Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Training Undertaken at
Declaration
I hereby declare that the work which is being presented in the project
entitled COMPERATIVE ANALYSIS OF PRODUCTS &
SERVICES OF HDFC BANK WITH ITS COMPETITORS. in
partial fulfillment of requirement of the award for degree of MASTER
OF BUSINESS ADMINISTRATION is an original work carried out by
DEVDUTT RAINA under Supervision of MR.. ABHISHEK KHAJURIA
BRANCH MANAGER HDFC BANK LTD,JAMMU
Dated:
(DEV DUTT RAINA)
M.B.A
ACKNOWLEDGEMENT
I wish to express my gratitude to HDFC BANK for giving me an opportunity to
be a part of their esteemed organization and enhance my knowledge by
granting permission to do summer training project under their guidance.
I am deeply indebted to my guide, Mr. ABHISHEK KHAJURIA, Branch
Manager, HDFC BANK LTD, for his valuable and enlightened guidance. He
provided me with the opportunity to learn in the bank and spared his valuable
time to help me.
My special thanks to Mr. YASHPAL SHARMA, PERSONAL BANKER
AUTHORISER, HDFC BANK LTD, for providing great support and help
whenever was required.
This project has been possible due to the support of several wonderful
individuals. I would like to thank many unknown individuals, with whom I
interacted. All of them with their due cooperation and motivation made the
completion of this project successful. I would like to thank them all.
Last but not the least I am highly obliged to my friends and colleagues for their
help and support. The learning during the project was immense and valuable.
Regards,
DEV DUTT RAINA
CONTENTS
S.NO.
PARTICULARS
1
2
3
4
5
6
CONCLUSION
10
11
APPENDIX
12
BIBLIOGRAPHIES
Executive summary
INTRODUCTION TO
THE INDUSTRY
BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is one of
the main reasons of India's growth process.
HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian Banks
PHASE II - Nationalization of Indian Banks and up to 1991
PHASE III - Indian Financial & Banking Sector Reforms after 1991 .
PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank.
The East India Company established
Bank of Bengal (1809),
Bank of Bombay(1840) and
Bank of Madras (1843)
as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India
was established which started as private shareholders banks, mostly Europeans
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of commercial
banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers
8
for the supervision of banking in India as the Central Banking Authority. During those
days public has lesser confidence in the banks. As an aftermath deposit mobilization
was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven
more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised
to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.
PHASE III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the Foreign Reserves are
high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
10
was created in 1955 to spearhead the expansion of banking into rural India and speed
up the process of magnetization.
Political compulsions brought about nationalization of bank in 1969 and lobbying by
bank employees and their unions added to the list of nationalized banks a few years
later.
Slowly the unions grew in strength, while bank management stagnated. The casualty
was to the customer service declined, complaints increased and bank management
was unable to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision of
the future and the banks erred badly in opposing the technology up gradation of
banks. They mistakenly believed the technology would lead to retrenchment and
eventually the marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets. But
the prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and
capital adequacy ratio become mandatory. The cumulative impact of all these changes
has been on the concept of state ownership in banks. It is increasingly becoming clear
that the state ownership in bank is no longer sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private sector
banks and foreign banks.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
11
INTRODUCTION TO THE
ORGANIZATION
12
COMPANY DESCRIPTION
HDFC BANK LTD.
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. Incorporated in 1994, it is the fifth largest
bank in India as measured by assets. It is the largest private sector bank in India by
market capitalization as of February 2014. The bank was promoted by the Housing
Development Finance Corporation, a premier housing finance company (set up in
1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd
among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks
in the world in terms of their market capitalization
PROMOTER
HDFC is Indias premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well over
a million dwelling units. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, strong
market reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS
HDFC Banks mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the banks risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Banks business philosophy
is based on five core values: Operational Excellence, Customer Focus, Product
Leadership, People and Sustainability.
13
CAPITAL STRUCTURE
As on 31st March, 201n5 the authorized share capital of the Bank is Rs. 550 crore.
The paid-up share capital of the Bank as on the said date is Rs 501,29,90,634/- (
2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the
Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories
(in respect of the bank's American Depository Shares (ADS) and Global Depository
Receipts (GDR) Issues). 32.57 % of the equity is held by Foreign Institutional
Investors (FIIs) and the Bank has 4,41,457 shareholders.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed
on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under
ISIN No US40415F2002.
