A Summer Training Project Report

on

“DIGITALIZATION IMPROVED THE

BANKING SERVICES WITH SPECIAL
REFERENCE TO HDFC BANK”
Submitted in Partial fulfillment of requirement of award of MBA
Degree of GGSIPU, New Delhi

Submitted By: NIKHIL KAPOOR

Enrollment No.:50115603918

Semester: MBA III Semester

Batch: 2018-20

Dr. Akhilesh Das Gupta Institute of Technology & Management

(Affiliated to GGSIPU)

FC-26, Shastri Park, Delhi-110053

 ACKNOWLEDGEMENT

The successful completion of the project would be incomplete without the

mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of
gratitude to my corporate mentor, Mr CHANDAN KUMAR branch manager,
HDFC BANK LTD. I am greatly indebted to him/her for providing valuable
guidance at all stages of the study, constructive suggestions, positive and
supportive attitude and continuous encouragement, without which it
would have not been possible to complete the project.

I would like to take the opportunity to thank and express a deep sense of
gratitude to my Project Guide, Ms. ASHIMA, Assistant professor MBA
Department, Dr. Akhilesh Das Gupta Institute of Technology &
Management, New Delhi who in spite of her busy schedule has co-
operated with me continuously and has provided valuable guidance at all
stages of the study, that has been certainly indispensable for my project
work.

I owe my wholehearted thanks and appreciation to Ms. TeenaAgarwal,

Department Incharge, MBA, for her continuous encouragement and
cooperation during the course of my study.

I express my sincere thanks to Prof. (Dr.) Sanjay Kumar, Director, Dr.

Akhilesh Das Gupta Institute of Technology & Management, New Delhi,
for being a constant source of knowledge, motivation and guidance.

I would also like to convey my warm regards to my family members and

friends for their kind support and helping hand.

Student Name: NIKHIL KAPOOR

Enrollment No.: 50115603918

MBA III Semester, Batch 2018-2019

 TABLE OF CONTENTS
S. No. CONTENTS PAGE
NO.
OBJECTIVE OF THE STUDY
1.

INTRODUCTION TO THE
2. TOPIC
Company Profile
3.
Literature Review
4.
Research Methodology
5.
Data Analysis
6.
Findings &Conclusions
7.
References/ Bibliography
8.
Annexures- to include
9. questionnaire, balance sheets,
tables, reports if any
CHAPTER 1

0
 “ OBJECTIVE OF THE STUDY”

• To identify the awareness and usage of Digital-Banking.

• To study the impact of digitalization.

• To know how much banking services has been improved.

• To study the satisfaction level of the respondents.

1
CHAPTER 2

2
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the
bank performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."

-By H.Wills& J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.

-By Findlay Sheras

Thus
A Bank:

 Accept deposits of money from public.

 Pays interest on money deposited with it.
 Lends or invests money.
 Repays the amount on demand,

3
  Allow the money deposited to be withdrawnby cheque or draft.

ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
was developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700’s
and 1800’s, with many banks created to deal with increasing trade.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks
merged into larger and fewer groups and expanded into other country.

FUNCTIONS OF BANKS
Primary Functions

 Acceptance of Deposits
 Making loans & advances
 Loans

4
  Overdraft
 Cash Credit
 Discounting of bills of exchange

Secondary Functions

 Agency functions
 Collection of cheques& Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

Utility Functions

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveller'scheque letter of credit.
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.

STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking
units contributing to almost 50% of deposits and 60% of advances. The Reserve
Bank of India is the foremost monitoring g body in the Indian Financial sector. It is a
centralized body that monitors discrepancies and shortcomings in the system.

5
Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) –
the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks
in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub
sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks

Industry estimates indicate that out of 274 commercial banks operating in the
country, 223 banks are in the public sector and 51 are in the private sector.

6
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
State co-op Commercial Commercial Banks
Banks and
Banks Banks Primary Cr.
SocietiesSocie
ties

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI, etc
ICICI etc.

State Bank of Other Nationalized Regional

India and its Banks Rural Banks
Subsidiaries

7
CLASIFICATION ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act.
1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These banks
are not in a position to grant long-term loans to industries because their deposits are only
for a short period. The majority of joint stock banks in India are commercial banks which
finance trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
Japan. These banks are established in HAMBURG City of Germany in 1765. In India a
department of post offices functions as a saving banks.

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FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in
their own currency. Thus these banks convert home currency into foreign currency and
vice versa.

INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Some times, they even underwrite the
debentures & shares of big industrial concerns.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty
& responsibility of carrying out the monetary policy formulated by the government.
India's central bank known as the reserve bank of India was set up in 1935.

AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent

9
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTd

INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.

Integration of digital technologies into everyday life by the digitization of everything that
can be digitized.

10
“Digital” is the new buzz word in the banking sector, with banks all around the
globe hopping onto the digital bandwagon. Just like how the introduction of
mobile technology massively disrupted innovation in the banking sector, digital
is now doing the same. Banks of all sizes are making sizeable investments in
digital initiatives in order to maintain a competitive edge. So, what does “digital”
actually mean?

It definitely provides a glimpse into the future of banking. What digital essentially does is
that it uses technology to design experiences, both seen and unseen. “Digital is all about
making what can be seen unseen – making services so smooth and seamless that it
becomes invisible to the customer”. “Despite all the automation and improvements that
digital banking has the potential to achieve, customers and their needs still form the very
core of the banking sector.”

