1

A PROJECT REPORT ON
CUSTOMER RELATIONSHIP MANAGEMENT
OF HDFC BANK
MBA (INDUSTRY INTEGRATED) SEMESER - 4 SUBMITTED BY:Vinay Krishna Dasi PROJECT GU
IDE Mrs.Rashi Ghagade INTERNATIONAL INSTITUTE FOR LEARNING IN MANAGEMENT BUSINES
S SCHOOL IILM BS KNOWLEDGE TOWER, SECTOR 11/20, BELAPUR, NAVIMUMBAI 400614
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT UNIVERSITY EIILM UNIVERS
ITY 2010
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CERTIFICATE This is to certify that Mr.Vinay Krishna Dasi (Enrollment No:- EIILM
U/O8/F0726) has successfully completed a project / training entitled, “A PROJECT R
EPORT ON CUSTOMER RELATIONSHIP MANAGEMENT OF HDFC BANK ” in partial fulfillment fo
r the requirement of MBA (Industry Integrated) program.
Signature with Date
Project / Training Guide
Dean
Examiner Stamp of IILM BS
Certificate from Organization / Institute / Guide
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ACKNOWLEDGEMENT
I take this opportunity express my profound sense of gratitude and all those who
helped me through out the duration of this project .I also immensely thanks the
other faculty member of the institute under who continuous support and guidance
I completed the project. The morale support and guidance, which I received from
our most loving and respected Dean Mr. M.M.Agashe , Director Dr. Piyali Kar des
erves a special place in my project. Our Mrs. Rashi Ghagade is a constant motiva
tor and mentor not only in projects and academics but also in all walks of our p
ersonal life. Last but not the least I would thank even my friends who supported
and co-operated with me. I have received an invaluable response from them and I
thank them again.
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PREFACE
If we can compare marketing to a long train with a multiple compartment then eve
ry bogies represent different aspect of marketing. Marketing strategy formulatio
n depends upon the every aspect of related terms and marketing research plays vi
tal roles to connect each compartment to form a cohesive functional unit. The au
tomotive industry is at the center of India’s new global dynamic. It plays major r
oles in retaining manufacturing industry growth over 12.5% per annum. The motiva
tion behind the project was to gain clear understanding about marketing research
. Through this project I have tried to understand the complexities involved in g
athering of data for drawing inferences .The final objective is to produce a res
ult that is accurate, useful, and free from bias and helps in the successful com
pletion of my M.B.A course. The project has been presented in a simple format
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INDEX
CONTENTS
Sr. No. 1 2 3 4 5 6 7 8 9 10 Subject Covered Banking Structure in India Indian B
anking Industries HDFC BANK Company Profile Business Strategy SWOT Analysis Meth
odology Analysis & Discussion Conclusion Bibliography Page No. 15 18 22 24 36 55
70 72 74 76
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LIST OF FIGURES
FIGURE NO. 1 2 3 4 5 FIGURE LEGEND PAGE 31-35 Product and customer segments Rupe
e earned and Rupee spent 44-45
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LIST OF GRAPHS
FIGURE NO. 1 2 3 4 FIGURE LEGEND PAGE
Growth in Indian Banking Assets %Customer initiated transaction by channel
19 29-30
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Customer Relationship Management (CRM) What is CRM?
CRM stands for Customer Relationship Management. It is a process or methodology
used to learn more about customers needs and behaviors in order to develop stro
nger relationships with them. There are many technological components to CRM, bu
t thinking about CRM in primarily technological terms is a mistake. The more use
ful way to think about CRM is as a process that will help bring together lots of
pieces of information about customers, sales, marketing effectiveness, responsi
veness and market trends. CRM helps businesses use technology and human resource
s to gain insight into the behavior of customers and the value of those customer
s.