14
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Banks
distribution network was at 4,014 branches in 2,464 cities. All branches are linked on
an online real-time basis. Customers across India are also serviced through multiple
delivery channels such as Phone Banking, Net Banking, Mobile Banking and SMS
based banking. The Banks 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 centres where the NSE / BSE have a strong and
active member base.
The Bank also has a network of 11,766 ATMs across India. HDFC Banks ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa
Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the banks branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world
class bank. In terms of core banking software, the Corporate Banking business is
supported by Flexcube, while the Retail Banking business by Finware, both from iflex Solutions Ltd. The systems are open, scaleable and web-enabled.
The Bank has prioritised 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.
15
BUSINESS PROFILE
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the
retail side. The bank has three key business segments:
Wholesale Banking
The Banks target market is primarily large, blue-chip manufacturing companies in
the Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agri-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services
with vendor and distributor finance for facilitating superior supply chain management
for its corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector companies. It
is recognised as a leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the banks Treasury team. To comply
with statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns
and market risk on this investment portfolio.
Retail Banking
The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-class
service and delivered to customers through the growing branch network, as well as
through alternative delivery channels like ATMs, Phone Banking, Net Banking and
Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
16
keeping in mind needs of customers who seek distinct financial solutions, information
and advice on various investment avenues. The Bank also has a wide array of retail
loan products including Auto Loans, Loans against marketable securities, Personal
Loans and Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the facility to hold
their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card
as well. The Bank launched its credit card business in late 2001. By March 2015, the
bank had a total card base (debit and credit cards) of over 25 million. The Bank is also
one of the leading players in the merchant acquiring business with over 235,000
Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.
RATINGS / AWARDS
Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. 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 of Rs.4
billion rated by CARE and Fitch Ratings India Private Limited. 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
of the cases referred to above, the ratings awarded were the highest assigned by the
rating agency for those instruments.
17
18
BRANCHES (NOS)
4014
3403
3062
2013
2014
2015
ATMs (Nos.)
11766
11256
10743
2013
2014
2015
2013
59.2
51.4
64.2
2014
2015
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BOARD OF DIRECTORS
PERSON
DESIGNATION
Chairman
Director
Director
Director
Director
Director
Director
Director
Executive Director
Managing Director
Deputy Managing Director
Executive Director
Chief Financial Officer
Executive Vice President (Legal) & Company
Secretary
20
Mr. A Parthasarthy
Mr. Abhay Aima
Mr. Anil Jaggia
Mr. Anil Nath
Mr. Bhavesh Zaveri
Mr. Deepak Maheshwari
Mr. Jimmy Tata
Mr. Navin Puri
Mr. Rahul Bhagat
Mr. Rajender Sehgal
Mr. Rakesh Singh
Mr. v. chakrapani
MISSION
21
BUSINESS STRATEGY
Increasing market share in Indias expanding banking
Delivering high quality customer service
Maintaining current high standards for asset quality through disciplined credit
risk management
Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.
Business focus
HDFC Banks mission is to be a World Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the banks risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance.
HDFC Banks business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.
Distribution network
HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Banks
distribution network was at 4,014 branches in 2,464 cities. All branches are linked on
an online real-time basis. Customers across India are also serviced through multiple
delivery channels such as Phone Banking, Net Banking, Mobile Banking and SMS
based banking. The Banks expansion plans take into account the need to have a
presence in all major industrial and commercial centers, where its corporate customers
are located, as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing / settlement bank to various leading stock
exchanges, the Bank has branches in centers where the NSE / BSE have a strong and
active member base.
The Bank also has a network of 11,766ATMs across India. HDFC Banks ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa
Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.
22
SECURITISATION
Future Activities
DISTRIBUTION
23
Total advances
Rs.365495 crore. An increase of 20.16% compared to the previous year.
Tier I
13.7%
Network
Branches:-4014
ATM:-11766
Cities/towns:-2464
24
BENEFIT OF FIVE S
FIVE S
S-1
SORT
SEIRI
S-2
SYSTEMATIZE
SEITON
S-3
SPIC-N-SPAN
SEIRO
S-4
STANDARDIZE
SEIKETSU
S-5
SUSTAIN
SHITSUKE
1. SORT:
It focus on eliminating unnecessary items from the work place. It is excellent way to
free up valuable floor space. It segregates items as per require and wanted.
2. SYSTEMATIZE:
Systematize is focus on efficient and effective Storage method. That means it identify,
organize and arrange retrieval. It largely focus on good labeling and identification
practices.
