Perception Of current account Holder in Sitapur City

A Summer Project Report submitted in partial fulfillment of the requirements for the award of
the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

Approved by AICTE
2009-11

(Equivalent to MBA)

Company Mentors Faculty Mentor

Mr. Anshul Mehrotra Mr.Sachin Malhrotra
BBM Chairperson IT

INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

30/06/2010
 DECLARATION

I hereby declare that all information and data provided in this report are collected
from secondary source and are true to the best of my knowledge. References are
quoted and due credit given to the sources.

Signature of Student: -
Rishabh Agarwal (09244)

2
 ACKNOWLEDGEMENTS

It is my immense pleasure to present the Project report on “PERCEPTION OF

CURRENT ACCOUNT HOLDER IN SITAPUR CITY”. Here I would like to
express my deep sense of gratitude to my industry mentors, Mr. Anshul Mehrotra
Backup Branch Manager HDFC Bank Ltd. Sitapur for his timely guidance,
valuable support and encouragement at every step of preparing this report. I would
also like to thank my project guide and my mentor Prof. Sachin Mehrotra and all
faculty members and all those persons who have directly or indirectly helped me in
providing the books and amenities which have helped in development of this
report, without such help this report would not have been possible.

3
 TO WHOM SO EVER MAY IT CONCERN

This is to certify that Mr. Rishabh Agarwal, student of PGDM (Full Time) 2009-2011 batch, IMS
Ghaziabad, has done his project under my supervision and guidance.

During his project he was found to be very sincere and attentive to small details whatsoever was
told to him.

I wish him good luck and success in his future.

PROF. SACHIN MALHOTRA

FACULTY
IMS GHAZIABAD

4
CERTIFICATE

5
 PREFACE

The managerial know-how, day-by-day happening marketing advances are must to know.
Summer training provides a chance to know all these advances Summer Training in business
organization in develops a sense of critical analysis of the real managerial situation to which
students are exposed. This gives them an opportunity to apply their conceptual theoretical &
imaginative skills in a real life situations and to evaluate the results there of. HDFC is a name
renowned not only in Housing but also in Banking and Insurance sector. HDFC Bank is now
a brand image in private banking sector. While my two month project, I visited different
customer for the purpose of opening accounts in HDFC Bank. Practical training through
experts of HDFC Bank gave me actual input to fulfill my real aim.
This report is the written account of what I learnt during my training.

6
 COMPANY PROFILE

Complete name of the company-

The Housing Development Finance Corporation Limited (HDFC Bank Ltd.)

Slogan-
“We Understand Your World”

Business objective-
HDFC Bank's mission is to be a World-Class Indian Bank. The

objective is to build sound customer franchises across distinct businesses so as to be the preferred

provider of banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to

maintain the highest level of ethical standards, professional integrity, corporate governance and

regulatory compliance. HDFC Bank's business philosophy is based on four core values -

Operational Excellence, Customer Focus, Product Leadership and People.

7
 Title of the Project

“Perception of Current Account Holders in Sitapur City”

Different objective behind conducting this project

 Identifying Target Customers.

 Customer Orientation towards Features available in HDFC Bank Current Account
products.
 Listing of the product preferences in Current Account.
 Recommendation on Market potential For HDFC Bank in Current Account.

8
 EXECUTIVE SUMMARY

Introduction

The project was carried out for understanding the customer behavior in Current
Account of HDFC Bank Sitapur Branch and its market potential. HDFC Bank was
established in the year 1994, they are old player in banking sector. The bank has two
principle client segments –customer and asset management. The bank follows values
such as – integrity, teamwork, respect, professionalism, & mission. The segment of
bank we are considering here is- Corporate banking. The product out of which have
chosen for research is Current Accounts.
This research helps us in finding out the customers view regarding the product and

services offered by the HDFC Bank and awareness by promotion and also identifying

the market potential of the product offered by the HDFC Bank.

9
 About the project-

The project was carried out in Sitapur city with an objective of knowing satisfaction

level of customer with bank services and do customers are aware about the different

types of Current Account with various schemes, services and different offers provide

by the bank. The total sample size taken was two hundred (200) from various market

of the Sitapur. The research shows that the market potential for the bank is very good

and so many customers are aware of the services provided by the bank which are not

provided by other banks. On the other hand we have also the existing customers of

HDFC Bank who are satisfied with the working style of bank, but want continuous

updates about the new service schemes and other products of bank. They want that

bank should do promotional activity as – Advertising. So that they can be updated

while seating at home.

10
 History Of The Company:

HDFC Bank Ltd.

Type Public (BSE: 500180, NYSE: HDB)

Founded 1994
Headquarte
Mumbai, India
rs
Banking
Industry Insurance
Capital Markets and allied industries
Products Financial services
Website www.hdfcbank.com

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India, incorporated

in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The

Bank was promoted by the Housing Development Finance Corporation, a premier housing

finance company (set up in 1977) of India.

 HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all

branches of the bank are linked on an online real-time basis.

 As of September 30, 2008 the bank had total assets of INR 1006.82 billion.

