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SURVEYOF HDFC
COURSE - MMM
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SUMMER INTERNSHIP PROJECT
Carried out at
MBA (Autonomous)+MMM(2006-08)
From:
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WE UNDERSTAND YOUR WORLD
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Contents
1. Acknowledgement 4
2. Declaration 5
3. Objective 6
4. Rationale for undertaking the research 6
5. Introduction 8
a. Organization Scenario
b. Organization Profile
6. Objective of the Study 23
7. Methodology 24
8. Scope of the Study 24
9. Project Analysis 35
9. Detailed Findings and Observations 60
11. Summary of Conclusion 63
12 Questionnaire 65
13.. Bibliography 67
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ACKNOWLEDGEMENT
The coordinator of my summer project at the organization. Without his support &
For giving me the exposure to the industry and giving in depth knowledge of
Mr.Mahesh Dekhane under whose guidance and support the project was carried out at
the bank.
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Sincere thanks expressed to all staff members of Marketing Department, for
I would like to thank all our professors that have helped me in learning the importance
of various aspects of management. I would also like to thank all the individuals that
Declaration
I, Vivek Goyal, student of PGDM+MMM (2006 – 2008), VIM, hereby declare that this
project report titled “Research & Analysis of HDFC BANK in Corporate Salary
Account” has been originally prepared by me and pertains to my original work done
during the summer training tenure, for “HDFC BANK, PUNE”. One copy of this
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project report has been submitted to HDFC BANK and another to VIM-PUNE, other
than that this report has not been submitted to any other organization.
Vivek Goyal
VIM, PUNE
OBJECTIVE:
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“MARKET POTENTIAL SURVEY OF
This study was chosen keeping in view the interests of the company as well as the
summer trainee. The target aimed by the research was “Research & Analysis of HDFC
of various companies. This meant a lot of exposure for the trainee as and when he
would interact with different people with different requirements. Also both the
The survey so done may form the basis of plan of action by HDFC BANK. It will help
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results. Also knowing which schemes being used by the competitors mostly, the
organization can decide which activities to be done to get maximum salary accounts.
Executive Summary
(HDFC), a premier housing finance company. The bank is the first of its kind to receive
an in-principle approval from the RBI for establishment of a bank in the private sector.
RBI and the bank was opened by the then finance minister Mr. Manmohan Singh. The
HDFC, the promoter of the bank has entered into an agreement with National
Westminister Bank Pc. and its subsidiaries (Natwest Group) for subscribing 20% of the
banks issued capital and providing technical assistance in relation to the banks proposed
banking business. The Bank opened its first branch in Ramon House at Church gate,
th
Mumbai on January 16 1995. Subsidiaries and associate companies of HDFC include
HDFC Bank HDFC Mutual Fund, HDFC Standard Life Insurance, HDFC Realty
HDFC Chub General Insurance Company Ltd. Intel net Global Services Ltd. and Credit
information Bureau (India) Limited. HDFC Bank offers various products for retail
customers. It provides the customers with Savings and Current Accounts, Fixed
deposits loans and credit and debit cards. It also provides with Investment, payment,
Forex and insurance services. HDFC Bank has gone on to win several awards right
from the best bank in private sector to best bank in the country. It has received awards
from NASSCOM, Economic Times, Business Today, Forbes Global, Business World,
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Asian Banker’s Excellence award and many others. HDFC Bank is one of the major
players in the corporate accounts segment in the country. In PUNE there are three major
players in the corporate account segment; viz. Citibank, ICICI Bank and HDFC Bank.
PUNE is known as the one of the Information Technology hub of India, and therefore
these IT equipped organizations and software companies and also some small corporate
were the focus of the study. The study was about these organizations and the
relationship that they share with the bank that provides them with the corporate
accounts for their employees. The study was also to check the willingness of the
organizations to go to a new bank if the bank provided them with better products and
services.
Background:
HDFC was incorporated in 1977 with the primary objective of meeting a social
households for their housing needs. HDFC was promoted with an initial share capital of
Business Objectives:
Manner, and to promote home ownership. Another objective is to increase the flow of
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resources to the housing sector by integrating the housing finance sector with the
Organisational Goals:
b) Maintain its position as the premier housing finance institution in the country,
1. HDFC Bank
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4. HDFC Realty
HDFC BANK
The Organisation.
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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
link in the private sector, as part of the RBI's liberalisation 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 on 16th January 1995. In the year 1998
HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its
clearing bank
Business Focus
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
Capital Structure
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The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's
equity and about 19.4% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.
