SUMMER TRAINING PROJECT REPORT ON

EFFECTIVENESS OF SERVICES PROVIDED TO PRIVATE BANKING

CUSTOMERS AND HOW TO IMPROVE

FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF
INTEGRATED MASTERS IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF:

UNDER THE SUPERVISION OF:

MS. BHAVNA PANDEYMr.

Vishnu Pratap Singh Chauhan

SUBMITTED BY
MOHAMMAD ASIF
MBA 2016 - 2017

BABU BANARASI DAS UNIVERSITY

Sector I, Dr.Akhilesh Das Nagar, Faizabad Road,
Lucknow (U.P.) India

ACKNOWLEDGMENT

The internship opportunity I had with HDFC Bank, Alambagh branch, Lucknow was a
great chance for learning and professional development. Therefore, I consider myself as a
very lucky individual as I was provided with an opportunity to be a part of it. I am also
grateful for having a chance to meet so many wonderful people and professionals who
led me though this internship period.
Bearing in mind previous I am using this opportunity to express my deepest gratitude and
special thanks to the Branch Manager Mr. Vishnu Pratap Singh Chauhan of HDFC Bank,
Alambagh Branch, Lucknow who in spite of being extraordinarily busy with his duties,
took time out to hear, guide and keep me on the correct path and allowing me to carry out
my project at their esteemed organization and extending during the training.
I acknowledge my gratitude to respected faculty Ms. BHAVNA PANDEY

MOHAMMAD ASIF

DECLARATION

I do hereby declare that the research report titled EFFECTIVENESS OF SERVICES

PROVIDED TO PRIVATE BANKING CUSTOMERS AND HOW TO IMPROVE
submitted by me in partial fulfillment of the requirement of Integrated Master of
Business Administration, exclusively prepared and conceptualized by me and is not
submitted to any other Institution or University or published anywhere before for the
reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not
been obtained from any other part.

MOHAMMAD ASIF
IMBA (7th Sem.)

PREFACE
As a part of our course curriculum I had to go through a Summer Internship Project
Report on any topic to get the right exposure to the practical aspects of business
management.
I want to express my gratitude for the experience and practical knowledge that I earned
during the Summer Internship. In this project report I had presented my great experience
in the form of words. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my institute.
I hope that the findings and the suggestions will help the company, confidently to
formulate its strategy in comparison to its competitors. I have enjoyed my report
preparation and have learnt lots of new things. I have tried my level best to make this
report a reader friendly & also did my level best to fulfil the objective of the study.

TABLE OF CONTENT
Chapters
Part I
1.

2.

3.
Part II
4.
5.
6.

Part III
7.
8.
9.
10.
11.
12.
13.

Content
Introduction of Banking
1.1 Meaning and Definition
1.2 Banking system in india
1.3 Indian Banking system
Company Profile
3.1 History of HDFC Bank
3.2 Mission, Vision and Objectives
3.3 Management at HDFC Bank
3.4 Business Profile
3.5 Ratings/Awards
3.6 Products of HDFC Bank
3.7 payment services
3.8 SWOT analysis
Introduction to Private Banking
Objectives of the study
Literature Review
Research Methodology
a. Research Design
b. Research Type
c. Data Collection
d. Sample Plan
Data Analysis & Interpretations
Findings
Conclusion
Limitations
Recommendation and Suggestions
Bibliography
Questionnaire

INTRODUCTION

Page No.

INTRODUCTION TO BANKING INDUSTRY

MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking.
Banking Means "Accepting Deposits 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."
-Banking Companies (Regulation) Act, 1949
The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the bank
performed when banking originated.
"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."
-By H.Wills& J. Bogan
"A banker of bank 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.
-By Findlay Sheras
Thus
A Bank:
Accept deposits of money from public.
Pays interest on money deposited with it.
Lends or invests money.
Repays the amount on demand,
Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchibancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING:
Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
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 make loans i.e., modern
commercial banks.
The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which extended
throughout Europe, Asia and Africa.Banking is nearly as old as civilization. The history
of banking could be said to have started with the appearance of money. The first record of
minted metal coins was in Mesopotamia in about 2500B.C. the first European banknotes,
which was handwritten appeared in1661, in Sweden. Cheque and printed paper money
appeared in the 1700s and 1800s, with many banks created to deal with increasing trade.
Modern banking began in Venice. The word bank comes from the Italian word ban co,
meaning bench, because moneylenders worked on benches in market places. The bank of
Venice was established in 1171 to help the government raise finance for a war.
At the same time, in England merchant started to ask goldsmiths to hold gold and silver
in their safes in return for a fee. Receipts given to the Merchant were sometimes used to
buy or sell, with the metal itself staying under lock and key. The goldsmith realized that
they could lend out some of the gold and silver that they had and charge interest, as not
all of the merchants would ask for the gold and silver back at the same time. Eventually,

instead of charging the merchants, the goldsmiths paid them to deposit their gold and
silver.
The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900s round the world, banks
merged into larger and fewer groups and expanded into other country.
Banks are in the business of accepting deposits for the purpose of lending. They act as
financial intermediaries between depositors with surplus funds and borrowers who are in
need of funds. Banks occupy a pivotal place in the payment system for government,
business and households. Thus, they play a vital role in the economic and financial life of
country.
The banking sector in the country has undergone a metamorphic persuade the policies of
interest rate deregulation and financial liberalization in a bid to supplement the
government policies of economic liberalization. The most important change that has
overtaken the nations banking industry, relates to the fact that the competitive forces are
sought to be introduced consciously in the financial service sector wide to facilitate the
entry of foreign banks and new private sector banks.
After the nationalization of 14 commercial banks in the year 1969, no new private banks
were licensed by RBI in the country though there was no legal bank on the entry of
private sector banks. The narasimham committee report of 1991, has envisaged a larger
for private sector banks.

HISTORICAL OF BANKING IN INDIA

Without a sound and effective banking system, India cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades Indias banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer confined to only
8

metropolitans or cosmopolitans in India. In fact, India banking system has reached even
to remote corners of the country. This is one of the main reasons of Indias growth
process.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft for withdrawing his own money. Today, he has a choice gone are days when the
most efficient bank transferred money from one branch to other in two days. Now it is
simple as instant messaging or dial a pizza. Money has become the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of India banking system can be segregated into three distinct phases.
They are as mentioned below:
Early phase from 1786 to 1969 of Indian banks
Nationalization of India banks and up to 1991 prior to India banking sector reforms.
There are three different phases in the history of banking in India
i)
ii)
iii)

Pre-Nationalization Era.
Nationalization stage.
Post Liberalization Era.

PHASE I: Pre-Nationalization Era

In India the business of banking and credit was practices even in very early times. The
remittance of money through Hundies, an indigenous credit instrument, was very popular.
The hundies were issued by bankers known as Shroffs, Sahukars, Shahu or Mahajans in
different parts of the country.
The modern type of banking, however, was developed by the agency house of Calcutta
and Bombay after the establishment of rule by the East India Company in 18 th and 19th
centuries.
During the early part of the 19th century, ht volume of foreign trade was relatively small.
Lateron as the trade expanded, the need for banks of the European type was felt and the
government of the east India Company took interest in having its own bank. The
9

government of Bengal took the initiative and the first presidency bank, the bank of
Calcutta (bank of Bengal) was established in 1840. In 1840, the bank of Bombay and in
1843, the bank of Madras also set up.
The general bank of India was setup in the year 1786. Next bank of Hindustan and
Bengal bank. The east IndiaCompany established bank of Bengal (1809), bank of
Bombay (1840) and bank of madras (1843) as independent units and called it presidency
banks. These three banks were amalgamated in 1920 and imperial bank of India was
established which started as private banks.
These three banks also known as Presidency Bank. The presidency banks had their
branches in important trading centers but mostly lacked in uniformity in their operational
policies. In 1899, the government proposed to amalgamate these three banks into one so
that it could also functions as a obtaining during world war period (1914-1918)
emphasizes the need for a unified banking institution, as a result of which the imperial
bank was set up in 1921. The imperial bank of India acted like a central bank and as a
banker for other banks.
In 1865 Allahabad bank was established and first time exclusive by India, Punjab
national bank ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, bank of India, central bank of India, bank of Baroda, Canada bank, Indian bank and
bank of Mysore were set up. Reserve bank of India came in 1935 as central bank of the
country. In 1949, the banking regulation act was passed and the RBI was nationalizes and
acquired extensive regulatory powers over the commercial banks.
In 1950, the Indian banking system comprised of the RBI, the imperial bank of India.
Cooperative banks, exchange banks and Indian joint stock banks.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
PHASE II: Nationalization Stage
After independence, in 1951, the all India rural credit survey, committee of direction with
Shri. A. D. Gorwala as chairman recommended amalgamation of the Imperial bank of
India and ten others banks into a newly established bank called the state bank of India

10

(SBI). The government of India accepted the recommendation of the committee and
introduced the State Bank of India bill in the LokSabha on 16th April 1995 and it was
passed by parliament and got the presidents assent on 8 th May 1995. The act came into
forces on 1st July 1995, and the Imperial bank of India was nationalizes in 1995 as the
State Bank of India.
The main objective of establishing SBI by nationalizing the imperial bank of india was
to extend banking facilities on a large scale more particularly in the rural and semiurban areas and to diverse other public purposes.
In 1959, the SBI (Subsidiary Bank) act was proposed and the following eight state
associated banks were taken over by the SBI as its subsidiaries.
Name of the Bank

Subsidiary with effect

from
1.
2.
3.
4.
5.
6.
7.
8.

