CHAPTER I INTRODUCTION TO THE STUDY

1.1 THEORETICAL BACKGROUND The title of the study is Current Account & Saving Account Activation. This study mainly aims to analyze the factors contributing for CASA inactivation and also to study the customers perception about HDFC CASA. This project is also analyzing that the preferred relationship can be a solution to improve the CASA mix in HDFC bank. CASA deposits are also called as cheap source of funds in Banking Terminology. This CASA mix plays a vital role in the Banks. So every year, central bodies and Management are forcing the banks to improve their CASA mix. It plays an essential role in the banks trust worthiness. This will also provide a confidence to customers, investors and shareholders of the bank to establish a long term relationship. Preferred Banking is a Programme offered by HDFC Bank to its Customers. Under this Programme, a Banker or a Relationship Manager will be extensively dedicated to customers who are seasoned profession and running very successful businesses over years to take care of all their banking requirements and also suggesting them to invest their money to get good returns. HDFC Bank is currently having the CASA mix of 44.3% which is pretty lower than FY2009 55%. This is due to the merger of Centurion Bank of Punjab, which had CASA mix of only 25%. The competitors of HDFC bank are maintaining the CASA mix of 41.6 by ICICI Bank and 46% by AXIS Bank. Each banks CASA mix reduced to a greater extend in the Recession period. Now all the banks are taking necessary steps to improve their CASA mix. So HDFC bank is also taken essential step to improve their CASA mix in all the branches. This Research study is mainly taken to analyze the various factors affecting the CASA activation. This is the one way to weed out the accounts which are not going to be operated. The preferred Relationship, which is provided to customers to invest their money in a right way, can be given to prospective CASA customers to improve the CASA mix. 1

CHI SQUARE TEST A chi-square test (also chi squared test or 2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough.

Some examples of chi-squared tests where the chi-square distribution is only approximately valid:

Pearson's chi-square test, also known as the chi-square goodness-of-fit test or chi-square test for independence. When mentioned without any modifiers or without other precluding context, this test is usually understood (for an exact test used in place of 2, see Fisher's exact test). Yates' chi-square test, also known as Yates' correction for continuity MantelHansel chi-square test. Linear-by-linear association chi-square test. The portmanteau test in time-series analysis, testing for the presence of autocorrelation Likelihood-ratio tests in general statistical modeling, for testing whether there is evidence of the need to move from a simple model to a more complicated one (where the simple model is nested within the complicated one).

One case where the distribution of the test statistic is an exact chi-square distribution is the test that the variance of a normally-distributed population has a given value based on a sample variance. Such a test is uncommon in practice because values of variances to test against are seldom known exactly.

Chi-square test for variance in a normal population If a sample of size n is taken from a population having a normal distribution, then there is a wellknown result (see distribution of the sample variance) which allows a test to be made of whether the variance of the population has a pre-determined value. For example, a manufacturing process might have been in stable condition for a long period, allowing a value for the variance to be determined essentially without error. Suppose that a variant of the process is being tested, giving rise to a small sample of product items whose variation is to be tested. The test statistic T in this instance could be set to be the sum of squares about the sample mean, divided by the nominal value for the variance (i.e. the value to be tested as holding). Then T has a chi-square distribution with n1 degrees of freedom. For example if the sample size is 21, the acceptance region for T for a significance level of 5% is the interval 9.59 to 34.17.

Chapter II REVIEW OF LITERATURE

2.1 A Study on Customer Satisfaction on Retail Banking: The banking industry like many other financial services industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition, and more demanding customers; and the changing climate has presented an unprecedented set of challenges. In the current circumstances a question arises whether the customers are satisfied or not and what are the elements of retail banking which lead to the satisfaction or dissatisfaction of customers. The knowledge of current levels of satisfaction and, in particular, the primary factors of satisfaction are beneficial to those in the industry, thereby allowing them to focus and further strengthen the key areas that lead to highly satisfied customers. This research paper mainly concentrates on the level of satisfaction of customers on the retail products of a bank. The data collected from 100 customers of a branch. The principal component analysis on the factors provided a set of factors which affecting the level of customer satisfaction. Improving upon the factors will yield a good satisfaction level to the banks. 2.2 Contemporary Marketing Practices in Indian Retail banking: This research study objective of the current study is to determine the relative emphasis placed on transaction marketing versus relationship marketing in the scheduled commercial banks. The study validates the contemporary marketing practices (CMP) model postulated by Coviello et al. (1997), in the specific context of retail banking, proving thereby that banks practice pluralistic behavior towards their retail customers. Further, the findings also indicate that banks exhibiting such behavior enjoy a higher proportion of retail business and higher growth rates with respect to the retail banking division. 2.3 Customer Orientation of Service Employees and Organizational Performance: Empirical Evidence from Indian Banking: The concept of Customer Orientation of Service Employees (COSE) continues to receive considerable attention from research scholars and business professionals in developed countries. 4

However, very little or no such research has focused on understanding the complex relationship between various dimensions of COSE and organizational performance in a developing country like India. In order to plug the gap the present study has been conducted in the Indian service sector with samples from its four prestigious banks. The study that matches perceptions from both the contact employees and their customers reveals that (COSE) exerts its direct impact on several employee out comes (employee service effort, job satisfaction, esprit de corps and commitment) as well as on organizational performance (Customer service quality perception and their satisfaction). The empirical results also report indirect effects of COSE on organizational performance via the employee outcomes. These employee outcomes are found effective mediators thus linking positive effects of COSE to customer outcomes. 2.4 Customer Expectations and Perceptions across the Indian banking industry and the resultant Financial Implications: The purpose of this paper is to study the expectations and perceptions of the consumers across the three banking sectors in India. It further delineates the factors affecting the quality perception of the customers in the banking sector and tries to corroborate this perception with the financial performance of the Banks. The paper presents the primary data of 263 respondents across the three banking sectors. To explore the customers perception of service quality factor analysis is done and factors affecting the Indian customers are highlighted. A study of the financial performance of the banks is also done to see if the perception of service quality has a consequence on the banks bottom line. It was found that in the banking sector it is the foreign banks which are perceived to be offering better quality of services followed by the private and then public banks. It was also found that these perceptions are reflected in the financial performance of the banks also. With the increasing competition amongst banks, the findings can act as a strategic tool to achieve competitive advantage and customer satisfaction. It is also an eye opener for the banks to see the gap between customer expectation and perception regarding the quality of services rendered which should further act as a motivator to enhance reputation and gain customer loyalty. This will in turn give them the elusive competitive edge they are looking for.

2.5 Customer Satisfaction in Indian Banking Sector: A Study Satisfaction with banking services is an area of growing interest to researchers and managers. This study investigates relationship dimensions and studies the differences in perception of customers with respect to services provided by five Indian banks. The relationship dimensions which lead to customer satisfaction have been identified with the help of factor analysis. This study reports on the different satisfaction levels of customers of private and public sector banks with respect to the services provided by their banks. Perceptual mapping is an important marketing research tool used in many areas of marketing. Strategies based on perceptual maps have led to increased profits, better market control and more stable growth. This research tool used to assess the strengths, improvement in services. This resulted as banks should advance their customer centric strategies to improve the customer Satisfaction. 2.6 Impact of Service Quality on Customer Loyalty, Commitment and Trust in the Indian Banking Sector: In the present Indian banking scenario, service quality is an indispensable competitive strategy to retain customer base. Banks are trying to win customer satisfaction and loyalty by providing better quality services. This study examines the relationship of service quality with customer loyalty, commitment and trust from the customers perspective in the Indian banking sector. Data was collected from 300 customers of public and private sector banks using structured interview schedules. The results show that dimensions of service quality such as assurance-empathy, reliability and tangibles significantly predict customer trust and commitment. The results also indicate that service quality is positively associated with customer loyalty. Private bank customers are more committed and loyal as they receive better quality of service. 2.7 User Perception of Retail Banking Services: A Comparative Study of Public and Private Sector Banks: Due to increasing competition in retail banking, understanding the customer perception about service quality is becoming indispensable. The private sector banks are posing a very stiff competition to the public sector banks through their initiatives for meeting customer expectations and gaining a cutting edge. This is reflected by the increasing market share and better profitability of private banks in comparison to that of public sector banks. 6

