REPORT ON ORGANIZATION STUDY

DONE AT
HDFC BANK
Submitted in partial fulfillment of the requirements of Masters Programme in
Business Administration (Full Time), School Of Management Studies, Cochin
University of Science and Technology.

By

ASKAR T K
Reg. No.: 17MSMB051; S3 MBA (FT).

2017 - 2019

Guided by

Prof Dr. M BHASI

SCHOOL OF MANAGEMENT STUDIES
CUSAT

SCHOOL OF MANAGEMENT STUDIES COCHIN UNIVERSITY OF

SCIENCE AND TECHNOLOGY COCHIN-682022, KERALA.

1
 CONTENTS

TITLE PAGE No.

Introduction 5

Company Profile 15

Introduction to Project 44

Research Methodology 47

Data Analysis 65

Findings,suggestions,Conclusion 67

References 69

2
 DECLARATION

I do hereby declare that this report is a bona fide record of the organization study done by
me under the supervision of Prof Dr M BHASI, Professor, School of Management Studies and
AJU M JACOB (BRANCH MANAGER), HDFC, Thiruvalla during the academic year 2017-
2019, in partial fulfillment of the requirements for the award of the Degree of Master of Business
Administration (Full Time) of School of Management Studies, Cochin University of Science and
Technology, Kochi.

This work has not been under taken or submitted elsewhere in connection with any other academic
course.

Place: Kochi

Date: 12/07/2018 ASKAR T K

3
 ACKNOWLEDGEMENT

I wish to take this opportunity to express my sincere expression of gratitude to each and every one
who helped me in the completion of this work.

I express my gratitude to Prof Dr M. BHASI, Professor, School of Management Studies, CUSAT

for his prompt help all through my study and for his valuable suggestions, advice and
encouragement throughout the course of this work.

I owe my gratitude to AJU M JACOB, Branch Manager,HDFC Bank for his constant
encouragement during the course of my study.

I express my deep gratitude to my dear friends for their co-operation and helping hands, who were
always friends in need.

ASKAR T K

4
 CHAPTER –1
INTRODUCTION
&
ORGANIZATIONAL PROFILE

5
 GENERAL INTRODUCTION
BANKING
A bank is a financial institution that accepts deposits from the public and creates
credit. Lending activities can be performed either directly or indirectly through
capital markets. Due to their importance in the financial stability of a country, banks
are highly regulated in most countries. Most nations have institutionalized a system
known as fractional reserve banking under which banks hold liquid assets equal to
only a portion of their current liabilities. In addition to other regulations intended to
ensure liquidity, banks are generally subject to minimum capital requirements based
on an international set of capital standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the prosperous cities of
Renaissance Italy but in many ways was a continuation of ideas and concepts of
credit and lending that had their roots in the ancient world. In the history of banking,
a number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the
Berenbergs, and the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest
existing merchant bank is Berenberg Bank.

HISTORY OF BANKING IN INDIA.

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 the bank of Bengal (1809),
Bank of Bombay (1840) and the bank of Madras (1843) as independent units. The
history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient
Romans developed an advanced banking system to serve their vast trade network,
which extended throughout Europe, Asia, and Africa. In today's dynamic world
banks are inevitable for the development of a country. Banks play a pivotal role in
enhancing each and every sector. They have helped bring a draw of development on
the world's horizon and developing country like India is no exception.
The Bank has developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.
The banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to
6
each other, the objective is to lend money, which is the profitable activity of the
three. Taking deposits generates funds for lending and money transfer services are
necessary for the attention of deposits. The Bank has introduced progressively more
sophisticated versions of these services and has diversified introduction innumerable
areas of activity not directly relating.

INTRODUCTION
As per the Reserve Bank of India (RBI), India‟s banking sector is sufficiently
capitalized and well-regulated. The financial and economic conditions in the country
are far superior to any other country in the world. Credit, market, and liquidity risk
studies suggest that Indian banks are generally resilient and have withstood the
global downturn well.
Indian banking industry has recently witnessed the roll-out of innovative banking
models like payments and small finance banks. RBI's new measures may go a long
way in helping the restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with
India‟s Immediate Payment Service (IMPS) being the only system at level 5 in the
Faster Payments Innovation Index (FPII).*
In August 2017, Global rating agency Moody's announced that its outlook for the
Indian banking system was stable. In November 2017, Global rating agency
Moody's upgraded four Indian banks from Baa3 to Baa2.

MARKET SIZE

 The Indian banking system consists of 27 public sector banks, 26 private

sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban
cooperative banks and 93,913 rural cooperative banks, in addition to
cooperative credit institutions. Public-sector banks control more than 70
percent of the banking system assets, thereby leaving a comparatively smaller
share for its private peers. Banks are also encouraging their customers to
manage their finances using mobile phones.
 As the Reserve Bank of India (RBI) allows more features such as unlimited
fund transfers between wallets and bank accounts, mobile wallets are
expected to become strong players in the financial ecosystem.

The unorganized retail sector in India has a huge untapped potential for adopting the
digital mode of payments, as 63 percent of the retailers are interested in using digital
7
payments like mobile and card payments, as per a report by Centre for
Digital Financial Inclusion (CDFI).

 ICRA estimates that credit growth in India's banking sector would be at 7-

8 percent in FY 2017-18.

INVESTMENTS/DEVELOPMENTS

Key investments and developments in India‟s banking industry include:

 The bank recapitalization plan by Government of India is expected to push

credit growth in the country to 15 percent and as a result, help the GDP grow
by 7 percent in FY19. ^
 Public sector banks are lining up to raise funds via qualified institutional
placements (QIP), backed by better investor sentiment after the Government
of India's bank recapitalization plan and an upgrade in India's sovereign rating
by Moody's Investor Service.
 The RBI amends statutes thereby allowing lenders to invest in real estate
investment trusts (REITs) and infrastructure investment trusts (InvITs) not
exceeding 10 percent of the unit capital of such instruments.

GOVERNMENT INITIATIVES

 The Government of India is planning to introduce a two percentage point

discount in the Goods and Services Tax (GST) on business-to-consumer
(B2C) transactions made via digital payments.
 A new portal named 'Udyami Mitra' has been launched by the Small
Industries Development Bank of India (SIDBI) with the aim of improving
credit availability to Micro, Small and Medium Enterprises' (MSMEs) in the
country.
 Mr. Arun Jaitley, Minister of Finance, Government of India, introduced 'The
Banking Regulation (Amendment) Bill,2017', which will replace the Banking
Regulation (Amendment) Ordinance, 2017, to allow the Reserve Bank of
India (RBI) to guide banks for resolving the problems of stressed assets.
 Under the Union Budget 2018-19, the government has allocated Rs 3 trillion
(US$ 46.34 billion) towards the Mudra Scheme and Rs 3,794 crore (US$ 586.04 million)
towards credit support, capital and interest subsidy to MSMEs.

8
The government and the regulator have undertaken several measures to
strengthen the Indian banking sector.

 A two-year plan to strengthen the public sector banks through reforms and
capital infusion of Rs 2.11 lakh crore (US$ 32.5 billion), has been unveiled by
the Government of India that will enable these banks to play a much larger
role in the financial system and give a boost to the MSME sector. In this
regard, the Lok Sabha has approved recapitalization bonds worth Rs 80,000
crore (US$ 12.62 billion) for public sector banks, which will be accompanied
by a series of reforms, according to Mr. Arun Jaitley, Minister of Finance,
Government of India.
 The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has
been passed by Rajya Sabha and is expected to strengthen the banking sector.

