INDUSTRY PROFILE

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India the development of a healthy
economy will remain a distant dream. The banking system of India should not only be
hassle free but it should be able to meet new challenges posed by the technology and
any other external and internal factors.

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system
has reached even to the remote corners of the country. This is one of the main reasons
for India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with
the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when
the most efficient bank transferred money from one branch to other in two days. Now it
is simple as instant messaging or dial a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks.

• Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

Reforms.

• New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

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To make this write-up more explanatory, the scenarios are classified as Phase I, Phase
II and Phase III.

NATIONALISATION OF BANKS

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then
prime minister. It nationalized 14 banks then. These banks were mostly owned by
businessmen and even managed by them.

• Central Bank of India

• Bank of Maharashtra

• Dena Bank

• Punjab National Bank

• Syndicate Bank

• Canara Bank

• Indian Bank

• Indian Overseas Bank

• Bank of Baroda

• Union Bank

• Allahabad Bank

• United Bank of India

• UCO Bank

• Bank of India

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Prior to the nationalization of Indian banks, only State Bank of India (SBI) was
nationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of
Seven State Banks of India (formed subsidiary) took place on 19th July, 1960. The
State Bank of India is India's largest commercial bank and is ranked one of the top five
banks worldwide. It serves 90 million customers through a network of 9,000 branches
and it offers -- either directly or through subsidiaries -- a wide range of banking services.

The second phase of nationalization of Indian banks took place in the year 1980. Seven
more banks were nationalized with deposits over 200 crores. Till this year,
approximately 80% of the banking segments in India were under Government
ownership.

After the nationalization of banks in India, the branches of the public sector banks rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.

• 1955: Nationalization of State Bank of India.

• 1959: Nationalization of SBI subsidiaries.

• 1969: Nationalization of 14 major banks.

• 1980: Nationalization of seven banks with deposits over 200 crores.

PRIVATE SECTOR BANKS IN INDIA:-

Private banking in India was practiced since the beginning of banking system in India.
The first private bank in India to be set up in Private Sector Banks in India was Indus Ind
Bank. It is one of the fastest growing Bank Private Sector Bank in India. IDBI ranks the
tenth largest development bank in the world as Private Banks in India and has promoted
world class institutions in India.

The first Private Bank in India to receive an in principle approval from the Reserve Bank
of India was Housing Development Finance Corporation Limited, to set up a bank in the
private sector banks in India as part of the RBI's liberalization of the Indian Banking

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Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered
office in Mumbai and commenced operations as Scheduled Commercial Bank in
January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the first branch inception in the year 1934.
With successive years of patronage and constantly setting new standards in banking,
ING Vysya Bank has many credits to its account.

List of Private Banks in India:-

 Bank of Punjab
 Bank of Rajasthan
 Catholic Syrian Bank
 Centurion Bank
 City Union Bank
 Dhanalakshmi Bank
 Development Credit Bank
 Federal Bank
 HDFC Bank
 ICICI Bank
 IDBI Bank
 IndusInd Bank
 ING Vysya Bank
 Jammu & Kashmir Bank
 Karnataka Bank
 Karur Vysya Bank
 Laxmi Vilas Bank
 South Indian Bank
 United Western Bank
 UTI Bank

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 COMPANY PROFILE

HDFC BANK

HDFC BANK was incorporated in August 1994 in the name of “HDFC BANK LIMITED”,
with its registered office in Mumbai, India. The bank commenced operations as a
scheduled commercial bank in January 1995.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994.

Headquartered in Mumbai, HDFC bank has a network of over 4014 branches spread
over 2464 cities across India. All branches are linked on an online real-time basis.
Customers in over 120 locations are serviced through Telephone Banking. The bank
also has a network of about over 11766 networked ATMs across these cities. HDFC
Bank’s ATMs networked accessed by all domestic and international Visa / Master card,
Visa electron / maestro, plus / cirrus and AMERICAN Express credit / charge
cardholders. HDFC bank has won many awards for its excellent service. Major among
them are “Best Bank in India” by Hong Kong based finance Asia magazine in 2005 and
“company of the year” Award for corporate Excellence 2004-05.

India has a well-developed banking system. Most of the banks in India were founded by
Indian entrepreneurs and visionaries in the pre-independence era to provide financial
assistance to traders, agriculturist and budding Indian industrialists. Indian banks have
played significant role in the development of the Indian economy by inculcating the habit
of saving in Indians and by lending finance to Indian industry.

The commercial banking structure in India consist of: Scheduled commercial banks and
Unscheduled Banks. Scheduled commercial constitute those banks, which have been
included in the second schedule of Reserve Bank of India (RBI) Act, 1934. RBI

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 MISSION AND VISION OF THE ORGANIZATION

Mission

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

Indian Bank". We realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, we are proud to say that we are well
on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.

Use Enabling Technology to provide valued added products and services to customers.
The objective is to build sound customer franchises across distinct businesses so as to
be the preferred provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC Bank's
business philosophy is based on four core values - Operational Excellence, Customer
Focus, Product Leadership and People

Vision

To make HDFC the dominant player built on trust by world-class people and service.
This we hope to achieve by understanding the news of customers and offering them
superior products and services. Leveraging technology to service customers quickly,
efficiently and conveniently, developing and implementing superior risk management
and investment strategies to offer sustainable and stable returns to our customers.
Providing and enabling environment to foster growth and leading for our employees.
Building transparency in all our dealings

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GROWTH

HDFC is India’s premier housing finance company and enjoys an impeccable track
record in India as well as international markets. Since its inception in 1977, the
corporations have maintained a consistent and healthy growth in its operations to
remain 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 of different market
segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial market, a strong market reputation, large
shareholder base and unique consumer franchisee, HDFC was ideally positioned to
promote a bank in Indian environment.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank. The acquisition added significant value to HDFC Bank in terms
of increased branch network, expanded geographic reach, enhanced customer base,
skilled manpower and the opportunity to cross-sell and leverage alternative delivery
channels.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy is

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based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People. HDFC has, therefore created a group that offers a
comprehensive range of financial products and services. In its role as a public financial
institution, HDFC seeks to operate in general accordance with industrial and financial
policies of the government of India and the RBI. Within this framework, HDFC seeks to
maximize the profitability of its operations. Management seeks to appraise all financing.

