report hdfc

7/28/2019 Report HDFC

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CHAPTER 1 INTRODUCTION . ..3-111.1 General Introduction ..3

1.2 Industry Profile 3

a. Origin and Development of the industry4

b. Growth and Present Status of the industry...6

c. Future of the industry ..9

CHAPTER 2 PROFILE OF THE ORGANISATION..12-29

2.1 Origin of the Organization .. 13

2.2 Growth and Development of the Organization 14

2.3 Present Status of the Organization . 17

2.4 Functional Departments of the Organization ... 19

2.5 Organization Structure and Organization Chart ..22

2.6 Product and Service Profile of the Organization Competitors .. 24

2.7 Market Profile of the Organization 28

CHAPTER 3 DISCUSSIONS ON TRAINING - 30-33

3.1 Student's Work Profile (Roles and Responsibilities) . 31

3.2 Description of Live Experience 32

CHAPTER 4 STUDY OF SELECTED RESEARCH PROBLEM 34- 47

4.1 Statement of Research Problem.. 35

4.2 Statement of Research Objectives ........ .35

4.3 Research Design and Methodology 35

4.4 Analysis of Data . . 38

4.5 Summary of Findings 46

CHAPTER 5 SUMMARY AND CONCLUSIONS . 48- 52

5.1 Summary of Learning Experience.. 50

5.2 Conclusions and Recommendations . 50

APPENDIX .52

BIBLOGRAPHY.56


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CHAPTER-1

INTRODUCTION

General Introduction:-

The project was carried out for understanding the customer preference &

attributes towards saving Account of HDFC Bank and its market

potential.HDFC Bank was established in the year 1994, they are old

player in banking sector, The bank has two principle client segments

customer and asset management. The bank follows values such as

Integrity, teamwork, respect, professionalism, & Mission. The segment of

bank we are considering here is- Corporate banking. The product out of

which have chosen for research is Saving Accounts. This research helps

us in finding out the customers view regarding the product and Services

offered by the HDFC bank and awareness by promotion and also

identifying the market potential of the product offered by the HDFC

bank.


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1.2 Industry Profile:-

a.) Origin and development of the industry:-

Banking in India originated in the first decade of 18th century. The first banks

were The General Bank of India, which started in 1786, and Bank of

Hindustan, both of which are now defunct. The oldest bank in existence in

India is the State Bank of India, which originated in the "The Bank of Bengal"

in Calcutta in June 1806. This was one of the three presidency banks, the

other two being the Bank of Bombayand the Bank of Madras. The presidency

banks were established under charters from the British East India Company.

They merged in 1925 to form the Imperial Bank of India, which, upon India's

independence, became the State Bank of India. For many years the

Presidency banks acted as quasi-central banks, as did their successors. The

Reserve Bank of India formally took on the responsibility of regulating the

Indian banking sector from 1935. After India's independence in 1947, the

Reserve Bank was nationalized and given broader powers.

A couple of decades later, foreign banks such as Credit Lyonnais started their

Calcutta operations in the 1850s. At that point of time, Calcutta was the most

active trading port, mainly due to the trade of the British Empire, and due to

which banking activity took roots there and prospered.
http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Credit_Lyonnaishttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/British_Raj


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First of all we must note the fact that these institutions have changed very

much in character since their origin, and consequently nowadays perform

many functions unknown to those of former times. The first banks seem to

have arisen in connection with the business of exchangingmoney. In ancient

times and especially in the Middle Ages the varieties of coins were greater

even than at the present day, and they were much less perfectly and honestly

minted. Specialists were, therefore, required to determine their exact value

and equivalence and to exchange coins of one mintage for those of another,

and their BANK were in great demand at fairs and other places where

merchants of different nations met forpurposes of trade. Inasmuch as they

kept their boxes or chests of coins on benches or "banken," the name

bankers came to be applied to them. On account of their technical knowledge

and the fact that they were obliged constantly to keep on hand considerable

quantities of the precious metals, this business in the early Middle Ages was

usually carried on by goldsmiths, but later it was sometimes assumed by the

governments of large commercial cities, as, for example, by Amsterdam in

1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank

of Amsterdam was the most important and may be regarded as typical of

these early institutions.