ROAD AHEAD

Enhanced spending on infrastructure, speedy implementation of projects and

continuation of reforms are expected to provide further impetus to growth. All these
factors suggest that India‟s banking sector is also poised for robust growth as the
rapidly growing business would turn to banks for their credit needs.
Also, the advancements in technology have brought the mobile and internet banking
services to the fore. The banking sector is laying greater emphasis on providing
improved services to their clients and also upgrading their technology infrastructure,
in order to enhance the customer‟s overall experience as well as give banks a
competitive edge.
Many banks, including HDFC, ICICI, and AXIS are exploring the option to launch
contact-less credit and debit cards in the market shortly. The cards, which use near
field communication (NFC) mechanism, will allow customers to transact without
having to insert or swipe.
Mr. Bill Gates, Co-founder of Microsoft Corp, has stated that India will move quite
rapidly to a digital payments economy in as little as seven years, based on the
introduction of digital payment banks combined with other things like direct benefit
transfers, universal payments interface, and Aadhaar.

9
INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

Central co-op
State co-op Commercial Banks and Commercial Banks
Banks Banks Primary Cr.
Societies

Indian Foreign

Public Sector
Private Sector HDFC.
Banks
Banks

State Bank of Other Nationalized Regional

India and its
Banks Rural Banks
Subsidiaries

10
SEGMENTATION – TARGETING - POSITIONING of HDFC
BANK
Segment: For people who wish to invest their money in banks.

Target: Corporates, HINs, Middle Income Group etc.

Positioning: HDFC is a bank that puts the customer first

SWOT ANALYSIS
Strengths

HDFC Bank is the second largest private banking sector in India

having around 4715 branches and 12160 ATM‟s
 HDFC Bank is located in 1,174 cities in India and has more than 800 locations
to serve customers through Telephone banking
 The bank‟s ATM card is compatible with all domestic and international
Visa/Master card, Visa Electron/ Maestro, Plus and American Express. This is
one reason for HDFC cards to be the most preferred card for shopping and
online transactions
HDFC bank has the high degree of customer satisfaction when compared
to other private banks
 The attrition rate in HDFC is low and it is one of the best places to work in
private banking sector
 HDFC has lots of awards and recognition, it has received „Best Bank‟ award
from various financial rating institutions like Dun and Bradstreet, Financial
express, Euromoney awards for excellence, Finance Asia country awards etc
 HDFC has good financial advisors in terms of guiding customers towards
right investments

Weaknesses

HDFC bank doesn't have a strong presence in Rural areas, whereas ICICI
bank its direct competitor is expanding in the rural market
HDFC cannot enjoy a first-mover advantage in rural areas. Rural people are
hardcore loyal in terms of banking services.
 HDFC lacks in aggressive marketing strategies like ICICI
 The bank focuses mostly on high-end clients

11
 Some of the bank‟s product categories lack in performance and doesn‟t
have reach in the market
 The share prices of HDFC are often fluctuating causing uncertainty for the
investors

Opportunities

 HDFC bank has better asset quality parameters over government banks, hence
the profit growth is likely to increase
 The companies in large and SME are growing at very fast pace. HDFC has a
good reputation in terms of maintaining corporate salary accounts
HDFC bank has improved its bad debts portfolio and the recovery of bad
debts are high when compared to government banks
 HDFC has very good opportunities in abroad
 Greater scope for acquisitions and strategic alliances due to strong financial
position

Threats

 HDFC‟s nonperforming assets (NPA) increased from 0.18 % to 0.20%.

Though it is a slight variation it‟s not a good sign for the financial health of the
bank
 The non-banking financial companies and new age banks are increasing in
India
 The HDFC is not able to expand its market share as ICICI imposes a major
threat
 The government banks are trying to modernize to compete with private banks
 RBI has opened up to 74% for foreign banks to invest in Indian market.

MAJOR PLAYERS IN INDIA

1. HDFC BANK LTD
2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATIONAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
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 8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

BANKS' ACTIVITIES CAN BE DIVIDED INTO

Retail banking, dealing directly with individuals and small businesses;

Business banking, providing services to mid-market business;
Corporate banking, directed at large business entities;
Private banking , providing wealth management services to high-net-
worth individuals and families;
Investment banking, relating to activities on the financial markets.
Most banks are profit-making, private enterprises. However, some are
owned by the government or are non-profit organizations.

TYPES OF BANK

Commercial banks: The term used for a normal bank to distinguish it from
an investment bank. After the Great Depression, the U.S. Congress required
that banks to capital market activities. Since the two no longer have to be
under separate ownership, some use the term "commercial bank" to refer to a
bank or a division of a bank that mostly deals with deposits and loans from
corporations or large businesses.
Community banks : locally operated financial institutions that empower
employees to make local decisions to serve their customers and the partners.
Community development banks: regulated banks that provide
financial services and credit to under -served markets or populations.
Land development banks: The special banks providing long-term loans are
called land development banks (LDB). The history of LDB is quite old. The
first LDB was started at Jhang in Punjab in 1920. The main objective of the
LDBs is to promote the development of land, agriculture and increase the
agricultural production. The LDBs provide long-term finance to members
directly through their branches
only engage in banking activities, whereas investment banks were limited

13
Credit unions or co-operative banks: not-for-profit cooperatives owned by
the depositors and often offering rates more favorable than for-profit banks.
Typically, membership is restricted to employees of a particular company,
residents of a defined area, members of a certain union or religious
organizations, and their immediate families.
Postal savings banks: savings banks associated with national postal systems.
Private banks: banks that manage the assets of high-net-worth individuals.
Historically a minimum of USD 1 million was required to open an account,
however, over the last years, many private banks have lowered their entry
hurdles to USD 350,000 for a private investor.
Offshore banks: banks located in jurisdictions with low taxation
and regulation. Many offshore banks are essentially private banks.
Savings bank: in Europe, savings banks took their roots in the 19th or
sometimes even in the 18th century. Their original objective was to provide
easily accessible savings products to all strata of the population. In some
countries, savings banks were created on public initiative; in others, socially
committed individuals created foundations to put in place the necessary
infrastructure. Nowadays, European savings banks have kept their focus on
retail banking: payments, savings products, credits and insurances for
individuals or small and medium-sized enterprises. Apart from this retail
focus, they also differ from commercial banks by their broadly decentralized
distribution network, providing local and regional outreach – and by their
socially responsible approach to business and society.
Building societies and Landesbanks: institutions that conduct retail
banking.
Ethical banks: banks that prioritize the transparency of all operations
and make only what they consider to be socially responsible investments.
A director internet-only bank is a banking operation without any physical
bank branches, conceived and implemented wholly with networked
computers.

14
 COMPANY PROFILE

ABOUT THE BANK:

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
Ltd. 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 Ltd. 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

15
consumer franchise, HDFC Ltd were ideally positioned to promote a bank in the
Indian environment.

LISTING:
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.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. It has a wide network of 4,715 branches
(As per Financial Year 2017) spread across the country. All branches are linked on
an online real-time basis. Customers in most of these locations are also serviced
through Telephone Banking. The Bank‟s expansion plans take into account the need
to have a presence in all major industrial and commercial centers, where its
corporate customers are located, as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches where the NSE/BSE has a
strong and active member base.

The Bank also has a wide network of 12,260 ATMs (As per Financial Year 2017)
spread across India. HDFC Bank‟s ATM network can be accessed by all domestic
and international Visa/MasterCard, Rupay, Visa Electron/Maestro, Plus/Cirrus and
American Express Credit/Charge cardholders.

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build
sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite.

16
The bank is committed to maintaining the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Bank's business philosophy is based on four core values - Operational Excellence,
Customer Focus, Product Leadership and People and Sustainability.

