Professional Documents
Culture Documents
A Project Report On " ": Comparative Analysis of Corporate Salary Accounts With Respect To HDFC Bank
A Project Report On " ": Comparative Analysis of Corporate Salary Accounts With Respect To HDFC Bank
A Project Report On " ": Comparative Analysis of Corporate Salary Accounts With Respect To HDFC Bank
PROJECT REPORT ON
“comparative analysis of corporate salary
Accounts with respect to hdfc bank”
SUBMITTED BY
PROF.
INTERNAL GUIDE EXTERNAL GUIDE
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF
MASTERS IN MARKETING MANAGEMENT
ACKNOWLEDGEMENT
At the start, I would like to express my sincere gratitude to Prof M.V KULKARNI, my
project guide from Indira Institute of Management, Pune – 411033 for successful completion
and correct direction for completion of project work. His continuous guidance during the
I am also thankful to Santosh D Bhagat(Sales Manager, HDFC Bank) for guidance given
I am also thankful to all the respondents and friends who have helped me to conclude the
Date:
Place: Pune.
MMM(2012-2014 Roll no-B-09
2
Declaration
I, the undersigned hereby, declare that the Project Report titled as” Comparative analysis of
corporate salary accounts with respect to HDFC Bank”, submitted by me for partial
fulfillment of Masters in Marketing Management (MMM) is the original record of the project
work carried out by me during the period from 05 june2010 to 31july 2010, under the able
guidance of PROF. M.V KULKARNI internal guide and the same has not formed the
basis for the award of any degree, diploma, association, fellowship, titles in or for any other
3
CERTIFICATE FROM SIMIR
4
CERTIFICATE FROM COMPANY
5
EXECUTIVE SUMMARY
The method for the study carries a lot of significance, as all the result are
dependent on methodology used. A questionnaire was formulated. The
questions were open ended as well as close ended. The questionnaire was
designed in a concise manner, keeping in mind the minimum time to be utilized
while interviewing the respective customers. The questions were arranged in
sequential and logical order involving strutted close ended as well as opened
ended questions. Though there were number of questions in questionnaire, care
was taken that maximum information can be obtained without consuming much
time of the respective persons.
6
I have collected my primary data in the form of questionnaire, discussion,
interview with from Staff member of bank. Some important information I have
collected from manager as well as Branch head of the bank. I have collected
my secondary data from various brochures of the banks, Printed Annual Report
books and website like hdfcbank.com, google.com etc.
During the study of the project it was found that ICICI bank Provide 8 to
8 banking, Bank Of Baroda provide Personal Insurance Up to 1 lakh rupees,
HDFC bank provide CBDT Collection facility. It means that, banks are Started
taking benefits of Technology and improvements in banking sector. Bank
manager or Staff members of banks were hesitates to disclose the information
about their banks salary products. Private Banks and Foreign banks who offer
Zero Balance to open Salary account to customers and Public Banks do not
offer Zero balance to open salary account. With the help of technological
change work has become very systematic, simple and easier to Customers
From the above study it was concluded that, more efforts should be made
to make customer knowledgeable about corporate salary account. Preference
should be given to local language for an effective communication. Bank should
avail various services along with corporate salary account service. Bank should
maintain customer database upgraded from time to time which will help for its
business actualization. Bank should provide many effective and attractive
schemes so as to attract more and more customers. There should be
transparency in charges associated with corporate salary account.
7
TABLE OF CONTENTS
LIST OF TABLES
8
3 No. of Banks offer Various Balances for Opening C.Salary 37
Account with Cheque-Book to their Customers.
4 No. of Banks provides different No. of Cheques to Customers 39
as per their request.
5 No. of Banks Provide ATM Cash Withdrawing limits to their 40
Customers foR Withdrawing cash through his account.
6 . No. of Banks Charge ATM Debit card Annual Charges from 41
their Customers
7 No. of Banks Offer Various Types of Loans to their Customers. 42-43
9
LIST OF GRAPHS/CHARTS
10
3 No. of Banks offers different balances for 36
opening corporate salary Account(without
cheque Book)
4 No. of Banks offers different balances for 37
opening corporate salary Account(with Cheque
Book)
5 Percentage of Banks provided different number 39
of cheques to their customers.
6 No.of Banks Provide ATM cum Debit Card 32
Facility to their Customers for Withdrawing
Cash From Account.
7 No. of banks provide anywhere Cash deposit 33
facility to their Customer.