The shares are listed on the The Stock Exchange, Mumbai and the National Stock
Exchange. The bank's American Depository Shares are listed on the New York Stock
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged
with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank. The acquisition added significant value to HDFC Bank in terms
skilled manpower and the opportunity to cross-sell and leverage alternative delivery
channels.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 531 branches spread over 228 cities across India. All branches are linked on an
online real-time basis. Customers in over 120 locations are also serviced through
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Telephone Banking. The Bank s expansion plans take into account the need to have a
presence in all major industrial and commercial centres where its corporate customers
are located as well as the need to build a strong retail customer base for both deposits
and loan products. Being a clearing/settlement bank to various leading stock exchanges,
the Bank has branches in the centres where the NSE/BSE have a strong and active
member base.
The Bank also has a network of about over 1054 networked ATMs across these cities.
Moreover, HDFC Bank s ATM network can be accessed by all domestic and
Management
Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director,
Mr. Aditya Puri, has been a professional banker for over 25 years and before joining
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
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team and the overall focus on recruiting and retaining the best talent in the industry, the
The management consists of the Chairman Mr Jagdish Kapoor and 9 other Directors
They are
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Corporate Governance
generally accepted as a key factor in attaining fairness for all stakeholders and
established to provide a direction and framework for managing and monitoring the bank
The bank believes in adopting and adhering to the most superior corporate governance
practices and continuously benchmarking itself against each such practice in the
industry. The bank understands and respects its fiduciary role and responsibility to
shareholders and continually strives to full fill their expectations. We strongly believe
that the best board practices, transparent disclosures and shareholder empowerment are
The bank has infused the philosophy of corporate governance in all its activities. The
maximization of their long term values. The cardinal principles such as independence,
serve as the means for implementing the philosophy of corporate governance in letter
and in spirit.
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TECHNOLOGY
technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the branch
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank.
In terms of software, the Corporate Banking business is supported by Flex cube, while
the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The systems
The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market
Position, expertise and technology to create a competitive advantage and build market
share.
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RATING
Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies – Credit Analysis
& Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's
Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,
which represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the Bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)
has assigned the "AAA (ind)" rating to the Bank's deposit programme, with the outlook
on the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high". HDFC Bank also has its long term unsecured, subordinated (Tier
II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited.
CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch
Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the
rating as "stable". In each of the cases referred to above, the ratings awarded were the
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
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creation and corporate governance practices" in future. The bank has been assigned a
'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to
wealth creation for all its stakeholders while adopting sound corporate governance
The year 2004-05 saw HDFC making renewed efforts in fulfilling its social
commitments by way of several ongoing as well as new initiatives. The latter included
with key stakeholders on policy issues, responding to the tsunami tidal wave disaster
HDFC also gained special recognition for its corporate social responsibility (CSR)
function in the form of winning The Economic Times Corporate Citizen Award for
2003-04.
Businesses:
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments.
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Wholesale Banking Services:
The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to the small & mid-sized corporate and agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers.
Based on its superior product delivery / service levels and strong customer orientation,
the Bank has made significant inroads into the banking consortia of a number of leading
houses and prime public sector companies. It is recognised as a leading provider of cash
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
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The HDFC Bank Preferred program for high net worth individuals, 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. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans
for retail customers, providing customers the facility to hold their investments in
electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card
as well. The Bank launched its credit card business in late 2001. By September 30,
2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The
Bank is also one of the leading players in the "merchant acquiring" business with over
50,000 Point of- sale (POS) terminals for debit/credit cards acceptance at merchant
establishment.
Treasury:
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply
with statutory reserve requirements, the bank is required to hold 25% of its deposits in
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government securities. The Treasury business is responsible for managing the returns
Product range: The following is the product range offered at HDFC: While various
deposit products offered by the bank are assigned different names, the deposit products
can be categorised broadly into the following types. Definition of major deposit
1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdraw able on
demand;
a) Savings Account:
to the number of withdrawals as also the amounts of withdrawals permitted by the bank
during any specified period; HDFC provides with saving bank account with the usual
facilities, and one also gets a free ATM card, intrbranch banking, bill payment facilities,
2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed period withdraw able
only after the expiry of the fixed period and includes deposits such as Recurring /
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3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn
4. Current Account:
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are neither
Savings Deposit nor Term Deposit; The account holder gets a personalized cheque
5. Corporate Account:
These are more commonly known as Salary Accounts. These are account in HDFC
BANK with zero balance. These are given to salaried people. These accounts are
opened by the employer for the employees to deposit the salary of the employee directly
to the account.
