Professional Documents
Culture Documents
On
“Credit Card”
Of
“HDFC BANK”
SUBMITTED BY
SHAKEEL KHANZADA
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Acknowledgement
report in the best way possible. I also thank Prof. Wafiya Wahid,
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CONTENT
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1. Introduction
1.1 About the study
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Advantages of a credit card
Credit cards are the most popular modes of payment for making
purchases on the internet.
Credit cards offer their customer with reward points which can be
redeemed for availing discount offers or getting free gifts.
Credit cards if used without any sense of responsibility can spell doom
for the user and can be the reason for a debt for the user. The major
disadvantages of credit cards are:
If the credit card bill is not paid on time the interest rate charged is
very high. It is higher than loans like personal loans etc.
Credit card can be the reason of too much debt may be even more
than you can handle.
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Credit card control tips
There are a few useful tips which can be used to make sure that one stays
away from credit card debt and uses a credit card to his/her advantage.
Always use a credit card which has a low fee or has no annual charges.
Make use of your credit card for purchases of amount for which
you can make the payment when the bill is due.
Always remind yourself that the credit card bill needs to be paid in
full by the due date ach month. This will discourage you to use the
credit card too often and at places where it may not be used.
A great way to reduce the amount you pay on your credit card is to
find a credit card with a low and affordable rate of interest.
Keep in mind that paying only the minimum amount due on your
credit card would mean it would be almost impossible to get out of
debt ever.
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1.2 Objectives of the study
To know about the Credit card offers - the free use of funds
with the only criteria that the credit card bill is paid in full and
in time
To study that the Credit cards are the most popular modes of
payment for making purchases on the internet.
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1.3 Scope of the Study
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1.4 Limitation of the Study
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2. Organization Profile
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2009
Euro money Awards 2009 'Best Bank in India'
Economic Times Brand Equity & Most Trusted Brand - Runner Up
Nielsen Research annual survey
2009
Asia Money 2009 Awards ‘Best Domestic Bank in India'
IBA Banking Technology Awards Best IT Governance Award -
2009 Runner up'
2008
Finance Asia Country Awards for 'Best Bank and Best Cash
Achievement 2008 Management Bank'
2007
The Bombay Stock Exchange and Best Corporate Social
Nasscom Foundation's Business for Responsibility Practice Award.
Social Responsibility Awards
Outlook Money & NDTV Profit Best Bank Award in the Private
sector category.
The Asian Banker Excellence in Best Retail Bank in India
Retail Financial Services Awards
Asian Banker Our Managing Director Adtiya Puri
wins the Leadership Award.
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2006
Business Today Best Bank in India
Forbes Magazine One of Asia Best 50 companies.
Pacific's
Business world Best listed Bank of India
The Asset Magazine's Triple A Best Domestic Bank
Country Awards
Asia money Awards Best Local Cash Management Bank
in Large and Medium segments.
Euro money Awards "Best Bank" in India.
2005
Asia money Awards Best Domestic Commercial
Asia money Awards Best Cash Management Bank -
India
The Asian Banker Excellence Best Cash Management Bank -
Excellence
Finance Asia magazine Best Bank in India
Economic Times Awards "Company of the Year" Award for
Corporate Excellence
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1.2 Organization Profile
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.[3] 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 Rs.19, 622.8 crore in 2008-09.
2000
1800
1600
1400
1200
Cities
1000
Branches
800
ATMS
600
400
200
0
2007 2008 2009
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Against the regulatory approvals for new branches in hand, the
Bank expects to further expand the branch network by around 150
branches by June 30, 2008. During the year, the Bank stepped up
retail customer acquisition with deposit accounts increasing from
6.2 million to 8.7 million and total cards issued (debit and credit
cards) increasing from 7 million to 9.2 million. Whilst credit growth in
the banking system slowed down to about22% for the year ended 2007-
08, the Bank’s net advances grew by 35.1% with retail advances growing
by 38.6% and wholesale advances growing by 30%, implying a higher
market share in both segments. The transactional banking business also
registered healthy growth with cash management volumes increased by
around 80% and trade services volumes by around 40% over the previous
year. Portfolio quality as of March 31, 2008 remained healthy with gross
nonperforming assets at 1.3% and net non-performing assets at
0.4% of total customer assets. The Bank’s provisioning policies for
specific loan loss provisions remained higher than regulatory
requirements.
Promoter
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.
Business Focus
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. HDFC Bank's
Business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
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Capital Structure
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up
capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's
equity and about 17.6% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders.