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CRM Software Sales Force Automation Contact management Contact management softwa
re stores, tracks and manages contacts, leads of an enterprise. Lead management
Enterprise Lead management software enables an organization to manage, track and
forecast sales leads. Also helps understand and improve conversion rates. eCRM
or Web based CRM Self Service CRM Self service CRM (eCRM) software Enables web b
ased customer interaction, automation of email, call logs, web site analytics, c
ampaign management. Survey Management Software Survey Software automates an ente
rprise s Electronic Surveys, Polls, Questionnaires and enables understand custom
er preferences. Customer Service Call Center Software
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Help Desk Software Partner Relationship Management Contract Management Software
Contract Management Software enables an enterprise to create, track and manage p
artnerships, contracts, agreements. Example: Upside Software, Accruent Software,
diCarta, I-Many. Distribution management Software
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Thanks to the expanding global workforce, heightened competition, and the contin
ued need to cut costs and drive productivity, companies today are facing a new a
rray of challenges. Many organizations have employees working out of the office,
whether it’s your traveling salesperson, or workers in other states, countries, o
r from home. Collaborating as a unified team (Workforce Collaboration) has never
been more crucial and sharing information with a teammate in the next cubicle i
s only a small piece of the puzzle. That’s where Business Software and Customer Re
lationship Management (CRM) applications come in. CRM programs enable businesses
to centrally access and manage customer information. Whether information is bei
ng shared amongst a large group, such as in a call center or simply between a fe
w employees in a small business, it has to be accurate and reliable. In order to
retain customers, their information needs to be recorded securely and correctly
. Most people have encountered the reverse of this scenario and know how infuria
ting it can be when companies have poor organization and communication among the
ir workers. To ensure your customers are satisfied, you need to stand above the
rest and have an information hub where all workers have access to vital informat
ion about customers. This will help you achieve proper customer service, sales,
marketing, and to unite all departments of your business. CRM’s make Workforce Col
laboration easier than ever! Of course, not all team members should have access
to the same information, and that’s why certain CRM applications enable you to sha
re information with your team members securely and with necessary territorial co
ntrols. That means team leaders can view more information and each department wi
ll see all relevant information. This ensures excellent Project Management for a
ny organization, which is
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vital to your success. CRM applications help all companies reduce the time and c
omplexity it takes to report individual sales activities. Without a CRM, your wo
rkers will require an extra 64 to 70 hours per week! For instance, it will take
4-6 hours to consolidate, view, and analyze information about all customer conta
cts and engagements, current opportunities, probability of success, etc. Another
8-10 hours to get accurate activity reports from staff (not including the time
it takes them to create those reports). Add 2-4 hours to find key potential pros
pects so that you target the right customers, or weed out the poor prospects. Fi
nally, add on another 1/2 hour or so to research each customer regarding past hi
story, needs, etc. Any company that needs Process Improvement will find that in
order to be more effective and cost efficient, a system of Sales Force Automatio
n must be implemented. Certain CRM systems can significantly reduce wasted time
and increase sales. Not only is Sales Force Automation important to sales teams,
companies are increasingly required to automate common practices and processes.
Sending emails to clients, entering vital information, and other crucial steps
are automated with popular CRM applications to reduce wasted time of manually pe
rforming mundane tasks. CRM applications make Project Management easier for comp
any leaders with simple ways to monitor and measure individual and team success.
Workers perform best when they have a clear-cut way to measure their success an
d see improvement. Of course, by measuring success, rewards can be given to enha
nce team morale! Employees that are struggling to perform can be encouraged and
further trained to boost productivity. Everyone in the business world is
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competitive, especially salespeople; that s the point of quotas and commissions.
When reps see how their doing against their quota, or even against other reps,
that is encouragement to do better. With handy tools in CRM applications, your c
ompany can effectively improve Workflow by targeting a) prospects for new busine
ss and b) existing customers for repeat business. This is a crucial tool to redu
ce wasted time and eliminate bothering the wrong customers. Your team will be ab
le to quickly divide lead lists into groups that you create such as by ZIP code
or last date of purchase. This enables your sales team to slice and dice their c
ustomer data to find the best approach. Creating "data policies" is a great way
to do that. For example, if a new prospect is introduced and there is data indic
ating their interest in "Trucks," a completely different selling process can sta
rt for that prospect. As times have changed, a simple phone call or visit isn’t al
ways enough. CRM applications will provide you with multiple ways to communicate
to customers such as email marketing campaigns. By combining CRM Sales Force Au
tomation data management and email campaigning in one application, you can speci
fy your lead, prospect, and account targets, embedded personal information into
each email, and measure results across your sales cycle. Your CRM will make it e
asier to target the right customers with email lists and to make sure your messa
ge isn’t viewed as spam by filters or customers! Newsletters make excellent campai
gns to provide your reader with information that will help them improve their si
tuation in an unobtrusive way. Meanwhile, it positions you as a reputable source
of useful information. The better your content is, the better your chance that
they will forward the newsletter to colleagues
14
and peers or look forward to the next email from you. Your CRM will assist you i
n your email campaign efforts by offering simple templates in HTML form and prov
iding you with statistics such as: who opened the email, who clicked on your lin
k from the email, who unsubscribed, etc. Creating automated callback lists for c
ustomers who appeared to be interested (clicked on links, opened email, etc.) is
a highly successful tool. A CRM application will enable your organization to bu
ild on customer data with information relating to: opportunities, products, serv
ices, projects, customer feedback, referrals, accounting, and more. A Sales Forc
e Automation CRM will automate processes that used to take days and will simplif
y it! The answer to the problems associated with the expanding global workforce
is through Web Collaboration technologies. This means operating a successful CRM
and Business Software system for your company. You can be sure to: - Win Custom
ers: Nothing will be left to chance. From the first contact through first sale,
everything is tracked. - Work Together: It doesn’t matter where you employees are
in the office, state, country, or world, they will have the information they nee
d to close more deals. - Work Smarter: Working smarter is better than harder. It
helps cut wasted time, efforts, and money! You have the reporting data you need
to make great decisions.