DIGITAL BANKING
MEANING AND DEFINITION

“Digital Banking – a new concept in the area of electronic banking, which aims to enrich
standard online and mobile banking services by integrating digital technologies, for
example strategic analytics tools, social media interactions, innovative payment solutions,
mobile technology and a focus on user experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across all

channels and points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services,
organization, culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

11
Digital Banking is the application of technology to ensure seamless end-to-end
processing of banking transactions/operations; initiated by the client, ensuring maximum
utility; to the client in terms of availability, usefulness and cost; to the bank in terms of
reduced operating costs, zero errors and enhanced services.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,
ii. fewer (or ideally no) errors,
iii. concentrating banking/business specialists in a single centre, who are then
available to clients via a technology link (either on their mobile, pc or via a
kiosk branch).

Operating cost savings of between 20% to 40% could be achieved this way, according to
industry experts. Cutting costs has the opposite effect on profits – they go up.

2. Dumping legacy systems;

i. Make no mistake - one of the biggest drawbacks to going ‘Digital’ is this
irrational clinging to legacy systems (developed in the 1960s and 1970s) that
hold progress back. Banks plead the huge cost of making the change. They are
wrong. The ultimate costs of not making the change are far greater.

Benefits to the customer:

1. Improved services and product offerings;

i. 24/7 bank services and availability through your mobile, pc or kiosk branch,
ii. ‘smart banking’ applications that allow ALL transactions to be completed from
the device of your choice, from beginning to end (with clear instructions and
fail safe mechanisms),
iii. access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),

12
 iv. new useful client services such as warnings, notifications, budgeting,
expenditure analyses, savings programs, calculators (you name it – the range is
endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the client’s needs (not the banks)
vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products
3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Digital banking is set to overtake branch networks as the preferred access channel for
how customers will interact with their bank by 2015.

Online and mobile are preferred channels, particularly for Generation Y customers

13
CHAPTER 3

14
 COMPANY PROFILE

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to
receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI’S liberalization of the Indian Banking Industry.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become “a world class Indian bank”, benchmarking
themselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and compliance. The
objective is to build sound customer franchises across distinct business so as to be a
preferred provider of banking services for target retail and wholesale customer segments
and to achieve a healthy growth in profitability, consistence with the Bank’s risk appetite.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.
 targeted customers and address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

15
Bank logo

Type Private company

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people AdityaPuri (MD)[1]

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking
Private Equity
Finance and Insurance
Consumer Banking
Mortgages

16
 Credit Cards[2]

Revenue ₹74,373.22 crore(US$11 billion)

(2016)[3]

Profit ₹12,817.33 crore(US$1.9 billion)

(2016)[4]

Total assets ₹687,892 crore(US$100 billion)

(2015)[4]

Total equity ₹505.64 crore(US$75 million) [5]

Number of 76,286 (March 2015)[6]

employees

Website HDFCBank.com

Registered Office

HDFC Bank House,

SenapatiBapatMarg, Lower Parel,

Mumbai, Maharashtra – 400013

Management at HDFC
S.No Name Designation

1 ShyamalaGopinath Chair Person

2 PareshSukthankar Deputy Managing Director

17
 3 A N Roy Director

4 KekiMistry Director

5 RenuKarnad Director

6 Umesh Chandra Sarangi Additional Director

7 Mr. AdityaPuri Managing Director

8 KaizadBharucha Executive Director

9 Bobby Parikh Director

10 ParthoDatta Director

11 Malay Patel Director

Other Detail:

Business Group HDFC Group

Listings BSE , NSE , NYSE

ISIN No. INE040A01018

Incorporation 31/12/1994

Public Issue Date 31/12/1995

Promoters
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

18
different market segments and also has a large corporate client base for its housing
related credit facilities.

Distribution Network

HDFCBank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution

network was at 4,014 branches in 2,464 cities. All branches are linked on an online 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.

Technology

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the branch
network and Automated Teller Machines (ATMs).
.
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 Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to 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.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all

19
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, Net Banking and Mobile
Banking.

 Ratings/Awards

Credit Rating

00HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis
& Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4
billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the
rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (ind)" with the outlook on the rating as "stable". I

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced value
creation and corporate governance practices" in future.
Awards and Achievements
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realized 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.

20
2018

IDRBT Banking Technology Excellence Best Bank in Banking Technology

Awards 2018 Excellence for the year 2017-18

Cisco-CNBC TV 18 Digitizing India Award for Innovations in the

Awards Financial Industry & Digital Banking

Dun & Bradstreet Corporate Awards HDFC Bank wins Dun & Bradstreet
2018 Corporate Award 2018 in the Banking
sector

The Financial Express India's Best - Profitability: Rank 1

Banks Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1

Outlook Money Awards 2015 - Best Bank of the year : Runner up

- Winner : Institutional Financial
Distributor of the year

Pension Fund Regulatory and - Best Performing Bank - Maximum

Development Authority awards for Atal APY Subscribers
Pension Yojana - Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector
Banks

Business Today KPMG India's Best Banks 2017

Awards

21
 Barron's World's Top 30 CEOs Mr. AdityaPuri in Barron's Top 30
Global CEOs for 2nd year

IBA Awards HDFC Bank wins prestigious IBA

Banking Technology Awards

Business Today Best Companies to Work for in India

NABARD Award Best Bank in JLG-Bank Linkage

programme in Assam

Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The product of HDFC bank are

Savings Account
Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with
variety of features. The interest rates on the Savings Account are 4% p.a. which is
calculated daily on the end of day balance. The following accounts and their respective
interest rates are mentioned underneath:
 Savings Max Account
 Regular Savings Account
 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account

Salary Accounts

22
The bank offers multiple types of salary accounts to suit the needs of all types of
corporate. The salary accounts offer various features to the accountholders like free
insurance coverage. The different types of Salary Accounts are:
 Premium Salary Account
 Regular Salary Account
 Defence Salary Account
 Salary Family Account