CHAPTER III INDUSTRIAL & COMPANY PROFILE

3.1 INDUSTRAIL PROFILE 3.1.1 Banking Industry Banking is an important element of economys Indian banking system overt past few decades, it has played very effective role in mobilization of savings of the economy, spreading in banking habit to the furthest corner of the country and large entrepreneurial base. Indian banks have multiplied their activities in volume, variety and geographical base to meet the growing needs of the society. The old methods and techniques replaced by new techniques of viability need based formation of finance schemes and marketing. Instead of working for profits, they are required to participate in nation building activities and help in bringing socio economic change. Banks are new centre of trade, commerce and business in a country. Banking plays a very important role in the economic development of all nation of the world. Industrial revolution took place in the economic development of all nations of the world. Industrial revolution that took place in European countries in 18th and 19th centuries would not have taken place without the evolution of good banking system. Banking is life blood of modern commerce. It is very important to study the concept of services as banks are categorized into service sector: service as deeds, processes and performances. The service sector of an economy is going through a period of almost revolutionary proportion in which established ways of doing business continue to be shunted aside. The banking system in India constitutes the core of the financial sector. It plays a significant role in the process of economic growth of the country. Its efficiency and development thus are vital for the countrys economic progress. Commercial banks are the hub of the Indian financial system. Indian commercial banks are organized as the joint stock banks, both in the public sector and private sector. 7

3.1.2 Public Sector Banks Banking is one of the most important elements of economy. Indian banking system over past few decades has played a very effective role in mobilization of savings of the economy spreading in banking habit to the furthest corner of the country and enlarged entrepreneurial base. Indian banks have multiplied their activities in volume variety and geographical coverage to meet the growing needs of society, the old methods and techniques of viability growth based formation of finance schemes of marketing. Instead of working for profits, they are required to participate in the nation building activities and help in bringing socio-economic change. Banking transactions carried on by any individual or firm engaged in providing financial services to consumers, businesses or government enterprises. In the broad sense, a bank is a financial intermediary that performs one or more of the following functions: safeguards and transfer of funds, guarantees credit worthiness and exchange money. Such institutions as commercial banks, central banks, organizational banks, trust companies, finance companies, life insurers and investment bankers provide these services. A normal end mean common definition of a bank is a financial intermediary that accepts, transfer and most important creates deposits. This includes such deposits institutes as central banks, commercial banks, savings and loan associates and mutual savings bank. Banks are most frequently organized in corporate form and owned by either private individual, government interests. Although non corporate bank that single proprietorship and partnership are find in other countries since 1863 all federally chartered bank in the US must be corporations. Only a few states permit formation of non corporate bank. All countries subject their banks, however owned to government regulations and supervision, normally implemented by central banks authorities. Bank in India should develop appropriate strategy and ensure proper marketing strategy and mistaking into account the economic, cultural, legal and political environment. As toady in the changes word the needs are changed as regards to bank as foreign players. Marketing concept should be followed where we talk about 4 Ps marketing tools in regards to banks; we should include to more 2 Ps more, People and Procedures as well. An introduction of 8

ATM 24 hours online banking transactions etc their goal should not be of profit it should be growth and development with profit The service sector of the economy is going through a period of almost revolutionary proportions in which established ways of doing business continue to be shunted aside. It has been said that the only person in the world who appreciates changes is wet baby. The service sector can be best characterized by its diversity. Service organization range in size from huge International Corporation in such fields as airlines, banking, insurance, telecommunications, and hotel chain and freight transportation to a vast array of locally owned and operated small business and numerous business to business services. As per the currently defined government statistics, services account for the two third to three quarters of the gross national product. Not only in US but also in many other highly develop industrial nations. In the banking and financial services business, comprise many different types of businesses, commercial and retail, with a common denomination, of being in business to help customer to make or manage money. A high level of trust is implicit and is even more critical in the wake of the savings and loan scandals of the 1980s. The public sector banks largely dominate the Indian banking industry. These banks till early 90s were involved in the traditional banking business of deposits and credit lending. They performed a supporting role in the overall growth of economy. While most of these banks used to focus on growth of balance-sheet profitability was not a significant competition. In most of the banks government has holding of 100% whereas in the few banks the state has fallen because of public issue in the post liberalization period. Some of other leading banks in the segment also proposed to come out with an equity issue to raise further capital. The public sector banks have a strong distribution network all over the country. But the strength of earlier periods has now coming out with VRS to bring down number of employees and improve their efficiency ratio. The public sector banks still control a major share in banking operation of the country.

3.1.3 Private Sector Banks The banking regulation act was amended in 1993 permitting the entry of new private sector banks. The act also specified certain criteria for establishing new private sector banks. The criteria are as follows: The banks should have a minimum net worth of Rs. 1 billion The promoters holding should be minimum 25% of paid up capital. The last decade witnessed the maturity of Indias financial markets. Since 1991, every governments of India took major steps in reforming the financial sector of the country. The important achievements are as follows: 3.1.4 Financial Markets In the last decade, private sector banks/institutions played an important role. They grew rapidly in commercial banking and asset management business. With the openings in the insurance sector for these institutions, they started making debt in the market. 3.1.5 Regulators The Finance Ministry continuously formulated major policies in the field of financial sector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independent. Opinions are also that there should be a superregulator for the financial services sector instead of multiplicity of regulators. 3.1.6 The Banking System Almost 80% of the business is still controlled by the Public Sector Banks (PSBs). PSB are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges. The RBI has given licenses to new private sector banks as part of the liberalization process. The RBI has also been granting licenses to industrial houses. Many banks are successfully running in the consumer segments, industrial finance, retail trade, small business and agriculture finances.

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3.1.7 Overall Approach to Reforms The last ten years have seen major improvements in the working of various financial market participants. The government and the regulatory authorities followed the step by step approach, not a bang one. The entry of foreign banks has assisted in the introduction of international practices and systems. On the whole, the cumulative effect of the developments since 1991 has been quite encouraging. 3.1.8 Deregulation of Banking System In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government and RBI. Government pre-emption of banks resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated. New private sector banks allowed promoting and encouraging competition. PSBs were encouraged to approach the public for raising resources. Recovery of debts due to banks and the Financial Institutions Act 1993 were passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears. 3.1.9 Consolidation Imperative Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. In India the banks are huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of them can be merged. The merger of Punjab National Bank and New Bank of India was difficult one, but the situation is different now. No one expected so many employees to take voluntary retirement from PSBs, which at one time were much sought after jobs. Private sector banks will be self consolidated while co-operative and rural banks will encouraged for consolidation, and anyway play only a niche role. Global Competencies The progress and growth of Indian banking sector is in the line with the twin objective of financial stability and growth. Banking in India has increased its size by capitalizing on all the business opportunity available. The capital adequacy ratio of Indian banks has increased and is 11

now in a much better position in relation to the other emerging market economies. The ratio is well in line with the proposed new Basel norms. Several banks raised capital and some more banks are on the way. Guidelines and Governance Meeting capital adequacy norms in the recent times gained importance with the deadline for the implementation of Basel II Accord approaching closer. The average Capital Adequacy Ratio (CAR) of Indian banks stood at 12.8% at March 31, 2005, much above the prescribed norms. In order to enhance capital adequacy ratio, seven banks including ICICI bank and Punjab National bank, have raised capital in primary markets to the tune of Rs.12, 000 crores during the year 2005. it has been decided that banks which have maintained capital at least 9% of the risk weighted assets for both credit risk and market risks of both Held For Trade(HFT) and Available For Sale(AFT) categories as on March 31, 2006, would be permitted to treat the entire balance in the Investment Fluctuation Reserve as tier-I capital. Reserve bank Of India (RBI) has given guidelines to have minimum net worth of Rs. 300 crores for private banks. New guidelines have been introduced in the Indian banking system to measure up to the international banking practices. The Indian Bankers Association (IBA) has come up with Fair Practices Code to improve corporate governance. Banks in India should now explicitly state their governance philosophy in their Annual Reports as part of Notes on Accounts to their balance sheets. Emphasis has been placed on the role of bank boards. In a move to give freedom in the functioning of private banks, RBI has withdrawn its nominee directors from almost all the private sector banks. Amendments have also been proposed to remove the provisions of having nominated officers of RBI in public sector banks in order to bring their functioning at par with private banks. Governments shareholding in several Public Sector Banks (PSBs) reached close to 51%. To continue governments stipulated minimum shareholding in PSBs, the finance ministry asked the RBI to come up with the guidelines on hybrid instruments, which can be treated as capital.

