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A PROJECT REPORT ON

Study services of HDFC BANK for current account in Pune city

SUBMITED TO MIT SCHOOL OF MANAGEMENT

BY BIKASH GORAI PGDBM (2009-2011)

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ACKNOWLEDGEMENT

There is no better work without better effort effort & effort effort can’t be better without proper guidance. I wish to express my gratitude to all the people who provided factual information guidance & suppo support. rt. I would like to thank  Prof.Girish Mude for throughout the project. I wish to acknowledge ack nowledge those many People feedback has enabled me to satisfactorily complete my summer training. I would specially thank Mrs.Kamalika Gupta branch manager, HDFC BANK, for being my project guide. .

 

Bikash Gorai

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Executive summary The peace of Indian banking industry has been tremendous change over the past decade. India’s banking sector  has been one of the very few to actually actually maintain resilience whil whilee continuing to provide the growth opportunities .Some of the major issue of HDFC bank are as follows. follows.

Ethicals Banking is the professional professional sector. It It follows the rules & regulation of Reserve bank of India .It does not works out of the ethics ethics & policy. Due to tthese hese kinds of policy there are are less no. frauds & Corruptions inn these sectors. Chances of crime are also avoided Because of new policies of Indian banking organizations.

Audited According to Indian banking policy po licy Bank is to be audited after eevery very 3 months...Through these audit seniors are checking all internal accounts, Operations systems, Lobbing managements systems, performance of the employee, and all the records of the transactions. In this way they are controlling the employee of the branch & Internal systems.

Sales oriented The pressure of sales is more on sales people. To increase the sales bank made 2 sales team .One directly from branch & another is pure sales team. Sales are compulsory from operation people to the manager of branch. The cluster head of the regions give sales target to the authorizers, managers & personal bankers. Bank completes all the sales requirements through operations peoples.  Lobby management. Bank distinguish the customer as band 1,band2,band3,band 4 & band5.Band 5 is the most profitable customer  of bank because did not come in the the branch & also not west the bank time time cost. Band 1 is the time taking customer of bank .bank always avoids such types of customer. Lobby management gene generally rally involves Generating lead through walking customers.

Customer’s types They provide higher range of quality quality services only to the profitable preferred customer. customer. Their targeted customer is only higher middle middle class & higher class people. HDFC HDFC is only quality customer oriented not quantity customer oriented.

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INDEX

Reno.

Chapters Name

Page no.

1.

INTRODUCTION

7

2

RATIONALE OF THE STUDY

12

3.

INDUSTRY PROFILE

13

4.

COMPANY AND PRODUCT PROFILE

18

5.

LITERATURE REVIEW

32

6.

OBJECTIVE AND SCOPE

35

7.

RESEARCH METHODOLOGY

37

8.

DATA ANALYSIS,INTERPRETATION & TABULATION

39

9.

OBSERVATION & FINDINGS

63

10.

CONCLUSIONS

65

11.

SUGGESTIONS & RECOMMENDATION

67

12.

BIBLIOGRAPHY

69

13.

ANNEXURE

70

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List of tables

Reno.

Name of the Table

Page no. of the Table

1

Structured of Indian banking industry

8

2

Current account type

23

3

Customer type

43

4

Customer benefit regarding services

44

5

Rating of service

45

6

Fund transfer

47

7

P ay order Pa

49

8

9

Online banking

NEFT (National Electronic Fund Transferred)

50

51

10

Customer feedback regarding cash counter

52,53

11

Feedback regarding personal banker

54

12

Maintain quarterly average balance

55,57

13

Feedback regarding overall services of HDFC

59

14

To maintain the long term relation with HDFC bank?

61

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List of graph

Reno.

Name of the graph

Page no. of the graph

1 2

Customer type Customer benefit regarding services

43 44

3

Service rating

45

4

Fund transfer 

47

5

Demand draft

48

6

Pay order

49

7

Online banking

50

8

NEFT (National Electronic Fund Transferred)

51

9

Customer feedback regarding cash counter 

52,53

10

Feedback regarding personal banker 

54

11

Maintain quarterly average balance

55,57

12

Feedback regarding overall services of HDFC

59

13

To maintain the long term relation with HDFC bank?

61

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Introduction & Rationale/Preambles of the study

Chapters 1

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1) Introduction of sector 1.1) Structured of Indian banking industry

Reserve bank of IndiaIt is the central banking system of India of India and controls the monetary policy of the rupee as well as US$ of  currency reserves. The institution was established on 1 April 1935 during the British-Raj in accordance with the provisions of the Reserve Bank of India Act, 1934 and plays an important part in the development strategy of  the government

a) Main Functions Monetary Authority The Reserve Bank of India is the main monetary authority of the country and beside that the central bank acts as the bank of the national and state governments. governments. It formulates implements and monitors the monetary policy as well as it has to ensure an adequate flow of credit to productive sectors. Objectives are maintaining price stability and ensuring adequate flow of  credit to productive sectors. The national economy depends on the public sector and the central bank promotes an expensive monetary policy to push the private sector since the financial market reforms of the 1990s. 1 1

 

The institution is also the regulator and supervisor of the financial system and prescribes broad parameters of  banking operations within which the country's coun try's banking and financial system functions. Objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective redressed of complaints by bank customers. The RBI controls con trols the monetary supply; monitors economic indicators like the gross domestic product and has decide the design of the rupee banknotes as well as coins.

Manager of exchange control The central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency The bank issues and exchanges or destroys currency and coins not fit for circulation. The Objectives are giving the public adequate supply of currency cu rrency of good quality and to provide loans to commercial banks to maintain or  improve the GDP. The basic objectives of RBI are to issue bank no notes, tes, to maintain the currency and credit system of the country to utilize it in its best advantage, and an d to maintain the reserves. RBI maintains the economic structure of the country so that it can achieve the objective of p price rice stability as well as economic development, because both objectives are diverse in themselves.

Developmentall role Developmenta The central bank has to perform a wide range of promotional functions to support national objectives and industries. The RBI faces a lot of inter-sectorial and local inflation-related problems. Some of these problems are results of the dominant part of the public sector.

b) Related functions The RBI is also a banker to the Government and performs merchant banking function for the central and the state governments. It also acts as their banker. The National Housing Bank (NHB) Bank (NHB) was established in 1988 to promote private real estate acquisition. The institution maintains banking accounts of all scheduled banks, too. There is now an international consensus about the need to focus the tasks of a central bank upon central banking. RBI is far out of touch with such a principle, owing to the sprawling mandate described above. The recent financial turmoil world-over, has however, vindicated the Reserve Bank's role in maintaining financial stability in India.