MISSION STATEMENT OF HDFC BANK

 World Class Indian Bank.
 Benchmarking against international standards.
 To build sound customer franchises across distinct businesses
 Best practices in terms of product offerings, technology, service
 levels, risk management and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintaining the highest level of ethical standards,
professional integrity, and regulatory compliance. HDFC Bank's business
philosophy is based on four core values such as:-

Operational excellence.

Customer Focus.

Product leadership.

People.

The objective of the HDFC 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 requirements. The HDFC Bank plus and the investment
advisory services programs have been designed keeping in mind needs of customers
who seek distinct financial solutions, information and advice on various investment
avenues.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online

17
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 (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
bank. The Bank's business is supported by scalable and robust systems which ensure
that our clients always get the finest services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.

BUSINESS STRATEGY

Increasing market share in India‟s expanding banking.

Delivering high-quality customer service.

Develop innovative products and services that attract targeted customers and
address inefficiencies in the Indian financial sector.

Maintaining current high standards for assets quality through disciplined credit risk
management.

PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain a market leader in mortgages. Its outstanding loan portfolio covers well over
a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing-related credit facilities. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

18
FUNCTIONAL AREAS

FINANCE DEPARTMENT
In this modern era it is very easy to know how much important the finance is in the
business. The current position of the market is totally different from ancient where it
was very easy to get the finance. But now a days it is not so, it is very difficult task
to raise funds from market. As today people are facing lot of problem and have less
confidence on the market so it is difficult to raise fund without proper planning.
For the bank as it is a Financial Institution we can consider finance as lifeblood of
this business. The company should manage to get sufficient finance. The company
should use to keep proper planning for the finance of its own and also of the large
no. of depositors who are there with the bank. We can define financial management
as a task of acquisition and utilization of funds needed in the business in a manner so
that organizations goal can be achieved. In HDFC Bank, its chief Financial Officer
and Treasurer manage the finance. Due to proper policies and separate management
the company can have proper operation of finance.
ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK
For the bank finance itself is the product now it is not an easy task to manage this
finance. As bank has to keep watch on the deposits of its millions of customers and
also it has to manage its own large financial base. As in recent it is popular “No
finance no business”, for the bank “Finance itself is business”. There are different
types of organizational structure such as group organization, line organization, line
and staff organization. HDFC Bank has line of authority and line of authority is
vertical i.e. authority passes from top to bottom and responsibility passes from
bottom to top level management.
As HDFC Bank is very big company and it has large cliental base so it is very
difficult and complicated to manage its finance in proper way. There we need of
concrete and proper policies to have proper management of it. Because of big size of
the bank one cannot manage all the accounts of it alone. So, company has to appoint

19
many different persons so that there is proper maintenance of the funds of different
persons is possible.

HUMAN RESOURCE DEPARTMENT

Human Resource Management helps managers recruit, select, train and develop
members for an organization. Obviously, HRM is concerned with the people‟s
dimension in organizations. Work force of an Organization is one of the most
important inputs of components. It is said that people are our single most important
assets. Because of the unique importance of human resource and its complexity due
to ever changing psychology, behavior and attitudes of men and women at work, in
all business concerns, there is one common element. I.e. Human personnel function,
i.e., manpower management function is becoming increasingly specialized. The
personnel function or system can be broadly defined as the management of people at
work-management of managers and management of workers. Personnel function is
particularly interested in personnel relationship and interaction of employees-human
relations.
In a sense, management is personnel administration. Management is the
development of people, and not mere direction of material resources. Human capital
is the greatest asset of a business enterprise. The essential ingredient of management
is the leadership and direction of people. Each manager of people has to be his own
personnel man. Personnel management is not something you really turn over to
personnel department staff.
RESPONSIBILITIES OF HUMAN RESOURCE DEPARTMENT
 HRD maintain daily attendance record through branch manager via E-mail.
 Take decisions for approval regarding leave notes.
 He takes the decision related to the recruitment, selection and training of the
candidates. He talks to the consultant related to the recruitment of the
qualified candidates. He also does screening of the candidates, shortlist the
candidate and takes the first round of the interview.

20
  He maintains the database of the candidates to come for an interview. He also
maintains personal file of each employee. He also completes the joining
formalities of each new employee.
 They are taking surprise visit in every branch and collect information about
employees.
 He is responsible for the monthly salary of the employees as per their
attendants and passing to the Branch Manager.
HUMAN RESOURCE PLANNING
This is handled by doing the planning at the beginning of every year. At the end of
the year, the Human Resource department from each Branch receives the
requirement for the person for whole year. Then the planning of recruitment and
training is done by training manager and recruiting manager which is approved from
Head of HR Department.
RECRUITMENT
Recruitment is a process of searching for prospective candidates for the given job in
the industry. As we know it is very important for an industrial concern to have
efficient and effective personnel with right quality and at right time and at right
place available whenever they are needed.

SOURCES OF RECRUITMENT
 Personal data of candidates and data bank maintain by the HR department
 Campus Recruitment.
 Company‟s own website.
 Placement consultants.
 Advertisement in the newspapers
 Employee reference.

RECRUITMENT PROCESS

 Selection is the process of taking individuals out of the pool of job applicants
with requisite qualifications and competence to fill jobs in the organization. It
21
 is define as the process of differentiating between applicants in order to
identify and hire those with a greater likelihood of success in a job.
 Selection is based on probation base, they are taking experienced person for 6
months‟ probation and for fresher the probation period is 1 year.
 While the selection of the senior level post, is taken by head office at
Mumbai.

TRAINING AND DEVELOPMENT

 Training aims at increasing the aptitudes, skills and abilities of workers to

perform specific job. It makes employees more effective and skillful. In
present dynamic world of business training is more important there is an ever-
present need for training men. So that new and changed techniques may be
adopted. A new and changed technique may be taken as an advantages and
improvement affected in the old methods.
 Training is learning experience that seeks relatively permanent change in an
individual that will improve his/her ability to perform on the job.
 They provide “on the job” training to their employees in the branch as they
select these employees for selling various products of bank by direct
marketing. Whenever they select new candidates for any post, they use to give
them on the job work.
 In case of sales persons to distribute their various products, in the beginning
the person has to work under the observation of his senior then they have to
go in market to have their own experience.
 The time for training program for the candidate is depends up on the relevant
position of his work area. They also provide training related to customer care
and communication.

PERFORMANCE APPRAISAL

 An organization‟s goals can be achieve only when people put in their best
efforts. Performance appraisal may be understood as the assessment of an
22
 individual‟s performance in a systematic way. It is define as the systematic
evaluation of the individual with respect to his/her performance on the job
and his/her potential for development.
 To appraise the performance of the employee they have developed a credit
system on the basis of the given target to the employee. After appraising the
performance of the employee they put the grade of each employee in the
following grade criteria.

EMPLOYEE REMUNERATION AND INCENTIVE PAYMENTS

 Remuneration is the compensation an employee receives in return for his/her

contribution to the organization. Remuneration occupies an important place in
the life of an employee.
 At HDFC, remuneration of an employee comprises – wages and salary,
incentives.
WAGES AND SALARY

 A part from various incentives and benefits, the personnel are compensated
only in terms of wages and salaries. A proper compensation in terms of this is
necessary for motivation employees for their continuous improved
performance. For all this, it is required that wages and salaries are provided
well by organization.
 Wages and salary refers to the establishment and implementation of sound
policies and practices of employee‟s compensation. A wage and salary is the
remuneration paid for the service of labor in production periodically to an
employee. The bank is in service industry so the salary is given on monthly
basis. They use to hire certain salesman on commission base and they are
provided their salaries on commission base. While other permanent staff are
being given monthly salaries. As HDFC bank is reputed bank in market the
pay scale are as per the standard.