From the earliest times also, bankers have been the chief agents through

which foreign exchanges have been conducted. As dealers in coin and bullion

they had international connections and a knowledge of international affairs not

possessed by other merchants, and were, therefore, in a position to undertake

the settlement of international accounts by means of orders drawn on bankers

in other countries or other cities with whom they had regular business
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transactions. As keepers of other people's money they also promoted saving,

and banks thus became in time the chief savings institutions of the country.

b. Growth and present status of the industry:-

Currently (2009), banking in India is generally fairly mature in terms of supply,

product range and reach-even though reach in rural India still remains a

challenge for the private sector and foreign banks. In terms of quality of

assets and capital adequacy, Indian banks are considered to have clean,

strong and transparent balance sheets relative to other banks in comparable

economies in its region. The Reserve Bank of India is an autonomous body,

with minimal pressure from the government. The stated policy of the Bank on

the Indian Rupee is to manage volatility but without any fixed exchange rate-

and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some

time-especially in its services sector-the demand for banking services,

especially retail banking, mortgages and investment services are expected to

be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to

increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.

This is the first time an investor has been allowed to hold more than 5% in a

private sector bank since the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public

sector banks (that is with the Government of India holding a stake)after
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merger of New Bank of India in Punjab National Bank in 1993, 29 private

banks (these do not have government stake; they may be publicly listed and

traded on stock exchanges) and 31 foreign banks. They have a combined

network of over 53,000 branches and 17,000 ATMs. According to a report by

ICRA Limited, a rating agency, the public sector banks hold over 75 percent of

total assets of the banking industry, with the private and foreign banks holding

18.2% and 6.5% respectively

Introduction of many more products and facilities in the banking sector in its

reforms measure. In 1991, under the chairmanship of M Narasimham, a

committee was set up by his name which worked for the liberalization of

banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are

being put to give a satisfactory service to customers. Phone banking and net

banking is introduced. The entire system became more convenient and swift.

Time is given more importance than money.

In 1995, the Brookings Institution published a paper entitled The

Transformation of the U.S. Banking Industry: What a Long, Strange Trip Its

Been. Using a breathtaking array of facts and figures, the paper described in

great detail the dramatic changes that had occurred in the U.S. commercial

banking industry over the 15 years from 1979 to 1994. The banking industry

was transformed during that period, according to the paper (p. 127), by the

massive reduction in the number of banking organizations; the significant

increase in the number of failures; the dramatic rise in off-balance sheet

activities; the major expansion in lending to U.S. corporations by foreign
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banks; the widespread adoption of ATMs; . . . and the opening up of interstate

banking markets. The paper went on to explain that most of these major

changes in banking could be traced to two developments: (1) the

extraordinary number of major regulatory changes during the period, from

deposit deregulation in the early 1980s to the relaxation of branching

restrictions later in the decade; and (2) clearly identifiable innovations in

technology and applied finance, including improvements in information

processing and telecommunication technologies, the securitization and sale

of bank loans, and the development of derivatives markets. Other research

would later confirm the papers assessments and its explanation of the course

of events in the banking industry over the period 19791994.

Over the two decades 19842003, the struct

ure of the U.S. banking industry indeed underwent an almost unprecedented

transformationone marked by a substantial decline in the number of

commercial banks and savings institutions and by a growing concentration of

industry assets among a few dozen extremely large financial institutions. This

is not news. As mentioned above, the decline in the number of banking


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organizations has been ongoing for more than two decades and has been

well documented in the literature. Nevertheless, a brief overview will serve to

clarify both the scope of the decline and the increasing concentration of

assets among the nations largest banking organizations

At year-end 1984, there were 15,084 banking and thrift organizations (defined

as commercial bank and thrift holding companies, independent banks, and

independent thrifts). By year-end 2003, that number had fallen to 7,842a

decline of almost 48 percent (figure 1). Distributed by size, nearly all the

decline occurred in the community bank sector (organizations with less than

$1 billion in assets in 2002 dollars), and especially among the smallest size

group (less than $100 million in assets in 2002 dollars). Yet the community

banking sector still accounts for 94 percent of banking organizations

c. Future of the industry:-


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The burden of reporting and other regulatory requirements will fall heavily and

disproportionately on small banks unless remedial action is taken. Further

advances in information technology will permit the development of new

products, BANK, and risk-management techniques but may also pose

important competitive and supervisory issues. Nonbank entities will continue

to

offer bank-like products in competition with banks, raising anew the question

of whether banks are still special and, more fundamentally ,whether banks

are sufficiently different from nonblank firms to justify the maintenance of a

safety

net for banks. It is useful, therefore, to try to chart the course of the banking

industry in the next five to ten years and to consider what policy issues the

industry and regulators will face. The authors of this study do not pretend to

be clairvoyant. They are mindful of the many financial predictions that were

once offered with confidence but turned out to be wrong or premature. This

study is perhaps best described as an exercise in strategic thinking. Its

approach is to analyze what has happened in the recent past, consider in

detail reasons for expecting recent trends to continue or to change, and draw

the consequences for bank and regulatory policies. As always, uncertainties

abound, and

events that may now appear fairly improbable may in fact shape the future.