Scheduled bank Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

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The banks included in this schedule list should fulfill two conditions. 1. The paid capital and collected funds of bank should not be less than Rs. 5 lac. 2. Any activity of the bank will not adversely affect the interests of depositors. Every Scheduled bank enjoys the following facilities. 1. Such bank becomes eligible for debts/loans on bank rate from the RBI 2. Such bank automatically acquires the membership of clearing house. The following are the Scheduled Banks in India (Public Sector):   • • • • • • • • • • •

• • • • • • • • • • • • • • •

State Bank of India State Bank of Bikaner and Jaipur  State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank  Allahabad Bank  Bank of Baroda Bank of India Bank of Maharashtra Canara Bank  Central Bank of India Corporation Bank  Dena Bank  Indian Overseas Bank  Indian Bank  Oriental Bank of Commerce Punjab National Bank  Punjab and Sind Bank  Syndicate Bank  Union Bank of India United Bank of India UCO Bank  Vijaya Bank 

The following are the Scheduled Banks in India (Private Sector):   • • • • • • • • •

ING Vysa Bank Ltd Axis Bank Ltd Indusland Bank Ltd ICICI Bank Ltd South Indian Bank  HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd 1 1

 

The following are the Scheduled Foreign Banks in India:   • • • • • •

American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc

• • • • • •

Citi Bank Bank N.C. A.G. Deutsche Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG

Cooperative bank  is retail and commercial banking organized on a cooperative basis. Cooperative banking institutions take deposits and lend money in most parts of the world. Cooperative banking (for the purposes of this article), includes retail banking, as carried out by credit unions, mutual savings and loan associations, building societies and cooperatives, as well as commercial banking services provided by mutual organizations (such as cooperative federations) to cooperative businesses.

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Rationale of the study The study of ‘services of banking for current account accoun t in pune city’ is vitally important as it focused on the strong relation worthiness of account holders with the bank. It also simultaneously simultaneously reduces band 1 types of  customers(less useful) from the bank through value build up. Current account value build up involved not only to make motivate the customers to make transaction in the bank but a it also involved opening of new accounts, closing of 0 balance operating & -ive balance operating customers .in this this create the network of such types customers who are doing high high range of transaction transaction or  keeping the maximum balance in the bank for long time. The bench mark is to be decided 0f 80% of total customers for activation .means 80% customers must be active .they are doing the transaction 6 times in the months. It is also the activity of value build up to increase no. of transaction in the branch ( more than 6 times or 6 times in a month’s)There are separate records are to be maintain of such types customers. They are to be called time to time according to the need, by the bank. The projects aims at more details study of service for the current cu rrent account which is the bread & butter of the bank & also assist in the financial issue of the bank  The research seeks to understand the huge contribution of corporate sectors such as steel, jewellery, agriculture, service sectors for the contribution of current account of the bank.

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Industry/ Sector  Profile

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Chapter 2 2) An overview of banking services The Banking sector in India has always been one of the most preferred avenues of employment. In the current decade, this has emerged as a resurgent sector in the Indian economy. As per the McKinsey report ‘India Banking 2010’, the banking sector index has grown at a compounded annual rate of over 51 per cent since the year 2001, as compared to a 27 per cent growth in the market index during the same period. It is projected that the sector has the potential to account acco unt for over 7.7 per cent of GDP with over Rs.7,500 billion in market cap, and to provide over 1.5 million jobs. Today, banks have diversified their activities and are getting into new products and services that include opportunities in credit cards, consumer finance, wealth management, managemen t, life and general insurance, investment banking, mutual funds, pension fund regulation, stock broking services, custodian services, private equity, etc. Further, most of the leading Indian banks bank s are going global, setting up offices in foreign countries, by themselves or through their subsidiaries. The banking system in India is significantly different from that of other Asian nations because of the country’s unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. The country’s economic policy framework combines socialistic and capitalistic features with a heavy bias towards public sector investment. India has followed the path of growth-led g rowth-led exports rather than the “exported growth” of other Asian economies, with emphasis on self-reliance through import substitution. These features are reflected in the structure, size, and diversity of the country’s banking and financial sector. The banking system has had to serve the goals of  economic policies enunciated in successive five year development plans, particularly concerning equitable income distribution, balanced regional economic growth, and the reduction and elimination of private sector  monopolies in trade and industry industry and banking activities in the developed commer commercial cial centers (i.e., metro, urban, and a limited number of semi-urban centers).

The Indian banking system is financially stable and resilient to the shocks shoc ks that may arise due to higher no nonnperforming assets (NPAs) and the global economic crisis, according to a stress test done by the Reserve Bank of  India (RBI). Significantly, the RBI has the tenth largest gold reserves in the world after spending US$ 6.7 billion towards the purchase of 200 metric tonnes of gold from the International Monetary Fund (IMF) in November 2009. The purchase has cent increased the 6country's reserves from approximately 4 per to about per cent.share of gold holdings in its foreign exchange In the annual international ranking conducted by UK-based Brand Finance Plc, 20 Indian banks have been included in the Brand Finance® Global Banking 500. In fact, the State Bank of India (SBI) has become the first Indian bank to be ranked among the Top 50 banks in the world, capturing the 36th rank, as per the Brand Finance study. The brand value of SBI increased from US$ 1.5 billion in 2009 to US$ 4.6 billion in 2010. ICICI Bank also made it to the Top 100 list list with a brand value of US$ 2.2 billion. According to RBI's RBI's 'Quarterly 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September S eptember 2009', nationalised banks, as a group, accounted for 50.5 per cent of the aggregate deposits, while State Bank of India (SBI) and its associates accounted for 23.8 per cent. The share of other scheduled commercial banks, foreign banks and regional rural banks in aggregate deposits were 17.8 per cent, 5.6 per cent and 3.0 per cent, respectively.With respect to gross bank credit also, nationalised banks hold the highest share of 50.5 per cent in the total bank credit, with SBI and its associates at 23.7 per cent and other scheduled commercial banks at 17.8 per cent. Foreign banks and regional rural banks had a share of 5.5 per cent and 2.5 per cent respectively in the total bank credit. 1 1

 

2.1)Major Developments The Monetary Authority of Singapore (MAS) has provided qualified qua lified full banking (QFB) privileges to ICICI Bank for its branch operations in Singapore. Currently, only SBI had QFB privileges in country.The Indian operations of Standard Chartered reported a profit of above US$ 1 billion for the first time. The bank posted a profit before tax (PAT) of US$ 1.06 billion in the calendar year 2009, as compared to US$ 891 million in 2008.Punjab National Bank (PNB) plans to expand its international operations by foraying into Indonesia and South Africa. The bank is also planning to increase its share in the international business operations to 7 per  cent in the next three years. The State Bank of India (SBI) has posted a net profit of US$ 1.56 billion for the nine months ended December 2009, up 14.43 per cent from US$ 175.4 million posted in the nine months ended December 2008.

