Professional Documents
Culture Documents
OF
OF
Session 2016-2017
Submitted by
GURPREET SINGH GURMUKH SINGH
ROLL NO 72014
0
Acknowledgement
1
Certificate
Project Guide
(Mrs Abha Maheswari)
2
Declaration
Place:
Date :
3
INDEX
SR. NO. CONTENT Pg No.
1. Introduction 5
2. Profile of the company 14
3. Theoretical Perspective 22
4. Objective of the study 30
5. Research Methodology 36
Data analysis and Interpretations using 40
6 various chart and graphs.
7. Conclusions 48
8. Limitations of the project 51
9. Recommendations 53
Appendix:-
Copies of
Bibliography
4
CHAPTER- 1
INTRODUCTION
5
Retail banking is, however, quite broad in nature - it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets sides
of the balance sheet. Fixed, current / savings accounts on the liabilities side; and
mortgages, loans (e.g., personal, housing, auto, and educational) on the assets
side, are the more important of the products offered by banks. Related ancillary
services include credit cards, or depository services. Today's Retail banking
sector is characterized by three basic characteristics:
What is the nature of Retail banking? In a recent book, Retail banking has been
described as "hotter than vindaloo". Considering the fact that vindaloo, the
Indian-English innovative curry available in umpteen numbers of restaurants of
London, is indeed very hot and spicy, it seems that Retail banking is perceived to
be the in-thing in today's world of banking.
There are various banks providing the retail services to the consenter all over
India namely HDFC Bank, ICICI Bank, SBI, HSBC Bank, Axis Bank etc.
6
2. Changing consumer demographics indicate vast potential for growth in
consumption both qualitatively and quantitatively. India is one of the countries
having highest proportion (70%) of the population below 35 years of age (young
population). The BRIC report of the Goldman-Sachs, which predicted a bright
future for Brazil, Russia, India and China, mentioned Indian demographic
advantage as an important positive factor for India.
4. The Treasury income of the banks, which had strengthened the bottom lines of
banks for the past few years, has been on the decline during the last two years.
In such a scenario, retail business provides a good vehicle of profit maximization.
Considering the fact that retails share in impaired assets is far lower than the
overall bank loans and advances, retail loans have put comparatively less
provisioning burden on banks apart from diversifying their income streams.
5. Decline in interest rates has also contributed to the growth of retail credit by
generating the demand for such credit.
Banks are awash with liquidity. Prime corporates do not borrow from banks
except at sub-PLR rates. Banks do not favor other corporates. Suddenly there is
a great change in attitude of banks. The name of the game is no longer Lending
to big corporates, huge amounts to create loan assets. Banks invest their
resources in government paper to the hilt and then scout for hitherto neglected
retail borrowers for lending. Retail credit is now welcomed even from RBIs
7
perspective. There are no longer any regulatory hurdles. Consumer credit is no
longer considered as unproductive, as it triggers demand for consumer products,
which in turn help manufacturers in a period of economic slowdown. Retail to
project credit stands to a ratio of 3: 1. While the rates of interest on consumer
credit have still fallen, there is a scope for further reduction. Perhaps, competition
will further bring down the interest rates.
Fixed interest rates on housing loan have sharply fallen, but not the floating
rates, which are linked to medium and long-term PLRs. Banks, refuse to reduce
these rates, which appears rather unfair. But then the consumers still needs
innovative products like graduated payment mortgages etc., in place of stand
alone EMI structures.
SME sector borrowers still appear to be suffering from inadequate and delayed
credit delivery this sector has immense potential for growth and banks have to
devise innovative strategies to fund their ventures on the principle of
entrepreneurship and bank ability rather than mere collateral securities.
Micro finance, another area of retail credit, has unfortunately become a so-called
priority sector credit. Perhaps it will be a great idea if it is delinked from the
obnoxious priority tag and thereby allow banks to display creativity in financing
the sector, especially in rural and semi-urban areas where its potential for
positive transformation of socio-economic conditions is immense. Banks are
gradually appreciating the virtue of spreading the credit risk by financing large
number of small (Retail) borrowers.
