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CHAPTER - 1

COMPANY PROFILE

Banking Industry
A banking company in India has been defined in the Banking companies Act, 1949 as
one “which transacts the business of banking which means the accepting, for the purpose
of lending or investment, of deposits of money from the public, repayable on demand or
otherwise and withdrawals by cheque, draft, order or otherwise”

Banking is an important element of economy’s 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 that 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.

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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 country’s 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.

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,

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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 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
currently defined by the 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: this area comprises 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 retail
banking industry has found its historic image of aloofness, a management

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

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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.

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-

1. the banks should have a minimum net worth of Rs. 1 billion


2. The promoters holding should be minimum 25% of paid up capital.

The last decade witnessed the maturity of India’s financial markets. Since 1991, every
governments of India took major steps in reforming the financial sector of the country.
The important achievements in the following fields are achieved in following heads:

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.

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

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Reserve Bank of India (RBI) has become more independent. Opinions are also that there
should be a super- regulator for the financial services sector instead of multiplicity of
regulators.

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.

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.

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

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and the Financial Institutions Act 1993 were passed, and special recovery tribunals set up
to facilitate quicker recovery of loan arrears.

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 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

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Fluctuation Reserve as tier-I capital. This will help banks to enhance their CAR. 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. Risk based supervision was introduced in some
selected banks. Guidelines have been issued to banks not to outsource core-banking
functions.

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.

Government’s shareholding in several Public Sector Banks (PSBs) reached close to 51%.
To continue government’s 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.

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 bank’s 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 government’s objective of doubling its credit in the coming five years.

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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 of
the foreign banks have been highest, followed by the private sector banks. Revenue
sources of banks been diversified. They have entered into the business of selling third-
party 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. Many banks will aggressively position
themselves on an end-to-end solution. The total Real Time Gross Settlement (RTGS)
transactions increased from 1,91,792 in March 2005 to 3,84,176 in September 2005.

Merger and Acquisitions


The banking industry 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.

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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 Kenya’s 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 behemoth. 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 corporates 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.

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.

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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 are rising. Banking sector is expected to raise the funds to the tune of Rs. 600
billion over the next five years to push 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. Then followed 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.

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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 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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PROFILE OF BANK

About - HDFC Bank Limited, India

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations
as a Scheduled Commercial Bank in January 1995.

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 a market
leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling
units. HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.

Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital
is Rs.282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of the bank's equity
while about 13.1% 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

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5.5% of the bank's equity. Roughly 27.5% of the equity is held by FIIs, NRIs/OCBs
while the balance is widely held by about 214,000 shareholders. The shares are listed on
The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American
Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol
"HDB".

Times Bank Amalgamation


In a milestone transaction in the Indian banking industry, TimesBank Limited (another
new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of TimesBank received 1 share of HDFC Bank for every 5.75 shares of
TimesBank. 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.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 468 branches spread over 212 cities across the country. All branches are linked on
an online real-time basis. Customers in 90 locations are also serviced through Phone
Banking. The Bank's expansion plans take into account the need to have a presence in all
major industrial and commercial centres where its corporate customers are located as well
as the need to build a strong retail customer base for both deposits and loan products.
Being a clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centres where the NSE/BSE has a strong and active member base. The
Bank also has a network of over 1054 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

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Management
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25
years and before joining HDFC Bank in 1994 was heading Citibank's operations in
Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of


experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting and
retaining the best talent in the industry, the bank believes that its people are a significant
competitive strength.

Technology
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. 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).

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. The systems are open,
scaleable and web-enabled.

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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.

Rating
HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Pvt. Ltd. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk".
CARE has also rated the Bank's Certificate of Deposit (CD) programme "PR 1+" which
represents "superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)"
rating to the Bank's deposit programme, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high". HDFC
Bank also has its long-term unsecured, subordinated (Tier-II) Bonds rated by CARE and
Fitch Ratings India Pvt. Ltd. CARE has assigned the rating of "CARE AAA" for the
Tier-II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)"
with the outlook on the rating as "stable". In each case referred to above, the ratings
awarded were the highest assigned by the rating agency for those instruments?

Product scope:
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and
needs. For organizations the company has a host of customized solutions that range from
Funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing

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goodwill of the company. The products of the company are categorized into various
sections which are as follows:
• Accounts and deposits.
• Loans.
• Investments and Insurance.
• Forex and payment services.
• Cards.
• Customer center.

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ACCOUNTS & DEPOSITS

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter
what a customer's need and occupational status, we have a range of solutions that are
second to none.

Whether you're employed in a company and need a simple Savings account or run your
own business and require a robust banking partner, HDFC Bank not only has the perfect
solution for you, but also can recommend products that can augment your planning for
the future.

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

Regular Salary

No Frills Classic

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REGULAR SAVINGS ACCOUNT

An easy-to-operate savings account that allows you to issue cheques, draw Demand
Drafts and withdraw cash. Check up on your balances from the comfort of your home or
office through Net Banking, Phone Banking and Mobile Banking.

Need money urgently? Withdraw cash from any of the 1200 ATM centers spread across
the country.

Features & Benefits

 Wide network of branches and over thousand ATMs to meet all your banking
needs no matter where you are located.

 Bank conveniently with facilities like Net Banking and Mobile Banking- check
your account balance, pay utility bills or stop cheque payment, through SMS.

 Never overspend- Shop using your International Debit Card that reflects the
actual balance in your savings account.

 Personalized cheques with your name printed on each cheque leaf for enhanced
security.

 Take advantage of Bill Pay, an instant solution to all your frequent utility bill
payments. Instruct for payment over the phone or through the Internet.

 Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on
your account.

Eligibility & Account Operation

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The following are eligible to open a Regular Savings Account:

 Resident Individuals (sole or joint account).

 Minor below 18 yrs. (account only with guardian).

 Hindu Undivided Families.

 Trusts.

 Associations.

 Clubs or Societies.

 Foreign Nationals residing in India. If you are a Foreign National residing in


India, you may open a Savings Account by temporarily attaching an
undertaking stating sources of credit and a copy of your Residence Permit.

Account Operation

A minimum deposit of Rs. 5,000/- is required to open an account and thereafter an


Average Quarterly Amount of the same amount has to be maintained. It is
mandatory to maintain a minimum Average Quarterly Balance (AQB) of Rs.
5,000/-. If the balance falls below Rs. 5,000/- a service charge of Rs. 750/- will be
levied per quarter. If you open a Fixed Deposit Account of Rs. 50,000/-, then you
no longer have to maintain a minimum balance of Rs. 5,000 on your Savings
Account. In effect your account becomes a Zero Balance Account.

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“NO FRILLS” SAVINGS ACCOUNT

In an effort to make banking simpler and more accessible for our customers, we have
introduced the 'No Frills' Savings Account, which offers you all the basic banking
facilities, while you maintain a nominal average quarterly balance of only Rs. 250! You
can even avail of services like Net Banking, Mobile banking free of cost.

Features & Benefits

 Access a wide network of branches and over a thousand ATMs across the
country to meet all your banking needs.

 Bank conveniently with facilities like Free Net Banking and Mobile
Banking.

 Use the Free Electronic Funds Transfer (EFT) facility to transfer funds
from your HDFC Bank account to an account in another Bank at the locations as
specified by RBI.

 Enjoy Free IVR based Phone Banking.

 Get Free Quarterly Account Statements.

 Access your account through a Free ATM Card.

 Enjoy free Cash Deposits at Branch/ATM.

 9 Free Cash withdrawals per Quarter at Branch and HDFC Bank ATMs

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PLUS CURRENT ACCOUNT

The Current Account is most suitable for business class people. With HDFC Bank’s
current account, one can get personalized cheque book, inter branch banking and a
monthly account statement in addition to host of other features. The Bank provides two
types of current account facilities.

a) Current Account Regular

 With minimum average balance of Rs. 10,000


 In case of non-maintenance Rs. 300 per quarter
 50 Cheques leave free

b) Current Account-Premium

 Minimum average balance Rs.25000


 In case of Non maintenance Rs.600 per quarter
 Cheque books free

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REGULAR FIXED DEPOSIT

The bank provides the facility of fixed deposit which can be opened with minimum
deposit of Rs. 10000. All fixed deposits are cluster deposits held in units of Rs.1. The
interest rate of fixed deposits are as under:

Period Amount Interest


Rate

15 days to 29 days Below Rs. 25 lacs 5%


30 days to 60 days Below Rs. 25 lacs 7.25%
91 days to 180 days Below Rs. 25 lacs 8.00%
6 months to 1 day 1 year Below Rs. 25 lacs 8.5%
1 year 1 day to 5 years Below Rs. 25 lacs 8.5%
Saving account Below Rs. 25 lacs 4% p.a

HDFC Bank Plus:

This is a CURRENT ACCOUNT that offers you much more than just quick and reliable
service. Now one can transfer up to Rs. 50 lakhs per month free between the four metros.
One can also get cheque clearing between four metros, courier facility, phone banking

Guru Nanak Institute of Management & Technology, Ludhiana 22


and personalized cheque book among a whole range of services all free of cost. In
addition one can get cash delivery, home delivery of DDs, cheque protection facility,
outstation cheques clearance facility etc.

