Annexure - IV

FIIB – CIP – Interim Report

Interim Report is to be blueprint to cover steps for the final report. A student is
expected to cover four steps of final report by the time of interim report submission.

Student Information

Name & roll no. of student Anjali Vashisth & 16

Name of Company Mentor Ms. Amritpal Kaur

Name of Internship Company HDFC Bank, Phase -11, Mohali

The following four chapters along with the summary or work completed till the time of
interim report submission should be submitted in the interim status report.

INTODUCTION TO SECTOR/INDUSTRY

ABOUT BANKING INDUSTRIES

The banking sector is that section of the economy, holding of financial assets for
others, investing those assets as leverage to maximize wealth and the regulation of
those activities by government agencies. Banks holds clients assets, with the promise
that whenever assets are needed by the client, withdraw them.

The banking sector is that section of the economy, holding of financial assets for others,
investing those assets as leverage to maximize wealth and the regulation of those activities
by government agencies. Banks holds clients assets, with the promise that whenever assets
are needed by the client, withdraw them.
Traditionally, banks lend the money as loans, earning money from the interest rates charged
on those loans. The banking sector has forever tried to unfold its risks by finance as wide as
possible; this prevents as sudden loan default from sinking the whole bank.
However, this can cause other problems. If a bank had invested with within the forward
market and had a unconditional interest in increasing its worth, it could simply prevent the
aluminum from being sold to industry and drive up that value. This could have a knock back
effect on whole sector and disrupt the economy, which the banking sector should avoid at
various costs.

For examples, Goldman Sachs did exactly in 2010-2013, and it neglected regulation
to prevent this sort of market manipulation by moving the aluminum from warehouse
to warehouse within the regulatory limit .

1
 Annexure - IV
FIIB – CIP – Interim Report

Evolution of banking industries

Because banks are the one of the pillar of modern economy, governments already have laws
in place in order to prevent banks from engaging in dangerous activity that threatens the
economy. These laws are often enacted after hard financial lessons, such as the creati on of
the Federal Deposit Insurance Corporation (FDIC), etc.

INDIAN BANKING INDUSTRIES

According to the Reserve Bank of India, India’s banking industry is well capitalized and well regulated.
The country’s financial and economic conditions are far superior to any other country in the world.
Credit, market and liquidity risk studies show that Indian banks are generally resilient and have withstood
the global economic downturn.
The Indian banking industry has recently witnessed the launch of innovative banking models such as
payments and small financial banks. The new initiative of the Reserve Bank of India may have a long
way to go to help the restructuring of the domestic banking industry.
India's digital payment system is the fastest growing in 25 countries, and India's Instant Payment Service
(IMPS) is the only Level 5 system in the Fast Payment Innovation Index (FPII).

2
 Annexure - IV
FIIB – CIP – Interim Report

TOP 10 MAJOR COMPETITORS IN INDIAN MARKET

The Indian banking system consists of:

 27 public sector banks,

 21 private sector banks,
 49 foreign banks,
 56 regional rural banks,
 1,562 urban cooperative banks and
 94,384 rural cooperative banks.

As of Q3 FY19, total credit increase by commercial banks surged to Rs 93,751.17 billion

(US$ 1,299.39 billion) and deposits grew to Rs 120,818.92 billion (US$ 1,866.22 billion) .
Assets of PSU’s stood at US$ 1,557.04 billion in FY18.

Revolution in Indian banking sector

Indian banks are increasingly focusing on an integrated approach to risk management. The bank has
accepted the Basel II international banking supervision agreement, and most banks have reached the
Basel III capital requirement. The deadline for the agreement is March 31, 2019.

The Reserve Bank of India (RBI) decided to establish a public credit registry (PCR) a comprehensive
database of credit information for use by all stakeholders. The Bankruptcy and Bankruptcy Law
(Amendment) Bill 2017 was passed and is expected to strengthen the banking industry.

Pradhan Mantri Jan Dhan Yojana (PMJDY) increased its deposits to 926.78 billion rupees ($12.85
billion) and opened 336.6 million accounts in India. In May 2018, the Indian government provided a loan

3
 Annexure - IV
FIIB – CIP – Interim Report

of 6 trillion rupees ($93.1 billion) to the 120 million beneficiaries under the Mudra plan. In Preal Pension
Yojna, in May 2018, the total number of subscribers reached 11 million.

