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Summer Project Report

Study on process improvements of Transfer process In HDFC Bank

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTFOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BYSHANTANU DUBEY

(BBA/4533/07)

Department of Management

Birla Institute of TechnologyNoida Campus

BIRLA INSTITUTE OF TECHNOLOGY(Deemed University U/S of UGC Act, 1956)

MESRA, RANCHI, JHARKHAND

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DECLARATION CERTIFICATE

This is to certify that the work presented in the project entitled “Study on processimprovements of Transfer process In HDFC Bank” in partial fulfillment of the

requirement for the award of degree of ‘Bachelor of Business Administration’ Birla

Institute of Technology, Mesra- Ranchi,, is an authentic work carried out under my

supervision and guidance.

To the best of my knowledge, the content of this project does not form a basis for the award

of any previous degree to anyone else.

Date: Mrs. Preeti Bajaj

Department of Management

Birla Institute of Technology

Noida (U.P)

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CERTIFICATE OF APPROVAL

The foregoing Project entitled “Study on process improvements of Transfer process In HDFC Bank”, is hereby approved as a creditable study of research topic and

has been presented in satisfactory manner to

warrant its acceptance as prerequisite to the degree for which it has been submitted.

It is understood that by its approval, the undersigned do not necessarily endorse any

conclusion drawn or opinion expressed therein, but approve the project for the purpose for

which it is submitted.

Mrs Meenakshi Sharma Dr. S L Gupta

Co-ordinator- BBA Academic Coordinator

Director

BIT- Noida

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ACKNOWLEDGEMENT

A task undertaken without offering prayers to almighty and talking blessings from the

elders is not a good beginning. Likewise the work completed without acknowledging the

assistance to those who were always by my sides to make my efforts fruitful in the task

left incomplete.

Special gratitude and appreciation goes to Mrs. Preety Bajaj Faculty Guide, for her

continuous support, guidance and motivation during the entire project.

Shantanu Dubey

BBA 4533/07

BBA Class of 2007-2010.

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National Stock Exchange. The bank's American Depository Shares are listed on theNew York Stock Exchange (NYSE) under the symbol 'HDB'.

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited(another new private sector bank promoted by Bennett, Coleman & Co./TimesGroup) was merged with HDFC Bank Ltd., effective February 26, 2000. As per thescheme of amalgamation approved by the shareholders of both banks and theReserve 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 toHDFC Bank in terms of increased branch network, expanded geographic reach,enhanced customer base, skilled manpower and the opportunity to cross-sell andleverage alternative delivery channels.

• DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviablenetwork of over 1229 branches spread over 444 cities across India. All branches arelinked on an online real-time basis. Customers in over 120 locations are alsoserviced through Telephone Banking. The Bank's expansion plans take into account

the need to have a presence in all major industrial and commercial centers where itscorporate 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 tovarious leading stock exchanges, the Bank has branches in the centers where theNSE/BSE has a strong and active member base.The Bank also has a network of about over 2526 networked ATMs across thesecities. Moreover, HDFC Bank's ATM network can be accessed by all domestic andinternational Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and AmericanExpress Credit/Charge cardholders.

• MANAGEMENT

Mr. Jagdish Capoor 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 25years and before joining HDFC Bank in 1994 was heading Citibank's operations inMalaysia.The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

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Senior banking professionals with substantial experience in India and abroad headvarious businesses and functions and report to the Managing Director. Given theprofessional expertise of the management team and the overall focus on recruitingand retaining the best talent in the industry, the bank believes that its people are asignificant competitive strength.

• TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of informationtechnology and communication systems. All the bank's branches have onlineconnectivity, which enables the bank to offer speedy funds transfer facilities to itscustomers. Multi-branch access is also provided to retail customers through thebranch network and Automated Teller Machines (ATMs).The Bank has made substantial efforts and investments in acquiring the besttechnology available internationally, to build the infrastructure for a world class bank.The Bank's business is supported by scalable and robust systems which ensure that

our clients always get the finest services we offer.The Bank has prioritized its engagement in technology and the internet as one of itskey goals and has already made significant progress in web-enabling its corebusinesses. In each of its businesses, the Bank has succeeded in leveraging itsmarket position, expertise and technology to create a competitive advantage andbuild market share.

