Summer Internship Project

Establishing a Strong Digital Footprint

A Project with HDFC Bank Ltd

Submitted in partial fulfillment of the requirements for

Post Graduate Diploma in Management (PGDM)
Academic Year: 2018

Submitted By

JENIL.R.SHAH
Roll No. 50
PGDM-II, Batch: 2017-19

Chetana’s Institute of Management and Research, Bandra (E),

Mumbai 400 051
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 Declaration

I hereby declare that this report submitted in partial fulfillment of the requirement of the
award for the Post Graduate Diploma in Management to Chetana’s Institute of Management
and Research, is my original work and not submitted for award of any degree or diploma
fellowship or for similar titles or prizes.

I further certify that I have no objection and grant the rights to Chetana’s Institute of
Management and Research to publish any chapter/ project if they deem fit in
Journals/Magazines and newspapers etc. without my permission.

Place : Mumbai

Date : 13th July, 2018

Name : Jenil Shah

Class : P.G.D.M.; Sem. – II

Roll No. : 50

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 Certificate

This is to certify that the project submitted in partial fulfillment for the award of Post
Graduate Diploma in Management of Chetana’s Institute of Management and Research is a
result of the bonafide research work carried out by Mr. Jenil Rajat Shah under my supervision
and guidance, no part of this report has been submitted for award of any other degree,
diploma, fellowship or other similar titles or prizes. The work has also not been published in
any Journals/Magazines.

Date: 13th July, 2018

Place: Mumbai

Dr. Sunita Srivastava Project Guide : Prof. Rupesh Shah

Director
CIMR

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 ACKNOWLEDGEMENTS
The internship opportunity I had with HDFC Bank Ltd. was a great learning opportunity and
helped in my professional development. Therefore, I consider myself as a very lucky
individual as I was provided with an opportunity to be a part of it. I am also grateful for
having a chance to meet so many wonderful people and professionals who led me through
this internship period.

I would like to thank our Institute Director Dr. Sunita Srivastava and Prof.Rupesh Shah
for giving me this opportunity to work and guide me in making this project.

Keeping this in mind I am using this as an opportunity to express my deepest gratitude and
special thanks to Mr. Sujith Prasad, Branch Manager, J.B Nagar Branch, who in spite of
being extraordinarily busy with his duties, took time out to hear, guide and keep me on the
correct path and allowed me to carry out my project at their esteemed organization during the
training. I am very grateful to him.

I perceive as this opportunity as a big milestone in my career development. I will strive to use
the skills and knowledge I have gained here in the best possible way, and I will continue to
work on their improvement, in order to attain desired career objectives.

Signature of the Student

Jenil.R.Shah

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 TABLE OF CONTENTS
Page No.

CHAPTER 1 EXECUTIVE SUMMARY 5

CHAPTER 2 INTRODUCTION

2.1 Introduction to the Subject 6

2.2 Introduction to the Industry 10
2.3 Introduction to the Company 22
2.4 Introduction to the Project 39

CHAPTER 3 STUDY/PROJECT DETAILS

3.1 Objective of the Project/Study 49

3.2 Library Reference / Literature Review 50
3.2 Study Methodology 52
3.3 Study Limitations 53

CHAPTER 4 ANALYSIS & FINDINGS 54

CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS

5.1 Conclusions 70
5.2 Recommendations 71

ANNEXURES A Bibliography 74

B Data Recording Format(s) 76

C Questionnaire

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 Chapter 1

Executive Summary

The project undertaken with HDFC bank is about ‘Establishing a Strong Digital
Footprint’, thereby enabling the customers to migrate towards Digital Banking, and also
utilize Digital services offered by HDFC Bank. In these days it’s mandatory that every bank
should invest in digitally services for the customers and HDFC bank is one the pioneers in
providing financial services to its customers through digital channels. This Project is
conducted in one of the retail branch of HDFC Bank which is in ‘J.B Nagar, Andheri’.
The study focuses on the digital services provided by HDFC bank to its customers, how many
customers are aware of and use the digital services, reasons for the usage or non-usage of
digital services, features that customers like the most and use regularly, frequency of using
Net banking services and the level of customer satisfaction, and finally the percentage of
customers who agree with the fact that it is beneficial and therefore necessary to migrate from
Traditional Banking to Digital Banking.
A Survey has been done in order to understand the perception and inclination of customers
towards Digitalization. This survey was conducted in J.B Nagar branch, amongst customers
having an account with HDFC Bank. The sample size was 100 HDFC Bank Customers.
The finding through a survey was 91 % of the customers use the HDFC Digital banking
services and 92% of the customers prefer Digital Banking over Traditional Banking. Out of
customers who use Digital services, 94.5% of customers use Net Banking, making it the most
preferred digital channel. Mobile Banking (80.2%) is also picking up pace and has overtaken
use of ATM services. (76.9%).This shows the HDFC Bank is establishing a strong digital
footprint.
The outcome of Digital banking is that the number of customers visiting bank branch has
reduced as they are able to perform banking transaction without visiting the bank branch.
This report also includes the recommendation which will enable HDFC bank to migrate
traditional bankingcustomers towards Digital banking. Around 91% of the customers agree
that it is beneficial and therefore necessary to migrate from traditional banking to Digital
Banking.

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 Chapter 2
Introduction

2.1 Introduction to the topic

ESTABLISHING A STRONG DIGITAL FOOTPRINT:

The need for computerization was felt in the Indian banking sector in late 1980s, in order to
improve the customer service, book-keeping and MIS reporting. In 1988, Reserve Bank of
India set up a Committee on computerization in banks headed by Dr. C. Rangarajan. 
Banks began using Information Technology initially with the introduction of standalone PCs
and migrated to Local Area Network (LAN) connectivity. With further advancement, banks
adopted the Core Banking platform. Thus branch banking changed to Digital banking. Core
Banking Solution (CBS) enabled banks to increase the comfort feature to the customers as a
promising step towards enhancing customer convenience through anywhere and anytime
banking. Different Core banking platforms such as Finacle designed by Infosys, BaNCS by
TCS, FLEXCUBE by I-flex, gained popularity.  
The process of Computerization gained pace with the opening of the economy in 1991-92. A
major driver for this change was propelled by rising competition from private and foreign
banks. Several commercial banks started moving towards digital customer services to remain
competitive and relevant in the race. 
Banks have benefitted in several ways by adopting newer technologies. E-banking has
resulted in reducing costs drastically and has helped generate revenue through various
channels. As per last available information, the cost of a bank transaction on Branch Banking
is estimated to be in a range of Rs.70 to Rs.75 while it is around Rs.15 to Rs.16 on ATM,
Rs.2 or less on Online Banking and Rs.1 or less on Mobile Banking.  The number of
customer base has also increased because of the convenience in 'Anywhere Banking'.
Digitization has reduced human error. It is possible to access and analyze the data anytime
enabling a strong reporting system. 
RBI has been a guiding force for the banks in forming regulations and giving
recommendations to achieve various objectives. Commercial Banks in India have moved
towards technology by way of Bank Mechanization and Automation with the introduction to
MICR based cheque processing, Electronic Funds transfer, Inter-connectivity among bank
Branches and implementation of ATM (Automated Teller Machine) Channel have resulted in
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the convenience of anytime banking. Strong initiatives have been taken by the Reserve Bank
of India in strengthening the Payment and Settlement systems in banks. 
Current status in the Digital Space 
Indian Government is aggressively promoting digital transactions. The launch of United
Payments Interface (UPI) and Bharat Interface for Money (BHIM) by National Payments
Corporation of India (NPCI) are significant steps for innovation in the Payment Systems
domain. UPI is a mobile interface where people can make instant funds transfer between
accounts in different banks on the basis of virtual address without mentioning the bank
account. 
Today banks aim to provide fast, accurate and quality banking experience to their customers.
Today, the topmost agenda for all the banks in India is digitization.