8 Shows various ATM Cash Withdrawal Limits 40
(per day) given by No. of banks to their
Customers.
9 Percentage of Banks Provide Cheque Payable at 35
par Facility to their customers.
10 No. of Banks Charge ATM Debit card Annual 41
Charges from their Customers
11 No. of Banks Offer Various Types of Loans to 42
their Customers.
12 Percentage of banks Provide past Transaction 44
Record Facility to their customers through E-
mail facility.
Percentage of banks Provide past Transaction 45
13 Record Facility to their customers through
Courier facility.
14 Percentage of banks Provide past Transaction 46
Record Facility to their customers through Fax.
15 Percentage of banks Provide past Transaction 47
Record Facility to their customers through
Handover Delivery facility.
16 Percentage of banks Provide past Transaction 48
Record Facility to their customers through Pass
– Book.
17 Percentage of banks Provide past Transaction 49
Record Facility to their customers through
Touch screen Facility.
18 Percentage of Banks Provide Internet Banking 44
Facility to their Customers.
19 No. of Banks Provide Phone Banking Facility to 50
their Customers.
20 Percentage of Banks Provide Mobile Banking 51
Facility to their Customers.
11
21 No. of Banks Provide SMS Alert Facility to 52
their Customers.
23 No. of Banks Provide Utility Bill Payment 53
facility to their Customers.
24 Percentage of Banks Provide Overdraft Facility 54
to their Customers.
25 Percentage of Banks Provide 8 to 8 Banking 55
Facilities to their Customers.
26 Percentage of Banks Provide Nomination 56
Facility to their Customers.
LIST OF FIGURES
ABBREVIATIONS
12
Abbreviations Full forms
WTO World Trade Organisation
NPAs Non Performing Assets
RBI Reserve Bank of India
ADS American Depository Shares
FIIs Foreign Institutional Investors
NYSE New York Stock Exchange
BSE Bombay Stock Exchange
ATM Automatic teller Machine
DP Depository Participant
POS Point of Sale
CD Certificate Deposit
CARE Credit Analysis and Research Limited
CRISIL Credit Rating Information Services of India
Limited
CBS Core Banking Solutions
DD Demand Draft
SMS Short Messaging Service
RTGS Real time gross Settlement
FD Fixed Deposit
CBDT Central Board of Direct Taxes
TDS Tax deducted at source
1 INTRODUCTION
13
Challenges Ahead
(i) Improving profitability: The most direct result of the above changes is increasing
competition and narrowing of spreads and its impact on the profitability of banks. The
challenge for banks is how to manage with thinning margins while at the same time working
to improve productivity which remains low in relation to global standards. This is
particularly important because with dilution in banks’ equity, analysts and shareholders now
closely track their performance. Thus, with falling spreads, rising provision for NPAs and
falling interest rates, greater attention will need to be paid to reducing transaction costs. This
will require tremendous efforts in the area of technology and for banks to build capabilities to
handle much bigger volumes.
(ii) Reinforcing technology: Technology has thus become a strategic and integral part of
banking, driving banks to acquire and implement world class systems that enable them to
provide products and services in large volumes at a competitive cost with better risk
management practices.
The pressure to undertake extensive computerization is very real as banks that adopt the
latest in technology have an edge over others. Customers have become very demanding and
banks have to deliver customized products through multiple channels, allowing customers
access to the bank round the clock.
(iii) Risk management: The deregulated environment brings in its wake risks along with
profitable opportunities, and technology plays a crucial role in managing these risks. In
addition to being exposed to credit risk, market risk and operational risk, the business of
banks would be susceptible to country risk, which will be heightened as controls on the
movement of capital is eased. In this context, banks are upgrading their credit assessment and
risk management skills and retraining staff, developing a cadre of specialists and introducing
technology driven management information systems.
14
(iv) Sharpening skills: The far-reaching changes in the banking and financial sector entail a
fundamental shift in the set of skills required in banking. To meet increased competition and
manage risks, the demand for specialized banking functions, using IT as a competitive tool is
set to go up. Special skills in retail banking, treasury, risk management, foreign exchange,
development banking, etc., will need to be carefully nurtured and built. Thus, the twin pillars
of the banking sector i.e. human resources and IT will have to be strengthened.
(v) Greater customer orientation: In today’s competitive environment, banks will have to
strive to attract and retain customers by introducing innovative products, enhancing the
quality of customer service and marketing a variety of products through diverse channels
targeted at specific customer groups.