Credit card business is growing and even government banks have started
marketing cards. Surprisingly, they still do not leverage the network of branches
and availability of surplus manpower into effective marketing. The interest rates
on credit cards that are 30 percent per annum refuse to come down. May be with
8
the active participation of many banks in this lucrative business, the customer will
eventually have the benefit of low rates. Thanks to the on set of ATMs, channel
migration is visible.
The personal banking segment customers have become the center of attraction.
It is their deposit and savings account that are actively sought after, and not
mega deposits at a slightly higher rate of interest. Banks are truly spreading their
deposit net rather widely.
It perhaps apt to quote what Hugh McCulloch, secretary of the treasury UK,
said long ago Distribute your loans rather than concentrate them in a few
hands. Large loans to a single borrower or a firm, although some times proper
and necessary, are generally injudicious and frequently unsafe. Large borrowers
are apt to control the bank, and when this is the relation between a bank and its
customers, it is not difficult to decide which one in the end will suffer.
RETAIL BANKING:-
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable
technology, improved service and banking convenience. Higher penetration of
technology and increase in global literacy levels has set up the expectations of
the customer higher than never before. Increasing use of modern technology
has further enhanced reach and accessibility.
9
transactions. High cost structure rendering mass-market servicing is
prohibitively expensive.
Present day tech-savvy bankers are now more looking at reduction in their
operating costs by adopting scalable and secure technology thereby reducing
the response time to their customers so as to improve their client base and
economies of scale.
The solution lies to market demands and challenges lies in innovation of new
offering with minimum dependence on branches a multi-channel bank and to
eliminate the disadvantage of an inadequate branch network. Generation of
leads to cross sell and creating additional revenues with utmost customer
satisfaction has become focal point worldwide for the success of a Bank.
Credit cards
Internet Banking.
Mortgages practice.
Multi-Channel Integration.
Business Rule Engine.
Customer Relationship Management.
ATM Solutions and services
10
Key Benefits Associated with Offerings:-
On-line, real time processing and cost saving thru Multi channel
Transactions.
Seamless integration with advanced delivery systems including teller and branch
automated teller
11
ADVANTAGES AND DISADVANTAGES OF RETAIL BANKING
ADVANTAGES:-
RESOURCES SIDE
ASSETS SIDE
Retail banking results in better yield and improved bottom line for a bank.
Retail segment is a good avenue for funds deployment.
Consumer loans are presumed to be of lower risk and NPA perception.
Helps economic revival of the nation through increased production activity.
Improves lifestyle and fulfills aspirations of the people through affordable
credit.
Innovative product development credit.
12
Retail banking involves minimum marketing efforts in a demand driven
economy.
Diversified portfolio due to huge customer base enables bank to reduce
their dependence on few or single borrower
Banks can earn good profits by providing non fund based or fee based
services without deploying their funds.
DISADVANTAGES:-
Designing own and new financial products is very costly and time
consuming for the bank.
Customers are attracted towards other financial products like mutual funds
etc.
Though banks are investing heavily in technology, they are not able to
exploit the same to the full extent.
Long term loans like housing loan due to its long repayment term in the
absence of proper follow-up, can become NPAs.
13
The volume of amount borrowed by a single customer is very low as
compared to wholesale banking. This does not allow banks to exploit the
advantage of earning huge profits from single customer as in case of
wholesale banking.
CHAPTER - 2
14
About HDFC Bank:-
15
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.
Capital Structure:-
The authorize capital of HDFC Bank is Ra.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the
16
banks equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the banks American Depository Shares (ADS) Issue). Roughly 31.3%
of the equity is held by Foreign Institutional Investors (FIIs) and the bank has
about 190,000 shareholders. The shares are listed on the The Stock Exchange,
Mumbai and the National Stock Exchange. The banks American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the symbol
HDB.
