business?

Annual Turnover: Rs ..
3. Do you have any current Account with any bank?
(a) Yes

(b) No

4.Which bank are you banking with?

(e)

(a)

HDFC Bank

(b)

SBI

(c)

Axis bank

(d)

ICICI Bank

Others

5. How satisfied are you with the services provided by the bank?
a) Very satisfied
b) Satisfied
c) Somewhat satisfied
d) Dissatisfied
6.Do you think that the bank caters all your banking needs?
(a) Yes
(b) No
7. On what basis you have selected the Bank to open your current account?
(a)

AQB Maintenance Charges

(b)

Annual Turnover of the company

(c)

Well-located

(d)

Internet Banking

(e)

Mobile Banking

(f)

Various Charges

(g)

Others..
8. Are there any other facilities that you would like to have?

(a) Yes

(b) No

If

Yes,

then

mention.

..
9. If you get a chance to switch from your existing bank, Will you switch?
(a) Yes
If

(b) No
Yes,

then

why.

..
We are grateful for your co-operation.
Thanking you.

Date:
Signature:

ANALYSIS AND INTERPRETATION

1. What is the type of your business?
Type Of Business
Trading
Manufacturing
Service industry
Others
Total

No. of Customers
140
120
50
40
350

Interpretation: During the survey we found that most of them have trading business. 34% people are
having manufacturing business. Very few people whom we surveyed are from service
industry. So from this graph it is clear that trading and manufacturing is the main
customer of our survey.

Q2. What is the annual turnover of the Business?

Annual turnover
Below 36 lakhs
36 Lakhs 2 crore
2 crore 15 crore
Above 15 crore
Total

No. of Customers
185
150
10
5
350

Interpretation: It means the major numbers of customers are having their annual turnover between 2
crore to 15 crore i.e. 53 %, whereas only 1% customers are having their annual
turnover above 15 crore.

Q3. Do you have any current Account with any bank?

Opinion
Yes
No
Total

No. of Customers
345
5
350

Interpretation: During survey we found that most people who are in trading and manufacturing
business generally preferred to have current account. 99 % people have current
account. Some people who are not aware about banking services are not having current
account.

Q4.Which Bank is you using currently?

Name of the Bank

HDFC Bank
SBI Bank
ICICI Bank
AXIS Bank
Others
Total

No. Of Customers
91
102
79
37
36
345

Interpretation:
In my survey we found that most customers want to open current account in SBI
Bank which is 30% and 26 % people says that they have their account with HDFC
Bank and least percentage of other cooperative banks.

7. On what basis you have selected the Bank to open your current account?

Criteria
AQB
Annual Turnover
Well-located
Internet Banking
Mobile Banking
Various Charges
Others

No. of Customers
120
135
55
40
25
65
20

Interpretation: As per the chart 29% customers decide to open current account as per there annual
turnover and also they prefer AQB and Features & Benefits.

8. Are there any other facilities that you would like to have?
(a) Yes

(b) No

Criteria
Yes
No
Total

No. of Customers
120
245
345

As per the chart 67% customers are happy with the services provided by banks and
33% are looking to add few more services like cash delivery and special desk to attend
special customers.

9. If you get a chance to switch from your existing bank, Will you switch?
(a) Yes

(b) No
Criteria
Yes

No. of Customers
92

No
Total

253
345

Interpretation: As per the chart 73% customers are not willing to change their service providers and
27% are looking to change their service providers to get better services and features.

CHAPTER VIII

Observation & Finding

All the private and public sector banks are recognizing importance of the relationship
management in their growth and customer retention.
The officials try to make best relation with the customers.
Staff member gives regular updates to their customers and information of the product
and their services.

 The registers and files are systematically maintained on a daily basis and in an
organized manner.
Officials employed find themselves in much burden as there are very less number of
sales executives.
Most of the respondents are having more than two accounts and holds more than two
products with HDFC Bank.
Bank has shown better utilization of cash balance of customer by cross selling other
products.
According to respondents feedback it is observed that bank is in need to increase their
branches in PUNE region as well as pay concern to increase their ATM network.
With the help of research it has been found that most of them prefer brand name and
service facilities and some of them are influenced by existing customer
Greater retention of customers is being needed as they are offering various products
and services. This enables a great understanding of what customers may expect from
the bank and what to offer to them. This leads to defining where each customer is in
his relationship with the bank so that cross-selling can be done

CHAPTER IX

CONCLUSION:

HDFC Bank has a strong brand name in the PUNE city market. The people of PUNE
city are good in investment part and most of them go for Fixed Deposits and Life
Insurance rather investing in Mutual fund products.
Thus there is a need to convert the people in mutual fund and credit cards for increasing
profitability of bank.

HDFC Bank has always sought profitable customers and generated profit from them
and taken steps by converting the non-profitable customer to profitable customers.

Customers can be pulled into profitability band when the customer is satisfied with the
product and services which he is using.

Customer satisfaction plays an important role as customers are satisfied they will look
for some other product.

At this state Relationship Manager is very important who can suggest the customer
which product to use with reference to his need.

They must maintain mutual relationship between the relationship manager and
customer.

CRM lead to better understanding of all aspects of customer behaviour regarding issues
and benefits offered by a company and helps differentiate itself from others.

The project was full of learning and experiments and provides me with a great knowledge
about banking sector. I have interacted with a lot of people personally during these two
months. A study of Company profile and Product profile was done before starting my project
which helps me a lot while interacting with the people. If the interviewer is not having
adequate knowledge of the company and product profile then he will not be able to get the
desired information from the respondent. During the course of time, I tried to get all the
objective of the project to be fulfilled.

CHAPTER X

SUGGESTIONS AND RECOMMENDATIONS

Continuous interaction with the customers is necessary in order to continue with
relationshipBuilding activities for long term prospective.
The bank should come up withmore branches in other locations in PUNE city.
The bank should open more ATM networks.

 To increase the number of customers HDFC Bank should also offer some products for
small business. (For example- Zero balance savings and current account.)
It is seen that most of the customers are not aware of products and servicesoffered by
HDFC Bank. Thus HDFC Bank should pay some attention onAdvertisement.
HDFC Bank has very less sales force than other banks, this is a reason that customers
have lack of attention towardsHDFC Bank. This part can be improved by increasing
the sales force.
Account opening process in HDFC Bank is comparatively complicated andTimeconsuming in case of current accounts HDFC Bank should consider time factor as it is
very important.

Bibliography

1) Information regarding HDFC bank is to be taken from www.hdfcbank.com

2) Information regarding govt. policy is to be taken from www. rbi.org.in
Others materials

a) The project of INDIA BANKING PROJECT 2010 by McKinney &company

b) The project of The Indian Banking sectors, on road to progress by
G.H.Deolakar(managing director of state bank of India)