A preferential Savings Account where in, one is assigned with a dedicated Relationship
Manager, who’s you’re the one point contact. One also get privileges like fee waivers,
enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and
7. Sweep-In Account:
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A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings Account
runs a bit short, one can issue a cheque (or use ATM Card). The money is automatically
swept in to one’s Savings Account from one’s Fixed Deposit Account. The excess
funds in the account are directly transferred to the fixed deposit account of the account
holder.
It gives one an overdraft facility up to 75% of one’s fixed deposit. In an emergency, you
can access your funds while your fixed deposit continues to earn high interest.
Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus,
a Current Account and then something extra for the HDFC bank customers. One can
transfer up to Rs. 50 lakh every month at no extra charges, between the four metros.
One can also avail cheque clearing between the four metros, get cash delivery/pick-up
up to Rs. 25000/-, home delivery of demand drafts, at-par cheque, outstation cheque
One can conduct hassle-free transactions on the stock market for one’s shares. The
shares held by the customer are protected from damage, loss and theft, by maintaining
these shares in electronic form. This account can be accessed through Internet too.
11. Loans:
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There are a variety of loan schemes offered like personal loans, new car loans, used car
loans, loan against shares, consumer loans, two wheeler loans, and home loans. These
are available with easy payback in monthly instalments. Loans are sanctioned with easy
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Services offered
Following are the services offered at HDFC bank for its esteemed customers
i. Phone Banking:
Round the clock automated banking services with 39 phone banking numbers
available as customer help-line. A customer can call in any time and get help no
HDFC bank brings 24-hour banking for it customers. Apart from routine
transactions, you can also pay your utility bills and transfer funds, at any of our
A customer can access his account on mobile phone at no extra air-time cost. One’s
One can access one’s account from any of the HDFC’s 347 branches in 174 cities.
Other than that the customer can access their accounts at any of the ATM canters
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An ATM Card one can shop with all over the country and in over 140 countries
other than India. One can spend any currency depending on the country he/she is in,
HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are
accepted worldwide. If one has outstanding balance on one’s other credit card, one
Apart from a wide choice of mutual funds to suit any consumer needs, one benefit
from expert advice on choosing the right funds based on in-depth market analysis
by experts
One can pay utility bills like telephone bills, electricity bills and mobile phone bills
through our ATMs, Internet, phone or mobile phone. Gone are the days when one
x. FOREX Facilities:
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Avail foreign currency exchange, travellers’ cheques, and foreign exchange demand
xi. Insurance:
HDFC bank also brings you Life Insurance and Pension Solutions like Risk Cover
Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std. Life
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Objective of The Project:
Learning in the classroom is partial unless it is added with practical experience and
training. Training is the most important part of learning in any technical and
professional education. Exposing the young prospective executive to the actual business
industrial environment not only broaden their horizon but also helps them to effectively
grasp the various angels of business. That will beneficial for them when they actually
come to occupy the execrative position. It is an aim that practical training of small
duration obviously had been made valuable and indispensable of the MBA degree.
1. To find prospective customer for the HDFC bank and to find the product potential in
the market.
3. To make recommendation and suggestion about the scope and Feasibility for HDFC
product.
Objective of study
Primary: -
performance.
2. To determine the main characteristic which customers look upon while purchasing
3. To determine the other brand those are competing with the same product rang.
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Secondary: -
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Methodology of the study: -
Research Methodology:
Research may be a mean to know the small change and time forced upon us as
formulating the hypothesis, organizing and evaluating the data, deriving inference and
Data Collection:
Primary Data:
The primary data are those, which are collected a fresh and for the first time, and thus
happen to be in character. Primary data can be collected by various methods.
Secondary Data:
This data is collected from different sources available consolidated From book
this project and to collect necessary data. I have used the manuals and leaflets of the
bank.
Scope of study
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i. Special area to be focused for increasing the sales and for sales promotion
activities to be adopted.
iii. For providing maximum satisfaction to the customer by knowing their needs
iv. Steps to be taken at present for survival and facing the competition with other
equivalent product.
Limitation
i. All the survey work is done for HDFC bank as per their requirement.
iii. Only hundred customer’s data is being collected and on that basis final report is
being prepared.
iv. Only some of the products are being considered for the study.