Source: Banking on Technology, Perspectives on the Indian banking Industry

According to the RBI Report in 2016-17 there are 2,22,475 Automated Teller Machines
(ATMs) and 25,29,141 Point of Sale devices (POS).  Implementation of electronic payment
system such as NEFT (National Electronic Fund Transfer), ECS (Electronic Clearing
Service), RTGS (Real Time Gross Settlement), Cheque Truncation System, Mobile banking
system, Debit cards, Credit Cards, Prepaid cards have all gained wide acceptance in Indian
banks. These are all remarkable landmarks in the digital revolution in the banking sector.
Online banking has changed the face of banking and brought about a noteworthy
transformation in the banking operations.
National Electronic Funds Transfer (NEFT) is the most commonly used electronic payment
method for transferring money from any bank branch to another bank in India. It operates in
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half hourly batches. At present there are 23 settlements. 
Real Time Gross Settlement (RTGS) is primarily used for high-value transactions which are
based on 'real time'. The minimum amount to be remitted through RTGS is Rupees Two
Lakhs. There is no upper limit. 
Immediate Payment Service (IMPS) is an instant electronic funds transfer facility offered by
National Payments Corporation of India (NPCI) which is available 24 x 7. 
The usage of prepaid payment instruments (PPIs) for purchase of goods & services and funds
transfers has increased considerably in recent years. The value of transactions through PPI
Cards (which include mobile prepaid instruments, gift cards, foreign travel cards & corporate
cards) & mobile wallets have jumped drastically from Rs.105 billion and Rs.82 billion
respectively in 2014-15 to Rs. 277 billion and Rs. 532 billion respectively in 2016-17.

Few Trends and Opportunities:

1. Changing consumer behavior in favor of digitalization

As the market is exposed to disruptive digital services, it is now putting its hands on changing
client preference from traditional banking to its digitalization.

Also, India’s demographic dividend is well suited to switch to digital behavior, with the
median age of an Indian expected to be 29 years by 2020 and 900 million population falling
in the age group of 15-60 years by 2025.

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People have actively started using technology to do banking transactions and avail other
services because they want more convenience at the cost of paying additional price.

2. Unpenetrated areas and government initiatives

Around 50% of the non-banked population is targeted and progressing towards the goal of
financial inclusion, around 160 million accounts have been opened under PMJDY (Pradhan
Mantri Jan DhanYojna) with Rs. 500 billion being targeted to be transferred directly under
DBT (Direct Benefit Transfer).

With this much non penetration and government initiatives to push digitalization, banks have
tremendous opportunities and advantages in adopting digital infrastructure.

3. Leveraging increased smartphone usage and mobile penetration

Mobile penetration of around 90% is likely to drive financial inclusion.

Mobile phones are likely to spearhead the digital growth in India, taking into account the
expected level of penetration and because the youth of India prefer to use smart phones rather
than stand in long queues to avail banking services.
The current and expected widespread reach of smart phones in the country provides a
disruptive and low-cost medium, to extend the reach of banking and payments services.

Challenges

 Security Risks - External threats such as hacking, sniffing and spoofing expose banks
to security risks. Banks are also exposed to internal risks especially frauds by employees /
employees in collusion with customers
 Financial Literacy / Customer Awareness - Lack of knowledge amongst people to
use e-banking facilities is the major constraint in India.
 Fear factor - One of the biggest hurdle in online banking is preference to
conventional banking method by older generation and mostly people from the rural areas.
The fear of losing money in the online transaction is a barrier to usage of e-banking.
 Training - Lack of adequate knowledge and skills is a major deterrent for employees
to deal with the innovative and changing technologies in banks. Training at all levels on
the changing trends in IT is the requirement of the day for the banks.

Way Forward
Business Analytics and Artificial Intelligence (AI) has a potential to bring a major change.
Robotics, enabled by AI, is expected to be the future game changer in the banks. Many

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private banks are planning to deploy Robots for customer service, investment advisory and
credit-approval process to improve the services and be cost effective in the long run. Digital
Banking will be the most preferred form of banking in the coming years. 
2.2 Introduction to the Industry

What is a 'Bank?'
A bank is a financial institution licensed to receive deposits and make loans. Banks may also
provide financial services, such as wealth management, currency exchange and safe deposit
boxes.
How Banking Was Started in India?
 Banking in India has started in the 18th century.
 Bank of Hindustan (1770-1832) and General Bank of India (1786-1791) were the
very first banks, which failed later.
 The oldest bank which still have its existence is the State Bank of India, originated
in June 1806 as the Bank of Calcutta, renamed as the Bank of Bengal in year 1809.
Other two banks were the Bank of Madras and the Bank of Bombay.
 In the year 1921, these three banks got merged and become the Imperial Bank of
India and renamed as the State Bank of India (SBI) in the year 1955.
 Before the Reserve Bank of India emerged in the year 1935, the SBI acted as the
central bank.
 In the year 1960, the SBI took control over 8 subordinate banks, now called as
associate banks.
 14 major banks were nationalized in the year 1969 and 6 more banks were
nationalized in the year 1980. These nationalized banks have the control over the
country’s banking sector as they have large network.
 NABARD (National Bank for Agriculture and Rural Development) was established
in July 1982, which looks after the development of the cottage industry, small
industry and village industry, and other rural industries.

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The Indian banking system
The Indian banking system consists of 27 public sector banks, 26 private sector banks, 46
foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural
cooperative banks, in addition to cooperative credit institutions. Public-sector banks control
more than 70 per cent of the banking system assets, thereby leaving a comparatively smaller
share for its private peers.

Reserve Bank of India (RBI)

The country had no central bank prior to the establishment of the RBI. The RBI is the
supreme monetary and banking authority in the country and controls the banking system in
India. It is called the Reserve Bank’ as it keeps the reserves of all commercial banks.

Scheduled Banks
Any bank which is listed in the 2nd schedule of the Reserve Bank of India Act, 1934 is
considered a scheduled bank. The list includes the State Bank of India and its subsidiaries
(like State Bank of Travancore), all nationalized banks (Bank of Baroda, Bank of India etc.),
regional rural banks (RRBs), foreign banks (HSBC Holdings Plc, Citibank NA) and some co-

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operative banks. These also include private sector banks, both classified as old (KarurVysya
Bank) and new (HDFC Bank Ltd).
To qualify as a scheduled bank, the paid-up capital and collected funds of the bank must not
be less than Rs5 lakh. Scheduled banks are eligible for loans from the Reserve Bank of India
at bank rate and are given membership to clearing houses.

Non-scheduled Banks
Non-scheduled banks are those which are not listed in the 2nd schedule of the RBI act, 1934.
Banks with a reserve capital of less than 5 lakh rupees qualify as non-scheduled banks.
Unlike scheduled banks, they are not entitled to borrow from the RBI for normal banking
purposes, except, in emergency or “abnormal circumstances.” Jammu & Kashmir Bank is an
example of a non-scheduled commercial bank.

Commercial Banks
According to the RBI, “Commercial Banks refer to both scheduled and non-scheduled
commercial banks which are regulated under Banking Regulation Act, 1949.” Commercial
banks operate on a ‘for-profit’ basis. They primarily engage in the acceptance of deposit and
extend loans to the public, businesses and the government.

