A

RESEARCH REPORT
ON
Analysis of Customer Relationship
management in Private Sector Bank

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF

BACHELOAR OF BUSINESS ADMINISTRATION

(BBA)

SUBMITTED BY :
DEVESH CHANDRA
(HOD)

SUBMITTED TO:
SATYAM SINGH
BBA-VI SEM
ROLL No.0700563

CHAUDHARY CHARAN SINGH PG COLLEGE

HEONRA (ETAWAH)
1

CERTIFICATE
This is to certify that the project entitled Analysis of
Customer Relationship management in Private Sector
Bank submitted by Satyam Singh has been done under my

guidance and supervision in partial fulfillment of Bachelor of

Business Administration.

The working analysis mentioned in this report has been undertaken

by the candidate herself and necessary reference has been
recognized and acknowledged in the text of the report.

ACKNOWLEDGEMENT
Many talented people have contributed to the
successful completion of this work and I would
like to extend a word of thanks and
appreciation to all of them.
First, I take this opportunity to acknowledge my
institution CHAUDHARY CHARAN SINGH PG COLLEGE
HEVERA (ETAWAH) where I am pursuing my degree

Bachelor of Business Administration.

Second, I empress my thanks to Mr. Devesh Chandar
(HOD),

for

her

guidance,

support

and

encouragement which helped me in completing my

project.
Above all, I would like to thank the Almighty God
without whom this work could never have been
completed.

Satyam Singh

PREFACE
If we can compare marketing to a long train with a multiple
compartment then every bogies represent different aspect of marketing.
Marketing strategy formulation depends upon the every aspect of related
terms and marketing research plays vital roles to connect each compartment
to form a cohesive functional unit.
The automotive industry is at the center of Indias new
global dynamic. It plays major roles in retaining manufacturing industry
growth over 12.5% per annum.
The motivation behind the project was to gain clear
understanding about marketing research. Through this project I have tried to
understand the complexities involved in gathering of data for drawing
inferences .The final objective is to produce a result that is accurate, useful,
and free from bias and helps in the successful completion of my M.B.A
course. The project has been presented in a simple format

INDEX

CONTENTS
Sr. No.

Subject Covered

Page No.

Banking Structure in India

15

Indian Banking Industries

18

HDFC BANK

22

Company Profile

24

Business Strategy

36

SWOT Analysis

55

Methodology

70

Analysis & Discussion

72

Conclusion

74

10

Bibliography

76

INTRODUCTION
Customer Relationship Management (CRM)
What is CRM?
CRM stands for Customer Relationship
Management. It is a process or
methodology used to learn more about
customers' needs and behaviors in order to
develop stronger relationships with them.
There are many technological components
to CRM, but thinking about CRM in primarily
technological terms is a mistake. The more
useful way to think about CRM is as a
process that will help bring together lots of
pieces of information about customers,
sales, marketing effectiveness,
responsiveness and market trends.
CRM helps businesses use technology and
human resources to gain insight into the
behavior of customers and the value of
those customers.
6

CRM Software
Sales Force Automation
Contact management
Contact management software stores,
tracks and manages contacts, leads of an
enterprise.
Lead management
Enterprise Lead management software
enables an organization to manage, track
and forecast sales leads. Also helps
understand and improve conversion rates.
eCRM or Web based CRM
Self Service CRM
Self service CRM (eCRM) software Enables
web based customer interaction, automation
of email, call logs, web site analytics,
campaign management.
Survey Management Software
Survey Software automates an enterprise's
Electronic Surveys, Polls, Questionnaires
and enables understand customer
preferences.
Customer Service
Call Center Software
Help Desk Software

Partner Relationship Management

Contract Management Software
Contract Management Software enables an
enterprise to create, track and manage
partnerships, contracts, agreements.
Example: Upside Software, Accruent
Software, diCarta, I-Many.
Distribution management Software