Current Accounts
Current accounts are required by businessmen and professionals who have regular
transactions through the bank. The account deals mainly in liquid deposits and allows
unlimited number of transactions every day like funds being withdrawn or cheques being
written against the account without worrying about the balance in the account.
Professionals, traders, SME businessmen, agricultural businesses can avail various
benefits like fund transfers between all HDFC Accounts, free local collections through
cheque and fund transfers as well as easy inter-city banking. Moreover, the bank also
offers a range of Current Accounts to suit individual preferences like:
 ULTIMA Current Account
 Supreme Current Account
 Apex Current Account
 EZEE Current Account
 Max Current Account
 Agri Current Account
 Current Account for Hospitals and Nursing Homes

Deposits
Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest
rates. HDFC Bank also offers various types of deposit accounts promising high interest
rates for customers seeking deposit accounts. Here are the deposit accounts available with
the bank:

23
  Regular Fixed Deposit
 Recurring Deposit
 5 year Tax Saving Fixed Deposit
 Safe Deposit Locker – the bank also provides the facility of Safe Deposit lockers
for you to store your valuable deposits. The lockers are available in various sizes at
various locations.
Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural
accounts available:
 Basic Savings Bank Deposit Accounts – Farmers
 Kisan Club Savings Accounts

Loans
HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans
are available with the bank:

Personal Loan Business Loan

Home Loan Car Loans

Two-Wheeler Loans Gold Loan

Loan against Assets Educational Loan

Government Sponsored Programs Rural Loans

Credit Cards
The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
24
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank are as follows:
Super Premium Cards- There are 3 variants under the Super Premium Variety which
are:
 Infinia
 Regalia
 Diner’s Club Black

Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and
Times Group which offer special discounts on airline travel through Jet Airways and
offers on dining and movie tickets. The range of co-brand cards includes:
 Jet Privilege HDFC Bank World
 Jet Privilege HDFC Bank Platinum
 Platinum Times Card
 Titanium Times Card

Professional Credit Cards- Credit cards issued specifically to professionals like Doctors
and Teachers with best lounge programs and freedom to fill fuels across any fuel s
respectively. The cards come in two variants:
 Doctor’s Superia
 Teacher’s Platinum

Premium Travel Cards- These cards are specially designed to offer travel related
benefits and discounts. The cards offer reward points which can be redeemed against air
tickets or against dining and also lounge access of airports. The range includes:
 Superia
 AllMiles

Cash back cards- The specialty of these cards is that the card promises cash back on
everyday spends in the form of Reward Points which can be redeemed to get cash back
and also zero fuel surcharge. The range of cash back cards include:

25
  Platinum Edge
 Titanium Edge
 Money Back

Premium Cards- Credit cards which offer premium range of offers and discounts on dining,
entertainment and complimentary access to airport lounges. The premium rage of credit cards
include the following types of cards:
 World MasterCard
 Diners Club Premium
 Diners Club Rewardz
 Visa Signature

Solitaire- A premium card especially for women customers with exclusive offers and
rewards for females.

Platinum Plus Card- It is a regular credit card designed for regular usage offering
Reward Points on everyday spends and also fuel surcharge waiver.

Commercial Cards- Arange of credit cards especially designed for business usage
offering fuel surcharge waiver, lounge access to airports, travel and entertainment
benefits and also air tickets discounts. The range of business cards include:
 Business Platinum
 Business Gold Credit Card
 Corporate Platinum
 Corporate World MasterCard
 Corporate VISA Signature

Debit Cards
HDFC Bank offers Debit cards with every Savings Account to customers which are safer
than carrying cash because they require a PIN every time they are used, they provide

26
great discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used
across almost all outlets for payment. The range of debit cards issued by the bank are:
 EasyShop Platinum Debit Card
 Jet Privilege HDFC Bank World Debit Card
 Easy Shop Titanium Royale Debit Card
 EasyShop Titanium Debit Card
 EasyShop Debit Card
 EasyShop Business Debit Card
 EasyShop Women’s Advantage Debit Card
 EasyShop NRO Debit Card

Demat Account
HDFC Bank issues Demat Account for investors like traders, long term investors as well
as beginners for a flexible and customized solution. The demat account offered by the
bank is safe and dependable for buying and storing a customer’s equity investments,
mutual funds, IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and NCDs.
The account can also be opened online and the types of demat accounts offered are as
follows:
 Demat Account
 2 in 1 Account
 3 in 1 account

Investments
HDFC bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance products and General Insurance Products.
The investment products are further subdivided into the following categories:
 Mutual Funds
 Equities & Derivatives through HDFC Securities Trading Account
 IPO Application through ASBA (Application Supported by Blocked Amount)

27
  Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat pure
gold bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and tamper
proof packing
 Investment in Silver through Mudra Silver Bars which are available in 50g and
100g with Assay Certification and tamper-proof certified packaging.
 8% Savings Bond which are risk-free and can be bought with a minimum
investment of Rs.1000
 Inflation Indexed National Savings Securities – Cumulative (IINSS – C) with a
minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance
HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and the
non-life insurance products are issued in association with HDFC Ergo. The following are
the heads of insurance and their respective plans:

Life Insurance
The list of below mentioned plans range from term insurance, endowment insurance and
money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete
insurance products basket for customers to choose from. The plans available are:

