Professional Documents
Culture Documents
A Project Report: Under The Supervision Of: - Submitted By
A Project Report: Under The Supervision Of: - Submitted By
A Project Report: Under The Supervision Of: - Submitted By
Project Report
ON
TO
ACKNOWLEDGEMENT
It is always acknowledged so precious a debt as that of learning. It is the only
debt that is difficult to reply through gratitude. It is indeed a great
opportunity for me to pen down a few lines about people to whom
my acknowledgement is due.
It is my deepest sense of gratitude that I wish place on record my sincere
thanks to Dr. Amit Gupta (Project guide) for providing me this
opportunity to complete my project work in Marketing
Management.
I would also like to thanks all those who could not find a separate name but
has help me directly or indirectly.
Last but not the least I would like to thanks my faculty members at Centurion
Institute of Professional Studies who gave me the useful tips and opened a
whole New World of Knowledge for me. Lastly, I would like to thank all the
members of HDFC Bank and my colleagues who gave me fruitful information to finish
my project.
EXECUTIVE SUMMARY
In accordance with the resource project the topic chosen identify the
corporate target market (current account) and Costumers perception
of in JAIPUR city.
Current Account.
Content table
A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta
operations in the 1850s. At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which banking activity took roots
there and prospered.
EARLY HISTORY
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However,
at the end of late-18th century, there were hardly any banks in India in the modern sense
of the term. At the time of the American Civil War, a void was created as the supply of
cotton to Lancashire stopped from the Americas. Some banks were opened at that time to
finance industry, including speculative trading in 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. Subsequently,
banking in India remained the exclusive domain of Europeans for next several decades
until the beginning of the 20th century.
The presidency banks dominated banking in India. There were also some exchange banks
and a number of Indian joint stock banks. All these banks operated in different segments
of the economy. The exchange banks, mostly owned by Europeans, concentrated on
financing foreign trade. Indian joint stock banks were generally under capitalized and
lacked the experience and maturity to compete with the presidency and exchange banks.
This segmentation let Lord Curzon to observe, "In respect of banking it seems we are
behind the times. We are like some old fashioned sailing ship, divided by solid wooden
bulkheads into separate and cumbersome compartments."
By the 1900s, the market expanded with the establishment of banks such as Punjab
National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which
were founded under private ownership. Punjab National Bank is the first Swadeshi Bank
founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi
movement in particular inspired local businessmen and political figures to found banks of
and for the Indian community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara
Bank and Central Bank of India.
The period during the First World War (1914-1918) through the end of the Second World
War (1939-1945), and two years thereafter until the independence of India were
challenging for Indian banking. The years of the First World War were turbulent, and it
took its toll with banks simply collapsing despite the Indian economy gaining indirect
boost due to war-related economic activities. At least 94 banks in India failed between 1913
and 1918 as indicated in the following table:
1913 12 274 35
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
POST-INDEPENDENCE
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end of
a regime of the Laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial Policy
Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted
into greater involvement of the state in different segments of the economy including
banking and finance. The major steps to regulate banking included:
In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of an
existing bank may be opened without a license from the RBI, and no two banks
could have common directors.
However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with
the nationalization of major banks in India on 19th July, 1969.
NATIONALISATION
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large employer,
and a debate has ensued about the possibility to nationalize the banking industry. Indira
Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual
conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move
was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest
commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a
national leader of India, described the step as a "masterstroke of political sagacity." Within
two weeks of the issue of the ordinance, the Parliament passed the Banking Companies
(Acquition and Transfer of Undertaking) Bill, and it received the presidential approval on
9th August, 1969.
A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated
reason for the nationalisation was to give the government more control of credit delivery.
With the second dose of nationalisation, the GOI controlled around 91% of the banking
business of India. Later on, in the year 1993, one of the nationalised banks, namely, New
Bank of India was merged with Punjab National Bank. It was the first and only merger of
a Nationalised Bank into a Nationalised Bank, resulting in the reducing the number of
Nationalised Banks from 20 to 19.
After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to
the average growth rate of the Indian economy.