 For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up 41%

from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at

11
 Rs.19,622.8 crore in 2008-09.

History
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more
than 1,000. Though, the official license was given to Centurion Bank of Punjab branches, to
continue working as HDFC Bank branches, on May 23,

12
 CHARACTERISTICS OF SERVICES
With reference to banking

1. Intangibility
Financial services are generally intangible, but the service providers go to
considerable lengths to ‘tangibles’ the service for customers. Regular bank
statements, ‘gold’ credit cards, and insurance policies are all examples of the way
in which the financial services are presented to customers. They can enhance the
image of the service and the provider can even bestow status or implied benefits
upon the user as with a gold card. Physical reminders of the service product, brand
name and value serve to reassure the consumer and help the organizations
positioning.

2. Inseparability
The degree of inseparability depends upon the type of service and the actual
supplier. Many everyday transactions are carried out now via automated services-
the automated teller machines (ATMs), net banking etc.
+Additionally, many financial services are sold by brokers and agents of various
kinds. Services are frequently handled by agents are credit card and other
currency/travelers cheque encashment.

3. Heterogeneity/variability
13
 The complexity of the service transaction process will determine the extent
of variability and this can differ to a large extent between institutions and even with
one institution. The greater the degree of automation within any transaction
process, the greater the degree of standardization. Thus simple transactions may be
carried out via ATMs and completely standardized or via branch counter where
they might be fairly standardized but subject to some variation in quality.
Total standardization is not necessarily desirable from the consumer’s point
of view. A friendly greeting or being addressed by name can enhance service
delivery and while an ATM cannot arrange an emergency overdraft facility when
funds are low, branch staff can look at the standing of individual customers and
make arrangements when appropriate, satisfying the customer and profiting from
charges applying to the account.

4. Perishability
The degree of Perishability depends on the type of service. If a cheque needs
to be cleared by a certain date and the system causes delay then the benefits to the
consumer are lost so the service could be said to be perishable. By and large,
money and financial services are enduring in nature. If a bank’s reserves are not
fully utilized profitably through lending or investment they will still retain their
worth and may be utilized again at a later date. A bank branch, which does not have
any customers at all on a particular day, may actually gain rather than lose profit as
staff may be able to use the peace and quiet to catch up on other work.

14
 HDFC BANK PRODUCTS

PERSONAL BANKING

Loan Product Deposit Product Investment & Insurance

• Auto Loan • Saving a/c • Mutual Fund

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

15
 • Construction
Equipment
Finance
• Health Care
Finance
• Education Loan
• Gold Loan

Cards Payment Services Access To Bank

• Credit Card • Net Safe • Net Banking

• Debit Card • Merchant • One View
• Prepaid Card • Prepaid Refill • Installer
• Bill pay Mobile Banking
• Visa Bill pay • ATM
• Insta Pay • Phone Banking
-------------------------------- • Direct Pay • Email Statements
Forex Services • Visa Money • Branch Network
-------------------------------- Transfer
• Product & Services • e–Monies
• Trade Services Electronic Funds
• Forex service Transfer
Branch Locater • Online Payment of
• RBI Guidelines Direct Tax

WHOLESALE BANKING

Corporate Small and Medium Financial Institutions and

Enterprises Trusts

16
• Funded Services • Funded Services BANKS
• Non Funded • Non Funded Services • ClearingSubMembership
Services • Specialized Services • RTGS – submembership
• Value Added • Value added services • Fund Transfer
Services • Internet Banking • ATM Tie-ups
• Internet Banking • Corporate Salary a/c
• Tax Collection

BANKING SECTOR IN INDIA

A bank is an institution that deals in money and its substitutes and provides other financial
services. Banks accept deposits and make loans or make an investment to derive a profit from the
difference in the interest rates paid and charged, respectively.

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of them
only work in rural sector while others in both rural as well as urban. Many even are only catering
in cities. Some are of Indian origin and some are foreign players.

India’s economy has been one of the stars of global economics in recent years. It has grown by
more than 9% for three years running. The economy of India is as diverse as it is large, with a
number of major sectors including manufacturing industries, agriculture, textiles and handicrafts,
and services. Agriculture is a major component of the Indian economy, as over 66% of the Indian
population earns its livelihood from this area. Banking sector is considered as a booming sector
in Indian economy recently. Banking is a vital system for developing economy for the nation.
However, Indian banking system and economy has been facing various challenges and problems
which have discussed in other parts of project.

Without a sound and effective banking system in India it 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 India's banking system has several outstanding achievements to its credit. The most
17
striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in
India. In fact, Indian banking system has reached even to the remote corners of the country. This
is one of the main reasons of India's growth process. The government's regular policy for Indian
bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of
India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or 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 Indian 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 Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

1 New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

After 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. This resulted that Indian banking

is growing at an astonishing rate, with Assets expected to reach US$1 trillion by

2010.

18
 Company & Its Competitors

FOREIGN BANKS IN INDIA

Major foreign banks in India are:

· ABN-AMRO Bank

· Abu Dhabi Commercial Bank Ltd.

· American Express Bank Ltd

· BNP Paribas

· Citibank

· DBS Bank Ltd

· Deutsche Bank

· HSBC Ltd

· Standard Chartered Bank

Nationalized Banks in India

List of Public Sector Banks in India is as follows:

· Allahabad Bank

· Andhra Bank

· Bank of Baroda

· Bank of India

· Bank of Maharashtra

19
· Canara Bank

· Central Bank of India

· Corporation Bank

· Dena Bank

· Indian Bank

· Indian Overseas Bank

· Oriental Bank of Commerce

· Punjab and Sind Bank

· Punjab National Bank

· State Bank of Bikaner & Jaipur

· State Bank of Hyderabad

· State Bank of India (SBI)

· State Bank of Indore

· State Bank of Mysore

· State Bank of Patiala

· State Bank of Saurashtra

· State Bank of Travancore

· Syndicate Bank

· UCO Bank

· Union Bank of India

· United Bank of India

· Vijaya Bank .

