SUMMER INTERNSHIP REPORT ON-

‘DIGITAL BANKING’

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF PGDM

PROGRAM OF PRAXIS BUSINESS SCHOOL

SUBMITTED TO-

FACULTY GUIDE AND MENTOR- Prof. Kaushik Sarkar

ORGANISATION GUIDE- Mr. Anshuman Chakravorty (BRANCH MANAGER)

REGIONAL HUMAN RESOURCE MANAGER- Ellerene L Nongbri

SUBMITTED BY-

Nayana Churiwala

PGDM 2018-20

Praxis Business School

 ACKNOWLEDGMENT

The summer internship at “HDFC BANK LIMITED” has been a great opportunity to learn about the
banking sector from as close as possible.

As an MBA student aiming to build a career in the BFSI sector, it was like a dream come true to get an
opportunity to work in the leading private sector bank in India.

It is a great pleasure for me to acknowledge my heartfelt gratitude and indebtedness to my guide Mr.
Anshuman Chakravorty (Branch Manager, HDFC Bank, Tinsukia 1064) for his constant guidance,
supervision, and encouragement during the entire period of this study even at the cost of his personal
inconveniences. In spite of his extremely busy schedule as the Branch Manager of one of the biggest
branches of upper Assam, his enthusiasm to interact with the student interns to impart some of his
vast experience and knowledge to us was truly inspiring.

I am also grateful to Mr. Rupam Dey (Personal Banker Authoriser) and Mrs. Monmita Rajkhowa
(Preferred RM) for their incredible support and guidance throughout the Summer Internship without
which I would have been truly clueless.

I would also like to take this opportunity to show my gratitude towards my family and friends whose
constant support has helped me complete this project.
 AGENDA

PART A

1. BANKING INDUSTRY IN INDIA

2. ORGANISATION PROFILE
2.1. BACKGROUND
2.2. DISTRIBUTION
2.3. MANAGEMENT
2.4. BOARD OF DIRECTORS
2.5. SHAREHOLDING PATTERN
2.6. BUSINESS PROFILE
3. ORGANISATION STRUCTURE
4. KEY HIGHLIGHTS FROM Q4 RESULTS
5. PORTER’S FIVE FORCES MODEL FOR HDFC BANK
6. HDFC DIGITAL BANKING PRODUCTS

PART B

7. PROJECT DETAILS
8. SCOPE AND OBJECTIVE OF THE STUDY
9. RESEARCH METHODOLOGY
10. DATA ANALYSIS AND INTERPRETATION

PART C

11. LEARNINGS FROM SUMMER TRAINING

11.1. CUSTOMER INVOLVEMENT LEVEL IN DIGITAL BANKING
11.2. PROCESS OF OFFERING RIGHT PRODUCT TO RIGHT CUSTOMER
 1. BANKING INDUSTRY IN INDIA-
As per the Reserve Bank of India (RBI), India’s banking sector is
sufficiently capitalised and well- regulated. The financial and economic conditions in the country
are far superior to any other country in the world. RBI’s new measures may go a long way in helping
the restructuring of the domestic banking industry. The digital payments system in India has
evolved the most among 25 countries with India’s Immediate Payment Service (IMPS) being the
only system at level 5 in the Faster Payments Innovation Index (FPII).
Key investments and developments in India’s banking industry include:
• As of September 2018, the Government of India launched India Post Payments Bank (IPPB)
and has opened branches across 650 districts to achieve the objective of financial inclusion.
• The total value of mergers and acquisition during 2017 in NBFC diversified financial services
and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million respectively.
• In May 2018, total equity funding of microfinance sector grew at the rate of 39.88% to Rs
96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03 billion)

Road Ahead
• The advancements in technology have brought the mobile and internet banking services to the

fore. The banking sector is laying greater emphasis on providing improved services to their clients
and also upgrading their technology infrastructure, in order to enhance the customer’s overall
experience as well as give banks a competitive edge.
• India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1 trillion by
FY2023 driven by the five-fold increase in the digital disbursements.
2. ORGANISATION PROFILE
HDFC BANK- A Snapshot

• Industry - Banking, Financial Services

• Founded - 1994

• Headquarters - Mumbai, Maharashtra, India

• 5,103 branches in 2,748 cities (as on March 31, 2019)