 HDFC Life Click2Protect Plus Plan - an online term insurance plan with varied
options corresponding to benefits payable
 HDFC Life Health Assure Plan - a health plan
 HDFC Life Cancer Care – a health plan specifically designed for diagnosis and
treatment of cancer
 HDFC Life Pension Super Plus – a pension plan which guarantees income after
retirement
 HDFC Life ProGrowth Plus - a unit linked insurance plan
 HDFC Life Classic Assure Plus – a limited premium life insurance plan with
higher protection option

28
  HDFC Life Super Savings Plan – a participating Endowment Assurance plan
with built-in Accidental Death Cover for a comprehensive coverage
 HDFC Life Personal Pension Plus – a pension plan with lifelong pension option
and guaranteed benefit at maturity
 HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to choose
Accidental Death Coverage
 HDFC Life Guaranteed Pension Plan – a limited term premium paying annuity
plan with guaranteed lifetime pension payments
 HDFC Life New Immediate Annuity Plan – an immediate annuity plan wherein
the pension payouts start immediately after payment of the Purchase Price.

Health Insurance
Health Insurance falls under the purview of general insurance and four types of health
insurance plans are offered by the bank which are as follows:
 Health Suraksha – a health plan covering hospitalization, pre and post
hospitalization expenses, day care procedures, domiciliary treatment and organ
donor expenses. The coverage can be taken for an individual and also his family
 Motor Insurance – motor insurance is offered to customers in partnership with
HDFC Ergo and there are two types of motor insurance plans available:
 Commercial Vehicle Insurance – it provides comprehensive coverage for your
commercial vehicle across 1600+ network garages in India
Private Car Insurance – insurance coverage for your private car with cashless
claims across 1600+ network garages. Moreover, the plan also offers discounts
based on age and occupation

Digital Services at HDFC Bank

HDFC Bank provides a very good digital service to the customer for their transaction.
Through these services the customer of the bank can also access their transaction. Digital
services include-

1. Fund transfer

29
HDFC Bank allows various categories of Fund Transfer options for safe and secure fund
transfers which make banking easy. The fund transfer options are:

E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient
and supports fund transfers from any bank branch to any other bank branch anywhere in
India.
RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank
fund transfer in real time which is speedier, faster and has no geographical limits.
Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank
form the comfort of one’s home and the payment is safe and charges at a negligible fee.
IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank
electronic fund transfer service which can be done even on Sundays or Bank holidays or
late at night.

2. Online Banking
With an increasing trend of internet usage, everything has been digitalized and the bank
is not behind in this race. The bank offers the facility of Online banking to its customers
which is safe and reduces unnecessary hassles of visiting the branch to carry out any
transaction. Online banking service offered by HDFC Bank includes:

Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to-
the-second account information, Net Banking manages customer’s account from the
comfort of costumer’s mouse- anytime, anywhere.

Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking numbers in your city to register for Net
banking.

Bank industry leading service provides a host of features at customer finger-tips:

 View Account Balances & statements

 Transfer Funds between accounts

30
  Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills
 Order a cheque Book
 Request stop payment on cheques
 And lots more

Credit Card Net Banking: Through this facility the customer can view the credit card
activities online, pay the credit card bills, view Credit Card Statements online, know the
unbilled transactions and get the complete account information
Email statements: A savings or a current accountholders are eligible to get their account
statements on their email id. The Savings accountholders get a monthly statement and the
Current Accountholders get daily, weekly or monthly statements. The statements are free
of cost and display all the relevant transactions of the relevant period.
Loan accounts online: This feature enables the bank to provide post loan services to the
customers. Loan customers of the bank can log in and view their loan summary,
transaction history and loan account details.

3. Phone Banking
The bank extends banking information to your phone where information is available at
the end of a simple phone call.
The customer can also call the bank and effect transactions over the phone. Transactions
like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and
cheque status, ordering cheque books, stopping cheque payments, credit card related
queries can all be solved by a call to the bank’s phone banking division.
Now your bank account is now just a phone call away. Through Phone Banking you can:

 Check your account balance.

 Enquire on the cheque status.
 Have a mini statement faxed across to you.

31
  Request for a cheque book / Account statement.
 Enquire on your fixed deposits / TDS.
 Open a fixed deposit
 Request for Demand Draft / Managers Cheques.
 Transfer funds amongst your linked accounts
 Pay utility and HDFC Bank Credit Card bills.
 Do stop cheque payments.
 Report loss of your ATM /Debit Card.
 Product information.

4. Mobile Banking
By simply downloading the bank’s app on your smart phone, you can avail of over 75
transactions. The application is secure and fast. Mobile is now your bank! Now access
your bank account and conduct a host of banking transactions and inquiries through your
mobile, with our unique Mobile Banking services.
Mobile Banking is a service that allows you to do banking transactions on your mobile
phone without making a call, using the SMS facility.

Uses of Mobile Banking:

Mobile Banking service provides a host of features at your finger-tips through SMS:

 Get your balance detail

 Obtain your last 3 transactions details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get fixed deposit detail
 Pay your bills
 Insta Alerts

32
Insta Alert is a service through which the bank can proactively inform customers about
transactions / events that occurs in his bank account. This information can be given to the
customers via SMS on their mobile phone, or through an email to their mail id or both.
Alert could either be event based e.g. Salary Credit or Frequency based e.g. Weekly
balance of account. Alerts acts as an important value add in the service that bank provide
to the customers, as it will help in proactively informing the customers about their bank
account related activities. This reduces the load from bank channels like Phone Banking
or branches as customer does not need to call for getting information on Cr/Dr in
accounts. Alerts also increase the Brand Recall of the bank in the minds of customers.

Types of alerts:

The customer can register for any or all of the following alerts.