LIBERALISATION
In the early 1990s the then Narsimha Rao government embarked on a policy of
liberalisation and gave licences to a small number of private banks, which came to be
known as New Generation tech-savvy banks, which included banks such as Global Trust
Bank (the first of such new generation banks to be set up)which later amalgamated with
Oriental Bank of Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of India, kickstarted
the banking sector in India, which has seen rapid growth with strong contribution from all
the three sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 49%
with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were
used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The
new wave ushered in a modern outlook and tech-savvy methods of working for traditional
banks.All this led to the retail boom in India. People not just demanded more from their
banks but also received more.
CURRENT SITUATION
Currently (2007), banking in India is generally fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks
are considered to have clean, strong and transparent balance sheets relative to other banks
in comparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government. The stated policy of the Bank on the Indian
Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been
true.
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector-the demand for banking services, especially retail banking,
mortgages and investment services are expected to be strong. One may also expect M&As,
takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in
Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has
been allowed to hold more than 5% in a private sector bank since the RBI announced
norms in 2005 that any stake exceeding 5% in the private sector banks would need to be
vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that
is with the Government of India holding a stake)after merger of New Bank of India in
Punjab National Bank in 1993, 29 private banks (these do not have government stake; they
may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets
of the banking industry, with the private and foreign banks holding 18.2% and 6.5%
respectively
Introduction of many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by
his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. The
entire system became more convenient and swift. Time is given more importance than
money.
COMPANY PROFILE
BUSINESS OBJECTIVE
ORGANISATIONAL GOALS
HDFC's main goals are to
(a) Develop close relationships with individual households,
(b) Maintain its position as the premier housing finance institution in the
country,
(c) Transform ideas into viable and creative solutions,
(d) Provide consistently high returns to shareholders, and
(e) To grow through diversification by leveraging off the existing client base
SLOGAN
“We Understand Your World”
BUSINESS FOCUS
CAPITAL STRUCTURE
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The
paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of
the bank's equity and about 19.4% of the equity is held by the ADS Depository (in
respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of
the equity is held by Foreign Institutional Investors (FIIs) and the bank has about
190,000 shareholders. The shares are listed on the 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".
DISTRIBUTION NETWORK
HDFC BANK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 761 branches spread over 327 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 centres 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 centres where the
NSE/BSE have a strong and active member base.
TIMESBANK AMALGAMATION
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.
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.
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
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.
2001
Branches 43%
ATM 40%
Phone Banking
14%
Internet 2%
Mobile 1%
2005
Branches 17%
ATM 45%
Phone Banking
12%
Internet 25%
Mobile 1%
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 MIX
Retail Wholesale
HDFC Bank is a consistent player in the private sector bank and have a
well balanced product and business mix in the Indian as well as overseas
markets.
Customer segments (retail & wholesale) account for 84% of Net revenues (
FY 2008)
Higher retail revenues partly offset by higher operating and credit costs.
SEGMENTS
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agro-based businesses. For these
customers, the Bank provides a wide range of 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 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 corporates
including multinationals, companies from the domestic business houses and prime public
sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.
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 are backed by world-class service and
delivered to the 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 against marketable securities, Personal Loans and Loans for Two-wheelers.
It is also a leading provider of Depository 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 MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By September 30, 2005, the
bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also
one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-
sale (POS) terminals for debit / credit cards acceptance at merchant establishments.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply with
statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio
PERSONAL BANKING
WHOLESALE BANKING
Corporate Small and Medium Financial Institutions and
Enterprises Trusts
Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts
NRI SERVICES
NetSafe NetBanking
BillPay OneView
InstaPay InstaAlert
DirectPay ATM
Visa Money PhoneBanking
Online Donation Email Statements
Branch Network
BUSINESS STRATEGY
HUMAN RESOURCE
The Bank’s staffing needs continued to increase during the year particularly in the
retail banking businesses in line with the business growth. Total number of employees
increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank
continues to focus on training its employees on a continuing basis, both on the job and
through training programs conducted by internal and external faculty. The Bank has
consistently believed that broader employee ownership of its shares has a positive impact
on its performance and employee motivation. The Bank’s employee stock option scheme so
far covers around 9000 employees.
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 program has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk".
CARE has also rated the bank's Certificate of Deposit (CD) program "PR 1+" which
represents "superior capacity for repayment of short term promissory obligations". Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA ( ind )"
rating to the Bank's deposit program, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high".
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.