• Revenue - Rs 95,461crore ($14 billion) (2018)

• Profit - Rs 17,486 crore ($2.5 billion) (2018)

• Total Assets - Rs 1,018,170 lakh ($150 billion) (2018)

• Employees – 98,061 (March 31, 2019)

• Share price (as on 31.05.2019)- Rs 2,426

2.1. BACKGROUND-

HDFC Bank Limited (Housing Development Finance Corporation) is an Indian banking and
financial services company headquartered in Mumbai, Maharashtra. It has 88,253 permanent
employees as of 31 March 2018[8] and has a presence in Bahrain, Hong Kong, and Dubai. HDFC
Bank is India’s largest private sector lender by assets. It is the largest bank in India by market
capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most Valuable
Global Brands.

2.2. DISTRIBUTION-

As of March 31, 2019, the Bank's distribution network was at 5,103 branches across 2,748 cities.
All branches are linked online on a real-time basis. Customers across India are also serviced
through multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking, and
SMS based 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 centers
where the NSE / BSE have a strong and active member base. The Bank also has a network of
13,160 ATMs across India. 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. The bank also
installed 4.30 lakhs POS terminals and issued 235.7 Lacs debit cards and 85.4 Lacs credit card in
FY 2017.

2.3. MANAGEMENT-
Senior Management Team-

2.4. BOARD OF DIRECTORS-

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs. Gopinath has
39 years of experience in financial sector policy formulation in different capacities at RBI. As
Deputy Governor of RBI for seven years and member of the Board. Mrs. Gopinath had been
guiding and influencing the national policies in the diverse areas of financial sector regulation and
supervision, development and regulation of financial markets, capital account management,
management of government borrowings, forex reserves management and payment and
settlement systems.

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.

2.5. SHAREHOLDING PATTERN-

2.6. BUSINESS PROFILE-

HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

➢ Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and agri-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 recognized as a leading provider of cash management and
 transactional banking solutions to corporate customers, mutual funds,
stock exchange members and banks.

➢ 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 liberalization 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.

➢ Retail Banking

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 customers through
the growing branch network, as well as through alternative delivery channels like ATMs, Phone
Banking, NetBanking, and Mobile Banking.
3. ORGANISATION HIERARCHY-
MANAGING DIRECTOR

DEPUTY MANAGING
DIRECTOR

EXECUTIVE DIRECTOR

COUNTRY HEAD

WHOLESALE BANKING AUDIT RETAIL BANKING DIGITAL OPERATIONS TREASURER

GROUP HEAD

CHIEF RISK OFFICER

CHIEF INFORMATION
OFFICER

CHIEF PEOPLE’S
OFFICER

CLUSTER HEAD

BRANCH
MANAGER

BACKUP MANAGER AND

ASST. BACKUP MANAGER

RELATIONSHIP MANAGER AT
DIFFERENT PORTFOLIOS BRANCH SALES
OFFICER (BSO)

PERSONAL BANKERS AND CURRENT ACCOUNT

WELCOME DESK SALES OFFICER (CSO)
4. HIGHLIGHTS Q4 REPORT ENDING MARCH 2019-
Key takeaways from the private lender’s quarterly and yearly numbers (for the year ending 31st
March 2019)-

1. Record profits
HDFC Bank’s Rs 5,885.10 crore quarterly profit was highest ever for any quarter. This was the
third straight quarter when the lender’s profit was in excess of Rs 5,000 crore. Earlier, the
bank had reported Rs 5,585 crore profits for December quarter and Rs 5,005.70 crore for the
September quarter.

2. Non-interest revenue up 15%

Other income, or non-interest revenue, came in at Rs 4,871.2 crore for the quarter, up 15.2
percent from Rs 4,228.60 crore reported for the same quarter last year.

3. NPA, provisions drop sequentially

Percentage of gross non-performing assets stood at 1.36 percent as of March end against
1.38 percent in the December quarter and 1.30 percent in the same quarter of the previous
year. Provisions for the quarter rose to Rs 1,889.20 crore from Rs 1,541.10 crore in the year-
ago quarter but were less than 22,11.53 crore in the December quarter.