Distribution Network:-
Technology:-
The bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
bank. The Banks business in supported by scalable and robust systems which
ensure that the bank clients always get the finest services.
17
The Bank has prioritized its engagement in technology and the internet as one of
its key goals and has already made significant progress in web-enabling its core
business. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.
Businesses:-
The Banks target market ranges from large, blue-chip manufacturing companies
in the Indian corporate to small & mid-sized corporate and agri-based business.
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 and banks.
18
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 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 MasterCard 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 and provided through the
19
banks 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.
Awards:-
2016
20
Asiamoney FX Poll 2016 -Ranked No. 1 in the Best Domestic Provider for FX
Products and Services in India
-Ranked No.2 in the Best Domestic Provider of FX
Services and for FX Research and Market Coverage
-Ranked No. 1 in the Best Local Cash Management
Bank in India
BrandZ Top 50 Most Valuable Indian Brands HDFC Bank has been ranked India's most valuable
brand for the 3rd consecutive year
CNBC-TV18 India Business Leader Awards Outstanding Business Leader of the year
(IBLA) 2015-16
The Financial Express India's Best Banks Lifetime Achievement Award to Mr. Aditya Puri
Awards
IDRBT Banking Technology Excellence Best Bank in Banking Technology Excellence for the
Awards 2016 year 2015-16
Cisco-CNBC TV 18 Digitizing India Awards Award for Innovations in the Financial Industry &
Digital Banking
Dun & Bradstreet Corporate Awards 2016 HDFC Bank wins Dun & Bradstreet Corporate Award
2016 in the Banking sector
Pension Fund Regulatory and Development - Best Performing Bank - Maximum APY Subscribers
Authority awards for Atal Pension Yojana - Best Performing Bank in the Private sector Banks
category
- Best Performing Bank : Atal Pension Yojana
Carnivals in Private Sector Banks
Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global CEOs for
2nd year
Business Today - KPMG India's Best Bank HDFC Bank wins Bank of the year and Best Digital
Banking Initiative awards
2015
21
National Payments Excellence Awards HDFC Bank wins NPCI National Payments Excellence
2015 Awards
IDRBT Banking Technology Excellence Best Bank Award for Cyber Security Risk Management
Awards 2014-15 among Large Banks
AIMA Managing India Awards 2015 - Business Leader of the Year - Aditya Puri
Finance Asia poll on Asia's Best - Best Managed Public Company - India'
Companies 2015 Best CEO- Aditya Puri
Best Corporate Governance- Rank 3
Best Investor Relations- Rank 3
J. P Morgan Quality Recognition Award - Best in class straight Through Processing Rates
22
CHAPTER - 3
THEORETICAL BACKGROUND
23
With spreads shrinking, Indian banks are following their global counterparts and
focusing on increasing the share of their fee based income. The ratio of non-
interest income to total funds has already increased for some banks and the first
quarter results of the current fiscal affirm this fact.
Within the banking sector, increasing competition and growing risk remain
important challenges, as banks concentrate on consolidation to meet
competition, the key driver in staying ahead of the competition is technology and
how well banks use it to meet the needs of their customers. In todays
sophisticated market, credit risk along with market risk and operational risk are
the real challenges before banks.
During April to mid-June, the increase in deposits was Rs.57, 988 crores during
the period of 2015 against Rs.45, 389 crores during the period of 2014 in the
previous year, that is, a rise of 19.3 percent as against 16.3 percent in the same
period last year. The proportion of time deposits as compared to demand
deposits was higher indicating spreads may shrink further. In 2001-02, the
overall growth in deposits is expected to be lower at around 16 percent, largely
due to slower growth in money supply compared with that in 2000-01, lower
interest rates on deposits especially bulk deposits and reduction in dividend
distribution taxes from 20 percent to 10 percent on mutual funds making mutual
funds a more tad-efficient investment. Said Mr. M.M. Joseph, Research Head of
SBI Capital Markets.