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Scheduled Banks in India
(A) Scheduled Commercial Banks Public sector Banks Private sector Banks Foreign
Banks in India (29) Regional Rural Bank (102)
(28) (27) • Nationalized • Old Private Bank Banks • Other Public • New Sector Banks Priv
ate (IDBI) Banks • SBI and its Associates
(B) Scheduled Cooperative Banks Scheduled Urban Cooperative Banks (55) Scheduled
State Cooperative Banks (31)
Here we more concerned about private sector banks and ompetition among them. Tod
ay, there are 27 private sector banks in the banking sector: 19 old private sect
or banks and 8 new
17
Private sector banks. These new banks have brought in state-ofthe-art technology
and Aggressively marketed their products. The Public sector banks are Facing a
stiff competition from the new private sector banks. The banks which have been s
etup in 1990s under the guidelines of the Narasimham Committee are referred to a
s NEW PRIVATE SECTOR BANKS.
New Private Sector Banks
• Superior Financial Services • Designed Innovative Products • Tapped new markets • Acce
ssed Low cost NRI funds
•
Greater efficiency
18
The Indian banking market is growing at an astonishing rate, with
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Assets expected to reach US$1 trillion by 2010. An expanding economy, middle cla
ss, and technological innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million people. In correlation wi
th the growth of the economy, rising income levels, increased standard of living
, and affordability of banking products are promising factors for continued expa
nsion.
The Indian banking Industry is in the middle of an IT revolution, Focusing on th
e expansion of retail and rural banking. Players are becoming increasingly custo
mer - centric in their
approach, which has resulted in innovative methods of offering new banking produ
cts and services. Banks are now realizing the
20
importance of being a big player and are beginning to focus their attention on m
ergers and acquisitions to take advantage of regulation.
economies of scale and/or comply with Basel II
“Indian banking industry assets are expected to reach US$1 trillion by 2010 and ar
e poised to receive a greater infusion of foreign capital,” says Prathima Rajan, a
nalyst in Celent s banking group and author of the report. “The banking industry s
hould focus on having a small
number of large players that can compete globally rather than having a large num
ber of fragmented players."
UPCOMING FOREIGN BANKS IN INDIA
By 2009 few more names is going to be added in the list of foreign banks in Indi
a. This is as an aftermath of the sudden interest shown by Reserve Bank of India
paving roadmap for foreign banks in India
greater freedom in India. Among them is the world s best private bank by EuroMon
ey magazine, Switzerland s UBS.
The following are the list of foreign banks going to set up business in India :-
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• • • • • • • • •
Royal Bank of Scotland Switzerland s UBS US-based GE Capital Credit Suisse Group
Industrial and Commercial Bank of China
22
WE UNDERSTAND YOUR WORLD
The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an in principle approval from the Reserve Bank of India (RBI) to s
et up a bank in the private sector, as part of the RBI s liberalization of the I
ndian Banking Industry in 1994. The bank was incorporated in August 1994 in the
name of HDFC Bank Limited , with its registered office in Mumbai, India. HDFC B
ank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC is
India s premier housing finance company and enjoys an impeccable track record i
n India as well as in international markets. Since its inception in 1977, the Co
rporation has maintained a consistent and healthy growth in its operations to re
main the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in
retail mortgage loans to different market segments and also has a large corporat
e client base for its housing related credit facilities. With its experience in
the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideal
ly positioned to promote a bank in the Indian environment.
23
HDFC Bank began operations in 1995 with a simple mission : to be a “ World Class I
ndian Bank.” We realized that only a single minded focus on product quality and se
rvice 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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STRONG NATIONAL NETWORK
HDFC BANK
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March 2006 Citied Branches ATMs 228 535 1323
March 2007 316 684 1605
March 2008 327 761 1977
As of March 31, 2008, the Bank’s distribution network was at 761 Branches and 1977
ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of M
arch 31, 2007.
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Against the regulatory approvals for new branches in hand, the Bank expects to f
urther expand the branch network by around 150 branches by June 30, 2008. During
the year, the Bank stepped up retail customer acquisition with deposit accounts
increasing from 6.2 million to 8.7 million and total cards issued (debit and cr
edit cards) increasing from 7 million to 9.2 million. Whilst credit growth in th
e banking system slowed down to about 22% for the year ended 2007-08, the Bank’s n
et advances grew by 35.1% with retail advances growing by 38.6% and wholesale ad
vances growing by 30%, implying a higher market share in both segments.
he transactional banking business also registered healthy growth With cash manag
ement volumes increased by around 80% and trade services volumes by around 40% o
ver the previous year.
Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming
assets at 1.3% and net non-performing assets at
27
0.4% of total customer assets. The Bank’s provisioning policies for specific loan
loss provisions remained higher than regulatory requirements.
TECHNOLOGY USED IN HDFC BANK
In the era of globalization each and every sector faced the stiff competition fr
om their rivals. And world also converted into the flat from the globe. After th
e policy of liberalization and RBI initiatives to take the step for the private
sector banks, more and more changes are taking the part into it. And there are c
reate competition between the private sector banks and public sector bank. Priva
te sector banks are today used the latest technology for the different transacti
on of day to day banking life. As we know that Information Technology plays the
vital role in the each and every industries and gives the optimum return from th
e limited resources. Banks are service industries and today IT gives the innovat
ive Technology application to Banking industries. HDFC BANK is the leader in the
industries and today IT and HDFC BANK together
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combined they reached the sky. New technology changed the mind of the customers
and changed the queue concept from the history banking transaction. Today there
are different channels are available for the banking transactions. We can see th
at the how technology gives the best results in the below diagram. There are dra
stically changes seen in the use of Internet banking, in a year 2001 (2%) and in
the year 2008 ( 25%). These type of technology gives the freedom to retail cust
omers.
Centralized Processing Units Electronic Straight Processing Through
Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency, Cro
ss sell Provide new or superior products
Data Warehousing , CRM Innovative Application Technology
HDFC BANK is the very consistent player in the New private sector banks. New pri
vate sector banks to withstand the competition from public sector banks came up
with innovative products and superior
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service.
2001
Branches 43% ATM 40% Phone Banking 14% Internet 2% Mobile 1%
2005
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Branches 17% ATM 45% Phone Banking 12% Internet 25% Mobile 1%
( % customer initiated Transaction by Channel )
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HDFC BANK PRODUCT AND CUSTOMER SEGMENTS
PERSONAL BANKING
Loan Product • Auto Loan • Loan Against Security • Loan Against Property • Personal loan
• Credit card • 2-wheeler loan • Commercial vehicles finance • Home loans • Retail busine
ss banking • Tractor loan • Working Capital Finance • Construction Equipment Finance • H
ealth Care Finance • Education Loan • Gold Loan Cards Deposit Product • • • • • Saving a/c
rent a/c Fixed deposit Demat a/c Safe Deposit Lockers Investment & Insurance • • • • • Mut
ual Fund Bonds Knowledge Centre Insurance General and Health Insurance • Equity an
d Derivatives • Mudra Gold Bar
Payment Services
Access To Bank
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• Credit Card • Debit Card • Prepaid Card
------------------------------Forex Services ------------------------------• Produ
ct & Services • Trade Services • Forex service Branch Locater • RBI Guidelines
• • • • • • •
NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay • VisaMone
y Transfer • e–Monies Electronic Funds Transfer • Online Payment of Direct Tax
• NetBanking • OneView • InstaAlert MobileBanking • ATM • Phone Banking • Email Statements
ranch Network
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WHOLESALE BANKING
Corporate • Funded Services • Non Funded Services • Value Added Services • Internet Bank
ing Small and Medium Enterprises • Funded Services • Non Funded Services • Specialized
Services • Value added services • Internet Banking Financial Institutions and Trust
s BANKS • Clearing SubMembership • RTGS – submembership • Fund Transfer • ATM Tie-ups • Cor
orate Salary a/c • Tax Collection Financial Institutions Mutual Funds Stock Broker
s Insurance Companies Commodities Business Trusts
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BUSINESS MIX
Total Deposits
Gross Advances
Net Revenue
Retail
Wholesale
• HDFC Bank is a consistent player in the private sector bank and have a well bala
nced product and business mix in the Indian as well as overseas markets. • Custome
r segments (retail & wholesale) account for 84% of Net revenues ( FY 2008) • Highe
r retail revenues partly offset by higher operating and credit costs.
•
Equally well positioned to grow both segments.
.