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Performance The year 2005 has been good for the Indian banking. There was robust growth in credit flow during the year. Credit deposit ratio increased by more than 10% and substantial part of the banks commercial credit went to large borrowers at sub-PLR rates. Government wants to further push up the loan to GDP ratio from 43% to 50%. The most significant jump in credit was to real estate sector. Credit to agriculture has been in line with the governments objective of doubling its credit in the coming five years. The banking industry has managed to improve its operating profit ratio by reducing its operating costs/staff expenses. The asset quality in Indian banking sector has shown considerable improvement. The gross Non Performing Assets (NPAs) to advances ratio for the sector declined to 5% in FY05 from 16% in FY97. The Indian banking has improved efficiency in its operations. Cost to income has come down. Interest income of the entire banking sector has increased. The return on assets from the foreign banks has been highest, followed by the private sector banks. Revenue sources of banks been diversified. They have entered into the business of selling thirdparty products to increase their income. Banks are trying to increase fee-based income as interest income continues to be under pressure and profits from tradi8ng keep declining. Investments in Statutory Liquidity Ratio (SLR) securities of banks have declined; however, the ratio is in excess of the statutory limit. RBI reduced the reverse repo rate during the year to direct the funds to the needed areas. Most of the investments held by private sector banks were in the maturity bucket of a less than a year while the public sector banks investments were ranging from one-year to five-year maturity buckets. At the same time, technological development in the sector helped the banks in diversifying their business activities to offer different services to customers. Introduction of core banking solutions has enabled the banks to segregate the credit sourcing (front office) and appraisal (back office) functions. Merger and Acquisitions The banking industry we saw some consolidation during the year. There was the reverse merger of IDBI with IDBI Bank, and Centurion Bank of Punjab was created through the merger of Bank of Punjab with centurion Bank and again Centurion bank of Punjab merger with HDFC Bank. 13

SBI has a network of 60 overseas offices spread over 29 countries. The bank has acquired 76% stake worth $6 million in closely held PT Bank IndoMonex, securing a foothold in Indonesia, and a similar stake in Kenyas Giro Commercial Bank ltd. In February 2005, it acquired a 51% of the Mauritius based Indian Ocean International Bank Ltd. And it also gained permission to set up branches in Saudi Arabia. It has also merged its subsidiary-IndoNigerian Bank-with a local bank, Nal Bank. The SBI has also stated to start its retail business in Shanghai later this year. ICICI Bank in a span of just four years has emerged as retail banking. The bank in order to increase its presence overseas has acquired a Russian bank, InvestitsionnoKredimy Bank, also aims to take advantage of increased presence of the Indian corporate in Russia and South Africa. The bank is also planning to make Bahrain its hub especially for trading in commodities. It has emerged as the largest seller of bad loans to the Asset Reconstruction Company of India. Punjab National Bank will shortly be converting its representative offices in London into a subsidiary unit. PNB is in the process of initiating internal discussions to plan and identify acquisition of banks overseas. PNB has targeted to disburse loans to the tune of Rs. 8,000 crores in retail segment by the end of this fiscal as against the total retail loan disbursement of Rs. 6,500 crores during the last fiscal. 3.1.4 Way Forward The future of banking sector looks bright. A few more Indian banks are interested in starting overseas operations, either by starting by starting their representative offices of by the opening branches abroad. Till October 2005, 14 Indian banks had overseas operations spread across 42 countries. Apart from global expansion, banks will also augment their domestic lending to agriculture as per the government directions. Banks started designing new programs such as No frills accounts to reach a large number of customers in rural areas where they can maintain zero balance. Several banks have already started this no frills accounts. As more and more infrastructure projects are expected to come up, banks will find themselves increasingly invested in that sector. The share of equity as funding route for companies is bound to grow as capital market looks growing and number of new public offerings is rising. Banking sector is expected to raise the funds to the tune of Rs. 600 billion over the next five years to push 14

up the loans to GDP ratio. Several banks including Central Bank, Union Bank, Bank of India and South Indian Bank plan to hit the primary market to comply with capital requirement norms. Dena Bank that raised the capital last year is expected to hit the capital market again this year. The increase in ratios such as Credit Deposit Ratio and Capital Adequacy Ratio and decrease in Gross NPAs to deposits indicate that banks would improve their financial position in future. As economy is set to grow at a healthy rate, more and more infrastructure development is set to take place, and Indian banking sector is expected to play an important role in the same. History The origin of modern banking in India dates back to 1770 when the first joint-stock bank, named Hindustan Bank, was started by the English Agency House of Alexander & Co. Calcutta. The bank was, however wound up in 1832. The real growth of modern commercial banking began in the country when the government was awakened to the need for banks in 1806 with establishment of the first Presidency bank, called the Bank of Bengal, in Calcutta in that year. It leads to the establishment of two other Presidency Banks, namely the Bank of Bombay in 1840 and the Bank of Madras in 1843. To each of these banks, the government had subscribed Rs. 3 lakhs to their share capital. These three Presidency Banks continued till 1920. In 1921 they were amalgamated into the Imperial Bank of India. In 1935, the British Government in India had started a central bank called the Reserve Bank of India as a private sector bank. After independence, eventually by passing reserve Bank of India Act, 1949, the Reserve Bank of India was taken over by the government of India as a state owned central bank. After independence, the Government of India launched economic planning in the country since 1951. On July 1, 1955 the Government of India nationalized the Imperial Bank of India and converted it into the State Bank of India. The establishment of the State Bank of India was a pioneering attempt in introducing public sector banking in the country. Later on in 1959-60 seven subsidiary State banks were also nationalized to form the SBI group. The SBI group has 15

the laudable objective of bringing rural orientation in Indian banking, which it achieved with remarkable success. Eventually, on July 19, 1969 fourteen major Indian scheduled banks (with deposits of over Rs.50 crores) were nationalized by the government with a view to serve better the needs of development of the economy in conformity with national priorities and objectives. As a result, 85 percent of the baking business in terms of deposits was brought under public control. On April 15, 1980, six more Indian scheduled banks (with deposits of over Rs.200 crores) were nationalized. As such, over 90 percent of the banking activity in the country is brought into the public sector. In short, nationalization of banks implied a bold and major economic step in the process of banking reforms in the country. It has resulted in the evolution of public sector banking.

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3.2 COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995. 3.2.1 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 clear market leader in mortgages and banking services in India. Its outstanding loan portfolio covers 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. 3.2.2 Business Focus HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank aims to ensure the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank's business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. The Bank signed a strategic business collaboration agreement with Chase Manhattan Bank in February 1999.

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3.2.3 Capital Structure The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2 crores. The HDFC Group holds 24.5% of the bank's equity while about 13.3% of the equity is held by the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan Partners, formerly Chase Capital Partners) together hold about 11.6% of the bank's equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance is widely held by about 300,000 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 under the symbol "HDB". 3.2.4 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 sc1.heme 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 amalgamation added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels. 3.2.5 Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over cities all across the country. All branches are linked on an online real-time basis. Customers in 39 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. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centre where the NSE/BSE has a strong and active member base.

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The Bank also has a network of almost over networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, and Plus/Cirrus and American Express Credit/Charge cardholders. It is the only bank in India which provides access to all the 3 major International Card Networks on its ATM network. 3.2.6 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 20 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 and commercial banking. Senior executives representing HDFC and J P Morgan Partners (formerly Chase Capital Partners) 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. 3.2.7 Technology HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. The entire bank's branches have connectivity which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

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The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of software the Corporate Banking business is supported by Flex cube, while the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. (formerly Citicorp Information Technology India Ltd.). The systems are open, saleable and web-enabled. 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.

BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering Commercial and Investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business areas:Wholesale Banking Services The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a small extent, emerging mid-sized corporate. For these corporate, the Bank provides a wide range of banking services, including working capital finance, trade services, transactional services, cash management, etc. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime Public Sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

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Retail Banking Services The objective of the Retail Bank is to provide a full range of financial products and banking services, giving the customer a one-stop window for all his banking requirements. The products are backed by world class service and delivered to the customers through various delivery channels including the branch network, as well as 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 Loans against shares, Auto Loans, Personal Loans and Loans for Consumer Durables and Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers. 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 debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in November 2001. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. Treasury Operations Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. Rating HDFC Bank's program me for Certificates of Deposits has been rated by the Indian rating agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the highest rating for short term instruments indicating superior capacity for repayment.