20
 Private Banks in India

Major Private Banks in India are:

· Bank of Rajasthan

· Bharat Overseas Bank

· Catholic Syrian Bank

· Centurion Bank of Punjab

· Dhanalakshmi Bank

· Federal Bank

· ICICI Bank

· IDBI Bank

· IndusInd Bank

· ING Vysya Bank

· Jammu & Kashmir Bank

· Karnataka Bank

· Karur Vysya Bank

· Kotak Mahindra Bank

· SBI Commercial and International Bank

· South Indian Bank

· United Western Bank

21
 • UTI Bank

Organizational goals
HDFC's main goals are to

(a) develop close relationships with individual households,

(b) maintain its position as the premier housing finance institution the country.

(c) transform ideas into viable and creative solutions,

(d) provide consistently high returns to shareholders, and

(e) to grow through diversification by leveraging off the existing client base.

Business focus-

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

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained 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.

22
Capital structure-

As on 31st March, 2009 the authorised share capital of HDFC Bank is Rs. 550 crore. The

paid-up capital as on the said date is Rs. 425,38,41,090/- ( 42,53,84,109 equity shares

of Rs 10/- each). The HDFC Group holds 19.38% of the Bank's equity and about 17.70 % of

the equity is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). 27.69 % of the equity is held by Foreign Institutional

Investors (FIIs) and the Bank has about 5,48,774 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National

Stock Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are

listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's

Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN

No US40415F2002.

Times bank amalgamation-

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new

private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with

HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved

by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added

significant value to HDFC Bank in terms of increased branch network, expanded geographic
23
reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and

leverage alternative delivery channels.

Distribution network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 3295 branches spread over 487 cities across India. All branches are linked
on an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers
are located as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing/settlement bank to various leading stock
exchanges, the Bank has branches in the centres where the NSE/BSE has a strong and
active member base

March 2007 March 2008 March 2009

Cities 316 327 487

Branches 684 1229 1412

ATMs 1605 2400 3295

The Bank also has a network of about over 3295 networked ATMs across these
cities.

24
 Management

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor

was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya

Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in

1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is

composed of eminent individuals with a wealth of experience in public policy, administration,

industry and commercial banking. Senior executives representing HDFC are also on the

Board. Senior banking professionals with substantial experience in India and abroad head

various businesses and functions and report to the Managing Director. Given the professional

expertise of the management team and the overall focus on recruiting and retaining the best

talent in the industry, the bank believes that its people are a significant competitive strength.

Technology

HDFC Bank operates in a highly automated environment in terms of information technology

and communication systems. All the bank's branches have online connectivity, which enables

the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also

provided to retail customers through the branch network and Automated Teller Machines

(ATMs).

25
 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 agro-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 corporates including multinationals,

companies from the domestic business houses and prime public sector companies. It is

recognised 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 alternative delivery

channels like ATMs, Phone Banking, Net Banking and MobileBanking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and

26
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 electronicform.

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 Equity

liberalization of the financial markets in India, corporates 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.

27
 Business strategy
HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves

against international standards and best practices in terms of product offerings,

technology, service levels, risk management and audit & compliance. The objective is to

build sound customer franchises across distinct businesses so as to be a preferred provider of

banking services for target retail and wholesale customer segments, and to achieve a healthy

growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do

this while ensuring the highest levels of ethical standards, professional integrity, corporate

governance and regulatory compliance. Continue to develop new product and technology is

the main business strategy of the bank. Maintain good relation with the customers is the main

and prime objective of the bank.

HDFC BANK business strategy emphasizes the following :

• Increase market share in India’s expanding banking and Financial services industry

by following a disciplined growth strategy focusing on quality and not on quantity and

delivering high quality customer service.

• Leverage our technology platform and open scaleable systems to deliver more products to

more customers and to control operating costs.

• Maintain current high standards for asset quality through disciplined credit risk

management.

28
• Develop innovative products and services that attract the targeted customers and

address inefficiencies in the Indian financial sector.

• Continue to develop products and services that reduce bank’s cost of funds.

• Focus on high earnings growth with low volatility.

Human resource-
The Bank’s staffing needs continued to increase during the year particularly in the retail

banking businesses in line with the business growth. Total number of employees increased

from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank continues to

focus on training its employees on a continuing basis, both on the job and through training

programs conducted by internal and external faculty. The Bank has consistently believed that

broader employee ownership of its shares has a positive impact on its performance and

employee motivation. The Bank’s employee stock option scheme so far covers around 9000

employees.

Credit rating-

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research

Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit program

has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments

considered to be "of the best quality, carrying negligible investment risk". CARE has also

rated the bank's Certificate of Deposit (CD) program "PR 1+" which represents "superior

capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd.