Proposals comprehensively and predicate its decision on such proposals on their

underlying commercial viability.

Credit Rating (Quality)

HDFC Bank has its deposit programmers rated by two rating agencies - Credit Analysis

& Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed
Deposit program has been rated 'CARE AAA (FD)' [''triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the Bank's Certificate of Deposit (CD) program
"PR 1+" which represents "superior capacity for repayment of short term promissory
obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned
the "AAA (ind)" rating to the Bank's deposit program, with the outlook on the rating as
"stable". This rating indicates "highest credit quality" where "protection factors are very
high". HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of

Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned
the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (Ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating
agency for those instruments?

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 COMPANY HISTORY
 1994
 The Bank was incorporated on 30th August. A new private sector Bank
promoted by housing Development Corporation Ltd. (HDFC), a premier housing
finance company. The bank is the first of its kind to receive an in-principle
approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on 10th October 1994
from RBI.
 The Bank transacts both traditional commercial banking as well as investment
banking. HDFC, the promoter of the bank has entered into an agreement with
National Westminster Bank Pc. and its subsidiaries (NatWest Group) for
subscribing 20% of the banks issued capital and providing technical assistance in
relation to the banks proposed banking business.

 1995
 70 No. of equity shares issued to subscribers to the Memorandum & Articles of
Association on 30th August 1994. On the same date 500, 00,000 equity shares
were allotted to HDFC promoters. 509, 20,000 shares were allotted to HDFC
Employees Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd
December, 1994.
 On 16.1.1995, 90, 79,930 No. of equity shares were allotted to jarring ton Ptv.
Ltd. Another 400, 00,000 equity shares were allotted on private placement basis
to NatWest Group on 9.5.1995. 500, 00,000 shares were allotted to the public on
9.5.95 (all were taken up).
 The Bank opened its first branch in Ramon House at Church gate, Mumbai on
January 16th.
 The Bank has created an efficient operating system using well tested state-of-
the-art software.

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 1996
 HDFC Bank has set up a state-of-the-art dealing room to handle all transactions
possible in Indian financial markets.
 The Certificates of Deposits were awarded a PP1+ rating which is the highest
rating for short term instruments indicating superior capacity for repayment.
 HDFC Bank has entered the banking consortia of over 50 cooperates, including
some leading multinational companies, flagship companies of local business
houses and strong public sector companies.

 1997
 The bank is one of the largest mobilizes of retail deposits through its network of
20 branches. Its credit deposits ratio was 53.8%.
 The bank has set up a ultra-modern hub at Poway in Mumbai where the bank's
central computer is housed. This hub housed in 35,000 square feet of space,
houses data of all the branches and facilitates the introduction of new products
and services.
 HDFC has installed state-of-the-art systems to facilitate inter-connectivity
between branches and link up with on line system.
 The bank has also recently signed up as a depository participant, under the
newly set up NSDL, wherein the members clearing accounts settlement for
dematerialized shares can be done through the bank.
 HDFC Bank, one of the nine new-generation private sector banks, has planned
to set up an all-India on-line automated teller machine (ATM) network.
 HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai
at its Chandiveli branch.
 HDFC Bank has drawn up plans to become a niche player in corporate banking
by sticking to top-rung corporate.
 HDFC Bank has become the first private sector bank to conclude a structured
interest rate option deal.
 HDFC Bank has launched its Versova branch, the 11th branch in Mumbai.

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 HDFC Bank, as part of its expansion plans in the South, has opened another
branch in Chennai.
 HDFC Bank has entered into strategic alliances with 10 overseas banks to
provide customers with a wide range of derivatives including interest rate and
foreign currency swaps.
 HDFC Bank on October 14 introduced ATMs that converse in a regional
language.
 HDFC Bank has introduced the Freedom Account for the average retail customer
located in the major metros as a means to wean away the middle-income market
from nationalized banks.
 HDFC Bank has launched an account in all its 28 branches across India that
seeks to free depositors from minimum balance requirement, for the first time in
the country.
 HDFC has introduced a new loan product for the payment of betterment fees
announced by the Bangalore MahanagarPalike.
 HDFC Bank is all set to launch its debit card by April 1998.

 1998
 HDFC Bank has tied up with the Ahmadabad Stock Exchange (ASE) to act as its
clearing bank.
 HDFC Bank proposes to strengthen its branch network in Calcutta with the
addition of two new branches in the first quarter of the next fiscal.
 HDFC Bank has signed an agreement with the National Stock Exchange (NSE)
which will give it a second charge over the brokers deposit for providing loan
against share facility to NSE brokers.
 The bank has also entered into a similar understanding with the Bombay Stock
Exchange (BSE) whereby the bourse will provide support for recovery of money
against the card for loan against share facility.
 The bank has also entered into `Cirrus' arrangements by which all master card
holders across the globe will be able to transact at HDFC Bank in India.

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 The bank will also provide phone-banking facility in Bangalore. HDFChas tied up
with Visa International to offer its Debit Card.

 HDFC Bank Ltd has entered into a memorandum for understanding strategic
business collaboration with Chase Manhattan Bank.
 HDFC Bank has become the first bank in India to link up its automated teller
machine (ATM) network with all the three major payment systems world-wide.
 HDFC Bank will be the first bank in the Asia-Pacific region to connect the
American Express (Amex) payment system.
 The HDFC Bank is expanding its ATM network to connect to American Express
Interchange based in Phoenix, Arizona, USA. With this connectivity, HDFC
Bank has become the first bank in the Asia-pacific region to connect to the Amex
Interchange.
 HDFC Bank was the first to sign up with AMEX in December of 1998.

 1999

 The Bank has tied up with ITC Thread needle Mutual Fund to provide its
investors with the High Interest Fund (HIF), a facility to encase their units
through the bank's Automated Teller Machines in addition to a cheque book
facility also to be provided by the bank.
 Sony India Ltd (SIL) has joined hands with HDFC Bank to work out an innovative
car finance package under which a Sony car audio system would be installed to
a new car for no additional upfront cash outflow.
 The bank has decided to issue Rs. 1, 33,10,000 equity shares of Rs. 10 each to
HDFC and a wholly-owned subsidiary of it at a price of Rs. 94 per share.
 The bank will also issue 13,70,000 equity shares to India Private Equity Fund
and 51,20,000 shares to Indocean Financial Holding, the two equity funds
controlled by Chase Manhattan Bank.