RECENT DEVELOPMENT
The Reserve Bank of India has approved the scheme of amalgamation of Centurion
Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.All the
branches of Centurion Bank of Punjab will function as branches of HDFC Bank with
effect from May 23, 2008. With RBI’s approval, all requisite statutory and regulatory
approvals for the merger have been obtained.
The combined entity would have a nationwide network of 1167 branches; a strong
deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores.
The balance sheet size ofthe combined entity would be over Rs.1, 63,000 crores.
On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of
amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The
shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of
HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion
Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve
Bank of India, stock exchanges and Other requisite statutory and regulatory
authorities. The shareholders Also accorded their consent to issue equity shares and/or
warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC
Limited and/or other promoter group companies on preferential basis, subject to final
regulatory approvals in this regard. The Shareholders of the Bank have also approved
an increase in the authorized capital from Rs.450 crores to Rs.550 crores.
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our way
towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.
2007
One of India's "Most Innovative Companies"
Business Today-Monitor Group survey
'Corporate Best Bank' Award
Dun & Bradstreet – American Express Corporate Best Bank Award 2007
2005
Best Domestic Commercial Bank
Asiamoney Awards
"Most Customer Responsive Company - Banking and Financial Services
Economic Times - Avaya Global Connect Customer Responsiveness Awards
2004
Mr. C M Vasudev
BOARD COMMITTEE
The Board has constituted committees of Directors to take informed decisions in the best
interest of the Bank. These committees monitor the activities falling within their terms of
reference. Various committees of the Board were reconstituted during the year due to
induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are
as follows:
The Board's Committees are as follows:
AQB Rs.40,000/-
Trade
PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
821, 200,
825, 221,
205, 208,
227, 232, 823, 202,
Product 824, 256, 219, 220,
830, 819, 206, 833,
Codes 826,279*,
832, 820, 810
814, 827
250,835, 831,
813, 811,
843*
229, 226
Average
Quarterly
Rs.100,000/- Rs.40,000/- Rs.25,000/- Rs.10,000/-
Balance
(AQB)
Less than
Rs.50,000 -
Non- Rs.6,000
Maintenance
Rs.1,200/- Rs.900/- Rs.750/-
Charges (per
Qaurter) Rs.50,000 &
above -
Rs.1,500
Mode of
Average of daily closing balances of each day spread over a
calculating
period of three months.
AQB
Account features Chequebook
PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Cheque Book
Charges 300 cheque 200 cheque 100 cheque
(Issued by leaves Free leaves Free leaves Free
Bank) per month. per month. per month.
Charges Rs
Charges Rs Charges Rs Charges Rs
2/- per leaf
2/- per leaf 2/- per leaf 2/- per leaf
beyond 300 beyond 200 beyond 100
leaves leaves leaves
Account features Remittance Transactions
PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Local
cheques/A/c
to a/c funds
transfer
transactions
Free Free Free Free
at home
branch
location
(Payment
/Collection)
Anynhwere Transactions (except Dahej)
A/c to A/c
Fund
Transfer
Rs.15/- per Rs.15/- per
within HDFC Free Free
transaction transaction
Bank -
anywhere
transactions
Free up to
Rs.100 lacs Free up to
Free up to Rs.
per month, Rs.50 lacs per
Payments & 25 lacs per
beyond month, beyond Charges at
Collections at month,
which which charges Rs.1.50/1000,
HDFC Bank Charges at
charges @ @ Rs. min Rs. 25
Locations Rs.1.50/1000,
Rs. 0.50/1000,
min Rs. 25
0.50/1000, min Rs. 25
min Rs. 25
All
transactions All
All All
are subject transactions
transactions transactions
to a are subject to
are subject to are subject to
maximum of a maximum of
a maximum of a maximum of
250 100
150 100
transactions transactions
transactions transactions
per month, per month,
per month, per month,
beyond beyond which
beyond which beyond which
Bulk which charges @
charges @ charges @
Transaction charges @ Rs.5/- per
Rs.5/- per Rs.5/- per
Charges Rs.5/- per transaction
transaction transaction
transaction would be
would be would be
would be levied.