24
The slowdown could be attributed to lack of credit off-take by the industrial sector
even as food credit continued to surge. Because of the recession and industrial
slowdown, most corporate appear to have postponed their expansion plans and
have put on hold Greenfield projects.
Moreover big corporate are bypassing banks and raising money through the debt
market and commercial papers, which are cheaper than bank credit.
Therefore, banks are being forced to look at the mid-corporate. But, this is a risky
strategy as the risk is concentrated and delinquency higher.
The risk here is distributed and there is a huge market to be tapped, Some of
the banks which have been aggressive in this area are HDFC Bank, ICICI Bank,
State Bank of India (SBI) and Corporation Bank. Interest rates, especially on
short tenure declined due to a reducing in the Bank rate and cut in interest rates
on contractual savings such as Public Provident Fund (PPF). Some of the major
banks have reduced their prime lending rates (PLRs) and others are likely to
follow suit. The spreads have been shrinking and banks are searching for other
avenues to protect their bottom lines,
A comparison of old and new private sector banks indicates a clear difference in
profitability. New private sector banks have shown higher ROA and a higher
RONW as compared to old private sector banks. It is also interesting to see the
performance of banks over the previous year.
25
With spreads shrinking, Indian banks are following their global counterparts and
focusing on increasing the share off their fee-based income. Fee-based income
may increase marginally in future.
The ratio of non-interest income to total funds has increased for some banks. A
rising ratio is expected in the future.
The increase in net sales of Corporation Bank is only 5 percent while the rise in
other income is 34 percent. ICICI also raised its other income by 307 percent as
compared to a net sales increase of only 65 percent.
The growth in the economy has been sluggish and banks can no longer afford to
rely on big corporate customers. There is a shift in focus towards retail banking.
Most banks are targeting in middle class and lower middle class segment. Huge
Non-Performing Assets (NPAs) are plaguing old private sector banks. The asset
quality of banks in largely dependent on economic growth and makes it difficult
for them to recover loans till the economy revives.
Some positive policy initiatives have been taken by the Government which will
give an impetus to consolidation in the banking industry. The limit of foreign direct
investment (FDI) in private sector banks has been raised to 49 percent form 33
percent. This will allow foreign banks to buy a strategic stake in private sector
banks having the latest technology and better quality assets. This year, the
banking industry has witnessed two big mergers. Times Bank Centurion bank
and Punjab bank merged with HDFC Bank and Bank of Madura with ICICI Bank.
Banks could increase their revenue base and leverage on their distribution
network by investing in the growing insurance sector. However, the inflows would
be slow to being with. There has also been a thrust on the housing sector.
Flexible financing with lower interest rates has resulted in brisk activity in the
sector. SBI and other banks have launched voluntary retirement scheme (VRS),
26
and effort to bring down operating cost. There is an increased focus towards auto
loans, car loans, funding for infrastructure, and other fee-based services such as
guarantees and commissions on drafts, gold banking, derivatives and the like.
Overall, HDFC Bank, ICICI Bank and SBI have shown good performance and
appeared to be geared to take on the challenges,
These banks are changing their strategy and shifting focus from big corporates to
mid-corporates and also retail banking and housing finance. The Indian banking
system is in the midst of a technological revolution with banks offering anywhere
banking, 24/7 and also attempting to become a one stop financial shop offering
all financial solutions.
It is believed that new private sector banks such HDFC Bank and ICICI Bank has
demonstrated their ability to improve other income, which was previously the
forte of foreign banks due to good service.
This trend is expected to continue. Nationalized banks and old private sector
banks will also follow suit and there is hardly any progress in this area. If old
private sector banks have to service they will have to compete on service.
In terms of ownership, debit cards are more in number than credit cards but in
terms of transactions, use of credit cards is more prevalent than debit cards.
The ATM outlets in India increased at a rate of 34.09% from March 2014 to
March 2015.