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 HDFC Bank has tied up with BPL Ltd to offer Internet-enabled supply-chain
management and business-to-consumer (B2C) e-commerce services to
corporate.
 Hutchison Max Telecom and HDFC Bank introduced the country's first-ever
mobile-banking services in the city.

 2000
 HDFC Bank also signed a memorandum of understanding with Singapore
Telecom's e-commerce arm Sesami.Com Pvt. Ltd.
 The Bank latter also entered into a partnership agreement with National
Computer Systems, the e-commerce unit of SingTel.
 HDFC Bank is also launching an online electronic banking solution called E.net
which will allow corporate to access their accounts over the net and carry out
trade related transactions and cash management functions.
 HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94
per share to promoters and strategic investors on March 29.
 HDFC Bank is also set to become the first bank in the country to offer wireless
application protocol (WAP) services to customers.

 HDFC Bank and Cosmos Bank launched a co-branded ATM card.

 The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum
of understanding with HDFC Bank and UTI Bank for setting up a payment
gateway for its debt negotiation platform, Riskxpress.com.
 HDFC Securities Ltd., promoted by the HDFC group with equity participation
from the Housing Development Finance Corporation Ltd., HDFC Bank and
Chase Capital Partners, has launched its brokerage services for retail investors
in the Capital.
 The HDFC Bank and Airtel launched their mobile-banking service through WAP
in Delhi.
 HDFC Bank has launched wireless application protocol-based mobile-banking in
Coimbatore and Trichy in association with Aircel.

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 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 in association 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 services to online investors.
 Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have
joined the Cash Forum which has been set up by the Smart Card Forum of India.
 HDFC Bank has launched a new campaign for its eager savings account.
 HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer
online real time accounting services to small and medium enterprises.
 The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar,
Rajaji Nagar and Jaya Nagar on March 26
 HDFC Standard Life Insurance has launched a Development Insurance Plan a
low cost life insurance product developed specifically to meet the needs of
economically weaker sections.

 2002
 HDFC Bank unveiled a new online account aggregation service One View.
 HDFC launched 'One View' service to customers
 HDFC Bank launched its 9th branch in Karnataka.
 HDFC opens its branch in Mangalore.
 HDFC Bank unveils Silver card in Hyderabad.
 HDFC Bank opens first overseas representative office.
 HDFC Bank unveils gold card
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 Mediclaim facilities to HDFC Bank gold cardholders.
 HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has submitted his
resignation as Director of the Bank. The Board of Directors has accepted the
same. The Board of Directors has co-opted Mrs RenuKarnad as Additional
Director of the Bank.

 Mrs.RenuKarnad has been co-opted as an Additional Director of the Bank. Mrs

Karnad shall represent the promoters of the bank i.e. HDFC Ltd. Also Mr.Deepak
Satwalekar, Managing Director of HDFC Standard Life Insurance Company Ltd,
has been on the Board of the Bank as nominee of HDFC Ltd since September
12, 1994 and shall complete the period of 8 yrs. before the next scheduled board
meeting. In view of the provisions of the Banking Regulation Act, 1949,
Mr.Satwalekar has submitted his resignation as Director of the Bank and the
Board has accepted the same.

 2003

 HDFC Bank unveils resident foreign currency account.

 HDFC Bank unveils co-branded credit card with e-Seva.
 The Board of Directors of HDFC Bank Ltd at their meeting held on January 15,
2003 approved the appointment of Mr.ArvindPande as an Additional Director
pursuant to section 260 of the Companies Act, 1956.
 EPFO JV with HDFC Bank for its pension distribution.
 HDFC enters into agreement with HDFC Bank to source housing loans.
 HDFC Bank, IRCTC in tie up for online railway booking.
 HDFC Bank inks pact with ANB for remittance service
 HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.
 Uma Krishnan resigns HDFC Bank as country head.
 Escotel ties up with HDFC Bank for Global Debit Card.

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 Mumbai - HDFC Bank in collaboration with Tally Solutions is planning to launch
electronic data interchange (EDI) system for small and medium enterprises
(SMEs).
 Warburg Pincus sells 2% stake in HDFC for Rs 235 cr.
 HDFC Bank began selling home loans of its promoter Housing Development
Finance Corporation (HDFC).
 Board approved to allot 4,16,400 equity shares to the employees of the Bank
under the Employee Stock Option Scheme

 2004

 Mr RanjanKapur& Mr Bobby Parikh appointed as Additional Directors

 NMCE inks pact with HDFC Bank for warehouse receipts.
 HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd
(CCIL). The tie-up offers the latter's collateral borrowing and lending obligation
(CBLO) product to cooperative banks that are not direct members of the
negotiated dealing system (NDS).
 HDFC Bank repurchases HDFC loans worth Rs 208 cr.
 Launches Quick remit, a unique online service that enables NRIs in the US to
send money to their relatives in India from the comfort of their homes.
 Andhra Bank has entered into an alliance with HDFC Bank for sharing its
network of automated teller machines (ATMs). On March 29, 2004.
 HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to
cater to service the needs of the non-resident Indians (NRIs) in Bahrain.
 HDFC bank Ltd has informed that Dr (Mrs) AmlaSamanta has ceased to be a
director of the Bank wef April 25, 2004.
 HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent
finance on the on-road price of the car for seven years.
 HDFC Bank wins Asia money award for Best Domestic Bank.

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 HDFC Bank managing director AdityaPuri has been awarded the management
man of the year by the Bombay Management Association (BMA).
 HDFC Bank has entered into an agreement with Shrachi Securities Ltd, the
flagship company of the Kolkata-based Rs 300-crore Shrachi Group, for
financing of multi-utility vehicles all over India.

 2005

 HDFC Bank inaugurates first ATM in Hotel.

 HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking
services in Qatar.

 HDFC Bank launches loyalty rewards programme for its debit and credit
cardholders under the name InstaWonderz.
 HDFC Bank along with MasterCard International launched credit card targeted at
small and medium-sized enterprises.
 HDFC Bank has tied up with US-based WL Ross and company LLC for investing
in corporate restructuring.
 HDFC Bank unveils credit card for farmers

 2006

 HDFC sets up two more branches in AP.