NRI SERVICES
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Accounts & Deposits • • • • • Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Fore
ign Currency Deposits Accounts for Returning Indians • • • • • • •
Remittances North America UK Europe South East Asia Middle East Africa Others Qu
ick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Che
ques/DDs/TCs
Investment & Insurances • • • • Mutual Funds Insurance Private Banking Portfolio Investm
ent Scheme Payment Services • • • • • • NetSafe BillPay InstaPay DirectPay Visa Money Onlin
Donation • • • • • • • • • • •
Loans Home Loans Loans Against Securities Loans Against Deposits Gold Credit Car
d Access To Bank NetBanking OneView InstaAlert ATM PhoneBanking Email Statements
Branch Network
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BUSINESS STRETEGY
HDFC BANK mission is to be
"a World Class Indian Bank",
benchmarking themselves against international standards and best practices in te
rms of product offerings, technology, service levels, risk management and audit
& compliance. The objective is to build sound customer franchises across distinc
t businesses so as to be a preferred provider of banking services for target ret
ail and wholesale customer segments, and to achieve a healthy growth in profitab
ility, consistent with the Bank s risk appetite. Bank is committed to do this wh
ile ensuring the highest levels of ethical standards, professional integrity, co
rporate governance and regulatory compliance. Continue to develop new product an
d technology is the main business strategy of the bank. Maintain good relation w
ith the customers is the main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following :
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•
Increase market share in India’s expanding banking
and
financial services industry by following a disciplined growth strategy focusing
on quality and not on quantity and delivering high quality customer service. • Lev
erage our technology platform and open scaleable systems to deliver more product
s to more customers and to control operating costs.
•
Maintain current high standards for asset quality through disciplined credit ris
k management.
•
Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector.
•
Continue to develop products and services that reduce bank’s cost of funds.
• Focus on high earnings growth with low volatility.
INSIDE HDFC BANK
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FIVE “S” , PART OF KAIZEN
WORK PLACE TRANSFORMATION Focus on effective work place organization Believe in “
Small changes lead to large improvement ” Every successful organization have their
own strategy to win the race in the competitive market. They use some technique
and methodology for smooth running of business. HDFC BANK also aquired the Japa
nese technique for smooth running of work and effective work place organization.
Five ‘S’ Part of Kaizen is the technique which is used in the bank For easy and sys
tematic work place and eliminating unnecessary things from the work place. BENEF
IT OF FIVE “S”
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• • • • •
It can be started immediately. Every one has to participate. Five “ S” is an entirel
y people driven initiatives. Brings in concept of ownership. All wastage are mad
e visible.
FIVE ‘S’ Means :S-1 S-2 S-3 S-4 S-5 SORT SYSTEMATIZE SPIC-N-SPAN STANDARDIZE SUSTAIN
SEIRI SEITON SEIRO SEIKETSU SHITSUKE
(1) SORT :It focus on eliminating unnecessary items from the work place. It is e
xcellent way to free up valuable floor space. It segregate items as per “require a
nd wanted”.
Frequently Required
Wanted but not Required
Remove everything from workplace
Less Frequently Required
Junk
(2) SYSTEMATIZE :-
Systematize is focus on efficient and effective Storage method.
Junk
40
That means it identify, organize and arrange retrieval. It largely focus on good
labeling and identification practices. Objective :- “A place for everything and e
verything in its place”. (3) SPIC- n - SPAN :Spic-n-Span focuses on regular cleari
ng and self inspection. It brings in the sense of ownership. (4) STANDERDIZE :It
focus on simplification and standardization. It involve standard rules and poli
cies. It establish checklist to facilitates autonomous maintenance of workplace.
It assign responsibility for doing various jobs and decide on Five S frequency.
(5) SUSTAIN:It focuses on defining a new status and standard of organized work
place. Sustain means regular training to maintain standards developed under S-4.
It brings in self- discipline and commitment towards workplace organization.
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LABELLING ON FILE
FILE NUMBER SUBJECT FROM DATE TO DATE OWNER
BOX LABEL For Example
1/3/A/6
1 – Work Station (1) 3 – Drawer (3) A - Shelf (A) 6 – File Number ( 6)
42
COLOUR CODING OF FILES
DEPARTMENT Welcome Desk Personal Banker Teller Relationship Manager Branch Manag
er Demat Others
In the HDFC BANK each department has their different color coding apply on the d
ifferent file. Due to this everyone aware about their particular color file whic
h is coding on it and they save their valuable time. It is a part of Kaizen and
also included in the system of the Five ‘S’. Logic behind it that , the color coding
are always differentiate the things from the similar one.
43
HUMAN RESOURCES
The Bank’s staffing needs continued to increase during the year particularly in th
e retail banking businesses in line with the business growth. Total number of em
ployees increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. T
he Bank continues to focus on training its employees on a continuing basis, both
on the job and through training programs conducted by internal and external fac
ulty. The Bank has consistently believed that broader employee ownership of its
shares has a positive impact on its performance and employee motivation. The Ban
k’s employee stock option scheme so far covers around 9000 employees.