Objective: A place for everything and everything in its place.
25
3. SPIC- n - SPAN:
Spic-n-Span focuses on regular clearing and self inspection. It brings in the sense of
ownership.
4. STANDERDIZE:
It focuses on simplification and standardization. It involves standard rules and
policies. It establish checklist to facilitate autonomous maintenance of workplace. It
assigns responsibility for doing various jobs and decides on Five S frequency.
5. SUSTAIN:
It focuses on defining a new status and standard of organized work place. Sustain
means regular training to maintain standards developed under S-4. It brings in selfdiscipline
and
commitment
towards
workplace
organization.
26
HDFC SUBSIDIARIES
HDFC LTD.
HDFC SECURITIES
HDFC MUTUAL FUNDS
HDF REALTY
HDFC ERGO
HDFC PENSION
HDFC FINANCIAL SERVICES
Registered Office
HDFC Bank House,
Senapati Bapat Marg,
Lower Parel,
Mumbai 400 013.
Tel: + 91 22 66521000
Fax: + 91 22 24960737
Website: www.hdfcbank.com
27
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire
spectrum of financial services to customer segments covering Large and MidCorporates, MSME, Agriculture and Retail Businesses.
The Bank has a large footprint of 2402 domestic branches (including extension
counters) and 12,922 ATMs spread across the country as on 31st March 2014. The
overseas operations of the Bank are spread over its seven international offices with
branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre),
Colombo and Shanghai and representative offices at Dubai and Abu Dhabi. During
the year, the Bank has upgraded its representative office in Shanghai, China to a
branch to become the first Indian private sector bank to set up a branch in China.
During the year, the Banks overseas subsidiary namely Axis Bank UK Ltd.
commenced banking operations.
Axis Bank is one of the first new generation private sector banks to have begun
operations in 1994. The Bank was promoted in 1993, jointly by Specified
Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life
Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC),
National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The
shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity
established in 2003.
With a balance sheet size of Rs.3,83,245 crores as on 31st March 2014, Axis Bank
has achieved consistent growth and stable asset quality with a 5 year CAGR (201014) of 21% in Total Assets, 19% in Total Deposits, 23% in Total Advances and 28%
in Net Profit
Vision 2015
To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai
in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad
by Dr. Manmohan Singh, then Finance Minister of India. UTI Bank began its
28
operations in 1994, after the Government of India allowed new private banks to be
established. The Bank was promoted in 1993 jointly by the Administrator of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India Assurance Company, The
Oriental Insurance Corporation and United India Insurance Company.
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the
Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the
RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of
Commerce.
29
ICICI Bank is India's largest private sector bank with total assets of Rs. 6,461.29
billion (US$ 103 billion) at March 31, 2015 and profit after tax Rs. 111.75 billion
(US$ 1,788 million) for the year ended March 31, 2015. ICICI Bank currently has a
network of 4,050 Branches and 12,890 ATM's across India.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government
of India and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.
30
PRODUCT
OF
HDFC BANK
31
Saving accounts.
Current accounts.
Fixed deposits.
Demat account.
Safe deposits lockers.
Savings Accounts
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever persons occupation, bank have
confident that person will find the perfect banking solution. There some saving
accounts like: -
32
Salary Accounts
In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job deposit their
salary in to the salary account a person can get salary.
There are various kinds of saving accounts in the HDFC Bank like: -
33
Current accounts
HDFC Bank Current Account gives the power of inter-city banking with a single
account and access to more than cities. From special cheques that get treated at par
with local ones in any city where branch, faster collection of outstation cheques
(payable at branch locations), free account to account funds transfer between HDFC
Bank accounts to Free inter-city clearing of up to 100 lakhs per month, banks
priority services have become the benchmark for banking efficiency.
Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any
of our 761 branches in 327 cities. Not only that, he can do most of his banking
transactions from the comfort of his office or home without stepping out.
There are various kinds of current account in this bank like: -
34
services have become the benchmark for banking efficiency. Trade Current Account
requires maintaining an average quarterly balance of Rs. 40,000.
35
To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. Open account with an initial
amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250
and maintain an Average Quarterly Balance of the same amount.
36
What's more NO PENALTY if withdraw part of the FD in times of need. Flexibility,
Security and High Returns all bundled into one offering.