Sweep in Account:

Features

a) Easy to operate: Money gets automatically swept into your saving account,
without any bother.
b) Operate your account through cheque or by ATM: Gives you instant access to
your deposit, whenever you need it.
c) Minimum interest loss: Since your deposits are held in units of Re.1, you only
encash the exact amount withdrawn.
d) Access your money free of cost: There are no hidden charges in the day to day
operations of your sweep in account.

e) Link Several Deposits together: Open a new deposit for Rs.5000 and it will be
linked to your sweep in account.

How does sweep in account work?


Since deposit in account holds your money in a fixed deposit in units of Re.1, every
time money is transferred from your fixed deposit to your saving account, interest
loss in minimizes further you lose 1% of normal interest on the amount transferred
from your fixed deposit. The rest of your deposit continues to earn the original rate
till maturity.

There are more benefits of course, You can if you like, always open as on deposit for
just Rs.5000. Further , you can link as many deposit, the Sweep in automatically
choose the oldest deposit first before sweeping money into your savings accounts.

Guru Nanak Institute of Management & Technology, Ludhiana 23


ATM

ATM means “Automated Teller Machine” but it is popularly known as “Any Time
Money” and 365 days in a year from anywhere in India. ATM’s are actually banks in
themselves. In other words, one can perform the banking operations by pushing few
buttons. To withdrawal cash, make deposit or transfer funds between account you
generally insert an ATM card and enter your personal identification number (PIN). It
provides 24 hours encashment facilities to the customers. In India there are 600 ATMs.

Advantages of ATM:

i. 24 – Hours access to cash:-You can withdraw up to Rs. 10,000/- per day on


your ATM Cards. The fast cash option saves your time by providing the cash
in denominations of Rs. 500/-
ii. Balance inquiry: - Your updated balance will appear on the screen and will
also be printed on the transaction slip.
iii. Mini- statement request:-Get details of the last 9 transactions on your
account with the mini- statement, along with your balances.
iv. Cheque book request: - Send a request for a cheque book or account
statement and it will arrive at your doorstep.

Guru Nanak Institute of Management & Technology, Ludhiana 24


v. Funds transfer: - Transfer money from one of your accounts to another. It’s
easy. Select the account from which you want it transferred. Both accounts
must be linked to your ATM Cards and Customers ID.
vi. Pin change: - You can conveniently change your PIN (given at the time of
opening your account) whenever you wish. Stay totally in control and ensure
complete security for your ATM Card.
vii. Refill your Prepaid card - If you are an HDFC Bank Account holder and a
prepaid customer, you can now refill your prepaid card with our Prepaid Refill
service. Know more. - Your cash or cheques can be deposited into your
account and the ATM will immediately print a receipt for the same.
viii. Learn about all our other products: - Simply select a product and all the
information you require will be displayed on the screen.
ix. Pay your utility bills - Pay your cellular, telephone and electricity bills
through the ATM using Bill Pay, a comprehensive bill payments solution.
Know more about Bill Pay.
x. Deposit cash or cheques - You can deposit cash or cheques into your account
and the ATM will immediately print a receipt for the same.

Global Network HDFC Bank ATMs are a part of the VISA International Plus ATM
Network and the MasterCard International Cirrus ATM Network, and can be accessed by
all domestic and international MasterCard, Cirrus or Maestro and VISA Electron
cardholders for cash withdrawals and balance inquiries. HDFC Bank have also partnered
with American Express to offer their domestic and international cardholders the benefits
of cash advances from any of our ATMs.

Guru Nanak Institute of Management & Technology, Ludhiana 25


CARDS

CREDIT CARDS:

Our range of Cards help you meet your financial objectives. So whether you are looking
to add to your buying power, conducting cashless shopping, or budgeting your
expenditure, you will find a card that suits you.

Besides arming you with unmatched spending power, our Credit Cards are designed to
meet your unique needs. Choose one that's tailored for you.

HDFC Bank has recently launched the Credit Card. Using Credit Cards you can do
shopping and need not carry large amount of money along with you. There are five types
of Credit Cards given by HDFC bank i.e. Silver, Gold, Value Plus, Health Plus and
Titanium Card. But here in Amritsar Titanium card has not yet launched. Here there are
only four types of credit cards. All these cards are lifetime cards. These credit cards are
International Credit Cards.

Guru Nanak Institute of Management & Technology, Ludhiana 26


SILVER CREDIT CARD

Here the minimum limit is Rs. 10,000 and maximum is 1 lakh. Here your amount will be
withdrawn after 50days. This card also provide with 6.5 lakh accidental insurance
absolutely free. But this you will have to claim within 24 hours. The documentation
required for this is id proof, pan card etc. If the customer already has an account then the
bank will fulfill all the formalities But if the account is new then
Features & Benefits:-
 Earn while you spend
With us, money spent is money earned. For every Rs. 100 you spend, you earn
2 reward points. You can redeem these accumulated points for exciting gifts
and offers from our exclusive rewards program.
 Add on cards
Get up to 3 supplementary cards for your spouse, parents, siblings (own
brother/sister), son and/or daughter (over 18 years) and allow them to enjoy
the many benefits of a HDFC Bank International Silver Credit Card.
 Zero liability on lost card
Report your credit card loss immediately to our executives at our 24-hour
call centers. After reporting to us, you carry zero liability on any
fraudulent transactions on your card.
 Widely accepted
Accepted at over 110,000 merchant establishments across India and Nepal
and close to 18 million VISA establishments around the world.

Guru Nanak Institute of Management & Technology, Ludhiana 27


VALUE PLUS CREDIT CARD

Like the name suggests, the Value Plus Credit Card brings you added value unlike any
other card. It is a Guaranteed Cash Back card which enables you to earn up to 5% Cash
Back on your spends.
Here the minimum limit is Rs. 10,000 and maximum is 1 lakh. Here your amount will be
withdrawn after 50days. This card also provide with 6.5 lakh accidental insurance
absolutely free. But this you will have to claim within 24 hours. The documentation
required for this is id proof, pan card etc. If the customer already has an account then the
bank will fulfill all the formalities But if the account is new then

Features & Benefits:

 Cash Back Of Up to 5%
Get up to 5% of your spends as cash back on your Credit Card Statement.

Spend Categories Cash Back %


• Hospitals, Medical Stores and 5%
Railways
• Groceries, Supermarket, Apparels 2.50%
and Utility Payments
• All other Category Spends 1.25%

Guru Nanak Institute of Management & Technology, Ludhiana 28


 Children Future Secured
The happiness and the Well-being of your children is your most important
responsibility. HDFC Bank values your commitment and has designed a
comprehensive insurance package of Rs1 Lakh enabling your children to continue
their education in the unfortunate event of loss of your life due to accident.

 House hold Insurance


HDFC Bank Value Plus Credit Card also comes with a comprehensive House Hold
Insurance Policy that covers damage caused to household contents by fire and
burglary up to a value of Rs 1 Lakh.

 Worldwide acceptance
The HDFC Bank International Value Plus Credit Card is accepted at over 23 million
Merchant Establishments around the world, including 110,000 Merchant
Establishments in India.

 Cash Advance
Just step into any one of our ATMs or VISA Member ATMs and withdraw cash up to
30% of your credit limit at a very nominal charge (Please refer to the Schedule of
charges).

 Revolving credit facility


This feature allows you to pay a minimum amount, which is 5% (subject to a
minimum amount of Rs.200) of your total bill amount or any higher amount
whichever is convenient for you. You can then carry forward the balance to a better
financial month, for which you pay a charge of 2.95% (2.85% per month for HDFC
Bank Account Holders), per month.