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Corporate Accounts
Introduction
When an organization opens a HDFC Bank Corporate Salary Account it not only gives
its employees more than just an account. They get a host of e-Age Banking facilities
such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card
(valid in 140 countries) and Bill Pay. And along with that free Demand Drafts and
An organization will be giving its employees an account that makes banking a pleasure
for them. The organization would have also saved time and money by directly crediting
The employee does not have to maintain any minimum balance in the account.
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ii. Free Debit Card
The employees do not have to pay the annual fee for their Debit Cards.
Additionally, the first year annual fee is also waived for one additional account holder,
as in the case of a savings account holder. This plus all the other Debit Card benefits are
your employees. The fees associated are also waived. They can perform the following
transactions:
Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any
of the HDFC Bank branch locations. This offer can be availed of through Phone
Banking or Net Banking or at the branch. The amount of the Demand Draft will be
debited to the salary account. Please note: DDs drawn on correspondent bank will
v. Cash delivery
If there isn't a HDFC Bank that is easily accessible from your office, we will
deliver cash against cheques from the employees once a week subject to a maximum of
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twice a week. Maximum amount of withdrawal per employee is Rs 10,000, minimum
Employees with a salary account are eligible for this facility: Employees with a "Net
Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean overdraft
facility on the savings account @ 18%. Please note: The employee has to sign an
Your employees can avail of the benefits of preferential pricing on our asset products,
namely Loans against Securities, Car Loans and Personal Loans All loans at discretion
of the bank.
products that are offered by the bank. The organizations then, choose the bank and the
product from the various options that are offered to them. These organizations have an
Types:
There are various types of Salary Accounts that are offered by HDFC Bank for different
class of people in the society. Keeping the need of the customer in mind, various types
of accounts are designed and offered to the corporate that choose the salary account for
their employees.
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i. Payroll
The HDFC Bank payroll account offers flexibility as well as access to premium features
like Bill Pay, Insta Alert at a nominal charge. One can also access their account anytime
by phone or through the Internet and pay for their utility bills at a nominal charge.
ii. Classic
The Classic Salary account is a Zero Balance Account which earns the account holder
interest on his savings from salary at a competitive rate fixed by the bank from time to
time. There is no fee applicable for branch transactions and he receives banking
iii. Regular
The Regular account is a Zero Balance account and comes with a Free International
Debit Card , facilities like free inter-city / branch banking and Safe Deposit lockers
(subject to availability)
iv. Premium
account comes with a free International Debit Card and add-on Debit card for life, with
the option of choosing between a Silver or Gold credit card at preferential rates.
This account is designed specifically for Defence personnel’s. The Account is a Zero
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Accolades
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realised that only a single-minded focus on product quality and
service excellence would help them get there. Today, HDFC can proudly say that they
i. London-based Euro money magazine gave us the award for "Best Bank - India"
in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in
ii. In 2003, Forbes Global named HDFC in its ranking of "Best under a Billion,
iii. Leading Indian business magazine Business Today in a survey rated HDFC
"Best Bank in India" 2003, and "Best Private Sector Bank" in India in 1999.
iv. The Asian Banker Excellence Retail Banking Risk Management Award in
v. The Asian Banker Excellence Retail Banking Risk Management Award for
2004
vi. Economic Times Awards - "Company of the Year" Award for Corporate
Excellence 2004-05.