1st October 1959

1st January 1960
1st January 1960
1st May 1960
1st April 1960
1st March 1960
1st January 1968
1st January 1960

State bank of Hyderabad

State bank of Bikaner
State bank of Jaipur
State bank of Saurashtra
State bank of Patiala
State bank of Mysore
State of Indore
State bank of Travancore

With effect from 1st January 1963, the state bank of Bikaner and state bank of Jaipur with
head office located at Jaipur. Thus, seven subsidiary banks state bank of India formed the
SBI group. The SBI group under statutory obligations was required to open new offices
in rural and semi-urban areas and modern banking was taken to these unbanked remote
areas.
On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the
nationalized of 14 major scheduled commercial banks each having deposits worth Rs. 50
crore and above. This was a turning point in the history of commercial banking in India.
Later the government nationalized six more commercial private sector banks with deposit
liability of not less than Rs. 200 crore on 15th April 1980, viz.
i)
ii)

Andhra bank
Corporation bank
11

iii)
iv)
v)
vi)

New bank of India

Oriental bank of commerce
Punjab and Sind bank
Vijaya bank

In 1969, the lead bank scheme was introduced to extend banking facilities to every corner
of the country. Later in 1975, regional rural banks were set up to supplement activities of
the commercial banks and to especially meet the credit needs of the weaker sections of
the rural society.
Nationalization of banks paved way for retail banking and as a result there has been an alt
round growth in the branch network, the deposit mobilization, credit disposals and of
course employment.
Government took major steps in this Indian banking sectors reform after independence in
1955, it nationalized imperial bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed state bank of India to act as the
principal agent of RBI and to handle banking transaction of the union and state
government all over the country.
The following are the steps taken by government of India to regulate banking institution
in the country:
1949: ENACTMENT OF BANKING REGULAION ACT.
1955: NATIONALIZATION OF STATE BANK OF INDIA.
1959: NATIONALIZATION OF SBI SUBSIDIARIES.
1961: INSURANCE COVER EXTENDED TO DEPOSITE.
1969: NATIONALIZATION OF 14 MAJOR BANKS.
1971: CRESTION OF CREDIT GUARANTEE CORPORATION.
1975: CREATION OF REGIONAL RURAL BANKS.
1980: NATIONALIZATION OF SEVEN BANKS WITH DEPOSITE OVER 200
CRORE.

12

The first year after nationalization witnessed the total growth in the agricultural loans and
the loans made to SSI by 87% and 48% respectively. The overall growth in the deposit
and the advances indicated the improvement that has taken place in the banking habits of
the people in the rural and semi-urban areas where the branch network has spread. Such
credit expansion enabled the banks to achieve the goals of nationalization, it was
however, achieved at the goals of nationalization. It was however, achieved at the coast
of profitability of the banks.

Consequences of Nationalization:

The quality of credit assets fell because of liberal credit extension policy.
Political interference had been additional malady.
Poor appraisal involved during the loan meals conduct for credit disbursals.
The credit facilities extended to the priority sector at concessional rates.
The high level of low yielding SLR investments adversely affected the

profitability of the banks.

The rapid branch expansion has been the squeeze on profitability of banks
emanating primarily due to the increase in the fixed costs.
There was downward trend in the quality of services and efficiency of the banks.
PHASE III: Post-Liberalization Era----Thrust on quality and profitability
By the beginning of 1990, the social banking goals set for the banking industry made
most of the public sector resulted in the presumption that there was no need to look at the
fundamental

financial

strength

of

this

bank.

Consequently

they

remained

undercapitalized. Revamping this structure of the banking industry was of extreme

importance, as the health of the financial sector in particular and the economy was a
whole would be reflected by its performance.
The need for restructuring the banking industry was felt greater with the initiation of the
real sector reform process in 1992. The reform has enhanced the opportunities and
challenges for the real sector making them operate in a borderless global market place.
However, to harness the benefits of globalization, there should be an efficient financial
sector to support the structural reforms taking place in the real economy. Hence, along
with the reform of the real sector, the banking sector reformation was also addressed.
13

The route causes for the lackluster performance of bank, formed the elements of the
banking sector reform. Some of the factors that led to the dismal performance of bank
were.

Regulated interest rate structure.

Lack of focus on profitability.
Lack of transparency in the banks balance sheet.
Lack of competition.
Excessive regulation on organization structure and managerial resources.
Excessive support from government.

Against this background, the financial sector reforms were initiated to bring about a
paradigm shift in the banking industry, by addressing the factor for its dismal
performance.
This phase has introduced many 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.
The financial system of India has shown a great deal of resilience it is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high,
the capital account is not yet fully convertible, and banks and their customers have
limited foreign exchange exposure.
Private Sector Banks
The concept of private banking was introduced about 15 years ago. These are the banks
that do not have any government stakes.
Private Banks have gained quite a foothold in the Indian banking industry over the last
few years especially because of optimum use of technology. The private banks are
accountable for a share of 18.2% of the Indian banking industry. Induslnd bank was the
14

1st private bank in India. Currently the bank is among the fastest growing bank private
bank in the country. IDBI which is ranked as the 10 thlargest global development bank in
counted as one of the finest financial institutions in the subcontinent.

BANKING SERVICES
Banking covers so many services that it is difficult to define it. However, these basic
services have always been recognized as the hallmark of the genuine banker.
These are
The receipt of the customers deposits
The collection of his cheques drawn on other banks
The payment of the customers cheques drawn on himself.
These are other various type of banking services like:
1)
2)
3)
4)
5)
6)
7)
8)

Advances Overdraft, Cash Credit, etc.

Deposits Saving Account, Current Account, etc.
Financial services Bill discounting etc.
Foreign Services Providing foreign currency, travellers cheques, etc.
Money Transmission Funds transfer etc.
Savings Fixed deposits, etc.
Services of place or time ATM services.
Status Debit cards, Credit cards, etc.

Customer Services in commercial Banks:

Customer service is the service provided in support of a banks core products. Customer
service often includes answering questions; handling complaints. Customer service can
occur on site (as when an onstage employee helps a customer or answer a question) or it
can occur over the phone or the internet. Quality customer service is essential to building
cordial customer relationship.
Banking being a service industry, a lot depends on efficient and prompt customer service.
Customer service is the most important duty of the banking operations. Prompt and
efficient service with smile will develop good public relations reduce complaints and
increase business.
Why is customer service important?
15

 Changing customer expectations: today the customer is more demanding and

more sophisticated than he or she was thirty year ago.
The increased importance of customer services: with changing customer
expectations, competitors are seeing customer service as a competitive weapon
with which they differentiate their products and services.
The need for a relationship strategy: to ensure that a customer service strategy
that will create a value preposition for customers should be formulated
implemented and controlled. It is necessary to give it a central role and not one
that various elements of the marketing mix.
The customer is the kingpin in growth organization like commercial banks. Only those
institutions which work according to his dictates will flourish. Quality, consistency and
durability at low price are the final expectations of a customer. Quality will have to be
unambiguous, of world class quality. Quality cannot be of minimum acceptable
standards. Customer responsiveness must be quick and also competent. Speed,
performance and cost will be the new values mantra for success.
These key areas of customers services to be attended timely and regularly are:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.

Submission of statement of A/Cs to customers.

Updating of saving pass book.
Teller system efficiency.
Cleanliness and upkeep of premises.
Intermediate credit for institution cheques/land bills.
Advance intimation to customers for rewards of term deposits receipts on
maturity.
Advance for debit/credit to accounts.
Punctuality of staff.

16

RESERVE BANK OF INDIA

The central bank of the country is the Reserve Bank of India (RBI). It was established in
April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the
Hilton Young Commission. The share capital was divided into shares of Rs. 100 each
fully paid which was entirely owned by private shareholders in the beginning. The
Government held shares of nominal value of Rs. 2, 20,000.
Reserve Bank of India was nationalized in the year 1949. The general superintendence
and direction of the Bank is entrusted to Central Board of Directors of 20 members, the
Governor and four Deputy Governors, one Government official from the Ministry of
Finance, ten nominated Directors by the Government to give representation to important
elements in the economic life of the country, and four nominated Directors by the Central
Government to represent the four local Boards with the headquarters at Mumbai,
Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central
Government appointed for a term of four years to represent territorial and economic
interests and the interests of co-operative and indigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934
(II of 1934) provides the statutory basis of the functioning of the Bank.
The Bank was constituted for the need of following:
1. To regulate the issue of banknotes
2. To maintain reserves with a view to securing monetary stability and
3. To operate the credit and currency system of the country to its advantage.

Functions of Reserve Bank of India

The Reserve Bank of India Act of 1934 entrust all the important functions of a central
bank, the Reserve Bank of India.

Bank of issue:

17

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue
bank notes of all denominations. The distribution of one rupee notes and coins and small
coins all over the country is undertaken by the Reserve Bank as agent of the Government.
The Reserve Bank has a separate Issue Department which is entrusted with the issue of
currency notes. The assets and liabilities of the Issue Department are kept separate from
those of the Banking Department.
Banker to Government:
The second important function of the Reserve Bank of India is to act as Government
banker, agent and adviser. The Reserve Bank is agent of Central Government and of all
State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has
the obligation to transact Government business, via. To keep the cash balances as
deposits free of interest, to receive and to make payments on behalf of the Government
and to carry out their exchange remittances and other banking operations. The Reserve
Bank of India helps the Government - both the Union and the States to float new loans
and to manage public debt. It acts as adviser to the Government on all monetary and
banking

matters.

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the
Banking Companies Act of 1949, every scheduled bank was required to maintain with the
Reserve Bank a cash balance equivalent to 5% of its demand liabilities and 2 per cent of
its time liabilities in India.
The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible
securities or get financial accommodation in times of need or stringency by rediscounting
bills of exchange. Since commercial banks can always expect the Reserve Bank of India
to come to their help in times of banking crisis the Reserve Bank becomes not only the
banker's bank but also the lender of the last resort.
ControloFCredit

18

The Reserve Bank of India is the controller of credit i.e. it has the power to influence the
volume of credit created by banks in India. It can do so through changing the Bank rate
or through open market operations. According to the Banking Regulation Act of 1949,
the Reserve Bank of India can ask any particular bank or the whole banking system not to
lend to particular groups or persons on the basis of certain types of securities. As supreme
banking authority in the country, the Reserve Bank of India, therefore, has the following
powers:
(a) It holds the cash reserves of all the scheduled banks.
(b) It controls the credit operations of banks through quantitative and qualitative controls.
(c) It controls the banking system through the system of licensing, inspection
and calling for information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled
banks.