44
RUPEE EARNED - RUPEE SPENT
It is more important for every organization to know about from where and where t
o spent money. And balanced between these two things rupee earned and rupee spen
t are required for smooth running of business and financial soundness. This type
of watch can control and eliminate the unnecessary spending of business. In thi
s diagram it include both things from where Bank earned Rupee and where to spent
.
45
HDFC BANK earned from the ‘Interest from Advances’ 51.14 % , ‘Interest from Investment’
27.12 %, bank earned commission exchange and brokerage of 15.25 %. These are the
major earning sources of the bank. Bank also earned from the Forex and Derivati
ves and some other Interest Income. Bank spent 39.75 % on Interest Expense, 30.2
7 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and
Tax on dividend, Loss on Investment , Tax. As we discuss above that balancing is
must between these two for every organization especially in the era of globaliz
ation where there are stiff competition among various market players.
RECENT DEVELOPMENT
46
The Reserve Bank of India has approved the scheme of amalgamation of Centurion B
ank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.
All the branches of Centurion Bank of Punjab will function as branches of HDFC B
ank with effect from May 23, 2008. With RBI’s approval, all requisite statutory an
d regulatory approvals for the merger have been obtained.
47
The combined entity would have a nationwide network of 1167 branches; a strong d
eposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 cr
ores. The balance sheet size of the combined entity would be over Rs.1,63,000 cr
ores.
Merger with Centurion Bank of Punjab Limited
On March 27, 2008, the shareholders of the Bank accorded their consent to a sche
me of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. T
he shareholders of the Bank approved the issuance of one equity share of Rs.10/-
each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Ce
nturion Bank of Punjab Limited. This is subject to receipt of Approvals from the
Reserve Bank of India, stock exchanges and Other requisite statutory and regula
tory authorities. The shareholders Also accorded their consent to issue equity s
hares and/or warrants convertible into equity shares at the rate of Rs.1,530.13
each to HDFC Limited and/or other promoter group companies on preferential basis
, subject to final regulatory approvals in this regard. The
Shareholders of the Bank have also approved an increase in the authorized capita
l from Rs.450 crores to Rs.550 crores.
48
Promoted in 1995 by Housing Development Finance Corporation (HDFC), India s lead
ing housing finance company, HDFC Bank is one of India s premier banks providing
a wide range of financial products and services to its over 11 million customer
s across hundreds of Indian cities using multiple distribution channels includin
g a pan-India network of branches, ATMs, phone banking, net banking and mobile
49
banking. Within a relatively short span of time, the bank has emerged as a leadi
ng player in retail banking, wholesale banking, and treasury operations, its thr
ee principal business segments.
The bank s competitive strength clearly lies in the use of technology and the ab
ility to deliver world-class service with rapid response time. Over the last 13
years, the bank has successfully gained market share in its target customer fran
chises while maintaining healthy profitability and asset quality.
As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 3
27 cities. For the year ended March 31, 2008, the Bank reported a net profit of
INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the corresponding year ended
As of March 31, 2007.
March 31, 2008 total deposits were INR 1007.69 billion,
(Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. To
tal balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore).
Leading Indian and international
Publications have recognized the bank for its performance and quality.
50
Centurion Bank of Punjab is one of the leading new generation private sector ban
ks in India. The bank serves individual consumers, small and medium businesses a
nd large corporations with a full range of financial products and services for i
nvesting, lending and advice on financial planning. The bank offers its customer
s an array of wealth management products such as mutual funds, life and
51
general insurance and has established a leadership position . The bank is also
a strong player in foreign exchange services, personal loans, mortgages and agri
cultural loans.
Additionally the bank offers a full suite of NRI banking products to Overseas In
dians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Ba
nk (LKB), post obtaining all requisite statutory and regulatory approvals. This
merger has further
strengthened the geographical reach of the Bank in major towns and cities across
the country, especially in the State of Kerala, in addition to its existing dom
inance in the northern part of the country.
Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 br
anches and 452 ATMs in 190 locations across the country, supported by employee b
ase of over 7,500 employees. In addition to being listed on the major Indian sto
ck exchanges, the Bank’s shares are also listed on the Exchange. Luxembourg Stock
52
ACHIEVEMENT IN 2007
Business Monitor survey TodayGroup One of India s "Most Innovative Companies"
Financial ExpressErnst & Young Award
Best Bank Award in the Private Sector category
Global HR Employer Brand of the Year 2007 -2008 Excellence Awards Award - Firs
t Runner up, & many more
53
- Asia Pacific HRM Congress: Business Today
Best Bank Award
Dun & Bradstreet – American Express Corporate Best Corporate Best Bank Award Ban
k Award 2007 The Bombay Stock Exchange and Nasscom Best Corporate Foundation s
Practice Award Business for Social Responsibility Awards 2007
Social
Responsibility
Outlook Money & Best Bank Award in the Private sector category. NDTV Profit The
Asian Banker Best Retail Bank in India Excellence in Retail Financial Services A
wards Asian Banker HDFC BANK Managing Director Aditya Puri wins the
Leadership Achievement Award for India
54
55
STRENGTH
• Right strategy for the right products. • Superior customer
• •
WEAKNESSES
Some gaps in range for certain sectors. Customer service staff need training.