vii. The Business Today-KPMG Survey published in the leading Indian business
magazine Business Today has named HDFC Bank "Best Bank in India" for the
viii. HDFC Bank named the "Most Customer Responsive Company - Banking an
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ix. The Asset magazine named HDFC Bank "Best Cash Management Bank" and
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Financials
Net Profit for HDFC went up by 83.8% at Rs.503.2 million as compared to Rs.273.8
million. Net Margins improved by a 330 basis point from 10.5% in FY05 to 13.8% in
increased to Rs. 3,625.0 million from Rs. 2,571.3 million in FY05, representing a Y-o-
Y growth of 41%. The company witnessed 62% Y-o-Y growth in UTG Vertical and
26% growth in EMI Vertical. Operating profit grew by 44% from Rs 466.5 million in
FY05 to Rs. 671.9 million. Operating margins improved by a 40 basis point from
18.1% in FY05 to 18.5% in FY06.While the institution registered yet another 30% YoY
growth in approvals and 28% YoY growth in disbursements, a quantum leap in profit
on sale of investments have added to its profitability. While the institution sustained the
trend of 30% YoY growth in assets and 20% YoY growth in bottom line, a quantum
leap in dividend from subsidiaries has added to its profitability. Margins and operating
efficiency continue to be in line with HDFC’s corporate policy. Leading private sector
life insurance major HDFC Standard Life has recorded a strong YoY growth of 112 per
cent in FY 07, with new business first year premium touching Rs 1,029 crore, stated a
release issued here today. Major Growth Events for the FY – 07 During Q4 FY07, the
(a) Contract with GE Energy to provide geospatial data management services for Swiss
COM Fix net over a period of three and half years and
(b) Contract with Los Angeles County to provide Digital Aerial Imagery Services to 26
InfoTech launched several new service offerings in both UTG and EMI verticals during
the year. These include piping and instrumentation (UTG); and marine vertical practice,
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interiors and seating, signalling and interlocking, aerospace structures, and validation
Substantial new client additions and long-term relationships with existing marquee
uring FY07, the company set up dedicated design centres for major clients including
FY2007, 19 in the UTG vertical and 21 in EMI vertical. Of these, 10 new clients were
added during Q4FY07; 6 in UTG and 4 in EMI. Significant ramp-up of critical mass
InfoTech expanded its human resources by 1,546 and employed 3,978 associates at
the close of FY07 from 2,432 associates in FY05.Majority of the hiring were focused
revenue from 47.2% in FY05 to 46.8% in FY07. Average utilization rate was fairly
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Recommendations
In the field of the Corporate Accounts most organizations prefer to choose one of the
three banks; HDFC, ICICI and Citibank though there are around 10 banks that provide
the service. Around 71% of the corporate houses prefer to bank with one of these three
banks.
INDUSTRY ANALYSIS:
Satisfaction:
Around 90% of the organizations are satisfied with the bank where they are having the
corporate accounts for their employees. But 70% of the organisations expect better
services from the bank. This shows that though the organizations are continuing to
deposit the salary in the current bank if good offer comes their way they would be more
than happy to take the opportunity and make the switch to the new bank.
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Move from One to the Other
Most of the banks have not changed the bank in the past. There are 25% of the
organizations that are satisfied with the products and services that they receive from
their bank and prefer to continue rather than changing to a new bank even if they are
78% of banks have not changed the bank in the past but of the 78 around 68% of them
say that they desire to change the bank in future, if they are offered with better products
and services by other banks. This shows that the organizations are not hesitant to
change the bank. They want the best possible alternative available to them.
Relationship
Most of the organizations have good relationship with their bank. Only around 13% of
the organizations are not happy with the relationship that they share with their bank.
But an important thing to notice here is, of the balance 87%, around 45% of the
organizations say that they are satisfied with the banks but they are not standing up to
say that they share a good or excellent relationship with the bank that handles the
Responsiveness
57% of the corporate houses say that they have a satisfactory customer responsive bank.
32% of them say that they have a good customer responsive bank and only 16 of the
135 i.e. 12% say that the customer responsiveness of their bank is bad.
This is the most important factor that determines the time for the relationships between
the bank and the organization. It comes up as, the organization has to interact with the
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bank only for opening of the account of new employees and that is the most important
thing that they consider for their relationship with the bank.
Of the 53 banks that are contemplating to change the bank 29 of them do not have any
preference as to which bank they desire to go to. This means that 55% of the corporate
houses do not differentiate much between the various banks providing corporate
accounts. This can even mean that they are considering more than two banks for change
and are not able to shortlist one or two from all the available banks providing the
service.
FOR HDFC
Satisfaction
Of the 35 Organisations that are having their Accounts with HDFC 30 of them are
satisfied with the services that they receive from HDFC Bank. But out of the 30, 22
expect better Products and services from HDFC. This shows that they put HDFC in the
top performer’s category and expect the bank to be the first to come up with newer
ideas and provide the best to their customers. This may also mean that they are
observing improvements in the products and services of other banks and not seeing
sufficient improvement with their bank. There are 5 organisations that are not satisfied
with the services that they receive and desire better services from HDFC.