Custodian of Foreign Reserves:

The Reserve Bank of India has the responsibility to maintain the official rate of
exchange. According to the Reserve Bank of India Act of 1934, the Bank was required to
buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The
rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the
exchange rate fixed at lsh.6d. Though there were periods of extreme pressure in favour of
or against the rupee. After India became a member of the International Monetary Fund in
1946, the Reserve Bank has the responsibility of maintaining fixed exchange rates with
all other member +countries of the I.M.F.Besides maintaining the rate of exchange of the
rupee, the Reserve Bank has to act as the custodian of India's reserve of international
currencies.

Supervisory function:
In addition to its traditional central banking functions, the Reserve bank has certain nonmonetary functions of the nature of supervision of banks and promotion of sound
19

banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949
have given the RBI wide powers of supervision and control over commercial and cooperative banks, relating to licensing and establishments, branch expansion, liquidity of
their assets, management and methods of working, amalgamation, reconstruction, and
liquidation. The RBI is authorized to carry out periodical inspections of the banks and to
call for returns and necessary information from them.
The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new
responsibilities on the RBI for directing the growth of banking and credit policies
towards more rapid development of the economy and realization of certain desired social
objectives.

Promotional functions:

The Bank now performs a variety of developmental and promotional functions, which, at
one time, were regarded as outside the normal scope of central banking. The Reserve
Bank was asked to promote banking habit, extend banking facilities to rural and semiurban areas, and establish and promote new specialized financing agencies. It set up the
Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial
Development Bank of India also in 1964, the Agricultural Refinance Corporation of India
in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions
were set up directly or indirectly by the Reserve Bank to promote saving habit and to
mobilize savings, and to provide industrial finance as well as agricultural finance. The
RBI has set up the Agricultural Refinance and Development Corporation to provide longterm finance to farmers.

20

FACTS FILES OF BANK IN INDIA

The first, oldest, largest, the biggest all such information in this section:
The First Bank in India to be given a ISO

Canara Bank

certification
The First Bank in Northern India to get ISO

Punjab and Sind

certification for their selected branches

Bank

The First Indian bank to be have started solely with

Punjab national

the Indian capital

bank

The First among Private sector Bank in Kerala to

South Indian Bank

become a scheduled bank in 1946 under the RBI

act1946.
Indias oldest, largest and most successful

State Bank Of

commercial bank, offering the widest possible range

India.

of domestic, international,and NRI products and

services through its vast network in India and
Overseas.
The Oldest public sector bank in india having

Allabahad bank of

branches all over the india. And serving the

India

customers from the last 132 yrs.

Public Sector Banks in India:

Among the Public Sector Banks in India, United Bank of India is one of the 14 major
banks which were nationalized on July 19, 1969. Its predecessor, in the Public Sector
Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four
banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918),
Comilla

Union

Bank

Ltd.

(1922)

and

Hooghly

The following are the list of Public Sector Banks in India

21

Bank

Ltd.

(1932).

ALLAHABAD BANK
ANDHRA BANK
BANK OF BARODA
BANK OF INDIA
BANK OF MAHARASTRA
CANARA BANK
CENTRAL BANK OF INDIA
CORPORATION BANK
DENA BANK

List of State Bank of India and its subsidiary, a Public Sector Banks
STATE BANK OF INDIA
STATE BANK OF BIKANER & JAIPUR
STATE BANK OF HYDERABAD
STATE BANK OF INDORE
STATE BANK OF MYSORE
STATE BANK OF SAURASTRA
STATE BANK OF TRAVANCORE

PRIVATE SECTOR BANKS IN INDIA:

Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was IndusInd
Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the
tenth largest development bank in the world as Private Banks in India and has promoted
world class institutions in India.

List of Private Banks in India

DHANALAKSHMI BANK
DEVELOPMENT CREDIT BANK
FEDERAL BANK
HDFC BANK
22

 ICICI BANK
IDBI BANK
INDUSIND BANK
CO-OPERATIVE BANKS IN INDIA:
The Co operative banks in India started functioning almost 100 years ago. The
Cooperative bank is an important constituent of the Indian Financial System, judging
by the role assigned to co operative, the expectations the co operative is supposed to
fulfill, their number, and the number of offices the cooperative bankoperate. Though
the co operative movement originated in the West, but the importance of such banks
have assumed in India is rarely paralleled anywhere else in the world.
The cooperative banks in India play an important role even today in rural financing.
The businesses of cooperative bank in the urban areas also have increased
phenomenally in recent years due to the sharp increase in the number of primary cooperative banks. Co operative Banks in India are registered under the Co-operative
Societies Act. The cooperative bank is also regulated by the RBI. They are governed by
the Banking Regulations Act 1949 andBanking Laws (Co-operative Societies) Act,
1965.
REGIONAL RURAL BANKS IN INDIA:
Rural banking in India started since the establishment of banking sector in India. Rural
Banks in those days mainly focused upon the agro sector. Regional rural banks in India
penetrated every corner of the country and extended a helping hand in the growth
process

of

the

country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI are
spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to
North East. The total number of SBIs Regional Rural Banks in India branches is 2349
(16%). Till date in rural banking in India, there are 14,475 rural banks in the country of
which

2126

(91%)

are

located

NABARD

23

in

remote

rural

areas.

National Bank for Agriculture and Rural Development (NABARD) is a development

bank in the sector of Regional Rural Banks in India. It provides and regulates credit and
gives service for the promotion and development of rural sectors mainly agriculture,
small scale industries, cottage and village industries, handicrafts. It also finances rural
crafts and other allied rural economic activities to promote integrated rural
development. It helps in securing rural prosperity and its connected matters.
FOREIGN BANKS IN INDIA:
Foreign Banks in India always brought an explanation about the prompt services to
customers. After the set up foreign banks in India, the banking sector in India also
become competitive and accurative.A new rule announced by the Reserve Bank of India
for the foreign banks in India in this budget has put up great hopes among foreign banks
which allow them to grow unfettered.
Now foreign banks in India are permitted to set up local subsidiaries. The policy
conveys that foreign banks in India may not acquire Indian ones (except for weak banks
identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open
branches freely.

.List of Foreign Banks in India

ABU DHABI COMMERCIAL BANK

ANZ GRINDLAYS BANK
BANK OF AMERICA
CITI BANK
CHINA TRUST COMMERCIAL BANK
HSBC
STANDARD CHARTERED BANK
ABN-AMRO BANK
DEUTSCHE BANK
JPMORGAN CHASE BANK

24

BANKING STRUCTURE IN INDIA:

In todays dynamic world banks are inevitable for the development of a country. Banks
play a pivotal role in enhancing each and every sector. They have helped bring a draw of
development on the worlds horizon and developing country like India is no exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle for
moving finance from those who have surplus money to (however temporarily) those who
have deficit. In everyday branch terms the banks channel funds from depositors whose
accounts are in credit to borrowers who are in debit.
Without the intermediary of the banks both their depositors and their borrowers would
have to contact each other directly. This can and does happen of course. This is what has
lead to the very foundation of financial institution like banks.
25

Before few decades there existed some influential people who used to land money. But a
substantially high rate of interest was charged which made borrowing of money out of
the reach of the majority of the people so there arose a need for a financial intermediate.
The Bank have developed their roles to such an extent that a direct contact between the
depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking deposits,
money transfer and making advances. Those three are closely related to each other, the
objective being to lend money, which is the profitable activity of the three. Taking
depositsgenerates funds for lending and money transfer services are necessary for the
attention of deposits. The Bank have introduced progressively more sophisticated
versions of these services and have diversified introduction in numerable areas of activity
not directly relating to this traditionaltrinity.

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks

State co-op
Banks

Commercial
Banks

Non-Schedule Banks

Central co-op
Banks and
Primary Cr.
26
SocietiesSocie

Commercial Banks

Indian

Foreign

Public Sector
Banks

Private Sector
Banks

State Bank of
India and its
Subsidiaries

Other Nationalized
Banks

HDFC,
ICICI, etc

Regional
Rural Banks

INDIAN BANKING INDUSTRY ANALYSIS:

The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year 1991,
from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have been
swift. All most all the sector operating in the economy was affected and banking sector is
no exception to this. Thus the whole of the banking system in the country has undergone

27

a radical change. Let us see how banking has evolved in the past 57 years of
independence.
After independence in 1947 and proclamation in 1950 the country set about drawing its
road map for the future public ownership of banks was seen inevitable and SBI was
created in 1955 to spearhead the expansion of banking into rural India and speed up the
process of magnetization.
Political compulsions brought about nationalization of bank in 1969 and lobbying by
bank employees and their unions added to the list of nationalized banks a few years later.
Slowly the unions grew in strength, while bank management stagnated. The casualty was
to the customer service declined, complaints increased and bank management was unable
to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision of the
future and the banks erred badly in opposing the technology up gradation of banks. They
mistakenly believed the technology would lead to retrenchment and eventually the
marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets. But the
prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and
capital adequacy ratio become mandatory. The cumulative impact of all these changes
has been on the concept of state ownership in banks. It is increasingly becoming clear
that the state ownership in bank is no longer sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private sector
banks and foreign banks.
MAJOR PLAYER IN INDIA
1. HDFC BANK LTD
2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
28

5. BANK OF BARODA LTD

6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

COMPANY OVERVIEW
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 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
29

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 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 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.
HDFC Bank Limited (the Bank) is an India-based banking company engaged in
providing a range of banking and financial services, including commercial banking and
treasury operations. The Bank has a network of 1412 branches and 3295 automated teller
machines (ATMs) in 528 cities and total employees is 52687.

BRANCHES (NOS)

1412
684

2007

761

2008

30

2009

ATMs (Nos.)

3295
1605

2007

29.1

2007

1977

2008

2009

43.9

38.2

2008

2009

Company Background

Industry

Finance - Banks - Private Sector.

Business Group

HDFC Group

Incorporation Date

31/12/1994

Public Issue Date

31/12/1995

Face Value

10.0000

31

Company/Business Registration No

INE040A01018

Key Officials CEO

Adityapuri

HISTORY OF HDFC BANK

HDFC BANK LTD 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.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group.HDFC BANK LTD was amongst the first to set
up a bank in the private sector. The bank was incorporated on 30th August 1994 in the
name of HDFC Bank Limited, with its registered office in Mumbai. It commenced
operations as a Scheduled Commercial Bank on 16th January 1995. The bank has grown
consistently and is now amongst the leading players in the industry
32

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 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 to promote a bank in
the Indian environment In a milestone transaction in the Indian banking industry, Times
Bank was merged with HDFC Bank Ltd., effective February 26, 2000.