• •
service vs. competitors. • Great Brand Image • Products have required accreditations
. • High degree of customer satisfaction. • Good place to work
•
Processes and systems, etc Management insufficient. Sectoral growth is constrain
ed by low unemployment levels and competition for staff cover
56
• Lower with
response efficient
time and
effective service.
•
Dedicated workforce aiming at making a long-term career in the field.
Opportunities
• •
Threats
• • •
Profit margins will be good. Could extend to overseas broadly.
Legislation could impact. Great risk involved Very high competition
• •
New specialist applications. Could seek better customer deals.
•
prevailing in the industry. Vulnerable to reactive attack by major competitors
•
Fast-track development
career opportunities
•
Lack of infrastructure in rural areas could constrain investment.
on an industry-wide basis.
•
An applied research centre to create opportunities for developing techniques to
provide added-value services.
•
High volume/low cost market is intensely competitive.
57
COMPETITIVE SWOT ANALYSIS WITH ICICI BANK
STRENGTHS WEAKNESSES
O P S – O Strategies W – O Strategies P O Strength: Large Capital base. Weakness: Wo
rkforce R T Opportunity: Market Expansion. Responsiveness. U N Opportunity: Outs
ourcing of Non – I Strategy: Deep Penetration into Core Business. T I Rural Market
. Strategy: Outsource Customer E Care & other E-Helps. S S – T Strategies W – T Stra
tegies T H Strength: Low operating costs Weakness: Not Equal to R International
Standards. E A Threat: Increased Competition Threat: Entry of many Foreign T fro
m others Pvt. Banks. Banks.
58
S Strategy: Steps to Ensure Loyalty by old Customers. Strategy: Consider additio
nal benefits
Detailed Analysis:
i. Strength - Opportunity Analysis.
Strength: It is well know that ICICI Bank has the largest Authorised Capital Bas
e in the Banking System in India i.e. having a total capacity to raise Rs. 19,00
0,000,000 (Non – Premium Value). Opportunity: Seeing the present financial & econo
mic development of Indian Economy and also the tremendous growth of the Indian
Companies including the acquisition spree followed by them, it clearly states th
e expanding market for finance requirements
59
and also the growth in surplus disposal income of Indian citizens has given a hu
ge rise in savings deposits – from the above point it is clear that there is a hug
e market expansion possible in banking sector in India. Strategy: From the analy
sis of Strength & Opportunity the simple and straight possible strategy for ICIC
I Bank could be - to penetrate into the rural sector of India for expanding its
market share as well as leading all other Pvt. Banks from a great gap.
ii.
Strength - Threat Analysis.
Strength: ICICI Bank is not only known for large capital but also for having a l
ow operations cost though having huge number of branches and services provided.
Threat: After showing a significant growth overall, India is able to attract man
y international financial & banking institutes, which are known for their state
of art working and keeping low operation costs.
60
Strategy: To ensure that ICICI Bank keeps going on with low operation cost & hav
e continuous business it should simply promote itself well & provide quality ser
vice so as to ensure customer loyalty, therefore guaranteeing continuous busines
s.
iii.
Weakness - Opportunity Analysis.
Weakness: It is well known that workforce responsiveness in banking sector is Ve
ry low in Indian banking sector, though ICICI Bank has better responsible staff
but it still lacks behind its counterparts like HSBC, HDFC BANK, CITI BANK, YES
BANK etc. Opportunity: In the present world, India is preferred one of the best
places for out – sourcing of business process works and many Strategy: more.
61
As international companies are reaping huge benefits after outsourcing there cus
tomer care & BPO’s, this same strategy should be implemented by ICICI Bank so as t
o have proper customer service without hindering customer expectations.
iv.
Weakness - Threat Analysis.
Weakness: Though having a international presence, ICICI Bank has not been able t
o keep up the international standards in providing customer service as well as b
anking works. Threat: In recent times, India has witnessed entry of many interna
tional banks like CITI Bank, YES Bank etc which posses an external entrant threa
t to ICICI Bank – as this Banks are known for their art of working and maintain hi
gh standards of customer Strategy: service.
62
After having new entrants threat, ICICI Bank should come up with More additional
benefits to its customer or may be even reduce some fees for any additional wor
ks of customers.