 Interest Free Credit Period

Guru Nanak Institute of Management & Technology, Ludhiana 29


Your Card now gets an Interest Free Credit Period of up to 50 days from the date of
purchase (subject to the submission of the charge by the Merchant). Subsequently, if
you carry forward your outstanding balance you just pay a nominal interest of 2.95%
(2.85% per month for HDFC Bank Account Holders) per month.

 Balance Transfer Option


If you have any other credit card and wish to transfer their balances to your HDFC
Bank International Value Plus Card, those balances will attract a nominal charge for a
period of six months from the transfer date. The outstanding amount transferred can
be up to 50% of your HDFC Bank International Value Plus Card Credit Limit.

 Comprehensive Insurance
With the HDFC Bank Value Plus Credit Card comes an unmatched feeling of
security, its carefully crafted insurance package offers comprehensive coverage
against the various risks like accidental death and hospitalization expenses due to an
accidents.

 Accidental Death
In case of death in an air accident your nominated next of kin will receive a
compensation of Rs.2,00,000. And in case of death in a rail or road accident, your
nominated next of kin will receive a compensation of Rs.1,00,000.

 Lost Card Liability


If you happen to lose your Card, don't panic. The first thing to do is Call us at any of
our 24-Hour Customer Call Centers and report the loss. Please make sure that you file
a Lost report for the Lost/ Stolen Card at the nearest police station and send us the
acknowledgement copy.

HEALTH PLUS CREDIT CARD

Guru Nanak Institute of Management & Technology, Ludhiana 30


Imagine a Credit Card that takes care of your financial health as well as your family's
health and fitness. This is not just a card but a guarantee of a healthy and secure future.

Introducing the HDFC Bank Health Plus International Credit Card - India's first Credit
Card with a free inbuilt Cashless Med claim. This card comes to you from HDFC Bank in
association with the United India Insurance Company (UIIC), one of the leading
insurance service providers. This card is designed keeping your good health in mind. It
brings you unique features like the Cashless Med claim facility and discounts at leading
hospitals which make it an unmatched product.

Now you can stop worrying about rising cost of quality health care for you and your kin.

Features & Benefits


 Cashless Med claim
This card comes with a free cashless med claim cover of Rs.50,000 plus a critical
illness cover of Rs.1.5 lakhs. The critical illness cover includes open heart
surgery, cancer, kidney failure and vascular stroke. You can avail cashless med
claim facility at any of more than 3000 networked hospitals of the Third Party
Administrator (TPA) across the country.
 Discounts at participating hospitals
The best of medical care will now cost you less with fabulous discounts on annual
health check-ups, outpatient and inpatient investigations in the participating
hospitals.

Guru Nanak Institute of Management & Technology, Ludhiana 31


 Extra protection for your family - Add-on Float Cover
You have the option of extending the Rs.50,000 mediclaim plus the
critical illness cover of Rs.1.5 lakhs cover to the add-on cardholders, be it
your spouse, children, brothers or sisters. What's more, the add-on
cardholders can also avail the discounts at participating hospitals.
 Protection through insurance
The HDFC Bank Health Plus International Credit Card offers you a
comprehensive insurance package at no additional cost. In case of death in
an air accident, the nominated kin will receive a compensation of Rs.10
lakhs.
In the case of a rail or road accident the nominated kin will receive a
compensation of Rs.2 lakhs.
 Hassle Free Travel
You can now book your train and air tickets from the comfort of your home or
office. Thanks to our tie-up with SITA Travels, you can now get train tickets
delivered to you at your home. You can also avail a discount on domestic and
international travel as a valued HDFC Bank credit card holder.
 Cash Advance
Just step into any one of our ATMs or any ATM displaying MasterCard logo
or Maestro Cirrus logo and withdraw cash up to 30% of your credit limit at a
very nominal charge (Please refer to the Schedule of charges).
 Revolving credit facility
This feature allows you to pay a minimum amount, which is 5% (subject to a
minimum amount of Rs.200) of your total bill amount or any higher amount
whichever is convenient for you. You can then carry forward the balance to a
better financial month, for which you pay a charge of 2.95% (2.85% per
month for HDFC Bank Account Holders), per month.
 Interest Free Credit Period
You get an Interest Free Credit Period of up to 50 days from the date of
purchase (subject to the submission of the charge by the Merchant).
Subsequently, if you carry forward your outstanding balance you just pay a

Guru Nanak Institute of Management & Technology, Ludhiana 32


nominal interest of 2.95% (2.85% per month for HDFC Bank Account
Holders) per month.
 Add-on Cards
Get up to 2 supplementary cards for your spouse, parents, siblings (own
brother/sister), son and/or daughter (over 18 years) and allow them to enjoy
the many benefits of a HDFC Bank Health Plus International Credit Card.
 Zero liability on lost card
If you lose your Health Plus credit card, report the loss immediately to our 24-
hour call centers. Any fraudulent transactions on your credit card after
reporting the loss will not be your liability and will be borne by us.
 Third Party Administrator (TPA)
The TPA is an intermediately between the hospital, the Insurer and the card
member. Under the TPA system, the med claim policyholders need not pay
the medical bills upfront. Instead the settlement is to be done between the
hospital and the TPA. For the customer, medical expenditure becomes a
cashless transaction. For the HDFC Bank Health Plus International Credit
Card, the insurer United India Insurance company (UIIC) has appointed
Family Health Plan Limited (FHPL) as the TPA.

GOLD CREDIT CARD

Guru Nanak Institute of Management & Technology, Ludhiana 33


If you have a taste for the good things in life.
If you like been waited upon.
If you never settle for anything but the best.
You don't have to look any further than the HDFC Bank Gold International Card.
Join the most exclusive club in town. Get yourself an HDFC Bank International Gold
Card and get introduced to a whole new life of privileges.
Features & Benefits:
 Special offer on air tickets
Attractive discounts on domestic and international air tickets.
 Discounts on hotel tariff
A whopping 50% discount on hotel stays across 30 cities in India through
complimentary membership to the International Business Traveller's Club. This also
entitles you to discounts up to 50% at over 10,000 hotels worldwide.
 Extensive travel-related insurance
Covers loss of baggage, loss of air ticket, delayed flight, late baggage arrival, loss of
passport and hijacking.
 Comprehensive Insurance coverage
This coverage will cover accidental Death, hospitalization expenses due to an
accident, purchase protection and household insurance.
 Greater reward points
You stand to earn 2 reward points for every Rs 100 spent by you - a clear 200%
advantage over any other credit cards. This would be in addition to special promo
programs where you would earn bonus points.

 Reward points redemption

Guru Nanak Institute of Management & Technology, Ludhiana 34


After earning all those reward points, have fun redeeming them for exciting gifts and
facilities, or just convert them directly into spends!! We present to you the My
Rewards programme and the Air Miles redemption programmed.
 My Rewards programmed
This programmed offers to you a vast array of products, gifts, holiday packages and
more. You can even have the facility of acquiring what you need by paying partly
through the accumulated points and paying the balance through your HDFC Bank
Gold card. This is possible through our unique Classic, Premium and Fas Track
programmers.
 Air Miles redemption
Redeem your accumulated reward points for air miles on leading airlines like Indian
Airlines and Jet Airways.
 Worldwide acceptance
Accepted at over 23 million Merchant Establishments around the world, including
110,000 Merchant Establishments in India.
 Revolving credit facility
Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of
your total bill amount or any higher amount whichever is convenient and carry
forward the balance to a better financial month, for which you pay a charge of 2.95%
(2.85% per month for HDFC Bank Account Holders) per month.
 Free Add-on card
You can share these wonderful features with your loved ones too - we offer the
facility of an add-on card for your spouse, children or parents. Allow us to offer the
first such add-on card to you FREE OF COST with our compliments.
 Interest free credit period
Your Card now gets you the highest Free Credit Period of up to 50 days from the date
of purchase (subject to the submission of the charge by the Merchant). Subsequently,
if you carry forward your outstanding balance you just pay a nominal interest of
2.95% (2.85% per month for HDFC Bank account Holders) per month.

