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Project Report On HDFC Bank
Project Report On HDFC Bank
Project Report On HDFC Bank
At HDFC Bank, I was assigned with the topic as “Opening Savings Accounts by Meeting
Customers” for my project work. I joined the company as a Sales Executive. The selection of the
topic was to know how the company generates business through them.
Sales Executives are those sources of a company who have their own relations and personal
contacts among common public that they use to generate business through. Company has certain
criteria to recruit these Sales Executives. The steps are as follows.
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1.2 REASON FOR SELECTION OF THIS TOPIC:
The financial sector is one of the booming and increasing sectors in India. The Sales Executives
are one of the most powerful, efficient and effective channel through which the company sales its
various types of financial products. It is really difficult to convince customers and sell a single
product but since these executives have their own personal contacts which make the entire task
easier to sell a product. Whereas in my entire project work I found my interest in working in a
team, dealing with customers and finally convincing them to open an account with the bank.
The ultimate purpose of giving me this topic was to know about the customer’s perceptions
about the different products of the bank, how these products can attract them and how the
company can generate maximum profit by convincing them through sales executives.
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CHAPTER 2-ORGANIZATION PROFILE
2. COMPANY HISTORY
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.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
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 to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
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 based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.
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CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is
Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about
17.6% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
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.
DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1229 branches spread over 444 cities across India. All branches are linked on an online real-time
basis. Customers in over 120 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 centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has
a strong and active member base.
The Bank also has a network of about over 2526 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.
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MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was
a Deputy Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and
before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience
in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise
of the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly 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 the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients always get the finest
services we offer.
The Bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. 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.
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
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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.
RATING
I. Credit Rating
The Bank has its deposit programs 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 "tAAA ( ind )" rating to the Bank's deposit programme, 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 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 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 agency for
those instruments.
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 bank's capability with respect to wealth creation for all its stakeholders while adopting
sound corporate governance practices is the highest.
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2.2 PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises.
For individuals, the company has a range accounts, investment, and pension scheme,
different types of loans and cards that assist the customers. The customers can choose the
suitable one from a range of products which will suit their life-stage and needs.
For organizations the company has a host of customized solutions that range from
Funded services, Non-funded services, Value addition services, Mutual fund etc. These
affordable plans apart from providing long term value to the employees help in enhancing
goodwill of the company.
The products of the company are categorized into various sections which are as follows:
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2.3 PRODUCTS AND SERVICES AT A GLANCE
1. PERSONAL BANKING
- SavingsMax Account
- No Frills Account
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- Reimbursement Current Account
- Sweep-in Account
- Private Banking
B. Loans
- Personal Loans
- Home Loans
- Express Loans
- Customer Center
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C. Investments & Insurance
- Mutual Funds
- Insurance
- Bonds
- Financial Planning
- Knowledge Centre
D. Forex Services
- Trade Finance
- Travelers’ Cheques
- Cash To Master
- ForexPlus Card
E. Payment Services
- Net Safe
- Prepaid Refill
- Bill Pay
- Direct Pay
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- E-Monies Electronic Funds Transfer
- One View
- Insta Alerts
- Mobile Banking
- ATM
- Phone Banking
- Branch Network
G. Cards
- Compare Cards
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H. Get More from Your Card
- My Rewards
- Insta Wonderz
- Add-On Cards
- Easy EMI
- Net safe
- Smart Pay
- Secure Plus
- Debit Cards
- Prepaid Cards
- Kisan Card
I. Customer Centre
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2. Wholesale Banking
A. Corporate
Funded Services
Internet Banking
Funded Services
Non-Funded Services
Specialized Services
Internet Banking
Banks
Financial Institutions
Mutual Funds
Stock Brokers
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2.3. MILESTONES IN THE HISTORY
HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, they are proud to say that they are well on our way towards that
goal.
It is extremely gratifying that their efforts towards providing customer convenience have been
appreciated both nationally and internationally.
2007
2006
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2005
2004
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2003
2002
2001
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank - India
Hong Kong-based Finance Asia magazine "Best Domestic Commercial Bank -
India
Euromoney magazine "Best Bank in India
Forbes Global Named in The 300 Best Small
Companies one of the "20 for 2001" best
FE-E&Y Best Banks small companies
The Economic Times Awards for Corporate Excellence as the
Emerging Company of the Year
2000
Hong Kong-based Finance Asia magazine Best Domestic Commercial Bank - India
Hong Kong-based Finance Asia magazine "Best Domestic Commercial Bank -
India
Euromoney magazine Best Domestic Bank
Business India " India 's Best Bank"
Forbes Global Named in The 300 Best Small
Companies one of the "20 for 2001" best
FE-E&Y Best Banks small companies
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2.4. MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29
The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and
approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion
Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange
ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab.
The combined entity would have a nationwide network of 1,148 branches (the largest amongst
private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of
around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500
billion.
Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, “We were
amongst the first to get a banking license, the first to do a merger in the private sector with Times
Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector
banking space in India. HDFC Bank was looking for an appropriate merger opportunity that
would add scale, geography and experienced staff to its franchise. This opportunity arose and we
thought it is an attractive route to supplement HDFC Bank’s organic growth. We believe that
Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach
to business.”
Mr. Aditya Puri, Managing Director, HDFC Bank said, “These are exciting times for the
Indian banking industry. The proposed merger will position the combined entity to significantly
exploit opportunities in a market globally recognized as one of the fastest growing. I’m
particularly bullish about the potential of business synergies and cultural fit between the two
organizations. The combined entity will be an even greater force in the market.”
Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, “Over the last few years,
Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nationwide
network, an extremely valuable franchise, 7,500 talented employees, and strong leadership
positions in the market place. I believe that the merger with HDFC Bank will create a world class
bank in quality and scale and will set the stage to compete with banks both locally as well on a
global level.”
Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said,
“We are extremely pleased to receive the go ahead from our board to pursue this opportunity. A
merger between the banks provides significant synergies to the combined entity. The proposed
merger would further improve the franchise and customer proposition offered by the individual
banks.”
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2.5 FINANCIAL FIGURE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008
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2.6 QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank.
Hence, it will aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, the bank offers a
range of innovative products to meet these needs.
INTEGRITY
CUSTOMER CENTRIC
PEOPLE CARE “ONE FOR ALL AND ALL FOR ONE”
TEAM WORK
JOY AND SIMPLICITY
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CHAPTER 3- RESEARCH OBJECTIVES AND SCOPE OF RESEARCH
PROJECT
Sales Executives were with good background human being and through rigorous process of
recruitment but still not able to perform up to the expectation level of company, HR is not able to
sort out the problem why the performance is not coming even after giving the full marketing
support. The communication technique and dealing with the customers is also a problem to the
sales executives.
To open new savings accounts by convincing customers and to promote the benefits of those
which are provided by the bank.
To find the different way of convincing customers.
To study brand image of the bank.
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3.3 GEOGRAPHICAL SCOPE:
The same problem was with the all other branches of HDFC Bank even out of the Pune city. The
management is conducting the same research on a big ground while my contribution is tiny.
Though my sample size and geographical area was defined and confine to a particular territory
but the application of out put from the research are going to be wide.
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CHAPTER4- RESEARCH METHODOLOGY AND LIMITATIONS
All the findings and conclusions obtained are based on the survey done in the working area
within the time limit. I tried to select the sample representative of the whole group during my job
training. I have collected data from people linked with different profession at Pune.
4.1.1. Preliminary Investigation: In which data on the situation surrounding the problems shall
be gathered to arrive at
Research was initiated by examining the secondary data to gain insight into the problem.
By analyzing the secondary data, the study aim is to explore the short comings of the present
system and primary data will help to validate the analysis of secondary data besides on
unrevealing the areas which calls for improvement.
The data for this research project has been collected through self Administration. Due to
time limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.
In questionnaires open ended and closed ended, both the types of questions has been used.
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4.2.2 COLLECTION OF DATA:
1: Secondary Data: It was collected from internal sources. The secondary data was collected on
the basis of organizational file, official records, news papers, magazines, management books,
preserved information in the company’s database and website of the company.
2: Primary data: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through a structured questionnaire.
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.
My sample size for this project was 200 respondents. Since it was not possible to cover
the whole universe in the available time period, it was necessary for me to take a sample size of
200 respondents.
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4.5 DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of
data will be based on Survey Method and Field Activity. Primary data collection will base on
personal interview. I have prepared the questionnaire according to the necessity of the data to be
collected.
It was not possible to understand thoroughly about the different marketing aspects of the
Financial Consultant within 60 days.
As stipend, money was not given it was difficult to continue the project work.
All the work was limited in some limited areas of Pune so the findings should not be
generalized.
The area of research was Pune and it was too vast an area to cover within 60 days.
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CHAPTER5-DATA ANALYSIS, INTERPRETATION AND PRESENTATION
Q1.Your Age?
TABLE
GRAPH
15% 20%
18-23 Years
24-29 Years
30-35 Years
35 & above
30%
35%
Interpretation
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Q2. Marital Status?
TABLE
2 Unmarried 60 30%
GRAPH
30%
Married
Unmarried
70%
Interpretation
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TABLE
2 Graduate 80 40%
GRAPH
25%
35%
Under graduate
Graduate
Post graduate
40%
Interpretation
TABLE
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Sr. No. Category No. of Respondents Percentage
GRAPH
39%
Interpretation
TABLE
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1 Business 40 20%
3 Service 52 26%
GRAPH
20%
26%
Business
Profession
Service
54%
Interpretation
TABLE
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3 Between 5to 8 lacs 30 15%
GRAPH
5%
15%
Less than 2 lacs
49% Between 2 to 5 lacs
Between 5to 8lacs
More than 8 lacs
31%
Interpretation
TABLE
1 Yes 84 42%
2 No 116 58%
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Total 200 100%
GRAPH
42%
Yes
No
58%
Interpretation
Q8. What is your perception about different products/services provided by HDFC bank?