(100% subsidiary of Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Bank's deposit

program, with the outlook on the rating as "stable". This rating indicates "highest credit

quality" where "protection factors are very high"

29
 The Bank also has its long term unsecured, subordinated (Tier II) Bonds

rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and

Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of

"CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has

assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also

assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond

issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt

programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings

awarded were the highest assigned by the rating agency for those instruments.

Corporate governance rating-

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced value

creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL

GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation

for all its stakeholders while adopting sound corporate governance practices is the highest.

Merger with Centurion Bank of Punjab Limited-

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of

amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The

shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC
30
Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion Bank of

Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of

India, stock exchanges and Other requisite statutory and regulatory authorities. The

shareholders Also accorded their consent to issue equity shares and/or warrants convertible

into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other

promoter group companies on preferential basis, subject to final regulatory approvals in

this regard. The Shareholders of the Bank have also approved an increase in the

authorized capital from Rs.450 crores to Rs.550 crores. Promoted in 1995 by Housing

Development Finance Corporation (HDFC), India's leading housing finance company,

HDFC Bank is one of India's premier banks providing a wide range of financial products and

services to its over 11 million customers across hundreds of Indian cities using multiple

distribution channels including a pan-India network of branches, ATMs, phone banking, net

banking and mobile banking. Within a relatively short span of time, the bank has emerged

as a leading player in retail banking, wholesale banking, and treasury operations, its three

principal business segments. The bank's competitive strength clearly lies in the use of

technology and the ability to deliver world-class service with rapid response time. Over the

last 13 years, the bank has successfully gained market share in its target customer

franchises while maintaining healthy profitability and asset quality.As on March 31, 2008,

the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended

March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore), up

39.3%, over the corresponding year ended March 31, 2007. As of March 31, 2008

total deposits were INR 1007.69 billion,(Rs.100,769 crore) up 47.5% over the

corresponding year ended March 31, 2007. Total balance sheet size too grew by 46.0% to

INR 1,331.77 billion (133177 crore). Leading Indian and international Publications have

recognized the bank for its performance and quality.Centurion Bank of Punjab is one of

31
the leading new generation private sector banks in India. The bank serves individual

consumers, small and medium businesses and large corporations with a full range of

financial products and services for investing, lending and advice on financial planning. The

bank offers its customers an array of wealth management products such as mutual funds,

life and general insurance and has established a leadership 'position'. The bank is also

a strong player in foreign exchange services, personal loans, mortgages and agricultural

loans. Additionally the bank offers a full suite of NRI banking products to Overseas

Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank

(LKB), post obtaining all requisite statutory and regulatory approvals. This merger

has further strengthened the geographical reach of the Bank in major towns and cities across

the country, especially in the State of Kerala, in addition to its existing dominance in the

northern part of the country. Centurion Bank of Punjab now operates on a strong

nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country,

supported by employee base of over 7,500 employees. In addition to being listed on

the major Indian stock exchanges, the Bank’s shares are also listed on the

Luxembourg Stock Exchange.

32
 Awards and Achievements - Banking Services

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank".

We realised 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.

It is extremely gratifying that our efforts towards providing customer convenience have been

appreciated both nationally and internationall

33
 Board committee

The Board has constituted committees of Directors to take informed decisions in the best

interest of the Bank. These committees monitor the activities falling within their terms of

reference. Various committees of the Board were reconstituted during the year due to

induction of additional Director namely; Mr. Pandit Palande.

The Board's Committees are as follows:

Audit and Compliance Committee

Compensation Committee

Investors' Grievance (SHARE) Committee

Risk Monitoring Committee

Credit Approval Committee

The Premises Committee

Nomination Committee

Fraud Monitoring Committee

Customer Service Committee

34
 INDUSTRY PROFILE

Banking in India originated in the first decade of 18th century. The first banks were The

General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now

defunct. The oldest bank in existence in India is the State Bank of India, which originated in

the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency

banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency

banks were established under charters from the British East India Company. They merged in

1925 to form the Imperial Bank of India, which, upon India's independence, became the State

Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their

successors. The Reserve Bank of India formally took on the responsibility of regulating the

Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was

nationalized and given broader powers.

A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta

operations in the 1850s. At that point of time, Calcutta was the most active trading port,

mainly due to the trade of the British Empire, and due to which banking activity took roots

there and prospered.

Early history-

The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at

the end of late-18th century, there were hardly any banks in India in the modern sense of the

term. At the time of the American Civil War, a void was created as the supply of cotton to

Lancashire stopped from the Americas. Some banks were opened at that time to finance

industry, including speculative trading in cotton. With large exposure to speculative ventures,

most of the banks opened in India during that period failed. The depositors lost money and
35
lost interest in keeping deposits with banks. Subsequently, banking in India remained the

exclusive domain of Europeans for next several decades until the beginning of the 20th

century.

Structure of the organized banking sector in India.

At this time, the Indian economy was passing through a relative period of stability. Around

five decades have elapsed since the India's First war of Independence, and the social,

industrial and other infrastructure have developed. At that time there were very small banks

operated by Indians, and most of them were owned and operated by particular communities.