Thanks to the expanding global workforce, heightened

competition, and the continued need to cut costs and drive
productivity, companies today are facing a new array of
challenges. Many organizations have employees working out
of the office, whether its your traveling salesperson, or
workers in other states, countries, or from home.
Collaborating as a unified team (Workforce Collaboration)
has never been more crucial and sharing information with a
teammate in the next cubicle is only a small piece of the
puzzle. Thats where Business Software and Customer
Relationship Management (CRM) applications come in.
CRM programs enable businesses to centrally access and
manage customer information. Whether information is being
shared amongst a large group, such as in a call center or
simply between a few employees in a small business, it has
to be accurate and reliable. In order to retain customers,
their information needs to be recorded securely and
correctly. Most people have encountered the reverse of this
scenario and know how infuriating it can be when companies
have poor organization and communication among their
workers. To ensure your customers are satisfied, you need to
stand above the rest and have an information hub where all
workers have access to vital information about customers.
This will help you achieve proper customer service, sales,
marketing, and to unite all departments of your business.
CRMs make Workforce Collaboration easier than ever!
Of course, not all team members should have access to the
same information, and thats why certain CRM applications
enable you to share information with your team members
securely and with necessary territorial controls. That means
team leaders can view more information and each
department will see all relevant information. This ensures
excellent Project Management for any organization, which is
9

vital to your success.

CRM applications help all companies reduce the time and
complexity it takes to report individual sales activities.
Without a CRM, your workers will require an extra 64 to 70
hours per week! For instance, it will take 4-6 hours to
consolidate, view, and analyze information about all
customer contacts and engagements, current opportunities,
probability of success, etc. Another 8-10 hours to get
accurate activity reports from staff (not including the time it
takes them to create those reports). Add 2-4 hours to find
key potential prospects so that you target the right
customers, or weed out the poor prospects. Finally, add on
another 1/2 hour or so to research each customer regarding
past history, needs, etc.
Any company that needs Process Improvement will find that
in order to be more effective and cost efficient, a system of
Sales Force Automation must be implemented. Certain CRM
systems can significantly reduce wasted time and increase
sales. Not only is Sales Force Automation important to sales
teams, companies are increasingly required to automate
common practices and processes. Sending emails to clients,
entering vital information, and other crucial steps are
automated with popular CRM applications to reduce wasted
time of manually performing mundane tasks.
CRM applications make Project Management easier for
company leaders with simple ways to monitor and measure
individual and team success. Workers perform best when
they have a clear-cut way to measure their success and see
improvement. Of course, by measuring success, rewards
can be given to enhance team morale! Employees that are
struggling to perform can be encouraged and further trained
to boost productivity. Everyone in the business world is
10

competitive, especially salespeople; that's the point of

quotas and commissions. When reps see how their doing
against their quota, or even against other reps, that is
encouragement to do better.
With handy tools in CRM applications, your company can
effectively improve Workflow by targeting a) prospects for
new business and b) existing customers for repeat business.
This is a crucial tool to reduce wasted time and eliminate
bothering the wrong customers. Your team will be able to
quickly divide lead lists into groups that you create such as
by ZIP code or last date of purchase. This enables your
sales team to slice and dice their customer data to find the
best approach. Creating "data policies" is a great way to do
that. For example, if a new prospect is introduced and there
is data indicating their interest in "Trucks," a completely
different selling process can start for that prospect.
As times have changed, a simple phone call or visit isnt
always enough. CRM applications will provide you with
multiple ways to communicate to customers such as email
marketing campaigns. By combining CRM Sales Force
Automation data management and email campaigning in one
application, you can specify your lead, prospect, and
account targets, embedded personal information into each
email, and measure results across your sales cycle.
Your CRM will make it easier to target the right customers
with email lists and to make sure your message isnt viewed
as spam by filters or customers! Newsletters make excellent
campaigns to provide your reader with information that will
help them improve their situation in an unobtrusive way.
Meanwhile, it positions you as a reputable source of useful
information. The better your content is, the better your
chance that they will forward the newsletter to colleagues
11

and peers or look forward to the next email from you. Your
CRM will assist you in your email campaign efforts by
offering simple templates in HTML form and providing you
with statistics such as: who opened the email, who clicked
on your link from the email, who unsubscribed, etc. Creating
automated callback lists for customers who appeared to be
interested (clicked on links, opened email, etc.) is a highly
successful tool.
A CRM application will enable your organization to build on
customer data with information relating to: opportunities,
products, services, projects, customer feedback, referrals,
accounting, and more. A Sales Force Automation CRM will
automate processes that used to take days and will simplify
it!
The answer to the problems associated with the expanding
global workforce is through Web Collaboration technologies.
This means operating a successful CRM and Business
Software system for your company. You can be sure to:
- Win Customers: Nothing will be left to chance. From the
first contact through first sale, everything is tracked.
- Work Together: It doesnt matter where you employees are
in the office, state, country, or world, they will have the
information they need to close more deals.
- Work Smarter: Working smarter is better than harder. It
helps cut wasted time, efforts, and money! You have the
reporting data you need to make great decisions.