(vi) Corporate governance: Besides using their strengths and strategic initiatives for
creating shareholder value, banks have to be conscious of their responsibilities towards
corporate governance. Following financial liberalization, as the ownership of banks gets
broad based, the importance of institutional and individual shareholders will increase. In such
a scenario, banks will need to put in place a code for corporate governance for benefiting all
stakeholders of a corporate entity.
15
2 COMPANY PROFILE & PRODUCT PROFILE
HDFC Bank was incorporated in August 1994 and currently has an nationwide network of 3,062
Branches and 10,999 ATM's in 1,568 Indian towns and cities. The Housing Development Finance
Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from
16
the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
sliberalization 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.
MISSION:
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.
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.
17
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.
CAPITAL STRUCTURE:
18
Roughly 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the
bank has about 4,47,924 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".
19
23.15%
28.88%
HDFC BANK
17.29% ADS
FIIS
30.68% Others
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
20
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 has a network of 3062 branches in 1845
cities across India. All branches are linked on an online real-time basis. Customers in over
1397 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 centres where the NSE / BSE
have a strong and active member base. The Bank also has a network of 10743 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.
MANAGEMENT:
Mr.C V Vasudev took over as the bank's Chairman in July 6 2010.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
21
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.
BUSINESSES:
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 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 corporate including multinationals,
companies from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional banking solutions to
corporate customers, mutual funds, stock exchange members and banks.
22
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 Bank.
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
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.
23
RATINGS:
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
24
creation for all its stakeholders while adopting sound corporate governance practices is the
highest.
CORPORATE GOVERNANCE:
HDFC Bank's Corporate Governance Policy has been adopted keeping in mind the
importance of attaining fairness for all stakeholders, as well as achieving organizational
efficiency. HDFC Bank recognizes the importance of good corporate governance, which is
generally accepted as a key factor in attaining fairness for all stakeholders and achieving
organizational efficiency. This Corporate Governance Policy, therefore, is established to
provide a direction and framework for managing and monitoring the bank in accordance with
the principles of good corporate governance.
25
AWARDS:
Our single-minded focus on product quality and service excellence has helped us garner the
appreciation of both national and international organizations.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.
2013
Skoch Financial Inclusion Awards 2013- Organisation of the year
The National Quality Excellence Awards-Best customer service result
NASSCOM CNBC–TV18 IT Innovation Award-Best IT driven Innovation in
banking (commercial)
2012
Businessworld Awards for Banking Excellence 2012-Most tech friendly
DSCI Information Technology Award 2012-security leader of the year
Asia money 2012-Best Domestic Bank in india
2011
ICAI Award- Excellence in financial reporting
UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011-Best
performing private bank.
26
2010
FE-EVI Green Business Leadership Award
2009
Asian Banker Best Retail Bank in India Award 2009
Best Innovator of the year award for our MD Mr. Aditya Puri.
2008
HDFC Bank Managing Director Aditya Puri is the CNN-IBN Indian of the
Year
HDFC bank has won the Asian Banker's Best Retail Bank in India 2008
2007
The Asian Banker Excellence in Retail Financial Services Awards -Best Retail Bank
in India
2006
Business Today---- Best Bank in India.
Forbes Magazine-- One of Asia Pacific's Best 50 companies.
Businessworld------ Best listed Bank of India.
The Asset Magazine's Triple A Country Awards------- Best Domestic Bank.
27
2005
Asia money Awards- Best Domestic Commercial Bank
Asia money Awards- Best Cash Management Bank - India .
The Asian Banker Excellence- Retail Banking Risk Management Award in India.
Hong Kong-based Finance Asia magazine- Best Bank India
Economic Times Awards-"Company of the Year" Award for Corporate
Excellence.
The Asset Triple A Country Awards- Best Domestic Bank in India Region - 2005
The Business Today-KPMG Survey- Best Local Cash Management Bank in India
US$11-100m - 2005
The Business Today-KPMG Survey-"Best Bank in India" for the third
consecutive year in 2005.
Economic Times - Avaya Global Connect Customer Responsiveness Awards-"Most
Customer Responsive Company - Banking and Financial Services – 2
28
2.1 Product Profile:
The Indian Banking system has seen sweeping changes over the years. In the short span of
time that they have been in existence, the leading new private sector banks have truly
revolutionized banking in India. There focus on technology and customer convenience has
brought about a paradigm shift in the banking business. While HDFC BANK today has built
stable business that it believes will deliver sustainable value to its stake holders, there are
also many existing opportunities for further growth.