BUSINESSES

HDFC Bank offers a wide range of commercial and transactional banking servicesand treasury products to wholesale and retail customers. The bank has three keybusiness segments:

Wholesale Banking ServicesThe Bank's target market ranges from large, blue-chip manufacturing companiesin the Indian corporate to small & mid-sized corporates and agri-basedbusinesses. For these customers, the Bank provides a wide range of commercialand transactional banking services, including working capital finance, tradeservices, transactional services, cash management, etc. The bank is also aleading provider of structured solutions, which combine cash management

services with vendor and distributor finance for facilitating superior supply chainmanagement for its corporate customers. Based on its superior productdelivery / service levels and strong customer orientation, the Bank has madesignificant inroads into the banking consortia of a number of leading Indiancorporates including multinationals, companies from the domestic businesshouses and prime public sector companies. It is recognised as a leadingprovider of cash management and transactional banking solutions to corporatecustomers, mutual funds, stock exchange members and banks.

Retail Banking ServicesThe 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-stopwindow for all his/her banking requirements. The products are backed by world-

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class service and delivered to customers through the growing branch network,as well as through alternative delivery channels like ATMs, Phone Banking,NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC

Bank Plus and the Investment Advisory Services programs have been designedkeeping in mind needs of customers who seek distinct financial solutions,information and advice on various investment avenues. The Bank also has awide array of retail loan products including Auto Loans, Loans againstmarketable securities, Personal Loans and Loans for Two-wheelers. It is also aleading provider of Depository Participant (DP) services 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 inassociation with VISA (VISA Electron) and issues the Mastercard Maestro debitcard as well. The Bank launched its credit card business in late 2001. By March2009, the bank had a total card base (debit and credit cards) of over 13 million.The Bank is also one of the leading players in the “merchant acquiring” businesswith over 70,000 Point-of-sale (POS) terminals for debit / credit cardsacceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internetbanking services for Fixed Deposits, Loans, Bill Payments, etc.

TreasuryWithin this business, the bank has three main product areas - Foreign Exchangeand Derivatives, Local Currency Money Market & Debt Securities, and Equities.With the liberalisation of the financial markets in India, corporates need more

sophisticated risk management information, advice and product structures.These and fine pricing on various treasury products are provided through thebank's Treasury team. To comply with statutory reserve requirements, the bankis required to hold 25% of its deposits in government securities. The Treasurybusiness is responsible for managing the returns and market risk on thisinvestment portfolio.

Awards

• 2007

Business Today-Monitor Group

survey

One of India's "Most Innovative

Companies".

Financial Express-Ernst & Young

Award

Best Bank Award in the Private

Sector category.

Global HR Excellence Awards -

Asia Pacific HRM Congress:

‘Employer Brand of the Year

2007-2008’-Award- First Runner-

up.

Business Today ‘Best Bank Award’.

8



Dun & Bradstreet – American

Express Corporate Best Bank

Award 2007

‘Corporate Best Bank’-Award.

The Bombay Stock Exchange and

Nasscom Foundation's Business

for Social Responsibility Awards

2007

‘Best Corporate Social

Responsibility Practice’ Award.

Outlook Money & NDTV Profit Best Bank Award in the Private

sector category.

The Asian Banker Excellence in

Retail Financial Services Awards

Best Retail Bank in India.

Asian Banker Managing Director Aditya Puriwon the Leadership

achievement Award for India.

• 2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50

companies.Business world Best listed Bank of India.

The Asset Magazine's Triple A

Country Awards

Best Domestic Bank.

Asiamoney Awards Best Local Cash Management

Bank in Large and Medium

segments.

Euromoney Awards "Best Bank" in India.

• 2005

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Asiamoney Awards Best Domestic Commercial

Bank

Asiamoney Awards Best Cash Management Bank -

India .

The Asian Banker Excellence Retail Banking Risk

Management Award in India.

Hong Kong-based Finance Asia

magazine

Best Bank in India

Economic Times Awards "Company of the Year" Award

for Corporate Excellence.

The Asset Triple A Country Awards Best Domestic Bank in India

Region - 2005

The Business Today-KPMG

Survey

Best Local Cash Management

Bank in India US$11-100m -

2005

The Business Today-KPMG

Survey

"Best Bank in India" for the

third consecutive year in 2005.