Co-operative Banks
Co-operative banks operate in both urban and non-urban areas. All banks registered under the
Cooperative Societies Act, 1912 are considered co-operative banks. These are banks run by
an elected managing committee with provisions of members’ rights and a set of “communally
developed and approved bylaws and amendments.”
In the urban centers, they mainly finance entrepreneurs, small businesses, industries, self-
employment and cater to home buying and educational loans. Likewise, co-operative banks in
the rural areas primarily cater to agricultural-based activities, which include farming,
livestock’s, dairies and hatcheries etc. They also extend loans to small scale units, cottage
industries, and self-employment activities like artisanship.
Unlike commercial banks, who are driven by profit, co-operative banks work on a “no profit,
no loss” basis. These are regulated by the Reserve Bank of India under the Banking
Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965.

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The major difference between Commercial Banks and Cooperative Banks is their holding
pattern, since cooperatives are registered under the Cooperative Societies Act as cooperative
credit institutions.

Regional Rural Banks

Regional Rural Banks or RRBs, simply put, serve the rural areas and agricultural sectors with
basic banking and adequate financial services. They were set up in 1975, based on the
recommendations of a committee. Based in Moradabad, Prathama Bank, established on 2
October 1975, is the first RRB to open in India. It was sponsored by Syndicate Bank. The
RRBs are owned by the central government (50%), the state government (15%) and the
sponsor bank (35%). Several commercial banks have sponsored RRBs. Prominent examples
include the Maharashtra Garmin Bank (sponsored by the Bank of Maharashtra) and the
Himachal Gramin Bank (sponsored by Punjab National Bank). RRBs were set up to eliminate
other unorganized financial institutions like money lenders and supplement the efforts of co-
operative banks

Types of Scheduled Commercial Banks

Public Sector Banks

These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

Private Sector Banks

These are banks majority of share capital of the bank is held by private individuals. These
banks are registered as companies with limited liability. Examples of private sector banks are:
ICICI Bank, Axis bank, HDFC, etc.

Foreign Banks
These banks are registered and have their headquarters in a foreign country but operate their
branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard
Chartered Bank, etc.

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Regional Rural Banks
Regional Rural Banks were established under the provisions of an Ordinance promulgated on
the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient
institutional credit for agriculture and other rural sectors. The area of operation of RRBs is
limited to the area as notified by GoI covering one or more districts in the State.
RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27
scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is
shared by the owners in the proportion of 50%, 15% and 35% respectively.

Banking Sector in India:

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII).*
Market Size

 The Indian banking system consists of 27 public sector banks, 22 private sector banks,
44 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550
rural cooperative banks, in addition to cooperative credit institutions. Bank credit
grew at 12.64 per cent year-on-year to Rs 85.511 lakh crore (US$ 1,326.78 billion) on
May 11, 2018 from Rs 75.91 lakh crore (US$ 1,131.47) on May 12, 2017.

Investments/developments:

Key investments and developments in India’s banking industry include:

 The bank recapitalization plan by Government of India is expected to push credit

growth in the country to 15 per cent and as a result help the GDP grow by 7 per cent
in FY19.
 Public sector banks are lining up to raise funds via qualified institutional placements
(QIP), backed by better investor sentiment after the Government of India's bank
recapitalization plan and an upgrade in India's sovereign rating by Moody's Investor
Service.
 The total value of mergers and acquisition during FY17 in NBFC diversified financial
services and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million
respectively.
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  The biggest merger deal of FY17 was in the microfinance segment of IndusInd Bank
Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion.
 In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs 96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion. (US$ 1.03 billion)

Government Initiatives:

 A new portal named 'UdyamiMitra' has been launched by the Small Industries
Development Bank of India (SIDBI) with the aim of improving credit availability to
Micro, Small and Medium Enterprises' (MSMEs) in the country.
 Mr. ArunJaitley, Minister of Finance, Government of India, introduced 'The Banking
Regulation (Amendment) Bill,2017', which will replace the Banking Regulation
(Amendment) Ordinance, 2017, to allow the Reserve Bank of India (RBI) to guide
banks for resolving the problems of stressed assets.
 Under the Union Budget 2018-19, the government has allocated Rs 3 trillion (US$
46.34 billion) towards the Mudra Scheme and Rs 3,794 crore (US$ 586.04 million)
towards credit support, capital and interest subsidy to MSMEs.
 In March 2018, the Government of India launched Pradhan
MantriVayaVandanaYojna (PMVVY) to provide elderly people Rs 10,000 (US$
155.16) pension per month. This scheme has an investment limit of Rs 15 lakh (US$
23,273.86).
 In May 2018, the Government of India provided Rs 6 trillion (US$ 93.1 billion) loans
to 120 million beneficiaries under Mudra scheme.
 As on January 4, 2018, the Lok Sabha has approved recapitalization bonds worth Rs
80,000 crore (US$ 12.62 billion) for public sector banks, which will be accompanied
by a series of reforms.

The government and the regulator have undertaken several measures to strengthen the Indian
banking sector.

 A two-year plan to strengthen the public sector banks through reforms and capital
infusion of Rs 2.11 lakh crore (US$ 32.5 billion), has been unveiled by the
Government of India that will enable these banks to play a much larger role in the
financial system and give a boost to the MSME sector. In this regard, the Lok Sabha
has approved recapitalization bonds worth Rs 80,000 crore (US$ 12.62 billion) for
public sector banks, which will be accompanied by a series of reforms, according to
Mr. ArunJaitley, Minister of Finance, Government of India.
 The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been
passed by Rajya Sabha and is expected to strengthen the banking sector.

Road Ahead:

Enhanced spending on infrastructure, speedy implementation of projects and continuation of

reforms are expected to provide further impetus to growth. All these factors suggest that
India’s banking sector is also poised for robust growth as the rapidly growing business would
turn to banks for their credit needs.
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Also, the advancements in technology have brought the mobile and internet banking services
to the fore. The banking sector is laying greater emphasis on providing improved services to
their clients and also upgrading their technology infrastructure, in order to enhance the
customer’s overall experience as well as give banks a competitive edge.
Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-
less credit and debit cards in the market shortly. The cards, which use near field
communication (NFC) mechanism, will allow customers to transact without having to insert
or swipe.
Mr. Bill Gates, Co-founder of Microsoft Corp, has stated that India will move quite rapidly to
a digital payments economy in as little as seven years, based on the introduction of digital
payment banks combined with other things like direct benefit transfers, universal payments
interface and Aadhaar.

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INDIAN BANKING SECTOR HAS GROWN AT A HEALTHY PACE:

 Credit off-take has been surging ahead over the past decade, aided by strong economic
growth, rising disposable incomes, increasing consumerism & easier access to credit
 As of Q3 FY18, total credit extended surged to US$ 1,288.1 billion.
 Credit to non-food industries increased by 9.53 per cent reaching US$ 1,120.42 billion in
January 2018 from US$ 1,022.98 billion during the previous financial year.
 Demand has grown for both corporate & retail loans; particularly the services, real estate,
consumer durables & agriculture allied sectors have led the growth in credit.During FY06–
17, deposits grew at a CAGR of 11.71 per cent and reached US$ 1.6 trillion by FY17.
Deposits at the end of Q3 FY17-18 stood at US$ 1.7 trillion.
 Strong growth in savings amid rising disposable income levels are the major factors
influencing deposit growth.
 Access to banking system has also improved over the years due to persistent government
efforts to promote banking-technology and promote expansion in unbanked and non-
metropolitan regions.
 At the same time India’s banking sector has remained stable despite global upheavals,
thereby retaining public confidence over the years.
 Deposits under Pradhan Mantri Jan DhanYojana (PMJDY), have also increased. Rs
81,203.59 crore (US$ 12.59 billion) were deposited and 316 million accounts were opened in
India.