levied.Include levied.Includes
levied. Includes all
s all Local / all Local /
Includes all Local /
Anyhwere Anyhwere
Local / Anyhwere
clearing and clearing and
Anyhwere clearing and
transfer transfer
clearing and transfer
transactions transactions
transfer transactions
transactions
Account features Cash Txn: Deposit
PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Free upto
Rs.10 lacs per Free upto Rs.5 Free upto Rs.3 Free upto Rs.2
month or 50 lacs per month lacs per month lacs per month
transactions or 40 or 25 or 25
which ever is transactions transactions transactions
lower, Deposit which ever is which ever is which ever is
in excess of lower, Deposit lower, Deposit lower, Deposit
Rs.10 lacs or in excess of in excess of in excess of
50 Rs.5 lacs or 40 Rs.3 lacs or 25 Rs.2 lacs or 25
transactions transactions transactions transactions
Cash Deposit- will be charged will be charged will be charged will be charged
Home Branch @ Rs.2/- per @ Rs.2/- per @ Rs.2/- per @ Rs.2/- per
Location Rs.1,000/-, Rs.1,000/-, Rs.1,000/-, Rs.1,000/-,
minimum minimum minimum minimum
Rs.50/-. (Cash Rs.50/-. (Cash Rs.50/-. (Cash Rs.50/-. (Cash
deposit at non- deposit at non- deposit at non- deposit at non-
home branches home branches home branches home branches
within home- within home within home within home
branch city branch city branch city branch city
subject to limit subject to limit subject to limit subject to limit
of of Rs.50,000/- of Rs.25,000/- of Rs.10,000/-
Rs.100,000/- per day per day) per day)
per day)
Cash Deposit
Product Depositor Home Non-home branch in the Non-home location
Branch same city (Intra-city) (Intercity)
Regular Self Free up to Rs. 200,000 per month or 25 Not allowed
Third party transactions per month. Charges
Rs.2/1000, min Rs. 50/- per transaction
beyond free limits. (Irrespective of cash
deposited by self or third party)
Premium Self Free up to Rs. 300,000 per month or 25 Rs. 3/1000
Third party transactions per month. Charges (Irrespective of cash
Rs.2/1000, min Rs. 50/- per transaction deposited by self or
beyond free limits. (Irrespective of cash third party)
deposited by self or third party)
Trade Self Free up to Rs. 500,000 per month or 40 Rs. 3/1000
Third party transactions per month. Charges (Irrespective of cash
Rs.2/1000, min Rs. 50/- per transaction deposited by self or
beyond free limits. (Irrespective of cash third party)
deposited by self or third party)
Plus Self Free up to Rs. 10,00,000 per month or 40 Rs. 3/1000
Third party transactions per month. Charges (Irrespective of cash
Rs.2/1000, min Rs. 50/- per transaction deposited by self or
beyond free limits. (Irrespective of cash third party)
deposited by self or third party)
Account features Cash Txn: Withdrawal
PREMIUM REGULAR
HDFC Bank HDFC Bank
Features Current Current
PLUS TRADE
Account Account
Cash
Free at Free at Free at Free at
Withdrawal-
Home Home Home Home
Home
Branch Branch Branch Branch
Branch
Free cash Free cash Free cash
withdrawals withdrawals withdrawals
upto upto upto
Rs.50,000/- Rs.50,000/- Rs.25,000/-
per day, per day, per day, Cash
beyond beyond beyond withdrawals
which which which charges @
charges @ charges @ charges @ Rs.2/1000,
Cash Rs.2/1000, Rs.2/1000, Rs.2/1000, min Rs. 50
Withdrawal- min Rs.50/- min Rs. 50/- min Rs. 50/- Third party
Non Home (Only for (Only for (Only for cash
Branch- incremental incremental incremental withdrawal
Intracity & amount), amount), amount), allowed only
Intracity Third party Third party Third party up to
cash cash cash maximum
withdrawal withdrawal withdrawal Rs. 50,000/-
allowed only allowed only allowed only per
up to up to up to transaction.
maximum maximum maximum
Rs. 50,000/- Rs. 50,000/- Rs.50,000/-
per per per
transaction. transaction. transaction.
Competitive Advantage
Competitive Advantage
Plus Current Account Trade Current Account Premium Current Account Regular Current Account
Free A/c to A/c Fund Free A/c to A/c Fund Cheaper A/c to A/c Fund Cheaper A/c to A/c Fund
Transfer Transfer Transfer Transfer
Free RTGS Free RTGS Cheaper RTGS payment / Cheaper RTGS payment /
Collection Free Collection Free
Free DD/MC Free DD/MC Cheaper DD/MC - Flat Cheaper DD/MC - Flat
charges charges
Bank basically means business and in business collection of raw data allows the managers to see the real
scenario and then take a decision as per the data obtained. There are several implications in this
statement:
The bank gets a clear picture of the ULIP Market scenario.