Of the 35 organisations, 32 organisations have not changed the bank since starting the
corporate account. This shows that HDFC Bank was able to cater to the needs of all the
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organizations in time, and therefore they have stayed along with the bank. There are 17
organisations that are contemplating change of bank from HDFC to other banks in case
there are good products and services being provided by them. This is less than 50% of
the banks and pretty much in tandem with the industry norm. Considering that HDFC is
one of the top three banks providing corporate accounts this number needs to be
Relationship
Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are
not happy with the relationship that they share with HDFC. Of the 35, 13 say that they
share a satisfactory relationship with the Bank and that comes to around 37% of the
organisations. This is a huge figure in the terms that the relationship can swing in either
directions and HDFC needs to keep a close eye on these organizations and cater to their
needs in time to ensure a longer relationship with these firms and to avoid cost of
Responsiveness
Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are
not happy with the customer responsiveness of HDFC bank. Of the 35 Organisations
there are 13 say that they have good customer responsiveness from the bank; which
means that 18 say that they are satisfied with the banks customer responsiveness. This
figure is huge in terms of the industry norms and HDFC bank needs to take a closer
look at the needs of these organizations. Few complaints received were with respect to
45
After Change – Where?
56% of the organizations are undecided about the change of bank that they may have in
future. This means that they are not considering change with as an only option. These
organizations could have a longer relationship with the bank if their needs are
understood properly and met in time. It can be said that it is the point of contact with the
organizations that could be considered as the most important factor that decides, the
46
DATA ANALYSIS
INTRODUCUION:
Data analysis and interpretation plays an important role in turning quantity of paper into
defensible, actionable sets of conclusions and reports. It is actually a set of method and
technique that can be used to obtain information and insights from data.
It can lead the researcher to information and insights that would not be available. It can
help to avoid erroneous judgments and conclusion. It can provide a background to help
design.
47
DATA TABLE NO 1
PERCENTAGE OF
BANK NAME NO. OF RESPONDENTS
RESPONDENTS
HDFC 22 22%
ICICI 25 25%
UTI 14 14%
CO-OPERATIVES 9 9%
OTHERS 8 8%
POTENTIAL MARKET 22 22%
TOTAL 100 100%
INTERPRETATION
i. ICICI Bank Ltd scores top position in market coverage of corporate salary
iii. The amount of potential market is as high as the market share of HDFC
48
GRAPH NO 1
POTENTIAL
MARKET ICICI
22% 25%
OTHERS
8%
HDFC
CO
UTI 22%
OPERATIVES
9% 14%
ICICI HDFC
UTI CO OPERATIVES
OTHERS POTENTIAL MARKET
49
TABLE NO 2
INTERPRETATION
i. Brand Name of a bank has the greatest impact on the customer in regards
ii. Pervious Experience and Reliability about the bank get aequal score of 22%
each.
50
GRAPH NO 2
CUSTOMER CHOICE(%)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PreviousReliability Easy Company
Brand
Access Policy
Name Experience
51
TABLE NO 3
ACCOUNT
INTERPRETATION
ii. ATM Network facility get a second position with 85% of the respondents
iii. Net Banking facility is mostly opted by those employees who are from the
IT or Software Companies due to the nature of work culture and easy access
of net. (68%)
52
iv. International Debit Card facility is opted fro only when its given as an
additional feature and free of any hidden cost. This facility is generally
v. Bill Payment facility is the least opted facility as it comes with some amount
of extra charges.(34%)
53
GRAPH NO 3
100%
100%
85%
90%
80%
68%
70%
60%
45%
50%
40% 34%
30%
20%
10%
0%
1
ZERO BALANCE
ATM NETWORK
NET BANKING
BILL PAYMENT
INTERNATIONAL DEBIT CARD
54
TABLE NO 4
OPERATIVE 14 9 15 24 38
S
OTHERS 19 36 11 7 27
INTERPRETATION
respondents (73%).
v. Co-Operatives and other banks are rated as unsatisfactory by 38% and 27%
respectively.
55
vi. This dissatisfaction is largely due to lack of technical advancements and
capital.
56
GRAPH NO 4
100% 2
5 5 7
90% 6
12 8
8 27
80% 7 38
8
13
70% 14 7
60% 11
50% 24
40%
73 36
68 64
30% 15
20% 9
10% 19
14
0% 0
S
FC
TI
S
P
IC
K
ER
-O
U
D
N
IC
CO
TH
BA
57
TABLE NO 5
OPERATIVE 5 14 24 40 17
S
OTHERS 12 19 25 30 14
INTERPRETATION
i. ICICI Bank is rated as the excellent in facility of Phone and Mobile Banking
ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated it as
satisfactory. This is mainly influenced by the perception about the bank and
previous encounter
iii. The services of all the banks is rated as fair by approximately 25%+
58
GRAPH NO 5
59
100% 6
15 12 14
17
90%
80% 19 35
30
70% 36
40
60%
27
50%
29 25
40%
27
24
30% 29
18 19
20%
13
14
10% 13 12 12
9 5
0%
HDFC ICICI UTI CO-OPERATIVES OTHERS
60
TABLE NO 6
OPERATIVE 15 11 30 31 13
S
OTHERS 33 19 27 10 11
INTERPRETATION
Bank (75%).