Economic Times - Avaya Global

Connect Customer

Responsiveness Awards

"Most Customer Responsive

Company - Banking and

Financial Services - 2005

• 2004


Bank in India US$11-100m


Bank in India >US$501m


Bank in India 1989-2004 (poll of

polls)

Asiamoney Awards Best Overall Domestic Trade

Finance Services in India - 2004

Asiamoney Awards Most Improved company for

Best Management Practices in

India - 2004

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Business World One of India's Most Respected

Companies - 2004

Forbes Global Best Under a Billion, 100 Best

Smaller Size Enterprises in

Asia/Pacific and Europe - 2004

Asian Banker Awards Operational Excellence in Retail

Financial Services - 2004

The Asset Triple A Country

Awards

Best Domestic Bank in India -

2004

JOB ROTATION

Job rotation is an approach to management development where an individual ismoved through a schedule of assignments designed to give him or her a breadth of exposure to the entire operation.

Job rotation is also practiced to allow qualified employees to gain more insights intothe processes of a company, and to reduce boredom and increase job satisfactionthrough job variation.

At the senior management levels, job rotation - frequently referred to asmanagement rotation, is tightly linked with succession planning - developing a poolof people capable of stepping into an existing job. Here the goal is to providelearning experiences which facilitate changes in thinking and perspective equivalentto the "horizon" of the level of the succession planning.

Importance of job rotation

Job rotation is the surest way of keeping the employee away from complacencyand boredom of routine. It is difficult for an employee to sustain his interest in agiven job for any substantial length of time as humans have the tendency of

outgrowing their jobs through the learning and experience that they gain over aperiod of time. Stimulating human mind through diversity of challenges is a sureway to bring to forefront its creative instincts and in taking the individual andorganizational performance to a higher plane. This is where job rotation can proveto be a handy tool.

Potential of job rotation

A well planned job rotation programme in an organization has immense potential of positive impact on job satisfaction, engagement of people and finally on retention of

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people. Few of the outcomes of job rotation with respect to the individual are:

• Job enrichment• Overall development• Intrinsic motivation to perform caused by newer challenges

• Career development

Where as for an organization, the benefits could include some or all of the following:

• Leadership development• Aligning competencies with organizational requirements• Lower attrition rates• Performance improvement driven by unique view points of new people

Job Rotation in HDFC Bank

In Hdfc bnk all employees are involved in the job rotation schedule. In HDFC Bank thstaff gets rotated in every 6 months and the officers get rotated in every 3 years.

The flexibility consideration is given to those employees who have physical difficulty,for such employee there is no job rotation eg: Deaf & dumb, or physicallyhandicapped.

Job Rotation in Indian Overseas Bank

In IOB all the employees involved in the job rotation schedule, the staff, clerks &officers. The staff and clerks have internal rotation and officers get rotation to other branches.

As per the Bank staff rule the staff gets rotated in every 6 months and the officers getrotated in every three years. The flexibility consideration is given to those employeeswho have physical difficulty, for such employee there is no job rotation eg: Deaf &dumb, or physically handicapped.

The employees involved in the rotation schedule for other individual to their talentand to avoid malpractices and frauds. Meetings are held to know the employee whichfirther position he will take place to determine interest and gain involvement.According to the employee performance & response towards his job on that basis the jobs are rotated.

Job rotation In RBI

In RBI the job rotation is mainly concerned with the officers. The officers in RBI gettheir job rotated in every year. For such job rotation the employees who are going to

get rotated meetings are hed so that the officers get to know their future roles.

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3. Fair transfer: Transfer should not be made as a punishment or as a revenge

on an employee or simply to trouble an employee and his family members.

4. Consideration of employees: Transfer should be done after taking concerned

employee into confidence and also after explaining how transfer is in the best

interest of the organization and employee.5. Interest of the Organization: Alll transfers should be made in the best interest

of the organization. In addition, there should be sound justification in the case

of all transfers made. The management shoul be able to prove its objectivity

and impartiality as regards transfer made

6. Sound Transfer Policy: Management should prepare a sound transfer policy

for a long period. It should be given wide publicity for the information of the

employees. The interest of organization should not be forgotten while framing

the policy of transfers.

7. Employees View: n employee should be given an opportunity to appeal to anappropriate authority with full opportunity to an employee to express his views.

8. Request Transfer: Request transfer on the basis of illness or family problem

should be considered sympathetically and granted promptly.

Types of transfer.