This paper closeswith a discussion of a number of such possible events. The

future-of-banking study addresses three broad questions:


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1. What changes in the environment facing banking can be expected in the

next five to ten years?

2. What are the prospects for different sectors of the banking industry in this

anticipated environment? Because the banking industry is not monolithic and

different segments of the industry have, to some degree, different

opportunities and vulnerabilities, the study considers separately the prospects

for large, complex banking organizations; regional and other midsize banks;

community banks; and limited-purpose banks.

3. What policy issues are the industry and regulators likely to face in the years

ahead? Separate consideration is given to


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CHAPTER-2

PROFILE OF THE

ORGANISATION

2.1 Origin of the Organization:-

Housing Development Finance Corporation Limited, more popularly known as

HDFC Bank Ltd, was established in the year 1994,

as a part of the liberalization of the Indian Banking Industry by

Reserve Bank of India (RBI). It was one of the first banks to receive an 'in

principle' approval from RBI,

for setting up a bank in the private sector. The bank was incorporated with the

name 'HDFC Bank Limited', with its registered office in Mumbai. The following

year, it started its operations as a Scheduled Commercial Bank.

HDFC Bank Limited. The Group's principal activities are to provide banking

and other financial BANK. The Group operates through four segments:

Treasury, Retail Banking, Wholesale Banking and Other Banking Business.

The Treasury BANK segment consists of net interest earnings on investments

portfolio of the bank and gains or losses on investment operations. The Retail


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Banking segment serves retail customers through a branch network and other

delivery channels. This segment raises deposits from customers and makes

loans and provides advisory BANK to customers. The Wholesale Banking

segment provides loans and transaction BANK to corporate and institutional

customers. The Other Banking Operations segment provides BANK relating

to credit cards, debit cards, third party product distribution and primary

dealership business and other associated costs. The Bank was Incorporated on

30th August 1994. A new private sector Bank promoted by housing Development

Corporation Ltd. (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. Certificate of Commencement of Business wasreceived on

10th October 1994 from RBI. The Bank transacts both traditional commercial

banking as well as investment banking. HDFC, the promoter of the bank has

entered into an

agreement with National Westminister Bank Pc. and its subsidiaries (Nat

west Group) for subscribing 20% of the banks issued capital and providing

technical assistance in relation to the banks proposed banking business.


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2.2 Growth and Development of the Organization:-

1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte.

Ltd. Another 400,00,000 equity shares were allotted on private placement

basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the

public on 9.5.95 The Bank opened its first branch in Ramon House at

Churchgate, Mumbai on January 16th.

The Bank has created an efficient operating system using well tested state-of-

the-art software.

1995

70 No. of equity shares issued to subscribers to the Memorandum &Articles of

Association on 30th August 1994. On the same date 500,00,000 equity

shares were allotted to HDFC promoters. 509,20,000 shares were allotted to

HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust

on 22nd December,

1996

HDFC Bank has entered the banking consortia of over 50 corporates,

including some leading multinational companies, flagship companies of local

business houses and strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all

transactions possible in Indian financial markets.


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The Certificates of Deposits were awarded a PP1+ rating which is the highest

rating for short term instruments indicating superior capacity for repayment.

2001

- The Bank has opened its first branch in Aurangabad. HDFC Standard Life

Insurance has entered into a memorandum of understanding with the

Chennai-based Indian Bank. The Bank has launched the international

Maestro debit card inassociation with Master Card. HDFC Bank will launch its

credit card in June through link-ups with MasterCard and Visa.LTtrade.com

has entered into a strategic tie-up with HDFC Bank to provide Net banking

BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat

Petroleum Corporation have joined the eCash Forum which has been set up

by the Smart Card Forum of India. HDFC Bank has launched a new campaign

for its eage savings account. HDFC Bank entered into a strategic tie-up with

Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small

and Medium enterprises.

Today HDFC Bank has 1,412 branches and over

3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on

an online real-time basis. ] As of September 30, 2008 the bank had

totalassets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has

reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total

annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore

in 2008-09.