iii. Co-Operative Banks are rated as fair by 30% of the respondents and
iv. Other Banks are rated as excellent by 33% of the respondents and fair by
61
GRAPH NO 6
100% 4 4
3 8 11
7 13
90% 5
5 12
8 10
80% 9 4
6 31
70%
27
60%
50%
30 19
40% 80
75
70
30%
20% 11
33
10%
15
0%
HDFC ICICI UTI CO-OP OTHERS
EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY
62
TABLE NO 7
OPERATIVE 35 11 31 16 7
S
OTHERS 29 18 21 21 11
INTERPREATATION
i. The sales executives of any Bank are the biggest source of communication.
ii. The networking and customer contact is best done by ICICI Bank’s
63
GRAPH NO 7
100%
10 7
11 11
90% 18
9 11 16
80% 7 21
70% 19
26
22
60% 31
8 21
50% 8 6
40% 11
18
30%
53
45 47
20%
35
29
10%
0%
HDFC ICICI UTI CO-OP OTHERS
EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY
64
TABLE NO 8
INTERPRETATION
Customer Retention and Customer Satisfaction are inexorably inter - linked. While
consumers may be happy to make payments and interact with their bank through
convenient – and cheaper – banking channels, they still expect high standards of
service. A consistent service reflects the bank’s brand and image across all channels.
93.75 per cent of respondent banks informed that superior service pre and post banking
has been one of the essential factors rated high by their customers. 75 per cent of
respondent banks felt that Personal touch in the dealings has helped them in winning
customers.
65
GRAPH NO 9
LOYAL CUSTOMER
Ensuring Customer
Security 37.5%
Offering Customized
Products 37.5%
66
TABLE NO 9
BANKS % OF RESPONDENTS
INTERPRETATION
i. ICICI Bank is the most preferred bank in the market by the customer. (29%)
iii. Co-operative Banks are the third most preferred banks. (13%)
iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.
v. Kotak Mahindra Bank is the least preferred bank as per the respondents in
67
GRAPH NO 10
PERCENTAGE OF RESPONDENTS
29
24
13
10 10 8
MAHINDRA
MAHARASHTR
ICICI
UTI
HDFC
CO-OP
KOTAK
BANK OF
PERCENTAGE OF ESPONDENTS
68
TABLE NO 11
BANK LTD
Elements % of Respondents
Yes 83%
No 17%
INTERPRETATION
i. 83% of the respondents where happy with the service quality of offered by
HDFC Bank
GRAPH NO11
BANK LTD
% OF RESPONDENTS
17%
83%
YES NO
69
TABLE NO 12
CRITERIA % OF RESPONDENTS
Yes 26%
No 74%
INETRPREATATION
ii. Even though 74% of the respondents are unsatisfied with the documentation in
the account opening procedure however in terms with Global Banking HDFC
Bank is one of the major contributor for putting India on No.1 position in
GRAPH NO 12
70
% OF RESPONDENTS
YES
26%
NO
74%
YES NO
71
TABLE NO 13
Elements % Of Respondents
SALES FORCE 53%
TELE MARKETING 15.8%
WORD OF MOUTH 11.3%
NEWSPAPER 9.7%
TV 6.2%
PUBLIC RELATION 4%
INTERPRETATION
i. The banks employees are rated as the most effective source of communication
(53%)
iii. Peers group and positive as well as negative word of mouth publicity is an
iv. With Newspapers, Television, and Public Relations following each other.
72
GRAPH NO 13
% OF RESPONDENTS
60
53
50
40
30
20
15.8
11.3 9.7
10
6.2
4
0 SALES TELE WORD OF NEWSPAPER TV PUBLIC
FORCE MARKETING MOUTH RELATION
% OF RESPONDENTS
73
TABLE NO 14
Parameters Score
Regulatory System 5
Technology Advancements 6
Credit Quality 5
Diversification of market beyond big
4
cities
Size of Bank 5
Banking Infrastructure 4
Labor Inflexibilities 3
INTERPRETATION
i. The Indian banking sector has scored over its counterparts not only in
developing but also even in developed world such as Japan, Singapore and
ii. Technology has given birth to a new era in banking. Technology can be the key
differentiator between two banks and a major factor to attain competitive edge.