The increase in income is expected to increase demand for banking services in rural areas, thereby driving
growth in the sector. As of September 2018, the Financial Services Department (DFS), the Ministry of
Finance and the National Information Center (NIC) launched Jan Dhan Darshak as part of the Financial
Inclusion initiative. It is a mobile app to help people find financial services in India.

The digital payment revolution will trigger a dramatic change in the way credit is paid in India. After the
demonization was cancelled, the debit card has completely replaced the credit card and became the
preferred payment method for India. Debit card accounts for 87.14% of total card expenditure.

FUTURE PERSPECTIVE

Strengthening infrastructure spending, rapidly implementing projects and continuing reforms are expected
to further drive growth. All of these factors indicate that India's banking industry is also expected to
achieve strong growth as fast-growing businesses will turn to banks to meet their credit needs.
In addition, advances in technology have made mobile and online banking services stand out. The
banking industry is more focused on providing better services to its customers and upgrading its
technology infrastructure to enhance the overall customer experience and provide a competitive
advantage for banks.
India’s digital loans reached $75 billion in FY18, and it is estimated to reach $1 trillion by FY20, thanks
to a five-fold increase in digital spending.

4
 Annexure - IV
FIIB – CIP – Interim Report

ABOUT HDFC BANK

As part of RBI's liberalization of Indian banking, Housing Development Finance Ltd.

(HDFC) was the first to receive the “in principal” approval of the establishment of the
Bank in the private sector. The bank was incorporated in August 1994 under the name
“HDFC Bank Limited”. Its registered office in Mumbai, India. HDFC Bank begins
operations January 1995 as a Schedule commercial bank.

India’s premier housing finance company, enjoying an impeccab le track record in India as
well as in international markets. In 1997 under an inception, HDFC Bank has maintained a
consistent and healthy growth in its operations to be the no. one leader in the mortgage
market.

HDFC developed expertise in retail mortgage loans in different market and having huge
corporate client base for its housing related credit facilities.
Having good reputation in financial markets, a strong market goodwill , large shareholder
base and unique consumer base, HDCF was positioned to promote a bank in the Indian
environment.

VISSION & MISSION

The mission of HDFC Bank - a world-class Indian bank.

The goal is to establish a sound customer franchise in different businesses in order to become the
preferred provider of banking services for the retail and wholesale customer base, and achieve good
earnings growth consistent with the bank's risk appetite. The bank is committed to maintaining the highest
standards of ethical standards, professional integrity, corporate governance and compliance.
HDFC's business philosophy is based on four core values -
 Operational excellence,
 Customer-centric
 Product leadership and
 People

HDFC GROUP

5
 Annexure - IV
FIIB – CIP – Interim Report

MARKET STRUCTURE

6
 Annexure - IV
FIIB – CIP – Interim Report

7
 Annexure - IV
FIIB – CIP – Interim Report

PRODUCT/ SERVICES PORTFOLIO

HDFC Bank offers no. Products and services that meet every need of people. The company focuses on
individuals as well as businesses and small and medium-sized businesses.
For individuals, the company has a range of accounts, investment and pension plans, different types of
loans and cards to assist customers. Customers can choose the right product based on the life stage and
needs of the product.
For organizations, the company has a range of customized solutions, including funding services, non-
funded services, value-added services, mutual funds, and more. In addition to providing long-term value
to employees, these affordable programs help increase the company's goodwill. The company's products
are divided into the following sections:

 Accounts and deposits.