 Debit transactions greater than Rs 5000 / 10000 / 200000 / 500000

 Credit in account greater than Rs 5000 / 10000 / 200000 / 500000
 Account balance below Rs 5000 / 10000 / 200000 / 500000
 Weekly account balance
 Salary Credits
 Utility bill payment due Alerts
All in all, company will be giving their employees an account that makes banking a
pleasure for them. While corporate save time and money by directly crediting there
employees’ salary nation-wide at one go.

6. Insta Query
Insta query is a service that allows you to do a banking transaction on your mobile phone
without making a call. You can do your transaction using the SMS facility

What can I do using Insta Query?

 Get your balance details

 Obtain your last 3 transaction details
 Request a cheque book

33
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

7. ATM
Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank
almost anytime. To withdraw cash, make deposits, or transfer funds between accounts,
you generally insert an ATM card and enter your PIN. Some financial institution and
ATM owners charge a fee, particularly to consumers who don’t have accounts with them
or on transactions at remote locations. Generally, ATMs must tell you they charge a fee
and its amount on or at the terminal screen before you complete the transaction. Check
the rules of our institution and ATMs you use to find out when or whether a fee is
charged.

Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash
options provide the facility of withdrawing prefixed amounts. Ultra Fast Cash opetion
allows you to withdraw Rs.3000/- in one shot.

Balance Enquiry: Know your ledger balance and available balance.

Mini Statement: Get a printout of your last 8 transactions and your current balance.

Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit
both cash and cheques. / Cash deposited in ATMs will be credited to the account on the
same day (provided cash is deposited before the clearing) and cheques are sent for
clearing on the next working day.

Funds Transfer: Transfer funds from one account to another linked account in the same
branch.

PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card.

34
 Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for
payment of bills, making donations to temples / trusts, buying internet packs, airtime
recharges for prepaid mobile phones and much more…

Others: Request for a cheque book from ATMs and our concerned branch will dispatch it
such that it reaches you within 10 working days.

DIGITAL INITIATIVES

Private sector lender HDFC Banklaunched nationwide campaign to position itself as a

premier digital bank.
Integrated, nationwide brand campaign “HarZarooratPoori Ho Chutki Mein, Bank
AapkiMutthi Mein... the campaign will reinforce bank's position as India's premier digital
bank".
Some initiatives are-
PayZapp– A complete payment solution for all your needs.
Chillr – App to enable customers to send money to any person on phone contact list.
Digital Wallet -to transact on any website for HDFC Bank and non-HDFC Bank
customers.
HDFC Bank Watch Banking– A banking experience on a personalized wearable device
taking consumer’s interaction with the bank to a whole new level.
30-Minute Auto Loan, 15-minute Two-Wheeler Loan.
10-second personal loan disbursement.

HDFC Bank’s PayZapp

HDFC Bank launches Chillr #GoDigital

 Partners with MobME for instant money transfer app

35
 App to enable customers to send money to any person on phone contact list.

HDFC Bank to introduce Digital Wallet #GoDigital

 Available for HDFC Bank customers and all other debit and credit card holders
 Accessible from mobile app and online, as well as enabled with NFC for
contactless payments

HDFC Bank is all set to launch a digital wallet and an electronic marketplace for various
online merchants. Once an account holder or credit card holder registers for a digital
wallet, he can transact on most websites using only his wallet credentials. The wallet will
not be restricted to HDFC Bank customers, but also allow non-HDFC Bank debit and
credit card holders.

36
HDFC Bank is the market leader both as a card issuer and in processing card payments
for merchants, and accounts 40% of e-commerce transactions. With the shift from
desktops to mobile phone, mobile devices account for half of the purchases in terms of
number of transactions.

According to industry estimates, by 2020, 30% of all digital payments will be done using
a digital wallet. HDFC Bank’s new offering, in line with the Go Digital initiative,
attempts to offer the “The future of mobile payments”

HDFC Bank Watch Banking

A Step forward in our journey – Go Digital: Bank AapkiMutthi Mein

In December 2014, HDFC Bank launched its ‘Go Digital – Bank aapkimutthimein’
campaign on the banks of the Varanasi river with an aim to provide holistic banking
services in all possible digital channels. Today, HDFC Bank provides 175+ banking
transactions through its Net banking platform and 80+ transactions through Mobile
banking (Mobile and Tablet apps).

HDFC Bank thought that it was the opportune moment to introduce a new category in
digital banking, leveraging the emerging wearable platforms, and becoming the first bank
in India to launch Watch banking for Apple Watch.

37
Features of HDFC Bank Watch Banking

HDFC Bank will provide a total of 10 banking transactions in the current launch phase.
Some of them being View Account Information, Bill Payments, Recharges, Hot listing
facilities, locate nearest branch/ATM/offer, request statement/chequebook etc. Moreover,
HDFC Bank’s Watch Banking does not require our customers to download a separate
App. Customers can activate Watch Banking from an upgraded version of HDFC Bank’s
Mobile Banking App itself.

DEPARTMENTS AT HDFC BANK

Marketing Department

Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been
pushing result-oriented local and digital marketing since he joined India's second-largest
private bank last year.
HDFC Bank uses technology-led marketing to keep costs low. He launched some 4,000
campaigns and 400 analytical solutions (a 40% y-o-y increase) in the past year to bring in
more customers to the bank and aggressively stepped up its digital presence to increase
business from this channel by over 60%.

Jain, a keen trekker who has run three half marathons (and wishes he had time for more),
is pushing his colleagues to shift away from a centralised marketing function, and think
local by setting up local marketing teams to cater to specific needs of a community or

38
locality. "I want our marketers to focus on the catchment areas around branches and run
campaigns to suit residents or businesses there," he says.