12

13

Scheduled Banks in India

(A) Scheduled Commercial Banks
Public sector
Banks

Private sector
Banks

Foreign
Banks in
India
(29)

(28)
(27)
Nationalized Old Private
Bank
Banks
Other Public New
Sector Banks
Private
(IDBI)
Banks
SBI and its
Associates

Regional Rural
Bank
(102)

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative
Banks (55)

Scheduled State Cooperative

Banks (31)

Here we more concerned about private sector banks and

ompetition among them. Today, there are 27 private sector banks
in the banking sector: 19 old private sector banks and 8 new
14

Private sector banks. These new banks have brought in state-ofthe-art technology and Aggressively marketed their products.
The Public sector banks are Facing a stiff competition from the
new private sector banks. The banks which have been setup in
1990s under the guidelines of the Narasimham Committee are
referred to as NEW PRIVATE SECTOR BANKS.

New Private Sector Banks

Superior Financial Services

Designed Innovative Products

Tapped new markets

Accessed Low cost NRI funds

Greater efficiency

15

16

The Indian banking market is growing at an astonishing rate, with

Assets expected to reach US$1 trillion by 2010. An expanding
economy, middle class, and technological innovations are all
contributing to this growth.

The countrys middle class accounts for over 320 million people.
In correlation with the growth of the economy, rising income levels,
increased standard of living, and affordability of banking products
are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution,

Focusing on the expansion of retail and rural banking.
Players are becoming increasingly customer - centric in

their

approach, which has resulted in innovative methods of offering new

17

banking products and services.

Banks are now realizing

the

importance of being a big player and are beginning to focus their

attention on mergers

and acquisitions to take advantage of

economies of scale and/or comply with Basel II

regulation.

Indian banking industry assets are expected to reach US$1 trillion by

2010 and are poised to receive a greater infusion of foreign capital,
says Prathima Rajan, analyst in Celent's banking group and author of
the report.

The banking industry should focus on having a small

number of large players that can compete globally rather than having
a large number of fragmented players."

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign

banks in India. This is as an aftermath of the sudden interest shown
by

Reserve Bank of India paving roadmap for foreign banks in India

greater freedom in India. Among them is the world's best private bank
by EuroMoney magazine, Switzerland's UBS.

18

The following are the list of foreign banks going to

set up business in India :

Royal Bank of Scotland

Switzerland's UBS

US-based GE Capital

Credit Suisse Group

Industrial and Commercial Bank of China

19

WE UNDERSTAND YOUR WORLD

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.
HDFC is India's premier housing finance company and enjoys an
impeccable track record in India as well as in international markets.
Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market
leader in mortgages. Its outstanding loan portfolio covers well over a
million dwelling units.

HDFC has developed significant expertise in

retail mortgage loans to different market segments and also has a

large corporate client base for its housing related credit facilities.
With its experience in the financial markets,
20

a strong market

reputation, large shareholder base and unique consumer franchise,

HDFC was ideally positioned to promote a bank in the Indian
environment.
HDFC Bank began operations in 1995 with a simple mission : to be a
World Class Indian Bank. We realized that only a single minded
focus on product quality and service excellence would help us get
there. Today, we are proud to say that we are well on our way
towards that goal

21

22

STRONG NATIONAL NETWORK

HDFC BANK

March 2006

March 2007

March 2008

Citied

228

316

327

Branches

535

684

761

ATMs

1323

1605

1977

23

As of March 31, 2008, the Banks distribution network was at 761

Branches and 1977 ATMs in 327 cities as against 684 branches
and 1,605 ATMs in 320 cities as of March 31, 2007.
Against the regulatory approvals for new branches in hand, the
Bank expects to further expand the branch network by around 150
branches by June 30, 2008. During the year, the Bank stepped up
retail customer acquisition with deposit accounts increasing from
6.2 million to 8.7 million and total cards issued (debit and credit
cards) increasing from 7 million to 9.2 million.
Whilst credit growth in the banking system slowed down to about
22% for the year ended 2007-08, the Banks net advances grew
by 35.1% with retail advances growing by 38.6% and wholesale
advances growing by 30%, implying a higher market share in both
segments.

he transactional banking business also registered healthy growth

With cash management volumes increased by around 80% and
24

trade services volumes by around 40% over the previous year.