MISSION
I.
II.

World Class Indian Bank.

Benchmarking against international standards.

III.

To build sound customer franchises across distinct businesses.

IV.

Best practices in terms of product offerings, technology, service levels, risk

management and audit & compliance.
33

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business philosophy is
based on four core values such as:1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.

OBJECTIVE
The objective of the HDFC 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 requirements. The HDFC Bank plus and the investment advisory services
34

programs have been designed keeping in mind needs of customers who seeks distinct
financial solutions, information and advice on various investment avenues.

BUSINESS STRATEGY
I.
II.
III.

Increasing market share in Indias expanding banking

Delivering high quality customer service
Maintaining current high standards for asset quality through disciplined credit risk
management

IV.

Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

Bank logo
Type

Private company

Traded as

BSE: 500180
NSE: HDFCBANK
35

NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent
Industry

Banking, Financial services

Founded

August 1994

Headquarters

Mumbai, Maharashtra, India

Area served

Worldwide

Key people

AdityaPuri (MD)

Products

Investment Banking
Investment Management
Wealth Management
Private Banking
Corporate Banking
Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards

Revenue

74,373.22 crore(US$11 billion)

(2016)

Profit

12,817.33
crore(US$1.9 billion) (2016)

Total assets

687,892 crore(US$100 billion)

(2015)

Total equity

505.64 crore(US$75 million)

Number of

76,286 (March 2015)

employees
Website

HDFCBank.com
36

Registered Office
HDFC Bank House, SenapatiBapatMarg, Lower Parel
Mumbai - 400013
Maharashtra - India
Phone : 66521000, 24988484
Fax : 24960737, 24965235
Email : shareholder.grievances@hdfcbank.com
Internet : N.A.

BOARD OF DIRECTORS
PERSON

DESIGNATION

Mr.JagdishKapoor

Vice President

Mr.AdityaPuri

Managing Director

Mr.PareshSukthankar

Executive Director

Mr. Harish Engineer

Executive Director

Mr.Keki M. Mistry

Director

Mr.AshimSamanta

Director

37

Mr.ArvindPande

Director

Mrs.RenuKarnad

Director

Mr. C M Vasudev

Director

Mr.Gautam Divan

Director

Dr.PanditPalandeDirector

TOP MANAGEMENT
AbhayAima

Equities & Private Banking and NRI Business

Anil Jaggia

Information Technology and Legal

AshishParthasarth

Treasury

Bharat Shah

Merchant SeRvices

G Subramanian

Audit & Compliance

KaizadManeck

Credit & Market Risk

MandeepMaitra

H.R, Admin & Infrastructure

NavinPuri

Branch Banking

PralayMondal

Assets & CREDIT CARDS

38

Rahul N Bhagat

Retail Liabilities, Marketing & Direct Banking Channels

Ananthanarayan

Operations

SashiJagdishan

Finance

Sudhir Joshi

Treasury

BUSINESS HEADS
A Asokan

Emerging Enterprise Group

Amit Kumar

Retail Branch Banking-West 1

Anil Nath

Business Banking - Working Capital & Retail Agri

Arup Rakshit

Treasury

AshimaKhannaBhat

Emerging Corporate Group

Ashok Khanna

Retail Assets TW

BhaveshChandulal

Wholesale Operations

BijuPillai

Retail Assets - EL,PL,LAS & GOLD

BirendraSahu

retail Operations

Deepak Maheshwari

Credit and Market Risk

Gsv Surya Prasad

Information Technology

Harpreet Singh

NRI Business

Jimmy M Tata

Corporate Banking
39

Munish Mittal

Information Technology

NandkishorLaxman

Financial Institution Group

NitinSubramanya

Equities and Private Banking

ParagRao

Credit Cards

RajenderSehgal

Financial Institution Group

RohitGaurav

Marketing

Sanjay B Dongre

Legal

Sanjeev Patel

Direct Banking Channel

AWARDS

YEAR-2009
EUROMONEY

'BEST BANK IN INDIA'

AWARDS 2009
Economic Times

Most Trusted Brand - Runner Up

Brand Equity &

Nielsen Research
annual survey
2009
Asia Money 2009

'Best Domestic Bank in India'

Awards
IBA Banking

'Best IT Governance Award - Runner up'

Technology
Awards 2009
Global Finance

'Best Trade Finance Bank in India for 2009

Award
IDRBT Banking

'Best IT Governance and Value Delivery'

Technology
40

Excellence Award
2008
Asian Banker

'Asian Banker Best Retail Bank in India Award 2009 '

Excellence in
Retail Financial
Services

YEAR-2008
FINANCE ASIA 'BEST BANK AND BEST CASH MANAGEMENT BANK'
COUNTRY
AWARDS

FOR

ACHIEVEMENT
2008
CNN-IBN

'Indian of the Year (Business)'

Nasscom IT User 'Best IT Adoption in the Banking Sector'

Award 2008
Business India

'Best Bank 2008'

Forbes Asia

Fab 50 companies in Asia Pacific

Asian

Banker Best Retail Bank 2008

Excellence
Retail

in

Financial

Services
Asiamoney

Best local Cash Management Bank Award voted by

Corporates

Microsoft
Indian

& Security Strategist Award 2008

Express

Group
41

World

Trade For outstanding

contribution

to

international

trade

Center Award of services.

honour
Business Today

One of India's "Most Innovative Companies"

Financial Express- Best Bank Award in the Private Sector category

Ernst

& Young

Award
Global

HR 'Employer Brand of the Year 2007 -2008' Award - First

Excellence
Awards

Runner up, & many more

Asia

Pacific HRM
Business Today

'Best Bank' Award

YEAR-2007
DUN

& 'CORPORATE BEST BANK' AWARD

BRADSTREET
AMERICAN
EXPRESS
CORPORATE
BEST

BANK

AWARD 2007
The

Bombay 'Best Corporate Social Responsibility Practice' Award

Stock

Exchange

and

Nasscom

Foundation's
Business

for

Social
Responsibility
Awards
NDTV Profit

Best Bank Award in the Private sector category.

The Asian Banker Best Retail Bank in India

42

Excellence
Retail

in

Financial

Services
Asian Banker

Our Managing Director AdityaPuri wins the Leadership

Achievement Award for India

BUSINESS SEGMENT
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:

Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

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-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through
43

alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans for
Two-wheelers. It is also a leading provider of Depository Participant (DP) services for
retail customers, providing customers the facility to hold their investments in electronic
form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Master card Maestro debit card as
well. The Bank launched its credit card business in late 2001. By September 30, 2005,
the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is
also one of the leading players in the "merchant acquiring" business with over 50,000
Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments.

Treasury:
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on
this investment portfolio.

44

PRODUCT OF HDFC BANK

ACCOUNT & DEPOSITS SERVICE
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter
what a customer's need and occupational status, we have a range of solutions that are
second to none. Whether you're employed in a company and need a simple Savings
account or run your own business and require a robust banking partner, HDFC Bank not
only has the perfect solution for you, but also can recommend products that can augment
your planning for the future.
It includes these services:

Saving accounts.
Current accounts.
Fix deposits.
Demate account.
Safe deposits lockers.

Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever persons occupation, bank have
confident that person will find the perfect banking solution. There some saving accounts
like:

45

 Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw
Demand Drafts and withdraw cash. Check up on your balances from the comfort
of your home or office through Net Banking, Phone Banking and Mobile
Banking. If you need money urgently then you can take money from the ATM
machine. There are 1977 ATM centers across the country.

Saving plus Account

Introducing the best banking option for you with HDFC Bank Savings plus Account.
Now you can get access to some of the finest banking facilities with HDFC Bank's
Savings plus Account. All you have to do is maintain an Average Quarterly Balance of
Rs. 10,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded with
maximum benefits to make your banking experience a pleasure. By maintaining an
average quarterly balance of just Rs. 25,000/- you get a host of premium services from
HDFC Bank absolutely free.

Senior Citizen Account

HDFC Bank appreciates your needs and endeavors, which is why, they present an
account especially dedicated to customer, which like a dutiful child will help you fulfill
your needs in the best manner possible.

No frills Account
In an effort to make banking simpler and more accessible for customers, bank has
introduced the 'No Frills' Savings Account, which offers customer all the basic banking
facilities. Customer can even avail of services like Net Banking, Mobile banking free of
cost. In this customer can put Zero Initial Pay-in and a Zero Balance account.

Institutional saving accounts:

46

A specially designed account that offers twin benefits of a savings as well as a current
account. Customers funds continue to earn you interest while he enjoys hassle-free
banking
& a host of other features. All this and more in a Zero Balance account.

Salary Accounts
In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job deposit their
salary in to the salary account a person can get salary.
There are various kinds of saving accounts in the HDFC Bank like:

Pay roll account.

Classic salary account.
Regular salary account.
Premium salary account.
Defence salary account.
No frills salary account.
Reimbursement salary account.

Kids advantage account

Start saving for your child today and secure his/her future a sentence tells by the Hdfc
bank. Open a Savings Account and transfer money every month into customers Kids
Advantage Account and watch the savings grow as customers child grows. The
accumulated savings in the Kids Advantage Account can over the years help in meeting
customer child's needs.
Main features and benefits of this account are as follow:-

Current accounts
HDFC Bank Current Account gives the power of inter-city banking with a single account
and access to more than cities. From special cheques that get treated at par with local
ones in any city where 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, banks priority services have become
47

the benchmark for banking efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any of
our 761 branches in 327 cities. Not only that, he can do most of his banking transactions
from the comfort of his office or home without stepping out.
There are various kinds of current account in this bank like: Plus current account
HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining an
average quarterly balance of Rs. 100,000.

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 power of inter-city
banking with a single account.
From special cheques that get treated at par with local ones in any city where bank 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, banks priority services have become the
benchmark for banking efficiency. Trade Current Account requires maintaining an
average quarterly balance of Rs. 40,000.

Premium current account

Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking account that
requires an average quarterly balance of only Rs. 25,000, offers Payable-At-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 account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and through

48

the ATM.