His result-oriented approach is something his rivals and industry watchers admire. "He's
an objective-driven marketer who has been able to effectively leverage technology and
digital programmes," says Sanjay Jain, chief marketing officer of Reliance Capital.
HDFC's Jain stands out for his focus on return on investment and not spread across many
hard-to-measure campaigns, he says.

Finance Department

Finance department is broadly concerned with the acquisition of funds by abusiness firm.
 How large should be the firm and how fast should it grow?
 What should be the mix of firm’s assets?
 What should be the mix of the firm’s financing?
 How should the firm analysis, plan, and control its financial affairs.
Finance is the lifeblood of the organization. Finance management as an integral
part of the overall management is not a totally independent area. It draws heavily on
relatedsubjects and fields of study namely economics, accounting, marketing, production,
andquantitative methods. Following are the main features of financial management.
 The focus of financial management was mainly on certain episodic event like
formation, issuance of capital, major expansion, merger, re-organization, and
liquidation in the life cycle of the firm.
 The outsider’s point of viewed mainly from the point of investment bankers,
leadersand other outside interests.

According to HDFC BANK Ltd.’s AGM on JUNE 1, 2019: -

 Issued 50 crore Redeemable Subordinated Bonds to increase Capital Adequacy
Ratio,which had come down to 11.09% from 12.19%.
 HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on
date of AGM total outlets increased to 134. Bank has plans to increase this
number to 160 by year-end. Ten new outlets are planned for Maharashtra.

39
  Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in
March 2001. These advances were made to corporates with "AAA" rating for
short tenure and Bank has recovered these amounts in the current year.
 Money at call and short notice with banks went up from Rs 487 crore in March to
Rs1,357 crore in March 2001. Bank found this opportunity giving good returns
andfunds were parked with overseas accounts.
 All HDFC Bank branches and head office undergo Concurrent Audit.
 HDFC Bank is the largest issuer of debit cards in the country.
 HDFC’s reported a 80% increase in top line in FY 2001 and 75% increase in
bottom line. The reason for less than proportionate growth in Net Profit is due to
investmentsmade for future growth. Bank sees these years as consolidation

Human Resource Department

“Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations.

MandeepMaitra is the Country Head HR at HDFC Bank.

She has done her B.A. Psychology from lady ShriramColege, Delhi and MBA HR from
Tata Institute of Social Sutdies. The HR department at HDFC bank has 54 people,
including the trainers. The HR department is present in Mumbai, Chennai, Delhi,
Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow. All
people here in HR are MBAs, except for those handling HR operations

40
Responsibilities of Human Resource Department.

 HRD maintain daily attendance record through branch manager via E-mail.
 Take decisions for approval regarding leave notes.
 He takes the decision related to the recruitment, selection and training of the
candidates. He talks to the consultant related to the recruitment of the qualified
candidates. He also does screening of the candidates, shortlist the candidate and takes
the first round of the interview.
Human Resource planning

"Human resource planning is the process of forecasting a firm's future demand

for and supply of the right type of people in the fight number".
The planning process:
HRP essentially involve forecasting personnel needs, assessing personnel supply and
matching demand supply actors through personnel related programmes. The planning
process is influenced by overall organizational objectives and the environment of
business.

Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available
whenever they are needed. Every organization needs employee time by time because of
promotion or retirement of an employee. For this purpose an organization need to search
for the right candidate. And so it needs to encourage this type of right candidates
whenever they require.

Sources of Recruitment

 Personal data of candidates and data bank maintain by the HR.

Department

 Campus Recruitment.

41
  Company’s own website.
 Placement consultants.
 Advertisement in the news papers like Times of India, Gujarat
Samachar.

Recruitment Process

Applicant Profile Shortlist Screening Interview

pool Check

Selection

 Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define as
the process of differentiating between applicants in order to identify and hire those
with a greater likelihood of success in a job.
Selection Process :
Telephonic - interview
Selection Test
Final Interview
Reference & Background
Analysis
Selection Decision
Employment Agreement
Offer Letter
Medical Clarification
Training and Development
 Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic
world of business training is more important there is an ever present need for training

42
 men. So that new and changed techniques may be adopted. A new and changed
technique may be taken as an advantages and improvement affected in the old
methods.
 The time for training program for the candidate is depends up on the relevant position
of his work area. They also provide training related to customer care and
communication.

Wages and Salary

 A part from various incentives and benefits, the personnel are compensated only in
terms of wages and salaries. A proper compensation in terms of this is necessary for
motivation employees for their continuous
 Improved performance. For all this, it is required that wages and salaries areprovided
well by organization.
 Sales executives (coax) are being given salary of 6000 to 8000 per month. While
sales officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also
giving attractive incentives as per the target. The salary of branch manager is around
35000 per month.

Swot Analysis of HDFC Bank

Strengths

 HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATM’s.
 HDFC bank is located in 1,174 cities in India and has more than 800 locations to serve
customers through Telephone banking.
 The bank’s ATM card is compatible with all domestic and international Visa/Master
card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for
HDFC cards to be the most preferred card for shopping and online transactions.
 HDFC bank has the high degree of customer satisfaction when compared to other private
banks.

Weaknesses

43
 HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its direct
competitor is expanding in rural market.
 HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard core
loyals in terms of banking services.
 HDFC lacks in aggressive marketing strategies like ICICI.
 The bank focuses mostly on high end clients.

Opportunities

 HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase.
 The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.
 HDFC has very good opportunities in abroad.
 Greater scope for acquisitions and strategic alliances due to strong financial position.