Portfolio quality as of March 31, 2008 remained healthy with gross

nonperforming assets at 1.3% and net non-performing assets at
0.4% of total customer assets. The Banks provisioning policies for
specific loan loss provisions remained higher than regulatory
requirements.

TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff
competition from their rivals. And world also converted into the flat
from the globe. After the policy of liberalization and RBI initiatives to
take the step for the private sector banks, more and more changes
are taking the part into it. And there are create competition between
the private sector banks and public sector bank.
Private sector banks are today used the latest technology for the
different transaction of day to day banking life. As we know that
Information Technology plays the vital role in the each and every
25

industries and gives the optimum return from the limited resources.
Banks are service industries and today IT gives the innovative
Technology application to Banking industries. HDFC BANK is the
leader in the industries and today IT and HDFC BANK together
combined they reached the sky. New technology changed the mind of
the customers and changed the queue concept from the history
banking transaction. Today there are different channels are available
for the banking transactions.
We can see that the how technology gives the best results in the
below diagram. There are drastically changes seen in the use of
Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%).
These type of technology gives the freedom to retail customers.

Centralized Processing Units

Electronic Straight
Processing

Derived
Economies
of
Scale
Reduced Transaction Cost

Through

Data Warehousing , CRM

Innovative
Application

Improve cost efficiency,

Cross sell
Provide new or superior
products

Technology

26

HDFC BANK is the very consistent player in the New private sector
banks. New private sector banks to withstand the competition from
public sector banks came up with innovative products and superior
service.

2015

27

2016

( % customer initiated Transaction by Channel )

28

HDFC BANK PRODUCT AND CUSTOMER

SEGMENTS

PERSONAL BANKING
Loan Product
Auto Loan
Loan
Against
Security
Loan
Against
Property
Personal loan

Deposit Product

Saving a/c
Current a/c
Fixed deposit
Demat a/c
Safe
Deposit
Lockers
29

Investment & Insurance

Mutual Fund
Bonds
Knowledge Centre
Insurance
General and Health
Insurance

 Credit card
2-wheeler loan
Commercial
vehicles finance
Home loans
Retail business
banking
Tractor loan
Working Capital
Finance
Construction
Equipment
Finance
Health
Care
Finance
Education Loan
Gold Loan
Cards
Credit Card
Debit Card
Prepaid Card

------------------------------Forex Services
------------------------------ Product &
Services
Trade Services
Forex service
Branch Locater

Equity
and
Derivatives
Mudra Gold Bar

Payment Services

NetSafe
Merchant
Prepaid Refill
Billpay
Visa Billpay
InstaPay
DirectPay
VisaMoney
Transfer
eMonies
Electronic Funds
Transfer
Online Payment
of Direct Tax

30

Access To Bank
NetBanking
OneView
InstaAlert
MobileBanking
ATM
Phone Banking
Email Statements
Branch Network

 RBI Guidelines

WHOLESALE BANKING
Corporate

Small and Medium

Enterprises

Financial Institutions
and Trusts

Funded
Services
Non Funded
Services
Value Added
Services
Internet
Banking

Funded Services
Non
Funded
Services
Specialized
Services
Value
added
services
Internet Banking

BANKS
Clearing
SubMembership
RTGS

submembership
Fund Transfer
ATM Tie-ups
Corporate Salary a/c
Tax Collection
Financial Institutions

31

Mutual Funds
Stock Brokers
Insurance Companies
Commodities
Business
Trusts

BUSINESS MIX

Total Deposits

Retail

Gross Advances

Wholesale

32

Net Revenue

 HDFC Bank is a consistent player in the private sector

bank and have a well balanced product and business
mix in the Indian as well as overseas markets.
Customer segments (retail & wholesale) account for
84% of Net revenues ( FY 2008)
Higher retail revenues partly offset by higher operating
and credit costs.
Equally well positioned to grow both segments.
.