4. 53% of branches in semi-urban, rural areas

The bank said it has a distribution network of 5,103 banking outlets and 13,160 ATMs across
 2,748 cities towns as of March 31, out of which 53 per cent are in
semi-urban and rural areas.
The private lender had a network of 4,787 banking outlets and 12,635 ATMs across 2,691
cities in the year-ago period. The bank has 98,061 employees at the end of FY19 as against
88,253 in FY18.

5. Dividend
The bank board of directors has recommended a dividend of Rs 15 per share for FY19 against
FY18's Rs 13 per share.

6. Consolidated net up 20.7% for FY19

The consolidated net profit for the year rose 20.7 percent to Rs 22,332.4 crore. Consolidated
advances rose 24.2 per cent Rs 8,69,223 crore in FY19 from Rs 7,00,034 crore in FY18.
 5. PORTER’S FIVE FORCES MODEL FOR HDFC BANK
In his revolutionary article - "Five Forces that Shape Strategy", Michael Porter observed five
forces that have significant impact on a firm's profitability in its industry. These five forces
analysis today in business world is also
known as Porter Five Forces Analysis. The
Porter Five Forces are –

➢ Threat of New Entrants

➢ Bargaining Power of Suppliers

➢ Bargaining Power of Buyers

➢ Threat from Substitute Products

➢ Rivalry among the existing players

Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing
the present competition. Porter Five Forces focuses on - how HDFC Bank Limited can build a sustainable
competitive advantage in Foreign Regional Banks industry. Managers at HDFC Bank Limited can not only
use Porter Five Forces to develop a strategic position with in Foreign Regional Banks industry but also
can explore profitable opportunities in whole financial sector.

5.1. Threats of New Entrants

New entrants in banks brings innovation, new ways of doing things and put pressure on HDFC Bank
Limited through lower pricing strategy, reducing costs, and providing new value propositions to the
customers. HDFC Bank Limited has to manage all these challenges and build effective barriers to
safeguard its competitive edge.

How HDFC Bank Limited can tackle the Threats of New Entrants
• By innovating new products and services. New products not only brings new customers to the fold
but also give old customer a reason to buy HDFC Bank Limited‘s products.
• By building economies of scale so that it can lower the fixed cost per unit.
• Building capacities and spending money on research and development. New entrants are less likely
to enter a dynamic industry where the established players such as HDFC Bank Limited keep defining
the standards regularly. It significantly reduces the window of extraordinary profits for the new
firms thus discourage new players in the industry.

5.2. Bargaining Power of Suppliers

Almost all the companies in the Foreign Regional Banks industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins HDFC Bank Limited can earn in the
market. Powerful suppliers in financial sector use their negotiating power to extract higher prices from the
firms in Foreign Regional Banks field. The overall impact of higher supplier
bargaining power is that it lowers the overall profitability of Foreign Regional
Banks.

How HDFC Bank Limited can tackle Bargaining Power of the Suppliers

• By building efficient supply chain with multiple suppliers.

• By experimenting with product designs using different materials so that if the prices go up of one
raw material then company can shift to another.
• Developing dedicated suppliers whose business depends upon the firm. One of the lessons HDFC
Bank Limited can learn from Wal-Mart and Nike is how these companies developed third party
manufacturers whose business solely depends on them thus creating a scenario where these third
party manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.

5.3. Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the minimum
price as possible. This put pressure on HDFC Bank Limited profitability in the long run. The smaller and
more powerful the customer base is of HDFC Bank Limited the higher the bargaining power of the
customers and higher their ability to seek increasing discounts and offers.

How HDFC Bank Limited can tackle the Bargaining Power of Buyers
• By building a large base of customers. This will be helpful in two ways. It will reduce the bargaining
power of the buyers plus it will provide an opportunity to the firm to streamline its sales and
production process.
• By rapidly innovating new products. Customers often seek discounts and offerings on established
products so if HDFC Bank Limited keeps on coming up with new products then it can limit the
bargaining power of buyers.
• New products will also reduce the defection of existing customers of HDFC Bank Limited to its
competitors.

5.4. Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways, industry profitability
suffers. For example services like Drop box and Google Drive are substitute to storage hardware drives. The
threat of a substitute product or service is high if it offers a value proposition that is uniquely different
from present offerings of the industry.