23
  Sales executives (coax) are being given salary of 6000 to 8000 per month.
While sales officer‟s salary ranges from 15000 to 18000 per month. HDFC
bank is also giving attractive incentives as per the target. The salary of branch
manager is around 35000 per month.

MARKETING MANAGEMENT
The activities of a company associated with buying and selling a product or service.
It includes advertising, selling and delivering products to people. People who work
in marketing departments of companies try to get the attention of target audiences by
using slogans, packaging design, celebrity endorsements and general media
exposure.
Ajay Kelkar, Head, Marketing, HDFC Bank, said that these initiatives are especially
targeted at those consumers who are not aware about the bank's various value added
services such as direct banking facilities.
"We are going to demonstrate the advantages of net banking and mobile banking, as
these concepts are relatively new to people living in smaller towns and cities," said
Kelkar. The bank has also launched another initiative called Business Ki Baten,
which is targeted at areas where the bulk of the population comprises small
businessmen. Kelkar said that the bank would get experts to talk on a number of
issues such as value-add tax and sales tax. Bank can measure the result of a
campaign through the sales that they generate and the customers that are added.
There is a clear return on investment, which from a functional point of view gives
the team a stronger voice. Bank has also been able to reduce their ad spends by
about 10-15 per cent and has also reduced the cost of acquisition Bank's focus in
future would be to enhance its database marketing initiatives. Bank plan to invest
close to Rs 12 crore to create the environment that is required to support customer
intelligence that leads to data based marketing.

24
HDFC has chartered an extensive Customer Lifecycle based marketing campaign
calendar for this and the forthcoming fiscal. Fractal, which specializes in predicting
the behavior of the customers in the areas of risk and marketing, would be
partnering HDFC Bank's marketing team in various initiatives of growing the retail
business quickly and cost effectively.
HDFC has been using analytics for taking informed marketing decisions. Fractal
will help the bank use information to reach new customers and to build, nurture and
maximize lasting customer relationships. Fractal will also help the bank solve the
problem of ever-increasing customer acquisition costs and reducing customer
loyalty. The marketing programs would involve acquisition of customers profitably
by reducing campaign costs, cross selling various asset and liability products to the
existing customers, thereby, leveraging the existing relationships and proactively
retaining existing customers. Fractal's analytics-based marketing solutions span with
the entire lifecycle of customer relationship right from customer acquisition to
customer retention to customer value management and is expected to give HDFC an
upper hand in understanding the needs and circumstances of their customers.

MARKETING INITIATIVES TAKING BY THE BANK

HDFC Bank is possibly the only bank in India, and one of the very few in Asia, to
have embarked on a data-led marketing analytics campaigns initiative, using
marketing automation technology provided by Unica. Unica has been recognized by
Gartner as the leading player in this field. Through this tool, we have been able to
intelligently use the 4-5 terabytes of customer data available in its warehouse. We
have set up a team to conduct marketing campaigns in a scientific manner using
customer data, usage patterns, preferences, lifecycle, etc, the bank also conducts
event-based marketing.
These initiatives also complement our media-based marketing as well as on-the-
ground marketing activities, which remain important in the bigger scheme of things.
However, the marketing analytics initiative enables us to measure the efficacy of the

25
campaigns, testing every campaign every step of the way, experimenting with
creatives, messages, media, etc. There are learnings that can immediately be
absorbed and incorporated in the next campaigns, and these campaigns in a way
provide us with information about customer choices and preferences that can be
used for mass media communication, making those more effective. HDFC Bank has
been predominantly using direct mailers, e-mails, and SMS for communicating our
message to our target audience as they are the most cost-effective routes of
addressing our core target audiences with maximum degree of customization
possible.
MARKET SEGMENTATION
Market Segmentation is defined as the process of splitting customers, or potential
customers, in a market into different groups, or segments, within which the
customers share a similar level of interest in the same or comparable sets of needs
satisfied by a distinct marketing proposition; it is also explained as a marketing
technique that targets a group of customers with specific characteristics, i.e. a
particular group that has its own distinct customer profile and buyer characteristics
so that for marketing purposes, it can be targeted separately from other segments of
the market.It is a key ingredient for successful marketing as it simplifies the
targeting, positioning and the planning process.
A true Market Segment meets all of the following criteria: it is distinct from other
segments (heterogeneity across segments), it is homogenous within the segments
(exhibits common attributes), it responds similarly to a market stimulus and it can be
reached by a market intervention. Market Segmentation simplifies the firm‟s
product, pricing, promotion and distribution strategies and also facilitates planning
and organizing function of management more easily and cost effectively; but it
requires a thorough understanding of the customer‟s needs. It is referred as a tool for
defining markets and thereby allocating resources; it uses statistical techniques
called factor analysis and cluster analysis to combine attitudinal and demographic
data to develop segments that are easier to target.

26
Market Segmentation can be done on the basis of the location (Geographic
Segmentation); on the basis of age, income, gender and other measurable factors
(Demographic Segmentation); on the basis of lifestyle, likes, dislikes, taste and
preferences (Psychological Segmentation); and according to the history, loyalty and
responsiveness (Behavioral Segmentation).
A business must analyze the different needs of the market segments; their internal
strengths and weaknesses; external opportunities and threats; and various others
factors like the mission, vision, values, beliefs, attitudes, norms and standards of the
organization; as well as the competitors strategy, social and cultural factors,
economic environment, global perspective, demographic environment, technological
and political / legal aspects before deciding their own niche.
Philip Kotler mentioned five criteria for an effective segmentation which states that
Segmentation should be: -
1. Measurable: - it should be possible to determine the values of the variable
used for the segmentation.
2. Relevant: - it should justify the expected profits and the growth potential.
3. Accessible: - the target customers must be reachable and servable for the
organization.
4. Distinguishable: - the target audiences must be diverse and able to show
different reactions to different marketing mix.
5. Feasible: - the firm must have an ability to draw an effective marketing
program for its customers.

Market segmentation is an effort to increase a company‟s precision marketing. A

market segment consists of large identifiable group within a market with similar
wants, purchasing power, buying attitudes or buying habits. As HDFC bank is a
service sector industry they introduce different schemes for different people. Each
person is different in nature and each have differed criteria for investment like
risk factor, return, liquidity, tax benefits etc.
27
TARGET MARKETING
“Market Specialization is a business term meaning the market segment to which a
particular good or service is marketed. It is mainly defined by age, gender,
geography, socio-economic grouping, or any other combination of demographics.It
is generally studied and mapped by the organization through list and reports
containing demographic information that may have an effect on the marketing of
key products / services. A product focusing on a specific target market contrasts
sharply with one, following the market strategy of mass marketing”.
Targeting can be done by the firms by adopting a logical and systematic
methodology / steps. Which are as follows: -
STEP 1: - Identify the potential buyers: - Through proper market research and
market segmentation (it is the process of pulling apart the entire market as a whole
and separating it into manageable disparate units based on various demographic,
political, economic and social factors; it can also be customer / product /
competition related segmentation).
STEP 2: - Select the target audiences: - The factors that influence Targeting are the
Internal and External Environment. Internal environment includes the mission,
vision, values and objectives of the firm; whereas; External factors are the social,
cultural, economic, global, demographic, natural, task, technological, political and
legal environment. Through appropriately compiling the customers profile to decide
the 4 P‟s – Product, Price, Place and Promotion and obtain the demographic,
psychological, geographic and behavioral information of the buyer. Targeting is
deciding the potential buyers, products to be offered and appropriately positioning
each product to the segment.
STEP 3: - Proper positioning of the Product: - After developing an appropriate
segmentation and target strategy; positioning strategy can be worked out effectively.
Positioning enables the firm to create a positive image, gain competitive advantage
and place the brand in the customers mind to
enhance their goodwill and become the most preferred brand.
28
Positioning can be in the form of product, price, promotion, service, distribution
channel, image, people, advertising, publicity, public relation or selling
differentiation.
Positioning Strategy
“Positioning is the act of designing the company‟s offering and image to occupy a
distinctive place in the target market‟s mind.
Positioning starts with a product. Positioning is not what you do to a product but
what you do to the mind of the prospect. That is, you position the product in the
mind of prospect. A company‟s differentiating and positioning strategy must change
as the product, market, and competitors change over time. Once the company has
developed a clear positioning strategy, it must communicate that positioning
effectively.
HDFC bank has positioning strategy of “Continuing a Tradition of Trust”. It is
accurate positioning strategy because it signifies a trust with its clients. Here is
special Relationship Manager dedicated towards customer service and satisfaction
and give them guidance about various schemes which helps them to get right
scheme which suit their needs. In this way it continues to maintain a trust with its
clients.