29
HDFC PRODUCT PROFILE
30
Table No. A Shows Product Profile of HDFC Bank
According to present perspective corporate banking has been evolutes into Corporate
Salary account. When one open a HDFC Bank Corporate Salary Account he gives his
employees more than just an account. They get a host of e-Age Banking facilities
such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card,
Bill Pay, Demand Drafts and preferential interest rates on Loans.
It has been divided into five parts according to the need of consumers
31
Premium Account :
Eligibility:
Corporate should have more 50 employees and average salary should more
More than Rs 20,000
32
Classic Account:
Eligibility:
The Classic Salary account is a Zero Balance Account which earns you interest on your
savings from salary at a competitive rate fixed by the bank from time to time. There is no
fee applicable for branch transactions and you receive banking statements once every six
months.
Eligibility:
33
Regular Salary Account:
The HDFC Bank Regular Salary account is a Zero Balance account and comes with
below mentioned features and Benefits.
Eligibility:
Corporate should have more than 15 employee with average salary more than
Rs 10,000.But its variable.
Add-on International debit card for secondary holder (Free for the first year)
Free Personal Accidental Death Cover of Rs. 1 lakh*
Anywhere Banking across our extensive Branch and ATM network
Free Quarterly Account Statements
Free Monthly Account statements by e-mail (Optional)
Free Passbook facility available at home branch for account holders
Free DDs /MCs up to Rs. 25,000 per instrument payable at HDFC Bank branch
locations
Free e-mail alerts (InstaAlerts Facility)
Free Utility payment facility (BillPay)
Free Phonebanking, MobileBanking and NetBanking
Electronic Funds Transfer options (NEFT / RTGS)
34
Defense Salary Account :
This salary account is for defense personnel employed with the Indian armed forces or
the Indian Navy, Rather than collecting your cheque/cash at the end of the month, you
can instruct your salary wing to start crediting your salary to your Defence Salary
Account.
Eligibility:
35
Bank conveniently with facilities like NetBanking, Phonebanking and
MobileBanking – check your account balance, pay utility bills or stop cheque
payments all via SMS.
36
Features or Terminologies or Facilities are provided by HDFC Bank and other banks to their
Customers when they open Salary account with Banks.
Anywhere cash deposit means Banks customers can deposit their money in any
branch of that specific bank and when he deposit the money immediately cash gets
credit to his account. Customer does not have to wait credit to his account. Customers
can enjoy this facility because of Core banking Solution (CBS).
Demand Drafts are the most popular instruments amongst the different modes of
transferring funds from one place to another.Banks issue demand drafts on their
branch at the place of destination of remittance of funds.A demand draft is drawn by
one branch of a bank on another branch of the same bank and is payable on demand
to the person whose name is mentioned therin or according to his order.Banks issue
drafts remitting funds from one place to another.
37
ATM means Automated teller machines are computer based service systems. Any
account holder of a bank who maintains a certain minimum balance can avail of the
facility. It is a card which enables the card holder to withdraw or deposit cash,to
transfer money, order for a cheque book and get information about his account around
the clock, that is 24 hours a day.The automated teller machines are installed in a
number of cities and big towns at important places.ATM benefit the customers in a
number of ways.It facilitates withdrawal of cash within minutes,it saves the precious
time of the customer as he need not go to the branch at which his account is
maintained, it facilitates instantaneous and automatic accounting and reduces the cost
of banking transaction.
6. Loans/E-loans Facility:
Banks Provide different types of loans Facilities to their Customers like Personal,
Medical loan, Educational loan, Pension Loan, Housing Loan etc. Bank lends money
to their Customers for Specific time and Charge interest on that money. E-loan
Facility is Customers request to bank through internet and approval of loan from bank
within Fraction of minutes. It is time Saved Facility.
38
possible through SMS (short Messaging Service) thus they do not incur any airtime
cost.
39
through the mobile phone. So they won’t have to wait in long queues or go through
the hassles of writing out numerous Cheques. On receiving the instruction to pay the
bill, the bill amount will be deducted fro their account.