Guru Nanak Institute of Management & Technology, Ludhiana 35


INTERNATIONAL DEBIT CARD:

HDFC Bank has recently launched the International Debit Card in Mumbai and
Delhi in association with Visa. The Debit Card is just like ATM, with the
advantage that it can also be used to shop or pay to just about anything. All over
the India as well as abroad, it is applicable. A Debit Card is basically a better way
of carrying cash or a cheque book. It is an electronic card that one can use as a
convenient payment mechanism. The card is generally issued by your bank and is
connected through the ATM. Debit Card allow you to spend only what is in your
account and purchase should be kept track of just as if you’re writing a cheque.

For transaction at VISA/PLUS ATMs following charges apply.

Domestic Visa/Plus Atm Location


Cash withdrawal per transaction Rs. 55
Balance enquiry per transaction Rs. 10

International Visa/Plus Atm Location


Cash withdrawal per transaction Rs. 110
Balance enquiry per transaction Rs. 10

Eligibility:
A. Resident Indian holding any of the following Accounts with HDFC Bank:-

1. Saving Account
2. Current Account ( Sole Proprietorship)
3. Super Saving Account
4. Loan Against Shares Account (LAS)

Guru Nanak Institute of Management & Technology, Ludhiana 36


5. Salary Account

B. Non- Resident Indian holding any of the following NRI Accounts with HDFC
Bank:-
1. NRI Saving Account
2. NRE Saving Depository Account
3. NRE Current Depository Account

Advantages of International Debit Card

I. International Debit Card: Its like an ATM card you shop with:
a. Use your HDFC Bank International Debit Card to access your account
from a widespread network of ATM’s within India and abroad. Withdraw
cash at over 7, 00,000 Visa/Maestro/Plus/Cirrus ATM’s in 140 countries.
b. Shop at over 30,000 establishments in India and over 10 million
worldwide with your International Debit Card.
c. At selected Branches of Canara Bank and Bank of India you can withdraw
cash against your HDFC Bank International Debit Card (available only
with the Visa Electron programme).

II. Cash withdrawal at select Canara Bank and Bank of India branches (for Visa
Electron Programme only): Walk into 450 selected branches of Canara Bank of
India across the country and withdraw cash against your HDFC Bank International
Debit Card (available only with the Visa Electron programme).

III. Daily withdrawal limits: you can withdraw up to Rs. 15,000/- at ATMs and make
purchases up to Rs. 25,000/- at merchant locations (Point of sale) per day. For cash
withdrawal Canara Bank and Bank of India locations (VISA Electron Card holder
only) the point of sale limit applies.

Guru Nanak Institute of Management & Technology, Ludhiana 37


NET BANKING

Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-second


account information, Net Banking lets you manage your account from the comfort
of your mouse - anytime, anywhere. Net Banking is Real Time, giving you up-to-the-
second details on your account. It can be accessed anytime, from anywhere, giving
you complete control over your finances. There are no queues to stand in, or turns to
wait for. With Net Banking you are in control. HDFC Bank's Net Banking service is
secure. Using industry-standard technologies and infrastructures, our service gives
you peace of mind. So next time you think of visiting your branch, switch on your PC
instead.

It is most sophisticated way to bank. This is another convent way to access the bank
account from any part of word, through internet, when one registers for net banking.
He/She will get a password which can be used with the customer ID number to
conduct transactions and get up to date the products and services round the clock.

Features
• View Account Balances & Statements
• Transfer Funds between accounts
• Create Fixed Deposits Online
• Request a Demand Draft
• Pay Bills
• Order a Cheque Book
• Request Stop Payment on a Cheque

Guru Nanak Institute of Management & Technology, Ludhiana 38


Eligibility:-

All you need to access Net Banking if you have a saving or current or fixed deposit
account. Financial transactions can be made by saving account holder (with either or
survivor mandate), individual current account holder and sole proprietorship account
holder.
Now you can also download the form from the website or contact your nearest
branch.
ADVANTAGES OF NET BANKING:
i. Real-time, online banking: Net Banking is anytime, anywhere, real time, on
line banking. Real time means instant up to the second account transactions
displayed on the Internet. HDFC Bank is among the first in INDIA to enable
such high tech connectivity.
ii. Security: Net Banking uses 128-bit encryption Secure Socket Layer (SSL)
technology, one of the most secure forms of transaction and the highest level
of security commercially available on the internet.
iii. Up-to-the-second account balance/ statement inquiry:
iv. Request for a new fixed deposit: Make a Fixed Deposit inquiry or even
make a TDS inquiry on your Fixed Deposits.
v. Request for a cheque book: Enquire about the status of a cheque issued or
stop cheque payment request in an emergency.
vi. Request for Demand Draft/banker’s Cheque: They will be delivered to
your mailing address.
vii. Free Online Third Party Transfer Facility: Instantly transfer funds
between your accounts and to a third party that have an account with the
bank.
viii. Demat on NET: It help you view your Demand Account, account holdings,
transactions in the account company-wise, and get details regarding pay-in,
pay-out dates, etc.
ix. Funds Transfer: Net Banking makes it easy to transfer funds between any of
your accounts, even if they are in different branches/cities.

Guru Nanak Institute of Management & Technology, Ludhiana 39


MOBILE BANKING

Your Mobile is now your bank! Now access your bank account and conduct a host of
banking transactions and inquiries through your mobile, with our unique Mobile
Banking service. Mobile banking is a service by which an account holder can do banking
any time from anywhere in the world through Mobile phone. Now one can carry out
banking transaction on the screen of the mobile phone. Your mobile phone screen serves
as a window to your bank account through SMS facility. The service is available to all
customers who maintain saving accounts, current accounts, and overdraft account.

Eligibility:

If you are an account holder of HDFC BANK as well as subscriber of any of the mobile
phone service provider tied up with HDFC BANK, you can take advantage of this
facility. Check whether operator is part of our network. One document is all it takes to
apply. If you are opening an account with the bank, you can apply for MOBILE
BANKING through the Account Opening Document. If you already have account with
the bank, you can apply for Mobile banking through the Combined Direct Banking
Channels Application From.

Advantages of Mobile Banking:

i. Get your balance details.


ii. Obtain your last 3 transaction details.
iii. Request a cheque book.

Guru Nanak Institute of Management & Technology, Ludhiana 40


iv. Stop a cheque payment.
v. Enquire cheque status.
vi. Request an account statement.
vii. Get fixed deposit details.
viii. Pay your bills

Mobile Banking works through a set of text messages (SMS). With SMS you can
perform a wide range of query-based transactions from your mobile phone, without even
making a call. All you need to do is to type in the specified code for the transaction as a
text message and send it to 676712.

Guru Nanak Institute of Management & Technology, Ludhiana 41


PHONE BANKING

When you dial in to Phone Banking, a voice prompt will guide you through the various
transactions. You may also talk to a Phone Banker, who will provide you with the
required assistance.

With HDFC Bank’s Phone Banking, your bank account is now just a phone call away.
Now one can bank from home or anywhere through a phone using 24 hrs automated
service by HDFC bank. The interactive voice response (IVR) facility will enable the
customer to get a variety of services, round the clock through a telephone call from home,
office, telephone booth etc. using phone banking you can get up-to-date details of your
saving or current account or fixed deposits. You can have the details of the first five
transactions. You can carry out all your transactions, from checking your account balance
to ordering a new cheque book to stopping a cheque payment. You can request for
demand drafts/funds transfer, open a fixed deposit account, and even pay your electricity,
telephone and cell phone bills using the Bill Pay facility. So now, whenever you need to
conduct any of your transactions, just give us a call. Phone banking is available round the
clock, everyday, in Mumbai, Delhi, Chennai, Kolkatta, Bangalore, Hyderabad,
Ahemdabad, Chandigarh and Ludhiana .