INCENTIVE
In HDFC, employees get incentives on the basis of the target given to each
employee and their area of work. They have developed the incentive structure for
the employees on the basis of point system. All the employees get the incentive in
the form cash reward.

EMPLOYEES BENEFIT
The employees of HDFC automatically become HDFC bank salary account Holders
with special benefit and privileges and receive instant salary credit. The benefit
include international debit card, corporate card with individual liability (CCIL),

29
access to phone banking and internet banking, demat accounts, and host of other
services to complement their savings account.

MOTIVATION
Motivation is willingness to do something conditioned by this action‟s ability to
satisfy some need. Motivation is given by the responsible person, like branch
manager or team manager for better performance in the department.

DISPUTES AND THEIR RESOLUTION

Disputes are common in organization. In practice, disputes mainly relate to the
target only because if any employee is not achieving target he/she will not eligible
for incentive which creates frustration among them. Every employee is free to talk
to the head of the particular department if they have any problem related to the job.
Firstly, the problem is solved by the head of the particular department and if the
problem does not solved by the head of that department then it is addressed to the
HR Manager.

30
MANAGEMENT

The Managing Director, Mr. Aditya Puri, has been a professional banker for over
25 years, and before joining HDFC Bank in 1994 was heading Citibank's
operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth
of experience in public policy, administration, industry, and commercial banking.
Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting
and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.

PRODUCTS OFFERED FROM HDFC BANK


RETAIL BANKING (PERSONAL BANKING)
HDFC Bank is a leading Indian retail bank. Innovative products and smart
banking solutions make us the banker of choice for millions of users each
day. With a nationwide network of branches, ATMs and 240,000+
merchants (point-of-sale) accepting HDFC Bank credit and debit cards, they
continue to redefine banking convenience.
Personal banking solutions from HDFC Bank offer smart features and
benefits to ensure that you make the most of your relationship with them.
Their retail banking products and services are designed to meet the end-to-
end needs of all types of users. From zero balance savings accounts to
customized salary accounts, flexible home and personal loans to 360 NRI
Banking services, HDFC Bank is for everybody.
HDFC Bank is preferred because it offers the entire banking experience
under one roof. Amazing offers, customized solutions, minimum paperwork
and quick turnaround times are some of the hallmarks of HDFC Bank that
has made it the banker of choice in India.

31
 ACCOUNT & DEPOSITS SERVICE

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No
matter what a customer's need and occupational status, they have a range of
solutions that are second to none. Whether you're employed in a company and
need a simple Savings account or run your own business and require a robust
banking partner, HDFC Bank not only has the perfect solution for you but also
can recommend products that can augment your planning for the future. Their
services include:-

Saving accounts.

Current accounts.

Fix 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 person's occupation, bank
have confidence that person will find the perfect banking solution. There some
saving accounts like - Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw

Demand Drafts and withdraw cash. Check up on your balances from the comfort of
your home or office through Net Banking, Phone Banking, and Mobile Banking. If
you need money urgently then you can take money from the ATM machine. There
are more than 12000 ATM centers across the country.

Saving Max Account

Savings Max account is filled with maximum benefits to make the customer‟s
banking experience a pleasure. The Average Monthly Balance should be Rs 25000.
The offers include free lifetime Platinum Debit Card and every transaction with
this card gives 1% cashback.

Women’s Savings Account
A savings account exclusively for the women‟s, it includes 0.5% cash back on
the Women‟s Advantage Debit Card Transaction.

32
 
Kid's Advantage account

This account offers several benefits to the account holder. It has a daily shopping
limit of Rs. 10000 and preferential rates on loans. It also includes Free Education
Insurance cover of Rs. 1,00,000.


Salary Accounts

Customers can hold a Salary Account irrespective of the organization they work
for. The salary shall be credited to this account and if the salary is not credited
from the company‟s account for 3 consecutive months, the account shall be
converted to a Savings account and requires maintaining a minimum balance of Rs
10000. The salary accounts are as follows:

Classic salary account.


Regular salary account.

Premium salary account.

Defence salary account.

Basic Savings Bank Deposit Account-

Salary Salary Family account.

Reimbursement salary account


Current Account

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,
bank‟s priority services have become the benchmark for banking efficiency.

33
 
Plus Current Account

HDFC Bank plus Current Account gives the power of inter-city banking with a
single account and access to more than cities. Plus Current Account requires
maintaining an average quarterly balance of Rs. 100,000.

Trade Current Account

In today's changing business requirements, arises a need to transfer funds across

cities, and time is of the essence. HDFC Bank Trade Current Account gives the
power of inter-city banking with a single account.

From special cheques that get treated at par with local ones in any city where bank
have a branch, to a free account to account funds transfer between HDFC Bank
accounts, to free inter-city clearing of up to 50 lakhs per month, bank's priority
services have become the benchmark for banking efficiency. Trade Current
Account requires maintaining an average quarterly balance of Rs. 40,000.


Premium Current Account

Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking
account that requires an average quarterly balance of only Rs. 25,000, offers
Payable-At-Par cheque book facility & FREE inter-city clearing transactions
across our network up to Rs.25 Lacs per month.

A Current Account with the benefits of accessing the account from a large network
of branches, and through direct access channels - the phone, mobile, Internet and
through the ATM.


Regular Current Account

A Current account is ideal for carrying out day-to-day business transactions. With
the HDFC Bank Regular Current Account, the customer can access account
anytime, anywhere, pay using payable at par cheques or deposit cheque at any
HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS
collections for faster collections in the account. Regular Current Account requires
maintaining an average quarterly balance of only Rs. 10,000.
34
With a vast network of branches in cities all over the country and access to a
multitude of ATM's, the customer can keep track of all transactions anytime.


Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that

allows depositing the reimbursements received from company/organization on a
monthly basis.


Max Current Account

Maximum benefits and minimum hassles for a customer with Max Current
Account with a Rs. 5 lakhs average quarterly balance requirement, bank present to
the world of privileges that helps the business expand and grow.


Fixed Deposits Service

Long-term investments form the chunk of everybody's future plans. An alternative

to simply applying for loans, fixed deposits allow borrowing from own funds for a
limited period, thus fulfilling needs as well as keeping savings secure.

People can invest his/her money into either in security market or gold or mutual
fund or into a fix deposits. People always go to that way where he/she can get
more benefits and minimize risks. So, for this purpose, he has a better chance to
deposits money into the fixed deposit. If people believe in long-term investments
and wish to earn higher interests on his/her savings, invest money in HDFC bank
Fixed Deposit. Flexibility, Security, and High Returns all bundled into one
offering.


Regular Fix Deposit

HDFC Regular Fix Deposit account offers Easy Investment with High Returns,
great rates, flexibility, and security. The account also offers a higher rate of interest
on Fixed Deposit for Senior Citizen.