40
19. CBDT(Central Board of Direct Taxes) Collection Facility:
Central board of direct taxes (CBDT) facility means HDFC Bank accepts Challen of
direct taxes. Direct taxes include payment of tax deducted at source (TDS) on
salaries of Customers, rent and payments to contractors, which are to paid to Income
Tax.
41
Following are the banks which are taken into Consideration For Analysis:
Before Analyzing the Project I have Gone through 45 Bank, 27 Banks are Public Sector
banks, 14 Banks are Private Sector Banks, 04 Banks are Foreign Banks.
42
16. SYNDICATE
BANK
17. PUNJAB
NATIONAL BANK
18. STATE BANK
OF HYDRABAD
19. CORPORATIO
N BANK
20. CENTRAL
BANK OF INDIA
21. CANARA
BANK
22. INDIAN BANK
23. BANK OF
MAHARASHTRA
24. STATE BANK
OF MYSORE
25. STATE BANK
OF INDOREN
26. STATE BANK
OF TRAVANCORE
27. PUNJAB &
SIND BANK
43
Chart No.2 Shows Market share of BANK in INDIA
44
3. RESEARCH OBJECTIVE
REASEARCH METHODOLOGY
RESEARCH LIMITATIONS
The method for the study carries a lot of significance, as all the result are dependent on
methodology used. A questionnaire was formulated. The questions were open ended as well
as close ended. The questionnaire was designed in a concise manner, keeping in mind the
minimum time to be utilized while interviewing the respective customers. The questions
were arranged in sequential and logical order involving strutted close ended as well as
opened ended questions. Though there were number of questions in questionnaire, care was
taken that maximum information can be obtained without consuming much time of the
respective persons.
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to research purpose with economy in procedure.
Since the aim is to obtain complete and accurate information about the corporate salary
account. Thus the process had to be started from the grass root level and it was very
important to understand the market for this product (i.e. corporate salary account).
The entire process is more of a Descriptive Research type and incorporates a formal
study of the specific problems faced by most Banking companies in exploring the
45
opportunities in the untapped market. The research work has been carried out on the basis of
HDFC Banks product preference and evaluation of corporate salary account in the new and
underdeveloped market.
While dealing with this research project data at hand was inadequate and hence it becomes
necessary to collect the data, there were 2 ways used to collect data.
Primary data
Secondary data
1. Primary Data
Primary data is that which are collected “a fresh” and is supposed to be original in
Character. Primary data is gathered in such a way so that need of the researcher can
be fulfilled .On the basis of primary data researcher withdraw some important
conclusion and gives suggestion according.
2. Secondary Data
Secondary Data is that data, which is, collected Prior to the Present Study work. Any
data that is available prior to the commencement of the research Project is called
Secondary data and therefore Secondary is also called as Historical data.
I have collected my secondary data from various brochures of the banks, Printed
Annual Report books and website like hdfcbank.com, google.com etc.
46
3.4 Sampling Techniques
A sample is a microcosm of the population from which it is accepted. It can only be accepted
as accurate within certain limits. Sample must be representative so that valid conclusion
about population can be inferred. However a Sample cannot reflect perfect image of the
population from which it is deans. Sampling plays key role in systematic objective market
surveying.
There are various types of sampling under the head of both sampling methods, while I had
selected Convenience sampling under the head of NON- PROBABILITY sampling.
According to this particular sampling method, I had selected the sample on the basis of my
analysis after considering the banks requirements and conditions which should followed by
the corporate.
Convenience sampling method is used to collect the data.
Convenience Analysis used for Study: - Convenient Analysis of various factors has been
done so that the conclusion can be determined regarding the position of HDFC BANK
among its Competitors in market like ICICI Bank, HSBC Bank, Axis Bank (formerly UTI
Bank), Kotak Mahindra, Yes Bank, Standard Chartered Bank, Citi Bank, IDBI Bank etc.
Features, Facilities, Service Charges, Turnover, deposits, Share of bank in the market are the
main parameters. Which shows the positions of various banks from Public Sector, Private
Sector &Foreign Banks?
Sampling size
Large sample give more reliable result that small samples. How’ve is not important to sample
the entire target population or substantial portion to achieve reliable result.
The sample size was 45 respondents
47
RESEARCH LIMITATIONS:
Any research or study always has some limitations under which this has to be undertaken.