How HDFC Bank Limited can tackle the Treat of Substitute Products / Services
• By being service oriented rather than just product oriented.
• By understanding the core need of the customer rather than what the customer is buying.
• By increasing the switching cost for the customers.
 5.5. Rivalry among the Existing Competitors
If the rivalry among the existing players in an industry is intense then it will drive
down prices and decrease the overall profitability of the industry. HDFC Bank Limited operates in a very
competitive Foreign Regional Banks industry. This competition does take toll on the overall long term
profitability of the organization.

How HDFC Bank Limited can tackle Intense Rivalry among the Existing Competitors
• By building a sustainable differentiation
• By building scale so that it can compete better.
• Collaborating with competitors to increase the market size rather than just competing for small
market.

Implications of Porter Five Forces on HDFC Bank Limited

By analyzing all the five competitive forces HDFC Bank Limited strategists can gain a complete picture of
what impacts the profitability of the organization in banking industry. They can identify game changing
trends early on and can swiftly respond to exploit the emerging opportunity. By understanding the
Porter Five Forces in great detail HDFC Bank Limited’s managers can shape those forces in their favor.
 6. HDFC DIGITAL BANKING -
EVOLUTION
Banks in India as a whole were very reluctant to adopt the changes brought about by technological
advancement. A number of factors brought about the mechanization and digitization in banking industry
in India. The putting in place standard cheque encoders was the first step forward in digital
transformation in banking. Magnetic Ink Character Recognition (MICR) helps in the sorting and
processing of cheques with each bank branch having an MICR code. The next step was more of a
necessity than an innovation. Banking is a repetitive job, and therefore a labor intensive one where the
worker is prone to making mistakes. In order to minimize errors and speed up the process, banks began
using computer technology with standalone personal computers and then set up their own local area
networks (LAN).

As the networks grew and banks began to connect together, Core Banking came into being. Centralized
Online Real-time Exchange (CORE) banking thus allowed customers to perform financial transactions and
access their account from any of the participating bank’s branches. These services made it easier for
customers to operate their accounts and slowly led to the coining of the phrase: ‘Anytime, Anywhere
Banking.’ Then Automated Teller Machines (ATMs) arrived on the scene, and electronic fund transfers
were made possible.

Online banking and TeleBanking made their appearance in the 2000’s and different modes of online fund
transfers were instituted such as Real Time Gross Settlement (RTGS), Immediate Payment System (IMPS),
National Electronic Fund Transfer (NEFT), and National Electronic Clearing Service (NECS). Recent years
have seen the growth in mobile banking services and other innovative services online.
6.1. PAYZAPP

"PayZapp, a payment solution, revolutionized the way

payments and purchases are done on the go today using
mobile devices.

With PayZapp, one can shop on your mobile at partner apps,

buy movie tickets, groceries, compare and book flight tickets
and hotels, shop online and get great discounts at SmartBuy,
send money to anyone in your contact list or to own bank
account, pay bills and recharge mobile, DTH and data card and
many more.

One can link your Debit and Credit Card, of any Bank, to
PayZapp and enjoy the most convenient and secure way of
payment.

6.2. NET BANKING-

HOW TO REGISTER FOR HDFC NETBANKING?

Net Banking Registration is given by default to all HDFC Bank Customers. In case you are not
registered for Net Banking, it is quick & easy. The many ways through which you can register
are:

1. Online

You can Register for Net Banking online by following the below steps:

• Enter your Customer ID

• Confirm your registered mobile number

• Input the OTP (One Time Password) which you have received on your mobile

• Select and input the Debit card details

• Set your IPIN

• Login to Net Banking using the newly set IPIN

 2. ATM

• Visit your nearest HDFC Bank ATM

• Enter your HDFC Bank Debit Card number and your ATM PIN

• Select 'Other Option' from the main screen

• Select 'Net Banking Registration' and confirm

• Your IPIN will be sent by courier to your mailing address.

There are no charges for Net Banking registration request.