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3.3 PRODUCT RANGE Savings, Fixed Deposits, Current and Demat Accounts Savings Account: Apart from the usual facilities, you get a free ATM Card, Interbank banking, Net Banking, Bill Pay, Phone Banking, Debit Card and Mobile Banking, among others.

HDFC Bank Preferred: A preferential Savings Account where you are assigned a dedicated Relationship Manager, who is your one-point contact. You also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rates on loans, to name a few. Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The money is automatically swept in from your fixed deposit into your Savings Account. Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit continues to earn high interest. HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros. You can also avail of cheque clearing between the four metros, get cash delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques, outstation cheque clearance facility, etc. Demat Account: Conduct hassle-free transactions on your shares. You can also access your Demat Account on the Internet. 22

Phone Banking: 24-hour automated banking services with 39 Phone Banking numbers available. ATM 24-hour banking: Apart from routine transactions, you can also pay your utility bills and transfer funds, at any of our ATMs across the country all year round. Intercity/Inter branch Banking: Access your account from any of our branches in cities. Net Banking: Access your bank account from anywhere in the world, at anytime, at your own convenience. You can also view your Demat Account through Net Banking. International Debit Card: An ATM card you can shop with all over the country and in over 140 countries with. You can spend in any currency, and pay in Rupees. Mobile Banking: Access your account on your mobile phone screen at no airtime cost. Use SMS technology to conduct your banking transactions from your cell phone. Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs, Internet, phone or mobile phone. No more standing in long queues or writing cheques. Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a computer or an exciting holiday.

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New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car, new or used! And the loans come to you with easy documentation and speedy processing at attractive interest rates. Types of Account Salary Account Saving Account Current Account Fixed Deposit Demat Account Safe Deposit Account A) SALARY ACCOUNT: There are three type of product code in salary account product code 105 is basically employees of the govt. department & product code 115 is only defense person and product code 120 is any private organization/department .If product code 120 account holder wants to a debit card then they have to paid Rs.100 per annum

Product Code 105 115 Only defense 120

Average Salary 7500 Up to 5000 5000

No. of Employee 10 10 10

Provide Facility Free Debit card Free Debit card Free ATM

Table 1- SALARY ACCOUNT

Costumers have always given their best to the nation. Its now HDFC BANK turn to provide costumer with the best salary account. With HDFC Banks Salary Account, costumer receives an array of rewards with their monthly pay.

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Their employees get privileged services that help them achieve even more Direct Salary Credits Their employee need not go to the bank ,deposit their cheques and wait for it to be cleared .Their salary is automatically credited to their accounts Interbank/Intercity Banking at 142 branches and over 360 ATMs No minimum Balance to be maintained in the account to avail of these benefits

Interbank/Intercity Banking: - Costumer can use any of HDFC BANK branches/ ATMs across 111 cities in India, no matter where their account is held e.g. costumer may open their account in Pune and can operate this \account the next time costumer travel to Bangalore or for that matter from any other city. Also no need to open a new account when costumer gets transferred to another city where HDFC BANK has a branch. ATM 24-hour Banking: Over 675 ATMs across 111 cities enable costumer to withdraw up to Rs.15, 000 a day. Free International Debit Card: Its like an ATM Card that costumer can shop with and make payments at 25,000 outlets in India and 10 million worldwide. Costumer can also withdraw money from over 5.6 lakh Maestro/visa/Plus/cirrus ATMs, in 140 countries. HDFC BANK also waives the annual fee for one additional card per account for the first year. Free Demand Drafts: Customers can avail of free demand drafts up to Rs.25, 000/- per instrument payable at any city where HDFC BANK have branches. Free Phone Banking: This 24- hours facility enables customer to conduct a range of banking transactions with just a call. Free net Banking: Customer can now bank at the click of a mouse, backed by the highest level 128-bit security. Free Mobile Banking: 25

Customer can even conduct a range of banking transactions over a mobile phone, using SMS facility or a WAP activated phone. Free Personalized Cheque Book: - their employees get personalized cheque book with the name of the account holder printed on the cheque leaves. 1. Special features for the Defense person Sweep-in Account: This facility is a fixed deposit linked to savings account. So even if funds are short in the savings account, that entire customer has to do is just issue a Cheque. The money is automatically swept in from the fixed deposit into the savings account. The balance amount continues to earn high interest rate. Super Saver Account: This account gives customer an overdraft facility of unto 75% of the Fixed Deposit in times of emergency. Customer can access their funds either through an ATM or by issuing a cheque, while the Fixed Deposit continues to earn high interest rate. Free Collection of Outstation Cheques: This account entitles customer to free collection of outstation cheques drawn on all cities where HDFC BANK has branches. 2. How else do customer benefit from HDFC Banks Salary Account? With HDFC BANK Salary Account, customer enjoys a number of privileged value added services such as: Direct Salary Credits: Customer salary is automatically credited to their account. All customer have to do is inform their payroll department of their HDFC Bank Salary Account number. Bill Pay: 26

No more waiting in queues to pay utility bills customer can use any of HDFC BANK e-Age banking channels like Phone Banking, Net Banking, Mobil Banking and ATMs to pay their electricity, telephone and mobile phone bills, and even LIC premiums. Insurance In case customer card is lost/stolen, customers are covered for any liability exceeding Rs. 500/(After customer report the loss to the Bank). Please report of their card immediately to HDFC
BANK Phone Banking service. Additionally, customer must report the loss/theft of their card to

the nearest police authorities and forward a copy of the acknowledged report to the Bank. Additional Card Additional cards are available to Joint Account holders at an Annual fee of Rs. 100 per card. However, the operating instructions on the account should allow for financial transactions to be conducted singly by the Joint Account holders. Annual fee has been waived for the first year on one Additional Card. The services and applicable tariffs are listed below: Service offered Lost/Stolen Card Reporting Emergency Cash Disbursement Charges USD 35 per card USD 175 per disbursement + USD 25 per disbursement only in cases where emergency cash is disbursed by Visa Miscellaneous Customer Service enquiries through a member. USD 5 per call

Table 2- Additional Card Details

Worldwide Assistance from MasterCard if customer has a Maestro Debit Card 27

In case customers have any queries/problems while traveling abroad, assistance is available from Maestro Global Service from MasterCard International. The services and applicable tariffs are listed below: Services Offered Lost/Stolen Card Reporting Emergency Cash Disbursement Miscellaneous Charges US$ 35 US$ 95 US$ 7.75

Table 3- Worldwide Assistance from MasterCard if customer has a Maestro Debit Card Important Please sign on the reverse of the card on the signature panel. Their personal Identification Number (PIN) will be mailed to customer separately. Please ensure that customer receive this after customer receive their card. In case customers do not receive it please contact the nearest branch or call Phone Banking. Master Cards are being issued in select cities only. Their Card is valid in India and abroad. Customer cannot make foreign currency transactions in Nepal and Bhutan (i.e. transactions in currencies other than local currency of Nepal / Bhutan or Indian Rupees). In case of multiple accounts linked to their card, all their transactions at Merchant Outlets, Visa/PLUS ATM and Cirrus ATM locations will access one account i.e. the Primary Account Number designated by customer. The four-digit PIN helps customer to access their accounts. Do not reveal their PIN to anybody. Only customer should know this number. Please ensure that while using the Card outside India customer are doing so strictly in accordance with RBIs Exchange Control Regulations, as prevailing from time to time. Their

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aggregate expansive incurred abroad (i.e. through payments in cash/travelers cheques and through the Car) should not exceed the limit, set by RBI, B) SAVINGS ACCOUNT The e-Age Saving Account from HDFC Bank brings customer a comprehensive range of products and services. Each one is designed to minimize their effort, making it much simpler for you to do their banking. HDFC BANK now has 211 branches in 110 cities and over 650 ATMs across the country. Add to this an international network of over 6.5 lakh ATMs which customer can access with their international Debit Card. Thats world class banking for customer. Free 24 hour ATM: Customer can withdraw up to Rs. 10,000 per day from any of HDFC BANK extensive network of over 650 ATMs across 110 cities all over the country. Customer can also deposit cash/cheques, get an account balance, request for a cheque book and transfer funds, all at the push of a few buttons. This amazing facility is available 24 hours a day 365 days a year. Rs. 15,000 per day with their Debit Card. Free Net Banking: HDFC BANK convenient Net banking facility will open up a whole amount of services for

customer at just the click of a mouse. Customer can: Check their up to the minute account balance etc. Open a Fixed Deposit. Get a Demand Draft Make a TDS inquiry Request a stop payment on a cheque Transfer funds within their own accounts Carry out third party Transfer of funds