35
 
Demat Account Service

Nowadays share market is becoming is the main occupation of the person. So to

avoid faulty processes demat account is really most important for the share market
and for the safety of shares it is most important. HDFC BANK is one of the
leading Depository Participant (DP) in the country with over 8 Lac demat
accounts.

HDFC Bank Demat services offer a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit. HDFC BANK is
Depository participant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).


Safe Deposit Locker

A Safe Deposit Locker with HDFC Bank is the solution to person's fear. Located
at select branches in cities all over the country, bank's lockers ensure the
safekeeping of valuables. An individual (not minor), firms, limited company,
associations, clubs, trusts, societies, etc may hire a locker.

LOAN SERVICES
A bank loan is the most common form of loan capital for a business. A bank loan
provides medium or long-term finance. The bank sets the fixed period over which
the loan is provided (e.g. 3, 5 or 10 years), the rate of interest and the timing and
amount of repayments.

The bank will usually require that the business provides some security ("collateral)
for the loan, although in the case of a start-up this security often comes in the form
of personal guarantees provided by the entrepreneur. Bank loans are good for
financing investment in fixed assets (such as plant & machinery, land, and
buildings). They are generally charged at a lower rate of interest that a bank
overdraft. The interest rate can be either fixed (e.g. 8% per year on the amount
outstanding) or variable (where the interest rate varies depending on the Bank of
England base rate).

36
However, a bank loan provides less flexibility than a bank overdraft. The business
commits to meeting the bank loan repayments and interest – which it needs to do
whether or not the cash flow position is good. A failure to meet the terms of the
bank loan may lead to the bank putting the business into insolvency. Bank loans
tend not to be offered to start-ups or businesses with a track record of poor
profitability and cash flow. Such businesses are perceived as being high-risk by
banks that, as a result of the credit crunch, are more cautious about the kind of
lending they offer.

Personal Loan

HDFC Bank‟s Personal Loans are easy-to-get, quick and convenient. A customer
can avail HDFC Bank personal loan for a variety of purposes, including travel,
wedding expenses, home renovation, in a medical emergency or to buy a gadget.
The bank provides personal loans with hassle-free documentation and superfast
disbursals. Pre-approved HDFC Bank customers can get loan disbursed in 10
seconds flat. Other customers can get money in just 4 hours. Besides speedy and
transparent processing, the Bank offers a host of other benefits on its personal
loans including flexible tenures and competitive interest rates.


Home Loan

HDFC Bank offers among the most feature-packed home loans in India. Besides
free document storage, get approvals on your home loan even before you choose a
property. We also provide guidance on buying a property when you apply for
home loans.

With quick processing and attractive interest rates, HDFC Bank‟s home loans are
hassle-free and customer-friendly. In addition, women who apply for home loans
are eligible for lower interest rates.

Vehicles Loan
Types of vehicles loan offered by the Bank are:

Two wheeler loans.

New car loan.

Used car loan.

Tractor loan (for agriculture business).

Commercial vehicle loan.

37
So, as per the requirement of the person, there are these types of loans are available
this are at the cheap rate and hassle-free from more documentation and other
procedure.

Gold Loan

Gold loans are the quickest way to get funds for personal or business requirements.
The funds from gold loans can be used for weddings, education, business
expansion or any other similar purpose. With minimal documentation and secure
storage, HDFC Bank gold loans are a simple funding option to meet your needs.

CARD SERVICES

HDFC Bank‟s cards are an ideal choice for safe, affordable and smart form of
transactions. These cards are a hassle-free way of paying bills quickly, shopping
safely, making money-savvy decisions, to earn miles and get discounts. Be it a
retail store, petrol pump, movie complex, shopping website or online travel portals,
HDFC bank‟s debit cards, credit cards and GiftPlus prepaid cards will be sure to
bring a smile on our face with a host of discounts, cash-backs, and rewards. The
various cards offered by HDFC Bank are as follows:
 Credit cards

 Debit Cards

 Prepaid Cards

 Forex Cards

 Credit Card Reward Program

 Loan on Credit Card

PAYMENT/APP SERVICE

CHILLR

Chillr is India's first multi-bank mobile payment app that links directly to our bank
account. It allows us to send money instantly from your HDFC Bank account to
anyone in your phone book or to a beneficiary using their „Account number &
IFSC code' or „UPI ID‟. We can also recharge, pay bills, split bills, or request
money on Chillr. Sending money on Chillr is as easy as sending a text! Add all our
bank accounts on Chillr, so that we can use just one app to manage all your
accounts.


PAYZAPP
38
HDFC Bank PayZapp, is a complete payment solution, giving us the power to pay
in just One Click. With PayZapp, we can shop on our mobile at partner apps, buy
movie tickets, groceries, compare and book flight tickets and hotels, shop online
and get great discounts at SmartBuy, send money to anyone in our contact list or to
our bank account, pay bills and recharge your mobile, DTH and data card and
many more. We can link your Debit and Credit Card, of any Bank, to PayZapp and
enjoy the most convenient and secure way of payment.

IMPERIA/PREFERRED/CLASSIC BANKING

These services are provided by the bank to their privileged customers. The
customers are categorized based on different classifications. These customers are
allotted a Personal Banker (PB) and a Relationship Manager (RM) based on their
profile. The classifications are as follows:

IMPERIA: Most privileged customers.
Maintain Rs 10/15 lakhs as their minimum average quarterly balance in the
savings/ current account respectively.

PREFERRED: Higher to Classic Customers
Maintain a quarterly average balance of Rs 2/5 lakhs in the
savings/current account respectively.

CLASSIC
Maintain Average Monthly Balance of Rs1 lakh in their Savings account

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.

39
 CHAPTER-2
INTRODUCTION TO THE PROJECT

40
 LITERATURE REVIEW
Rakesh H M & Ramya T J (2014) - In their research paper titled “A Study on
Factors Influencing Consumer Adoption of Internet Banking in India” tried to
examine the factors that influence internet banking adoption. Using PLS, a model
is successfully proved and it is found that internet banking is influenced by its
perceived reliability, Perceived ease of use and Perceived usefulness. In the
marketing process of internet banking services marketing expert should emphasize
these benefits its adoption provides and awareness can also be improved to attract
consumers‟ attention to internet banking services.

Ashima Tandon, Manisha Goel and Sunita Bishnoi(2016), Internet banking is

regarded as a delivery channel, which over a period of time has gained recognition.
It, in fact, has experienced growth in many countries and has changed the
traditional way of banking. This channel has provided a competitive advantage to
the banks. With the help of internet banking, the consumer has an access to number
of services just at the click of a mouse. The present study is based on the responses
of 450 consumers surveyed in Delhi and National Capital Region to understand the
consumer awareness towards internet banking and the respondents were selected
from the public, private and foreign sector banks. To achieve the objectives of the
study a questionnaire with five-point Likert scale consisting of various aspects
related to internet banking was designed and random sampling method was
adopted to collect the responses. The results of the study indicate that the level of
consumer awareness is higher in case of private and foreign sector banks in
comparison to public sector banks. Public sector banks need to focus on their
working in order to battle with the private and foreign sector banks.

"Effect of IT-based services on customer satisfaction in banking industry":

Sachin Mittal and Rajnish Jain (2010). In this research paper is basically a
literature review of banking industry and effect of IT-based services on customer
satisfaction. The study highlights customer satisfaction levels among young
customers in banking industry. A survey indicates the gap between customer‟s
expectations and perception with respect to IT-based banking services. Findings
indicated need to improve the IT-based services for enhancing customer
satisfaction.