The presidency banks dominated banking in India. There were also some exchange banks and

a number of Indian joint stock banks. All these banks operated in different segments of the

economy. The exchange banks, mostly owned by Europeans, concentrated on financing

foreign trade. Indian joint stock banks were generally under capitalized and lacked the

experience and maturity to compete with the presidency and exchange banks. This

segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the

times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into

separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks such as Punjab National

Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were

founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded

by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in

particular inspired local businessmen and political figures to found banks of and for the

Indian community. A number of banks established then have survived to the present such as

36
Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central

Bank of India.

Post-independence-

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,

paralyzing banking activities for months. India's independence marked the end of a regime of

the Laissez-faire for the Indian banking. The Government of India initiated measures to play

an active role in the economic life of the nation, and the Industrial Policy Resolution adopted

by the government in 1948 envisaged a mixed economy. This resulted into greater

involvement of the state in different segments of the economy including banking and finance.

The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it

became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank

may be opened without a license from the RBI, and no two banks could have common

directors.

However, despite these provisions, control and regulations, banks in India except the State

Bank of India, continued to be owned and operated by private persons. This changed with the

nationalization of major banks in India on 19th July, 1969.

From first world war to independence-

The period during the First World War (1914-1918) through the end of the Second World
37
War (1939-1945), and two years thereafter until the independence of India were challenging

for Indian banking. The years of the First World War were turbulent, and it took its toll with

banks simply Collapsing despite the Indian economy gaining indirect boost due to war-related

economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in

the following table:

Number of banks Authorized capital Paid-up Capital

Years
that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Nationalisation-

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large employer,

and a debate has ensued about the possibility to nationalize the banking industry. Indira

Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual
38
conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank

Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was

swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest

commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political sagacity." Within

two weeks of the issue of the ordinance, the Parliament passed the Banking Companies

(Acquit ion and Transfer of Undertaking) Bill, and it received the presidential approval on 9th

August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated

reason for the nationalization was to give the government more control of credit delivery.

With the second dose of nationalization, the GOI controlled around 91% of the banking

business of India. Later on, in the year 1993, one of the nationalized banks, namely, New

Bank of India was merged with Punjab National Bank. It was the first and only merger of a

Nationalized Bank into a Nationalized Bank, resulting in the reducing the number of

Nationalized Banks from 20 to 19.

Liberalization-

In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization

and gave licenses to a small number of private banks, which came to be known as New

Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of

such new generation banks to be set up)which later amalgamated with Oriental Bank of

Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This

move, along with the rapid growth in the economy of India, kick started the banking sector in

India, which has seen rapid growth with strong contribution from all the three sectors of

banks, namely, government banks, private banks and foreign banks.

39
The next stage for the Indian banking has been setup with the proposed relaxation in the

norms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%,at present it has gone up to 49%

with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were

used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new

wave ushered in a modern outlook and tech-savvy methods of working for traditional

banks. All this led to the retail boom in India. People not just demanded more from their

banks but also received more.

Current Account Products

40
41
 HDFC PREMIUM REGULAR
HDFC
Features Bank Current Current
Bank PLUS
TRADE Account Account

821, 200,
825, 221, 205, 208,
227, 232, 824, 256, 823, 202, 219, 220,
Product Codes 830, 819, 832, 820, 206, 833, 250,835,
826,279*, 810 814, 827 831, 813,
843* 811, 229,
226

Average
Rs.100,000/ Rs.40,000/ Rs.25,000/ Rs.10,000/
Quarterly
- - - -
Balance (AQB)

Less than
Rs.50,000 -
Non- Rs.6,000
Maintenance
Rs.1,200/- Rs.900/- Rs.750/-
Charges (per
Quarter) Rs.50,000
& above -
Rs.1,500

Mode of
Average of daily closing balances of each day
calculating
spread over a period of three months.
AQB

42
 CHEQUE BOOK

PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account

Payable-at-par Payable-at-par Payable-at-par Payable-at-par

Cheque Book
Charges
(Issued by 300 cheque 200 cheque 100 cheque
Bank) leaves Free leaves Free leaves Free
per month. per month. per month.
Charges Rs 2/-
Charges Rs 2/- Charges Rs 2/- Charges Rs 2/-
per leaf
per leaf per leaf per leaf
beyond 300 beyond 200 beyond 100
leaves leaves leaves

43
 REMITTANCE TRANSACTIONS

PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Local
cheques/A/c to
a/c funds
transfer
transactions at Free Free Free Free
home branch
location
(Payment
/Collection)
Anywhere Transaction
A/c to A/c Fund
Transfer within
Rs.15/- per Rs.15/- per
HDFC Bank - Free Free
transaction transaction
anywhere
transactions

Free up to Rs.100 Free up to Rs.50

Free up to Rs. 25
Payments & lacs per month, lacs per month,
lacs per month, Charges at
Collections at beyond which beyond which
Charges at Rs.1.50/1000, min
HDFC Bank charges @ Rs. charges @ Rs.
Rs.1.50/1000, Rs. 25
Locations 0.50/1000, min 0.50/1000, min
min Rs. 25
Rs. 25 Rs. 25

44
 REGULAR

All transactions All transactions

All transactions All transactions
are subject to a are subject to a
are subject to a are subject to a
maximum of 250 maximum of 100
maximum of 150 maximum of 100
transactions per transactions per
transactions per transactions per
month, beyond month, beyond
month, beyond month, beyond
which charges which charges
Bulk which charges @ which charges @
@ Rs.5/- per @ Rs.5/- per
Transacti Rs.5/- per Rs.5/- per
transaction transaction
on transaction would transaction would
would be levied. would be levied.
Charges be levied.Includes be levied.Includes
Includes all Includes all
all Local / all Local /
Local / Local /
Anywhere Anywhere
Anywhere Anywhere
clearing and clearing and
clearing and clearing and
transfer transfer
transfer transfer
transactions transactions
transactions transactions