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SUCCESS STORIES IN THE INDIAN BANKING SECTOR:

 HDFC BANK:

• Established in 1994, HDFC Bank is the 2nd largest private sector bank in India. HDFC was
amongst the 1st to receive an 'in principle' approval from the RBI to set up a bank in the
private sector
• Divisions – Retail banking, Wholesale banking and Treasury operations.
• Size – Number of branches & extensions (FY17): 4,715.
• Number of ATMs: (FY17) 12,260.
• Number of Employees (FY17): 84,325.
• Total Assets (FY17): US$ 133.89. Billion.

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  Recognition:

• In 2017, HDFC Bank was awarded ‘Best Bank of the Year’ by Business India 19th Best
Bank survey.
• In 2017, HDFC Bank was awarded ‘Best Private Sector Bank’ by Dun & Bradstreet
Banking Awards 2017.
• In 2017, HDFC Bank was a part of Forbes' List of 5 Companies that have shaped Asia, And
the World.

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2.3 Introduction to the Company

Established in 1994, Housing Development Finance Corporation Ltd (HDFC) Bank is an

Indian financial services company based in Mumbai, Maharashtra. The bank is the first of its
kind to receive an in-principle approval from the Reserve Bank of India (RBI) for
establishment of a bank in the private sector. The Bank transacts both traditional commercial
banking as well as investment banking.
The various divisions of the bank include
1. Retail banking
2. Wholesale banking
3. Treasury operations.

HDFC Bank’s Mission/Vision: -To be a “World Class Indian Bank”

Benchmarking itself against international standards and best practices in terms of product
offerings, technology, customer service levels, risk management, audit and compliance.

Objective: -To build sound customer franchises across distinct businesses 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: - Based on five core values:
1. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People

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5. Sustainability
Year of Establishment
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of RBI’s liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', as the
first Indian private bank, with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

Rank in the Industry

HDFC Bank is India’s second-largest private sector lender by assets. It is the largest bank in
India by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top
100 Most Valuable Global Brands

Location
HDFC Headquarters: - HDFC Bank House, SenapatiBapat Marg, Lower Parel (West),
Mumbai - 400013.

Awards andAchievements: 2018

BrandZ's Top 100 Global Brands List HDFC Bank featured for the fourth time in the
BrandZ's Top 100 Global Brands List
Dun & Bradstreet BFSI Awards 2018 India's Leading Bank - Private sector
National Payments Excellence Awards HDFC Bank wins NPCI National Payments
2018 Excellence Awards
14th Visa Asia Pacific Security India and South Asia Champion Security Award
Summit 2018
Business Today Best Bank Awards -Bank of the Year
-Best in Innovation

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 -Best Large Bank
-Fastest Growing Large Bank

Federation of Indian Export Best Bank : Export Finance - Non MSME

Organisation (FIEO)

Dun & Bradstreet Corporate Award

2018 Best Bank

Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global CEOs
for 4th year - Growth Leaders Category
Euromoney Private Banking and - Net-worth-specific services (High Net Worth
Wealth Management survey 2018 Clients US $ 5-30 MN)
- Asset Management
- SRI/Social Impact Investing
- International Clients
10th BW Businessworld-PwC Best - Fastest Growing Large Bank
Banks' (2017) Survey - Best Large Bank
- Lifetime Achievement Award - Mr. Aditya Puri

Employees

The Bank had 84,000 employees as on March 31, 2017.

Leadership team of HDFC bank

Sr.N Picture Name

o
1. Managing Director :- Mr. Aditya Puri

Mr. Aditya Puri holds a Bachelor's degree in

Commerce from Punjab University and is an
Associate Member of the Institute of Chartered
Accountants of India.

Prior to joining the Bank, Mr. Puri was the Chief

Executive Officer of Citibank, Malaysia from 1992
to 1994.

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 Mr. Puri has been the Managing Director of the
Bank since September 1994. Mr. Puri has nearly 40
years of experience in the banking sector in India
and abroad.
Country Head - Branch Banking: - Mr.
2. NavinPuri

Mr. NavinPuri holds a Bachelor of Commerce

degree from Calcutta University and is a member of
the Institute of Chartered Accountants of India. He
has also received a Master of Business
Administration degree from the Texas University,
U.S.A. Mr. Puri has 18 years of banking
experience. He has been with the Bank since
February 1999. He currently heads the Retail
Branch Banking business and is also the Business
Head for Retail Current Accounts of the Bank.
Country Head - Equities and Private Banking:-
3 Mr. AbhayAima

Mr. AbhayAima is the Country Head- Global

Consumer Business, Private Banking &
Distribution, Direct & Digital Banking, Retail
Liabilities at HDFC Bank.
With over 25 years of experience in the capital
markets and financial service industry, he has been
a strong pillar for HDFC Bank's advisory business.

Group Head (Marketing, Credit Cards and

4 Payments business): - Mr. Parag Rao

Mr. Rao joined the Bank from IBM Global Services

in April 2002. He has over 25 years of experience
in the industry. He has completed Bachelor of
29
 Engineering from Regional Engineering College,
Jamshedpur and master’s in management studies
degree from S.P Jain Institute of Management,
Mumbai University.

Over the years, the Bank’s Payment Business has

grown to be a leader with a market share of over 40
per cent. It also has one of the lowest delinquencies
in the industry.

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

Wholesale Banking
The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and Agri-based
businesses. For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured solutions,
which combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates including
multinationals, companies from the domestic business houses and prime public-sector
companies. It is recognized as a leading provider of cash management and transactional
banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various

30
treasury products are provided through the bank’s Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

Retail Banking
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

Products of HDFC Bank

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

31
  Regular Savings Account
 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Basic Savings Bank Deposit Account
 Institutional Savings Account
 BSBDA Small Account

Salary Accounts
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
 Defense Salary Account
 Salary Family Account
 Classic Salary Account
 Reimbursement Account
 Basic Savings Bank Deposit Accounts – Salary

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     

32
  Supreme Current Account
 Apex Current Account
 EZEE Current Account
 Max Current Account
 Agri Current Account
 Plus Current Account
 Current Account for Hospitals and Nursing Homes
 Trade Current Account
 Current Account for professionals
 Premium Current Account
 Merchant Advantage Plus Current Account
 Regular Current Account
 Merchant Advantage Current Account
 Flexi Current Account
 Institutional Current Account

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:
 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:

33
  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
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The ranges 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

34
  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:
 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.
35
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
 Corporate Card
 Purchase Card
 Distributor Card

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 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
 EasyShop Imperia Platinum Chip Debit Card
 EasyShop Gold Debit Card
 RuPay Premium Debit Card

36
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)
 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
 Sec 54 EC – Capital Gains Bond with a maximum investment of 50 lakhs and tax
exemption on capital gains
 Inflation Indexed National Savings Securities – Cumulative (IINSS – C) with a
minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance

37
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 SL ProGrowth Super II – a Unit Linked Plan giving the dual benefit of
insurance and market linked growth for wealth appreciation
 HDFC SL YoungStar Super Premium – a Unit Linked Child Plan taking care of
your child’s future while at the same time giving increased benefits in the form of
market linked returns.
 HDFC Life ProGrowth Plus -  a unit linked insurance plan
 HDFC Life Classic Assure Plus – a limited premium life insurance plan with higher
protection option
 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