This one too was not an exception. These limitations are poised by the environment … some
external and some inherent. This study has been conducted with utmost consideration to the
adequacy of data and quality of information, The limitation can be enlisted as hereunder:-
48
4. DATA COLLECTION AND DATA
ANALYSIS
4.1 INTERPRETATION OF DATA
TABLE NO.01
Table Showing No. of Banks and Various Balances for Opening Corporate Salary Account without
Cheque-Book to their Customers.
No .Of 23 06 4 12 0
Banks
Graph No: 3 shows No. of Banks offers different balances for opening corporate salary Account
(without Cheque Book)
Comments:-
The above Graph Shows that all the banks Keep their different Criteria to Open Corporate
Salary account without Cheque-Book:- Out of 45 banks;
23 banks who keep 0 Balance to open a Corporate Salary account without Cheque
Book Facility.
06 Banks who keep the Balance between Rs.0-100,
04 banks who keep the balance Between Rs.100-300.
49
TABLE NO.02
Table Showing No. of Banks offer Various Balances for Opening C.Salary Account with Cheque-Book to
their Customers.
No .Of Banks 23 00 1 10 11
Graph No: 4 shows No. of Banks offers different balances for opening corporate salary Account
( With Cheque Book)
50
Comments:-
The Above Graph shows that all the banks Keep their different Criteria to Opening Corporate
Salary account with Cheque-Book, Out of 45 Banks;
23 banks who keep 0 Balance Facility to open an Corporate Salary account with
Cheque Book. There is not a single bank who keeps the balance Between Rs.0-100.
Only 1 bank who keep the balance Between Rs.100-300,10 banks who keep the
balance between Rs.300-500.
11 banks who keep the balance between Rs.500-1000 Balance to open an Corporate
Salary account with Cheque Book.
51
TABLE NO.03
Table Showing No. of Banks provides different No. of Cheques to Customers as per their request.
No. of Banks 11 1 17 16
Graph No: 5 shows Percentage of Banks provided different number of cheques to their customers.
Comments:
From the Above Pie-Chart it has been clear that, Out of 45 Banks,
24 % banks Provide 10 leafs Cheque Book to their customer when they open an
account,
2% banks provide 15 leafs Cheque Book, 3
8% banks Provide 20 leafs Cheque Book &
26% banks Provide 25 leafs Cheque Book to their customers when they open an
account with him. Customer can demand more no. of Cheque-book When Customers
Cheque book get finish.
52
TABLE NO.04
Table Showing No. of Banks Provide ATM Cash Withdrawing limits to their Customers foR
Withdrawing cash through his account.
No. of banks 2 22 15 3 2
Graph No: 6 Shows various ATM Cash Withdrawal Limits (per day) given by No. of banks to their Customers.
Comments:-
The above Graph Shows that,
There are Limitations of Withdrawing cash from account for each & every bank
account Customers.
Out Of 45 Banks; 02 Banks allow their customers to Withdraw the Cash Between
Rs.0-5000/- Per day,
22 banks allow their Customers to withdraw the cash Between Rs.5000-15000/-per
day,
15 no. of Banks allow their Customers to Withdraw the Cash between Rs.15000-
25000 per day,
03 banks allow their Customers to Withdraw the Cash between Rs.25000-50000/- &
There are only 2 banks allow their customers to Withdraw the Cash Between
Rs.50000-75000/- i.e. Yes
\Bank , Citi bank Allow their Customers to Withdraw the Cash Up to Rs.75,000/-
53
TABLE No.05
Table Showing No. of Banks Charge ATM Debit card Annual Charges from their Customers.
No. of banks 25 5 7 8
Graph No: 7 Shows No. of Banks Charge ATM Debit card Annual Charges from their Customers
Comments:-
Above Graph Shows that, Banks Charges are applicable for using ATM-cum-Debit Card.
Out Of 45 Banks; 25 Banks dose not Charge ATM-cum-Debit Card but
05 no. of banks Charge Between Rs.0-50/- ,
07 no .of Banks Charge Between Rs.50-100/- and there are
08 no. of banks who Charge Rs.100 & above Rs.100.
54
TABLE NO.06
Table Showing No. of Banks Offer Various Types of Loans to their Customers.
Loan Facility
No. of 42 41 42 41 30 38
Banks
Graph No: 8 Shows No. of Banks Offer Various Types of Loans to their Customers.