Sweep-in facility
Do you wish to avoid taking overdrafts, and still take advantage of your Fixed
Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed
Deposit to Savings or Current Account and use it to fall back on in case of
emergencies. A deficit in Savings or Current Account is taken care of by using up an
exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-,
customer will lose interest only for the actual amount that has been withdrawn.
37
38
LOAN SERVICES
In todays competitive world everything happens only with the help of money or
through the money every person need money. But some time a person has not cash on
hand at that time he needs lone either from any friend or from any financial institute.
Loan does not mean that only lower class person needs it but also upper class person
it is needed.
As per the requirement of the every person there are much type of loans are there in
the HDFC bank.
Personal loan
A person has so many dreams but some time due to scarcity of money a dream cant
be satisfy. So, here one solution for that person this is personal loan. From this he/she
can fulfill their needs or requirement. It can be any thing either a dream of vacation or
son/daughters admission to college or any wedding, so personal loan can be helpful
in this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast, same
over here any person want to get a personal loan with the nominal documents he can
get the loan.
Home loan
HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of
experience, a dedicated team of experts and a complete package to meet all housing
finance needs, HDFC Home Loans, help people realize dream.
Vehicles loan
Nowadays the life is being so fast, time value is becoming more important so to
reach at the destination of any business related occasion or for a boy to reach college
or anywhere at the fix time there are so many requirement of vehicles. But every
people have no capacity to purchase vehicles with cash so for that here in the HDFC
bank vehicles loan is available. There are many types of vehicles loan.
39
So, as per the requirement of the person there are these types of loans are available
this are at the chip rate and hassel free from more documentation and other procedure.
And commercial businessman can get the benefits of the commercial vehicles loans.
Thus as per the need of different people there are vehicle loans available. And also
terms and condition are different as per the requirement.
Gold loan
With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery
and ornaments. The procedure is simple, documentation is minimal and approval is
quick. A person can get 70% loan on the value of the gold jewellery and ornaments.
There is also availability of the overdraft on the gold jewellery. With this a customer
can get free additional services like free personalized cheque book, free international
debit card, and free net banking phone banking services.
Educational loan
Nowadays important of education becoming very high. ASs it important becoming
high it is becoming costly. So in the higher education some time people can not effort
a high price at a same time. So, there is education loan is also available for the
student.
A person can get loan up to 10 lakhs to study in India and 20 lakhs if he wants to
study in abroad. Loan available up to tenure of 7 years including moratorium period.
Loans disbursed directly to the educational institution. It is released as per fee
schedules of institutes. Exclusive Telegraphic Transfer facility available for courses
abroad. Loans available for short duration/ job oriented courses also
40
CARD SERVICES
In todays competitive and fast time card services providing by the banks are
really very important to every person and every business needs or to take meal in to
the hotel or to purchase jewellery from the jewellery shops cards are playing good
role in the banking sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, or budgeting his
expenditure, he will find a card that suits him.
Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams.
Some dreams can't wait. If there's something person has always wanted. If a person
wanted fulfills his wants he can get benefits from the HDFC banks credit cards
facilities. Different types of credit
Classic cards
Silver Credit Card.
Value plus Credit Card.
Health Plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard
Commercial Cards
Corporate Credit Card
41
Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.
Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.
ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card.
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card
Types of investment : -
42
Mutual Funds
Invest through the Mutual Fund route to meet varied investment objectives.
Insurance
Traditional Plans
Unit Linked Plans
HDFC children's PLAN.
HDFC Unit Linked Young Star Plus II.
HDFC Money Back Plan.
HDFC Unit Linked Young Star Suvidha.
HDFC Savings Assurance Plan.
HDFC Unit Linked Young Star Suvidha Plus
HDFC Assurance Plan.
HDFC Unit Linked Pension.
HDFC Term Assurance Plan.
HDFC Unit Linked Pension Plus.
HDFC Loan Cover Term Assurance Plan.
HDFC Unit Linked Endowment Plus II.
HDFC Endowment Assurance Plan.
HDFC Unit Linked Endowment Suvidha.
HDFC Single Premium Whole of Life Insurance
Bonds
A secure investment avenue giving stable returns with tax benefits.
Financial Planning Start Now Plan investments to meet financial goals
Knowledge Centre
Profit from research and make informed investment decisions.
Equities & Derivatives
Leverage banks vast information repository and transact online.
Mudra Gold Bar
Buy 24 Karat gold bars made in Switzerland and certified by Assay.