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International Debit Card: The HDFC Bank international Debit Card lets customer shop and also withdraws money from
HDFC BANK ATM network. With HDFC BANKS international Debit Card, customer can shop at

18,000 establishments in India and over 100 Lakh establishments in 140 countries. Customer can also withdraw cash from over 1600 VISA/Plus ATMs in India and 605 Lakh ATMs in 140 countries. The amount customer spend on their card will be automatically debited from their Savings Account. So when customer go shopping customer dont have to carry cash! Interbank /Intercity Banking:Customer can access their account from any of the 211 branches in 110 cities and over 650 ATMs across the country. So customer can withdraw cash from another branch, through a selfcheque or an ATM. Customer could also transfer funds between two accounts, or deposit a local cheque in one branch and get is credited to their account in another city. Bill pay:Now for the first time ever, customer gets an absolutely unique facility for paying their telephone, electricity, cellular phone bills and insurance premium at the push of a few buttons. Pay utility bills using the ATM, the Internet, and Telephone of mobile phone. Free Phone Banking: HDFC Banks 24 hour Phone Banking service lets customer conduct a wide range of banking transactions from the comfort or their home of office. Customer can: Get their account details Ask for a cheque book or a statement Open a Fixed Deposit Transfer money within their own accounts 30

 Order a Demand Draft Stop cheque payment. C) CURRENT ACCOUNT

AT HDFC Bank, HDFC BANK understand that running a business requires time and money, also

that their business needs are constantly evolving. Thats where HDFC BANK comes in. HDFC
BANK provides customer with a choice of Current Account options to exclusively suit their

business whatever the size scope. Take Customers pick! Customer can choose the Current Account that works best for their specific business needs. 1. Regular Current Account The regular Current Account requires an average quarterly balance of Rs.10, 000 only. Besides the free ATM card and easy accessibility, their first 50 cheque leaves are offered free. 2. Premium Current Account Their account can be operated from any of the branches for the depositing of withdrawing money. A Premium Current Account requires an average balance of only Rs. 25,000 per quarter. Moreover, for premium Current Account holders cheque leaves are free. Free Services offered to Regular and premium current Account holders: One ATM card per account (only for individuals/Sole Proprietorships). Replacement in case of damaged cards. Monthly statement. Online, real-time Net Banking. 24 hours Phone Banking access (please check for availability in their city,). 3. HDFC Bank Trade

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It is a Current Account ideal for small funds transfer across various cities in the country. Trade Account is suitable for small businessmen and traders.

Features offered to HDFC Bank Trade Account holders: As par payable cheques. Free inter-city Funds Transfers up to Rs. 25 lakhs. Free Pay Orders Free Demand Drafts Payable on HDFC Bank locations up to 30 per quarter. (Check with branch for value limits). ATM card for individuals/Sole Proprietorships. Free online, real time Net Banking. 24-hour Phone Banking access (please check for availability in their city). 4. HDFC Bank Plus Single Account, Multi-city Banking If their business regularly requires customer to receive and send funds to various cities in the country, HDFC Bank Plus provides customer with the means to facilitate such transactions efficiently. With just one account, customers have access to more than 111 cities in the country. In other words, the power of a single account and multi-city banking. This results in huge savings on inter-city movement of funds and other service charges. Furthermore, HDFC BANK strategic alliance with Chase Manhattan Bank gives customer the advantage of competitive rats for trade finance and faster inward/outward remittances. The average balance requirement for the HDFC Bank Plus account is Rs. 100,000 per quarter.

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D) FIXED ACCOUNT Would not it be great to earn a high interest on their Fixed Deposit and at the same time enjoy the liquidity associated with a saving account/ Get their self the HDFC Bank Super Save Account and thats exactly what customer will have. How do I benefit from the Super save Account? Maximum Liquidity Their Super Saver Account allows customer to issue cheque and use and ATM card for withdrawals, just like Savings Account. Customer can access their account from any of HDFC bank 211 branches or over 650 ATMS spread across India. Even in an emergency, customer need not break their fixed Deposit to withdraw money. So customers get their money whenever customers need it. Easy operation Customer can open a supersaver Account with nominal sum of just Rs. 25,000 and enjoy a temporary withdrawal limit of up to 75% of their deposit .Even after customer withdraw a part of their limit, their entire deposit continues to earn a high rate of interest, i.e. their deposit in not broken. Customer are required to pay an overdraft interest that is 2% more than the interest earned by their Fixed Deposit for the amount of overdraft, and only for the period for which customer use the money. Besides, customer can take an overdraft by simply using a cheque of through an ATM. Free ATM Card With every Super saver Account customer get a free ATM Card. This allows customer to enjoy 24 hour banking 365 days a year, including Sundays sand bank holidays. Their convenience is all the matters. 33

E) SWEEP IN ACCOUNT Imagine having an account that changes to suit their needs. When customer want their money to earn high interest it worked like a Fixed Deposit, when customer want to withdrew money in a hurry, it works like a savings Account. Customer wins both ways So what is a Sweep-in Account? It is a Fixed Deposit that comes automatically linked to a savings Account. So whenever customers short of funds in their Saving account and their money is blocked in a fixed Deposit, customer just have to issue a cheque (or use the ATM.) their money automatically gets transferred, i.e. swept-in from their fixed Deposit into their Saving Account. Its as easy as it sounds. To open a sweep in Account, all customer need is to open a Fixed Deposit as per the norms of the bank and a Savings Account with no minimum balance requirement. Customer need to maintain a minimum fixed Deposit of Rs, 50,000 at all times to avoid service charges. In case of non maintenance of Rs.50, 000 in fixed deposits, customer savings Account will be subject to service charges as applicable. The saving account needs to be opened with an initial amount of Rs.5000. How does it work? Since the Sweep in Account holds their money in a Fixed Deposit in units of Rs.1 every time money is swept from their fixed deposit to their Savings account, interest loss in minimized. Further, the amount swept in earns interest for the tenure that it has completed without any penalty. The rest of their deposit continues to earn the original interest rate till maturity.

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And the Sweep in automatically chooses the oldest deposit first before sweeping money into their Savings Account. Enjoy the benefits of a truly flexible fixed Deposit. Just open a Sweep in Account. The Savings accounts comes with it.

F) DEMAT ACCOUNT Now customer can avoid mutilation, duplication and pilferage of share certificates. Open a Demat Account with HDFC Bank and protect their securities from damage loss and theft and remember, HDFC Bank is the largest depository participant amongst all banks. Why do I need Demat Account? With SEBI making trading mandatory in the Demat form and the advent of Rolling Settlements it is imperative that all investors have a Demat Account with a depository participant. When customer places a buy order, a seller can deliver the securities in Demat form, which can only be credited to a Demat Account. What benefits do I get from an HDFC Bank Demat Account? No Account Opening Charges. Nominal Annual Maintenance Charges. Competitive fees for transactions. Demat Account Status on the internet. Option to open a Demat Account with NSDL, CDSL or both. Personalized instruction Book. What other benefits do I get? Paperless trading which will help prevents mutilation. Loss and misplacement of certificates and eliminate the problems of bad delivery. Safety of their securities with HDFC Bank.

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Problems of bad delivery, theft or mutilation eliminated. Zero stamp duty. Faster settlements of buy and sell orders, direct credit of allotment from public/ rights/bonus issues.

How do I open an HDFC Bank Demat Account? Fill up the application form and the Agreement and get it signed by the entire applicant. Attach one photograph of each applicant. Provide proof of identity/Residence (copy of ration card/ driving license/voters ID/passport or PAN card). Please bring the original to the bank along with a photocopy. Annual charges of Demat account Rs.299 per annum

Once their Demat account is active, customer will receive periodic account statements from HDFC Bank. HDFC banks Demat Account is also accessible on the internet, allowing customer to check balances, transaction status, Demat status etc. online.