NetBanking is an incredibly convenient and powerful tool, letting you do everything you want with your
accounts at the click of a mouse. Some of the transactions you can do through NetBanking are:

• Check your account balances and download account statement, instantly

• Book Fixed Deposit / Recurring Deposit
• Pay Utility Bills
• View your Credit Card details and pay your Credit Card Bills
• Recharge your Prepaid Mobile & DTH Connections
• Invest in Mutual Funds Online
• Book IRCTC Tickets online
• Purchase a Gift Card
• Pay your Taxes online
• View your Tax Credit Satement (Form 26 AS)
• Request for a Demand Draft/ Cheque book
• Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card
These are just some of the 200+ transactions you can do through NetBanking.
6.3. MOBILE BANKING THROUGH APP
The latest addition to mobile banking feature is the MobileBanking app.
The HDFC MobileBanking app can work without an internet connection, it also doesn’t take up
too much space and is quick to install over slow
connections. It’s a safe and secure way of making
transactions on the go. Features of the App-

• Account updates just like status updates: One

view update of all your relationships (savings
account, fixed deposits, credit cards
outstanding) with the bank.

• Quick payments: Payments or money

transfers as quick as using speed dial.
Automatic bill payments, mobile recharge
notifications to help you pay easily.

• Share fund transfer receipts the social media

way: Share your transfer receipts just like you
share memes on social media with ‘share’ and
‘download’ options.

• Make task-list like your playlists: Make a task-list of your banking to-dos or quickly
access favorite transactions to ensure faster banking through your mobile app.
 PART B
7. PROJECT DETAILS-

The title of my project was “DIGITAL BANKING” and I was appointed as an intern at Retail branch
banking. The branch was located in Tinsukia district of Assam. The branch consisted of the major
designated employees, in the following hierarchical structure:

BRANCH MANAGER

(MR. ANSHUMAN CHAKRAVORTY)

PERSONAL BANKING PREFERRED RM PERSONAL BANKER ASST. BRANCH

AUTHORISER (MR. DEEPJYOTI MANAGER (MR.
(MR. RUPAM DEY) (MRS. MONMITA BORAH) CHETNATH
RAJKHOWA) SHARMA)

TELLER TELLER (MR. C WELCOME DESK BRANCH SALES

AUTHORISER (MRS. PRAKASH, MR. (MR. PRITAM OFFICERS (BSOs)
UPASANA DUTTA) NEETU BORAH) RAJGURU)

Apart from the above mentioned people, there were around 40 employees belonging to several other
sub- departments.

Joining as a management intern on 15th April 2o19, I was allocated the project of ‘DIGITAL BANKING’. In
the first week of working, I was told to try and understand all aspects of internet banking for my own
HDFC Account first. Then, I was asked to sit at different counters of the bank branch and learn the over-
the-counter dealing of the customers and the clients who come in search of personnel who can help
them with NetBanking issues or PayZapp or Bank Mobile App problems. There are different PBs allotted
for different purposes and different portfolios. HDFC Bank maintains four different types of portfolios:

• Imperia

• Preferred

• Classic

• Regular

Each of these portfolios is managed by different Relationship Managers and each of this RMs has the
given portfolios under them. These portfolio managers are assigned some assistants under them and
 the customer visits are to be done by this RMs or their assistants or both
and it has to be ensured that the customers are properly managed. Initially,
my role was to stay with the PBs and RMs and learn Digital Banking the way the PB and RM does.
Gradually, all the digital banking activities were asked to be done by me. It included-

• NetBanking registration/Password reset

• HDFC Bank Mobile App setup

• PayZapp registration

• Debit card instant pin generation

• PINN regeneration

• Address change of customers

• Fund transfer

• Debit card hotlisting

• Investment in SIP

Another job included getting online as well as offline ReKYC updation done for around 250 High Net
Worth (HNW) customers, failure at which might cause their account suspension.

I learnt customer dealing and pitching also under these PBs. I slowly started to absorb into the system
and started learning the basics of banking with which I was nearly unaware. I began from observing the
customers who meet the Welcome Desk (WD) and the way they are treated with care and responsibility
without the malice of treating them as the third party. I sat at the WD and learned to understand the
needs of the customers and the way each of them need to be tackled differently. The different
customers of different portfolios used to visit at the WD first asking about the needs they have and then
they used to visit the required counters. I used to see how their needs are to be heard and then tackled
differently with respect to different persons. The tasks that I learned through assisting PBs are-

✓ Opening Account

✓ Printing statements

✓ Filling Forms

✓ Tax payment of customers

✓ Kits and Tatkal register and authorization

8. SCOPE AND OBJECTIVE OF RESEARCH STUDY-
Scope of the study:

The study has been conducted among customers of HDFC Bank, Tinsukia (Main Branch, 1064).