2.2)History of the banking sectors Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of  India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. Bengal. This was one of the three presidency banks, the other two Madras, all three of which were established under charters from the being the Bank of Bombay and the Bank of Madras, British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their  successors. The three banks merged in 1921 to form the the  Imperial Bank of India, India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank , established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank : A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which wh ich survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Simla. When the American Civil War  War stopped stopped the supply of cotton to Lancashire from the Confederate States States,, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. in India remained the exclusive domain of Europeans for next several decades until Subsequently, the beginning banking of the 20th century.

2.3) Major players in the banking sectors In India banking sectors is to be boomed because of few players .Top ten amongst them are State Bank of India  India   HDFC bank , bank ,Citibank ICICI Citibank ICICI Bank , Punjab National bank , UTI Bank , Hongkong & Shanghai Banking Corp.,  Corp.,   Kotak Mahindra Bank , Sundaram Bank , Oriental Bank of Commerce. These players are to be percipients of  the huge financial contributors.

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2.4) Government support & policy of RBI Bank is to be controlled by the ‘Bankers bank’ Reserve bank of India. Reserve bank frame the , policy make the rules & regulations which are to be applied on all the bank of India including commercial bank, private sectors, public sectors,etc RBI is the banker to banks. The relationship is established once the name of a bank is included in the Second Schedule to the Reserve Bank of India Act, 1934.Such bank, called a scheduled bank, is entitled to facilities of  refinance from RBI subject to fulfillment of the following conditions laid down in Section 42 (6) of the Act, as follows it must have paid-up capital and reserves of an aggregate value of not less than an amount specified from time to time; and it must satisfy RBI that its affairs are not being conducted in a manner detrimental to the interests of its depositors. The classification of commercial banks into scheduled and nonscheduled categories that was introduced at the time of establishment of RBI in 1935 has been b een extended during the last two or three decades to include state cooperative banks, primary urban cooperative banks. RBI is authorized to exclude the the name of any bank from tthe he Second Schedule if the bank, having been given suitable opportunity to increase the value of paid-up capital and improve deficiencies, goes into liquidation or  ceases to carry on banking activities. A system of local area banks announced by the Government in power until 1997 has not yet taken root. RBI has given in principle clearance to five applicants. Specialized development financial institutions (DFIs) were established to resolve market failures in developing economies and shortage of long-term investments. In 1955, Industrial Credit and Investment Corporation of  India (ICICI) was set up in the private sector with foreign equity participation This was followed in 1964 by Industrial Development Bank of India (IDBI) set up as a subsidiary of RBI. The same year saw the founding o of  f  the first mutual fund in the country, the Unit Trust of India (UTI). The three institutions that dominate the term-lending market in providing financial assistance to the corporate sector are IDBI, IFCI, and ICICI. The Government owns insurance companies, including Life Insurance Corporation of India (LIC) and General Insurance Corporation (GIC). Subsidiaries of GIC also provide substantial equity and loan assistance to the industrial sector, while UTI, though a mutual fund, conducts similar  operations. RBI also set up in April 1988 the Discount and Finance House of India Ltd.

The economic reforms undertaken I the last last 15 years have brought about a considerable considerable improvement in the health’s of banking sector in India .the banking sector is very important in India .The sector has made a marked improvement in the liberalization period. There has been extraordinary in the financially health’s of commercial bank with respect to capital capital adequacy, profitability, asset quality & risk management .deregulation has opened new door for banks to increase revenue by entering in to to banking ,investments ,depositories ,depositories services .   The limits for FDI in private bank has been b een increased from 49 %to 74%.In aaddition ddition the limits for foreign investments in private private sector is 49 %.Liberalizations %.Liberalizations & globalizations have created a more challenging in the banking sector as well as in the other segments of the financial financial sector such as ,mutual funds ,capital ,capital markets, ventures capitals. Now the new challenges faced by the sector would be gaining profitability, reinforcing, maintaining global standards, corporate governance, sharpening skills, risk management. Commercial coming withthe more and more vacancies, andlevel, the banking now has more jobs than anybanks other are sector. Rightupfrom branch level to the highest there is sector tremendous range of new opportunities available in the sector. Jobs in this sector can be both rewarding and enjoyable, as you get 1 1

 

opportunities to learn about business, interact with people and build up clientele. The same is the case with insurance, as it is the fastest growing industry under the financial sector. Both government and private players are currently offering a plenty of jobs in this sector. So, this is great news for you if you are thinking to go into the banking & insurance streams.

2.5) Importance of the banking services Indian banking regulatory act 1949 defines bank “a company which transacted the business of banking’’ Banking sectors belongs to the totally service oriented sectors. There isn’t any physical product existence in it .Bank is also giving different different types of services to their their customers. Some are Online banking , RTGS (real time gross settlement), Pay Order, Cheque book, DD, NEFT NEF T (national electronic fund transfer), Discounting of  bills. With the help of plastic money (ATM cum debit deb it card, Credit card & Forex card) & card service provider  Bank make it easy to use money at all over the world. The Importance of the ‘Banking service’& ‘value build up’  

2.5.1) Bank point of view. 1) Bank belongs to the service sectors .Its primary functi functions ons is to provide services to the customers. By providing maximum services to the customers bank is earning the maximum revenue because customers is purchasing that services from bank & bank is selling it at profit. 2) Value Build up is important for bank because bank wants to give maximum services to such a customers who are really valuable for the bank & also wants to avoid such types of customers cu stomers who are not useful for the bank. Value build up is done to motivate the customers to make the heavy transactions in the bank. Unless & until bank has enough money to operate bank can’t function well. Hence value build up is important for banking industry.

2.5.2) Customers point of view 1) Due to heavy load of o f business transaction every business man or employee can’t do all the transactions in cash .In this case he needs the great support of any financial institute He generally needs it for the following purpose 2) To deposited the money 3) To use the money at any time 4) To earn the financial support 5) To earn the heavy rates of return. 6) To reduce the risk of money 7) To receive the high range & satisfactory service. 8) To match the expected services &Actual received services. Hence banking services is important for customers 2) Value Build up is important for customers because with the heavy transaction he is continuously receiving very good financial offers from the bank .Means .Mean s shortly bank is ready to help financially to such types of  customers if he has enough fund in his accounts & actively operate the account(6 ttimes imes in a month, according to the rule of RBI) .

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Company & Product profile 1 1

 

Chapters 3 3) Company & product profile 3.1) HDFC bank Profile 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. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995

3.2)Businesss focus 3.2)Busines 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 b anking services for target retail and wholesale customer segments, and to achieve healthy h ealthy 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.