45
 CASH TXN. DEPOSIT

PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Free upto Rs.10
Free upto Rs.5 Free upto Rs.3 Free upto Rs.2
lacs per month or
lacs per month or lacs per month or lacs per month or
50 transactions
40 transactions 25 transactions 25 transactions
which ever is
which ever is which ever is which ever is
lower, Deposit in
lower, Deposit in lower, Deposit in lower, Deposit in
excess of Rs.10
excess of Rs.5 lacs excess of Rs.3 lacs excess of Rs.2 lacs
lacs or 50
or 40 transactions or 25 transactions or 25 transactions
transactions will
will be charged @ will be charged @ will be charged @
Cash Deposit- be charged @
Rs.2/- per Rs.2/- per Rs.2/- per
Home Branch Rs.2/- per
Rs.1,000/-, Rs.1,000/-, Rs.1,000/-,
Location Rs.1,000/-,
minimum Rs.50/-. minimum Rs.50/-. minimum Rs.50/-.
minimum Rs.50/-.
(Cash deposit at (Cash deposit at (Cash deposit at
(Cash deposit at
non-home non-home non-home
non-home
branches within branches within branches within
branches within
home branch city home branch city home branch city
home-branch city
subject to limit of subject to limit of subject to limit of
subject to limit of
Rs.50,000/- per Rs.25,000/- per Rs.10,000/- per
Rs.100,000/- per
day day) day)
day)

Maximum Maximum Maximum

Cash Deposit Rs.100,000/- per Rs.50,000/- per Rs.25,000/- per
-Non Home day. Charges @ day. Charges @ day. Charges @ Not Allowed
location Rs. 3/1000, min Rs. 3/1000, min Rs. 3/1000, min
Rs. 50 Rs. 50 Rs. 50

46
 Features APEX Current FLEXI Current MAX Current
Account Account Account

Free upto Rs. 100 Free upto Rs. 50 Lakh

Lakh per month or 50 per month or 50
Free @ 12 times
Transactions Transactions
actual AMB
whichever is lower. whichever is lower.
maintained in
Deposit in Deposit in excess of
transactions month or
excess of Rs. 100 Lakh Rs. 50 Lakh per
50 transitions ,which
per month or 50 month or 50
ever is lower , deposit
Cash Deposit-Home transactions will be transactions will be
in excess of 12 times
Branch Location charged @ Rs.1/- per charged @ Rs.1/- per
AMB or 50
Rs. 1000/-, minimum Rs. 1000/-, minimum
transactions will be
Rs.50/-. (Cash deposit Rs.50/-. (Cash deposit
charged @ Rs.3/- per
at non- home at non- home branches
Rs. 1000/-, minimum
branches within home within home branch
Rs.50/- per
branch city subject to location subject to
transaction
limit of Rs.1,00,000/- limit of Rs.1,00,000/-
per account per day) per account per day)

Charges @ Rs 3 per
Maximum
Rs 1000/-, minimum Maximum
Rs.1,00,000/- per day.
of Rs 50 per Rs.1,00,000/- per day.
Cash Deposit -Non Charges @ Rs.3/- per
transaction. Charges @ Rs.3/- per
Home location Rs.1,000/-, minimum
(Maximum deposit Rs.1,000/-, minimum
Rs. 50/- per
allowed up to Rs Rs. 50/-
transaction
1,00,000/- per day)

47
 TANSACTION LIMITS

CASH DEPOSIT
Non-Home Non-Home
Product Depositor Home-Branch Branch in the Location
same city (Intercity)
(Intra-City)
Self No Limit Maximum
Regular Third Party No Limit Rs.10,000 per
day per
account Not Allowed
(irrespective of
self or Third
Party)
Self No Limit Maximum Maximum
Premium Rs.25,000 per Rs.25,000 per
Third Party No Limit day per day per
account account
(irrespective of (irrespective of
self or Third self or Third
Party) Party)
Self No Limit Maximum Maximum
Trade Rs.50,000 per Rs.50,000 per
Third Party No Limit day per day per
account account
(irrespective of (irrespective of
self or Third self or Third
Party Party
Self No Limit Maximum Maximum
Plus Rs.1,00,000 per Rs.1,00,000 per
Third Party No Limit day per day per
account account
(irrespective of (irrespective of
self or Third self or Third
Party Party

48
 CASH TXN. WITHDRAWL

PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Cash
Free at Home Free at Home Free at Home Free at Home
Withdrawal-
Branch Branch Branch Branch
Home Branch
Free cash Free cash Free cash
withdrawals withdrawals withdrawals
upto Rs.50,000/- upto Rs.50,000/- upto Rs.25,000/-
Cash
per day, beyond per day, beyond per day, beyond
withdrawals
which charges which charges which charges
charges @
Cash @ Rs.2/1000, @ Rs.2/1000, @ Rs.2/1000,
Rs.2/1000, min
Withdrawal- min Rs.50/- min Rs. 50/- min Rs. 50/-
Rs. 50 Third
Non Home (Only for (Only for (Only for
party cash
Branch- incremental incremental incremental
withdrawal
Intracity & amount), Third amount), Third amount), Third
allowed only up
Intracity party cash party cash party cash
to maximum Rs.
withdrawal withdrawal withdrawal
50,000/- per
allowed only up allowed only up allowed only up
transaction.
to maximum Rs. to maximum Rs. to maximum
50,000/- per 50,000/- per Rs.50,000/- per
transaction. transaction. transaction.