 Osim to join hands with HDFC Bank for consumer loans.
 HDFC Bank inaugurates VbV facility for online shopping.
 HDFC sets up two more branches in AP


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 2007

 HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to
farmers across the country.
 Hdfc Bank Ltd has appointed Mr.PanditPalande as an additional Director of the
Bank at the Board Meeting held today i.e. on 24th April 2007.
 HDFC Bank Ltd has informed that the Board of Directors of the Bank at its
meeting held on October 12, 2007, has been appointed
Mr.PareshSukthankar&Mr. Harish Engineer as Executive Directors on the Board
of Directors of the bank. Mr.Sukthankar&Mr. Engineer have been senior
employees of the Bank since 1994 and have held various positions of
responsibility.

 2008

 HDFC Bank Ties Up With Postal Department, Extends Rural Reach.

 HDFC Bank Wins ‘Nasscom IT User Award The Year.
 HDFC Bank Opens Its First Overseas Branch In Bahrain.

 2009

 HDFC Bank Bags Asia money Award for the Best Domestic Bank.
 HDFC Bank offers electronic payment collection facility to
GuruvayoorDevaswom.
 HDFC Bank launches ‘Merits’ Scholarship Programme.
 The Asian Banker declares HDFC Bank the Best Retail Bank

 2010

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 With a view to attract long term deposits and prevent premature withdrawal when
the interest rates peak, HDFC, the housing finance major, has decided to pay
variable interest rate on recurring deposits.
 HDFC Bank on Feb 19 increased the fixed deposit rates by up to 150 basis
points across maturities, a move that follows the Cash Reserve Ratio hike of 75
basis points by the Reserve Bank of India last month.

 2011

 - HDFC Bank looking at 3G services to boost mobile banking share.

 - The Asian Banker magazine has declared that the strongest bank in Asia
Pacific region is HDFC
 -Company has splits its Face value of Shares from Rs 10 to Rs 2

 2012

 - The third-largest US lender by assets, Citigroup Inc has sold its complete 9.85
per cent stake in Housing Development Finance Corporation Ltd (HDFC) for
USD 1.9 billion.
 - HDFC Bank ties up with IOC to offer banking services in rural areas.
 - Carlyle offloads entire stake in HDFC for $841 mn through bulk deals
 - HDFC Bank opens office in Abu Dhabi
 - HDFC Bank has launched its mobile banking application in Hindi on targeting
about 560-million Hindi-speaking population of India.

 2013

 As per 31 March 2013 the bank assets of INR was 4.08 trillion.
 For the fiscal year 2012-13 , the bank has reported net profit of INR 69 billion,

19
 up to 3% from the previous fiscal year.
 Customer base stood at 2.87 millioncustomer on 31 March 2013

 2014

 As per 31 March 2014 the bank assets of INR was 5.08 trillion.
 For the fiscal year 2013-14 , the bank has reported net profit of INR 69 billion,
up to 6% from the previous fiscal year.
 Customer base stood at 3.87 millioncustomer on 31 March 2013

 2015

 For the year ended march 31, 2015 the bank earned total income of 57,466.3
Crores. Net revenues for the year ended march 31, 2015 were 31,392.0 Crores,
up by 18.9% over 26402.3 Crores for the year ended March 31, 2014.

PRODUCTS & SERVICES OFFERED BY HDFC BANK

The following are the various types of products and services offered by HDFC Bank.
They are as followed:

ACCOUNT & DEPOSITS SERVICE

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter
what a customer's need and occupational status, we have a range of solutions that are
second to none. Whether you're employed in a company and need a simple Savings
account or run your own business and require a robust banking partner, HDFC Bank not
only has the perfect solution for you, but also can recommend products that can
augment your planning for the future.

It includes these services: -

 Saving Accounts.

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  Current Accounts.
 Fixed Deposits.
 DematAccount.
 Safe Deposits Locker.

Savings Accounts

These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever person’s occupation, bank have
confident that person will find the perfect banking solution. There some saving accounts
like: -

Regular Saving Account:

An easy-to-operate savings account that allows you to issue cheques, draw Demand
Drafts and withdraw cash. Check up on your balances from the comfort of your home or
office through Net Banking, Phone Banking and Mobile Banking. If you need money
urgently then you can take money from the ATM machine. There are 1977 ATM centres
across the country.

Saving plus Account

Introducing the best banking option for you with HDFC Bank Savings plus Account. Now
you can get access to some of the finest banking facilities with HDFC Bank's Savings
plus Account. All you have to do is maintain an Average Quarterly Balance of Rs.
5,000/-.

Saving Max Account

Welcome to a world of convenience. Presenting Savings Max account, loaded with

maximum benefits to make your banking experience a pleasure. By maintaining an
average quarterly balance of just Rs. 25,000/- you get a host of premium services from
HDFC Bank absolutely free.

21
Senior Citizen Account

HDFC Bank appreciates your needs and endeavours, which is why, they present an
account especially dedicated to customer, which like a dutiful child will help you fulfil
your needs in the best manner possible.

Institutional saving accounts

A specially designed account that offers twin benefits of a savings as well as a current
account. Customer’s funds continue to earn you interest while he enjoys hassle-free
banking & a host of other features. All this and more in a Zero Balance account.

Salary Accounts

In this account customer can get salary from where he/she doing such job and
organization or company at where the customer of the bank in doing job deposit their
salary in to the salary account a person can get salary. There are various kinds of
saving accounts in the HDFC Bank like: -

 Pay roll account.

 Classic salary account.
 Regular salary account.
 Premium salary account.
 Defence salary account.
 No frills salary account.
 Reimbursement salary account.

Kid’s advantage account

Start saving for your child today and secure his/her future a sentence tells by the Hdfc
bank. Open a Savings Account and transfer money every month into customer’s Kids
Advantage.

22
Account and watch the savings grow as customer’s child grows. The accumulated
savings in the Kids Advantage Account can over the years help in meeting customer
child's needs.

Main features and benefits of this account are as follow:-

Current Accounts

HDFC Bank Current Account gives the power of inter-city banking with a single account
and access to more than cities. From special cheques that get treated at par with local
ones in any city where branch, faster collection of outstation cheques (payable at
branch locations), free account to account funds transfer between HDFC Bank accounts
to Free inter-city clearing of up to 100 lakhs per month, bank’s priority services have
become the benchmark for banking efficiency.

Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any of
our 761 branches in 327 cities. Not only that, he can do most of his banking
transactions from the comfort of his office or home without stepping out.

There are various kinds of current account in this bank like: -

Plus current account

HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining an
average quarterly balance of Rs. 100,000.

Trade current account

In today's changing business requirements, you need to transfer funds across cities,
and time is of the essence. HDFC Bank Trade Current Account gives power of inter-city
banking with a single account.

23
From special cheques that get treated at par with local ones in any city where bank
have a branch, to free account to account funds transfer between HDFC Bank
accounts, to free inter-city clearing of up to 50 lakhs per month, bank’s priority services
have become the benchmark for banking efficiency. Trade Current Account requires
maintaining an average quarterly balance of Rs. 40,000.

Premium current account

Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking account
that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par
cheque book facility & FREE inter-city clearing transactions across our network up to
Rs.25 Lacs per month.

A Current Account with the benefits of accessing account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and through
the ATM.

Regular current account

A Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, customer can access account anytime,
anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank
branch.

Reimbursement Current Account

No more paperwork, no more receipts to keep track of - a hassle-free account that

allows deposit the reimbursements receive from company/organization on a monthly
basis.

24
To open this account a person has to follow these processes:

Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person).

Mention Salary Account number and Debit Card number on the AOD so that Debit card
can be linked to both, Salary Account as well as new Reimbursement Account.

Request company to directly credit cash payments to the Reimbursement Account.

RFC – Domestic Account

Full name of this account is Resident foreign currency account.

Have you accumulated foreign currency from travelling abroad frequently? Received
gifts from relatives in foreign currency? Or earned it by any other means as approved by
the Reserve Bank of India?If so, open Resident Foreign Currency Domestic Account
and manage foreign currency efficiently. Person can choose to set up your account
either in US Dollar, Great Britain Pound or Euro.To open this accounts a person as to
follow this process: -

Choose the currency in which person wish to operate. Open account with an initial
amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250 and
maintain an Average Quarterly Balance of the same amount.

Flexi current account

Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current
Account is the answer to changing banking needs during peak seasons.With HDFC
Bank Flexi Current Account Cash Deposit and Anywhere Transaction limits are a
multiple of the balance you maintain in Current Account. So, during peak seasons,
customer get the benefit of higher transaction limits due to the higher average balances
maintained in account.

25
Apex current account

The top position is always the desirable position. With the Apex current account, take
business to a new high. On maintaining an average quarterly balance of Rs. 10lakhs,
this account makes sure person make the most of every business opportunities coming
his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for
person who joints this.

Max current account

Maximum benefits and minimum hassles for customer with Max Current Account with a
Rs. 5lakhs average quarterly balance requirement, bank present to world of privileges
that helps business expand and grow. Features like maximum free transaction limits
including other beneficial features on this current account truly enhances business
potential to the Maximum.

Fix Deposits Service

Long-term investments form the chunk of everybody's future plans. An alternative to

simply applying for loans, fixed deposits allow to borrow from own funds for a limited
period, thus fulfilling needs as well as keeping savings secure.

People can invest his/her money into either in security market or gold or mutual fund or
into a fix deposits. People always go to that way where he/she can get more benefits
and minimum risks. So, for this purpose he has a better chance to deposits money in to
the fix deposit.

Regular fix deposit

As per the rules and regulation of the bank a person can deposit their money in to a fix
deposit in the bank and can get the benefits of these facilities

26
Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under Sec
80C of the Income Tax Act,1961 subject to necessary declarations taken from the
Customer.

Super saver facility

Customer can enjoy a high rate of interest along with the liquidity of a Savings Account
by opting for a Super Saver Facility on his or her savings account. Avail of an overdraft
facility of up to 75% of the value of his or her Fixed Deposit.

Sweep-in facility

Do you wish to avoid taking overdrafts, and still take advantage of your Fixed Deposits?
Then what you need is a Sweep-In Facility on savings account. Link Fixed Deposit to
Savings or Current Account and use it to fall back on in case of emergencies. A deficit
in Savings or Current Account is taken care of by using up an exact value from Fixed
Deposit. Since deposits are broken down in units of Re 1/-, customer will lose interest
only for the actual amount that has been withdrawn.

Demat Account Service

Nowadays share market is becoming is the main occupation of the person. So to avoid
faulty processes demat account is really most important for the share market and for the
safety of shares it is most important. HDFC BANK is one of the leading Depository
Participant (DP) in the country with over 8 Lac demat accounts.

27
HDFC Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.

HDFC BANK is Depository participant both with -National Securities Depositories

Limited (NSDL) and Central Depository Services Limited (CDSL).

Safe Deposit Locker

A Safe Deposit Locker with HDFC Bank is the solution to person’s fear. Located at
select branches in cities all over the country, bank’s lockers ensure the safe keeping of
valuables.

An individual (not minor), firms, limited company, associations, clubs, trusts, societies,
etc may hire a locker.

LOAN SERVICES

In today’s competitive world everything happens only with the help of money or through
the money because everyone needs money. But some time a person has not cash on
hand at that

time he needs lone either from any friend or from any financial institute. Lone does not
mean that only lower class person needs it but also upper class person it is needed.

As per the requirement of the every person there are much type of loans are there in the
HDFC bank.

Personal loan

A person has so many dreams but some time due to scarcity of money a dream can’t be
satisfy. So, here one solution for that person this is personal loan. From this he/she can
fulfil their needs or requirement.

28
Home loan
HDFC Bank brings HDFC home loans to doorstep. With over 30 years of experience, a
dedicated team of experts and a complete package to meet all housing finance needs,
HDFC Home Loans, help people realize dream.

Vehicles loan

Nowadays the life is being so fast, time value is becoming more important so to reach at
the destination of any business related occasion or for a boy to reach college or
anywhere at the fix time there are so many requirement of vehicles. But every people
have no capacity to purchase

vehicles with cash so for that here in the HDFC bank vehicles loan is available. There
are many types of vehicles loan.

Types of vehicles loan:

Two wheeler loans.

New car loan.

Used car loan.

Tractor loan (for agree culture business).

Commercial vehicle loan.

Express loan plus

Bank offer Express Loans Plus at person Doorstep to help fulfil all his/her needs. The
procedure is simple, documentation is minimal and approval is quick. It is helpful to
person in repairing of house, School admission or also in the family holiday.