Threats

 HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though it is a

slight variation it’s not a good sign for the financial health of the bank.
 The non banking financial companies and new age banks are increasing in India.
 The HDFC is not able to expand its market share as ICICI imposes major threat.

44
CHAPTER 4

45
 LITERATURE REVIEW

 Malhotra, Pooja& Singh, (2010) This study is an attempt to present the present
status of Internet banking in India and the extent of Internet banking services
offered by Internet banks. In addition, it seeks to examine the factors affecting the
extent of Internet banking services. The data for this study are based on a survey
of bank websites explored during July 2008. The sample consists of 82 banks
operating in India at 31 March 2007. Multiple regression technique is employed
to explore the determinants of the extent of Internet banking services. The results
show that the private and foreign Internet banks have performed well in offering a
wider range and more advanced services of Internet banking in comparison with
public sector banks. Among the determinants affecting the extent of Internet
banking services, size of the bank, experience of the bank in offering Internet
banking, financing pattern and ownership of the bank are found to be significant.
The primary limitation of the study is the scope and size of its sample as well as
other variables (e.g. market, environmental, regulatory etc.), which may have an
effect on the decision of the banks to offer a wide range of Internet banking
services. The purpose of the study is to help fill significant gaps in knowledge
about the Internet banking landscape in India. The findings are expected to be of
great use to the government, regulators, commercial banks, and other financial
institutions, e.g. co-operative banks planning to offer Internet banking, bank
customers and researchers. The bankers as well as society at large will come to
know where the banks lag in terms of adoption of Internet banking and in
providing different products and services. An understanding of the factors
affecting the extent of Internet banking services is essential both for economists
studying the determinants of growth and for the creators and producers of such
technologies. Moreover, this paper contributes to the empirical literature on
diffusion of financial innovations, particularly Internet banking, in a developing
country, i.e.India.

46
  Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds
that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and
27 public sector banks where majority ownership is included by the government. During
the reform period, the financial system permitted the banks to select their lending rates
and deposits, and also authorizes higher disclosure to make sure of large transparency in
the balance sheets. As a result of reforms in the banking sector the share of entire assets
of public sector banks was decreased to 75 percent from 90 percent. In the private sector,
the new banks entry diminished the concentration of assets which further might have
made the competition stronger which leads to more profitability, productivity, and
enhancing efficiency.

 Dr. Richard Nyangosi (2014) in his study on Topic ‘Digitizing Banking

Services’
finds that-

Internet and mobile technologies of recent years have gained momentum and are
impacting the working of every process including financial services. FinancialService
providers including banks are turning their necks toward the wave of theseTechnologies.
Their findings includes- Adoption of cell phone banking. Out of the respondents
surveyed, 26 percent had adopted cell phone banking in India out of those who adopted,
mostly were young aged. This service too like any other e-banking services is gaining
momentum as customers are finding it easy to bank 24x7. Using different common E-
banking services provided through a cell phone, which included: balance inquiry,
requesting cheque book, know last few transactions, requesting bank statement, stop
payment of cheque, and bill payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample
adopted Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have
proved to be useful to both customers and providers in recent times.

47
 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose
of making business decisions. The methodology may include publication research,
interviews, surveys and other research techniques.

Research Design
A research design serves as a bridge between what has been established (the research
objectives) and how to accomplish these objectives. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for
the collection, measurement and analysis of data. More explicitly, the design decisions
happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
The function of research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money. But how all these can be achieved
depends mainly on the research purpose.

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables.

Sampling Design:

48
For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

.Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer
ask questions in a face to face contact to the other person.

SECONDARY DATAis the data which are available in the form of fact and figures.The
sources of secondary data are:

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

49
CHAPTER 5

50
 DATA ANALYSIS AND INTERPRETATION
1. Different types of account one have in HDFC Bank.

3% 2%

15% Savings Account

Current Account
80% Salary Account
Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving
account, 15% have current account, 3% have salary account and 2% respondents have
other account which include NRI and fixed deposit account in the bank. It means that the
bank has a very good amount of saving account customers as compare to the other
account.

51
2. Time duration of havinga account in HDFC Bank

15% 0-1 Year

33%
27% 1-2 Years

25% 2-3 Years

3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and
more.

52
3. Convenient way for banking.

0%
0%
10%

Branch Banking
Digital Banking
90%

Interpretation:

When the customers are asked about their preference between branch banking and digital
banking 90% customers preferred digital banking and 10% customers preferred branch
banking as a mode of their banking transaction. Above graph reveals their preferences for
the both.

53
4. Use of Digital Banking Services of HDFC Bank.

0%

Yes
No
100%

Interpretation:

Out of the 100 respondents all the 100% of them use digital banking services of HDFC
bank.

54
5. Reasons for choosing Digital banking services.

100%
90%
80%
70%
60%
50% 60 80 68
40%
30%
20%
10%
0% 0

Interpretation:

Out of the 100 respondents 60% use digital banking services for convenience, 80% use to
save time and 68% use due to 24 hour access.

55
6. Reasons for using digital banking.

100%
80%
60% 75 60 24 4 100
40%
20%
0%

Interpretation:

Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile
banking, 24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and
all the 100% of respondents use ATM service.

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7. Purpose of Digital banking services at HDFC Bank.

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use
to pay bill, 78% use to get balance details, 36% use for recharge.

57
8. Awareness of Digital bank initiatives i.e. Go digital..

0%
0%

45%
Yes
55% No

Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank
Go digital initiative while 55% of them are not aware.

58
9. Digital Initiative of HDFC you know about.