38
  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
 HDFC Life Smart Woman Plan – an award winning insurance cum investment plan
designed for women for covering their life as well as maternity expenses, congenital or
malignant female-specific cancers
 HDFC Life Invest Wise Plan – a single premium ULIP plan for wealth
maximization without having to pay regular premiums
 HDFC Life Single Premium Pension Super Plan – a single pay pension plan with
market linked returns and an assured benefit of 101% of premiums paid on vesting or
maturity
 HDFC SL Crest – a simple insurance plan which can be taken by filling up a Short
Medical Questionnaire
 HDFC Life Super Income Plan – a participating guaranteed benefits plan which
pays regular incomes in the payout period of 8-15 years
 HDFC Life Sanchay – a traditional life insurance plan with a limited premium
paying term
 HDFC Life YoungStarUdaan – a child insurance plan which can be either availed as
an Endowment Plan with lump sum benefit at maturity or money back plan with
benefits paid out in instalments during the last 5 policy years
 HDFC SL ProGrowthMaximiser – a single pay unit linked plan with no limit on the
maximum premium investment
 HDFC Life Click2Invest ULIP – a unit linked plan available online
 HDFC Life SampoornaSamridhi Plus Plan – a limited payment endowment
assurance plan wherein the cover can be extended for up to 100 years
 HDFC Life SampoornaNivesh – a traditional insurance plan with single, regular or
limited premium paying options

Health Insurance

39
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 with
treatments in a network of 4800+ hospitals.
 Critical Illness Silver Plan – a health plan specifically designed for treatment of
critical illnesses covering 8 critical illnesses in its scope of coverage
 Critical Illness Platinum Plan – a critical illness plan which covers 15 critical
illnesses and provides the benefit upon diagnosis of the covered illness
 Individual Personal Accident Plan II – a personal accident plan which can be taken
for self and family and covers hospital expenses, injuries, disability due to accident
with a coverage range of 2.5 lakhs to 15 lakhs
 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
 Two –Wheeler Insurance – an insurance plan for your two-wheeler with a provision
of cashless claim across 1600+ network garages throughout the country.
 Travel Insurance – an insurance plan for domestic and international travel be it for
business or leisure purposes. The plan covers emergency medical expenses, emergency
medical evacuation, repatriation of remains, emergency dental expenses, hospital cash,
accidental death and permanent total disability while flying in a common carrier,
personal accident, flight delay, loss of baggage and personal documents, delay of
checked-in baggage, personal liability, financial emergency assistance, contingency
travel benefits and hijack distress allowance.
 Home Insurance – an insurance policy issued to protect the home as well as its
contents. The plan covers risk against fire, lightning, explosion, flood, inundation,
storm, riot, strike, earthquake, terrorism, burglary and theft with coverage for 1-5 years.

40
SWOT Analysis
Strength: -
 HDFC 2nd largest private sector bank
 HDFC Bank has over 4715 branches and over 12260 ATMs, in more than 2657 cities
in India
 Existing CBS across its branches
 Huge employee base
 Fast Internet Banking Service provider
 HDFC bank has been responsible for several CSR activities and has also been
recognized with several banking awards
 Offering several services like online banking, app, mobile banking, NRI services etc.
 Customer Friendly approach
 NPA is less as Compare to its Competitors

Weakness: -
 Rural penetration is low for HDFC as compared to nationalised banks
 Competition from public sector and private sector banks means limited market share
growth
 High Charges
 HDFC bank Lacks In aggressive Marketing Strategies like ICICI bank
 Focus more on High end clients

41
Opportunities
 Large Scope in rural Market
 Target Middle and lower middle class
 HDFC has good opportunities in Abroad
 Greater scope for acquisitions and strategic alliances due to strong financial position

Threats
 Competitors increasing their business can adversely affect HDFC's business
 New banking licenses and regulations can impact operations
 Better products and service by competitors i.e. ICICI bank
 Foreign banks that offer better products and services

42
2.4 Introduction to the Project

43
HDFC Bank’s Digital Banking is the online banking services offered by the bank to its
largest number of customers. This service can be accessed from anywhere any time allowing
the customers to control their funds. Moreover, it is completely safe as the bank utilizes the
most advanced technologies and infrastructures. HDFC provides a host of features such as
view a/c balances & statements, transfer funds between accounts, create fixed deposits
online, request a demand draft, pay bills, order a cheque book, request stop payment of a
cheque, apply for a personal loan or an auto loan or many more. Moreover, HDFC bank also
offers to their corporate clients E-Net, a fully secured internet based online, real time
electronic delivery channel, and providing convenient and secure access to their banking
information over the internet. E-Net allows multi-branch connectivity and can integrate with
heterogeneous core bank end system across branches in India. Hence, HDFC bank and
DIGITAL BANKING goes hand in hand where this bank is trying its best every-day to
transform itself completely to a digital banking platform by introducing various types of
digital services like net banking, phone banking, SMS banking, watch banking various
mobile banking applications like CHILLR application, PAYZAPP and many more to come
through their technological innovations where its customers will carry out all their
transactions online through various digital products at their convenience and without even
visiting the branch of the bank. Therefore, Digital Banking is intertwined with HDFC Bank
which is aiming to become a pioneer in providing financial services to its customers through
digital channels.

Digital services provided by 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

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

44
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.
Net Banking offers a host of banking transactions from the comfort of the customer’s home.
One can check the bank account balance, book a Fixed or Recurring Deposit, recharge the
mobile or DTH Connection, paying off utility bills, paying taxes, applying for IPO, invest in
Mutual Funds online to name a few. The process is fast and completely secured without
having to worry about any fraud or theft.
Bank industry leading service provides a host of features at customer finger-tips:
 View Account Balances & statements
 Transfer Funds between accounts
 Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills

45
  Order a cheque Book
 Request stop payment on cheques
 And lots more

Benefit of Net Banking

Internet Banking is the most convenient and powerful way to manage customer’s account.
Net Banking is Real Time, giving them up-to-the-second details on customer’s account. It
can be accessed anytime, from anywhere, giving them complete control over their finances.
There are no queues to stand in, or turn to wait for. With Net Banking you are in control.
HDFC Bank’s Net Banking is secure. Using industry-standard technologies and
infrastructure, our service gives you peace of mind. So next time you think of visiting your
branch, switch on your PC instead. View the Net Banking Demo and see how easy it is it use.

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:

46
  Check your account balance.
 Enquire on the cheque status.
 Have a mini statement faxed across to you.
 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

47
How does it work?
Mobile Banking works through a set of text massages (SMS). With SMS you can perform a
wide range of query-based transaction from your Mobile Phone, without even making a call.
All you need to do is to type in the specified code for the transaction as a text massage and
send 5676712.
See designated codes for GSM Phone.
See designated codes for Reliance India mobile Phones.
You will receive the response in form of a text message on your mobile phone screen within
a few seconds.

How is this different from making a call on mobile phone or using Phone Banking?
The differences between making a call on mobile phone and sending a text message are as
follows:
You are not required to dial a number; you send a text message i.e. a coded message to
5676712
HDFC Bank does not charge anything for this service and there is no airtime involved.
However, the Cellular Service Provider may levy a nominal charge for the SMS facility.
In Mobile Banking, you actually see your banking transactions on your mobile phone screen
as opposed to hearing a message through the phone.
How do avail of this service?
a) If you are opening an account with the bank, you can apply for MobileBanking through
the account opening document.
b) If you already have an account with the bank, you can apply for MobileBanking through
the combined Direct Banking Channels form. You can download the form and call for a sales
representative. Alternatively you can fill this form and hand it over to your nearest branch.
c) If you already have an account with the bank and if you are registered for Net Banking
services, then you can register online using the 'Mobile Banking Registration' option
available inside Net Banking.
Does it cost anything?
No, this service is brought to you FREE from HDFC Bank. Also, since you are using the text
messaging service from your mobile phone, you do not incur any airtime charges in making a

48
phone call from your mobile phone. However, the Cellular Service Provider may levy a
nominal Value Added Services (VAS) charge for the SMS facility.

5. Insta Alerts
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.
SMS & Email – your account transactions also generate a SMS or email alert where any debit
transaction, credit transaction and maintenance of account balance is alerted to the customer
if registered.
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?
49
 Get your balance details
 Obtain your last 3 transaction details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

How does it work?