Regular current account

A Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, customer can access 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
account. Regular Current Account requires maintaining an average quarterly balance of
only Rs. 10,000.
With a vast network of branches in cities all over the country, and access to a multitude
of ATM's, customer can keep track of all transactions anytime.

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that
allows. Deposit the reimbursements receive from company/organization on a
monthly basis.
To open this account a person has to follow these processes:
Procure an Account Opening Document (AOD) from HDFC Bank. (If person has
just joined, first request to company to open up a Salary Account for particular
person).
Mention Salary Account number and Debit Card number on the AOD so that
Debit card can be linked to both, Salary Account as well as new Reimbursement
Account.
Request company to directly credit cash payments to the Reimbursement Account

RFC Domestic Account

Full name of this account is Resident foreign currency account.
Have you accumulated foreign currency from travelling abroad frequently?
Received gifts from relatives in foreign currency? Or earned it by any other
means as approved by the Reserve Bank of India?
If so, open Resident Foreign Currency Domestic Account and manage foreign
currency efficiently. Person can choose to set up your account either in US Dollar,

49

Great Britain Pound or Euro.

To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. Open account with an
initial amount as per the following-US Dollar = 250 Great Britain Pound = 200
Euro = 250 and maintain an Average Quarterly Balance of the same amount.

Flexi current account

Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current
Account is the answer to changing banking needs during peak seasons.
With HDFC Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits
are a multiple of the balance you maintain in Current Account. So, during peak seasons,
customer get the benefit of higher transaction limits due to the higher average balances
maintained in account. Whats more, during lean seasons, person need not worry about
maintaining huge balances to enjoy high transaction limits, which person anyway may
not need. Flexi Current Account requires maintaining a minimum Average Monthly
Balance (AMB) of just Rs. 75,000.

Apex current account

The top position is always the desirable position. With the Apex current account, take
business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs, this
account makes sure person make the most of every business opportunities coming his
way. Unlimited, free, anywhere Banking experience at the APEX is reserved for person
who joints this.

Max current account

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

Fix deposits service

50

Long-term investments form the chunk of everybody's future plans. An alternative to

simply applying for loans, fixed deposits allow to borrow from own funds for a limited
period, thus fulfilling needs as well as keeping savings secure.
People can invest his/her money into either in security market or gold or mutual fund or
into a fix deposits. People always go to that way where he/she can get more benefits and
minimum risks. So, for this purpose he has a better chance to deposits money in to the fix
deposit.
If people believe in long-term investments and wish to earn higher interests on his/her
savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to 9.75%
on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens. What's more
NO PENALTY if withdraw part of the FD in times of need. Flexibility, Security and High
Returns all bundled into one offering.

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their money in to a fix
deposit in the bank and can get the benefits of these facilities.

Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under Sec
80C of the Income Tax Act,1961 subject to necessary declarations taken from the
Customer.

Super saver facility

Customer can enjoy a high rate of interest along with the liquidity of a Savings Account
by opting for a Super Saver Facility on his or her savings account. Avail of an overdraft

51

facility of up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility
Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits?
Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to
Savings or Current Account and use it to fall back on in case of emergencies. A deficit in
Savings or Current Account is taken care of by using up an exact value from Fixed
Deposit. Since deposits are broken down in units of Re 1/-, customer will lose interest
only for the actual amount that has been withdrawn.

Demat account service

Nowadays share market is becoming is the main occupation of the person. So to avoid
faulty processes demat account is really most important for the share market and for the
safety of shares it is most important.
HDFC BANK is one of the leading Depository Participant (DP) in the country
with over 8 Lac demat accounts.
HDFC Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with -National Securities
Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

Safe deposit locker

A Safe Deposit Locker with HDFC Bank is the solution to persons fear. Located at select
branches in cities all over the country, banks lockers ensure the safe keeping of
valuables.
Eligibility
An individual (not minor), firms, limited company, associations, clubs, trusts,
societies, etc may hire a locker.
Advantages of safe deposit locker in HDFC bank
Wide Availability.
Lockers available in various sizes. i.e. Small, Medium, Large and Extra Large
with varying rents.
52

 Lockers are rented out for a minimum period of one year. Rent is payable in
advance.
No deposits are required to avail a locker. Just open an account and get the locker
facility.
There is a nominal annual charge, which depends on the size of the locker and the

centre in which the branch is located.

Nomination for Safe Deposit Locker
The Lockers and their contents can be nominated to people near and dear to you.
Nomination facility is available to individual hirer of Safe Deposit Locker.
In the case of a sole hirer of a safe deposit locker, nomination can be made in

favour of only one individual.

Where the safe deposit locker is hired in the name of a minor, the nomination

shall be made by a person lawfully entitled to act on behalf of the minor.

Terms & Conditions
For obtaining a Locker at HDFC Bank you must be an account holder with Bank.
Lockers can be allotted individually as well as jointly.
The Locker holder is permitted to add or delete names from the list of persons

who can operate the Locker and can have access to it.
Loss of Key is to be immediately informed to the concerned Branch.

LOAN SERVICES
In todays competitive world everything happens only with the help of money or through
the money every person need money. But some time a person has not cash on hand at that
time he needs lone either from any friend or from any financial institute. Lone does not
mean that only lower class person needs it but also upper class person it is needed.
As per the requirement of the every person there are much type of loans are there in the
HDFC bank.

Personal loan
A person has so many dreams but some time due to scarcity of money a dream cant be
satisfy. So, here one solution for that person this is personal loan. From this he/she can
fulfill their needs or requirement. It can be anything either a dream of vacation or
son/daughters admission to college or any wedding, so personal loan can be helpful in
this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast, same
53

over here any person want to get a personal loan with the nominal documents he can get
the loan.

Home loan
HDFC Bank brings HDFC home loans to doorstep. With over 30 years of experience, a
dedicated team of experts and a complete package to meet all housing finance needs,
HDFC Home Loans, help people realize dream.

Vehicles loan
Nowadays the life is being so fast, time value is becoming more important so to reach at
the destination of any business related occasion or for a boy to reach college or any
where at the fix time there are so many requirement of vehicles. But every people have
no capacity to purchase vehicles with cash so for that here in the HDFC bank vehicles
loan is available. There are many types of vehicles loan.
Types of vehicles loan:

Two wheeler loans.

New car loan.
Used car loan.
Tractor loan (for agree culture business).
Commercial vehicle loan.

So, as per the requirement of the person there are these types of loans are available this
are at the chip rate and Hassel free from more documentation and other procedure. And
commercial businessman can get the benefits of the commercial vehicles loans. Thus as
per the need of different people there are vehicle loans available. And also terms and
condition are different as per the requirement.

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs. The
procedure is simple, documentation is minimal and approval is quick. It is helpful to
person in repairing of house, School admission or also in the family holiday.

Gold loan
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With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A
person can get 70% loan on the value of the gold jewellery and ornaments. There is also
availability of the overdraft on the gold jewellery. With this a customer can get free
additional services like free personalized cheque book, free international debit card, and
free net banking phone banking services.

Educational loan
Nowadays important of education becoming very high. ASs it important becoming high it
is becoming costly. So in the higher education some time people can not effort a high
price at a same time. So, there is education loan is also available for the student.
A person can get loan up to 10 lakhs to study in India and 20 lakhs if he wants to study
in abroad. Loan available up to tenure of 7 years including moratorium period.
Loans disbursed directly to the educational institution. It is released as per fee schedules
of institutes. Exclusive Telegraphic Transfer facility available for courses abroad. Loans
available for short duration/ job oriented courses also.

Loan against security

With HDFC Bank's Loan against Securities, person can get an overdraft against
securities like Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold Exchange
Traded Fund(ETF),NABARD's BhavishyaNirman Bonds, Policies issued by LIC &
Select Private Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and
Gold Deposit Certificates, while still retaining ownership. And the best part is that he can
continue to enjoy all his shareholder benefits such as rights, dividends and bonuses Loan
available to NRIs against Shares, Mutual Funds (equity, Debt, FMPs), US64 Bonds,
Insurance Policies, NSC, and KVP.

Loan against property

HDFC Bank brings Loan Against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and
55

fund his child's education and much more. He can depend on bank to meet all his
business requirements even to purchase a new shop or office for business. Loan to
purchase Commercial Property (LCP) is a specially designed product to help person
expand his business without reducing the capital from his business.
These are loans services providing by HDFC bank which are very hassle free and really
benefits for most of customer and most of customer are satisfied by the loan services
providing by the bank.

CARD SERVICES
In todays competitive and fast time card services providing by the banks are really very
important to every person and every business needs or to take meal in to the hotel or to
purchase jewellery from the jewellery shops cards are playing good role in the banking
sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are looking
to add to his buying power, conducting cashless shopping, or budgeting his expenditure,
he will find a card that suits him.

Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams. Some
dreams can't wait. If there's something person has always wanted. If a person wanted
fulfills his wants he can get benefits from the HDFC banks credit cards
facilities.Different types of credit:

Classic cards
Silver Credit Card.
Value plus Credit Card.
Health plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
56

Visa Signature Credit Card

World MasterCard
Commercial Cards
Corporate Credit Card

Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.
Types of debit card:

Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Easy Shop International Business Debit Card.
Easy Shop Woman's Advantage Debit Card.
Easy Shop NRO Debit Card.
Kisan Card.

Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.

ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card.
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card

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INVESMENT AND INSURANCE SERVICE

Nowadays a ward investment is becoming more popular. Person invest their money in to
various schemes or in to the gold or share market etc. but some time he is in to the
difficult situation, for that bank help person invest wisely through financial and
investment services.
Types of investment: -

Mutual Funds
Invest through the Mutual Fund route to meet varied investment objectives.

Insurance

Traditional Plans

Unit Linked Plans

HDFC children's PLAN.

HDFC Unit Linked Young Star Plus II.

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HDFC Money Back Plan.

HDFC Unit Linked Young Star Suvidha.

HDFC Savings Assurance Plan.

HDFC Unit Linked Young Star

SuvidhaPlu

HDFC Assurance Plan.

HDFC Unit Linked Pension.

HDFC Term Assurance Plan.

HDFC Unit Linked Pension Plus.