Versatility Transfers: The objective of these transfers is to increase the versatility of the employee by shifting it from one job to another. In this way, the employee isprovided a varied and broader job experience. This helps the employee through jobenrichment. It can also help him to get prepared for future promotions, besides, ithelps the organization also as enrichment of employee would make him not onlymore effective but also ready for higher openings.

Jon Transfer In Bank Of Baroda.In bank of baroda there is a different policy for clerks and officers, Clerks areTransferred every 5 years from on branch to another branch, on the other handofficers are transferred within the time span of every three years from one branch toanother and also to various zones(Zone indicates North, east, West, South zones of

India.

RESEARCH OBJECTIVES & SCOPE OF RESEARCH PROJECT

PROBLEM DEFINATION:

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To know the effects of transfers in the employees & also on the performance andeffectiveness and efficiency in the work field and also the effect on the organization.And also on process improvement.

OBJECTIVES OF RESERCH PROJECT:

PRIMARY OBJECTIVES:

• To study the transfer process.

• To study the effects on employees.

• To increase the employee welfare and satisfaction of the bank by suggesting

improvements in the process.

RESEARCH METHODOLOGY & LIMITATIONS

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 thewhole group during my job training. I have collected data from people linked with

different profession at Delhi.

RESEARCH PLAN:

Preliminary Investigation: In which data on the situation surrounding the problems

shall be gathered to arrive at

• The correct definition of the problem.

• An understanding of its environment.

Exploratory Study: To determine the approximate area where the problem lies.

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the

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problem. By analyzing the secondary data, the study aim is to explore the short

comings of the present system and primary data will help to validate the analysis of

secondary data besides on unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Dueto time limitation and other constraints direct personal interview method &Questionaire is used.

COLLECTION OF DATA:

1. Secondary Data: 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 company’s

database and website of the company.

2. Primary data: 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

TRANSFER PROCESS IN HDFC BANK

1) The employee gives the application of transfer to immediate superior.

2) The Supervisor gets the transfer request form duly filled by the employee and

forward it to the HR dept.

3) The HR dept seeks conformation from the HR head of the different department

or the location where the employee needs to be transferred.

4) After Both the HR of the dept agrees and the vacancy is there the the HR head

sends the transfer request form to the functional head for the approval of the

transfer.

5) After getting the transfer approval from the functional head the transfer orders

are being issued and a tracker is initiated for the concerned employee.

6) The supervisor of the employee is informed and he informs the concerned

employee.

7) The transfer takes place

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Interpretation & Analysis

Your Age: ____________________

Most Of the respondents were from the age group 20- 35 years

Education Qualification.

• Graduate 34%

• Post graduate 66%

Marital Status.

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• Married 65%

• Single 35%

Majority of the employees are married and have a family to support.

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Number Of years you are working with HDFC Bank.

• Less than five year’s 22%

• More than five year’s 78%

Number Of years you are working with

HDFC Bank.

Less Than 5 years

More Than %years

Majority of the employees have been associated with HDFC bank for more than

5 years, this means that atleast once they have gone through the transfe

process, and as per the personal interviews they didn’t face any problem inregard of there transfers.

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Your annual Income.

• <than 2 lack 5%

• Between 2 to 5 lack 25%

• Between 5 to 8 lack 50%

• >than 8 lack 20%

HDFC Bank is Having different pay scale levels and majority of the employees

are working in the payscale of 5-8 lacs per annum.

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Are you a Satisfied With the prevailing transfer process in the bank?

• Yes 76%

• No 24%

As 76% of the people working with HDFC bank are satisfied with the prevailing

transfer process, but on the other hand 24% of the respondents are not

satisfied, which means there are some problems that the employees face

regarding transfer

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What is your perception about the inter department job transfers?

• Lucrative 45%

• Not lucrative 40%

•

No idea 15%

This survey had a mixed opinion regarding the attractiveness of the proposal

of working in different department as 45% of the respondents find the inter

department job transfer lucrative, where as nearing number i.e 40% of the

people found it Non Lucrative or unattractive. And 15% of the respondents

preferred not to say anything about it.

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Are you Comfortable working in any department due to transfer?

• Yes 60%

• No 20%

• Cant Say 20%

Majority of the respondents 60% are comfortable in working in any department

due to transfer, this shown that HDFC bank is taking care of the welfare and the

after transfer process of the employees very well though 20% of the

respondents don’t find themselves comfortable to work in any and every

department, and 20% remained unavailable for this question.