Insta Query works through a set of text messages (SMS). With SMS you can perform a wide
range of query-based transactions from your mobile phone, without even making a call.
All you need to do is to type in the specified code for the transaction as a text message and
send it to 5676712.
You will receive the response in the form of a text message on your mobile phone screen
within a few seconds

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.
It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by far the
largest investment ever made in electronic self-service by financial institutions. Over US$ 40
billion has been invested in simply buying these machines and many times that in running
them. There are now over 1.1 million machines operating in over 140 countries worldwide.
The banks are losing the cashier’s checks, check cashing and even cash dispensing to the c-
stores and grocery stores. They are asleep at the switch and watching more transactions walk

50
away to convenience stores and supermarkets that provide 24 hour access and integrated
transactions.
ATMs do provide a larger set of functions, such as check cashing, ticket sales or money
orders. We already know that cash dispensing as a dedicated function is a sustainable
applications, the question is whether that application can be incorporated successfully into a
more complex consumer product that offers multiple applications.
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 option 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.
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.

HDFC Bank launched 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.
51
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.

Traditional vs modern banking:

To establish a strong digital footprint, a clear view regarding the traditional and modern
banking was required. Through observation and research, these following points of
differentiation came to light.

Basis of
Traditional Banking
Difference
Banks exist physically for
Presence
serving the customers,
It consumes a lot of time as
customers have to visit banks to
carry out bank transactions like
Time
— checking bank balances,
transferring money from one
account to another.
People have to visit banks only
Accessibility
during the working hours.
Security
Traditional banking does not
encounter e-security threats.
Customers who often travel
Finance
abroad cannot pay close attention
Control
and control of their finances.
Expensive Customers have to spend money
for visiting banks.
52
Internet Banking
Internet banks do not have physical presence
as services are provided online.
It does not consume time as customers do
not have to visit banks to check bank
balances or to transfer money from one
account to another. Customers can access
their account readily from anywhere with a
computer and internet access.
Internet banking is available at any time and
it provides 24 hours access.
Online banking is the tempting target for
hackers. Security is one of the problems
faced by customers in accessing accounts
through internet.
Customers who often travel abroad can have
greater control over their finances.
Customers do not have to spend money for
visiting banks. They can avoid bank charges
that may be charged for certain teller
 Basis of
Traditional Banking Internet Banking
Difference
transactions or when they pay bills
electronically — directly from their account
to the merchant. It helps to save money on
postal charges.
The cost incurred by traditional
Such costs are eliminated as the banks do
Cost banks includes a lot of operating
not have physical presence.
and fixed costs.
ln traditional banks, the
In online banking, the customers do not
Customer employees and clerical staff of
have to stand in queues to carry out certain
Service the bank can attend only few
bank transactions.
customers at a time.
Customers can have face to face Customers can have only electronic
Contact
contact in traditional banking. contacts.

53
I worked as a summer intern with “HDFC BANK LTD” for a period of 2 months. The field
experience helped me to develop the quality of analyzing, observing, and participating which
helped me to guide the customer about digital banking and its uses. I could also ascertain the
impact of such Digital services of HDFC bank, and whether the bank is successful in
transforming itself to a completely digital platform. I made customers aware of the digital
banking applications introduced by the bank by giving them a demo through the digital
banking kiosk present in the branch and deviating them towards using the mobile, tablets to
perform the various type of banking transactions like opening a demat account, paying of
bills, applying for personal or automobile loan, opening of FD/RD without even visiting the
branch through mobile/net/phone banking.
I closely observed each and every customer visiting the branch having queries regarding
digital banking or their usage. I was assigned with a task to convince at least 5 customer per
day regarding digital banking and I was instrumental in achieving the task. (Refer Annexure
for the detail). During the period of 2 months I observed that majority of the customers were
ready to shift to the digital banking but few of them still believe in traditional banking due to
security reasons. In two months of my internship, apart from Net banking, I have also
promoted and convinced customers to make use of digital banking applications introduced by
the bank like CHILLR and PAYZAPP where CHILLR is an application where one can send
money to any of the mobile phone contacts like a SMS on 24*7 basis instantly. No
information is needed of the recipient, one just needs to select them from one’s CHILLR
contact list and enter amount, then send instant fund transfer to a friend in their phone book.
PAYZAAP, a mobile app that allows the customer to broadly do 5 things manage debit/credit
card details, recharge and pay bills, use virtual car, send money through wallet, and shop. The
outcome of digital banking is the number of customers visiting bank branch has reduced as
they are able to perform banking transaction without visiting the bank branch. This provesthat
HDFC Bank is successful in transforming the customers to digital banking from traditional
banking.
Apart from managing the customers in the Branch, I have also got the opportunity to go on
calls and attend meetings along with Personal Bankers, Relationship Managers and Assistant
Branch Manager, wherein I have observed and understood that how do the employees at
HDFC Bank approach their clients, develop and build business relationships, and provide
assistance to their customers/clients for any kind of requirements. This process leads to
customer satisfaction as well helps in generating business for the Bank.
54
 Chapter 3

Project Details

3.1 Objectives of the Project

1. To understand the concept, features and evolution of Banking, traditional and digital/
E- Banking.
2. To identify various e-banking/Net banking services offered by HDFC Bank.
3. To build confidence amongst the customers of HDFC Bank in using these services by
providing a Demo.
4. To study and analyze the Advantages and Disadvantages of Traditional and
Modern/Digital Banking.
5. To study the shift of HDFC bank from traditional to modern banking.
6. To study the progress made and challenges faced by HDFC Bank in adoption of
technology in the banking sector.
7. To understand the response, views and understanding of the customers of HDFC
Bank about the digital banking.
8. To make an analysis of the competition between HDFC Bank and its competitors with
respect to digital banking features, advantages that HDFC Bank has over the other
banks with respect to digital banking.
9. To divert the walk-in customers towards Digital Migration i.e. Net Banking.
10. To create awareness of E-banking/Net banking products/services amongst the
customers and thus facilitate smooth Digital Migration.

55
3.2 Library Reference / Literature Review

Various investigations have been carried out ontraditional banking vs digital banking, Net
Banking and its adoption, development and its hazards. Some of the reviews have been
presented:

Nath et.al (2001): in their examination found that in each industry, E-trade is revolutionizing
the way business is directed. New plans of action are replacing outdated ones and
associations are reevaluating business prepare outlines and client 26 relationship
administration systems. HDFC Bank is no exemption to this change. This study analyzes
financiers' perspectives on giving keeping money administrations to clients utilizing the web.
In particular, it tends to issues, for example, the vital requirement for Internet keeping money,
its effect on client bank connections, and clients' encounters in Internet banking. Data
gathered from around 75 branches of HDFC Bank demonstrate that most branches don't yet
offer undeniable Internet managing an account. Notwithstanding, most have plans to do as
such. Besides, investors see Internet banking as a key open door that can diminish exchange
costs, upgrade client service, increase the client base and enhance strategically pitching
openings. Likewise, Internet saving money is seen all the more positively by bank that offer it
contrasted with those that don't.

Corrocher (2002): in his examination analyzed the drivers of the selection of the Internet
managing an account, keeping in mind the end goal to comprehend its part as for the
customary saving money action and to offer a far reaching photo of the dispersion of such an
innovation inside the sector. In doing as such, it investigations the part of firm-particular and
non-firm-particular (technology, market, condition) qualities in impacting the choice to
receive the new technological stages to perform on-line saving money exchanges inside the
retail segment of the budgetary division. The primary motivation behind this paper is to
explore the connection between the Internet managing an account and the customary saving
money action, keeping in mind the end goal to comprehend if these two frameworks of
budgetary administrations conveyance are seen as substitutes or supplements by the bank.