 Loans
 Investments and Insurance
 Forex and payment services.
 Cards
 Customer center

PERSONAL BANKING SERVICES

A. Accounts & Deposits Savings Account

•Regular Savings Account

•Savings plus Account
•Savings Max Account
•Senior Citizens Account
• No Frills Account
•Institutional Savings Account
•Payroll Salary Account
•Classic Salary Account
•Regular Salary Account
•Premium Salary Account
•Defense Salary Account
•Kid's Advantage Account
•Pension Saving Bank Account
•Family Savings Account
•Kisan No Frills Savings Account
•Kisan Club Savings Account

Current Account

 Plus Current Account

Trade Current Account

•Premium Current Account

8
 Annexure - IV
FIIB – CIP – Interim Report

•Regular Current Account

•Apex Current Account
•Max Current Account
•Reimbursement Current Account

Fixed Deposit

•Regular Fixed Deposit

•Super Saver Account
•Sweep-in Account

B.Recurring Deposit Demat Account Safe Deposit Locker B. Loans

•Personal Loans
•Home Loans
•Two Wheeler Loans
• New Car Loans
•Used Car Loans
•Overdraft against Car
•Express Loans
•Loan against Securities
•Loan against Property
•Commercial Vehicle Finance
•Working Capital Finance
•Construction Equipment Finance

C. Investments & Insurance

•Mutual Funds
•Insurance
•Bonds
•Financial Planning
•Knowledge Centre
•Equities & Derivatives
•Mudra Gold Bar

D. Forex Services
•Trade Finance
•Traveler’s Cheques
•Foreign Currency Cash
•Foreign Currency Drafts
•Foreign Currency Cheque Deposits
•Foreign Currency Remittances
•Forex Plus Card

E. Payment Services
•Net Safe
•Prepaid Refill

9
 Annexure - IV
FIIB – CIP – Interim Report

•Bill Pay
•Direct Pay
•Visa Money Transfer
•E-Monies Electronic Funds Transfer
•Excise & Service Tax Payment

F. Access Your Bank - One View

•Insta Alerts
•Mobile Banking
•ATM
•Phone Banking
•Branch Network

G. Cards
•Silver Credit Card
•Gold Credit Card
•Woman's Gold Credit Card
•Platinum plus Credit Card
•Titanium Credit Card
•Value plus Credit Card
•Health plus Credit Card
•HDFC Bank Idea Silver Card
•HDFC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES

•Funded Services
• Non Funded Services
•Value Added Services
•Internet Banking
•Clearing Sub-Membership
•RTGS – sub membership
•Fund Transfer
•ATM Tie-ups
•Corporate Salary a/c
•Tax Collection
•Financial Institutions
•Mutual Funds
•Stock Brokers
•Insurance Companies
•Commodities Business
•Trusts

3. NRI BANKING SERVICES

•Rupee Saving a/c
•Rupee Current a/c
•Rupee Fixed Deposits
•Foreign Currency Deposits

10
 Annexure - IV
FIIB – CIP – Interim Report

•Accounts for Returning Indians

•Payment Services
•Net Safe
•Bill Pay
•Insta Pay
•Direct Pay
•Visa Money
•Online Donation
•Remittances

DISTRIBUTION CHANNEL

HDFC Bank has Headquarters in Mumbai. The bank currently has an enviable 4,808 branch network
covering 2,666 cities nationwide. All branches are linked online in real time. Customers in 189 locations
also serve through telephone banking. The bank expansion plan takes into account the existence of all
major industrial and commercial centers where the company's customers are located and the need to build
a strong retail customer base for deposit and loan products. As the clearing and settlement bank of major
stock exchanges, the bank has branches in the NSE / BSE center and has a strong and active membership
base. The bank also has a 12888 ATM network throughout the city.

ORGANISATION STRUCTURE

In HDFC BANK, each department has a different color coding for different files. Because of this,
everyone knows that their particular color files are being encoded, and they save valuable time. It is part

11
 Annexure - IV
FIIB – CIP – Interim Report

of Kaizen and is also included in the Five'S' system. The logic behind it is that color coding always
distinguishes things from similar things.

SIZE OF THE ORGANISATION (in cr.)

Turnover 26333.25
Net assets 101817.61
Operating income 26161.76
Total employee 94707 (in no.)
Total equity 650 (lakh)

https://www.investopedia.com/ask/answers/032315/what -banking-sector.asp
https://www.ibef.org/industry/banking-india.aspx

REVIEW OF REPORT

The Assignment is all about to study the CORPORATE SALARY ACCOUNT PROCESS
while working with corporate salary team.