41
TITLE OF THE STUDY
A study on Corporate salary account of the people residing in Thiruvalla.

PURPOSE OF THE STUDY IN THE FIRM

The purpose of the study is to understand the knowledge and awareness of the
people regarding the salary accounts provided by the HDFC bank. This study also
focuses on the different corporates and companies with whom the company likes to
promote their Salary accounts. This study is important as Salary accounts plays a
key role in the growth of HDFC bank
The study is aimed towards studying the customer‟s perception towards Salary
account pf HDFC bank.

OBJECTIVE OF THE STUDY

 To analyze the awareness among customers regarding HDFC salary

accounts
 To know about the net banking services provided by HDFC bank

 To know why customers are opting or not opting for HDFC salary

account.

To know the popularity of net banking services among customers
of HDFC bank.

42
SCOPE OF THE STUDY
The area where the study has been conducted is Thiruvalla

BENEFICIARY
HDFC Bank Ltd. will be the sole beneficiary of this research study as it learns the
customer‟s perception towards internet-banking provided by the bank. It will help
the bank to understand the area which it should upgrade to make it more
convenient for the customers & the area which requires improvement.

LIMITATIONS

 The data was collected from a minimum Time constrain.

 The data was collected from different employees in Thiruvalla and many

were reluctant to answer the questionnaire.

43
 CHAPTER- 3
RESEARCH METHODOLOGY

44
RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through search for new
facts in branch of knowledge. Market research specifies the information required to
address these issues, designs the method for collecting information, manage and
implements the data collection process analyses the results and communicates the
findings and their implications.

Research problem is the one which requires a researcher to find out the best
solution for the given problem that is to find out the course of action, the action;
objectives can be obtained optimally in the context of a given environment.

RESEARCH DESIGN
A framework or blueprint for conducting the research project. It specifies the
details of the procedures necessary for obtaining the information needed to
structure and/or solve research problems. A good research design lays the
foundation for conducting the project. A good research design will ensure that the
research project is conducted effectively and efficiently. Typically, a research
design involves the following components or tasks:
 Define the information needed.

 Design the research

 Specify the measurement and scaling procedures.


Construct and present a questionnaire or an appropriate form for data
collection.

Specify the sampling process and sampling size.

Develop a plan of data analysis.

DATA COLLECTION
Primary Data was the only method used for the study. The mode of collecting
primary data is questionnaire method. The questionnaire was filled by customers
either through online or offline method. Online method is by sending an online
form to the customers to fill out and offline method is by filling the questionnaire
physically by the customers.

45
SAMPLE SIZE
Data‟s are collected from 100 customers using questionnaires including both
online and offline method for studying customer perception on salary accounts.

ANALYSIS AND INTERPRETATION

After the data collection, it was compiled and tabulated manually with the help
of Microsoft Excel

46
 CHAPTER- 4
DATA ANALYSIS

47
DATA COLLECTION

GENDER COMPOSITION

GENDER NUMBER OF PERCENTAGE

RESPONDENTS
Male 70 70%
female 30 30%
TOTAL 100 100%

GENDER

30%

Male
Female

70%

ANALYSIS & INTERPRETATION

Majority of the respondents were from Male category which is of (70%).

48
AGE COMPOSITION

AGE NUMBER OF PERCENTAGE

RESPONDENTS
Less than 20 11 11%
20- 35 37 37%
35-50 28 28%
50-65 15 15%
Above 65 9 9%
TOTAL 100 100%

AGE COMPOSITION

9% 11%
Less than 20
15%
20-35
35-50
37% 50-65
Above 65
28%

ANALYSIS & INTERPRETATION

From the data collected it was found that majority of the respondents were
from the age category of 20-35 that is (37%) followed by the age category of
35-50 which is of (28%.)

49
OCCUPATION COMPOSITION

OCCUPATION NUMBER OF PERCENTAGE

RESPONDENTS
PRIVATE 58 58%
GOVERNMENT 42 42%
TOTAL 100 100%

OCCUPATION

42% Private

58% Government

ANALYSIS & INTERPRETATION

From the data collected above the majority of the respondents are private
employees 58% and the government employees consist of (42%).

50
BANK COMPOSITION

BANK NUMBER OF PERCENTAGE

RESPONDENTS
SBI 28 28%
ICICI 12 12%
AXIS 8 8%
HDFC 18 18%
FEDERAL 9 9%
OTHERS 25 25%
TOTAL 100 100%

BANK
BANK

28
25

18

12
9
8

SBI ICICI AXIS HDFC FEDERAL OTHERS

ANALYSIS & INTERPRETATION

From the above data collected most of the respondents have their salary account
in SBI bank (28%) followed by HDFC of (18%) and ICICI of (12%).

51
TIME PERIOD COMPOSITION

TIME PERIOD NUMBER OF PERCENTAGE

RESPONDENTS
Less than 2 26 26%
2-5 39 39%
5-10 22 22%
More than 10 13 13%
Total 100 100%

TIME PERIOD
TIME PERIOD

39

26
22

13

Less than 2 2-5 yrs 5-10 yrs More than 10

ANALYSIS & INTERPRETATION

From the data collected most of the respondents have been using their
bank account from the period of 2-5 years (39%).

52
FEATURES COMPOSITION

FEATURES NUMBER OF PERCENTAGE

RESPONDNETS
Number of ATMs 8 8%
Products& Services 34 34%
Easy to Reach 28 28%
Net banking Facility 10 10%
Interest Rates 20 20%
TOTAL 100 100%

FEATURES
FEATURES

34

28

20

10
8

ATM Products Easy to reach Interest rate Net banking

ANALYSIS & INTERPRETATION

From the above the data collected most of the respondents reach choose their
bank because of the products and services provided by the bank (34%) and the
next reason is the level of easiness in reaching your bank (28%).

53
FREQUENCY COMPOSITION

FREQUENCY NUMBER OF PERCENTAGE

RESPONDENTS
Less than 2 14 14%
2- 5 55 55%
5-10 22 22%
More than 10 9 9%
TOTAL 100 100%

FREQUENCY
FREQUENCY

55

22

14
9

Less than 2 2- 5 times 5-10 times More than 10

ANALYSIS & INTERPRETATION

From the data collected above most of the respondents visit their bank 2- 5times a
month (55%).

54
SATISFACTION COMPOSITION

SATISFACTION NUMBER OF PERCENTAGE

RESPONDENTS
YES 37 37%
NO 63 63%
TOTAL 100 100%

SATISFACTION

37%
YES
NO
63%

ANALYSIS & INTERPRETATION

From the data collected above majority of the respondents are not satisfied
with their bank (63%).

55
BENEFITS COMPOSITION

BENEFITS NUMBER OF PERCENTAGE

RESPONDENTS
Zero balances 23 23%
Higher interest 38 38%
Overdraft facility 12 12%
Net banking 8 8%
Min Bank Charges 19 19%
TOTAL 100 100%

BENEFITS
BENEFITS

38

23
19

12
8

Zero balances Higher interest OD Net banking Min bank charges

ANALYSIS & INTERPRETATION

From the above data collected most of the respondents prefer benefits of better
interest rates from their salary account (38%) and followed by the benefits of
zero balance account (23%).

56
SELECTION COMPOSITION

SELECTION NUMBER OF PERCENTAGE

RESPONDENTS
YES 62 62%
NO 38 38%
TOTAL 100 100%

SELECTION

38%
YES
NO
62%

ANALYSIS & INTERPRETATION

From the data collected above the salary account of majority of the respondents
is chosen by the company which is of 62%.

57
SECTOR COMPOSITION

SECTOR NUMBER OF PERCENTAGE

RESPONDNETS
PRIVATE 70 70%
PUBLIC 30 30%
TOTAL 100 100%

SECTOR

30%

PRIVATE
PUBLIC

70%

ANALYSIS & INTERPRETATION

From the above data collected majority of the respondents prefer the private
sector banks over the public sector banks (70%).