49
 APEX Current FLEXI Current MAX Current
Features
Account Account Account

Cash Withdrawal-
Free Free Free
Home Branch
Free cash Free cash
Free cash
withdrawals upto withdrawals upto
withdrawals upto
Rs.2,00,000/- per Rs.50,000/- per day,
Rs. 1,00,000/- per
day, beyond which beyond which
day, beyond which
charges @ Rs. 2/- charges @ Rs. 2/-
charges @ Rs. 2/-
per Rs.1000/-, min per Rs.1000/-, min
per Rs.1000/-, min
Cash Withdrawal- Rs.50/- per Rs.50/- per
Rs.50/- (Only for
Non Home Branch- transaction (Only transaction (Only
incremental
Intracity & for incremental for incremental
amount), Third
Intracity amount), Third amount), Third
party cash
party cash party cash
withdrawal allowed
withdrawal allowed withdrawal allowed
only up to
only up to only up to
maximum
maximum Rs. maximum Rs.
Rs.50,000/- per
50,000/- per 50,000/- per
transaction.
transaction. transaction

50
 RESEARCH METHODOLOGY

Bank basically means business and in business collection of raw data allows the

managers to see the real scenario and then take a decision as per the data obtained.

There are several implications in this statement:

• The bank gets a clear picture of the ULIP Market scenario.

• They can examine the available information in the form of data to make a

decision

• They can even get a clear picture of the scenario or potential of the

Savings Account and ULIP’s of their banks in comparison to other banks.

• The information can only be gathered by data collection and then

analyzing the available data.

Therefore, it can be said that the data collection is an important part of the project.

Data Information
Raw numbers

The projected objectives were considered and as per the requirement a market
survey was done.

Procedure:
The procedure that followed can be enlisted as below:

• Reading about the product

• Deciding on the objective to proceed.

51
• Developing Survey instruments

• Conducting personal interviews of different age-groups, sex, monthly income

and occupation through a Questionnaire.

• Finally analyzing the data of various Geographic areas and trying to study

with the other players.

Process adopted:

 Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave not only in
depth knowledge about what is been offered by other players but also proved
useful while developing the questionnaire

Customer Survey:

The people play an important part as a clear perception of people about the product
can be estimated and known. Studying the need levels of the people regarding the
Insurance product can be observed. It was very useful in knowing about the
requirements of the people.

Referred to brochures and websites of competitors:

To understand the competitors product brochures and websites of various players

were referred and a competitive analogy of all the information is been made.

Data source-

Primary Data- It is collected through questionnaire, direct observation of

customer, interview etc.

Sampling Plan-

52
Sampling Unit-Self employed business man, Shop Owner
Sampling size- 200 units.
Sampling Technique- Market Allocation.

Data collection tools-

The questionnaires consisted of

1) Multiple choice questions and
2) Open ended question

53
 Research Design:

A two stage Research was conducted:

1. Secondary Research:

Data was collected from websites and catalogues to understand the product of

the different players.

2. Primary Research:

A Primary Research was conducted:

The questionnaire was prepared for the companies and following areas covered:

• competing banks

• Features offered by different banks

• Consumer profile

• Satisfaction level

• Reasons for their investment.

• Desirable features of the product.

Sampling Plan:

Elements:

The target population of the study included the general population above the age of 21

yrs. It will further be based on Stratified Random Sampling.

Sample Size: 200 people

54
 DATA
COLLECTION

55
Primary Data collected:

 Attitudes/Opinions:

Through the questionnaire we have tried to get hold of business preference, inclination

and requirement. Attitude is an important notion in the marketing literature, since it is

generally thought that the attitudes are related to the behavior of businessmen.

 Motivation

Through the questionnaire we have tried to find the hidden need or want of

businessmen and have tried to find if these people can be tapped as the

potential customer for HDFC Bank.

 Behavior:

Behavior concerns what subjects have done or are doing. Through the

questionnaire we have tried to find out the behavior of the individuals regarding

the product and their responses. If the responses are favorable then the person can

be said to be our potential customer. The primary data serves as an important tool

to measure the behavioral trend of the customer. It helps in answering some of the

vital Questions.

Obtaining the Primary Data:

The data collection was primarily done through communication. Communication

involves questioning respondents to secure the desired information, using a data

56
collection instrument called questionnaire. The questions were in writing and so

were the responses.

Versatility:

It is the ability of a technique to collect the information on the many types of

primary data of interest to marketers. It has also been found that some of the

people do not answer truthfully to all the questions especially in the case of the

personal details.

57
 DATA ANALYSIS
Question 4
Monthly Transaction of customers

70%

60%

50%
05L- 20L
40%
20L - 40L

30% 4 0 L - A b o ve

20%

10%

0%
05L- 20L 20L - 40L 4 0 L - A b o ve

The above graph represents that:

1:-There are 59% Customer belonging to 20L-40L.