SERVICE STRATEGY OF THE HDFC BANK HDFC bank aims at full customer satisfaction its customers range from ordinary household to high profile business houses. It has wide range of type of account and several other payment and deposition facilities to cater to the need of these customers for speedy transaction to match the demand of e-commerce .It has several model facilities like internet banking, telebanking etc. All the cheques presented to HDFC bank are accounted within a day where drawee branch is in the same city for out station cheques it takes maximum three days only. It has a team of dedicated motivated & trend professionals who listen to and sort out the problems of customers. To avoid long queue and waiting lines it has avoid network of reliable ATMs throughout the country .The Merits of both Orthodox and electronic banking. Thus HDFC Bank not only tries to satisfy its customers but also make all attempts to delight them. 36

HDFC Bank has three pronged services strategy: People management Physical Environment Management Process Management

People Management HDFC Bank has well qualified team of professional team of professionals who are experts in customer relationship management. They have achieved. Thus level of expertise through training and motivation program taken up at regular intervals because of this high levels of competence HDFC Bank is often of called as Indian Foreign Bank. Physical Environment Management Every Branch and ATMs of HDFC Bank is located in the posh area of the locality it helps the bank to create a good image among customer. Further it helps customers access the bank facilities in leisure time that is while marketing or on way to some important destination. Further all ATMs and branches are fully air conditioned with relaxing environment which puts visitors at ease the peaceful hesitate the tension and stores of customers. Process Management HDFC Bank has simplified procedures for transaction and opening accounts it has done away with Hussle of Gvasenter which are mandatory in many in many banks similarly it has done away with many lumbers one and non essential procedures which helps customers reduce stress and under tension.

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CHAPTER IV RESEARCH METHODOLOGY

4.1 OBJECTIVE To identify the factors, which are contributing for the Current Account & Saving Account inactivation To study the customer preference and expectation towards HDFC Current Account & Saving Accounts. To study the comparative analysis for Current Account & Saving Account Mix (Current Account & Saving Account). Suggest to improving the Current Account & Saving Account operation in the HDFC Bank. 4.2 RESEARCH METHODOLOGY A questionnaire was prepared to gauge the awareness of HDFC Bank in Retail banking sector. Survey has been done in and out of the bank covering a wide cross-section of the society. The question was presented in one to one interview with each of the respondents. Responses of the question had been thoroughly analyzed. Conclusions had been arrived at using the response of the questionnaire

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4.3 HYPOTHESIS A hypothesis is a proposed explanation for an observable phenomenon. He null hypothesis typically proposes a general or default position, such as that there is no relationship between two measured phenomena. It is typically paired with a second hypothesis, the alternative hypothesis, which asserts a particular relationship between the phenomena. Hypothesis testing works by collecting data and measuring how probable the data are, assuming the null hypothesis is true. If the data are very improbable (usually defined as observed less than 5% of the time), then the experimenter concludes that the null hypothesis is false. If the data do not contradict the null hypothesis, then no conclusion is made. In this case, the null hypothesis could be true or false; the data give insufficient evidence to make any conclusion. 4.4. TYPE OF RESEARCH Descriptive research 4.5 DATA COLLECTION In this study the data collected from both primary and secondary data. Primary data Data is collected through questionnaire Secondary data Data is collected through Bank Database Fin ware, HDFC Website. Books, magazines and newspapers. Reports and publications of various associations connected with industry. Internet

4.6 SAMPLING SIZE

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Area of sampling is Bangalore only. The sample size is 100 which include all between age group 18-60 years with minimum qualifications required to be an advisor in the company.

4.7 METHODOLOGY FOR THE ANALYSIS Percentage analysis Chi square test to test the hypothesis 4.8 LIMITATIONS Sometimes Respondents gave biased information. The research conducted is limited to the Sarjapur Road branch of HDFC Bank, Bengaluru As the project is prepared for the academic purpose only, it suffers from the limitation of

due to time limit. time.

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CHAPTER V DATA ANALYSIS

5.1 INTERPRETATION ON QUESTIONNAIRE A) Bank wise Distribution of Account Holders Based on the response of 100 people following table has been made: NAME OF THE BANK HDFC ICICI UTI IDBI NO. OF ACCOUNTS 25 25 25 25 % age 28% 44% 8% 20%

Table 4- Bank wise Distribution of Account Holders

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IDBI 20%

UTI 8%

HDFC 28% HDFC ICICI IDBI UTI ICICI 44%

Chart 1 - Bank wise Distribution of Account Holders Rank in Order of Banks With Respect To Number of Customers Held ICICI HDFC IDBI UTI

Since HDFC Bank is number two in terms of number of account holders, and its positive image and enormous goodwill among masses elevates, its position from nicher to runner in retail banking sector. It can very well take on the challenge posed by ICICI Bank and try to improve its position by focusing on key strength areas and strategically eliminating its weak points. B) Popularity of the Types of Accounts Based on the response of 100 people following table has been made: Used by people 25 42 % age 32%

Name of Account SAVINGS

CURRENT FIXED SALARY

25 25 25 Table 5- Popularity of the Types of Accounts

28% 16% 24%

S A LA R Y 24%

S A V ING S 32%

F IXE D 16%

CURRE NT 28%

Chart 2- Popularity of the Types of Accounts Types of accounts held by people ranked in order:

Savings Account Current Account Salary Account Fixed Account

Since saving account ate the most popular among masses, innovative ideas has to be framed to inveigle new prospects into this venture. Possible targets could be school and college going students, housewives and small businessmen who could easily put their money from irregular source of income into this account. C) Most Sought After Attributes of a Bank People ranked different attributes as 1, 2, 3 etc. Based on these responses mean rank has been calculated. 43

ATTRIBUTES ATM Facilities Location Service Atmosphere Employee Behavior

MEAN RANK 2.6 3.88 2.72 4.5 5.276 3.388

Table 6- Most Sought After Attributes of a Bank

MEAN RANK

6 5 4 3 2 1 0 ATM FACILITIES LOCATION SERVICE 2.6 3.88 2.72 4.24

5.276

3.388

ATMOSPHERE

EMPLOYEE BEHAVIOUR

Chart 3- Most Sought After Attributes of a Bank Now Arranging The Mean Ranks In Ascending Order We Get The Overall Rank Which Is As Follows: ATM LOCATION EMPLOYEE BEHAVIOUR FACILITIES SERVICE 44

ATMOSPHERE However it was felt during the survey that major constraint which may laggard the growth of HDFC Bank is the inadequate number of ATMs across the country. The Bank need to improve upon this front because in terms of customers consideration of attributes in choosing a bank ATMs and location of it are of paramount important.

D) Satisfaction Level of Customers From the responses of customers of different types of Accounts Customer Satisfaction level has been gauged. Savings Current Salary Fixed 80% 76% 84% 72% Table 7- Satisfaction Level of Customers

100% 80% 60% 40% 20% 0% SAVINGS CURRENT SALARY FIXED Series1

Chart 4- Satisfaction Level of Customers

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As we can clearly make out from the graph above shown that salary account is most popular among the customers .After which savings is the second most popular among customers.

E) Possibility Of Expansion Considering Present Customer Base From the responses of question whether people would like to open another account following table has been made. YES NO 45% 55%

Table 8- Possibility of Expansion Considering Present Customer Base

YES 45% YES NO NO 55%

Chart 5- Possibility of Expansion Considering Present Customer Base The chart above shows that 45% of people would like to open another account in the HDFC Bank, which means that they are satisfied with the facilities and services provided by the bank to

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them. While 55% of people says no to opening another account which means that they are not satisfied with the bank.

5.2 CHI-SQUARE TEST

HYPOTHESIS Ho: There is no significant difference of opinion between the sex & Account type groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the sex & Account type groups of the respondent with the personal interaction of the bank. .

Chi-Square Tests Value 100.000a 138.629 79.200 100 df 3 3 1 Asymp. Sig. (2-sided) .000 .000 .000

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.50.

Table 9 Showing Chi-Square Test on sex & Account type

Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it is less than 0.5 so 47

it is alternate hypothesis. So there is a no significant difference of opinion between the sex & Account type groups of the respondent with the personal interaction of the bank.