2.3 Present Status of the Organization:-
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Housing Development Finance Corporation Limited, more popularly known as

HDFC Bank Ltd, was established in the year 1994, as a part of the

liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It

was one of the first banks to receive an 'in principle' approval from RBI, for

setting up a bank in the private sector. The bank was incorporated with the

name 'HDFC Bank Limited', with its registered office in Mumbai. The following

year, it started its operations as a Scheduled Commercial Bank. Today, the

bank boasts of as many as 1412 branches and over 3275 ATMs across

India.Amalgamation

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private

sector bank promoted by Bennett, Coleman & Co. / Times Group). With this,

HDFC and Times became the first two private banks in the New Generation

Private Sector Banks to have gone through a merger. In 2008, RBI approved

the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this,

the Deposits of the merged entity became Rs. 1,22,000 crore, while the

Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000

crore.

March 2010 March 2011 March 2012

Citied 228 316 452

Branches 535 684 1412

ATMs 1323 1605 3275


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Head Office

HDFC Bank

Ramon House, 169, Backbay Reclamation,

H T Parekh Marg, Churchgate

Mumbai - 400020

Phone: +91 (22) 66316000, 66636000, 66316060

Fax: +91 (22) 22048834

Website: www.hdfc.com

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it

in terms of information technology or communication systems. All the braches

of the bank boast of online connectivity with the other, ensuring speedy funds

transfer for the clients. At the same time, the bank's branch network and

Automated Teller Machines (ATMs) allow multi-branch access to retail clients.

The bank makes use of its up-to-date technology, along with market position

and expertise, to create a competitive advantage and build market share.

Capital Structure

At present, HDFC Bank boasts of an authorized capital of Rs 550 crore

(Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In

terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional

Investors (FIIs) have around 28% of the equity and about 17.6% is held by the


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ADS Depository (in respect of the bank's American Depository Shares (ADS)

Issue). The bank has about 570,000 shareholders. Its shares find a listing on

the Stock Exchange, Mumbai and National Stock Exchange, while its

American Depository Shares are listed on the New York Stock Exchange

(NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:-

The functional departments of the organization consists of the HR

department, the administrative department and the executive department. The

HR department of the organization consists of the people who employ the

Persons who they think would be able to do justice with the job handled.The

administrative department of the organization consists of the director and the

manager of the organization. They preside the organization and control all the

operations of the organization such that the organization could run in a

smooth and effective manner. The executive department of the organization

consists of the various employees Who execute the job undertaken by them.

The employees consists of the team leaders, the Corporate financial

consultants,. the telecallers, various staffs and junior staffs who are the main

structural framework of the organization. The organization thus runs with the

effective coordination of the HR department, the administrative department

and the executive department such that the supervisors of the organization

preside over the subordinate employees to give them directions about fulfilling

their works most efficiently and effectively. Technical Consultancy

Department: The Technical Consultancy Department is responsible for


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technical appraisal of industrial projects. The mission of the division is aimed

towards the verification of the technical viability of industrial projects and

assisting the Funds management in taking the decisions that require technical

expertise. Moreover, it is responsible for conducting technical studies and

rendering technical consultancy BANK to certain industrial sectors for the

purposes of investigating modern technologies and productivity levels for local

manufacturing plants.

H R Department:

HDFC Human Resources department plans and direct for the employee

population as well as they are having the following functions as:-

Hiring

Promotions

Reassignments

Position classification and grading

Salary determination

Performance appraisal review and processing

Personnel data entry and records maintenance

Policy development

Work permitting immigration visa program

Workers compensation


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Finance Department:

The Finance Manager is responsible for all aspects of the accounting and

financial administration of the HDFC, the supervision of the implementation of

the HDFC financial policies, directives and procedures and the initiation of the

financial plans within the guidelines of HDFC The department contains

several distinct sections, each of which is responsible for a proportion of the

activities taking place within the finance department.

Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role within the

Fund as it studies and analyzes marketing information in order to build solid

base for management decisions. The division also assists projects sponsors

in formulating solid marketing strategies to improve their industries and

strengthen their position in the local and international markets.

Research Department:

The Research Department is having the capacity to act through four

composing units i.e., the market research unit, economic studies unit, and

statistical studies unit. It is the mission of the division to provide support BANK


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for information and consultancy to the senior management and division in the

areas of economic, statistical and marketing information and consultancy

through data analysis, processing of economic and statistical data, market

research studies and publishing related periodical reports.