27
Wide range of retail banking products and services are offered by the banks,
which cover both Depository and Advances to suit various segments of customer
like salaried persons, businessmen, traders, professionals, pensioners etc. are
as follows:-
Housing loan.
Personal loan.
Vehicle or automobile loan.
Loan for consumer goods.
Credit and Debit cards-Global and international.
Loan for holidays.
Insurance products.
Gold loans.
Event loans.
Overdraft.
Mutual funds etc.
Leasing, hire purchase and factoring services
28
Banks are coming out with more features to add value to retail banking products
and services. These are called VALUE ADDED PRODUCTS AND SERVICES.
These include the following: -
Payment of utility bills like electricity bills, telephone bills and water bills
etc. on due date.
Payment of monthly or quarterly education fee for children.
Payment of insurance premium on or before due dates.
Demating of shares, debentures and bonds.
29
Telephone banking.
Internet banking.
Making payments at doorsteps.
NRI ACCOUNTS
The present menu of bank accounts for Non-Resident Indians (NRIs) has three
categories:
30
CHAPTER - 4
31
TITLE OF THE PROJECT:-
HDFC BANK
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 alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile- Banking.
32
To study the issues and challenges in retail banking
33
Opportunities and Challenges of Retail Banking in India:-
Opportunities:-
India. As the growth story gets unfolded in India, retail banking is going to
emerge a major driver, recently identified India as the "second most attractive
expected to continue rising. The younger population not only wields increasing
purchasing power, but as far as acquiring personal debt is concerned, they are
purchasing power, coupled with more liberal attitudes toward personal debt, is
The combination of the above factors promises substantial growth in the retail
sector, which at present is in the nascent stage. Due to bundling of services and
universal banks and financial conglomerates. Some of the key policy issues
relevant to the retail banking sector are: financial inclusion, responsible lending,
34
protection, regulation and financial crime prevention. What are the challenges for
Challenges:-
What are the challenges for the industry and its stakeholders?
2. Rising indebtedness could turn out to be a cause for concern in the future.
Indias position, of course, is not comparable to that of the developed world
where household debt as a proportion of disposable income is much higher.
Such a scenario creates high uncertainty. Expressing concerns about the high
growth witnessed in the consumer credit segments the Reserve Bank has, as a
temporary measure, put in place risk containment measures and increased the
risk weight from 100 per cent to 125 per cent in the case of consumer credit
including personal loans and credit cards (Mid-term Review of Annual Policy,
2004-05).
35
products and services are available, at all times, and across the entire
organization is essential for today's retails banks to generate revenues and
remain competitive. Besides, there are network management challenges,
whereby keeping these complex, distributed networks and applications operating
properly in support of business objectives becomes essential. Specific
challenges include ensuring that account transaction applications run efficiently
between the branch offices and data centre.
4. KYC Issues and money laundering risks in retail banking is yet another
important issue. Retail lending is often regarded as a low risk area for money
laundering because of the perception of the sums involved. However, competition
for clients may also lead to KYC procedures being waived in the bid for new
business. Banks must also consider seriously the type of identification
documents they will accept and other processes to be completed. The Reserve
Bank has issued details guidelines on application of KYC norms in November
2004.
36
CHAPTER 5
RESEARCH METHODOLOGY
37
METHODOLOGY AND SAMPLE DESIGN
The unit of observation and analysis of this survey of the bank customers of
HDFC Bank. The sampling frame in the form of a list of all customers is neither
readily available nor can it be easily prepared. One of the notable features of the
design is that the sample has been taken from a cross section of customers in
Mumbai with the objective of enhancing the precision of the estimates. The total
number of branches in India is 761 out of which 70 branches are covered by
Mumbai city. Since most of the policy decisions are been taken by the head office
which is located at Mumbai most of the centers are located at Mumbai. Hence
Mumbai and its suburb were covered in the sampling survey. A total of 1000
customers in different branches of HDFC Bank were selected in the Sample
frame. Information on some basic characteristics of the customer along with the
service availed from HDFC Bank was collected from these customers. A sub
sample of 50 customers was then used for detailed canvassing.