58
INFORMATION COMPOSITION

INFORMATION NUMBER OF PERCENTAGE

RESPONDENTS
Staff 19 19%
Advertisement 22 22%
Website 45 45%
Friends & Relatives 14 14%
TOTAL 100 100%

INFORMATION
INFORMATION

45

22
19
14

Staff Advertisement Website Friends&relatives

ANALYSIS & INTERPRETATION

From the data collected above majority of the respondents get the information of
existing and new banking policies through the bank website (45 %) and
followed by advertisement (22%).

59
NEW BANK COMPOSITION

BANK NUMBER OF PERCENTAGE

RESPONDENTS
SBI 16 16%
HDFC 31 31%
ICICI 13 13%
AXIS 8 8%
FEDERAL 10 10%
OTHERS 22 22%
TOTAL 100 100%

NEW BANK
NEW BANK

31

22

16
13
10
8

SBI HDFC ICICI AXIS FEDERAL OTHERS

ANALYSIS & INTERPRETATION

From the above data collected majority of the prefer to start a new salary account
in HDFC bank (31%).

60
SWITCHING COMPOSITION

SWITCHING NUMBER OF PERCENTAGE

RESPONDENTS
YES 62 62%
NO 38 38%
TOTAL 100 100%

SWITCHING

38%
YES
NO
62%

ANALYSIS & INTERPRETATION

From the above data collected majority of the respondents have switched
their banking services in the past one year (62%).

61
REASON FOR SWITCHING COMPOSITION

REASON FOR SWITCH NUMBER OF PERCENTAGE

RESPONDENTS
Cheaper products 16 16%
More convenient 22 22%
Better mobile app 8 8%
Better website 10 10%
Concern on security 14 14%
Bad customer experience 30 30%
TOTAL 100 100%

REASON FOR SWITCH

REASON FOR SWITCH

30

22

16
14
10
8

Cheaper products Convenience Mobile app Website Security Bad Experience

ANALYSIS & INTERPRETATION

From the above data collected most of the respondents switch their bank
account because of the bad experience they received (30%) and followed by the
convenience they require (22%).

62
AWARENESS COMPOSITION

AWARENESS NUMBER OF PERCENTAGE

RESPONDENTS
YES 45 45%
NO 55 55%
TOTAL 100 100%

AWARENESS

45% YES
55% NO

ANALYSIS & INTERPRETATION

From the data collected above majority of the respondents are not aware of
the HDFC salary account (55%).

63
ATTRACTION COMPOSITION

ATTRACTION NUMBER OF PERCENTAGE

RESPONDENTS
Zero balances 22 22%
Premium debit cards 30 30%
Insurance coverage 14 14%
Personal banker service 8 8%
Overdraft facility 6 6%
Others 20 20%
TOTAL 100 100%

ATTRACTION
ATTRACTION

30

22
20

14

8
6

Zero balance Debit card Insurance Personal banker OD Others

ANALYSIS & INTERPRETATION

From the data collected above most of the respondents re attracted to the HDFC
salary account because of their premium debit cards (30%) followed by the zero
balance policy (22%).

64
 CHAPTER 5
FINDINGS, SUGGESTIONS &
CONCLUSION

65
5.1 FINDINGS

The finding of the study was as follows:


The majority of the respondents were Male.

The majority of the respondents were composed of the age category of 20-
35.

More number of respondents were from the private sector

SBI leads with the most number of respondents with the salary
account followed by HDFC bank.

Most of the respondents have been associating with their bank for 2-5 years.

Respondents choose their bank on the basis of products and services
available to them.

Respondents usually visit their bank 2-5 times a month.

Majority of the respondents are not satisfied with their current bank.

Higher interest rate is one of the major benefit expected by the
respondents from their bank.

Most of the salary accounts of the employees are selected by the
company itself.

Majority of the respondents prefer private sector banks.

Respondents gets information on the new & existing policies from the bank
website.

In considering a new bank, Majority of the respondents prefers HDFC bank.

Majority of the respondents have switched their banking services in the
past one year.

Majority of the respondents are not aware of the HDFC salary
account.

Respondents are attracted to the HDFC bank because of their premium
debut cards, zero balance policy, insurance coverages etc.

66
 SUGGESTIONS


The bank should make some efforts to familiarize the customers to
various services through demonstrations

The bank should more upgraded techniques to make their customer feel
more secure while accessing their accounts.

The bank should make a effort to provide a platform from where the
customers more aware of the net baking services.

The bank should take steps to create a trust in mind of the customers
towards their security of their accounts.

The bank should make more effort in promoting the HDFC salary
account.

The bank should provide more services which can be accessed
through net banking like advice on investment ,TDS etc.

67
 CONCLUSION

The Summer Internship Study as part of our curriculum for a time period of 8 week
gave me an opportunity to understand and analyze the various functions of a bank
and its services. Though the Internship was for a short time period, it did help me
conduct my research study in an efficient way. The study was limited to walk-ins
and few selected samples through the friend‟s circle. The study helped in
understanding the Customers preference towards Digital Banking and also to
understand the key features which make them select a particular Bank as their
Primary Bank. The employees give prompt services, always are ready to
answer the questions and are trustworthy.

It was found that the Bank has a wide area of opportunity to expand its business
and with more adaptation to the technology; it would help them stay at the helm.

68
 REFERENCES

1. https://www.hdfcbank.com/
2. www.ukessays.com
3. https://en.wikipedia.org/wiki/HDFC_Bank
4. https://www.ibef.org/industry/banking-india.aspx

69
APPENDIX

70
 Corporate Salary

A study on the different corporate salary accounts of the people residing in Thiruvalla

Required

Name *

SEX *
Mark only one oval.

Male
Female
Others

AGE *
Mark only one oval.

Less than 21
21-35
35-50
50-65
More than 65

Occupation * Mark
only one oval.

Private Employee
Government Employee

In which Bank do you have your Salary account

* Mark only one oval.
SBI
ICICI
Axis
HDFC
Federal
Others

71
 Corporate Salary

How long have you been associated with your

bank? * Mark only one oval.
less than 2
2- 5
5-10
more than 10

Reason for choosing your bank

* Check all that apply.
Number of ATMs
Products & Services
Easy to Reach
Net banking Facility
Interest Rates

How Frequently do you visit your bank

* Mark only one oval.
Less than 2
2-5
5-10
More than 10

Are you satisfied with your bank

* Mark only one oval.
Yes
No

Which kind of benefits you expect for your salary

account Check all that apply.

Zero balances
Higher interest
Overdraft Facility
Net banking
Min bank charges

Does the company select your salary account bank

* Mark only one oval.
Yes
No

72
 Corporate Salary
Which kind of banking sector do you prefer?
* Mark only one oval.
Private
public

8. How do you know about the existing and new

banking policies? * Mark only one oval.
Staff
Advertisement
website
Friends & Relatives

10. In considering a new bank,Which bank do

you Prefer? * Mark only one oval.
SBI
HDFC
ICICI
Federal Bank
AXIS
Others

In past year have you ever switched from your current Banking
service * Mark only one oval.
Yes
No

What was the reason to switch your banking

service? Check all that apply.

Cheaper products& Services

More convenient
Better mobile app
Better website
Concern on security
Bad customer experience

Are you aware of the different features available of HDFC salary

account? Mark only one oval.
Yes
No

73
 Corporate Salary
Which feature attracts you the most in
HDFC salary account? Check all that
apply.
Zero balance
Premium debit cards
Insurance coverage
Personal banking services
Overdraft facility
Others

74