NRI SERVICES
Accounts & Deposits

Remittances

Rupee Saving a/c

Rupee Current a/c
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning
Indians

North America
UK
Europe
South East Asia
Middle East
Africa
Others
Quick remit
IndiaLink
Cheque LockBox
Telegraphic/ Wire Transfer
Funds Transfer

33

Cheques/DDs/TCs
Investment & Insurances

Loans

Mutual Funds
Insurance
Private Banking
Portfolio
Investment
Scheme

Home Loans
Loans Against Securities
Loans Against Deposits
Gold Credit Card

Payment Services

Access To Bank

NetSafe
BillPay
InstaPay
DirectPay
Visa Money
Online Donation

NetBanking
OneView
InstaAlert
ATM
PhoneBanking
Email Statements
Branch Network

BUSINESS STRETEGY

HDFC BANK mission is to be

"a World Class Indian Bank",

benchmarking themselves against international standards and best

practices in terms of product offerings, technology, service levels,
risk management and audit & compliance. The objective is to build

34

sound customer franchises across distinct businesses so as to be a

preferred provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in profitability,
consistent with the Bank's risk appetite. Bank is committed to do this
while ensuring the highest levels of ethical standards, professional
integrity, corporate governance and regulatory compliance. Continue
to develop new product and technology is the main business strategy
of the bank. Maintain good relation with the customers is the main
and prime objective of the bank.

HDFC BANK business strategy emphasizes the

following :
Increase market share in Indias expanding banking

and

financial services industry by following a disciplined growth

strategy focusing on quality and not on quantity and delivering
high quality customer service.
Leverage our technology platform and open scaleable systems
to deliver more products to more customers and to control
operating costs.
35

 Maintain current high standards for asset quality through

disciplined credit risk management.
Develop innovative products and services that attract the
targeted customers and address inefficiencies in the Indian
financial sector.
Continue to develop products and services that reduce banks
cost of funds.
Focus on high earnings growth with low volatility.

INSIDE HDFC BANK

FIVE S , PART OF KAIZEN

WORK PLACE TRANSFORMATION
Focus on effective work place organization
36

Believe in
Small changes lead to large improvement
Every successful organization have their own strategy to win the
race in the competitive market. They use some technique and
methodology for smooth running of business. HDFC BANK also
aquired the Japanese technique for smooth running of work and
effective work place organization.
Five S Part of Kaizen is the technique which is used in the bank
For easy and systematic work place and eliminating unnecessary
things from the work place.
BENEFIT OF FIVE S

It can be started immediately.

Every one has to participate.
Five S is an entirely people driven initiatives.
Brings in concept of ownership.
All wastage are made visible.

FIVE S Means :S-1

S-2

SORT
SYSTEMATIZE
37

SEIRI
SEITON

S-3
S-4
S-5

SPIC-N-SPAN
STANDARDIZE
SUSTAIN

SEIRO
SEIKETSU
SHITSUKE

(1) SORT :It focus on eliminating unnecessary items from the work place.
It is excellent way to free up valuable floor space.
It segregate items as per require and wanted.

Frequently
Required

Wanted but
not Required

Remove
everything from
workplace

Less
Frequently
Required

Junk

(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.
(3) SPIC- n - SPAN :Spic-n-Span focuses on regular clearing and self
inspection. It brings in the sense of ownership.
38

(4) STANDERDIZE :It focus on simplification and standardization. It involve standard

rules and policies. It establish checklist to facilitates autonomous
maintenance of workplace. It assign responsibility for doing
various jobs and decide 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 self- discipline and
commitment towards workplace organization.

LABELLING ON FILE

FILE NUMBER
SUBJECT
FROM DATE
TO DATE

39

OWNER

BOX LABEL
For Example

1 / 3 /A/ 6
1 Work Station (1)
3 Drawer (3)
A - Shelf (A)
6 File Number ( 6)

COLOUR CODING OF FILES

DEPARTMENT
Welcome Desk
Personal Banker
40

Teller
Relationship Manager
Branch Manager
Demat
Others

In the HDFC BANK each department has their different color coding
apply on the different file. Due to this everyone aware about their
particular color file which is coding on it and they save their valuable
time. It is a part of Kaizen and also included in the system of the Five
S. Logic behind it that , the color coding are always differentiate the
things from the similar one.

HUMAN RESOURCES

The Banks staffing needs continued to increase during the year

particularly in the retail banking businesses in line with the business
growth. Total number of employees increased from 14878 as of
41

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

focus on training its employees on a continuing basis, both on the job
and through training programs conducted by internal and external
faculty.
The Bank has consistently believed that broader employee ownership
of its shares has a positive impact on its performance and employee
motivation. The Banks employee stock option scheme so far covers
around 9000 employees.

RUPEE EARNED - RUPEE SPENT

It is more important for every organization to know about from where

42

and where to spent money. And balanced between these two things
rupee earned and rupee spent are required for smooth running of
business and financial soundness. This type of watch can control
and eliminate the unnecessary spending of business. In this diagram
it include both things from where Bank earned Rupee and where to
spent.