HDFC Loan Cover Term Assurance Plan.

HDFC Unit Linked Endowment Plus II.

HDFC Endowment Assurance Plan.

HDFC Unit Linked Endowment

Suvidha.

HDFC Single Premium Whole of Life

HDFC Unit Linked Endowment Suvidha

Insurance

GENERAL AND HEALTH INSURANCE

Complete protection for business, health, travel & more.

Bonds

A secure investment avenue giving stable returns with tax benefits.

Financial Planning
Start Now Plan investments to meet financial goals
Knowledge Centre
Profit from research and make informed investment decisions.
Equities & Derivatives
Leverage banks vast information repository and transact online.
Mudra Gold Bar
Buy 24 Karat gold bars made in Switzerland and certified by Assay.

FOREX AND TRADE SERVICE

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Nowadays businesses becoming worldwide e.g. India to America but main problems are
about monitory transaction because at every country the currency become changed so for
that banks are playing a very important for the businesses.
If people need to deal in foreign currency and keep tabs on exchange rates every now and
then, transfer monies to India, make payments etc., HDFC Bank has a range of products
and services that people can choose from to transact smoothly, efficiently and in a timely
manner.Bank offering following Foreign Exchange Products and Services.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting
money.

Travelers Cheques.
Foreign Currency Cash.
Foreign Currency Drafts.
Cheque Deposits.
Remittances.
Cash to Master.
Trade Services.
Forex Services Branch Locator.

Important guidelines and schedules All Foreign Exchange transactions are conducted by
strictly adhering to RBI guidelines. Depending on the nature of transaction or point of
travel, people will need to understand his Foreign Exchange limits.

RBI Guidelines.
Forex Limits.
Non HDFC Bank Account Holders.
FAQs

PAYMENT SERVICE
Nowadays life of a person become very stressful and he/she becoming busy with their
own business, but they have to payment for something so for that reason banks payment
services become started. With HDFC Bank's payment services, person can bid goodbye
to queues and paper work. Banks range of payment options make it easy for pay for a
variety of utilities and services.
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Verified By Visa
Do you want to be worry free for your online purchases?
Now you can shop securely online with your existing Visa Debit/Credit card.

Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What more,
you can now use your HDFC Bank Debit Card also for online purchases.

Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the art
POS Machines or through your website and experience hassle free payment acceptance.
Prepaid Mobile Refill
If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile
Phone

with

this

service.

Bill Pay
Pay your telephone, electricity and mobile phone bills at your convenience. Through the
Internet, ATMs, your mobile phone and telephone - with Bill Pay, our comprehensive bill
payments solution.

Visa Bill Pay

Pay your utility bills from the comfort of your home! Pay using your HDFC Bank Visa
credit card and forget long queue and late payments forever

Pay Now
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Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions and
donations; no registration required. Enjoy credit free period and reward points as per your
credit card features.

Insta Pay
Pay your bills, make donations and subscribe to magazines without going through the
hassles of any registration.

Direct Pay
Shop or Pay bills online without cash or card. Debit your account directly with our Direct
Pay service!

Visa Money Transfer

Transfer funds to any Visa Card (debit or credit) within India at your own convenience
through HDFC Bank's Net Banking facility.

e-Monies National Electronic Funds Transfer

Transfer funds from your account to other Bank accounts across India - FREE of cost.

Online Payment of Excise & Service Tax

Make your Excise and Service Tax payments at your own convenience through HDFC
Bank's Net Banking facility.
Religious Offerings
Now donate to your favourite temple easily and securely using HDFC BANK's Net
Banking.

IMPERIA/PREFERRED/CLASSICBANKING

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As a special customer bank providing a TAJ to customer with name imperia/preferred

customer. For that bank provide a special service to their customer. HDFC Bank's
preferred/imperia Programme is the royal decree that enhances the exclusivity that you
are accustomed to. It makes you feel special at every step, pampering with services those
others can only dream about. This service goes beyond the obvious, rises above the
expected, so that the whole world can see, that even today, the grandeur and
magnificence of royalty is alive and well.
Thus as retail banking service bank providing really good and beneficial services to their
customer and as family member they are providing good services to every customer
either they are came business related or anything. So for this reason HDFC bank playing
a good role in the customers life for their monitory transaction.

NRI BANKING
It can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. The funds
in this account are not repatriable (only interest accrued is repatriable).
FCNR (Foreign Currency Non Resident Accounts)
It can be in the form of fixed Deposits only, in the five major currencies, namely US
Dollars, GBP, DM, Euro, and Japanese Yen. The funds in this account are fully
repatriable
With a view to attract the savings and other remittance into India through banking
channels from the person of Indian Nationality / Origin who are residing abroad and
bolster the balance of payment position, the Government of India introduced in 1970
Non-Resident(External) Account Rules which are governed by the Exchange Control
Regulations.
The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain
benefits like exemptions from taxes in India, free repatriations facilities, etc.
Deposit types
63

NRI-Banking facilitates the NRI customer to open the following account types.
NRE (Non Resident External Accounts)
It can be in the form of Savings, Current or fixed deposits in Indian rupees. The funds in
this account are fully repatriable.
NRO (Non Resident Ordinary Accounts)

WHOLESALE BANKING
Wholesale banking is the provision of services by banks to the like of large corporate
clients, mid-sized companies, real estate developers and investors, international trade
finance businesses and institutional customers, such as pension funds and government
entities/agencies. Also included is banking services offered to other financial institutions.
In essence, wholesale banking services usually involve high value transactions.
Wholesale banking compares with retail banking, which is the provision of banking
services to individuals.
Wholesale banking services
Corporate service
Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in
India, a wide array of commercial, transactional and electronic banking products. We

64

achieve this through innovative product development and a well-integrated approach to

relationship management.

Large Corporate
Supply Chain Partners
Agricultural Lending
Small & medium term enterprises

HDFC Bank understands how much of hard work goes into establishing a successful
SME. Bank also understands that business is anything but "small" and as demanding as
ever. And as business expands and enters new territories and markets, person need to
keep pace with the growing requests that come in, which may lead to purchasing new, or
updating existing plant and equipment, or employing new staff to cope with the demand.
That's why HDFC Bank has assembled products, services, resources and expert advice to
help ensure that your business excels.
The following links will help identify individual needs.

Funded Services.
Non-Funded Services.
Specialized Services.
Value Added Services.
Internet Banking.

Financial institutions & trusts

Banks.
Financial Institutions.
Mutual Funds.
Stock Brokers.
Insurance Companies.
Commodity Businesses.
Trusts.

Government sector
HDFC Bank acts as an active medium between the government and the customers by means of
various services. These services include:
Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect
taxes and Sales Tax collections at their local HDFC Bank.
65

 E-Ticketing - Helps the customer by providing him a direct access to book a Railway
Ticket online and get it home delivered.
Opening of L/C's is done by the bank on behalf of Government of India, Mints and
Presses, thus facilitating imports for the Government.
Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli
Municipal Corporation, is undertaken by the Bank.
Collection of stamp duty is done via franking mode in the state's of Maharashtra &
Gujarat.
The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort,
Chembur, Lower Parel, Mira Road, Thane (TalaoPali), Panvel, Ratnagiri, Pune(FC
Road), Kolhapur, Nagpur, Pimpri.
The Stamp Duty Franking Facility is available at following branches in Gujarat
Disbursement of Pension to retired Employees of Central Govt and Defence is directly
done by HDFC Bank along with the disbursement of pension to the members of EPFO
(Employees Provident Fund Organisation).
Electronic Collection of fees on behalf of DGFT is done by the bank too.

66

67

SWOT ANALYSIS
SWOT Analysis is a powerful technique for understanding your Strengths and
Weaknesses, and for looking at the Opportunities and Threats you face. Used in a
business context, it helps you carve a sustainable niche in your market. Used in apersonal
context, it helps you develop your career in a way that takes best advantage of your
talents, abilities and opportunities.

SWOT ANALAYSIS OF HDFC BANK

STRENGTH

Right strategy for the right products.

Superior customer service vs. competitors.
Great Brand Image
Products have required accreditations.
High degree of customer satisfaction.
Good place to work
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.
WEAKNESSES

Some gaps in range for certain sectors.

Customer service staff needs training.
Processes and systems, etc
Management cover insufficient.

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 Sectoral growth is constrained by low unemployment levels and competition for

staff

OPPORTUNITIES

Profit margins will be good.

Could extend to overseas broadly.
New specialist applications.
Could seek better customer deals.
Fast-track career development opportunities on an industry-wide basis.
An applied research centre to create opportunities for developing techniques to
provide added-value services.

THREATS

Legislation could impact.

Great risk involved
Very high competition prevailing in the industry.
Vulnerable to reactive
attack by major competitors
Lack of infrastructure in rural areas could constrain investment.
High volume/low cost market is intensely competitive.

KEY POINT

69

SWOT Analysis is a simple but powerful framework for analyzing company's Strengths
and Weaknesses, and the Opportunities and Threats you face. This helps you to focus on
your strengths, minimize threats, and take the greatest possible advantage of
opportunities available to you.