43
products and services that people can choose from to transact smoothly, efficiently
and in a timely manner.
Bank offering following Foreign Exchange Products and Services.
PAYMENT SERVICE
Nowadays life of a person become very stressful and he/she becoming busy with
their own business, but they have to payment for something so for that reason banks
payment services become started. With HDFC Bank's payment services, person can
bid goodbye to queues and paper work. Banks range of payment options make it easy
for pay for a variety of utilities and services.
Verified By Visa
Do you want to be worry free for your online purchases. Now you can shop securely
online with your existing Visa Debit/Credit card.
Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What
more, you can now use your HDFC Bank Debit Card also for online purchases.
44
Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of
the art POS Machines or through your website and experience hassle free payment
acceptance.
Prepaid Mobile Refill
If you are an HDFC Bank Account holder, you can now recharge your Prepaid
Mobile Phone with this service.
Bill Pay
Pay your telephone, electricity and mobile phone bills at your convenience. Through
the Internet, ATMs, your mobile phone and telephone - with Bill Pay, our
comprehensive bill payments solution.
Pay Now
Use your HDFC Bank Credit Card to pay your utility bills online, make subscriptions
and donations; no registration required. Enjoy credit free period and reward points as
per your credit card features.
Insta Pay
Pay your bills, make donations and subscribe to magazines without going through the
hassles of any registration.
Direct Pay
Shop or Pay bills online without cash or card. Debit your account directly with our
Direct Pay service!
Transfer funds to any Visa Card (debit or credit) within India at your own
convenience through HDFC Bank's Net Banking facility.
e-Monies National Electronic Funds Transfer
Transfer funds from your account to other Bank accounts across India - FREE
of cost.
Online Payment of Excise & Service Tax
Make your Excise and Service Tax payments at your own convenience
through HDFC Bank's Net Banking facility.
Religious Offerings
Now donate to your favorite temple easily and securely using HDFC BANK's
Net Banking.
IMPERIA/PREFERRED/CLASSIC BANKING
As a special customer bank providing a TAJ to customer with name
imperia/preferred customer. For that bank provide a special service to their customer.
45
HDFC Bank's preferred/imperia Programme is the royal decree that enhances the
exclusivity that you are accustomed to. It makes you feel special at every step,
pampering with services those others can only dream about. This service goes beyond
the obvious, rises above the expected, so that the whole world can see, that even
today, the grandeur and magnificence of royalty is alive and well.
Thus as retail banking service bank providing really good and beneficial services to
their customer and as family member they are providing good services to every
customer either they are came business related or anything. So for this reason HDFC
bank playing a good role in the customers life for their monitory transaction.
NRI BANKING
With a view to attract the savings and other remittance into India through banking
channels from the person of Indian Nationality / Origin who are residing abroad and
bolster the balance of payment position, the Government of India introduced in 1970
Non-Resident(External) Account Rules which are governed by the Exchange Control
Regulations.
The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for
certain benefits like exemptions from taxes in India, free repatriations facilities, etc.
Deposit types
NRI-Banking facilitates the NRI customer to open the following account types.
WHOLESALE BANKING
Wholesale banking is the provision of services by banks to the like of large
corporate clients, mid-sized companies, real estate developers and investors,
international trade finance businesses and institutional customers, such as pension
funds and government entities/agencies. Also included is banking services offered to
other financial institutions. In essence, wholesale banking services usually involve
46
high value transactions. Wholesale banking compares with retail banking, which is
the provision of banking services to individuals.
Government sector
HDFC Bank acts as an active medium between the government and the customers
by means of various services. These services include:
Tax Collection wherein customers can directly pay their taxes like Direct taxes,
Indirect taxes and Sales Tax collections at their local HDFC Bank.
47
E-Ticketing - Helps the customer by providing him a direct access to book a Railway
Ticket online and get it home delivered.
Opening of L/C's is done by the bank on behalf of Government of India, Mints and
Presses, thus facilitating imports for the Government.
Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan Dombivli Municipal Corporation, is undertaken by the Bank.
Collection of stamp duty is done via franking mode in the state's of Maharashtra &
Gujarat.
The Stamp Duty Franking Facility is available at following branches in Maharashtra
Fort, Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri,
Pune(FC Road), Kolhapur, Nagpur, Pimpri.
The Stamp Duty Franking Facility is available at following branches in Gujarat
Disbursement of Pension to retired Employees of Central Govt and Defence is
directly done by HDFC Bank along with the disbursement of pension to the members
of EPFO (Employees Provident Fund Organisation).
