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INTRODUCTION
1.1
General Introduction
1.2
Industry Profile
a. Origin and Development of the industry
b. Growth and Present Status of the industry
c. Future of the industry
CHAPTER 2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
CHAPTER 3
DISCUSSIONS ON TRAINING -
3.1
3.2
CHAPTER 4
4.1
4.2
4.3
4.4
Analysis of Data .
4.5
Summary of Findings
CHAPTER 5
5.1
5.2
APPENDIX
BIBLOGRAPHY
CHAPTER-1
38
INTRODUCTION
General Introduction:The project was carried out for understanding the customer preference &
attributes towards saving Account of HDFC Bank
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
bank.
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 Bombay and 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.
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 exchanging money. 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
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 rateand 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 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
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
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: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
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
3. What policy issues are the industry and regulators likely to face in the years
ahead? Separate consideration is given to
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
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
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
total assets 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.
March 2010
March 2011
March 2012
Citied
228
316
452
Branches
535
684
1412
ATMs
1323
1605
3275
Tech-Savvy
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
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 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
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
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
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
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
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
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
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
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quick remit (North America, UK, Europe, Southeast Asia)
Advertising research strives to gain valuable information about the effects and
reach of advertising the products in different forms of media.
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 "Worldclass 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.
CHAPTER-3
DISCUSSIONS
ON
TRAINING
The student calls people according to the leads and database created
by him and convinces people to take the account.
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
CHAPTER-4
STUDY OF
SELECTED
RESEARCH
PROBLEM
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.
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.
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.
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.
Monthly transactions
No. of respondents
% (percentage)
5-20 lakhs
28
28%
20-40 lakhs
59
59%
13
13%
Total
100
100%
Chart 1:
70%
60%
50%
05L- 20L
40%
20L - 40L
40L - Above
30%
20%
10%
0%
05L- 20L
20L - 40L
40L - Above
Analysis:
Question 2
No. of respondents
97
3
%
97%
3%
Chart 2:
Analysis: 97% respondents have the saving accounts and only 3% do not
have saving account.
Question 3
In Which Bank?
Bank
Kotak mahindra
HDFC
Co-operative
ICICI
Nationalized
No. of respondents
3
33
48
5
31
%
3%
33%
48%
5%
31%
Chart 3
Accessibility
Minimum balance
DD/pay order
Free cheque
Debit card
Cash deposit
Cheque pick up
Net banking
Mobile banking
At per cheque
No. of respondents
10
20
13
10
8
7
2
16
7
3
%
10
20
13
10
8
7
2
16
7
3
NEFT
RTGS
Total
Chart 4
2
2
100
2
2
100
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
No. of response
12
22
%
12
22
Cheque
Total
76
100
76
100
Chart 5
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
Chart 6
Analysis:
Inter city, 33%
33% account holder transaction intercity, 52 % Both, and 15% outside city.
Both, 52%
, 15%
Outsid
e
No. of respondents
Yes
90
90
No
10
10
Total
100
100
Chart 7
City
Question 7
Analysis:
90% say yes bank will assist you in case of any problem, only 10% say no.
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.
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.
CHAPTER
SUMMARY
AND
CONCLUSIONS
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
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.
LIMITATIONS
Some of the limitations of the project are listed as below:
QUESTIONNAI
REName of Respondent
_________________________________
Contact No.
_______________________
1. Monthly Transaction?
________________________________________________
2. Do you have saving Account?
(a) Yes
(b)
No
o
o
o
o
o
Cheque Pick up
Net Banking
Mobile Banking
At Par Cheques
NEFT
RTGS
6.
7.
( b) DD
(c) Both
(b) No
8.. What are the additional Benefits do you expect from a Saving Account?
____________________________________________________________
____________________________________________________________
_____________________.
Date___________________
Place__________________
Signature
BIBLIOGRAPHY
1.BOOKS & AUTHORS
Marketing Management
2. NEWS PAPERS
Times of India
Financial Express
3. WEBSITES
www.hdfcbank.com
www.google.com