29
Gold loan

With HDFC Bank's Gold Loan, person can get an instant loan against gold jewellery and
ornaments. The procedure is simple, documentation is minimal and approval is quick. A
person can get 70% loan on the value of the gold jewellery and ornaments. There is
also availability of the overdraft on the gold jewellery. With this a customer can get free
additional services like free personalized cheque book, free international debit card, and
free net banking phone banking services.

Educational loan

Now-a-days importance of education is becoming very high. As its importance

becoming high it is becoming costly. So in the higher education some time people
cannot effort a high price at a same time. So, there is education loan is also available
for the student.

A person can get loan up to 10lakhs to study in India and 20lakhs if he wants to study in
abroad. Loan available up to tenure of 7years including moratorium period.

Loans disbursed directly to the educational institution. It is released as per fee

schedules of institutes. Exclusive Telegraphic Transfer facility is available for courses
abroad. Loans available for short duration/ job oriented courses also.

Loan against security

With HDFC Bank's Loan against Securities, person can get an overdraft against
securities like Equity Shares, Mutual Fund Units(Equity, Debt, FMPs), Gold Exchange
Traded Fund(ETF),NABARD's BhavishyaNirman Bonds, Policies issued by LIC & Select
Private Insurance Companies, NSC, KVP, UTI Bonds (ARS & US64 Bonds) and Gold
Deposit Certificates, while still retaining ownership.

30
Loan against property

HDFC Bank brings Loan against Property (LAP). Person can now take a loan against
residential or commercial property, to expand his business, plan a dream wedding, and
fund his child's education and much more. He can depend on bank to meet all his
business requirements even to purchase a new shop or office for business. Loan to
purchase Commercial Property (LCP) is a specially designed product to help person
expand his business without reducing the capital from his business.

These are loans services providing by HDFC bank which are very hassle free and really
benefits for most of customer and most of customer are satisfied by the loan services
providing by the bank.

CARD SERVICES

In today’s competitive and fast time card services providing by the banks are really very
important to every person and every business needs or to take meal in to the hotel or to
purchase jewellery from the jewellery shops cards are playing good role in the banking
sectors.Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, budget his
expenditure, he will find a card that suits him.

Credit cards

A person wants many things like, a trip to Bali, a diamond ring for wife's dreams. Some
dreams can't wait. If there's something person has always wanted. If a person wants to
fulfil his wants he can get benefits from the HDFC bank’s credit cards facilities. Different
types of credit

Classic cards:

 Silver Credit Card.

 Value Plus Credit Card.
31
  Health Plus Credit Card.
 Premium Cards:
 Gold Credit Card
 Titanium Credit Card
 Woman's Gold Card
 Platinum Plus Credit Card
 Visa Signature Credit Card
 World MasterCard
 Commercial Cards
 Corporate Credit Card

Debit cards

HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.

Types of debit card: -

 Classic card
 Easy shop international Debit card.
 Premium card
 Easy shop gold Debit card.
 Specialized card
 Easy Shop International Business Debit Card.
 Easy Shop Woman's Advantage Debit Card.
 Easy Shop NRO Debit Card.
 Kisan Card.

32
Prepaid cards

Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.

 Forex Plus Cards

 Prepaid Travel Card.
 Gift Plus Cards
 Prepaid Gift Card.
 Food Plus Cards
 Prepaid Food Plus card.

33
 RESEARCH METHODOLGY

TITLE OF STUDY

“CUSTOMER SATISFACTION OF HDFC BANK”

34
 DURATION OF THE PROJECT

THE DURATION OF THE PROJECT WAS 45 DAYS

35
 OBJECTIVES

PRIMARY OBJECTIVE

 To get familiarize with working environment in the corporate sector.

 To learn how to use my theoretical knowledge in the practical world.

 To drive out fear of the corporate world out of my mind.

SECONDRY OBJECTIVE

 To get to know about HDFC BANK as much as possible.

 To study the all the possible factors responsible for analyzing of the customer
satisfaction, their feedback, customer awareness and trust.
 To do the market penetration of the bank so that it will calculate penetration of
the bank.
 Post evaluation of the data will help the bank to tap unpenertated market.
 Post sales process of bank will evaluate the revised market penetration.
 To know the procedure of banking with HDFC bank.

Type of Research And Method Used

The purpose of our project work was to study the Customer Satisfaction of HDFC Bank.
I used following type of research method:

1. Exploratory Research

2. Descriptive Research

Thus keeping this in mind I adopted the following research methodology.

36
 DATA COLLECTION

The objectives of the project are such that both the primary and secondary data is
required to achieve them. So both primary and secondary data was used for the project.
The mode of collecting primary data is questionnaire mode and sources of secondary
data are various magazines, books, newspapers & websites etc.

1. Primary Data:

The primary data were collected to measure the customer satisfaction regarding HDFC
bank. The primary data were collected through structured questionnaire and analysis
was done on the basis of response received from the customers. The questionnaire has
been designed in such a manner that the customer’s satisfaction level can be measured
and consumer can enter his response easily.

2. Secondary Data:

The purpose of collecting secondary data was to achieve the objective of studying the
recent trends and development taking place in customer relationship management.

Sampling Design:

It is very difficult to collect information from every member of a population. As time and
costs are the major limitations that the researcher faces.

Definition of Population:

My population consisted of the dissatisfied customers of the HDFC Bank. The reason
for choosing the dissatisfied customers as the population was that to level their
satisfactory level and these are usually meant for such classes only and hence the
normal customers were not considered.

37
 Sampling Method:

My sample consisted of 100 respondents. I structured personal interviews on the basis

of a sample random sample.

Sample size:

Because of the various constraints imposed on the project work, especially time and
cost, my sample size was limited to 100. This also enabled me to obtain an equal
number of respondents in each stratum.

Sampling plan:

The research was conducted mainly away from the branch and further I met certain
customers

Personally after getting their proper references’.