Comments:-
Above Graph Shows that, various types of loans are provided to Customers. Out of 45
Banks, 42 no .of banks Provide Personal loan facility to Customers for their
requirements,
55
41 no .of banks Provide Car loan Facility to Customers,
38 Banks Provide Educational loan Facility to Customers For his child’s Education.
56
TABLE No.07
Table Showing No. of banks Provide past Transaction Record Facility to their customers through
Following ways:-
A) Through E-mail:-
Status Yes No
No.of banks 22 23
Graph No: 09 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through E-mail facility.
Comments:-
While the remaining 51 % Banks do not Provide E-mail Statement Facility to their
Customers.
57
B) Through Courier:-
Status Yes No
No.of Banks 40 05
Graph No: 10 shows Percentage of banks Provide past Transaction Record Facility to their customers
through Courier facility.
Comments:-
From the Above Pie Chart it has been clear that,
While the remaining 11 % Banks does not give courier Statement Facility.
58
C) Through Fax:-
Status Yes No
No.of Banks 07 38
Graph No: 11 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Fax facility.
Comments:-
The Above Chart Shows that
Out Of 45 Banks, Only 16 % of the Banks Provide Fax Statement facility to their
customers as per their request while remaining
84 % do not give fax Statement facility to their Customer.
59
D) Handover Delivery (Physical Statement) Facility:-
Status Yes No
Handover Of 41 04
Statement
Percentage 91% 9%
Graph No: 12 Shows Percentage. of banks Provide past Transaction Record Facility to their customers
through Handover Delivery.
Comments:-
From the above pie chart It has been that
91 % Banks deliver statement of transaction to their customers in their hand when
they visit to Bank,
Rest of the 9 % Banks send statement of record to their customers by courier or post.
60
E) Through Pass-Book:-
Status Yes No
No. of Bank 29 16
Graph No: 13 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Pass Book facility
.
Comments:-
As per the above pie chart it has been clear that,
64 % Banks Provide Pass Book recording Facility of his Past transactions to their
Customers and
Other 36 % Banks do not Provide Pass Book Recording Facility to their customers.
61
F) Through Touch Screen:-
No. of Banks 01 44
Percentage 2% 98%
Graph No: 14 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Touch Screen facility.
Comments:-
From the above it has been clear that,
only 2 % Banks Provide Screen touch Facility to their customers i.e Citi Bank
Provide Screen touch Facility and
Rest 98 % does not Provide Screen Touch Facility to their customer.
62
TABLE No.08
Table Showing No. of Banks Provide Phone Banking Facility to their Customers.
Status Yes No
No. of banks 33 12
80%
70%
60%
YES
50%
NO
40%
30%
20%
10%
0%
YES NO
Graph No: 15 shows No. of Banks Provide Phone Banking Facility to their Customers.
Comments:-
From the above Chart It has been clear that,
Out of 45 Banks,73% no. of banks Provide Phone Banking Facility to their
Customers &
27% banks do not Provide Phone Banking Facility to their Customers. This Facility is
Possible Because of Core Banking Solution (CBS).
63
TABLE No.09
Table Showing No. of Banks Provide Mobile Banking Facility to their Customers.
Status Yes No
No. of Banks 34 11
25%
YES
NO
75%
Graph No: 16 shows Percentage of Banks Provide Mobile Banking Facility to their Customers.
Comments:-
From the above Chart It has been clear that,
Out of 45 Banks, 75% Banks Provide Mobile Banking Facility to their Customers &
25% Banks does not Provide Mobile Banking Facility to their Customers. This
Facility is Possible Because of Core Banking Solution (CBS).
64
TABLE No.10
Table Showing No. of Banks Provide SMS Alert Facility to their Customers.
Status Yes No
No. of Banks 35 10
22%
yes
No
78%
Graph No: 17 Shows No. of Banks Provide SMS Alert Facility to their Customers.
Comments:-
22% Banks does not Provide SMS Alert Facility to their Customers. This Facility is
Possible Because of Core Banking Solution (CBS).
65
TABLE No.11
Table Showing No. of Banks Provide Utility Bill Payment facility to their Customers.
Status Yes No
No.of Banks 31 14
Graph No: 18 Shows No. of Banks Provide Utility Bill Payment facility to their Customers.
Comments:-
66
TABLE No.12
Overdraft Facility
Status Yes No
No. of Banks 21 24
Graph No: 19 Shows Percentage of Banks Provide Overdraft Facility to their Customers.
Comments:-
From the above Chart It has been clear that,
Out of 45 Banks, 47% Banks Provide Overdraft Facility to their Customers &
53% Banks does not Provide Overdraft Facility to their Customers.