2:-There are 28% Customer belonging to 05L-20L.

3:-There are 13% Customer belonging to 40L to above.

58
 Question 5
Do you have a Current Account?

3%

97%

Yes No

The above graph represents that:

1:-There are 97% Customers have current account.

2:-There are 03% Customers have not current account.

59
 Question 6
With Which Bank?

The above graph represents that:

1:-There are 35% Customers have account in nationalized bank.

2:-There are 29% Customers have account in co-operative bank.

3:-There are 13% Customers have account in Axis bank.

4:-There are 10% Customers have account in HDFC bank.

60
 Question 8
Which mode of transaction do you avail frequently?

Pay Order, 12%

DD, 32%

Cheque, 76%

Pay
DD
Cheque Order

The above graph represents that:

1:-There are 76% Customers prefer Cheque for their mode of transaction.

2:-There are 32% Customers prefer DD for their mode of transaction.

3:-There are 12% Customers prefer Pay Order for their mode of transaction.

61
 Question 9
Which types of transaction do you made?

Inter city
, 33%

Both
, 52%

Intra City
, 15%

The above graph represents that:

1:-There are 52% Customers prefer Intra as well as Inter city for their transaction.

2:-There are 33% Customers prefer Inter city transaction.

3:-There are 15% Customers prefer Intra city transaction.

62
 Question 10
Your bank assist you in case of any problem

10%

90%

Yes No

The above graph represents that:

HDFC bank prefer generally 90% customers in case of any problem

63
 CONCLUSIONS

1. Almost all the Banks offer similar features and facilities with their Current

accounts, therefore for existing customers of Current Account of any Bank to shift to

another Bank; this is very rarely the criteria or reason.

2. The level of service in terms of delivering whatever is promised, fast

response in case of problems, is the most important benefit that the customers seek,

from the Bank they have a Current Account with.

3. Network reach and visibility of a Bank is a very important criterion for the

customer while opening a Current Account. We can also conclude from our analysis

that network reach in terms of Branches and ATMs is directly proportional to the

market share in case of Private Players.

4. In case of a new customer, if a bank approaches it first for opening a Current

Account with them, then there is a good chance for the bank of getting many future

businesses and cross sales from the deal.

5. Aggressive Marketing is the key to increasing the market share in this area,

since the market has a lot of potential both in terms of untapped market .

64
 RECOMMENDATIONS FOR INCREASING
MARKET SHARE OF HDFC BANK
1. Contract Sales Executive (CSE) should be trained to explain the product features

and its value added services to make customer’s product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to the right

customer so as to ensure a high degree of satisfaction among the customer.

3. The bank needs to make people aware about their products and the basic benefits

they can derive out of it. And also the differential features of its current account as

compared to other banks.70% of the people did not even know about the concept,

benefits and features of its current accounts.

4. The bank should also target small business unit for whom maintenance of the AQB

is not a problem as this segment is not much penetrated.

5. Though the bank offers free doorstep banking once a day this fact is also not known

to many customers or they still do not trust this service what ever the reason the bank

can popularize this service to gain an edge over nationalized banks and Co-operative

Banks.

6. Quality of service has been rated highly important by all demographic factors as a

reason for banking with a particular bank needs to improve the services provided to its

existing customers before attracting more in the future and use word of mouth as a

promotional tool to increase the sales potential of its savings account.

65
 LIMITATIONS

Some of the limitations of the project are listed as below:

 The time period of just 2 months was the major limitation.

 Due to the financial and time constraints a cluster analysis of the population so as to
get better results was not feasible.

 It was difficult to break the ice with the common people initially. It was a daunting
task to convince them to fill in the personal details of the questionnaire where they have
to mention the monthly income, occupation etc.

 To convince the people for a proper interviewing process is also difficult.

 Compilation of data on competitor analysis was difficult due to non-availability of

correct information.

 The figures have been taken as approximations.

66
 BIBLIOGRAPHY

• www.hdfc.com

• www.hdfcbank.com

• www.google.co.in

• Terms and conditions Booklet provided by HDFC Bank

67
 ANNEXURE
QUESTIONNAIRE

1. Name of
Organization____________________________________________________________

2. Contact
Person_________________________________________________________________

3. Contact
No.____________________________________________________________________

4. Monthly
Transaction_____________________________________________________________

5.Do you Have Current Account?

(a) Yes (b) No

6.If yes which bank?

o ICICI

o HDFC

o Co-Operative Banks

o Nationalized
Banks_____________________________________________________

7.Which Factors do you consider for opening a Current Account?

o Accessibility o Cheque Pick up
o Minimum Balance o Net Banking
o DD/ Pay Order o Mobile Banking
o Free Cheque o At Par Cheques
o Debit Card o NEFT
o Cash Deposit o RTGS

8.Which mode of transaction do you avail frequently?

68
Cur
ren
(a) Cheque ( b) DD (c) Pay Order

9.Which type of transaction do you made?

(a) Inter city (b) Intra city (c) Both

10.Does your bank assist you in case of any problem?

(a) Yes (b) No

11. What are the additional Benefits do you expect from a Current Account?
___________________________________________________________________________
___________________________________________________________________________
______________

Date___________________
Place__________________
Signature

69