Hypothesis
Ho: There is no significant difference of opinion between the gender & invested in group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the gender & invested in groups of the respondent with the personal interaction of the bank.

Chi-Square Tests Value .160 a .160 .000 100 df 3 3 1 Asymp. Sig. (2-sided) .984 .984 1.000

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.50.

Table 10 Showing Chi Square on gender & Invested In

Interpretation

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The above table shows the chi-square test results. Here the test is done for sex and invested in and the Pearson chi-square result shows there is 0.000 significant value and it is greater than 0.5 so it is null hypothesis. So there is a difference of opinion between the gender & invested in groups of the respondent with the personal interaction of the bank

HYPOTHESIS Ho: There is no significant difference of opinion between the gender & Another Account groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the gender & Another Account groups of the respondent with the personal interaction of the bank.

Chi-Square Tests Value .040 b .000 .040 .040 100 df 1 1 1 1 Asymp. Sig. (2-sided) .841 1.000 .841 .841 Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square a Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

1.000

.500

a. Computed only for a 2x2 table b. 0 cells (.0%) have expected count less than 5. The minimum expected count is 22.50.

Table 11 Showing Chi Square Test on gender & another Account

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Interpretation The above table shows the chi-square test results. Here the test is done for and the Pearson chisquare result shows there is 0.841 significant value and it is greater than 0.5 so it is null hypothesis. There is a significant difference of opinion between the gender & Another Account groups of the respondent with the personal interaction of the bank. HYPOTHESIS Ho: There is no significant difference of opinion between the education & Invested In groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Education & Invested in groups of the respondent with the personal interaction of the bank.
EDUCATION * INVESTED IN
Chi-Square Tests Value 52.000a 62.877 1.426 100 df 9 9 1 Asymp. Sig. (2-sided) .000 .000 .232

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.25.

Table 12 Showing Chi Square Test on Education & Invested In

Interpretation- The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it 50

is less than 0.5 so it is Alternative hypothesis. There is no significant difference of opinion between the education & Invested In groups of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Education & Account Type groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Education & Account Type groups of the respondent with the personal interaction of the bank.
EDUCATION * ACCOUNT TYPE

Chi-Square Tests Value .800a .803 .000 100 df 9 9 1 Asymp. Sig. (2-sided) 1.000 1.000 1.000

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.25.

Table 13 Showing chi Square Test on Education & Account Type

Interpretation 51

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 1.000 significant value and it is greater than 0.5 so it is null hypothesis. There is a significant difference of opinion between the Education & Account Type groups of the respondent with the personal interaction of the bank

HYPOTHESIS Ho: There is no significant difference of opinion between the Education & another Account group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Education & another Account group of the respondent with the personal interaction of the bank.
EDUCATION * ANOTHER ACCOUNT

Chi-Square Tests Value 3.677a 3.720 .200 100 df 3 3 1 Asymp. Sig. (2-sided) .299 .293 .655

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 11.25.

Table 14 Showing Chi Square Test on Education & another Account

Interpretation 52

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.299 significant values and it is less than 0.5 so it is Alternative hypothesis. There is a significant difference of opinion between the Education & another Account group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the occupation & Invested in groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Occupation & Invested in groups of the respondent with the personal interaction of the bank.
OCCUPTION * INVESTED IN

Chi-Square Tests Value 36.000a 43.781 10.138 100 df 9 9 1 Asymp. Sig. (2-sided) .000 .000 .001

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.25.

Table 15 Showing chi square test on occupation & Invested In

53

Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it is less than 0.5 so it is Alternative hypothesis. There is no significant difference of opinion between the occupation & Invested in groups of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Occupation & Account Type groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Occupation & Account Type groups of the respondent with the personal interaction of the bank.
OCCUPTION * ACCOUNT TYPE

Chi-Square Tests Value 1.440a 1.425 .310 100 df 9 9 1 Asymp. Sig. (2-sided) .998 .998 .577

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 6.25.

Table 16 Showing chi Square test on Occupation & Account Type

Interpretation 54

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.988 significant value and it is greater than 0.5 so it is null hypothesis. There is a significant difference of opinion between the Occupation & Account Type groups of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Occupation & another Account Type group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Occupation & another Account Type group of the respondent with the personal interaction of the bank.
OCCUPTION * ANOTHER ACCOUNT

Chi-Square Tests Value 11.758a 12.011 8.712 100 df 3 3 1 Asymp. Sig. (2-sided) .008 .007 .003

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 11.25.

Table 17 Showing chi square test on Occupation & Another Account

Interpretation 55

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.008 significant values and it is less than 0.5 so it is Alternative hypothesis. There is no significant difference of opinion between the Occupation & another Account Type group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Income Group & Invested in Type group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Income Group & Invested in Type group of the respondent with the personal interaction of the bank.
INCOME GROUP * INVESTED IN

Chi-Square Tests Value 40.000a 55.452 4.851 100 df 12 12 1 Asymp. Sig. (2-sided) .000 .000 .028

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.00.

Table 18 Showing chi square test on Income Group & Invested In

Interpretation

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The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.195 significant values and it is less than 0.5 so it is Alternative hypothesis. There is a significant difference of opinion between the Occupation & another Account Type group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Income Group & Account Type groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Income Group & Account Type group of the respondent with the personal interaction of the bank.
INCOME GROUP * ACCOUNT TYPE

Chi-Square Tests Value .000 a .000 .000 100 df 12 12 1 Asymp. Sig. (2-sided) 1.000 1.000 1.000

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.00.

Table 19 Showing chi square test on Income Group & Account Type

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Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it is less than 0.5 so it is null hypothesis. There is no significant difference of opinion between the Occupation & another Account Type group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Income Group & another Type group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Income Group & another Type group of the respondent with the personal interaction of the bank.
INCOME GROUP * ANOTHER ACCOUNT

Chi-Square Tests Value 6.061a 6.182 .500 100 df 4 4 1 Asymp. Sig. (2-sided) .195 .186 .480

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.00.

Table 20 Showing chi Square test on Income Group & Another Type

Interpretation 58

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.195 significant values and it is less than 0.5 so it is null hypothesis. There is a significant difference of opinion between the Income Group & another Type group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the AGE & Invested in Type of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the AGE & Invested in Type of the respondent with the personal interaction of the bank.
AGE * INVESTED IN

Chi-Square Tests Value 40.000a 55.452 4.851 100 df 12 12 1 Asymp. Sig. (2-sided) .000 .000 .028

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.00.

Table 21 Showing chi Square test on AGE & Invested In

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Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it is less than 0.5 so it is Alternative hypothesis. There is no significant difference of opinion between the AGE & Invested in Type of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Age & Account Type groups of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Age & Account Type groups of the respondent with the personal interaction of the bank.
AGE * ACCOUNT TYPE

Chi-Square Tests Value .000 a .000 .000 100 df 12 12 1 Asymp. Sig. (2-sided) 1.000 1.000 1.000

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.00.

Table 22 Showing chi Square test on Age & Account Type

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Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 1.000 significant value and it is greater than 0.5 so it is null hypothesis. There is a significant difference of opinion between the Age & Account Type groups of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the Age & another Account group of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the Age & another Account group of the respondent with the personal interaction of the bank.
AGE * ANOTHER ACCOUNT

Chi-Square Tests Value 6.061a 6.182 .500 100 df 4 4 1 Asymp. Sig. (2-sided) .195 .186 .480

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 9.00.

Table 23 Showing Account chi square test on Age & another

Interpretation 61

The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.195 significant value and it is greater than 0.5 so it is null hypothesis. : There is a significant difference of opinion between the Age & another Account group of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the marital status & invested in of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the marital status & invested in of the respondent with the personal interaction of the bank.
MARITAL STATUS * INVESTED IN

Chi-Square Tests Value 20.000a 21.288 .792 100 df 3 3 1 Asymp. Sig. (2-sided) .000 .000 .373

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.50.

Table 24 Showing chi square test on marital status & Invested In

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Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.000 significant values and it is less than 0.5 so it is Alternative hypothesis. There is no significant difference of opinion between the marital status & invested in of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the marital status & Account Type of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the marital status & Account Type of the respondent with the personal interaction of the bank.
MARITAL STATUS * ACCOUNT TYPE

Chi-Square Tests Value .160a .160 .127 100 df 3 3 1 Asymp. Sig. (2-sided) .984 .984 .722

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.50.