Though slow in the beginning, HDFC Bank seem to have paced up in adoption
of advanced technology.
imperative to keep a check on the quality of credit to ensure good health of the
74
iv. One of the key fundamentals of banking sector – Credit Quality too has been
v. Even though HDFC Bank is a big player in Indian Banking sector still it is not
vi. HDFC Bank as earlier said is a large player in the Indian Banking Sector,
labour inflexibilities.
GRAPH NO 14
75
STRENGTHS AND WEAKNESS OF HDFC
BANK Score
Labor Inflexibilities 3
Banking Infrastructure 4
Size of Bank 5
Credit Quality 5
Technology Advancement 6
Regulatory Systems 5
0 2 4 6 8
FINDINGS
As stated earlier there are main two types of consumers in this field and they are:
76
Now all are competing with each other on the basis of different strategies or
combination of one or more strategies. But if we try to summarize the strategies then we
will find that most of these are common and including all these are not more than the
followings: -
i. QUALITY SERVICE:
Quality Service is the most important strategy used to compete in this market because
customers is no more centric only in India, they need better quality in the service
HDFC Bank.
ii. ADVERTISEMENTS:
Only ICICI BANK and UTI BANK are countering HDFC BANK in market through
iii. PERFORMANCE:
HDFC Bank lacks on the prompt action where as others are a bit ahead in this line.
HDFC Bank takes nearly 8 10 days to open a salary account for tie customer company.
This is mainly because HDFC bank follows the guidelines of RBI and the required
number of documents for account opening in a bit regress. But when it comes to service
77
v. POTENTIAL MARKET:
documentation and lesser time is spend in convincing the customer about HDFC Bank
78
SUGGESTIONS
After talking to customers and staffs I suggest the following points to keep customers
happy
QUICK SERVICE: -
HDFC Bank must try to provide services as early as possible and reduce the time gap
between date promised and work performed so that customer must not get irritated.
PROPER CO-ORDINATION: -
Staffs of HDFC are still not comfortable with the queries of customers about their new
service, as they sometimes feel dumb to some of the questions. They must get proper
updating from the head office related to any changes or problems faced by the staffs.
HDFC Bank needs to be more organized in terms with area division among the various
internal sales teams. The potential market should be followed up in order to get good
sales number.
QUALITY SERVICE: -
Number of days has passed yet my account opening process is under process
I have not receive my personalized cheque book as it has been more than a month after
I have made a number of complaints but no one is hearing HDFC Bank has to resolve
them as early as possible because it affects the service quality very badly.
79
Conclusions
MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY
ACCOUNT (CONCLUSION):
Marketing Strategies of HDFC Bank India Ltd. It was really very interesting interacting
with customers and have an insight into HDFC Banks brand image in their minds.
The main aim was to know the factors & attributes of brand, and services provided by
it, which companies look for in Corporate Salary Account. From the survey, overall
conclusion was that people are quite satisfied with HDFC Banks Corporate Salary
Account services.
80
LIMITATIONS
i.) AREA LIMITATION: The study was limited to Pune city only. Hence findings may
ii). NON-RESPONSE ERROR: It is almost impossible to obtain data from each &
every respondent covered in sample. There are always some respondents who refuse
to give information
iv.) TIME CONSTRAINT: There was time constraint to this project. The project has to
v.) BUSY RESPONDENT: Many times respondents were so busy that they didn’t t
vi.) OTHER REASONS: There were heavy rains during the period of survey. So there
81
Questionnaire
2. Industry
B) Information Technology
C) Automobile
D) Pharmaceutical
E) Infrastructure
F) Telecommunication
4. Designation: ______________________________________________________
d) Others: ____________________________________________
82
11. Are you satisfied with existing Banker?
a) Yes b) No
12. Do you expect better products and services from your banker?
a) Yes b) No
a) Excellent
b) Good
c) Satisfactory
d) Unsatisfactory
A) Yes b) No
To - ______________________________________________________
a) Good
b) Satisfactory
C) Unsatisfactory
83
17. Would you like to shift to other Bank, if provided better product &Services?
a) Yes b) No
Date -
Place –
84
Bibliography
i. The Economic Times
iii. www.economictimes.com
iv. www.hdfc.com
v. www.hdcbank.com
vi. www.indiabulls.com
vii. www.icicibank.com
viii. http://www.citibank.com/us/d.htm
85