67
TABLE No.13
Status Yes No
No. of Banks 13 32
Graph No: 20 Shows Percentage of Banks Provide 8 to 8 Banking Facility to their Customers.
Comments:-
From the above Chart It has been clear that,
Out of 45 Banks, 29% Banks Provide 8 to 8 Banking Facility to their Customers &
71% Banks does not Provide 8 to 8 banking to their Customers. It is additional
Service to customers to enjoy benefit of his transaction.
68
TABLE No.14
Nomination Facility
Status Yes No
No. of Banks 45 0
Percentage 100% 0%
Graph No: 21 Shows Percentage of Banks Provide Nomination Facility to their Customers.
Comments:-
From the above Pie-Chart It has been clear that, Out of 45 Banks, 100% Banks Provide
Nomination Facility to their Customers heritance
69
FINDINGS
1. First thing I found that there are 23 banks who keep 0 balance to open a
corporate salary account without a cheque-book.
2. There are 23 banks who keep 0 balance to open a corporate salary account with
cheque-book.
4. I have observed from the customers point of view and one thing I come to know
about bank is that, Now-a-days banks are Providing Excellent banking facilities
to their customers but there are also some bank who Charge hidden Charges for
service which is rendered to the Customers like ICICI bank Charge Rs.200/- per
annum for Physical Monthly Statement, For Debit Card charges bank charge
Rs.99+service tax@ 12.36% (as per Government rules) from the customers. &
For Debit card bank charge Rs.2/- per leaf for additional Cheque book.
70
HDFC Bank Provide Phone Banking, Net Banking, Mobile Banking Service to
Customers through Phone Banking customers can transfer funds, open a new
Fixed deposit, enquire account balance, Stop payment on Cheque and through
Net banking customer can open a new Fixed deposit, order demand drafts, Pay
their bills, check up-to-the second account balance, transfer Funds and through
Mobile Banking customers can access their accounts through mobile phones so
work as become easier instead of standing in a queue or visit to the bank.
16. There are very few bank providing 8to8 Banking Facility.
71
CONCLUSIONS:
Based on the finding of the comparative analysis of H.D.F.C. Bank with other
competitor Bank I came to the conclusion that H.D.F.C. Bank has come good thing that
its other competitor do not have like,
1.H.D.F.C.Bank has various kind of product in salary account for the all types of
corporate .E.g. H.D.F.C. Bank has classic account for the employee who is working on
contract basis. Other bank do not have that kind of product. product is designed very
well. CEO of corporate will spent much more money in comparison with other
employees. That’s why Bank provided higher cash withdrawal limit to CEO.
2.H.D.F.C.Bank has given the various kind of facilities to their customer which is not
given by other bank like,
a. Accidental cover up to Rs5,00,000 to salary account customer.
b. Account provided on the basis of Income. Different employee get different account.
c. Salary account is designed on the basis of corporate need. Permanent employee will
get different account and Contracted employee will get different account.
3. Salary account is a just like saving account. This is the account by which corporate
disburse the salary of employees. Earlier corporate gives the salary by cheque.That
process was vey lengthy and time consuming. Now the bank providing salary account by
which salary direct credited to the account. These are the thing which attract customers
towards the H.D.F.C. Bank.
72
SUGGESTION
Bank should avail various services along with Corporate salary account service.
Bank should maintain customer database upgraded from time to time which will
help for its business actualization.
Bank should provide many effective and attractive schemes so as to attract more
and more customers.
73
7.ANNEXURES
1. QUESTIONNAIRE
QUESTIONS
Without Cheque-Book :-
2 If a Customer Open an account With Your Bank then how many Cheque
Leafs are provided to them?
74
3 What are the Annual ATM Debit Card Charges to your banks
Customers?
a)Rs.0-50/- b)Rs.50-100/-
a) Yes b) No
Yes No
6 What are the various ways to inform Your Customers about his Past
Transaction Entries?
-Handover Yes No
a)Yes b) No
75
9 Is Your bank Provide SMS Alert Facility to Customers For Knowing him
about his daily transaction entries?
a)Yes b) No
a) Yes b) No
a) Yes b) No
a)Yes b) No
a) Yes b) No
76
7. BIBLIOGRAPHY/REFERENCES
Websites:
www.hdfcbank.com
1. www.google.com
2. www.banks.com
3. www.bankspower.com
4. www.business.com/directory/financial
77
78