Table 25 Showing chi square test on marital status & Account Type

63

Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.984 significant value and it is greater than 0.5 so it is Null hypothesis. There is a significant difference of opinion between the marital status & Account Type of the respondent with the personal interaction of the bank.

HYPOTHESIS Ho: There is no significant difference of opinion between the marital status & Another Account of the respondent with the personal interaction of the bank. Ha: There is a significant difference of opinion between the marital status & Another Account of the respondent with the personal interaction of the bank
MARITAL STATUS * ANOTHER ACCOUNT

Chi-Square Tests Value 1.980 b 1.455 1.987 1.960 100 df 1 1 1 1 Asymp. Sig. (2-sided) .159 .228 .159 .162 Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square a Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

Table
.228 .114

26

Showing chi Square test marital status another & on

a. Computed only for a 2x2 table b. 0 cells (.0%) have expected count less than 5. The minimum expected count is 22.50.

Account

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Interpretation The above table shows the chi-square test results. Here the test is done for sex and account type and the Pearson chi-square result shows there is 0.159 significant values and it is less than 0.5 so it is Alternative hypothesis. There is a significant difference of opinion between the marital status & Another Account of the respondent with the personal interaction of the bank.

5.3 SWOT ANALYSIS

Strength The keys strength areas of HDFC Bank are their motivated and highly competent staffs who is aggressive in their pursuit for excellence in terms of employee competence it rivals the highly rated foreign banks. Weakness Though HDFC Bank has wide coverage of ATM Network throughout the country it is not considered adequate keeping in view is wide customer base. Opportunity HDFC Bank has good opportunity in rural area and offices etc. which are still untouched by banks of such repute and are considered virgin markets. Threat Other banks like ICICI, Centurion, UTI, IDBI, an expanding at a very fast rate and are perceived as threat to HDFC Bank.

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CHAPTER VI FINDINGS, SUGGESTIONS & CONCLUSION 6.1FINDINGS

1. Since HDFC Bank is number two in terms of number of account holders, and its positive image and enormous goodwill among masses elevates, its position from nicher to runner in retail banking sector. It can very well take on the challenge posed by ICICI Bank and try to improve its position by focusing on key strength areas and strategically eliminating its weak points.

2. Since saving account ate the most popular among masses, innovative ideas has to be framed to inveigle new prospects into this venture. Possible targets could be school and college going students, housewives and small businessmen who could easily put their money from irregular source of income into this account.

3. However it was felt during the survey that major constraint which may laggard the growth of HDFC Bank is the inadequate number of ATMs across the country. The Bank need to improve upon this front because in terms of customers consideration of attributes in choosing a bank ATMs and location of it are of paramount important.

4. As we can clearly make out from the graph above shown that salary account is most popular among the customers .After which savings is the second customers. 66 most popular among

5.

The chart shows that 45% of people would like to open another account in the HDFC

Bank, which means that they are satisfied with the facilities and services provided by the bank to them. While 55% of people says no to opening another account which means that they are not satisfied with the bank.

6.2 SUGGESTIONS
Try to improve after sales services. To be some quality conscious. Try to install ATMs at more convenient places for their customer. Try to provide Complete/Actual information to the customer. Customer must have all the information regarding charges & fees. HDFC must issue at par cheques to their customers. Make Strong Public Relations: The bank has to provide better services to satisfy the needs and wants of customers specially on the occasion of deepawali and dasahara like festivals so that the customer has to satisfied with their services of banks the bank is to provide loans, specially housing loans to the customer at very low interest rates so that the every middle class family is to avail loans without any problem. Continuous Market Feed Back: To make the good relation with the customer it is very important to take feedback time to time to know about the problems and difficulties which are faced by the customer. Provide Recent Information to the Customer: The bank is able to give as many as possible information to our customers so that the customer is able to understand which type of information is to be used in a particular sector. Try to Start on Line Trading: 67

Due to on line trading the convenience to customer is given by way of opening and depositing their money on the basis of on line services.

Try to Install ATMs at more Convenient Places: Financial year is also increase the customer has also available their the bank is to install ATMs as many as possible due to convenience of their customer specially in commercial places, like petrol pumps, in market, in the hospital . So that the customer has convince to withdraw their money without problems. Try To Open Extension Counter At Various Places: The bank has to open their extension counter in various places of their city so that the deposit of bank is also increase and the turnover of bank during facilities which is provided by bank cheaper rate.

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6.3 CONCLUSION As it is the fastest growing section and HDFC Bank is one of the top biggest player of this sector in this project I deal with all those areas and various product which attract the customer most. This project helps those customers who want in-depth knowledge of all the product of HDFC Bank. In todays world it is necessary for a customer to have a complete knowledge of services provide by a Bank. This project helps those people and Bank to avail all the facilities and improve their services respectively. In this project an attempt is being made to include all the complete and accurate information regarding the Bank services charges and fine.

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QUESTIONNAIRE FOR RESPONDENTS I, hereby, declare that all the information provided by you is strictly for the purpose of research and shall not be used for any other purpose. I am grateful to you for your support and thank you for your honest response. I request you to read the following before you proceed further.

Please tick only one option unless mentioned otherwise. All the information in the questionnaire is for academic purpose and shall be kept confidential.
PART-A

1. Respondents Name : ___________ 2. Sex: [ ] M 3. Age (In yrs) 18-20 40-50 [ ] : [ ] 30-40 [ ] [ ] 60 & above [ ] F

[ ] 20-30 [ ] 50-60

4. Your marital status Married Unmarried

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5. Your educational background Only up to 10th 10+2 Graduate Post graduate and above

6. Which of these best describes your occupation? Occupation Remark Working/salaried-Government Working/salaried- Private Business Professional (Doctor, Engineer, CA, Tax consultant etc.)

7. You consider yourself as belonging to which annual income group <Rs.1 lacs 1-3lacs 3-5lacs 5-10lacs >10 lacs

PART -B

8. How satisfied are you with each of the product that you invested in? (The satisfaction could be based on different parameters e.g. in terms of the returns that product has offered to you / quality of serviced offered by the company / quality of service offered by the consultant who sold you the product etc.) 71

Satisfaction level Invested in Highly dissatisfied Fixed Acct Savings Acct Salary Acct Current Acct

Dissatisfied

Neither satisfied dissatisfied

Moderately nor satisfied

Completely satisfied

9. Do you have an account in any Scheduled Bank?

HDFC BANK ICICI BANK UTI BANK IDBI BANK

10. What Type of account do you have?

SAVING ACCOUNT CURRENT ACCOUNT FIXED ACCOUNT SALARY ACCOUNT

11. How long are you being associated with the Bank? 72

YEARS________ MONTHS______

12. What attracts you most? (Rank)

ATM LOCATION EMPLOYEE BEHAVIOUR FACILITIES SERVICE ATMOSPHARE

13. Do you HDFC Bank Would be able to Position itself as a Strong Financial Institution?

yes

No

14. Are you satisfied with the Bank?

yes

No

15. If yes do you want to open another account?

yes

No

16. If no then what are the reasons for Dissatisfaction?

17. If you are offered a Good Savings Plan from HDFC Bank with good rate and benefit will you be interested?

yes

No

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Thank u

BIBLIOGRAPHY

BOOKS

Principles Of Marketing Marketing Management Research Methodology -

Philip Kotler Rajendra Saxena C. R. Kothari

Websites:
WWW. HDFC.COM WWW. IRDAINDIA.ORG WWW. FINANCIAL EXPRESS .COM

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APPENDIX
1. CURRENT ACCOUNT: Now, with an HDFC Bank Current Account, experience the freedom of multi-cit banking! You can have the power of multi-location access to your account from any of our 1,725 branches in 780 cities. Not only that, you can do most of your banking transactions from the comfort of your office or home without stepping out. We make it our business to help you with your business by offering you a Current Account with all the benefits you need to stay ahead of your competition. At HDFC Bank, we understand that running a business requires time and money, also that your business needs are constantly evolving. That's where we come in. We provide you with a choice of Current Account options to exclusively suit your business whatever the size or scope. 2. SAVING ACCOUNT: Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a customer's need and occupational status, we have a range of solutions that are second to none . These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident

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that you will find the perfect banking solution. Open an account in your name or register for one jointly with a family member today.

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