Corporate Salary Account

Giving employees an account that make banking pleasure for them by giving some
additional benefits over and above on account.

 0 balance account with no annual maintance charge of account

 International debit card
 Additional limits in insurances

12
 Annexure - IV
FIIB – CIP – Interim Report

 Hospital benefits
 Relaxation in interest rates of loans

This project covers entire information about whole process of corporate salary account
like:
1. What is corporate salary account?
2. Who handle this department and how?
3. Different Policy and Scheme of CSP ( corporate salary packages )
4. Benefit of corporate account to different stakeholders like: employees, corporate &
banks
5. Process of opening the account & documentation
6. Banks rivalry in the market for the customers

The other part of the internship involves doing the competitive analysis; this will help in
understanding more about the market and the Industry. Aim to understand the performance
of the major Players in the market. In this project trying to evaluate different banks
performance on these factors:

1. Customer base
2. No. of accounts open
3. Other sales benefits to the banks
4. Comparative analysis of different banks
5. Performance analysis over the years
To evaluate the performance certain tools will be use like Descriptive Analysis, past trend
charts, data visualization, and such others

13
 Annexure - IV
FIIB – CIP – Interim Report

ROLES & RESPONSIBILITY

 Interaction with the Corporate with CST ( Corporate Salary Team )

 Form filling
 Documentation
 Opening smart account by using HDFC Bank App i.e. Smartapp.
 Comparative analysis’s of HDFC Bank with other banks.
 OTHERS:
o Maintance of Registers (Dishonoured Recon, Insta Kit, etc.)
o Helping hand to the staff
o Assist on welcome desk
o Cheque clearance process.
o Cold calling to the customers.

 Market research with Relationship Manager for new product for HDFC Bank portfolio.

14
 Annexure - IV
FIIB – CIP – Interim Report

Importance of roles and responsibilities:

With the help of comparison analysis company gets to know: about the areas of improvement in corporate
salary department that helped them to stay ahead in the competition, help them in pre strategic decision
making.
Another hand, little help in regular flow of work.

For me, this familiarizes me through banking system & helps me in planning my career.

PROJECT OBJECTIVE

15
 Annexure - IV
FIIB – CIP – Interim Report

To develop the
undertanding about
different types of
accounts in coorporate
salary packages

To know how bank

To analyze corporate
build relationship
salary need to the
with the customers to
different
get other businesses
stakeholders
for bank
Objectives
of project

to know how
corporate relation comparitive analysis
benefitted to bank of CSP of different
business portfolio. banks

ACTION PLAN
1st Month:
 Initially observations on the working & culture of the HDFC Bank
 Ensure punctuality during the internship.
 4-5 visits with the corporate salary team to know how they interact with the customers.
 Indulge in other sort of work to get more insight about banking sector environment.
 Interaction with the other concerned persons in banks
 In 1st month targeted to open 200+ accounts.
 Understand the complete procedure of the corporate salary account process.
 Performe

2nd Month:

16
 Annexure - IV
FIIB – CIP – Interim Report

 Ensure punctuality during the internship.

 Keep the faculty mentor and corporate mentor in the loop about the progress.
 Target to open 600+ accounts.
 Timely consult with my faculty and corporate mentor for scope of improvement.
 Performe others work given to me apart of my project dedicatedly like maintance of registers and
reporting, etc.

3rd Month:
 Handle one corporate independently.
 Analysis the other banks offers & comparison the same with HDFC Bank.
 Performance of others bank in the same segment during the past few years.
 Consult with my faculty and corporate mentor about my finding
 Implementation of feedback and improve under the guidance of mentors
 Regular activities performed


17
 Annexure - IV
FIIB – CIP – Interim Report

SUMMARY OF WORK TILL DATE

 submission of CIP Joining report

 submission of CIP Project proposal report
 presentation of Project proposal report
 understood the complete procedure of Corporate Salary
 4 corporate visit with Corporate salary team
 400+ accounts were opened
 Two company code generated ( Supreme fitness, Shyam fashions )
 Familiarized by coding and fast track numbers
 Used HDFC Bank software like flex cube
 Reporting system of banking

18