Eligibility:-

1. All saving account holder other than minors.


2. All individuals & corporate current account holders.

Guru Nanak Institute of Management & Technology, Ludhiana 42


3. Sole proprietors.

Advantage of Phone Banking:

i. Check your account balance - Get up-to-the-second details of your Savings


or Current Accounts and your Fixed Deposits. You can also get the details of
the last 9 transactions on your account, or have a mini statement faxed across
to you.
ii. Security: When you use the Phone Banking facilities, your transactions are
completely secure. When you open an account with us, you are given a unique
Telephone Identification Number (TIN), which is completely confidential.
iii. Chose your language: You can choose between English and Hindi for
guidance through the Interactive Voice Response (IVR) menu of services, at
the time of calling the bank.
iv. Account details/balance enquiry: - Get up-to-the-second details of your
saving or current accounts and your Fixed Deposits. Get details of the last five
transactions (on the IVR), which would be read out to you at the touch of a
button. What’s more, you can even have a mini account statement of the last
10 transactions faxed to you.
v. Cheque status inquiries: You can use Phone Banking to check on the status
of cheques issued or deposited.
vi. Cheque book/account statement requests: Register a request for a new
cheque book using Phone Banking. It will be couriered within 3 working days.
You can request for statement of accounts for the current period through the
IVR and the same will be mailed to you on the next working day.
vii. Stop Payment - Stop payment of a single cheque or a series of cheques, 24
hours a day.
viii. Loan Related queries - Get details of the outstanding loan amount, enquire
about your loan account, request for an interest certificate and repayment
schedule, etc. Just call Phone Banking in your city and dial 4 to speak to our
Phone Banker.

Guru Nanak Institute of Management & Technology, Ludhiana 43


ix. Open a Fixed deposit or Enquire on your Fixed deposits / TDS*# - Talk to
our Phone Banker to easily open a Fixed Deposit over the phone, by simply
authorizing a transfer of funds from your Savings Account.
x. Transfer Funds between accounts*# - You can also transfer money from
one of your accounts to another. Both accounts must be linked to your
Customer ID. You can transfer amounts up to Rs 1 Lac in a single day.
xi. Pay your bills - Pay your cellular, telephone, electricity and HDFC Bank
Credit Card bills through Phone Banking using Bill Pay, a comprehensive bill
payments solution. Know more about Bill Pay.
xii. Report loss of your ATM / Debit Card / Forex Plus Card - If your ATM /
Debit / Forex Plus Card is lost, call any Phone Banking number to deactivate
your card.
xiii. Learn about all our other products - Get details on HDFC Bank products &
services by talking to our Phone Banker.
xiv. Enquire about latest Interest / Exchange rates - Get latest Interest rates on
Deposits and Foreign Exchange rates by talking to our Phone Banker.
xv. Request a Demand Draft / Manager's Cheque - Call Phone Banking and
get a Demand Draft / Manager's Cheque delivered to your doorstep.

Guru Nanak Institute of Management & Technology, Ludhiana 44


INSTA ALERTS

You can get regular updates of your bank account on your mobile phone or email ID.
Just register for our Insta Alert service and receive updates on your account as and when
the select transaction happens - all this without visiting the branch or ATM!
You can register for any or all of the following alerts:
• Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs.
50,000
• Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs.
50,000
• Account Balance below Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000-
• Weekly account balance
• Salary Credits
• Utility bill payment due Alert.

Bill Pay

In Mumbai this facility enables you to pay all your BPL Mobile, Max Touch BSES and
MSEB bills, over the phone as well as through ATMs. In Delhi, you can pay your Airtel
Bills and in Chennai you can pay your PRG and Airtel bills through this facility, shortly
you will also be able to pay your BEST bills in Mumbai and Delhi. So you won’t have to
spend time is long queues or writing cheques.

Guru Nanak Institute of Management & Technology, Ludhiana 45


PREFEERED BANKING

How you would like a banker dedicated to take care of all your banking requirements and
suggesting ways to invest your money with good returns from time to time? If you're a
seasoned professional or have been running a successful business over the years, the
HDFC Bank Preferred Programme is meant for you.

As a valued customer you benefit from our Relationship Pricing Programme with
exclusive offers such as a free Gold International Debit card, a free International
Titanium card or a free International Gold Credit Card, loans at preferential rates, etc.

Features & Benefits:

 Dedicated Relationship Manager


 Customized Investment Solutions
 Investment Options
 Wealth Management Program
 E-Broking
 Expedite Tax Payments
 Relationship Pricing
 Business Solutions
 On-demand exclusive privileges

Guru Nanak Institute of Management & Technology, Ludhiana 46


 Annual Service Charge Waiver
LOANS

A dream vacation?

Son's admission to a medical college?

Daughter's wedding?

Whatever the occasion, our range of Personal Loans can help. The procedure is simple,
documentation is minimal and approval is quick.

Features & Benefits

 Borrow up to Rs 10,00,000 for any purpose depending on your


requirements.
 Flexible Repayment options, ranging from 12 to 48 months.
 Repay with easy EMIs.
 One of the lowest interest rates.
 Hassle free loans - No guarantor/security/collateral required.
 Speedy loan approval.
 Convenience of service at your doorstep.
 Customer privileges
o If you are an HDFC Bank account holder, we have special rates
for you.
o If you are an existing Auto Loan customer with a clear repayment
of 12 months or more from any of our approved financiers or us,
you can get a hassle free personal loan (without income
documentation).

Guru Nanak Institute of Management & Technology, Ludhiana 47


o If you are an existing HDFC Bank Personal Loan customer with
a clear repayment of 12 months or more, we can Top-Up your
personal loan.

HOME LOANS

A two-bed apartment?
The sea-facing penthouse?
Or just the right piece of land to build your dream house?

HDFC Bank brings HDFC home loans to your doorstep. With over 25 years of
experience, a dedicated team of experts and a complete package to meet all your housing
finance needs, HDFC Home Loans, helps you realize your dream.

Features & Benefits:


• Home Loan - We offer home loans for individuals to purchase (fresh / resale) or
construct houses. Home loans can be applied for individually or jointly. HDFC
finances up to 85% maximum of the cost of the property (Agreement value +
Stamp duty + Registration charges).
• Home Improvement Loan - HIL facilitates internal and external repairs and
other structural improvements like painting, waterproofing, plumbing and electric
works, tiling and flooring, grills and aluminum windows. HDFC finances up to
85% of the cost of renovation (100% for existing customers).
• Home Extension Loan - HEL facilitates the extension of an existing dwelling
unit. All the terms are the same as applicable to Home Loan.

Guru Nanak Institute of Management & Technology, Ludhiana 48


• Land Purchase Loan - Be it land for a dream house, or just an investment for the
future, HDFC Land Purchase Loan is a convenient loan facility to purchase land.
HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment
of the loan can be done over a maximum period of 10 years.
• Choose from Fixed Rate or Floating Rate with options to structure your loan as
Partly Fixed or Partly Floating.
• Flexible repayment options to suit your individual needs.
• Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company
Ltd. offers an insurance plan*, which is designed to ensure that life's uncertainties
do not affect your family's interests and your precious home. LCTAP provides a
lump-sum payment on the unfortunate demise of the life assured.
• Automated Repayment of Home loan EMI - You can give us standing
instructions to repay your Home Loan EMIs directly from your HDFC Bank
Savings Account, thus, saving you the trouble of procuring, signing and tracking
post-dated cheques.
• We also offer In-house scrutiny of Property documents for your complete
peace of mind.
• Customer privileges - If you are an existing HDFC Bank Home Loan customer,
you can avail of other loans (such as Personal Loans, Car Loans, Two-wheeler
Loans and Loan against securities) at lower interest rates.

Guru Nanak Institute of Management & Technology, Ludhiana 49


Guru Nanak Institute of Management & Technology, Ludhiana 50
TWO WHEELER LOANS

180 CC? Or maybe a 500 CC?

Whichever the bike, our Two Wheeler loan is the answer. With quick approvals, flexible
payment options and easy repayment - we'll help you buy the bike you desire.
Features & Benefits:

o Flexible repayment options, ranging from 12 to 48 months available even


at the point of purchase.
o Repay through post-dated cheques with easy EMIs. Calculate your EMI.
o Hassle free loans - No guarantor required.
o Speedy loan approval.
o Available for almost all models at attractive interest rates.
o Free gifts from time to time on approval of your Two Wheeler Loan.
(Watch this space for more details on the free gift promotion).
o Special Schemes to suit your needs
Fast Track - If a spot approval is what you need, this highly flexible scheme gets you a
loan of up to 70% with minimum interest rates.
Easy Loan - This great scheme gets you a loan of up to 85% with minimal
documentation. All you need as a Surrogate Income proof is:

-A copy of credit card and credit card billing statement for the last 2 months
OR
- A repayment track record
OR
- Last 3 months bank statements.