3.3)Capital structure

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The HDFC Group holds 23.63 % of  the Bank's equity and about 17.05 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4,33,078 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Bank 's Global Depository Receipts (GDRs) are listed on Luxembourg Stock  Exchange under ISIN No US40415F2002

3.4)Distribution 3.4)Distrib ution network  1 1

 

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 1,725 branches spread in 780 cities across India.All branches are linked on an online real-time basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers cu stomers are located as well as the need to build bu ild a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base. The Bank also has 4,393 4,39 3 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

3.5)Technology HDFC Bank operates in a highly h ighly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer  speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build b uild the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest finest services we offer. The Bank has prioritized it itss engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core b businesses. usinesses. In each of  its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share

3.6)Business focus

3.6.1)Wholesale 3.6.1)Wholes ale Banking Services The Bank's target market ranges large, businesses. blue-chip manufacturing companies the provides Indian corporate to of  small & mid-sized corporate andfrom agri-based For these customers, the in Bank a wide range commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and an d distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks .

3.6.2)Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products 1 1

 

are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of  retail loan products including Auto Loans, Loans Loa ns against marketable securities, Personal Loans and Loans for  Two-wheelers. It is also a leading provider of Depository De pository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2010, the bank had a total card base (debit and credit cards) of over 14 million. The Bank  is also one of the leading players in the “merchant acquiring” business with over 90,000 90,00 0 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader  in various net based B2C opportunities op portunities including a wide range of internet ban banking king services for Fixed Deposits, Loans, Bill Payments, etc.

3.7)Credit Rating

The Bank has its deposit programs rated by b y two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programmed 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) programmed ‘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 dep osit programmed, with the outlook on the rating as ‘stable’. This rating indicates ‘highest credit quality where ’protection factors are very high The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds Bon ds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of ‘CARE AAA’ for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating ‘AAA (ind)’ with the outlook on the rating as ‘stable’. CARE has also assigned ‘CARE AAA [Triple A]’ for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating ‘AAA / Stable’ for the Bank's Perpetual Debt Deb t programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agen agency cy for those instruments.

3.8)Corporate Governance Rating The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its ‘balanced value creation and corporate governance practices’ in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the ban bank's k's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest. 1 1

 

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit programme 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) programme ‘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 ‘t AAA ( ind )’ rating to the bank's deposit programme, with theare outlook on the rating as "stable". This rating indicates ‘highest credit quality’ where ‘protection factors 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.

3.9) Company profile There are many product of HDFC bank such as saving accounts, current account, fixed deposited, recurring deposited, demat account, safe deposited, deposited, loans, credit credit card, debit card, prepaid card, investment & insurance etc.But the research is totally focused on current account acco unt .which is used for the purpose p urpose of business transaction . HDFC bank is providing total 10 types of current account.

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.

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3.9.1) Plus current account In today's fast-paced fast-paced world, business regularly regularly requires to receive and send funds to various cities in the country. HDFC Bank Plus Current Current Account gives the power of inter-city inter-city banking with a single account and access to more than 780 cities. From special cheques that get treated at par with local ones in any ccity ity where we have a 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, our  priority services have become the benchmark for banking ba nking efficiency. Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000. Facility given by the plus current account to the customers

1) Customers are getting the free account to account fund transferred between HDFC bank. 2) Customers are getting free payments & collection through RTGS. 3) Customers Customers are getting free payments payments & collection through NEFT. 4) Customers are getting 50 free DD from HDFC bank per months. 5) Customers are getting 50 free pay orders from HDFC bank per months. months. 6) Customers are getting convenience to withdraw & deposit cash at all HDFC branches. 7) Customers Customers are getting the free ,300 at par cheque book . 8) Customers Customers are getting the insta alerts at mobile of their accounts status & ATMs. ATMs. 9) Customers are getting cash pick up & cheque pick up facility. facility. 10) Customers Customers are getting getting free phone banking net banking.

3.9.2) Trade current account

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In today's changing business requirements, Customers need to transfer funds across cities and time is of the essence. HDFC Bank Trade Current Account gives the power of inter-city banking with a single account. From special cheques that get treated at par with local ones in any city where we have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 5 50 0 lakhs per month, our priority services have become the benchmark for banking efficiency. Trade Current Account requires you to maintain an average quarterly balance of Rs. 40,000. Facility given by the Trade current account to the customers

1) Customers are getting the free account to account fund transferred between HDFC bank. 2) Customers Customers are getting free payments payments & collection through RTGS 3) Customers are getting 30 free DD from HDFC bank per months. 4) Customers are getting 30 free pay orders from HDFC bank per months. months. 5) Customers Customers are getting convenience to withdraw & deposits cash at all HDFC branches 6) Customers Customers are getting the free ,200 at par cheque book . 7) Customers Customers are getting getting the insta alerts alerts at mobile mobile of their their accounts status & ATMs ATMs 8) Customers are getting cash pick up & cheque pick up facility. facility. 9) Customers are getting free phone banking net banking.

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3.9.3) Premier current account Customers can avail benefits of inter-city banking account with Premium P remium Current Account, that requires an average quarterly balance of only Rs. 25,000, 25,00 0, 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 your account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM. Facility given by the Premier current account to the customers

1) Customers are getting the free account to account fund transferred between HDFC bank. 2) Customers Customers are getting free payments payments & collection through RTGS 3) Customers Customers are getting free payments payments & collection through NEFT 4) Customers are getting unlimited free DD from HDFC bank per months above Rs 1,00,000 5) Customers Customers are getting getting unlimited unlimited free pay orders from from HDFC HDFC bank per months months above Rs 1,00,000 6) Customers are getting convenience to withdraw & deposite cash at all HDFC branches 7) Customers Customers are getting the free ,100 at par cheque book . 8) Customers Customers are getting getting the insta alerts alerts at mobile mobile of their their accounts status & ATMs ATMs 9) Customers are getting cash pick up & cheque pick up facility. facility. 10) Customers Customers are getting getting free phone banking net banking.

3.9.4) Regular current account

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A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular  Current Account, customers can access account anytime, anywhere, pay using pay payable able at par cheques or  deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in your account. Regular Current Account Accou nt requires you to maintain an average quarterly balance of only Rs. 10,000. Facility given by the Regular current account to the customers

1) Customers are getting the free account to account fund transferred between HDFC bank. 2) Customers are getting free collection through RTGS 3) Customers are getting unlimited free DD from HDFC bank per months above Rs 1,00,000 4) Customers Customers are getting getting unlimited unlimited free pay orders from from HDFC HDFC bank per months months above Rs 1,00,000 5) Customers are getting convenience to withdraw & deposit cash at all HDFC branches 6) Customers Customers are getting getting the at par cheque book . 7) Customers Customers are getting the insta alerts at mobile of their accounts status & ATMs 8) Customers are getting cash pick up & cheque pick up facility. facility. 9) Customers Customers are getting getting free phone banking net banking.