2.5 Organization Structure and Organization Chart:-

The organization structure of the company HDFC is such that it comprises of

the departments and the employees in the hierarchical order so that they are

able to perform their functions and duties smoothly and effectively doing their

job in a manner in which it should be done. The organization is headed by the

administrative department which coordinates and controls the executive

department. The executive department is a link from the top and the bottom

comprising of the lower level employees such that they work together to fulfill

the common objective of getting business from the persons who get in touch

with them and see to it that they are provided with the best of the BANK which

constitute giving financial advise to providing Account to the customers. The

lower level employees and the corporate financial consultants work together

to see to it that the database for providing financial BANK to sufficient number

of people is made .They work together to see to it that this database is

followed and worked upon such that more and more number of people get

themselves avail the financial BANK of the organization. Team leaders who

form the part of the administrative department of the Organization make sure

that the clients that turn up for the financial BANK are dealt with most

efficiently and effectively.


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The organizational structure is well planned out and it follows a simple format

which is follows:

Organization Chart:-

Each team lead has a team comprising only of both senior as well as junior

market research analyst who aid the team lead in the entire market research


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process as it has been discussed previously. This is the basic organizational

structure followed by HDFC BANK.

2.6 Product and service profile of the organization:-

HDFC Bank offers a bunch of products and services to meet the every need

of the people. The company cares for both, individuals as well as corporate

and small and medium enterprises. For individuals, the company has a range

accounts, investment, and pension scheme, different types of loans and cards

that assist the customers. The customers can choose the suitable one from a

range of products which will suit their life-stage and needs. For organizations

the company has a host of customized solutions that range from Funded

services, Non-funded services, Value addition services, Mutual fund etc.

These affordable plans apart from providing long term value to the employees

help in enhancing

Goodwill of the company. The products of the company are categorized into

various sections which are as follows:

Personal Banking

Savings Accounts

Salary Accounts

Saving Accounts


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Fixed Deposits

Demat Account

Safe Deposit Lockers

Loans

Credit Cards

Debit Cards

Prepaid Cards

Investments & Insurance

Forex Services

Payment Services

NetBanking

InstaAlerts

MobileBanking

InstaQuery

ATM

PhoneBanking

NRI Banking

Rupee Savings Accounts

Rupee Saving Accounts


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Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Quick remit (North America, UK, Europe, Southeast Asia)

India Link (Middle East, Africa)

Coequal Lock Box

In todays world many companies have emerged who have taken a serious

note on the importance of market research and he advantages of using it for

the better growth and development of the company. Hence, our competitors

are those companys who are in the market research and development field

as well as the consultancies, since they also make use of market research

and business developers.

The products and BANK of our competitors are as follows:

A. Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their

characteristics. They also conduct tailored customer satisfaction surveys to

gauze customer satisfaction.

B. Risk


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These BANK are used by the competitors in order to gather external

information and research the possible effect on the competitiveness of

company.

C.

D. Product Research BANK:

The conduction of extensive product research by this service helps the

competitors to find out the marketability of a product or service. The research

can be utilized to leverage the major decisions of a company on the marketing

of its products.

E. Advertising Research BANK:

Advertising research strives to gain valuable information about the effects and

reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we

take up:

1. The timetable for the search is indicated and the search process

commences.

2. Target companies are examined, using any prior information provided by

business development executives in conjunction with sources of information


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and prospective companies already known to us, augmented with original

study by our search team.

3. We maintain a regular channel of communication with the client to keep

them apprised of the results emerging.

2.7 Market profile of the organization:-

HDFC Bank Limited provides various financial products and services. It

operates in three segments: Retail Banking, Wholesale Banking, and

Treasury. The Retail Banking segment provides various deposit products,

including savings accounts, current accounts, fixed deposits, and demat

accounts. It also offers auto, personal, commercial vehicle, home, gold, and

educational loans; loans against securities, property, and rental receivables;

and health care finance working capital finance, construction equipment

finance, and warehouse receipt loans, as well as credit cards, debit cards,

depository, investment advisory, bill payments, and transactional services. In

addition, this segment sells third party financial products, such as mutual

funds and insurance, as well as distributes life and general insurance

products through its tie-ups with insurance companies and mutual fund

houses. The wholesale banking segment provides loans, non-fund facilities,

and transaction services to large corporate, emerging corporate, small and

medium enterprise, supply chain, public sector undertaking, central and state

government departments, and institutional customers. It offers deposit and


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transaction banking products, supply chain financing, working capital and term

finance, agricultural loans, and funded, non-funded treasury, and foreign

exchange products. These segments services include trade services, cash

management, money market, custodial, tax collection, and electronic banking.