HDFC BANK earned from the Interest from Advances 51.14 % ,

Interest from Investment 27.12 %, bank earned commission
exchange and brokerage of 15.25 %. These are the major earning
sources of the bank. Bank also earned from the Forex and
Derivatives and some other Interest Income.
Bank spent 39.75 % on Interest Expense, 30.27 % on Operating
43

Expense and 14.58 % on Provision. Bank also spent Dividend and

Tax on dividend, Loss on Investment , Tax.
As we discuss above that balancing is must between these two for
every organization especially in the era of globalization where there
are stiff competition among various market players.

RECENT DEVELOPMENT

The Reserve Bank of India has approved the scheme of

amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank
Ltd. with effect from May 23, 2008.

All the branches of Centurion Bank of Punjab will function as

44

branches of HDFC Bank with effect from May 23, 2008. With RBIs
approval, all requisite statutory and regulatory approvals for the
merger have been obtained.

The combined entity would have a nationwide network of 1167

branches; a strong deposit base of around Rs.1,22,000 crores and
net advances of around Rs.89,000 crores. The balance sheet size of
the combined entity would be over Rs.1,63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their
consent to a scheme of amalgamation of Centurion Bank of Punjab
Limited with HDFC Bank Limited. The shareholders of the Bank
45

approved the issuance of one equity share of Rs.10/- each of HDFC

Bank Limited for every 29 equity shares of Re. 1/- each held in
Centurion Bank of Punjab Limited. This is subject to receipt of
Approvals from the Reserve Bank of India, stock exchanges and
Other requisite statutory and regulatory authorities. The shareholders
Also accorded their consent to issue equity shares and/or warrants
convertible into equity shares at the rate of Rs.1,530.13 each to
HDFC Limited and/or other promoter group companies on preferential
basis, subject to final regulatory approvals in this regard.

The

Shareholders of the Bank have also approved an increase in the

authorized capital from Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation

(HDFC), India's leading housing finance company, HDFC Bank is one
of India's premier banks providing a wide range of financial products
and services to its over 11 million customers across hundreds of
Indian cities using multiple distribution channels including a pan-India
network of branches, ATMs, phone banking, net banking and mobile
banking. Within a relatively short span of time, the bank has emerged
46

as a leading player in retail banking, wholesale banking, and treasury

operations, its three principal business segments.

The bank's competitive strength clearly lies in the use of technology

and the ability to deliver world-class service with rapid response time.
Over the last 13 years, the bank has successfully gained market
share in its target customer franchises while maintaining healthy
profitability and asset quality.

As on March 31, 2008, the Bank had a network of 761 branches and
1,977 ATMs in 327 cities. For the year ended March 31, 2008, the
Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore),
up 39.3%, over the corresponding year ended
As of

March 31, 2007.

March 31, 2008 total deposits were INR 1007.69 billion,

(Rs.100,769 crore) up 47.5% over the corresponding year ended

March 31, 2007. Total balance sheet size too grew by 46.0% to INR
1,331.77 billion

(133177 crore). Leading Indian and international

Publications have recognized the bank for its performance and

quality.

47

Centurion Bank of Punjab is one of the leading new generation

private sector banks in India. The bank serves individual consumers,
small and medium businesses and large corporations with a full
range of financial products and services for investing, lending and
advice on financial planning. The bank offers its customers an array
of wealth management products such as mutual funds, life and
general insurance and has established a leadership 'position'.
48

The bank is also a strong player in foreign exchange services,

personal loans, mortgages and agricultural loans.

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

Overseas Indians. On 29th August 2007, Centurion Bank of Punjab
merged with Lord Krishna Bank (LKB), post obtaining all requisite
statutory

and regulatory approvals.

This merger has further

strengthened the geographical reach of the Bank in major towns and

cities across the country, especially in the State of Kerala, in addition
to its existing dominance in the northern part of the country.

Centurion Bank of Punjab now operates on a strong nationwide

franchise of 404 branches and 452 ATMs in 190 locations across the
country, supported by employee base of over 7,500 employees.
In addition to being listed on the major Indian stock exchanges,
the Banks shares are also listed on the
Exchange.