Coverage: -
Mumbai City and its suburb have been covered by the survey.
Reference Period:
The field operation for the customer pre-tested questionnaire was carried out
Definition of Customer:
38
A Definition to Guide Customer Service:-
The Customers are also classified into the following five income categories
based on the data collected on customers income. The income categories
were:-
39
comparatively less then the upper middle and higher income group customers.
Because high and upper income group customers expected to have larger
savings available for investment, which they invest in a variety of instruments
provided by the bank.
40
CHAPTER 6
INTERPRETATIONS USING
41
Distribution of Sample Customers according to their Monthly income
It can be seen from the above, that the data collected for sample
customers according to their monthly income. The Customers having a monthly
income of Rs.10001 to Rs.25000 was the maximum i.e. 22 numbers of
customers. And the second higher income group is from Rs.25001 to Rs.50000
i.e 12 numbers of customers. And least income monthly group is from Rs.100001
and above i.e. 3 numbers of customers.
42
It can be seen from the above table and the diagram that maximum number of
customers using ATMs facility that is 47 number of customer utilized the ATMs
facility out of 50 numbers of customers and second higher services utilized by the
customers is Net banking that is 27 out of 50 customers. Third facility used by
customers is Insta Alerts that is 20 out of 50 customers. Minimum number of
customers using Locker and E-Payment services that is 04 and 07 out of 50
customers.
43
Since the purpose of the survey is only to estimate the number and level of
services availed of by the customers. The information on the type of the services
was also collected and the distribution is as under.
Income Level
Type of Service Below 10001 25001 50001 Above
10000 -25000 50000 100000 100000
Net Banking 2 10 8 4 3
Phone Banking 2 3 6 3 1
E-Payment - - 2 4 1
Insta Alerts - 8 6 3 3
Locker -- -- -- 1 3
ATMs 4 22 12 6 3
It can be seen from the above, that the data collected for sample customers
according to their monthly level of income. All kind off services are used by only
upper middle and high income group customers that can seen from the above
table. Below Rs.10000 monthly incomes group customers normally use ATMs,
net banking and phone banking services. And Rs.10001 to Rs.25000 monthly
income group customers use net banking, phone banking, insta Alerts and ATMs.
And above Rs.25001 to Rs.50000 income group customers use net banking,
phone banking, E-payment and ATMs services. But from the above table Net
banking, phone banking and ATMs services are used all kind of income group
customers and the service like locker and E-payment are used only upper middle
44
and high incomer group customers. But the maximum type of services availed by
the customer like ATMs, Net Banking and Phone Banking.
It can be seen from the above table that profession wise distribution off monthly
income are given in this salaried persons monthly income distribution are more
number i.e. less than 10000/- (2 persons), above 10001 25000/- (20 persons),
25001-50000/- (4 persons) and 50001 100000/- (2 persons). And the second
maximum distribution is Businessmen.
Above
Less than 25001 50001 Above
Age 10001
10000 50000 100000 100000
25000
18 24 5 4 1
25 39 2 15 4 3
40 59 -- 2 7 2 2
60 and above -- 1 -- 1 1
45
From the above table the age wise distribution of monthly income are given in
this the age between 25 39 the monthly income group customers are more
comparatively other age group. And the second maximum monthly income age
group is 40 59. And the least income age group are 60 and above.
Number of
Level of Services customers
Excellent 10
Very Good 9
Good 28
Average 7
Bad 2
It can be seen from the above table that the level of services provided by the
bank. In this table 28 % of customers say Good. And 10% of customers say
Excellent, 9% of customers say Very Good, 7% of customers say Average
and 2% of customers say Bad.