3.9.5) RFC domestic account This account is useful when customers has to manage foreign currency efficiently. customers can choose to set up account either in US US Dollar, Great Britain Pound or Euro To accumulated foreign currency from travelling abroad frequently, Received gifts from relatives in foreign currency, earned it by any other means as approved by the Reserve Bank of India

3.9.6) Flexi current account 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 Tr Transaction ansaction limits are a m multiple ultiple of the balance you 1 1

 

maintain in Current Account. So, during during peak seasons, get the benefit of higher transaction transaction limits due to the higher average balances maintained in your account. What’s more, during lean seasons, need not bother about maintaining huge balances to enjoy high transaction limits, which you anyway may not need. Flexi Current Account requires you to maintain a minimum Average Av erage Monthly Balance (AMB) of just Rs. 75,000. Facility given by the Flexi current account to the customers

1) Intercity Payments, Collections & Funds Transfer as well as Cash Deposit at home location branches based on the AMB maintained.   2) They are getting free Real Time Gross Settlement (RTGS) available across 23,000 Bank Branches & payments and collections through RTGS are completely free. 3) They can at 0 cost ,Make and receive remittances to to & from vendors & customers across 20,000 + Bank  Branches of more than 50 Banks through Net Banking using National Electronic Fund Transfer (NEFT). 4) They are getting free Free, 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank Branch 5) They are getting Convenience to withdraw and deposit cash at all our branches.

6) Insta Alert service - receive updates on your account as and when the select transaction happens – all this without visiting the Branch or ATM.

7) They can Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps .

3.9.7) Apex current account 1 1

 

With the Apex current account, take business to a new high. On maintaining an average quarterly balance of  Rs. 10 lakhs, this account makes makes sure make the most of every business opportunities coming coming your way. Unlimited, free, anywhere Banking experience at the APEX is reserved.  Facility given by the Apex current current account to the customers

1) Customers Customers are getting Maximum transactional transactional benefits with with faster mobilisation of funds 2) Customers Customers have to maintain maintain Average quarterly quarterly balance requirement requirement of Rs. 10,00,000/3) Customers Customers can Access to more than 1,725 branches 4) Customers can get Huge cost savings in inter-city inter-city transactions transactions for payable-at-par cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order  5) Customers Customers can get Faster collection of outstation cheques 6) Customers Customers can get Free Intercity Cheque Collection & Payments within within HDFC Bank Network  7) Customers Customers

can get Free Account to Account funds transfer between HDFC Bank accounts.

8) Customers Customers can get Free payment and collection through RTGS 9) Customers Customers can get Free payment payment and collection using using NEFT (through NetBanking) 10) Customers Customers can get Free Demand Drafts which can be issued issued from any HDFC Bank branch 11) Customers Customers can get Free Pay Orders which can be issued from from any HDFC Bank branch 12) Customers

can get Convenience to to withdraw withdraw and deposit cash at all our branches*

13) Customers Customers can get Free Cash Deposit upto Rs. 100 lacs per month across all home branches 14) Customers can get Choice of local / Payable Payable at Par Cheques. 500 leaves free per month 15) Customers Customers are getting getting InstaAlert service and receive updates on account as and when the select transaction happens 16) The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency for this account holders . 17) can and Enjoy facilities details, facilities like 24-hour Phone Banking, Net cheque Bankingorand Mobile that helps check  yourThey balance transaction find out the status of your stop che cheque queBanking payment

3.9.8) Max current account Maximum benefits and minimum hassles for with Max Current Account! With a Rs. 5 lakhs average quarterly balance requirement, Features like maximum free transaction limits including other beneficial features on this current account truly enhances your business potential to the Maximum.

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Facility given by the max current account to the customers

1) Customers Customers are getting Maximum transactional transactional benefits benefits with with faster faster mobilisation of funds 2) Customers Customers are suppose to maintain maintain Average quarterly balance requirement requirement of Rs. 5,00,000/3) Customers Customers can access to more more than 1,725 branches 4) Customers are the huge cost savings in inter-city inter-city transactions transactions for payable-at-par cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order  5) Customers are getting the Faster collection of outstation cheques 6) Customers are also getting Free Account to to Account funds transfer between HDFC Bank accounts 7)Bank is giving Customers Customers free payment payment and collection through RTGS 8) Customers Customers has the free free payment and collection using using NEFT (t (through hrough NetBanking) 9) Customers has the free Demand Drafts which can be issued from any HDFC Bank branch Free Pay Orders which can be issued from any HDFC Bank branch 10) Customers has the free anywhere collection & payment (clearing) upto upto Rs. 5 Crore Crore per month within HDFC Bank branch network. 11) Customers are also getting getting the facility of Convenience to withdraw withdraw and deposit cash at all our branches 12) The account holders get Free cash deposit upto Rs. 50 Lakh per month across all home branches (subject to a maximum of 50 transactions per month and a per day limit of Rs.1,00,00 Rs.1,00,000/0/- on cash deposit at a non home branch) 13) Customers Customers

has the Choice of local / Payable at Par cheques. 500 leaves free per month

14) Customers are getting the Insta Alert service and receive updates on your account as and when the select transaction happens 15)The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency for this account holders. 16) Customer can Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking.

3.9.9) Merchant advantage current account This Current Account, designed to drastically bring down the costs incurred and time taken to do various banking transactions. Customers can enjoy a free limit. For cash ca sh deposit that is four times the amount swiped at HDFC Bank's EDC machine linked to your HDFC Bank Current Account. Facility given by the Merchant current account to the customers 1 1

 

1) customers can enjoy a free monthly Cash Deposit limit at home branch location that is four times the amount swiped at the HDFC Bank EDC Machine linked to the Merchant Advantage Current Account 2) Customers can pay vendors and suppliers across the country using multiple remittance options such as Local/At Par cheques, Demand Drafts/Pay Orders/RTGS (Real Time Gross Settlement) thereby increasing convenience and reducing costs 3)Customers can enjoy 24x7 access to your account through Net Banking, Phone Banking, ATMs and Mobile Banking 4) Customers can enjoy special privileges with Doorstep Banking services such as cash and cheque chequ e pick-up and cash delivery at nominal rates 5) Customers can get a free Regular Reg ular Debit Card, which comes with a host of privileges and benefits 6) Customers can make hassle-free utility bill payments with BillPay, which is absolutely free for Merchant Advantage Current Account holders 7) Customers can get free monthly statement of accounts  

3.9.10)Merchant plus current account An account that gives you much more than a regular Current Account. Customers can enjoy a free limit for  cash deposit that is four times the amount swiped at HDFC Bank’s EDC machine linked to this Account. Facility given by the Merchant current account to the customers 1 1

 

1)Customers can Enjoy a free monthly Cash Deposit limit limit home branch location that is four times the amount swiped at the HDFC Bank EDC Machine linked to the Merchant Advantage Plus Current Account 2) customers can Get free Regular and Business Debit Cards in the Merchant Advantage Plus Current Account 3) customers can Pay vendors and suppliers across the country using multiple multiple remittance options such as Local/At Par cheques, Demand Drafts/Pay Orders/RTGS (Real Time Gross Settlement) thereby increasing convenience and reducing costs 4) Customers can Enjoy 24x7 access to your account through Net Banking, Phone Banking, ATMs and Mobile Banking 5) customers can Enjoy special privileges with Doorstep Banking services such as cash and cheque chequ e pick-up and cash delivery at nominal rates 6) Customers can Get special offers on the Business Debit Card that comes with a host of privileges and benefits 7)Customers can Make hassle-free utility bill payments with Bill Pay, which is absolutely free for Merchant Advantage Current Account holders 8) Customers can get Free monthly monthly statement of accounts 9) customers can get Free balances ba lances and transaction alerts on your mobile phone and emails with Insta Alert.