Electronic Collection of fees on behalf of DGFT is done by the bank too.
48
2014
Euromoney
49
Forbes Asia
BrandZ TM Top 50 Most Valuable
Indian Brands study by Millward Brown
Finance Asia Country Awards 2014 and
poll on India's Top Companies
Asiamoney
Dun & Bradstreet - Manappuram Finance
Limited Corporate Award 2014
2013
Asiamoney
Businessworld
Guinness World Record
50
Business Standard
Business Today-KPMG Best Banks
Survey 2013
Business India
Global Finance Survey -World's Best
Banks 2013
Outlook Money Awards 2013
IBA Innovation Awards
Dun & Bradstreet Polaris Financial
Technology Banking Award 2013
Institutional Investor
Forbes Asia
Sunday Standard Best Banker Awards
Winner
- Best use of Mobility Technology in
Banking
Mr Aditya Puri - Banker of the Year 2013
Best Bank 2013
Best Bank 2013
Best Bank in India
Best Bank in Large Banks Category
Most Innovative use of Technology
- Best Private Sector Bank Technology
Adoption
- Best Private Sector Bank Retail
- Overall Best Private Sector Bank
- Best Bank in Asia
- Mr. Aditya Puri - Best CEO
Fab 50 Companies List for the 7th year
- Best Private Sector Bank: Large
- Safest Bank: Large
- Mr. Aditya Puri: Top Achiever
Best Performing Bank - Private
- Best Domestic Bank in India
- Mr. Aditya Puri: Best Executive in India
Best in Financial Services: Bank
Category
Best in Banking sector
Winner in the banking category
Best IT Driven Innovation in Banking
(COMMERCIAL)
Best Customer Service Result
- Best Bank: New Private sector
- Best in Strength & Soundness
- Mr. Aditya Puri: Best Banker
Organisation of the Year
51
SWOT ANALYSIS
SWOT Analysis is a powerful technique for understanding your Strengths and
Weaknesses, and for looking at the Opportunities and Threats you face. Used in a
business context, it helps you carve a sustainable niche in your market. Used in a
personal context, it helps you develop your career in a way that takes best advantage
of your talents, abilities and opportunities.
52
WEAKNESSES
o
o
o
o
o
OPPORTUNITIES
o
o
o
o
o
o
THREATS
o
o
o
o
o
o
o
53
KEY POINT
SWOT Analysis is a simple but powerful framework for analyzing company's
Strengths and Weaknesses, and the Opportunities and Threats you face. This helps
you to focus on your strengths, minimize threats, and take the greatest possible
advantage of opportunities available to you.
54
55
RESEARCH
METHODOLOGY
56
6. RESEARCH METHEDOLOGY
6.1
TITLE OF STUDY
COMPERATIVE ANALYSIS OF PRODUCTS &
SERVICES OF HDFC BANK WITH ITS
COMPETITORS
6.2
DURATION OF PROJECT
Short term project.
6.3
OBJECTIVES OF STUDY
Banking and finance can be called as the nerves of any economic system as
they accelerate the process of economic development through canalization of
adequate finace. It is hard to anticipate development of efficient banking
services in the country. No doubt financial institutions play so important in
economic development but at the some time economic development determines
the growth and development of banking institutions the role of various kind of
banking institution. In economic development need not be emphasized.
Main objective of the study is to Critical appraisal of product & services
offered by HDFC BANK. Some of the major objectives of the study include
the determination of the following:
Consumer awareness about the products and services provided by the
HDFC BANK.
Consumer preference about various products and services.
Customers perception towards private Banking and their expectations
from private banks.
Customer satisfaction with the service provided by the bank.
Draw out with conclusions and suggestion based on the analysis and the
interpretation of data.
6.4
TYPE OF RESEARCH
Research is one of the most important parts of any study and pertains to the
collection of information and knowledge. Marketing research is defined as the
systematic design, collection, analysis, and reporting of data and findings
relevant to a specific marketing situation facing the company. My project has
been developed on has basis of both exploratory and descriptive research. The
57
research process depends upon developing the most efficient plan for gathering
the needed information. Designing a research plan calls for decisions on the
data sources, research approaches, research instruments, sampling plan, and
contact methods.
6.5
Telephone directory
City directory
Transporter directory
Lawyers directory
58
1.
2.