They can examine the available information in the form of data to make a decision
They can even get a clear picture of the scenario or potential of the Savings Account and ULIP’s
of their banks in comparison to other banks.
The information can only be gathered by data collection and then analyzing the available data.
Therefore, it can be said that the data collection is an important part of the project.
Data
Information
Raw numbers
The projected objectives were considered and as per the requirement a market survey was done.
Procedure:
Process adopted:
1. Gaining knowledge about the product:
Reading about the product was the first step undertaken. This gave not only in depth knowledge
about what is been offered by other players but also proved useful while developing the
questionnaire.
3. Customer Survey:
The people play an important part as a clear perception of people about the product can be
estimated and known. Studying the need levels of the people regarding the Insurance product can be
observed. It was very useful in knowing about the requirements of the people.
To understand the competitors product brochures and websites of various players were referred
and a competitive analogy of all the information is been made.
Research Design:
A two stage Research was conducted:
1. Secondary Research:
Data was collected from websites and catalogues to understand the product of the different players
2. Primary Research:
A Primary Research was conducted:
The questionnaire was prepared for the companies and following areas covered:
competing banks
Features offered by different banks
Consumer profile
Satisfaction level
Reasons for their invesment
Desirable features of the product.
Sampling Plan:
Elements:
The target population of the study included the general population above the age of 21 yrs. It will
further be based on Stratified Random Sampling.
Socioeconomic Characteristics:
Attitudes/Opinions:
Motivation:
Through the questionnaire we have tried to find the hidden need or want of
businessmen and have tried to find if these people can be tapped as the
potential customer for HDFC Bank.
Behavior:
Behavior concerns what subjects have done or are doing. Through the
questionnaire we have tried to find out the behavior of the individuals
regarding the product and their responses. If the responses are favorable
then the person can be said to be our potential customer. The primary
data serves as an important tool to measure the behavioral trend of the
customer. It helps in answering some of the vital Questions.
Versatility:
Monthly Transection
70%
60%
50%
05L- 20L
40%
20L - 40L
30% 40L - Above
20%
10%
0%
05L- 20L 20L - 40L 40L - Above
Question 5
Both, 52%
Outside City
, 15%
Question 10
1. Almost all the Banks offer similar features and facilities with their
Savings accounts, therefore for existing customers of Current
Account of any Bank to shift to another Bank; this is very rarely the
criteria or reason.
2. The level of service in terms of delivering whatever is promised, fast
response in case of problems, is the most important benefit that the
customers seek, from the Bank they have a Current Account with.
3. Network reach and visibility of a Bank is a very important criterion
for the customer while opening a Current Account. We can also
conclude from our analysis that network reach in terms of Branches
and ATMs is directly proportional to the market share in case of
Private Players.
4. In case of a new customer, if a bank approaches it first for opening a
Current Account with them, then there is a good chance for the
bank of getting many future businesses and cross sales from the
deal.
5. Aggressive Marketing is the key to increasing the market share in
this area, since the market has a lot of potential both in terms of
untapped market .
RECOMMENDATIONS & SUGGESTIONS
3. The bank needs to make people aware about there products and the
basic benefits they can derive out of it. And also the differential
features of its savings account as compared to other banks.70% of
the people did not even know about the concept, benefits and
features of its saving accounts.
4. The bank should also target small business unit for whom
maintenance of the AQB is not a problem as this segment is not
much penetrated.
5. Though the bank offers free doorstep banking once a day this fact
is also not known to many customers or they still do not trust this
service what ever the reason the bank can popularize this service
to gain an edge over nationalized banks and Co-operative Banks.
QUESTIONAIRE-
C
u
1. Name of Reaspondent____________________________________________________________
2. Contact Person_________________________________________________________________
3. Contact No.____________________________________________________________________
4. Monthly Transaction_____________________________________________________________
11. What are the additional Benefits do you expect from a Current Account?
__________________________________________________________________________________
__________________________________________________________________________________
Date___________________
Place__________________ Signature
BIBLOGRAPHY