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Literature survey/Review

Chapter 4

4.1) RETAIL BANKING: THE NEW BUZZWORD Progress has a new address and that is India. The economic growth coupled with the robust gains in stock  markets has brought with it prosperity and wealth in the hands of Indians. The number of millionaires in India 1 1

 

has crossed the 100,000-mark. Salaries in India have h ave witnessed a 13- 14 p per er cent growth, higher than that seen in China and other South East Asian countries. “This means there is more money in the hands of the people that needs to be managed well,” says Pralay Mondal, country head, retails assets and credit cards, HDFC Bank. This increase in wealth is fuelling the growth of the retail banking sector. The boom in the financial services market has led to the creation of vast armies of sales persons called direct sales agents (DSAs) for marketing the varied products. Another strategy used by some banks is to tap into their  own large base of depositors who are offered multiple products depending on their nee needs.This ds.This helps to lower  acquisition costs, lower default rates and higher deposits being held in banks by the customer. Banks Ba nks are now targeting the rural consumers too. Banks are also offering micro-finance in order to fulfill their social obligations. If retail banking is a buzzword in India today, the reason is not far to see. After all, margins in retail banking are higher than corporate banking and the growth too is faster. Several banks ba nks that were not very active in retail banking are now eyeing this sector. Just the person retail retail bankers had been looking for banking sector has tremendous potential ffor or growth. According to the PwC report, total domestic credit in India was around $400 billion compared to China’s $ 2.8 trillion. But the new banks will have to compete with existing banks including nationalized ones, private sector  banks, foreign banks, smaller institutions including co-operative banks and in some areas with non-banking finance companies too. The Indian banking system has come a long way since 1786 when the first bank was set up in India. In the preIndependence days, initially banks were set up as private institutions with mostly European shareholders. Postindependence, most of the banks were nationalized in 1969. In the 1990s, following economic reforms, the banking sector was also liberalised. The entry of private p rivate banks and increasing competition resulted in nationalised banks becoming more efficient and turning aggressive in the market place. The introduction of automated teller machines (ATMs), phone banking and internet banking by most banks has bid adieu to the serpentine queues seen earlier.

4.2) OLD AND NEW PLAYERS

State Bank of India (SBI), a nationalized n ationalized bank, is the largest bank in the country. The other major players are Allahabad Bank, Punjab National Bank, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, 1 1

 

and Indian Bank, institutions that were set up in the early 1900s as private banks b but ut were nationalised subsequently. Leading private sector banks like ICICI Bank and HDFC Bank leveraged technology to provide more efficient services, thus stealing a march over the older, nationalised banks. There exist many smaller  banks such as co-operative banks that operate at the local level. Citibank and Standard Chartered Bank are among the biggest foreign banks in India; others include HSBC and Deutsche Bank. Other than the pure banking operations, many foreign banks also have other interests. For instance, Citi Financial is the largest NBFC in the country, cou ntry, with a network of 450 branches in 180 cities while French Bank  Societe Generale, apart from banking activities, also has interests in a BPO SG Global Solution Centre in Bangalore and a car fleet management company ALD which has a presence in Mumbai, Delhi, Bangalore and Hyderabad. Eric Dhoste, chief executive and group country head, India, Societe Generale, says that the group employs more than 1,000 employees in India across all activities. There are many NBFCs in India that are a re hoping to metamorphose into banks, just as Kotak Mahindra Finance, formerly an NBFC, converted into Kotak  Bank. GE Money has used the partnership route to grow its business in India. It is number two in the credit cards business and serves 3.3 million card customers with joint venture v enture partner, State Bank of India in technology, markets and funds. A fast developing country like India also needs good infrastructure to sustain economic growth, leading to opportunities in the areas of infrastructure / project finance. Incidentally, the government gov ernment too is keen to ensure that credit growth moves into the productive side, that is, industry and the rural economy. Thanks to the RBI, the Indian banking sector remains on track. When inflation threatened to derail the growth story, it enforced strict norms that helped to rein in inflation. The level of non performing assets (NPA) in Indian banks too is in keeping with internationally acceptable levels and is lower than in some South East Asian countries. co untries. In anticipation of the growth in the coming years, existing players in India are drawing up major expansion plans. The Tatas are said to have lined up a massive investment of over a billion dollars over the next three to four years through a new company, Tata Capital. Anil Ambani wants Reliance Capital, on onee of the fastest growing financial sector companies, to be among the top three financial services companies, including banks, in the country. It plans to increase its employee strength from current 11,000 11,00 0 to 50,000 over the next two years. Due to regulatory restrictions, foreign banks can only grow organically today.

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Objective & Scope of  research

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Chapter 5 Objective of the research

5.1) Objective1) To study the customer types types for current current account of HDFC bank in in Pune city 2) To identify identify the different different services given to the customer according to their types of  HDFC bank in Pune city 3) To examine the CRM maintain maintain by HDFC bank in Pune city 4) To study the efforts taken by the HDFC bank for better value build up in Pune city 5) To notice the HDFC bank customer satisfaction satisfaction in Pune city

5.2) Scope of the research

The title of the the research is “to study the services given given to the current current account by HDFC bank in in Pune city ’’.In HDFC bank there are Preferred customer customer ,classic customers, & Imperria types of customers .According to customers types the services services given to the the each customers are different . HDFC bank also follows follows the CRM techniques to increase their sales. Through the research it will come to know that one of the major strategies that are to be followed by the bank is aggressive marketing.

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Research methodology

Chapter 6

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Research design 6.1) Types of research-This research is exploratory of formulative formulative kinds of research. Because this research is providing opportunity for considering of different kinds of services given by the HDFC bank in pune city.

6.2) Sampling design6.2.1) Universe under study-This is finite types of universe study . Because sampling is to be done on the basis of data base.