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Do You Consider Job Rotation Good For an Organisation?

• Yes 78%

• No 22%

Majority of the respondents i.e. 78% Find and support the fact that Job rotation

is good for the organisation. This means that the employees working with

HDFC Bank are willing to accept transfers.

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Are you satisfied with the transfer request format of HDFC bank?

• Yes 62%

• No 48%

HDFC Bank transfer request form is a form that iis used by the employees to

request transfer fom the HR department, it has many questions out of which

many are irrelevant, but still 62% of the respondents find it satisfactory, but

still there are 42% of the respondents are not satisfied, which shows there is a

great scope of improvement in the transfer process of the bank.

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During the transfer process have you experienced any trouble or any kind of

drawback?

YES 22%

NO 88%

After the transfer takes place the employees are given a joining time and some

benefits like if they are being transferred to some another city then they can

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get travelling and transportation allowances. In here majority of the employees

are satisfied and claim that they didn’t faced any trouble in the complete

process, on the other hand a few suffered some problems which unfortunately

they didn’t mentioned due to the Organisation guidelines. So again there is a

scope of improvements in the prevailing transfer process of the organisation.

CONCLUSIONS AND SUGGESTIONS

6.1 CONCLUSIONS:

Hdfc bank, the banking arm of HDFC is expected to go on stream. The bank already

has good numbers of employees on board and is recruiting personal banker heavily

to take the headcount to many more. It is in brim of increasing its employees.

Through this project this can be concluded that the employees in the organization

are in favour of transfers and thinking of continuing ther services with the bank for a

longer period The employees of he organization and management are happy with

the working of the organization and also for the welfare and care provided to them by

the management

The employees have a mixed opinion about the transfer process that is

prevailing in the organization, but out of which the complete analysis shows

that 65% of the employees are satisfied with the process, but still there are a

good 35% of the employees who have queries and concerns regarding the

transfer process, Hence there is a scope of improvemet in the transfer process

of the Bank.

SUGGESTIONS

1. The organisation should remove some of the irrelevant questions from itsformat.

2. The organization should try to find out the excat reason from the employee for the request of their transfer.

3. There should be periodic transfers of the employees to give them moreexposure in the bank and its operations.

4. The Transfers should be taken as a healthy policy by the employees in theorganisation and not as a mode of punishment.

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LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should

not exceed. Limitations of this project are:-

• The project was constrained by time limit of two months.

• Mindset of people may very depending upon their age, gender, income

etc.

• Getting appointment from the concern person was very difficult.

• People mind set about the survey was an obstacle in acquiring

complete information & positive interaction.

• Respondents were very busy in their schedule. So it was very time

consuming for them to answer all the questions properly.

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QUESTIONNAIRE

Dear Sir/Madam,

I am a student of Birla Instt Of Technology, Mesra Ranchi and presently doing

a project on “Process Improvement In Transfer Process”. I request you to kindly

fill the questionnaire below and I assure you that the data generated shall be kept

confidential.

.

1. Your Age: ____________________

2. Education Qualification.

• Graduate □

• Post graduate □

3. Marital Status.

•Married □

• Single □

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Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :® ………………( O)……………… (M)………………………

City: ………...............Pin: ………………….State: ……………………….



No. of Children: __________

4. Number Of years you are working with HDFC Bank.

• Less than five year’s □

• More than five year’s □

5. Designation:………………………………………..

6. Your annual Income.

• <than 2 lack □

• Between 2 to 5 lack □

• Between 5 to 8 lack □

• >than 8 lack □

7. Are you a Satisfied With the prevailing transfer process in the bank?

•

Yes □

• No □

8. What is your perception about the inter department job transfers?

• Lucrative □

• Not lucrative □

• No idea □

9. Are you Comfortable working in any department due to transfer?

• Yes

• No

• Cant Say

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10. Do You Consider Job Rotation Good For an Organisation?

• Yes □

• No □

11. Are you satisfied with the transfer request format of HDFC bank?• Yes □

• No □

During the transfer process have you experienced any trouble or any kind of

drawback?

YES

NO

Date:

Place: Signature

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Bibliography

www,hdfc.com

www.banksindia.com

http://www.banksindia.com/

http://www.banksindia.com/

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