The shares are listed on the Stock Exchange, Mumbai and the National Stock
Exchange. The bank's American Depository Shares are listed on the New York Stock
Exchange (NYSE) under the symbol 'HDB'.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an
enviable network of over 1229 branches spread over 444 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 centers 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 centers
where the NSE/BSE has a strong and active member base. The Bank also
has a network of about over 2526 networked ATMs across these cities.
Moreover, HDFC Bank's ATM network can be accessed by all domestic
and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus
and American Express Credit/Charge cardholders.
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2.3 Board of Directors
NAME DESIGNATION
Mr.C.M.Vasudev Director
Mr.A.N.Roy Director
BRANCHES IN PUNE
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Bank Branch Name City
Name
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Management
Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior
to this, Mr. Kapoor 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). 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
Bank's business is supported by scalable and robust systems which ensure
that our clients always get the finest services we offer. 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
businesses. 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.
Passport
Driving license
Telephone bill
Electricity bill
Bank account statement - Bank statement or Pass book can be
accepted - In both the address should be mentioned
Ration card
Voters ID (if it has address)
Letter from the society (only registered societies) - on the
letterhead which carries the society's Registration No. The letter
Monthly outgoings bill from Registered Housing society - on the
letterhead which carries the society's Registration No.
(Maintenance charges receipt issued by the society NOT
acceptable)
Registration documents/Ownership proof copy.
Mobile post paid bill
Company ID card
LIC Premium receipt
Gas Bill
Water Bill
Society Maintenance Bill
Property Tax Receipt
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List of acceptable Photo ID Proof for
Card holder:
Passport
Voters ID
Ration Card
Student ID card
Senior citizen ID
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Application Form
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Declaration Form
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2.4 Services of the Organization
HDFC Bank understands how much of hard work goes into establishing a
successful SME. They also understand that the customer’s business is
anything but "small" and as demanding as ever. And as their business
expands and enters new territories and markets, they need to keep pace
with the growing requests that come in, which may lead to purchasing
new, or updating existing plant and equipment, or employing new staff to
cope with the demand. That's why HDFC Bank has assembled products,
services, resources and expert advice to help ensure that the consumer’s
business excels.
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1. Classic Cards: Products trusted by many
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3. Premium Cards: Access world-class privileges
and benefits.
World MasterCard
A very premium offering for the truly elite, a card with tailor-
made premium privileges that complement a discerning lifestyle.
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4. Commercial Cards
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The life cycle of Credit card transaction
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Schedule of charges for a Credit card
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Description of Silver/Gold/Women’s Titanium
Charges Gold/Business Gold international/Platinum
plus/ Visa signature/
World master Card
Interest free Up to 50 days Up to 50 days
period
Minimum 5% minimum Rs.200 5%, Minimum Rs. 200
repayment
amount
Cash advance 10% of credit limit 30% of credit limit
limit
Annual fee Silver card-Rs.700 Titanium card- Rs. 3999
Gold card-Rs.2000 Platinum card-Rs. 3999
Business gold card- Visa card- Rs. 9999
Rs.750 World master card-Rs.
9999
Charges on 3.25%pm 39% annually For visa/ world master card
revolving credit from transaction date 3.05%pm & for titanium &
platinum card is 3.15% &
37.8%
Cash advance 2.5%of amount 2.5 % of amount withdrawn
charges withdrawn
Late payment Statement balance Late payment charges
charges Less than Rs.100 Nil
Rs. 100-500 Rs. 100
Rs. 501-10000 Rs. 350
Rs. 10001-20000 Rs. 500
More than 20000 Rs. 600
Charges on 2.5%of over limit 2.5 % of over limit amount
over limit a/c amount, subject a subject to a minimum of
minimum of Rs. 500 Rs. 500
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Description of Silver/Gold/Women’s Titanium
Charges Gold/Business Gold international/Platinum
plus/ Visa signature/
World master Card
Payment return 2% of payment amount 2% of payment amount
charges subject to minimum of subject to minimum of Rs.