6.2.2) Sample frame-HDFC bank customers customers for current account or current account holders of HDFC bank  6.2.3) sample unit-Sampling unit for this research research are all the inactive customers of current account who are are doing transaction less than 6 times in a month’s.

6.2.4) Techniques of sampling- For these research techniques of sampling is used that is ‘cluster  sampling’ because sampling is to be done on 2 stages I)Selection of all the customer who are doing do ing the transaction More than 6 times(active ) or less than 6 times in a months(inactive) in HDFC bank ,Pune branch branch II)Selection among those who are doing transaction less than 6 ttimes imes in a months

6.2.5) sample size- 100 6.3) Data collection method Secondary data was to be collected by the direct interview of customer or by using telecommunication (telecalling)

6.4) Limitation1) Sample for this research is only inactive customers . 2) Sample for this research is only current account holders. 3) Out of list of 199customers database only 100 customers are to be selected as sample. 4) The methods of collections of data are telephonic way .hence ob observations servations are not to be maintained. Sample did not include active customers 5) In this research customers are not ready to answer an swer hence questionnaire are to be filled as feedback form.

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Data analysis & Data interpretation

Chapters 7 The questionnaire was to be asked to the 100 samples & the data regarding their services offered are given as below.

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Following is the questionnaire. ---------------------------------------------------------------------------------------------------------------

1) Which types of customer you are for bank? 1) Preferred

2) classic

3) Imperia

4) any other 

2) Are you sure that, you are getting the benefit of special services according to your customer types? 1) Yes

2) No

3) Please rate the following services according to your heavy use given by the HDFC bank  to your account. 1) RTGS

1 2 3 4 5

3) D.D.

1 2

5) ONLINE BANKING

1 2 3 4 5

2) FUND TRANSFER

3 4 5 4) PAY ORDER 6) NEFT

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

(5-Most time used, 4-more time used, 3-much time used, 2-very few time used, 1-No used) 4) Do you wait at counter in the bank for depositin depositing g or withdrawing cash or cheque? 1) Yes

2) No

(For Depositing)

1) Yes

2) No

(For Withdrawing)

5) Are you agreeing that your personal banker meet you ones in a month just as personal relation & solve your banking problem? 1) Strongly agree 2) Agree 3) Strongly disagree 4) Disagree 5) neither agrees nor disagrees

6) Do you maintain your average quarterly balance in your bank account? 1) Yes

2) NO

7) If not, what action should be taken by the bank? 1) Call from bank 2) Directly meet of personal banker  3) Facility for collection of money 1 1

 

4) Any other please specify_________________________________ 

8) What do you think about the services of HDFC bank? 1) Good

2) Better

3) Best

1) Bad

2) Worse

3) Worst

1) Poor

2) Much poor 3) Most poor 

9) Would you definitely like to maintain the long term relation with HDFC bank? 1) Probably yes 2) Probably no 3) Definitely yes 4) Definitely no

1) Which types of customer you are for bank?

1) Preferred

2) classic

3) Imperia

4) any other 

Cust Cu stom omer erss ty type pess

Fr Freq eque uenc ncy y 1 1

 

Preferred

40

Classic

38

Imperria

1

Any other

21

 Interpretations Here we can find that out Only one customer is the imperia type type of customer.40 customer customer are preferred types of customer of bank &38 are the classic customer of the bank out of total survey. The remaining 21 are regular  customer of the bank.

2) Are you sure that, you are getting the benefit of special services according to your customer types?

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1) Yes

2) No

Reply of the customer

Frequency

Yes

89

No

11

Interpretation Bank gave special services to the each customers according to their types .hen .hence ce amongst the survey 89 are customers are who who are saying that ,yes that they are getting the special benefits according to their customers types

3) Please rate the following services according to your heavy use given by the HDFC bank to your account.

1) RTGS

1 2 3 4 5

2) FUND TRANSFER

1 2 3 4 5 1 1

 

3) D.D.

1 2 3 4 5

4) PAY ORDER

1 2 3 4 5

5) ONLINE BANKING

1 2 3 4 5

6) NEFT

1 2 3 4 5

(5-Most time used, 4-more time used, 3-much time used, 2-very few time used, 1-No used)

Rating ing fo forr RTG TGS S

Freq eque uen ncy

1

3

2

11

3

26

4

21

5

37

Interpretations RTGS stands for Real times gross settlement, it is used when customers wants payments to third party at same day at any location in India .There are 37 % used this services heavily & 3% not used this kinds of services.

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Fund transfer Rating

Frequency

1

4

2

3

1 1

 

3

9

4

31

5

52

Interpretations Fund transfer, this facility is used when customer wants to payments to same bank account holder in which he has already his account. There are 52% customers are using such kinds of services & 4 % are not using this services

DD

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 Interpretation DD stands for Demand draft .when customer wants to payments at any where payable, he used the DD facility. 43% customer are using this facility very heavily But 8 % are not using this facility.

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Pay order Rating for Pay order

Frequency

1

3

2

2

3

13

4

31

5

37

 Interpretations Pay order is also also used to payment the party but it is used at local level. There are 37 % customer customer are using this facility widely but 3 % are not using this facility.

Online banking 1 1

 

Rat atiing for on onli lin ne ban anki kin ng

Freq Freque uen ncy

1

5

2

2

3

13

4

33

5

40

 Interpretations Online banking refers to the make the all the transaction online, transferred of money, make the payments, deposited the money etc. 40 % customers are using this kinds of facility but 55 are not using

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NEFT (National Electronic Fund Transferred) Rating for NEFT

Frequency

1

4

2

1

3

10

4

27

5

46

 Interpretations NEFT stands for national electrical fund transferred, your fund is to be b e transferred by the electrical mode.46% customer are using this facility. 4) Do you wait at counter in the bank for depositing or withdrawing cash or cheese?

1) Yes

2) No

(For Depositing) 1 1

 

Reply of  customers for depositings

Frequency

Yes

57

No

43

Interpretations HDFC PUNE,AUNDH branch lay out is very small & there are 607 customer ,bankers gave special services to preferred ,classic customer.57 customer.57 % customer are not suppose tto o wait for depositing the money at counter but remaining 43 % have to to wait at counter.

1) Yes

2) No

(For Withdrawing)

Reply for withdrawin withdrawing g of money

Frequency 1 1

 

Yes

26

No

74

 Interpretations Here also the 74% customer are not suppose to wait at counter for withdrawing withdrawing the money but 26 % are suppose to wait

5) Are you agreeing that your personal banker meet you ones in a month just as personal relation & solve your banking problem?