Questionnaire design:

I designed my questionnaire based on the information acquired from our background

research. I also used my own personal judgment when determining which type of
questions might be the most applicable to the information I was trying to obtain. The
questionnaire consisted of 15 questions with options against each and one open ended
question; at the end, for suggestion. The scale used for questionnaire is given in
Appendix

In designing the format of my questionnaires, I used the standard procedure to

formulate a questionnaire

Collection procedure:

Personal interviews were conducted using individual questionnaire for each respondent.
The responses were recorded directly onto each questionnaire

38
 Tools of analysis:

After collecting the data has been analyzed through various statistical tools and
techniques. The unwisely data should necessarily be condensed into few manageable
groups and tables for further analysis. Thus it helps to classify the raw data into some
purposeful and usable categories.

SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main
scope of the study was to put into practical the theoretical aspect of the study into real
life work experience. The study of working capital is based on tools like comparative
balance sheet, Statement of changes in working capital. Further the study is based on
last 3 years Annual Reports of HDFC Bank ltd.

LIMITATIONS OF STUDY

1. Sincere efforts have been made to eliminate discrepancies as far as possible but few would
have remained due to limitations of the study

2. Time seemed to be my most limited resource. To conduct a comprehensive research project

in a two month period is difficult.

3. The absence of appropriate funding limited the extent of our study. With less financial
resources, the scope of my study could have been enlarged, resulting in a more representative
study.

4. Interviewer bias could not be avoided as in case of many surveys open ended questions
involve the use of probing techniques that increase interviewer bias. However, as my study did
not use many open ended questions, the extent of the bias was reduced.

5. Some of the respondents gave ambiguous replies for certain questions or omit-ed the
responses to some of them. The interpretation of such responses becomes difficult and could
generate wrong result

39
 FINDINGS

 Majority of the customers are aware of services and extra services offered by
HDFC Bank. But not all the services.

 The majority of the customers found services of the bank are average.

 Majority of the respondents are found the bank is average

in maintaining the good customer relationship.

 Majority of the respondent said that they are facing the problem of
timeliness and rest are facing problem of customer relationship and
infrastructure.

 The perception of the majority of the customer regarding the bank is good
because majority of the customers are satisfied with the bank and they also
recommend the products of the bank.

 The most preferable extra service is ATM’s and the less preferable
services are bills payment, net banking and phone banking.

 The majority of customers are more interested in FD’s, mutual funds

and saving a/cs.

 The majority of the customers are satisfied with the dealing of the
officials up to some extent.

 Main factor that attract customers towards bank is the services of the bank.

 Services that are most used by the customer are saving a/c, FD’s,
current a/c and loans
 Majority of the customer are satisfaction with HDFC Bank

40
 ANALYSIS AND ITS INTERPRETATION

Name and address …………………………………….

Contact No: ………………………………………….

Q1. Do you have any Account in HDFC Bank?

a) Yes

b) No (mention name)

Extra facilities provide (if any):

Q2. For how much time you are in relation with HDFC Business Banking?

a) Days

b) Months

c) Years

Q3. What are the various services you are availing from the bank?

 Anywhere cheque book

 Free access to other ATMs

41
  Net Banking

 Discount on loan products

 Discount on Gold and Forex Purchase

 Wealth advisory service

 Easy shop Debit card

Q4. The most valuable thing that matters to you most?

o Time

o Money

o Customer Relationship

Q5. What do you think about the behavior of the employees in the bank towards your
demands?

a) Highly responsive

b) Moderately responsive

c) Least responsive

42
Q6. Rank the Efficiency of the HDFC Bank?

a) Above average

b) Average

c) Below average

Q7 Which bank you think provides best business products and why?

 J&K Bank

 SBI

 HDFC Bank

 ICICI

 PNB

Q8. What according to you should HDFC Bank do to reach out more and more
customers?

43
________________________________________________________________________

Q9. Would you like to have banking with HDFC Bank in future?

A) Yes ____

B) No ____

ANALYSIS AND ITS INTERPRETATION

A market survey was used as a primary source of data collection whose analysis is
given below:

1. Do you have any Account in HDFC Bank?

a) Yes

b) No (mention name)

Extra facilities provide (if any):

This question was framed to know the percentage of customers that are banking with
HDFC Bank and to find out major competitor of HDFC Bank.

Options No. of %age

customers
Yes 29 29%

No 71 71%

Total 100 100

44
 Sales

71% Yes
29%
No

Analysis and interpretation:

From the survey of 100 respondents, it can be found that only 29% of the sample
population is banking with HDFC bank while majority of the 71% of the sample
population with J&K Bank The main reason is that J&K bank is the premium bank in the
valley and the customer gets full respect with its demand fulfillment. Extra facilities
provided by other banks especially J&K Bank are as follows:

 Very less maintenance charges.

 Quickness in providing credit cards and cheque books.
 Bonhomie
 Less documentation than HDFC Bank
 Convenience in dealing with the customers as they also have J&K Bank account
or we can say homogeneity

2. For how much time you are in relation with HDFC Business Banking?

a) Days

b) Months

c) Years

45
 2%

Days
30% Months
68%
Years

Interpretation

The customer relationship was not for much more time with the bank in case of
business Banking. It just lasts for months and when the customer realized the
shortcomings, the then Transact less. Though 30% of the sample population deal in
years, strictly speaking they are the true customers that need to be preserved.

3. What are the various services you are availing from the bank?

 Anywhere cheque book

 Free access to other ATMs
 Net Banking
 Discount on loan products
 Discount on Gold and Forex Purchase
 Wealth advisory service
 Easy shop Debit card

This question was framed to know how many of the services are actually being availed
by the customer.

46
Services No. of customer Total sample %age
availing

Easy Shop Debit 60 100 60

Card

Anywhere cheque 69 100 69

book

Free access to other 90 100 90

ATMs

Net Banking 45 100 45

Discount on loan 30 100 30

products

Discount on Gold 25 100 25

and Forex Purchase

Wealth advisory 2 100 2

service

47
 Analysis and interpretation:

From the survey of 100 sample population, that most of the customers are using the first
three facilities mentioned above but are not fully aware about the rest of the facilities
especially with discount on loan products. This question was framed to understand the
customer very well. I found that the customers who are availing more services from the
bank are also well aware of the bank and its products. Other customers who are not
aware of the bank are also not availing too many services from the bank.

4. The most valuable thing that matters to you most?

 Time
 Money
 Customer Relationship

This question was framed to know the most valuable thing that matters to the customers
so that the HDFC bank could focus on those areas accordingly.