Guru Nanak Institute of Management & Technology, Ludhiana 51


NEW CAR LOANS

Small car?
Family car?
or sheer luxury on wheels?
Just decide on the make & model, and our New Car Loan will bring it to your driveway
in no time.
Features & Benefits:
 Covers the widest range of cars and multi-utility vehicles in India.
 Avail 100% finance on your favourite car
 Flexible repayment options, ranging from 12 to 84 months.
 Borrow up to 3 times your annual salary (for salaried professionals) and 6 times
your annual income (for self employed professionals)
 Speedy processing - within 48 hours.
 Repay with easy EMIs.
 Attractive car loan plans - To Fastrack your loan, just choose the plan that is
right for you.
 Attractive Interest rates
 Hassle-free documentation.
 Customer Privileges
• If you are an HDFC Bank account holder, we have special rates for you.
• If you have had a Preferred Account or a Corporate Salary Account with
HDFC Bank for more than six months, you can get fast approvals on your
loans with minimal documentation.

Guru Nanak Institute of Management & Technology, Ludhiana 52


 If you are an existing HDFC Bank Car Loan customer with a clear repayment of
12 months or more we can Top-Up your car loan to the extent of the original
loan value.

LOAN AGAINST SECURITIES

 Get liquidity from your investments, without you having to sell them.
With HDFC Bank's Loan against Securities, you can get an overdraft against
your securities like Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC
Policies, NSC, KVP, UTI Bonds (6.60% ARS & US64 Bonds) and Gold Deposit
Certificates, while still retaining ownership. And the best part is that you can
continue to enjoy all your shareholder benefits such as rights, dividends and
bonuses.
Loan available to NRI's against Shares, Mutual Funds, US64 Bonds, UTI 6.60%
ARS Bonds.

Features & Benefits:

 Overdraft facility can be availed against pledge of:

 Equity Shares* - Demat Shares up to 50% of the value.

 Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset Value). See
approved Mutual Fund Schemes.

 GOI Relief Bonds

Guru Nanak Institute of Management & Technology, Ludhiana 53


 LIC Policies

 National Savings Certificate(NSC),

 Kisan Vikas Patra(KVP)

 UTI Bonds(6.60% ARS Bonds & US64 Bonds)


The contribution of single scrip should not exceed 65% of the total portfolio value at
any point of time during the tenure of the account.
 Single Scrip Lending - Lending up to 50% of the value with any Depository
Participant. (please contact us to know the drawing power of the scrips)
 Minimum loan amount: Rs. 50,000/-, Maximum loan amount: Rs. 10 Lakhs
 e-Instant Loans: Online eligibility approval in 60 seconds and loan disbursement
in 72 hours. Preferential rate of interest for online applications.
 Pay interest only on the amount outstanding and only for the time you use it.
 Interest is calculated on the daily outstanding balance and debited to your account
every month end.
 Shares can be pledged from any Depository (NSDL or CDSL) and any Depository
Participant across the country.
 For availing the overdraft facility, the securities need not necessarily be in your
name.
 To receive the overdraft amount, a Current Account with an overdraft limit is
created in your name. This entitles you to all the Current Account benefits like
FREE International Debit Card, FREE Phone Banking, FREE Net Banking.
 Special Benefits : If you have a Loan against securities from any other
bank, simply transfer the loan to us at preferential interest rate.

Guru Nanak Institute of Management & Technology, Ludhiana 54


Guru Nanak Institute of Management & Technology, Ludhiana 55
LOAN AGAINST PROPERTY

Need large amounts of cash?


Have some property to your name?
Would like to leverage your property without giving it on rent or selling it?

HDFC Bank brings to you Loan Against Property (LAP). You can now take a loan
against your residential or commercial property, to expand your business, plan a
dream wedding, fund your child's education and much more.
You can depend on us to meet all your business requirements even to purchase a new
shop or office for your business. Loan to purchase Commercial Property (LCP) is a
specially designed product to help you expand your business without reducing the
capital from your business.
Features & Benefits:
 Loans from Rs. 2 Lacs onwards depending on your needs.
 Borrow up to 60% of market value of the property.
 Flexibility to choose between an EMI based loan or an Overdraft - We
also offer to you overdraft against your self-occupied residential or
commercial property and you save money by paying interest only on the
amount utilized!
 High tenure loans for ease of repayment.
 Attractive interest rates.
 Simple and speedy processing.

Guru Nanak Institute of Management & Technology, Ludhiana 56


 Specially designed products for Self Employed.

FOREX AND TRADE SERVICES

Are you a frequent flyer for business or often holiday abroad?


Are you an importer/exporter of foreign and Indian goods?
If you need to deal in foreign currency and keep tabs on exchange rates every now and
then, transfer monies to India, make payments etc., HDFC Bank has a range of products
and services that you can choose from to transact smoothly, efficiently and in a timely
manner.
We offer the following Foreign Exchange Products and Services.
Foreign Exchange and Trade Services
The following are different methods of transacting in Foreign Exchange and remitting
money.

• Travellers Cheques
• Foreign Currency Cash
• Foreign Currency Drafts
• Cheque Deposits
• Remittances
• Cash to Master
• Trade Services
• Forex Services Branch Locator

Guru Nanak Institute of Management & Technology, Ludhiana 57


Milestones In The History

HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, they are proud to say that they are well
on our way towards that goal. It is extremely gratifying that their efforts towards
providing customer convenience have been appreciated both nationally and
internationally. • 2007 Business Today-Monitor Group survey Financial Express-Ernst &
Young Award One of India's "Most Innovative Companies". Best Bank Award in the
Private Sector category. ‘Employer Brand of the Year 20072008’-Award- First Runner-
up. ‘Best Bank Award’. ‘Corporate Best Bank’-Award.

Global HR Excellence Awards - Asia Pacific HRM Congress: Business Today Dun &
Bradstreet – American Express Corporate Best Bank Award 2007 The Bombay Stock
Exchange and Nasscom ‘Best Corporate Social Responsibility Foundation's Business for
Social Practice’ Award. Responsibility Awards 2007 Outlook Money & NDTV Profit
Best Bank Award in the Private sector category. The Asian Banker Excellence in Retail
Best Retail Bank in India. Financial Services Awards Asian Banker Managing Director
Aditya Puri won the Leadership achievement Award for India. • 2006 Business Today
Forbes Magazine Business world The Asset Magazine's Triple A Country Awards
Asiamoney Awards Euromoney Awards

Best Bank in India. One of Asia Pacific's Best 50 companies. Best listed Bank of India.
Best Domestic Bank. Best Local Cash Management Bank in Large and Medium
segments. "Best Bank" in India.

Guru Nanak Institute of Management & Technology, Ludhiana 58


2005 Asiamoney Awards Asiamoney Awards The Asian Banker Excellence Hong Kong-
based Finance Asia magazine Economic Times Awards The Asset Triple A Country
Awards The Business Today-KPMG Survey The Business Today-KPMG Survey
Economic Times - Avaya Global Connect Customer Responsiveness Awards

Best Domestic Commercial Bank Best Cash Management Bank - India . Retail Banking
Risk Management Award in India. Best Bank in India "Company of the Year" Award for
Corporate Excellence. Best Domestic Bank in India Region 2005 Best Local Cash
Management Bank in India US$11-100m - 2005 "Best Bank in India" for the third
consecutive year in 2005. "Most Customer Responsive Company Banking and Financial
Services - 2005

2004 Asiamoney Awards Asiamoney Awards Asiamoney Awards Asiamoney Awards


Asiamoney Awards Business World Forbes Global

Asian Banker Awards The Asset Triple A Country Awards

Best Local Cash Management Bank in India US$11-100m Best Local Cash Management
Bank in India >US$501m Best Local Cash Management Bank in India 1989-2004 (poll
of polls) Best Overall Domestic Trade Finance Services in India - 2004 Most Improved
company for Best Management Practices in India - 2004 One of India's Most Respected
Companies - 2004 Best Under a Billion, 100 Best Smaller Size Enterprises in
Asia/Pacific and Europe - 2004 Operational Excellence in Retail Financial Services -
2004 Best Domestic Bank in India - 2004

2003 Forbes Global The Asset Triple A Country Awards BusinessWorld - The Business
World Most Respected Company Awards The Asset magazine The Asset magazine FE-
Ernst & Young Best Banks Survey Outlook Money Business Today NASSCOM &
economictimes.com - IT Users Awards

Guru Nanak Institute of Management & Technology, Ludhiana 59


Best Under a Billion, 200 Best Small Companies - 2003 Best Domestic Bank in India
-2003 One of India's Most Respected Companies Best Cash Management Bank Best
Trade Finance Bank Best New Private Sector Bank - 2003 Best Bank in the Private
Sector – 2003 Best Bank in India -2003 Best IT User in Banking -2003