59
QUESTIONNAIRE -1
COMPARATIVE ANALYSIS OF SAVING,
CURRENT AND SALARY PRODUCTS OF HDFC
BANK WITH AXIS AND ICICI BANK
60
ANALYSIS 1:
This analysis displays the division of sample according to the occupation. A total
of 100 people were surveyed.
Table 1
Valid SALARIED
BUSINESS
PROFESSIONAL
Total
Frequency Percent
Valid
Percent
Cumulative
Percent
44
24
32
100
44.0
24.0
32.0
100.0
44.0
68.0
100.0
44.0
24.0
32.0
100.0
61
ANALYSIS-2
How the customers find salary, current and savings account provided by HDFC
Bank?
customers
very good
good
satisfactory
exellent
poor
62
ANALYSIS-3
Do customers have any other product of HDFC BANK other than savings,
current and salary account? (Like term deposit, mutual funds, insurance, home
loan, car loan etc.)
63
ANALYSIS-4
Are the customers satisfied with their savings, current and salary
account?
NO. OF PEOPLE
YES
NO
64
ANALYSIS-5
Which bank is better in providing services regarding transactions?
BANKS
40%
35%
30%
25%
20%
BANKS
15%
10%
5%
0%
HDFC BANK
AXIS BANK
ICICI BANK
65
ANALYSIS-6
Which is better bank in ease of access (both branch & ATM)?
BANKS
HDFC BANK
AXIS BANK
ICICI BANK
66
ANALYSIS-7
Which banks accounts provide greater flexibility?
BANKS
AXIS
HDFC
ICICI
Interpretation:others banks.
67
ANALYSIS-8
Are you satisfied with the relationship managers service provided by
HDFC Bank?
YES
NO
68
ANALYSIS-9
Which channel you use to access your account?
PHONE BANKING
69
ANALYSIS-10
If you have to do an investment, which Bank would you
consult for Portfolio Management?
70
ANALYSIS-11
Which is the most customer friendly Bank in terms of charges as per
you?
71
ANALYSIS-12
Which are the areas of improvement?
AREAS OF
IMPROVEMENT
UPDATES
SERVICE
TECHNOLOGY
RM
PRODUCTS
Interpretation:-
72
Analysis:- 13
How do you rank the following private sector banks?
73
FINDINGS
The bank has good relation with its customers. The customers are very
satisfied with the relationship manager service provided by HDFC Bank.
The bank and its customers have a long term relationship. HDFC Bank has the
tendency to retain its customers at any cost. They believe that the old customer
is more profitable instead of a new one thats why they try to maintain good
and long term relations to their customers.
Less no. of customer use mobile banking or net banking.
The accounts of HDFC bank (both salary & saving) provide great flexibility in
terms of offering.
The accounts of these three banks dont have much difference in terms of
features but when it comes to service providing the HDFC Bank gets an edge
because of their great customer services.
The HDFC bank has good no. of branches and ATMs thats why it has more
ease of access.
The customers of HDFC Bank are satisfied with their savings, preferred
current and salary accounts.
74
QUESTIONNAIRE 2
CRITICAL APPRAISAL OF PRODUCT & SERVICES
75
Interpretation :
After looking this bar graph, it can be said the middle-aged group are the main
customer of the banks as they occupied almost 75% of this graph. The bank has a
huge potential in terms of the untapped market Young and old age group people.
High pay packages to todays employed youth and large saving with the old age
people (especially in urban areas) has made them attractive potential customers.
76
Interpretation :
Most of the service class people prefer to open a Savings Account in
comparison to the business class people. This may be possible due to the
facility of Anywhere Banking suiting their needs and preferences.
77
Interpretation:
Income does not make any difference as far as opening the account in the Axis
Bank is concerned, as the bar diagram is vividly revealing that more or less
people of every segment of income group have opened and are opening the
account expert one group i.e. lower income group where emphasis is required
to penetrate this group so it can be said that the target group of the hdfc,
specially for saving account are of every segment of income group since its is
devoted to render best services to its costumer.
78
Interpretation:
When a customer visits any bank the first and foremost thing he expects is the
quickness of service and the promptness in entertaining by the bank employee.
Second thing customer wishes to have is proper information regarding his
queries. One this in this bar also really significant is, factor like less formalities
of document while opening an account. Varieties of product do not make a big
impact on customer behavior for opening an account in any bank if its services
are efficient. But on the other hand bank cant ignore working hours. As in this
bar customer has erred it. For these services like bank preference should be
given to make a prompt and customer friendly service channel. For this focus
must be given to make well informed and proactive employee along with work
should be executed technologically rather than manually.