In addition, it provides correspondent bank services to co-operative banks,

private banks, foreign banks, and regional rural banks; and wealth

management products for non-resident Indians. The Treasury Services

segment operates primarily in areas, such as foreign exchange, money

market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank

had a network of 1,412 branches and 3,295 automated teller machines in 528

cities in India. The company was founded in 1994 and is based in Mumbai,

India.

In todays growing world everyone needs to diversify their business so as to

keep in touch with the rapid development. By analyzing the growing concerns

of the market, HDFC has clients varying from investment banking sector,

retail, web designing companies, etc. Due to this rapid development HDFC

Group has many teams working for the above mentioned sectors.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-

class Indian Bank". We realized that only a single-minded focus on product

quality and service excellence would help us get there. Today, we are proud

to say that we are well on our way towards that goal.


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CHAPTER-3

DISCUSSIONSON

TRAINING


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3.1 Students work profile

Role and Responsibilities:-

The work profile of the student or the roles and responsibilities that are being

handled by the student on his internship programmed at HDFC BANK.

The first day and during the first week of the internship programmed the new

employee of the HDFC BANK was welcomed by giving an induction

programme in order to make him understand his role and responsibilities

during his stay in the organization.

Being appointed as a Financial Corporate Consultant at HDFC BANK during

the internship programme my duty or the role is to meet 5 clients, collecting

financial health check, analyzing and giving them financial planning how their

net asset value will be increase and how they fulfill their short-term and long-

term financial goal so that it can be assessed that which ACCOUNT they

need suiting their financial obligations.

Leads and databases created by the students have to be used by them in

order to convince people of different age groups to take account according to

their needs and suitability.

The student calls people according to the leads and database created

by him and convinces people to take the account.

During the absence of the recovery executives/collection executives, it will

be my duty and responsibility to meet the customers against payments apart


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from my regular job profile and reporting the same to my team leader at

HDFC BANK.

To explain the customers how a particular account would help them to

make their lives more secure providing security to them.

I use all the financial knowledge that has been given by the

company and I has as a MBA student and a student of Mar. so

that the customer realizes that he definitely needs to take a

particular account.

Must educate the clients about risks and various possible scenarios so

that the clients dont harbor unrealistic expectations.

3.2 Description of live experience:-

The office of HDFC BANK is blessed by brilliant and skilled professionals and

team leader who have the responsibility of handling the Financial Corporate

Consultants. The team leader provides the particular days plan of action and

then guide show to go about for executing the plan of action successfully .Till

the time a Financial Corporate Consultant is in the office he receives the

valuable suggestions and insights of the team leader. This prepares him for

the days Work and provides him the necessary directions to achieve not only

the target of the day but the target of the month. In the office the Financial

Corporate consultant make calls continuously to fix the follow-up

appointments so that on the basis of the financial health check collected by

him and also getting the follow-up appointments from the telesales she goes

in the field for making up the appointments.


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CHAPTER-4

STUDY OF

SELECTED

RESEARCH

PROBLEM


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4.1 Statement of research problem:-

PROBLEM DEFINATION:

Sales Executives were with good background human being and through

rigorous process of recruitment but still not able to perform up to the

expectation level of company, HR is not able to sort out the problem why the

performance is not coming even after giving the full marketing support. The

communication technique and dealing with the customers is also a problem to

the sales

executives.

4-2 OBJECTIVES OF RESEARCH PROJECT:

RESEARCH OBJECTIVES:

To find out the customer preferences while opening Savings A/c.

To study brand image of the bank.

To increase the business of the bank.

4.3 Research Design and Methodology

Primary data source: All the people from different profession were personally

visited and interviewed. They were the main source of Primary data. The

method of collection of primary data was direct personal interview through a

structured questionnaire.


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Secondary Data Source: It was collected from internal sources. The

secondary data was collected on the basis of organizational file, official

records, news papers, magazines, management books, preserved information

in the companys database and website of the company.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take

sample from the universe to know about its characteristics.

Sampling Units: Customers

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 100 respondents. Since it was not

possible to cover the whole universe in the available time period, it was

necessary for me to take a sample size of 100 respondents.

RESEARCH LIMITATIONS:

It was not possible to understand thoroughly about the different marketing

aspects of the Financial Consultant within 60 days. As stipend, money was

not given it was difficult to continue the project work. All the work was limited

in some limited areas of Delhi so the findings should not be generalized. The

area of research was Delhi and it was too vast an area to cover within 60

days.