48
 50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Time Customer Relationship Money

Analysis and interpretation

From the survey of 100 sample population, I found that 21.5% of respondents feel that
customer relationship matters them most, while same proportion feel that time matters
them most and rest 4% of sample population feel money as the most valuable thing for
them. From the above analysis it can be stated that bank should focus more on
customer relationship and time for the sustenance of the customers

5. What do you think about the behavior of the employees in the bank towards
your demands?

a) Highly responsive

b) Moderately responsive

c) Least responsive

This question was framed to know how much the customers are satisfied with the

Behavior of HDFC Bank employees

49
 Highly
Responsive
13%
27% Moderately
Responsive

Least
67% responsive

INTERPRETATION

Most of the employees are moderately responsive when any customer approaches and
talked about their demands or problems. Nearly 27% of the sample population thinks
that the behavior of the employees is highly responsive. 67% of the sample population
believes that they are moderately responsive while 13% think in negative sense. The
main strength of the HDFC Bank lies in that, their organizational behavior is excellent.

6. Rank the Efficiency of the HDFC Bank?

a) Above average
b) Average
c) Below average

50
INTERPRETATION

HDFC Bank is an efficient society which works for the betterment of its customers. The
bank works for long hours to complete daily transaction operations. When the banks
efficiency was asked to the customers, most of the customers were of the opinion that
HDFC Bank is average in case of its efficiency.

More than 66% of the sample population believes average efficiency, while 27%
believes that it is above average and 6% are of the opinion that it is below average.

7. Which bank you think provides best business products?

A) SSBJ Bank
B) SBI Bank
C) HDFC Bank
D) ICICI Bank
E) PNB

51
 30
27
26
Sentiments
25

Brand
20
Awareness
No. of 15 14 Brand Image
Responses 12

10
10 CSR
7

5 4 4
3
2
1 1 111
0 0 0 0 0
0
SSBJ SBI HDFC PNB ICICI

Name of Banks

INTERPRETATION

In SBBJ, as being local bank, holds the top position .It is one of the main and major
competitors of HDFC Bank. Sentiments of the people are well holded by HDFC bank,
as from above it is 27% of the samples think that they are connected to the J&K bank
because of sentimental connection like feeling trust with the bank. There is much more
awareness of the J&K bank’s different products and people are feeling respected during
banking with J&K bank , thus the brand image is tremendous as it is clear from the
graph showing 26 responses.

Corporate social Responsibility (CSR) in case of SBBJ was high.

SBI is at second spot while HDFC Bank at third .HDFC Bank is poor in CSR and was
still unable rule over the hearts of the people. There are only 4 responses in case of
sentiments, 7 in brand awareness and 10 in brand image. These responses clearly

52
showed that HDFC Bank needs to focus on its awareness and look forward to serve
people better.

8. What according to you should HDFC Bank does to reach out more and more
customers?

According to the respondents in order to reach out more and more customers, the bank
may has to take positive look over to the following points as mentioned below:

a) More ATM’s and Branches

b) Less Maintenance balance
c) Less Documentation proof
d) Better conductive workforce
e) Quick accessibility of Services

9. Would you like to have banking with HDFC Bank in future?

A) Yes

B) No

39%
yes
No

61%
53
INTERPRETATION:

In SBBJ, as being local bank, holds the top position .It is one of the main and major
competitors of HDFC Bank. Sentiments of the people are well holds by SSBJ bank, as
from above it is 61% of the samples think that they are connected to the SSBJ bank
because of sentimental connection like feeling trust with the bank and are not yet ready
to switch over to the HDFC Bank. While rest 39% of the sample population are keen
interested in banking with the HDFC Bank.

54
 SWOT ANALYSIS

SWOT Analysis of HDFC Bank

Strengths: –

 Right strategy for the right products.

 Superior customer service vs. competitors.
 Great Brand Image.
 Products have required accreditation.
 High degree of customer satisfaction.
 Good place to work
 Lower response time with efficient and effective service.
 Dedicated workforce aiming at making a long-term career in the field.

Weakness: –

 Some gaps in range for certain sectors.

 Customer service staff need training.
 Processes and systems, etc
 Management cover insufficient.

LOANS AND
Scrotal growth is constrained by low unemployment levels and competition for
ADVANCES
staff

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Opportunities: –

 Profit margins will be good.

 Could extend to overseas broadly.
 New specialist applications.
 Could seek better customer deals.
 Fast-track career development opportunities on an industry-wide basis.
 An applied research center to create opportunities for developing techniques to
provide added-value services.

Threats: –

 Legislation could impact.

 Great risk involved
 Very high competition prevailing in the industry.
 Vulnerable to reactive attack by major competitors.
 Lack of infrastructure in rural areas could constrain investment.
 High volume/low cost market is intensely competitive.

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 SUGGESTIONS

There are lots of benefits by acquiring any type of loan and one can easily fulfil his
needs and basic requirements of life. There are also tax related benefits that is tax
liability can be reduced a lot by showing more debt than equity in capital structure.

 More stress should give on the advertisement and promotional activities.

 The Bank should make some efforts to improving good relationship with
customer.
 The bank should enhance their services according to the needs of the customer.
 The bank makes its procedures less time consuming.
 The bank should make effort to aware the customers about their all the extra services.

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 CONCLUSION

At the end I would like to conclude that The Indian banking market is
g r o w i n g a t a n astonishing rate, with Assets expected to reach US$1 trillion
by 2010. HDFC bank had a network of 1,142 branches And 3,295 automated teller
machines in 528 cities in Ind
ia. The majority of customers are satisfied. But the bank should target on the rest of the
customers who are not satisfied. The customers are aware about the bank’s
services but the Bank should try to create more awareness among people. HDFC
Bank should lay more stress on
advertisements, both in print as well as in other media for this
p u r p o s e . N u m b e r o f formalities should reduce, as customer feels irritated with lots
of formalities and it will save the time of customer and Bank also.

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 BIBLIOGRAPHY

MAGAZINES

1. Financial information of HDFC. Reports of HDFC Bank Ltd., yearly.

2. Advani, Ashok hotchand. Business today, Business India Publications Ltd., weekly.
3. Business loans. Business today, living media, bimonthly.

NEWSPAPERS

1. Times of India, The Times Group, daily newspaper.

2. The Economic Times, The Times Group, daily newspaper.

WEBSITES

www.hdfcbank.net

www.hdfcbank.nic.com

www.wikipedia.com

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