56
Bradley and Stewart (2003): led an examination in which they contemplated the factors
driving the appropriation of web managing an account. The money related administrations
condition has been subject to changes on many fronts. Mechanical change and the appearance
of the Internet are among the most sensational and testing territories of progress for the part.
This paper takes a gander at retail managing an account and its selection of web based saving
money, specifically the elements driving and repressing appropriation by bank. A global
Delphi consider affirms the high level of significance of the Internet for retail saving money.
By 2011, it is normal that bank selection of the Internet will be close all inclusive. The key
factors that are driving bank to adopt internet managing an account are the appropriation by
different branches, aggressive strengths, shopper request and the accessibility of innovation.
Conflicting with selection are banks' recognitions that the Internet does not offer improved
capacity to manage clients as well as bank imperviousness to change, their current inheritance
frameworks and the resources required to receive.

Mishra &Kiranmai (2009) in their study found that information technology is considered as
the key driver for the changes taking place around the world. According to Heikki, the
transformation from the traditional banking to e-banking has been a ‘leap’ change. The
evolution of e-banking started from the use of Automatic Teller Machines (ATMs) and
telephone banking (tele-banking), direct bill payment, electronic fund transfer and the
revolutionary online banking. The future of electronic banking would be more interactive i.e.
TV banking. Finland is the first country in the world to have taken a lead in e-banking. In
India, ICICI Bank initiated e-banking services during 1997 under the brand name ‘Infinity’.
The shift towards the involvement of the customers in the financial service with the help of
technology, has helped in reducing costs of financial institutions as well as clients/customers
who use the service at any time.

Nandan et.al (2008) in his paper talks about the idea of Internet Banking, view of Internet
bank clients, non-clients and issues of real worry in Internet banking. The territory of Internet
managing an account in India has been investigated utilizing different ideas like E-keeping
money continuum, and whole examination identified with the different administrations and
the security highlights advertised. To have a reasonable and focused understanding about the
impression of clients (and non-clients) about Internet keeping money a review was directed.
The discoveries of the review give significant bits of knowledge into worry to security,

57
explanations behind lower penetration, and likeliness of reception, which have been utilized
to make valuable proposals.

3.3 Methodology

Research Design

Research Design is considered to be the heart of the research, dealing with at least four major
aspects: - Which questions to study, which data is relevant, which data should be collected
and how to analyze the results.

The nature of research is 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:

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 HDFC Bank customers was taken in order to conduct the
research.

UNIVERSE -In accordance to the specified research universe is Mumbai city.

58
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 asks
questions in a face to face contact to the other person.

SECONDARY DATA is the data which are available in the form of fact and figures.The
sources of secondary data are:
 Websites
 Magazines
 Articles

Data collection method

 The method of collecting data was through physical survey with the help of a
questionnaire.

Data collection Instrument

 The data collection instrument used are Pie charts, Graphs.

3.4 Limitations of the Report

 The research was conducted only in J.B Nagar Branch and therefore, the perception of
other HDFC Bank customers around Mumbai could not be studied.

 The responses of the customers may be biased.

 The sample size is limited to 100 customers. So such sample size cannot be said to be
the true representative of the universe.

59
 The time period of study was limited.

60
 Chapter 4

Analysis & Findings

The Primary data obtained out of the Questionnaire, is Descriptive in nature. The Research
methodology is Quantitative and therefore the data analysis technique used is statistical with
representation of data in form of bar graph, pie chart, line graph. The research was conducted
among 100 HDFC customers located in the J.B Nagar Branch.

Demographics:

Count of Customer
Row Labels Name:
Female 27
Male 73
Grand Total 100

Interpretation:

Out of 100 customers selected at random, 73% were male and 27% were females and most of
them had an inclination towards Net Banking.

61
 Count of Customer
Row Labels Name:
<30 years 50
30-59 44
60 & Above 6
Grand Total 100

Interpretation:

Out of 100 customers, 50% of the customers are below30 years of age (Young age), 44% of
the customers are in the range of 30-59 years of age (Middle age) and are digitally active.
There are few senior citizens, 60 years of age and above (6%), who prefer traditional banking
over digital banking due to lack of knowledge/awareness.

62
 Count of Customer
Row Labels Name:
Business 14
Housewife 2
Salaried 77
Self
employed 2
Student 5
Grand Total 100

Interpretation:

Out of 100 customers, 77% of the customers are Salaried and have opened either saving
account or Salary account with the bank, 14% of the customers are Businessmen and have
opened a current account with the bank. 5% of the customers are Students and have opened
Savings account with the bank. 2% of the customers are self-employed and balance 2% are
home-makers.

Q1.

63
 Count of Customer
Row Labels Name:
Branch Banking 8
Digital Banking 92
Grand Total 100

Interpretation:

When the customers are asked about their preference between branch banking and digital
banking 92% customers preferred digital banking and 8% customers preferred branch
banking as a mode of their banking transaction. Above graph clearly proves the dominance of
Digital Banking over Traditional Branch Banking.

Q2.

64
 Count of Customer
Row Labels Name:
No 9
Yes 91
Grand Total 100

Interpretation:
Out of the 100 respondents 91% of them use digital banking services while 9% prefer Branch
banking of HDFC bank. Majority of these 9% customers are senior citizens who lack
knowledge/awareness about Digital Banking.

Q3.

65
 Row Labels Count of Customer Name:
Lack of Knowledge/Awareness 1
Lack of Knowledge/Awareness, Security concerns 6
Out dated 1
Security concerns 1
Security concerns, Unreliable 1
Grand Total 10

Interpretation:

Out of the 10 respondents who do not use digital banking service 70% do not use it because
of lack of knowledge/awareness about digital banking,80% do not use it because of security
concerns, and 10% do not use it because they find it unreliable/outdated.

Q4.
66
Interpretation:

Out of the 91 respondents who use digital services, 33.3% use Net banking, 28.3% use
mobile banking, 8.1% use phone banking, 3.1%are using instaalerts/sms/query, and27.1%
respondents are using ATM service.

67
Q5.

Interpretation:

Out of the 91 respondent who uses digital banking service,35.2% use digital banking services
for convenience, 17.2% use to save time, 20.4% use due to 24 hour access and 27.2% use it
for cost effectiveness, while 0% respondents use it for security reasons.

68
Q6.

Count of Customer
Row Labels Name:
Daily 14
Daily, Weekly 1
Fortnightly 18
Fortnightly, Monthly 1
Monthly 4
Weekly 53
Grand Total 91

Interpretation:

Out of the 91 respondent who use Net banking service, 58.1% use the service weekly, 20.4%
use the service fortnightly, 16.1% use the service daily and 5.4% use the service monthly,
while 0% respondents use the service only once in six months. This shows that all the 91
respondents are active users of HDFC Net Banking service.

69
Q7.

70
Interpretation:

Out of the 91 respondent who use Net banking service, 29.2% use the service to download or
view Account Statement, 27.9% use the service for fund transfers, 14.8% use the service for
making credit card payments, 10.1% use the service for making other Bill payments, 9.7%
use the service for requesting cheque book/stop payment,3.7% use the service for viewing
Demat account summary, 3.4% use the service for viewing Loan detailsand 1.3% use the
service for mutual fund summary.
Q8.

71
Q9.

72
Q10.

Q11.

73
Interpretation:
As shown in the above pie chart 60.8% respondents are aware about HDFC bank Go digital
initiative while 39.2% of them are unaware

74
Q12.

Interpretation:

75
Out of 100 respondents that I have taken for my survey, 60 respondents are aware about the
digital initiatives by HDFC bank.The Pie-chart shows that72.3% know about Payzapp, 25.3%
know about Chillr, and only 2.4% know about Watch banking.