PROJECT ON PLASTIC MONEY
63
I give the project on Plastic Money to bank.
project is to increase the rich customers list in a bank. Plastic Money title it
self says the use of Credit Card and Debit Card in day to day transaction of the
business. I prepared the presentation on it and submitted to bank and Bank alre
ady started work on this project. Idea behind this project is to sale the bulk p
roduct. Target customer Of this project are two parties one is Wholesaler and se
cond is Retailer. Due to this idea bank also sell their swipe machine to wholesa
ler and create brand image in the market.
PLAS T
The objective behind this
64
The idea behind this, bank give the credit card swipe machine to wholesalers and
retailers use the credit card of the bank. Bank gives the 50 days credit to the
ir credit card holders. So here retailers can get benefit of long credit period
and on the other side wholesalers can get the benefit of same day payment. As a
result bank got the wide list of customers of wholesalers and retailers.
POWERPOINT PRESENTATION ON PLATIC MONEY
65
O
66

We sale our pro and create grou

Idea behind it, to convenience both the parties and create the group transaction
between them so bank can got the maximum benefit from it. Each wholesaler has m
ore than 15 to 20 retailers, so by this way bank sell the bulk products.

Credit CardndD and a transaction.

67
H
This power point slide shows the how idea works behind this project. Meet the wh
olesaler first and get the details about their retailers and convince both parti
es and shows the benefit of using this type of transaction by plastic money.
Meet towholes Collect details Convince both benefits from it
68
Be
Bank always find those customers which are more involve in the banking transacti
on. These type of group transaction between the wholesalers and retailers mainta
in the well account in a bank.
Bulkproduct

Because who group

69
M ar

I t s show tim communicati service in suc customers wan

70
BUSINESS STRETEGY:HDFC BANK mission is to be "a World Class Indian Bank", benchm
arking themselves against international standards and best practices in terms of
product offerings, technology, service levels, risk management
71
and audit & compliance. The objective is to build sound customer franchises acro
ss distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy growth i
n profitability, consistent with the Bank s risk appetite. Bank is committed to
do this while ensuring the highest levels of ethical standards, professional int
egrity, corporate governance and regulatory compliance. Continue to develop new
product and technology is the main business strategy of the bank. Maintain good
relation with the customers is the main and prime objective of the bank.
HDFC BANK business methodology emphasizes the following:
Increase market share in
India’s expanding banking and financial services industry by following a discipli
ned growth strategy focusing on quality and not on quantity and delivering high
quality customer service.
Leverage our technology platform and open scalable sys
tems to deliver more products to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit ris
k management.
Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
Continue t
o develop products and services that reduce bank’s cost of funds.
Focus on high ea
rnings growth with low volatility.
72
ANALYSIS & DISCUSSION
The office of HDFC BANK is blessed by brilliant and skilled professionals and te
am leader who have the responsibility of handling the Financial Corporate Consul
tants. HDFC Bank can play an important role in
73
this stage by helping to establish a clear understanding of the market, to impro
ve the perception of individual or group of people it my provide new dimensions
to this sector . It is taken for granted that most research needs are tactical a
nd specific, but a few business issues exist in a vacuum. Because we understand
and have worked for years throughout the business processes, we can supply insig
hts and strategic solutions that are more relevant and actionable. Whether we pr
ovide research in just one area or guide innovation from concept inception throu
gh market introduction, we re committed to success and profits... yours.
74
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already
has good number of employees on board and is recruiting Sales executives heavil
y to take the headcount to many more. It is on the brim of increasing its custom
ers through its attractive schemes and offer. The project opportunities provided
was market segmentation and identifying
75
prospective customers in potential geographical location and convincing them to
open an account so that new Business Opportunities of the bank can be explored.
Through this project, it could be concluded that people are not much aware about
the various products of the bank and many of them not interested to open an acc
ount at all. Services was considered as unsought good which require hard core se
lling, but in changing trend in income and people becoming financially literate,
the demand for banking sector is increasing day by day. According to my finding
s Company’s promotional activities for recruiting sales executives are also very l
ess. So, at last the conclusion is that there is tough competition ahead for the
company from its major competitors in the banking sector. Last but not the leas
t I would like to thank HDFC Bank for giving me an opportunity to work in the fi
eld of Marketing. I hope the company finds my analysis relevant.
Future Prospect
•
To approach in right direction with a clear site & adopt new, innovative ideas T
o increase its customer base in market & rise market share To increase market va
lue with new schemes & services To expand its branches in almost all cities .
• • •
76
1.Guidance from Branch Manager HDFC Bank, Manager, HDFC Bank.
77
2.www.scribd.com 3.www.managemanteparadise.com