INTRODUCTION TO PRIVATE BANKING

ABOUT PRIVATE BANKING:

Private banking systems are one of the most important parts of service
organizations. The effortsin grasping more financial resources by
private banks versus governmental banks as well as growth in
customers'needs for effectiveservices have enforced private banking
managers for using new service design and development process.
New Service design and Development (NSD) process providing the
lower cost and higher benefit methods for creation of competitive
advantage in global banking systems. In this paper the
effectiveservices private Banks on determinants in new service
development process has been identified. The methodology is adapted
byacademic experts and managers of private banking systems until
theoretical saturation state achieved. The gathered data was analyzed
using axial and open coding methods. The results shows that the NSD
process of private banking systems is consist of four main stages and
28 axial factors and 52 secondary factors. The main factors are
includes of analysis& new concept development,design,pilot and
launch, development stages. Event
ually, the results of this paper can be used for the new services
development

70

process in the private banking systems of a competitive environment

at the other countries.
PRIVATE BANKING is a specialised banking service that caters to wealthy individuals
and families. Private bankers help clients manage their wealth by providing advice and
services that are customised to their investment profiles and financial objectives.
Private banking is the managing a private plants money. This term is sometime opposite
to retail banking and corporate banking
A private bank is a bank which offers private banking services. Such banks wouldnt, eg:do mortage business merger and acquisitions or have checking accounts they specialise in
cllients with large account (minimum balance varies)
The expression private banker usually refers to a professional working in the private
banking industry

MEANING OF PRIVATE BANKING:

Private banking is personalized financial and banking services that are traditionally
offered to a bank's wealthy high net worth individual (HNWI) clients. For wealth
management purposes, HNWIs have typically accrued more wealth than the average
person, so they have the means to access a larger variety of conventional and alternative
investments. Private banks aim to match such individuals with the most appropriate
options.
The first private bank in India to receive an in principle approval from the Reserve Bank
of India was Housing Development Finance Corporation Limited, to set up a bank in the
private sector banks in India as part of the RBIs liberalization of the Indian banking
industry. It was incorporated in August 1994 as HDFC bank limited with registered office
in Mumbai and commenced operations as scheduled commercial bank in January 1995.
ING Vaysya, yet another private bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the 1 st branch inception in the year 1934. With
successive years of patronage and constantly setting new standards in banking. ING
Vaysya bank has many credits to its account.

71

Entry of Private Sector Banks:

There has been a paradigm shift in mindsets both at the government level in the banking
industry over the years since Nationalization of banks in 1969, particularly during the last
decade (1990-2000). Having achieved the objectives of nationalization, The most
important issue before the industry at present is survival and growth in the environment
generated by the economic liberalization greater competition with a view to achieving
higher productivity and efficiency in January 1993 for the entry of private sector banks
based on the nationalization committee report of 1991, which envisaged a larger role for
private sector banks.
The RBIs prescribed a minimum paid up capital of Rs. 100 crores for the new bank and
the shares are to be listed at stock exchange. Also the new bank after being granted
license under the banking regulation act shall be registered as a public limited company
under the companies act, 1956.
Subsequently 9 new commercial banks have been granted license to start banking
operations. The new private sectors banks have been very aggressive in business
expansion and are also reporting higher profile levels taking the advantage of technology
and skilled manpower. In certain areas, these banks have even our crossed the other
group of banks including foreign banks.
Current Scenario
Currently, overall, banking in India is considered as 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. Even in terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent balance sheet as
compared to other banks in comparable economies in its region. The Reserve bank if
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-without any stated
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

72

expected to be strong. M&As, takeovers, asset sales and much more action (as it is
unravelling in China) will happen on this front in India.
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), 31 private banks
(these do not have government stake; they may be publicly listed and traded on stock
exchange) and 38 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%of total
assets of the banking industry, with the private and foreign banks holding 18.25% and
6.5% respectively.

BREAKING DOWN 'PRIVATE BANKING':

In addition to providing exclusive investment-related advice, private banking goes
beyond managing investments to address a client's entire financial situation. Services
include protecting and growing assets in the present, providing
specialized financing solutions, planning retirement, and passing wealth on to future
generations.
While an individual may be able to conduct some private banking with $50,000 or less in
investable assets, some exclusive private banks only accept clients with at least $500,000
worth of investable assets. Such high levels of wealth allow these individuals to
participate in alternative investments, such as hedge funds and real estate. Furthermore,
this level of wealth often prevents liquidity problems. UBS, Merrill Lynch, Morgan
Stanley and Credit Suisse are examples of private banks.

Privacy is a key benefit of private banking. Customer dealings and services provided
typically remain anonymous. Private banks often provide HNWIs with tailored
73

proprietary solutions, which are kept confidential to prevent competitors from luring a
prominent customer with a similar solution. A culture of privacy has the added benefit of
potentially attracting new customers on the premise of exclusivity.

Banking Private Personalized Service

Private banking customers generally receive highly personalized service. An account or
relationship manager is assigned to each customer to tailor a customized approach to
asset management. This allows the customer to liaise directly with management should
the need arise.
HNWIs typically receive discounted services at privates banks due to their substantial
assets. For example, customers who operate exporting businesses may receive a reduced
foreign exchange rate.
Private banks often provide HNWIs with investment returns that outperform the market;
these customers can leverage extensive resources. For example, a HNWI may be given
access to an exclusive top-performing hedge fund through an affiliation with a private
bank.

Private Banking Challenges

Private banks have dealt with a restrictive regulatory environment since the global
financial crisis (GFC) in 2008. This has resulted in a higher level of transparency and
accountability. For example, there are more stringent licensing requirements for private
banking professionals that help ensure customers are being appropriately advised in
regards to their finances.
Traditionally, private banks acquired new HNWIs through other divisions within the
firm, such as wholesale and investment banking. Since the GFC, the private banking
industry has experienced high employee turnover; as a result, there has been a need to
focus on talent recruitment. As long-standing customer relationships are critical for a
private bank's success, there has been a need to place greater emphasis on keeping
employees satisfied, ensuring high customer service levels.

74

The private-sector banks in India represent part of the indian banking sector that is
made up of both private and public sector banks. The "private-sector banks" are banks
where greater parts of state or equity are held by the private shareholders and not by
government.
Banking in India has been dominated by public sector banks since the 1969 when all
major banks were nationalized by the Indian government. However, since liberalisation
in government banking policy in the 1990s, old and new private sector banks have reemerged. They have grown faster & bigger over the two decades since liberalisation
using the latest technology, providing contemporary innovations and monetary tools and
techniques.
The private sector banks are split into two groups by financial regulators in India, old and
new. The old private sector banks existed prior to the nationalisation in 1969 and kept
their independence because they were either too small or specialist to be included in
nationalisation. The new private sector banks are those that have gained their banking
license since the liberalisation in the 1990s.
The banks, which were not nationalized at the time of bank nationalization that took
place during 1969 and 1980 are known to be the old private-sector banks. These were not
nationalized, because of their small size and regional focus.] Most of the old privatesector banks are closely held by certain communities their operations are mostly
restricted to the areas in and around their place of origin. Their Board of directors mainly
consist of locally prominent personalities from trade and business circles. One of the
positive points of these banks is that, they lean heavily on service and technology and as
such, they are likely to attract more business in days to come with the restructuring of the
industry round the corner.

New private-sector banks

The banks, which came in operation after 1991, with the introduction of economic
reforms and financial sector reforms are called "new private-sector banks". Banking
regulation act was then amended in 1993, which permitted the entry of new private-sector
banks in the Indian banking s sector. However, there were certain criteria set for the

75

establishment of the new private-sector banks, some of those criteria being:#The bank
should have a minimum net worth of Rs. 200 crores.
1. The promoters holding should be a minimum of 25% of the paid-up capital.
2. Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are
companies pending a banking license with the RBI under the new policy, while
IDFC & Bandhan were given a go ahead to start banking services for 2015.
3. Within 3 years of the starting of the operations, the bank should offer shares to
public and their net worth must increased to 300 crores.

List of the new private-sector banks in India

Name

Yea
r
199

1. Axis Bank (earlier UTI Bank)

2. Bank of Punjab (actually an old generation private bank since it was

198

not founded under post-1993 new bank licensing regime)

3. Centurion Bank Ltd. (Merged Bank of Punjab in late 2005 to become

199

Centurion Bank of Punjab, acquired by HDFC Bank Ltd. in 2008)

4. Development Credit Bank (Converted from Co-operative Bank, now

199

DCB Bank Ltd.)

5. ICICI Bank (previously ICICI and then both merged;total merger

199

SCICI+ICICI+ICICI Bank Ltd)

6
199

6. IndusInd Bank

4
200

7. Kotak Mahindra Bank

8. Yes Bank

200

76

5
10. Times Bank (Merged with HDFC Bank Ltd.)

11. Global Trust Bank (India) (Merged with Oriental Bank of Commerce)

12. Balaji Corporation Limited - Private Loan Company, not a Bank

200
0
199
4
201
0
199

13. HDFC bank

4
201

14. Bandhan bank

5
201

15. IDFC Bank

16. Karnataka Bank

18. Jammu and Kashmir Bank
19. Karur Vysya Bank
20. South Indian Bank
21. Yes Bank

OBJECTIVES
To study the effectiveness of services provided to private banking
customers.
To study how much banking services has been improved.
77

RESEARCH METHODOLOGY

78

A research methodology cannot be conduct abruptly. Research has to proceed

systematically in the already planned direction with the help of a number of steps in
sequence. To make the research systemized the researcher has to adopt certain methods.
The methods adopted by the researcher for completing the study are called research
methodology. In other words research methodology is simply the plan of action for a
research which explains in detail how data is to be collected, analysed and interpreted.
Data becomes information only when a proper methodology is adopted. Thus we can say
methodology is a tool which processes the data in to reliable information. The present
chapter attempt to highlight the research adopted in this project.
The components of the research methodology are research design, type of data, data
collection, sampling plan and statistical tools used.

RESEARCH DESIGN
Descriptive research is a study designed to depict the participants in an accurate
way. Moresimply put, descriptive research is all about describing people who take part in
the study .A study comes in different flavours, be it interviewing people face to face or
handing out questionnaires to fill out. Surveys are useful because instead of spending
weeks observing the people you directly ask them about themselves. Descriptive study
can involve a one-time interaction with groups of people This is where research is trying
to describe what is happening in more detail,filling in the missing parts and expanding
our understanding. This is also where as much information is collected as possible
instead of making guesses or elaborate models to predict the future- the what and how,
rather than the why.
A research design is purely and simply the frame work of the plan for a study that given
the collection and analysis of data is collected accurately and economically.Descriptive
research design was adopted for this study because the study is concerned with
describing the characteristics, productivity and satisfaction of training provided by the
company to the workers.

79

SAMPLE DESIGN:
Simple random sampling is used where each sample has an equal chance of getting
selected and all choice is independent of each other. It gives each possible sample
combination an equal probability of being chosen.
For my survey I have used Convenience sampling technique.
Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.
SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE -In accordance to the specified research universe is Lucknow city.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

Through Questionnaire Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.

Observation observation were done during the visit to the organisation .

SECONDARY DATA: The secondary data about the company profile and another details
were collected from the company web site and through personal discussion with the HR
manager and other sources like:

Websites
Magazines
Articles

80

STATISTICAL TOOL:
The statistical tools used here is:
a) Percentage analysis
b) Pie chart

81

DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in Private Bank?