Number of customers
Advise
Ranking Independentl Existing Tele Economic
from
y Customers Marketing situation
Friends
1 19 23 1 3 4
2 18 18 7 5 2
3 10 5 16 9 10
4 2 2 14 16 16
5 1 2 12 17 18
46
From the above table and diagram we can see that the ranking of the customers
according to the factors the first rank is given to Independently factors the
decision are taken by the customer itself rather then he ask other or other
factors. The second rank is given to Advise from Friends and Independently in
this customer takes some advice from friends and relative before take some
services from the bank. The third rank gives to Existing customers the customer
asks some kind of information from exiting customers before take the services
from the customers. Fourth rank gives toTele Marketing and Economic
Situation in this the customer take some kind of advice from the tele-marketing
executives and customer itself analysis the economic situation regarding their
products and services accordingly the customer take the decision. And the fifth
47
rank is given to Economic situation. The services may be Phone Banking, Net
Banking, ATMs, Mobile Banking, E-Payment, Insta Alerts and Lockers Etc. before
use the services from the bank the customer are rank the services and then he
buy the services from the bank.
48
CHAPTER -7
CONCLUSION
49
The survey findings are follows:-
Debit cards have become very popular in India. But, as of date, ATM/Debit
cards have still their primary usage for cash withdrawal from the ATM
machines.
While credit cards are more popular in making payments online. There is a
growing awareness regarding RTGS amongst Indians but still around 73%
of the respondents surveyed have never used RTGS.
Fund transfer and Online bill payment emerged as the most popular
payment options in internet banking, with over 60% of the respondents
using this method.
Market size and growth of Indian retail sector segmented by sectors, retail
formats, and regional segmentations.
50
Increasing employment opportunities with stepping up of international
retail brands in India.
Fee based income from remittance is shrinking due to RTGS and other
technology initiatives.
Booming economy and continuous per capita income will further push the
living standards of people.
Retail Banking customers are demanding more and more features and
product differentiation.
51
More and more Retail customers in the age group of 25-39 with high
saving potential.
Business potential in Semi urban and rural areas are very high, which is
yet to be explored.
CHAPTER - 8
LIMITATION
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1. It was difficult to collect data from all over the country on account of restraints
of time and finance. Yet best endeavors have been made to collect latest
information and data from as many sources as have been possible.
2. The study has used convenience sample. Banks are not willing to share the
information about customers profile because of privacy policies.
3. As the sample size is very small, geographical and regional differences could
not be made.
4. Because of the time constraint, this study includes only few suburban districts
within Mumbai
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CHAPTER 9
RECOMMENDATIONS
54
From this report provides an insight into ATM users perceptions,
requirements and problems Report will help banks and vendors in making
ATM transactions user friendly and satisfying.
The findings of the survey were rather surprising from more people
accepting the norms of depositing cash / cheques in these ATMs to
waiting in long queues and finding no money left in the machine.
As many banks encourage the use of ATMs to their clients, ATMs have
today become indispensable tools for majority of banking transactions.
But, the drawbacks still seem to outweigh the benefits.
The trends have changed with people visiting more frequently to these
machines than monthly and having started using value-added services like
bill-payment and mobile top-ups among others.
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Also highlights minor issues generally overlooked by banks like non
availability of deposit envelopes and not being able to print receipts after a
transaction.
Customer tendency to borrow more and repay less may adversely affect
the NPA levels in future.
Future delinquency rates are not properly factored in fixing the Retail
credit pricing by few banks
Existing Retail scoring models may not predict impact of mild recession
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ANNEXURE
__________________________
__________________________
3) Age: __________
4) Occupation_____________________
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5) What facilities you utilize from your bank
Credit Net
Home Loan Saving A/c ATM
Card Banking
OD / FD /
E-Payment Insta Alerts Lockers. CC
Yes No
8) Please rank the factors according to you is necessary for utilizing the services
of bank
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Excellent Very Good Good
Average Bad
10) Based on your past experience with bank, have you ever changed your
Bank?
Yes No
11) What measures should be taken for improving the level of services of HDFC
Bank.
_________________________________________________________________
_________________________________________________________________
Bibliography
www.hdfcbank.com
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