49

Luxembourg

Stock

ACHIEVEMENT IN 2016

Business
Monitor
survey

TodayGroup

Financial ExpressErnst & Young

Award

One of India's "Most Innovative Companies"

Best Bank Award in the Private Sector category

Global
HR 'Employer Brand of the Year 2007 -2008'
Excellence Awards Award - First Runner up, & many more
- Asia Pacific HRM
Congress:
50

Business Today

'Best Bank' Award

Dun & Bradstreet

American Express
Corporate
Best 'Corporate Best Bank' Award
Bank Award 2007
The Bombay Stock
Exchange
and
Nasscom
'Best Corporate
Foundation's
Practice' Award
Business for Social
Responsibility
Awards 2007

Social

Responsibility

Outlook Money & Best Bank Award in the Private sector category.
NDTV Profit
The Asian Banker Best Retail Bank in India
Excellence in Retail
Financial Services
Awards
Asian Banker

HDFC BANK Managing Director Aditya Puri wins the

Leadership Achievement Award for India

51

52

WEAKNESSES

STRENGTH
Right strategy for the

right products.
Superior

Some gaps in range for

certain sectors.

customer

service vs. competitors.

Customer service staff need

training.

Great Brand Image

Processes and systems, etc

Products have required

Management
insufficient.

accreditations.
High degree of customer
satisfaction.
Good place to work
Lower

response

cover

time
53

Sectoral growth is
constrained by low
unemployment levels and
competition for staff

with

efficient

and

effective service.
Dedicated workforce
aiming at
making a
long-term career in
the field.

Opportunities

Threats

Profit margins will be good.

Legislation could impact.

Could extend to overseas

Great risk involved

broadly.

Very

New specialist applications.

Could seek better customer

Fast-track
development

Vulnerable to reactive
attack by major competitors

career

opportunities

Lack of infrastructure in
rural areas could constrain

on an industry-wide basis.

competition

prevailing in the industry.

deals.

high

investment.

An applied research centre

to create opportunities for
developing techniques to
provide added-value
services.

54

High volume/low cost

market is intensely
competitive.

COMPETITIVE SWOT ANALYSIS WITH ICICI BANK

STRENGTHS

WEAKNESSES

O
P
S O Strategies
W O Strategies
P
O Strength: Large Capital base.
Weakness: Workforce
R
T Opportunity: Market Expansion.
Responsiveness.
U
N
Opportunity: Outsourcing of Non
I Strategy: Deep Penetration into
Core Business.
T
I
Rural Market.
Strategy: Outsource Customer
E
Care & other E-Helps.
S
S T Strategies

W T Strategies

T
H Strength: Low operating costs
Weakness: Not Equal to
R
International Standards.
E
A Threat: Increased Competition
Threat: Entry of many Foreign
T
from others Pvt. Banks.
Banks.
S
55

Strategy: Steps to Ensure

Loyalty by old
Customers.

Strategy: Consider additional

benefits

Detailed Analysis:
i.

Strength - Opportunity Analysis.

Strength:
It is well know that ICICI Bank has the largest Authorised Capital
Base in the Banking System in India i.e. having a total capacity to
raise Rs. 19,000,000,000 (Non Premium Value).
Opportunity:
Seeing the present financial & economic development of Indian
Economy and also the

tremendous growth of the

Indian

Companies including the acquisition spree followed by them,

it clearly states the expanding market for finance requirements
56

and also the growth in surplus disposal income of Indian citizens

has given a huge rise in savings deposits from the above point it
is clear that there is a huge market expansion possible in banking
sector in India.
Strategy:
From the analysis of Strength & Opportunity the simple and
straight possible strategy for ICICI Bank could be - to penetrate
into the rural sector of India for expanding its market share as well
as leading all other Pvt. Banks from a great gap.

ii.

Strength - Threat Analysis.

Strength:
ICICI Bank is not only known for large capital but also for having a
low operations cost though having huge number of branches and
services provided.
Threat:
After showing a significant growth overall, India is able to attract
many international financial & banking institutes, which are known
for their state of art working and keeping low operation costs.
57

Strategy:
To ensure that ICICI Bank keeps going on with low operation cost
& have continuous business it should simply promote itself well &
provide quality service so as to ensure customer loyalty, therefore
guaranteeing continuous business.

iii.

Weakness - Opportunity Analysis.

Weakness:
It is well known that workforce responsiveness in banking sector is
Very low in Indian banking sector, though ICICI Bank has better
responsible staff but it still lacks behind its counterparts like HSBC,
HDFC BANK, CITI BANK, YES BANK etc.
Opportunity:
In the present world, India is preferred one of the best places for
out sourcing of business process works and many
Strategy:
58

more.