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All the findings and conclusions obtained are based on the survey done in the

working area within the time limit. I tried to select the sample representative of

the whole group during my job training. I have collected data from people

linked with different profession at Bangalore.

4.4 Data Analysis

Q 1:What is your Monthly Transaction in your account ?

Monthly transactions No. of respondents % (percentage)

5-20 lakhs 28 28%

20-40 lakhs 59 59%

40 lakhs and above 13 13%

Total 100 100%

Chart 1:

Analysis:

59% respondents gave their answer in 20-40 lakhs transactions.

0%

10%

20%

30%

40%

50%

60%

70%

05L- 20L 20L - 40L 40L - Above

05L- 20L

20L - 40L

40L - Above


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28% respondents gave their answer in 0-20 lakhs transactions.

13% respondents gave their answer in 40 lakhs and above

transactions.

Question 2

Do you have a Saving Account?

Response No. of respondents %Yes 97 97%

No 3 3%

Chart 2:

97%

3%

Yes No

Analysis: 97% respondents have the saving accounts and only 3% do not

have saving account.


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Question 3

In Which Bank?

Bank No. of respondents %

Kotak mahindra 3 3%

HDFC 33 33%

Co-operative 48 48%

ICICI 5 5%

Nationalized 31 31%

Chart 3

HDFC, 33%

ICICI, 5%

Nationalized, 31%

Co- Operative

Bank, 48%

Kotak Mahindra

Bank, 3%

HDFC ICICI Nationalized Co- Operative Bank Kotak Mahindra Bank

Analysis: 48% have saving account in co-operative, 3% in kotak mahindra,

33% in HDFC, 5% in ICICI, and 31% in nationalized bank.

Question 4

Which Factors do you consider for opening a Savings Account?

No. of respondents %

Accessibility 10 10

Minimum balance 20 20DD/pay order 13 13


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Free cheque 10 10

Debit card 8 8

Cash deposit 7 7

Cheque pick up 2 2

Net banking 16 16

Mobile banking 7 7At per cheque 3 3

NEFT 2 2

RTGS 2 2

Total 100 100

Chart 4


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02

4

6

8

10

12

14

16

18

20Accessibility

Minimum

balance

DD/pay order

Free cheque

Debit card

Cash deposit

Cheque pick up

Net banking

Mobile banking

At per cheque

Analysis:

Respondents gave their answer

10% respondents gave their answer in accessibility, 20% Minimum balance,

13 % DD/pay order,10% Free cheque, 8% Debit card, 7% Cash deposit, 2%

Cheque pick up, 16% Net banking, 7% Mobile banking, 3% At per cheque,

2% NEFT, 2% RTGS.

Question 5

Which mode of transaction do you avail of frequently?

Response No. of response %Pay order 12 12


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DD 22 22

Cheque 76 76

Total 100 100

Chart 5

Cheque, 76%

DD, 32%

Pay Order, 12%

Cheque DD Pay Order

Analysis:

12% Response in pay order, 32% like DD, and 76 % costumer want from

cheque mode.

Question 6

Which types of transaction do you make ?

Response No. of respondents %

Intercity 33 33

Outside city 15 15

Both 52 52

Total 100 100


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Chart 6

Analysis:

33% account holder transaction intercity, 52 % Both, and 15% outside city.

Question 7

Does your bank assist you in case of any problem?

Response No. of respondents %

Yes 90 90

No 10 10

Total 100 100

Chart 7

Inter city, 33%

Both, 52%

Outside

City, 15%


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90%

10%

Yes No

Analysis:

90% say yes bank will assist you in case of any problem, only 10% say no.

4.5 Summary of Findings

The final draft of the questionnaire was prepared on the basis of the

observations from the pilot study. These were then finally filled by 100

customer, for the conclusive study.

Finally the data collected was fed into the data analysis to be analyzed

using statistical techniques.

Types of Primary Data collected:

Socioeconomic Characteristics:

characteristics are sometimes called states of being in that they

represent the type of people. The factors on which we are working are


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occupation. Monthly transaction is also an important parameter but it is

difficult to verify. Although the amount of money that business unit earns in

a month is an absolute, not a relative quantity but it is a sensitive topic in

our society and it is difficult to determine.

Attitudes/Opinions:

Through the questionnaire we have tried to get hold of business

preference, inclination and requirement. Attitude is an important notion in

the marketing literature, since it is generally thought that the attitudes are

related to the behavior of businessmen.


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Motivation:

Through the questionnaire we have tried to find the hidden need or want of

businessmen and have tried to find if these people can be tapped as the

potential customer for HDFC Bank.