100%

80%

60%
88.88 78.33 28.88 44.44
40%

20%

0%
PayZaap Chillr Digital Watch
Wallet Banking

Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers do
not know about Go digital initiative because they are not much aware about this facility.
45% of them are aware about some initiative and out of those 45% customers 88.88%
know aboutPayZaap, 78.33% know aboutChillr, 28.88% know about Digital wallet, and
44.44% know about Watch banking.

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10. Use of Go Digital initiative banking services.

0%

40%
Yes
60%
No

Interpretation:
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and
60% do not use it.

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11. Improvement in HDFC Bank banking services after Digitalization.

0%
0%
2%

Yes
No
98%

Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of
HDFC bank and 2% of the respondents do not think that digitalization has improved the
banking services.

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12. Rate of improvement in the Banking Services.

0%
0%
5 Stars
18% 14%
4 StARS
3 Stars
68%
2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the
banking services, 68% rate it 4 stars, and 18% rate 3 stars.

62
 13. Satisfaction levelwith HDFC Bank Digital Services.

0%
2%

33% Fully Satisfied

Satisfied
65% Somewhat satisfied
Not satisfied

Interpretation:
Satisfaction level is very important for the direct banking channel of bank. In above
graph we can see that 65% Customers are satisfied with HDFC bank digital services,
33% customers are fully satisfied and only 2% are somewhat satisfied. It indicates that
HDFC bank customers have high satisfaction level from the services they get.

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 FINDINGS

 In our study we find that 100% respondents are aware with the ATM facility use
this facility and around 75% of them use internet banking, 60% use mobile
banking, 24% use phone banking. But the awareness of Insta query is only 4%.
 Most of customers believe that Digital banking is more convenient way for
banking and most of them use digital banking in order to save time and also as it
has 24 hour access.
 Customers use digital banking services at HDFC bank mostly for money transfer,
to pay bill, for recharge, online shopping. HDFC bank provides very quick
services to its customers.
 Most of respondents who are not using the Go Digital initiatives of the bank, it is
because they are not much aware about the initiativesof the bank.
 The customer are using the digital banking services for few purpose it means the
use of the digital banking channel is limited for few transaction.
 Most of respondent who are using the digital banking services are satisfied with
the service of the bank for the particular digital banking service.
 The response of the respondents indicates that digitalization has a good and
positive impact on the banking services.
 According to the response of the respondents it shows that digitalization improved
the banking services very much for the customers.

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 CONCLUSION:
 The project speaks about the study of all departments which are present in the
specific branch of the bank. Learn the processes that take place in each
departments.
 The final aim of the project is to study how the adoption of digitalization has
affected the financial status of the bank. It is also crucial to know the profits and
the losses the bank undergoes while adopting this methods.
 During this first half of the project, while studying about the departments, it was
also studied how digitalization was adopted in each department and how it has
benefited both, the customers and the bank officials.
 A survey was made to study how digitalization has helped branch. Customers not
using the digital banking were also convinced to start using the same.
 HDFC bank was the first bank in the banking sector to adopt digitalization and
has won an award for the same.
 Through digital banking, banking is now available to the customers on the tip of
their fingers,vby providing the facility of banking over mobile phones. Even with
a basic phone without internet access, a customer can bank using SMS and
Missed Call Banking. Through mobility, the bank is delivering a greater
flexibility to the customers.
 Hence, now the mobile platform today accounts for the largest share that is 40%
of total value transacted over mobile phones in the country.
 The bank’s website acts as a 24x7 virtual branch. Powered with Search, Select
and Buy features, the site receives 13 million unique visitors a month, making it
one of the most visited financial.

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 SUGGESTION

 Though the Digital Banking is an effective tool but many of the customers are not
using it due to the awareness of the particular digital banking services. Now the
responsibility lies with the bank to make them aware about various Digital banking
channels through publicity and advertisement

 Bank should educate the customer about the usage of digital banking services and
also about their advantages. This would prompt the customers to shift from traditional
brick and mortar channel.

 It has been observed that even the customers who know about digital banking
services are not using this facility due to misconception and lack of information.
These customers should be targeted by the bank and must be convinced to use the
same.

 The result of the study show that customers are using only few servicesof various
digitalbankingservices- for example ATM for view balance and cash withdrawal etc.
Though digital banking provides a full gamut of various services. Customer should be
made aware of these services and must be encouraged to use the same.

 The bank may improve existing facilities in rural areas through advertising, spread
awareness about computer and internet banking.

 The best way to motivate the customer to use digital banking is more efficient
customer care service.

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 LIMITATIONS

There are certain limitations of this project report which are listed below.

 This study is limited only to the customers of the HDFC bank, Lucknow.
 The responses of the customers may be biased.
 Sample size is limited to 100.

67
 BIBLOGRAPHY

 Kotler Philip, marketing management, (Pearson education, 12th edition)

Malhotra K. Naresh, marketing research (An applied orientation), Research
design, (Prentice hall of India pvt. 5th edition)

 T.N Chhabra , Human Resource Management

 Websites

www.hdfcbank.com

www.hdfcindia.com

www.wikipedia.org

www.marketresearch.com

 REPORTS/ARTICLES REFFERED:
 Annual report of HDFC BANK 2018

68
Annexures-

69
 APPENDIX

Questionnaire

NAME……………………………………

GENDER………………………………..

AGE……………………………………

OCCUPATION……………………......

EMAIL ID………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

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Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

Yes No

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Q9. Which Digital Initiative of HDFC you know about?

Pay Zapp Chillr

Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

Yes No

Q11. Do you think HDFC Bank banking services has improved through
Digitalization?

Yes No

Q12. Please rate that how much Digitalization has improved the Banking Services?

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

Q14. Any suggestions or recommendation to HDFC Bank?

72