As international companies are reaping huge benefits after outsourcing there customer care & BPOs, this same strategy should
be implemented by ICICI Bank so as to have proper customer
service without hindering customer expectations.

iv.

Weakness - Threat Analysis.

Weakness:
Though having a international presence, ICICI Bank has not been
able to keep up the international standards in providing customer
service as well as banking works.
Threat:
In recent times, India has witnessed entry of many international
banks like CITI Bank, YES Bank etc which posses an external
entrant threat to ICICI Bank as this Banks are known for their art
of working and maintain high standards of customer
Strategy:
59

service.

After having new entrants threat, ICICI Bank should come up with
More additional benefits to its customer or may be even reduce
some fees for any additional works of customers.

PROJECT ON PLASTIC MONEY

60

I give the project on Plastic Money to bank.

The objective behind this

project is to increase the rich customers list in a bank. Plastic Money

title itself says the use of Credit Card and Debit Card in day to day
transaction of the business. I prepared the presentation on it and
submitted to bank and Bank already started work on this project.
Idea behind this project is to sale the bulk product. Target customer
Of this project are two parties one is Wholesaler and second is
Retailer. Due to this idea bank also sell their swipe machine to

61

wholesaler and create brand image in the market.

The idea behind this, bank give the credit card swipe machine to
wholesalers and retailers use the credit card of the bank. Bank gives
the 50 days credit to their credit card holders. So here retailers can
get benefit of long credit period and on the other side wholesalers can
get the benefit of same day payment. As a result bank got the wide
list of customers of wholesalers and retailers.

POWERPOINT PRESENTATION ON PLATIC

MONEY

62

63

Idea behind it, to convenience both the parties and create the group
transaction between them so bank can got the maximum benefit from
it. Each wholesaler has more than 15 to 20 retailers, so by this way
bank sell the bulk products.

64

This power point slide shows the how idea works behind this project.
Meet the wholesaler first and get the details about their retailers and
convince both parties and shows the benefit of using this type of
transaction by plastic money.

65

Bank always find those customers which are more involve in the
banking transaction. These type of group transaction between the
wholesalers and retailers maintain the well account in a bank.

66

67

BUSINESS STRETEGY:HDFC BANK mission is to be "a World Class Indian Bank",

benchmarking themselves against international standards and best practices
in terms of product offerings, technology, service levels, risk management
68

and audit & compliance. The objective is to build sound customer franchises
across distinct businesses so as to be a preferred provider of banking
services for target retail and wholesale customer segments, and to achieve a
healthy growth in profitability, consistent with the Bank's risk appetite. Bank
is committed to do this while ensuring the highest levels of ethical standards,
professional integrity, corporate governance and regulatory compliance.
Continue to develop new product and technology is the main business
strategy
of the bank. Maintain good relation with the customers is the main and
prime objective of the bank.

HDFC BANK business methodology emphasizes the

following: Increase market share in Indias expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and
not on quantity and delivering high quality customer service.
Leverage our technology platform and open scalable systems to deliver
more products to more customers and to control operating costs.
Maintain current high standards for asset quality through disciplined credit
risk management.
Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce banks
cost of funds.
Focus on high earnings growth with low volatility.

69

ANALYSIS & DISCUSSION

The office of HDFC BANK is blessed by brilliant and skilled
professionals and team leader who have the responsibility of handling the
Financial Corporate Consultants. HDFC Bank can play an important role in
70

this stage by helping to establish a clear understanding of the market, to

improve the perception of individual or group of people it my provide new
dimensions to this sector .
It is taken for granted that most research needs are tactical and
specific, but a few business issues exist in a vacuum. Because we understand
and have worked for years throughout the business processes, we can supply
insights and strategic solutions that are more relevant and actionable.
Whether we provide research in just one area or guide innovation from
concept inception through market introduction, we're committed to success
and profits... yours.

71

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
72

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 Companys 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.

Future Prospect
To approach in right direction with a clear site & adopt new,
innovative ideas
To increase its customer base in market & rise market share
To increase market value with new schemes & services
To expand its branches in almost all cities .

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1.Guidance from Branch Manager HDFC Bank, Manager, HDFC

Bank.
74

2.www.scribd.com
3.www.managemanteparadise.com

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