79
Interpretation :
Saving account is the leading and attractive product for the HDFC bank as it
occupies a major chunk in this bar. It is clearly implying that this product has
the ability to satisfy the customers. On the second had and the positions current
accounts and fixed deposits has also been helpful to increase the customer base
but still their performances needs to be improved. One thing in this bar which
is significant is the business of the bank is relying on only few leading
products, reason for this could be, neither it has limited range of products nor
rest of the product does not have much ability to penetrate in the stiff market of
banking of Jammu. That is giving an alarming message to the management of
the bank to go or analyzing the situation very minutely and must ascertain
where things are going wrong and for that what short of necessary step could
be taken. Providing better services in comparison with the competitors is a
must for excelling in industry.
80
Interpretation :
As it is said a satisfied customer is the best medium for advertisement since in
this bar friends and relatives have play a key role in opening the accounts for
others, which implies that bank real customer are satisfied enough with the
facilities available on the products and the services enjoyed by them. An
advertisement and bank employees more or less has been good performer in
their respective domain. It reveals advertisement of different medium, as been a
key factor in generating the awareness about banks product as well as facilities
that are made to available on then in the peoples mind.
81
Interpretation :
As this bar is showing at what level people are saved with saving account, with
its unique facilities features, and ability to serve all the needs of customer
because by and large it can be said 75% people are saving good to savings
accounts, this implies that this product has been a leading product and still an
attractive product of the HDFC bank. Reason for this could be different type of
facility associated with this product, which are reading true value to the
customer and marketing people are also very much devoted to give the best
from this part. Efforts must be given to know why they are people who are still
saying average and poor about saving accounts and what are the factors that are
going wrong with that segment of people.
82
Q.8
?
Interpretation :
Rating of any bank depends on its overall performance in the eye of the people.
This bar is vividly showing that the performance of HDFC bank has been good
because in such a short span of its existence in this city with strong
competition from major public sector bank like SBI and other private banks,
Reason for this could be, it has occupied a different position in the people mind
with its customer friendly products and to serve them a efficient and prompt
banking system.
83
Interpretation :
As this bar graph showing 57% people wait in queue 0-5 minutes. While it
should be 100% people.
84
Interpretation:
As this bar graph showing 82% people are sufficient. While it should be 100%
people.
85
86
CONCLUSION
The study mainly was on the customer orientation that how they think, what
they want from their banks and how they take decision going to any bank.
In this study I found that the bond of HDFC Bank with its customers is very
strong, because HDFC Bank mainly focuses on retaining their customers.
This study finds that however HDFC Bank is the leading private sector bank
due to its vast range of products and availability of options make it one of the
better banks in India.
The bank should focus on the semi urban and rural market because these
markets are very good opportunity for someone like HDFC Bank which is in
growing face. Without expanding in these markets HDFC Bank cannot be a
leading bank so they should focus on this market.
The bank should focus on mass banking in order to increase their market
share. They should launch such products which would be within the reach of
the lower middle class.
The bank should pay more attention on giving updates and should increase the
level of service providing because the competitors of HDFC are better in this
area.
The bank should try to increase the use of technology like mobile and net
banking among its customers.
Give demonstration of net banking & new banking apps to customers for their
ease.
87
They must regularly updated the account holders about the new charges
88
APPENDIX
89
APPENDIX
QUESTIONNAIRE- 1
Name.
Gender
Age ..
Address
...
Occupation
90
c)
d)
ICICI bank
Other______
91
QUESTIONNAIRE -2
Name.
Gender
Age ..
Q.1
Q.2
Q.3
Q.4
Q.5
Q.6
Address
...
Occupation
92
a)
b)
c)
d)
Bank Employees
Prospectus
Advertisement
Friend and Relative would you recommend
Q.7
Strongly agree
Agree
Undecided
Disagree
Strongly disagree
93
BIBLIOGRAPHY
Books:
Research Methodology
Business Research and Methods
Marketing Management
Magazine:
Business Today
Business World
Annual Report of HDFC Bank
Manuals
Brochures
Websites
.
WWW.HDFCBANK.COM
WWW.ECONOMITIMES.COM
WWW.RBI.ORG
WWW.AXISBANK.COM
WWW.ICICIBANK.COM
WWW.MONEYCONTROL.COM