Rs. 300 300
Petrol 2.5% (subject to 2.5 % ( subject to minimum
transaction minimum of Rs. 10) of Rs. 10)
charge
Reissue of lost, Rs. 100 Rs. 100
stolen
Outstation Rs. 50 per instrument Rs. 50 per instrument
cheque
processing
charge
Retrieval fees Rs. 125 Per charge slip Rs. 125 Per charge slip
Foreign Bank charges cross Bank charges cross
currency currency mark-up of currency mark-up of 3.5%
transaction 3.5%
Service tax Applicable on all fees, Applicable on all fees,
interest and other charges interest and other charges
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1. PERSONAL BANKING SERVICES
No Frills Account
Loans
Personal Loans
Home Loans
Express Loans
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Investments & Insurance
Mutual Funds
Insurance
Bonds
Financial Planning
Knowledge Centre
Forex Services
Trade Finance
Traveler’s Cheques
Payment Services
Net Safe
Prepaid Refill
Bill Pay
Direct Pay
Insta Alerts
Mobile Banking
ATM
Phone Banking
Branch Network
Funded Services
Internet Banking
Clearing Sub-Membership
Fund Transfer
ATM Tie-ups
Tax Collection
Financial Institutions
Mutual Funds
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Stock Brokers
Insurance Companies
Commodities Business
Payment Services
Net Safe
Bill Pay
Direct Pay
Visa Money
Online Donation
Remittances
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Research Methodology
3.1 Concept
The mode of collection of data will be based on Survey Method and Field
Activity. Primary data collection will base on personal interview. I have
prepared the questionnaire according to the necessity of the data to be
collected.
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Source of Information
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3.2 Types of Data
Primary data:
All the people from different profession were personally visited
and interviewed. They were the main source of Primary data. The
method of collection of primary data was direct personal interview
through a structured questionnaire.
Secondary Data:
It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news
papers, magazines, management books, preserved information in
the company’s database and website of the company.
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3.3 Tools and Techniques of Data Collection
Analysis:
From the above table it is analyzed that 60% of the total respondent rated
the services as excellent, 30% of them rated as good and 10% rated as
bad.
Bar Diagram:
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60
50
40
NO. OF
30 RESPONDENTS
20
10
0
Bad Good Excellent
Inference:
From the above graph it can be clearly inferred that maximum number of
respondents rated the services as excellent while average number of
respondent rated as good and minimum as bad.
According to you which are the most preferable Credit card?
Analysis:
From the above Table it is analyzed that 40% of the total respondent
prefer Premium Card, 30% prefer Classic Card,
20% prefer Commercial Card and 10% prefer Special Benefit Card.
Bar Diagram:
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40
35
30
25
NO. OF
20 RESPONDENTS
15
10
5
0
Classic Special Premium Commercial
Inference:
From the above graph it can be clearly inferred Premium Cards are the
most preferred cards for the respondents while the Special Cards are the
least preferred for the respondents.
Analysis:
From the above table it is analyzed that 40% of the respondents
are satisfied while 32% of the respondents are partially satisfied
and 28% of the respondents are not satisfied at all.
Bar Diagram:
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40
35
30
25
20 NO. OF
RESPONDENTS
15
10
5
0
Satisfied Partially Not
satisfied Satisfied
Inference:
From the above graph it is clearly inferred that 40% of the
respondents are completely satisfied where as 28% of the
respondents are not satisfied at all.
Analysis:
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of the respondents came to know about through T.V
advertisements.
Bar Diagram:
50
40
30 NO. OF
RESPONDENTS
20
10
0
Newspapers Pamphlets T.V Adervt.
Inference:
From the above graph it is clearly inferred that maximum number
of respondents came to know about the Credit cards through
newspaper where as minimum number of the respondents came to
know about the Credit cards through T.V advertisements.
Analysis:
Bar Diagram:
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50
40
30
NO. OF
20 RESPONDENTS
10
0
HDFC ICICI Kotak
Mahindra
Inference:
Analysis:
From the above table it is analyzed that 20% of the respondents
feel that HDFC Bank should improve in educating the staff in their
respective departments while 50% of the respondents feel that
HDFC Bank should improve with their schemes and discounts and
30% percent of the respondents feel that HDFC Bank should
improve by increasing their branches.
Analysis:
4. Conclusion
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The respondents are dissatisfied with the bank for not taking much effort
to make people known about the various services whether existing or
newly introduced ones. The most of the respondents are in favor of
electronic media and news paper as an appealing source to make people
acquainted with the services offered by the bank and also a good portion
of respondents are of the view that responsibility should be given to
branch offices as well to advertise their product and to persuade the
customer to avail the service because they have more dealings with
clientele.
5. Suggestion
As the bank has already hired agency for marketing credit cards, it
must also go for mass advertisement through local media that is radio,
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television and newspapers so that customers become aware about the
services which are offered by the company. The customers must be
well treated by the front line staff in branches and must be motivated
for availing the various services especially credit cards as customers
are interested to get the facility through its nearest branches.
The bank should provide life time valid ATM card to all its customers.
Minimum balance for savings account should be reduced from Rs 5000 to
Rs 1000, so that people who are not financially strong enough can
maintain their account properly.
6. Bibliography
1. Books:
Financial management
2. Newspapers:
Times of India
Financial Express
3. Websites:
www.hdfcbank.com
www.google.com
www.cibil.com
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