2002 Hong Kong-based Finance Asia magazine Hong Kong-based Finance Asia
magazine Euromoney magazine Asiamoney magazine 2001 Hong Kong-based Finance
Asia magazine Hong Kong-based Finance Asia magazine Euromoney magazine Forbes
Global

Best Local Bank - India "Best Local Bank - India" "Best Bank in India Commercial Bank
in India 2002

Best Domestic Commercial Bank - India "Best Domestic Commercial Bank India "Best
Bank in India Named in The 300 Best Small Companies one of the "20 for 2001" best
FE-E&Y Best Banks small companies Awards for Corporate Excellence as the Emerging
Company of the Year

2000 Hong Kong-based Finance Asia magazine

Best Domestic Commercial Bank - India

Guru Nanak Institute of Management & Technology, Ludhiana 60


Hong Kong-based Finance Asia magazine Euromoney magazine Business India Forbes
Global

"Best Domestic Commercial Bank India Best Domestic Bank " India 's Best Bank"
Named in The 300 Best Small Companies one of the "20 for 2001" best FE-E&Y Best
Banks small companies

Merger
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29 The
Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of
Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a
share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion
Bank of Punjab. The combined entity would have a nationwide network of 1,148
branches (the largest amongst private sector Banks) a strong deposit base of around Rs.
1,200 billion and net advances of around Rs. 850billion. The balance sheet size of the
combined entity would be over Rs. 1,500 billion. Commenting on the proposed merger,
Mr. Deepak Parekh, Chairman, HDFC said, “We were amongst the first to get a banking
license, the first to do a merger in the private sector with Times Bank in 1999, and now if
this deal happens, it would be the largest merger in the private sector banking space in
India. HDFC Bank was looking for an appropriate merger opportunity that would add
scale, geography and experienced staff to its franchise. This opportunity arose and we
thought it is an attractive route to supplement HDFC Bank’s organic growth. We believe
that Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent
and approach to business.” Mr. Aditya Puri, Managing Director, HDFC Bank said,
“These are exciting times for the Indian banking industry. The proposed merger will
position the combined entity to significantly exploit opportunities in a market globally
recognized as one of the fastest growing. I’m particularly bullish about the potential of
business synergies and cultural fit between the two organizations. The combined entity
will be an even greater force in the market.” Mr. Rana Talwar, Chairman, Centurion
Bank of Punjab stated, “Over the last few years, Centurion Bank of Punjab has set

Guru Nanak Institute of Management & Technology, Ludhiana 61


benchmarks for growth. The bank today has a large nationwide network, an extremely
valuable franchise, 7,500 talented employees, and strong leadership positions in the
market place. I believe that the merger with HDFC Bank will create a world class bank in
quality and scale and will set the stage to compete with banks both locally as well on a
global level.”

Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said,
“We are extremely pleased to receive the go ahead from our board to pursue this
opportunity. A merger between the banks provides significant synergies to the combined
entity. The proposed merger would further improve the franchise and customer
proposition offered by the individual banks.”

Quality Policy
SECURITY: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products. TRUST: The bank appreciates
the trust placed by their policy holders in the bank. Hence, it will aim to manage their
investments very carefully and live up to this trust. INNOVATION: Recognizing the
different needs of our customers, the bank offers a range of innovative products to meet
these needs. INTEGRITY CUSTOMER CENTRIC PEOPLE CARE “ONE FOR ALL
AND ALL FOR ONE” TEAM WORK JOY AND SIMPLICITY

Guru Nanak Institute of Management & Technology, Ludhiana 62


CHAPTER – 2
OBJECTIVES & SCOPE OF THE STUDY

PROBLEM DEFINITION:
Sales Executives were with good background human being and through rigorous process
of recruitment but still not able to perform up to the expectation level of company, HR is
not able to sort out the problem why the performance is not coming even after giving the
full marketing support. The communication technique and dealing with the customers is
also a problem to the sales executives.

OBJECTIVES OF THE STUDY


Primary objectives:
• To open new savings accounts by convincing customers and to promote the benefits of
those which are provided by the bank.
• To find the different way of convincing customers.
• To study brand image of the bank.
• To increase the business of the bank.

Secondary objectives:
• To determine the need and purpose of a sales executive.
• To understand the deciding criteria for people to become sales executive.
• To offer suggestions based upon the findings.

Guru Nanak Institute of Management & Technology, Ludhiana 63


Geographical scope:
The same problem was with the all other branches of HDFC Bank even out of the
Ludhiana city. The management is conducting the same research on a big ground while
my contribution is tiny. Though my sample size and geographical area was defined and
confine to a particular territory but the application of out put from the research are going
to be wide.

Product Scope:
Studying the increasing business scope of the bank. Market segmentation to find the
potential customers for the bank. To study how the various products are positioned in the
market. Corporate marketing of products. Customers’ perception on the various products
of the bank.

Guru Nanak Institute of Management & Technology, Ludhiana 64


CHAPTER – 3
RESEARCH METHODOLOGY

All the findings and conclusions obtained are based on the survey done in the working
area within the time limit. I tried to select the sample representative of the whole group
during my job training. I have collected data from people linked with different profession
at Ludhiana.
Research Plan:
1. Preliminary Investigation: In which data on the situation surrounding the problems
shall be gathered to arrive at the correct definition of the problem. An understanding of
its environment.
2. Exploratory Study: To determine the approximate area where the problem lies.

Research Design:
Research was initiated by examining the secondary data to gain insight into the problem.
By analyzing the secondary data, the study aim is to explore the short comings of the
present system and primary data will help to validate the analysis of secondary data
besides on unrevealing the areas which calls for improvement.

Developing The Research Plan:


The data for this research project has been collected through self Administration. Due to
time limitation and other constraints direct personal interview method is used. A
structured questionnaire was framed as it is less time consuming, generates specific and
to the point information, easier to tabulate and interpret. Moreover respondents prefer to
give direct answers. In questionnaires open ended and closed ended, both the types of
questions has been used.

Collection of data:
1. Primary data: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.

Guru Nanak Institute of Management & Technology, Ludhiana 65


2. Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, news papers, magazines, management books,
preserved information in the company’s database and website of the company.

Sampling Plan:
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.

Sampling Units:
Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man,
Professionals and House Wives of Ludhiana .

Sample Technique:
Random Sampling.

Research Instrument:
Structured Questionnaire.

Contact Method:
Personal Interview.

Sample Size:
My sample size for this project was 60 respondents. Since it was not possible to cover the
whole universe in the available time period, it was necessary for me to take a sample size
of 60 respondents.

Data Collection Instrument Development:


The mode of collection of data will be based on Survey Method and Field Activity.
Primary data collection will base on personal interview. I have prepared the questionnaire
according to the necessity of the data to be collected.

Guru Nanak Institute of Management & Technology, Ludhiana 66


CHAPTER-4
DATA ANALYSIS & INTERPRETATION
Q1. Your Age?

Options Respondents Percentage


18 to 23 years 12 20%
24 to 29 years 21 35%
30 to 35 years 18 30%
35 to above years 9 15%
Total 60 100%

35toabove
years
15% 18to23years
20%

30to35years
30% 27to29years
35%

Interpretation
From the table and graph above it can be seen that
20% respondent’s age are 18 to 23 years.
35% respondent’s age are 27 to 29 years.
30% respondent’s age are 30 to 35 years.
15% respondent’s age are 35 to above years.

Guru Nanak Institute of Management & Technology, Ludhiana 67


Q2. Marital Status ?

Options Respondents Percentage


Married 42 70%
Unmarried 18 30%
Total 60 100&

Unmarried
30%

Married
70%

Interpretation
From the table and graph above it can be seen that
70% respondents are married.
30% respondents are unmarried.

Guru Nanak Institute of Management & Technology, Ludhiana 68


Q3. Educational Qualification?

Options Respondents Percentage


Under Graduate 15 25%
Graduate 24 40%
Post Graduate 21 35%
Total 60 100

Post Graduate Under


35% Graduate
25%

Graduate
40%

Interpretation
Interpretation From the table and graph above it can be seen that • •
25% respondents are Under graduate.
40% respondents are Graduate.
35% respondents are Post graduate.