Behavior:

Behavior concerns what subjects have done or are doing. Through the

questionnaire we have tried to find out the behavior of the individuals

regarding the product and their responses. If the responses are favorable then

the person can be said to be our potential customer. The primary data serves

as an important tool to measure the behavioral trend of the customer. It helps

in answering some of the vital Questions.

Obtaining the Primary Data:

The data collection was primarily done through communication.

Communication involves questioning respondents to secure the desired

information, using a data collection instrument called questionnaire. The

questions were in writing and so were the responses.

Versatility:

It is the ability of a technique to collect the information on the many types of

primary data of interest to marketers. It has also been found that some of the

people do not answer truthfully to all the questions especially in the case of

the personal details


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CHAPTER 5

SUMMARY

ANDCONCLUSIONS


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5.1Summary of Learning Experience

Almost all the Banks offer similar features and facilities with their Savings

accounts. There are certain reasons for existing customers of Saving

Account of any Bank to shift to another Bank.

The level of service in terms of delivering whatever is promised, fast

response in case of problems, is the most important benefit that the

customers seek, from the Bank they have a Saving Account with.

1. Network reach and visibility of a Bank is a very important criterion for

the customer while opening a Saving Account. We can also conclude

from our analysis that network reach in terms of Branches and ATMs is

directly proportional to the market share in case of Private Players.

2. In case of a new customer, if a bank approaches it first for opening a

Saving Account with them, then there is a good chance for the bank of

getting many future businesses and cross sales from the deal.

3. Aggressive Marketing is the key to increasing the market share in this

area, since the market has a lot of potential both in terms of untapped

market .

Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the

product features and its value added services to make customers

product selection convenient.


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2. Contract Sales Executive (CSE) should recommend right product to

the right customer so as to ensure a high degree of satisfaction among

the customer.

3. The bank needs to make people aware about there products and the

basic benefits they can derive out of it. And also the differential

features of its savings account as compared to other banks.70% of the

people did not even know about the concept, benefits and features of

its saving accounts.

4. The bank should also target small business unit for whom

maintenance of the AQB is not a problem as this segment is not much

penetrated.

5. Though the bank offers free doorstep banking once a day this fact is

also not known to many customers or they still do not trust this service

what ever the reason the bank can popularize this service to gain an

edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic

factors as a reason for banking with a particular bank, Standard

Chartered needs to improve the services provided to its existing

customers before attracting more in the future and use word of mouth


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as a promotional tool to increase the sales potential of its savings

account.

LIMITATIONS

Some of the limitations of the project are listed as below:

1. The time bound period is the major limitation in research projects.

2. Due to the financial and time constraints a cluster analysis of the

population so as to get better results was not feasible.

3. The research conduct in Bangalore city only.

4. It was difficult to break the ice with the common people initially. It was a

daunting task to convince them to fill in the personal details of the

questionnaire where they have to mention the monthly income,

occupation etc.

5. To convince the people for a proper interviewing process is also

difficult.

6. Compilation of data on competitor analysis was difficult due to non-

availability of correct information.

7. The figures have been taken as approximations.


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QUESTIONNAIRE-Name of Respondent

_________________________________

Contact No.

_______________________

1. Monthly Transaction?

________________________________________________

2. Do you have saving Account?

(a) Yes (b) No

3. If Yes Which banks-

o ICICI

o HDFC

o Kotak Mahindra Bank

o Nationalized

o Other Banks _________________

o Co-Operative Banks___________________

4. Which Factors do you consider for opening a saving Account

Accessibility Cheque Pick upo Net Banking

o Mobile Banking

o At Par Cheques

o NEFT

o RTGS


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o Minimum Balance

o DD/ Pay Order

o Free Cheque

o Debit Card

o Cash Deposit

5. Which mode of transaction do you avail frequently?

(a) Cheque ( b) DD (c) Pay Order

6. Which type of transaction do you made

(a) Inter city (b) Intra city (c) Both

7. Does your bank assist you in case of any problem

(a) Yes (b) No

8.. What are the additional Benefits do you expect from a Saving Account?

____________________________________________________________

____________________________________________________________

_____________________.

Date___________________

Place__________________

Signature


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BIBLIOGRAPHY

1.BOOKS & AUTHORS

Marketing Management

2. NEWS PAPERS

Times of India

Financial Express

3. WEBSITES

www.hdfcbank.com

www.google.com
http://www.google.com/http://www.google.com/

report hdfc

Documents