OPTION

PERCENTAGE

Saving account

40%

Current account
Salary account
Other

30%
20%
10%

16%

5%
42%

Saving account
Current account

37%

Salary account
Other

INTERPRETATION

In the above analysis we found that 40% of respondents have an saving account in

Private Bank
We found that 30% of respondents have an current account in Private Bank
We found that 20% of respondents have an salary account in Private Bank
We found that 10% of respondents have other type account in Private Bank

82

Q2. Since how long you are having account in a Private Bank?
OPTION
0-1 Years
1-2 Years
2-3 Years
3-4 Years

PERCENTAGE
20%
15%
40%
25%

20%

25%

15%

1-2 year
2-3 year

40%

0-1 year

3-4 year

INTERPRETATION
In the above analysis we found that 20% of respondents have an account in
Private Bank from 0-1 year
We found that 15% of respondents have an account in Private Bank from 1-2 year
We found that 40% of respondents have an account in Private Bank from 2-3 year
We found 25% of respondents have an account in Private Bank from 3-4 years

Q3. From where you got to know about Pivate Banking ?

83

OPTION
TV advertisement
Words of mouth
Hoardings
Others

PERCENTAGE
25%
30%
40%
5%

5%

25%
TV advertiisement

40%

Words of mouth
Hoardings

30%

Others

INTERPRETATION
In the above analysis we found that 25% of respondents got to know about Private

Banking through TV advertisement

We found that 30% of respondents got to know about Private Banking through

TV Words of mouth
We found that 40% of respondents got to know about Private Banking through

Hoardings
We found that 5% of respondents got to know about Private Banking through
other ways

Q4. What you think about the document proceeder of Private Bank ?
OPTION
Excellent

PERCENTAGE
15%
84

Very good
Good
Poor
Cant say

30%
40%
10%
5%

10%

5%

15%
Excellent
30%

40%

Very good
Good
Poor
can't say

INTERPRETATION

In the above analysis we found that 15% of the respondents thinks that the

document proceeder of Private Banksis Excellent

We found that 30% of the respondents thinks that the document proceeder of

Private Banks is Very good

We found that 40% of respondents thinks that the document proceeder of Private

Banks is Good
We found that 10% of the respondents thinks that the document proceeder of

Private Banks is poor

We found that 5% of the respondents were not able to say anything regarding the
document proceeder of Private Banks

Q5.Which Private bank provides better effective quality services?

OPTION

PERCENTAGE

HDFC
ICICI

30%
50%
85

IDBI
AXIS

10%
10%

10%
10%

30%
HDFC
ICICI
SBI

50%

PNB

INTERPRETATION
In the above analysis we found that 30% of the respondents said that HDFC Bank

provides better effective quality services

We found that 50% of the respondents said that ICICI Bank provides better

effective quality services

We found that 10% of the respondents said that IDBI provides better effective

quality services
We found that 10% of the respondents said that AXISBank provides better
effective quality services

Q6. What services of Private banks you find most effective ?

OPTION
Transaction services
Loan services
Credit facility
Credit/Debit Card

PERCENTAGE
20%
50%
20%
10%
86

10%

20%

20%

Transaction services
Loan services
Credit faciliy

50%

Credit/Debit card

INTERPRETATION
In the above analysis we found that 20% of the respondents said that the

transaction services of Private Banks are most effective

We found that 50% of the respondents said that the Loan services of Private

Banks are most effective

We found that 20% of the respondents said that the credit facility of Private Banks

are most effective

We found that 10% of the respondents said that the Credit/Debit card of Private
Banks are most effective

Q7. Which category of the bank do you consideras most technologically advanced ?
OPTION

PERCENTAGE
Private sector banks
Public sector banks

75%
25%

87

25%
Private sector banks
75%

Public sector banks

INTERPRETATION

In the above analysis we found that 75% of the respondents considers Private

sector banks are most technologically advanced

we found that 25% of the respondents considers public sector banks are most
technologically advanced

Q8. Which attribute of Private banks you value the most ?

OPTION
Trust
Quality of service
Location
Technology used

PERCENTAGE
45%
25%
15%
15%
88

15%
15%

45%

Trust
Quality of service
Location

25%

Technology used

INTERPRETATION
In the above analysis we found that 45% of the respondents Values the Trust

attribute of Private Banks

We found that 25% of the respondents Values the Quality of service attribute of

Private Banks
We found that 15% of the respondents Values the Location attribute of Private

Banks
We found that 15% of the respondents Values the Technology used attribute of
Private Banks

Q9. Employment in private banks is improved ?

OPTION
YES

PERCENTAGE
55%

NO

45%

89

45%
55%

Yes
No

INTERPRETATION
In the above analysis we found that 55% of the respondents said that the
employment is improved in private banks
We found that 45% of the respondents said that the employment is not improved
in private banks

Q10.Employment in private banks are increasing?

Option

Percentage

YES

60%

NO

40%

90

40%
60%

yes
no

INTERPRETATION

In the above analysis we found that 60% of the respondents said that the

employment is increasing in private banks

We found that 40% of the respondents said that the employment is not increasing
in private banks

Q11.What do you think of overall service quality of Private banks ?

OPTION
Excellent
Very good
Good
Poor

PERCENTAGE
15%
30%
40%
10%
91

Cant say

5%

10%

5%

15%
Excellent
30%

40%

Very good
Good
Poor
can't say

INTERPRETATION
In the above analysis we found that 15% of the respondents said that the overall

service quality of Private Banks are Excellent

We found that 30% of the respondents said that the overall service quality of

Private Banks are very good

We found that 40% of the respondents said that the overall service quality of

Private Banks are good

We found that 10% of the respondents said that the overall service quality of

Private Banks are poor

We found that 5% of the respondents were unable to say about the overall service
quality of Private Banks

Q12. What Rank would you like to give to Private Banks?

OPTION
Excellent
Very good
Good
Poor
Cant say

PERCENTAGE
15%
30
40%
10%
5%

92

10%

5%

15%
Excellent
30%

40%

Very good
Good
Poor
can't say

INTERPRETATION

In the above analysiswe found that 15% of the respondents gave excellent rank to

Private Banks
We found that 30% of the respondents gave very good rank to Private Banks
We found that 40% of the respondents gave good rank to Private Banks
We found that 10% of the respondents gave poor rank to Private Banks
We found that 5% of the respondents were not able to give any rank to Private
Banks

FINDINGS
Employment is improved in private banks
Employment in private banks are increasing
Customers likely to prefer private banking
Loan service of HDFC Bank is most effective
HDFC Bank provides better effective services than other banks
Document proceeder of HDFC Bank is easy and fast.
Private banks provides efficient services but requires high amount of money to

access
93

CONCLUSION
The summer internship project plays an important role in management education where
students get a golden opportunity to apply his knowledge in learning gained from
classroom lectures in practical business environment. The SIP programme also helps in
gaining knowledge and developing the confidence level to work.From the report we have
come to the conclusion that private banks provides better effective services than public
banking . private banks are performing well as the employment factor is increasing in
private banks.Private banks requires a lot amount of money in order to get
accessed.Average number of people cant enter into private banking .After the survey we
got to know that private banking are slowly spreading and getting better and the
employment is improved.

94

LIMITATIONS
There are certain limitation of this project which are listed below
This study is limited only to the customers of the HDFC Bank lucknow .
The responses of the customer may be biased .
Sample size is limited to 100.
It was convenience sampling.
Summer training program was only 8 weeks so, it was not possible to make full

study on the topic .

Bank does not provide full information about the bank as that could violate data
protection act .

95

RECOMMENDATION AND SUGGESTIONS

Private banks should reduce there accessment rate

Private banks should reduce money factor to make average peoples eligible to

enter in private banking ie: opening account etc

Private banks should create various offers to attract people
Private banks should use more technological instruments in order to save time eg:

INSTA BANKING Etc

Private banks should provide information to their customers in more appropriate
and easy manner so that the cutomer can easily stay satisfied and maintain there
trust on private banks

96

BIBLOGRAPHY

BOOKS

Maheswari.S.N, and Paul R.R (2003), Banking and Financial Services,

Kalayani Publisher, New Delhi.

Rangarajan .c, Innovation in Banking: The Indian Experience impact on
Deposits and credit, Oxford & IBH Publishers Co, New Delhi, pp.32-38.
Kotler ,Keller, Koshy, Jha, Marketing Management Pearson Education
Twelfth edition.

Renu Sobti, , Banking and Financial Services in India: Marketing Redifined by

2003, New century publications, New Delhi, 2003.

WEBSITE LINKS
www.hdfc.com
https://en.wikipedia.org/wiki/HDFC_Bank
www.scribd.com
http://www.slideshare.net/
https://en.wikipedia.org/wiki/Private_banking

QUESTIONNAIRE
NAME
GENDER..
97

AGE
OCCUPATION......
EMAIL ID
Q1. What type of account you have in Private Bank?
Savings account
Salary account

Current account
other (please specify)

_____

Q2. Since how long you are having account in Private Bank?
0 1 year

1 2 years

2 - 3 years

3 years & above

Q3. From where you get to know aboutPrivate Banking?

TV advertisement

Words of mouth

Hoardings

other

Q4. What you think about the document proceeder ofPrivate Bank?
Excellent

Very good

Good

Poor

Cant say
Q5.Which Private bank provides better effective quality services?
HDFC

ICICI

SBI

PNB

98

Q6. Which service of Private Banks you find most effective ?

Transaction services

Loan services

Credit facility

Debit/Credit card

Q7. Which category of the bank do you consideras most technologically advanced ?
Public sector bank

Private sector bank

Q8. Which attribute of Private Banks you value the most ?

Trust

Quality of service

Location

Technology used

Q9. Employment in private banks is improved ?

Yes

No

Q10.Employment in private banks are increasing?

Yes

No

Q11.What do you think of overall service quality of Private banks ?

Excellent

Very good

GoodAverage

99

Error

Q12. What Rank would you like to give to Private Banks ?

Excellent
Good

Very good
Poor

Cant say

FEEDBACK -

100