Guru Nanak Institute of Management & Technology, Ludhiana 69


Q4. Your Occupation?

Options Respondents Percentage


Business 12 20%
Professional 16 26.67%
Service 32 53.33%
Total 60 100%

Business
20%
Service
53%
Professional
27%

Interpretation
From the table and graph above it can be seen that
20% respondents Occupation is Business.
27% respondents Occupation is Profession.
53% respondents Occupation is Service.

Guru Nanak Institute of Management & Technology, Ludhiana 70


Q5. Do you have Bank Account?

Options Respondents Percentage


Yes 46 76.67%
No 14 23.33%
Total 60 100

No
23%

Yes
77%

Interpretation
As the research is convenience sampling and related to respondents who are availing
services of banks so only those customers were targeted who were having bank accounts
and using banking services. 77% were having their bank accounts.

Guru Nanak Institute of Management & Technology, Ludhiana 71


Q6. What is your perception about different products/services provided by HDFC
bank?

Options Respondents Percentage


Lucratrive 15 25%
Not Lucratrive 36 60%
No Idea 9 15%
Total 60 100%

No Idea
15%
Lucrative
25%

Not Lucrative
60%

Interpretation
From the table and graph above it can be seen that
25% respondent’s perception about different products is lucrative.
60% respondent’s perception about different products is not lucrative.
15% respondent’s have no idea.

Guru Nanak Institute of Management & Technology, Ludhiana 72


Q7. Do you want to open an account with HDFC bank?
Options Respondents Percentage
Yes 21 35%
No 30 50%
Will tell you Later 9 15%
Total 60 100%

Will Tell you


later
15%
Yes
35%

No
50%

Interpretation
From the table and graph above it can be seen that
50% respondents are not interested to open an account with the bank. 35% respondents
are interested to open an account with the bank. 15% of the respondents say that they will
tell later.

Guru Nanak Institute of Management & Technology, Ludhiana 73


Q8. Do you have all the documents which are required to open an account?

Options Respondents Percentage


Yes 36 60%
No 24 40%
Total 60 100%

40%
Yes
No
60%

Interpretation
From the table and graph above it can be seen that
60% respondents have all the documents which are required to open an account with the
bank. 40% respondents do not have all the documents which are required to open an
account with the bank

Guru Nanak Institute of Management & Technology, Ludhiana 74


Q9. Are you aware that the bank provides you a free Demat account if you open a
new savings account with HDFC bank?

Options Respondents Percentage


Yes 12 20%
No 39 65%
Can’t Say 9 15%
Total 60 100%

15% 20%

Yes
No
Can't Say

65%

Interpretation
From the table and graph above it can be seen that
20% respondents are aware that the bank provides a free Demat account with new
savings account. 65% respondents are not aware of it. And 15% were not able to say
anything.

Guru Nanak Institute of Management & Technology, Ludhiana 75


Q10.Are you aware of different terms and conditions which are very much essential
to maintain an account at HDFC Bank?

Options Respondents Percentage


Yes 18 30%
No 42 70%
Total 60 100%

Yes
30%

No
70%

Interpretation
From the table and graph above it can be seen that
30% respondents are familiar with different terms and conditions which are very much
essential to maintain account with the bank. 70% respondents have no idea about it.

Q11. Do you think HDFC Interest rates are higher than as compared to the other banks?

Guru Nanak Institute of Management & Technology, Ludhiana 76


Options Respondents Percentage
Yes 48 80%
No 9 15%
Can’t Say 3 5%
Total 60 100%

Can't Say
5%

No
15%

Yes
80%

Interpretation
From the table and graph above it can be seen that
80% respondents are thinking that HDFC Bank’s Interest rate is higher than as compared
other banks. 15% respondents say that HDFC Bank’s Interest rate is low. And 5% were
not able to say anything on this.

Guru Nanak Institute of Management & Technology, Ludhiana 77


Q12. What was the source of Information about various Saving schemes?

Options Respondents Percentage


Television 8 13.3%
Radio 6 10%
Newspaper 7 11.7%
Word of mouth 31 51.7%
Other Sources 8 13.3%
Total 60 100%

13%
13%
Television
10%
Radio
Newspaper
12% Word of Mouth
Other Source
52%

Interpretation
From the table and graph above it can be seen that
Most of the customers influenced by word of mouth which has a share of 52% & 13% are
influenced by other sources like pamphlets, Hording etc. And Newspaper is also one of
the source of influence, which influences 12%. Radio influences 10%.

Guru Nanak Institute of Management & Technology, Ludhiana 78


CHAPTER – 5
SUGGESTIONS

Suggestions:

Finally some recommendations for the company are as fallows:-


• To make people aware about the benefit of becoming HDFC Bank’s Sales Executive,
following activities of advertisement should be done through
1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information. .
5. The bank should provide life time valid ATM card to all its customers.

Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so
that people who are not financially strong enough can maintain their account properly

• The company should provide a pass book to all its customers


• Make people understand about the various benefits of its products.
• Company should organize the program in the society, so that people will be aware about
the company and different products of the bank
• Company should open more branches in different cities.

Guru Nanak Institute of Management & Technology, Ludhiana 79


CHAPTER – 6
CONCLUSION

Conclusion

HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank
already has good number of employees on board and is recruiting Sales Executives
heavily to take the headcount to many more. It is on the brim of increasing its customers
through its attractive schemes and offer.

The project opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to open an account so
that new Business Opportunities of the bank can be explored. Through this project, it
could be concluded that people are not much aware about the various products of the
bank and many of them not interested to open an account at all.

services was considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate, the demand for
banking sector is increasing day by day.

According to my findings Company’s promotional activities for recruiting sales


executives are also very less.

So, at last the conclusion is that there is tough competition ahead for the company from
its major competitors in the banking sector. Last but not the least I would like to thank
HDFC Bank for giving me an opportunity to work in the field of Marketing. I hope the
company finds my analysis relevant.

Guru Nanak Institute of Management & Technology, Ludhiana 80


CHAPTER- 7
LIMITATIONS OF THE STUDY

Limitations
Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are:-

• The project was constrained by time limit of two months. Mindset of people may very
depending upon their age, gender, income etc.
• Getting appointment from the concern person was very difficult.
• People mind set about the survey was an obstacle in acquiring complete.
• Respondents were very busy in their schedule.
• So it was very time consuming for information & positive interaction. them to answer all
the questions properly.

Guru Nanak Institute of Management & Technology, Ludhiana 81


BIBLIOGRAPHY

Books
• Marketing Management (10 Edition), Philip Kotler
• Marketing Management (3rd Edition), V.S. Ramaswamy
• Research Methodology (2nd Edition), C.R. Kothari
• Research Methodology, By S.P. Kasande

Websites
• www.hdfcbank.com
• www.google.com

Guru Nanak Institute of Management & Technology, Ludhiana 82


ANNEXURE
QUESTIONNAIRE

Dear Sir/Madam,
Name:

I am a student of Guru Nanak Institute of Management and Technology, Ludhiana and


presently doing a project on “OPENING SAVINGS ACCOUNT BY MEETING
CUSTOMERS”. I request you to kindly fill the questionnaire below and I assure you that
the data generated shall be kept confidential. .

1. Your Age: ____________________


2. Education Qualification.
a). Undergraduate Graduate 

b). Graduate 
c). Post Graduate 

3. Marital Status. a) Married  b) Single 

4. Occupation
a). Business  b) Profession 
c). Service 

5. What is your perception about different products and services offered by HDFC Bank?
a). Lucrative  b). Not lucrative 
c). No idea 

6. Do you want to open an savings account with HDFC Bank?


a). Yes  b). No 
c). Will tell later 

Guru Nanak Institute of Management & Technology, Ludhiana 83


7. Do you have all the documents which are required to open an account?
a). Yes  b). No 

8. Are you aware of that HDFC Bank provide you a free Demat account if you open a new
savings account with the bank?
a). Yes  b). No 

9. Are you aware of different terms and conditions which are very much essential to
maintain an account at HDFC Bank?
a). Yes  b). No 

10. Do you think HDFC Interest rates are higher than as compared to the other banks?
a). Yes  b). No 

12. What was the source of Information about various Saving schemes?
a). Television  b). Radio 
c). Newspaper  d). Word of mouth 
e). Other sources 

Date:
Place:

Signature

Thank You

Guru Nanak Institute of Management & Technology, Ludhiana 84


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