1) Strongly agree 2) Agree 3) Strongly disagree 4) Disagree 5) neither agrees nor disagrees 1 1

 

Resp Re spon onse se of the the cu cust stom omer er fo forr pers person onal al meet meetss

Freq Freque uenc ncy y

Strongly agree

67

Agree

18

Strongly disagree

13

Disagree

2

Neither agree nor disagree

0

 

Interpretations In this case 67 % of the customer are strongly agree that their personal bankers meet them once in a month but 18 % customers are not agree about that . 1 1

 

6) Do you maintain your average quarterly balance in your bank account?

1) Yes

2) NO Resspo Re pons nsee for AQB AQB mai aint nten enan ance cess

Fr Freq eque uenc ncy y

Yes No

83 17 1 1

 

Interpretations AQB stands for average quietly balance .83 .8 3 % maintain their balance but 1 17 7 % are not maintain their balance.

7) if not, what action should be taken by the bank?

1) Call from bank

2) Directly meet of personal banker 

3) Facility for collection of money 4) Any other please specify_________________________________  1 1

 

Actions for non maintenance of AQB

Frequency

Call from bank

59

Directly meet of personal bankers

41

Facility for collection of 

0

money Any An y othe otherr ple pleas asee spec specif ify y

0

Interpretations If they are not maintaining the AQB then, 59 % getting the call from the bank, personal bankers directly meet the 41 % of the customers.

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8) What do you think about the services of HDFC bank?

1) Good

2) Better

3) Best

1) Bad

2) Worse

3) Worst

1) Poor

2) Much poor 3) Most poor  Response for services of bank

Frequency

Bad Best

3 24 1 1

 

Better

44

Good

24

Worse

4

Worst

1

Interpretations 44% of the customer is saying that HDFC bank is giving the better services. Only 4%, 1%, 3% are saying that services are worse, worst, bad respectively.

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9) Would you definitely like to maintain the long term relation with HDFC bank?

1) Probably yes 2) Probably no 3) Definitely yes 4) definitely no Desi De sirre for lon ong g ter erm m relat elatiion onsshi hip p with with ba bank nk

Fr Freq eque uenc ncy y

Probably yes

21

Probably no

8

Definitely yes

71

Definitely no

0 1 1

 

Interpretations 71 % of the customer is satisfied customer .they wants to maintain the long term relationship with HDFC bank  but 21 % of the customer are not happy about that & 8% are saying that are not interested in that .

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Observation & Finding

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Chapters 8 Observation & finding 1) Less no. of counter for depositing & withdrawing the cash .HDFC PUNE branch is a no.1 branch in all over  the Maharashtra .having 100 cores of balance sheets. But it has only 3 counters of for receiving & payments of  Money. So it is finding that customers are not convenient co nvenient with these counters. They feel Congested in the bank.   2) HDFC AUNDH, PUNE branch has very small layout .it need to expand. 3) In PUNE city only 1 ATM is there but b ut it is find according to customers need it need more ATMs machine. 4) In HDFC AUNDH, PUNE branch there are only 5 computers, at where the need of 4 computers more, hence it is find that employee are not convenient with this.

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5) There is more focus on customer relationship management. Personal bankers & cross sales team are generating more & more sales from this. 6) One of the major sales promotion schemes is to be employee by the bank is ‘Innovative Marketing’.

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Conclusion

Chapters 9

 

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Conclusion 1) ICICI bank, Axis bank, State bank ba nk of Hyderabad, IDBI bank are some closest competitors to the IDBI bank. HDFC bank is in great competition of them in PUNE city 2) HDFC HDFC bank is having customers customers types types & according to types bank is providing them services services 3) The services to the different types of current account are different which is suitable to PUNE city 4) PUNE city is the big trading centers where steel, gold, grains, are to be sold in a large extents. Hence to get better services businessman, professional person agree businessmen choose HDFC bank for banking services. 5) HDFC bank is following maximum rules & regulations of RBIwhich are to be implemented in regular  works.

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Suggestions & Recommendations

Chapters 10 Suggestion & recommendations to the HDFC PUNE, AUNDH branch ------------------------------------------------------------------------------------------

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  1) HDFC PUNE branch needs to increase the no. of counter for depositing & Withdrawing the cash 2) HDFC PUNE, AUNDH branch needs to expand the layout of branch 3) HDFC AUNDH branch needs to install at least 3 ATMs in PUNE city (Including MIDC area) 4) many times lobby is not keep clean. We can tell to the customer ab about out that through security guard. 5)) HDFC AUNDH PUNE branch needs to increase the number of computer in the branch 6) Branch has no’s of preferred customer so we need separate employee for giving them the committed services.

Bibliography

1) Information regarding HDFC bank is to be taken from www.hdfcbank.com  www.hdfcbank.com  2) Information regarding govt. policy is to be taken from www. rbi.org.in Others materials

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a) The project of ‘INDIA BANKING PROJECT 2010’ by McKinney &company b) The project of ‘The Indian Banking sectors, on road to progress’ by G.H.Deolakar(managing director of state bank of India)

ANNEXURE

Sample questionnaire

1) Which types of customer you are for bank?

1) Preferred

2) classic

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3) Imperia

4) any other 

2) Are you sure that, you are getting the benefit of special services according to your customer types?

1) Yes

2) No

3) Please rate the following services according to your heavy use given by the HDFC bank to your account.

1) RTGS

1 2 3 4 5

2) FUND TRANSFER

1 2 3 4 5

3) D.D.

1 2 3 4 5

4) PAY ORDER

1 2 3 4 5

5) ONLINE BANKING

1 2 3 4 5

6) NEFT

1 2 3 4 5

(5-Most time used, 4-more time used, 3-much time used, 2-very few time used, 1-No used) 4) Do you wait at counter in the bank for depositing or withdrawing cash or cheque?

1) Yes

2) No

(For Depositing)

1) Yes

2) No

(For Withdrawing)

5) Are you agreeing that your personal banker meet you ones in a month just as personal relation & solve your banking problem?

1) Strongly agree 2) Agree 3) Strongly disagree 4) Disagree 5) Neither agrees nor disagrees 6) Do you maintain your average quarterly balance in your bank account?

1) Yes

2) NO

7) If not, what action should be taken by the bank?

1) Call from bank

2) Directly meet of personal banker 3) Facility for collection of money

4) Any other please specify_________________________________  8) What do you think about the services of HDFC bank?

1) Good

2) Better

3) Best

1) Bad

2) Worse

3) Worst

1) Poor

2) Much poor 3) Most poor 

9) Would you definitely like to maintain the long term relation with HDFC bank?

1) Probably yes 2) Probably no 3) Definitely yes 4) Definitely no

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Glossary of technical words

1) Preferred customers –Customers who are maintaining the AQB of 5,00,000 2) Classic customers-Customers who are maintaining 1,00,000 the AQB & having family saving account 3) Imperria customers –Customers who are maintaining 10,00,000 AQB 4) Value builds up-Major balance in account opening, & 6 transactions in months 5) AQB- Average quarterly balance maintain by the account holders

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