TABLE
1 Lucrative 50 25%
4 No idea 30 15%
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Total 200 100%
GRAPH
15% 25%
Lucrative
Not lucrative
No idea
60%
Interpretation
TABLE
1 Yes 10 5%
2 No 160 80%
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Base 200 respondents
GRAPH
15%
5%
No
Yes
Will tell later 30
80%
Interpretation
80% respondents are not interested to open an account with the bank.
5% respondents are interested to open an account with the bank.
15% of the respondents say that they will tell later.
Q10. Do you have all the documents which are required to open an account?
TABLE
2 No 80 40%
GRAPH
34
29%
Lucrative
Not lucrative
71%
Interpretation
60% respondents have all the documents which are required to open an account with the
bank.
25% respondents do not have all the documents which are required to open an account
with the bank
Q11. Are you aware that the bank provides you a free Dmat account if you open a new
savings account with HDFC bank?
TABLE
1 Yes 40 20%
2 No 160 80%
Total 70 100%
GRAPH
35
29%
Lucrative
Not lucrative
71%
Interpretation
20% respondents are aware that the bank provides a free Dmat account with new
savings account.
40% respondents are not aware of it.
Q12.Are you aware of different terms and conditions which are very much essential to
maintain an account at HDFC Bank?
TABLE
1 Yes 25 12%
2 No 175 88%
GRAPH
36
29%
Lucrative
Not lucrative
71%
Interpretation
12% respondents are familiar with different terms and conditions which are very much
essential to maintain account with the bank.
88% respondents have no idea about it.
Q13. Do you know about HDFC Bank’s recruitment policies related to sales executives?
TABLE
1 Yes 82 41%
2 No 118 59%
GRAPH
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Knowing about HDFC Bank's recruitment policies
41%
Yes
No
59%
Interpretation
41% respondents are known about HDFC Bank’s recruitment policies related to sales
executives.
59% respondents are not known about HDFC Bank’s recruitment policies related to
sales executives.
6.1 CONCLUSIONS:
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank
already has good number of employees on board and is recruiting Sales Executives heavily to
take the headcount to many more. It is on the brim of increasing its customers through its
attractive schemes and offer.
The project opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to open an account so that new
Business Opportunities of the bank can be explored. Through this project, it could be concluded
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that people are not much aware about the various products of the bank and many of them not
interested to open an account at all.
services was considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate, the demand for banking
sector is increasing day by day.
So, at last the conclusion is that there is tough competition ahead for the company from
its major competitors in the banking sector.
Last but not the least I would like to thank HDFC Bank for giving me an opportunity to
work in the field of Marketing. I hope the company finds my analysis relevant.
6.2 SUGGESTIONS:
To make people aware about the benefit of becoming HDFC Bank’s Sales
Executive, following activities of advertisement should be done through
1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
.
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The bank should provide life time valid ATM card to all its customers.
Company should organize the program in the society, so that people will be aware
about the company and different products of the bank
CHAPTER7- LIMITATIONS
LIMITATIONS
Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are:-
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People mind set about the survey was an obstacle in acquiring complete
information & positive interaction.
Respondents were very busy in their schedule. So it was very time consuming for
them to answer all the questions properly.
ANNEXURES
1. QUESTIONNAIRE
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Q
UESTIONNAIRE
Dear Sir/Madam,
Name: ………………………………………………………………………..
Address: ……………………………………………………………………..
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I am a student of Suryadatta Institute of Management and Mass Communication, Pune
and presently doing a project on “OPENING SAVINGS ACCOUNT BY MEETING
CUSTOMERS”. I request you to kindly fill the questionnaire below and I assure you that the
data generated shall be kept confidential.
2. Education Qualification.
Undergraduate □
Graduate □
Post graduate □
3. Marital Status.
Married □
Single □
No. of Children: __________
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Less than five year’s □
More than five year’s □
5. Occupation.
Business □
Profession □
Service □
(Please mention below the type of business/profession you are in incase of service please
mention your organization name and designation)
<than 2 lack □
Between 2 to 5 lack □
Between 5 to 8 lack □
>than 8 lack □
Yes □
No □
8. What is your perception about different products and services offered by HDFC Bank?
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Lucrative □
Not lucrative □
No idea □
Yes □
No □
Will tell later □
10. Do you have all the documents which are required to open an account?
Yes □
No □
11. Are you aware of that HDFC Bank provide you a free Dmat account if you open a new
savings account with the bank?
Yes □
No □
12. Are you aware of different terms and conditions which are very much essential to
maintain an account at HDFC Bank?
Yes □
No □
13. Do you know about HDFC Bank’s recruitment policies related to sales executives?
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Yes □
No □
Date:
Place: Signature
Thank You
BIBLIOGRAPHY
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1.BOOKS AUTHORS
2. NEWS PAPERS
Times of India
Financial Express
3. WEBSITES
www.hdfcbank.com
www.google.com
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