Objectives of the study:

The current study was undertaken to achieve the following stated objectives:

• To analyze what percentage of walk-in customers use digital banking service.

• To know which mode of digital banking service is more convenient for those who use digital

banking.

• To know about the driving/restraining factors for higher frequency of usage of digital

banking services.

9. RESEARCH METHODOLOGY-

Research Design: This research was descriptive in nature. It was concerned with specific

predictions, with narration of facts and characteristics concerning Digital banking service provided

by HDFC Bank.

Sample Size: The sample size is of 100 customers from the branch.

Sampling Technique: For the purpose of research, convenience sampling technique was used.

Data Collection: The walk-in customers of the branch were requested to fill the survey. An

appropriate questionnaire was designed which was filled by the customers of HDFC Bank to know

their opinions regarding the Digital Banking service provided by HDFC Bank. Also, interviews were

conducted on customers who came for their NetBanking or MobileBanking problems and solutions.
 10. DATA ANALYSIS AND INTERPRETATION-

The responses filled by the customers give us following conclusions about their opinion on digital banking

and its usage-

➢ People in the age group of 21-30 yrs, who are mostly salaried persons, prefer App and Mobile

banking over NetBanking.

➢ Businessmen aged 40 or above prefer NetBanking over Mobile Banking.

➢ People who do not use Digital banking have security issues and they believe that in case of loss of

fund, it is bank that would help them.

➢ People aged upto 40yrs; use NetBanking App of all their Bank Accounts.

➢ Customers are not aware of the Digital Banking platforms but more importantly, security issues

prevent them from using Digital banking.

 PART C

11. LEARNINGS FROM SUMMER TRAINING-

During the span of two months, apart from understanding the functioning of entire branch and
understanding inter-dependence of various departments, I understood that the nature of
customers and figured out what were they skeptical of before using Digital banking, for those
who didn’t want to use Digital banking; and those who used, what drove them towards it. I also
understood the behavior of customers with respect to any investment/borrowing decisions that
they had to make. Also, guidance of the seniors and fellow workers gave important insights

11.1. CUSTOMER INVOLVEMENT LEVEL IN DIGITAL BANKING-

✓ 67% of the respondents use digital banking.

✓ Use of Mobile banking and NetBanking differs between age groups.

✓ Customers generally have security issues due to which some don’t use online banking
in any mode. They would rather have their RM do the job for them.

✓ Some High Net-worth Individuals believe that since they have such huge investments
in bank, they don’t to stand at risk by using online banking on their own.

11.2. PROCESS OF OFFERING RIGHT PRODUCT TO RIGHT CUSTOMER-

This process included following steps-

• Need creation and Approaching the customer

• Focusing on the decision maker

• Follow-up to gain customer’s trust

• Closing the call as soon as customer agrees

• After sales service to maintain healthy relationship with customers

12. OBSERVATIONS AND SUGGESTIONS-
I observed and learned followed things about Banking Industry and HDFC Bank in particular-

• The bank focused a lot on new customer acquisitions and retentions. It is completely
customer centric and less employee centric. Employees had to give customers priority and
at times had to go to meetings even after their working hours. The bank demanded them to
do so.

• Customers who seek services which can be easily done through online banking should be
more encouraged to go online than using offline mode. In coming years, with all the
automation and technology fast creeping in, banks will only remain a channel of helping
people through the digital mode. Thus, it is essential for us to practice it from now.

• To increase customer interaction, the bank can organize seminars related to investment and
its benefits. By doing this, they will be able to contact more customers at one time and which
will be beneficial for them. Also, every customer class has a different set of requirements and
invests with different purposes. Thus, they should address such points in the seminar.

• I observed that bank gave lesser importance to BSBDA customers, i.e., to those who had
zero balance accounts with the bank. However, if these customers are tapped and good
relations are maintained then they can also give business to the bank. They can give
smaller amounts, but their number is high. This can also become a differentiating factor
for HDFC bank and help create an image of a socially responsible bank.