Q13.

Row Labels Count of Customer Name:

Agree 64
Disagree 4
Neutral 5
Strongly agree 23
Grand Total 96

Interpretation:

76
Out of 96 respondents, 24% strongly agree,66.7% agree,5.2 % are neutral and 4.2% disagree
to the statement that it is beneficial and therefore necessary to migrate from Traditional
Banking to Digital Banking. Therefore it can be concluded that moving forward, Digital
Banking is definitely going to be the preferred form of Banking.

Q14.

Interpretation:

Satisfaction level is very important for the direct banking channel of bank. In above graph we
can see that 85.2% Customers are satisfied with HDFC bank digital services, 11.4%

77
customers are fully satisfied and 3.4% are neutral. It indicates that HDFC bank customers
have high satisfaction level from the overall Digital services being offered.

FINDINGS

Majority of the customers (92%) prefer Digital Banking over traditional banking and are
digitally active.Only few customers (8%), including senior citizens, 60 years of age and
above (6% out of 8%), prefer traditional banking over digital banking due to lack of
knowledge/awareness and security reasons.

In our study we find that 91% respondents utilize digital services of HDFC Bank, 33.3% use
Net banking, 28.3% use mobile banking, 8.1% use phone banking, 3.1%are using
instaalerts/sms/query, and27.1% respondents are using ATM services.

Out of the 91 respondent who uses digital banking service, 35.2% use digital banking
services for convenience, 17.2% use the service to save time, 20.4% use the service due to 24
hour access and 27.2% use the service for cost effectiveness.

Majority of the respondents (58%) use the Net banking facility at least once in a week.
Out of the 91 respondent who use Net banking service, 29.2% use the service to download or
view Account Statement, 27.9% use the service for fund transfers, and 14.8% use the service
for making credit card payments.
Hence, Net banking is the most preferred digital channel being utilized by the customers, and
majority of the customers (97%) are satisfied with the Net banking facility.

78
Out of 100 respondents that I have taken for my survey, 60 respondents are aware about the
digital initiatives by HDFC bank.72.3% customers know about Payzapp, 25.3% know about
Chillr, and only 2.4% are aware of Watch banking.

Majority of the respondents (90%) agree to the statement that “It is beneficial and therefore
necessary to migrate from Traditional Banking to Digital Banking.” Therefore it can be
concluded that moving forward, Digital Banking is definitely going to be the preferred form
of Banking.

Majority of the respondents/customers (97%) have high satisfaction level from the overall
Digital services being offered.
Chapter 5
Conclusions & Recommendations

5.1 Conclusions

Digital Banking, which is the modern technology which is offered by the banks to their
customers so that they can conveniently conduct their banking transactions at a time that suits
them and can access their bank account for 24 hours a day and 7 days a week. Latest and
better ways of customer services are essential for the growth of the bank and for the banking
system as a whole. The effect of e-banking on worldwide banking system is to augment or
facilitate existing banking and payment mechanisms, primarily by making many transactions
cheaper, faster, more secure, and more convenient. Moreover, the growth of information
technologies in the world has been phenomenal as well. Because of these technologies, banks
are being able to reach their customers anywhere at any time. Compared to banks abroad,
Indian banks offering online services still have a long way to go. For online banking to reach
a critical mass, there has to be sufficient number of users and the sufficient infrastructure in
place so as to develop the concept of digital banking in the Indian market, which is gradually
being accepted by the people of the country as a whole. Even, in a country like India, there is
a need for providing better and customized services to the customers. Banks must be
concerned about the attitudes of customers with regard to acceptance of online banking. The
importance of security and privacy for the acceptance of internet banking is a very important
issue and it was found that people have weak understanding of internet banking, although
79
they are aware about risk. The present study shows that customers are more reluctant to join
new technologies or methods that might contain little risk. Hence, banks should design the
website to address security and trust issues as well. In case of the financial institutions which
have already deployed the E-banking, according to them there is a need of paradigm shift in
terms of perception by the public. The mindset of people in India is urging of changing. It
was until very recently that mobile banking and phone banking were not being widely
accepted, but then they became the killer applications of E- commerce. In this way E-banking
would overcome the traditional business model of retail banking and dramatically reduce the
processing and traditional cost. To sum up, opportunities in e-banking are immense but he
only need is to explore them. The nature of banking services may still be the same but the
way in which they are being offered has been changed dramatically. Banks must realize the
seriousness of challenges ahead and develop a strategy that will enable them to leverage the
opportunities presented by e-banking. E-banks needs to shift now from product centric to
customer centric i.e. to design services according to the needs dreams and expectations of the
customers. Opportunities and challenges offered by e-banking can only be met fruitfully if
banks assemble different dimensions services including banking, broking, insurance, channel
delivery, sales culture, back office processes and knowledge management under one
corporate name. Most of the market is still untapped in India especially in rural areas. There
is a lot of scope for banking institution to expand their e-banking services to have a more
sophisticated customer base. ICT infrastructure facilities are also not well developed and the
banks are unable to extend the e- banking services, therefore, good infrastructure need to be
developed. 

5.2 Recommendations

Embracing a fully digital strategy requires banks to modernize end-to-end, and to adopt a
customer centric approach. The following recommendations can help banks in general and
specifically HDFC Bank to ensure that their move to digital banking will result in greater
customer satisfaction and long-term profitability and business.
80
a) Manage and master the information that’s vital to digital banking. For banks to create new
sources of value, they need to understand the data that makes up their customers’ Code
Halos, each individual’s unique virtual identity.
b) They should act strategically. Providing a cohesive, cross-channel experience requires an
enterprise-wide approach.
c) Calculate the cost of not adopting digital banking: Lost opportunity, customer attrition, and
stagnation in new-customer growth and product sales.
d) Evaluate options carefully. Digital banking isn’t one-size-fits-all. Banks need to select the
options that best fit their organization and strategy.
e) Create an enterprise roadmap. A roadmap is a key prerequisite for implementing a digital
banking program.
f) Banks should also ensure that online banking is safe and secure for financial transaction
similar to the traditional banking.
g) Banks should organize seminar and conference to educate the customer regarding uses of
online banking as well as security and privacy of their accounts.
h) Some customers are hindered by lack of computer skills. They need to be educated on
basic skills required to conduct online banking.
i) Banks must emphasize the convenience that online banking can provide to people, such as
avoiding long queue, in order to motivate them to use it.
j) Banks must emphasize the cost saving that online can provide to the people, such as
reduce transaction cost by use of online banking.
k) HDFC Bank should introduce various types of applications in mobile banking when
compared to its competitors in order to attract more clients that would increase their revenue
generation in terms of business in digital banking.
l) The bank should also try to increase the customer base and also attract the low income
group of the population by reducing a minimum balance to be maintained in the savings
account from Rs.10000 a month to Rs.2000, which will involve more participation from the
feeble population at large to become a customer of the bank and they would also actively
participate in the digital banking services of the bank on being educated about the service.
m) The present focus of the bank is majorly on urban customers to increase the use of digital
banking among them but it should also focus on rural customers as there is an increasing
trend observed in the number of rural population accessing both internet banking and mobile
81
banking which would result in growth of revenue and business of HDFC Bank in digital
banking.
n) Banks need to think ‘out-of-the-box’ where box is the representation of all the tested, tried
things that always worked in the past. They would have to think outside the boundaries of
current practices, products, services, organizations, and industries as they fall behind the
treadmill of faster and more rapid pace of change. The new business environment thus puts a
premium on creativity and innovation more than ever before. This calls for innovative
solutions. Banks may have to go for mobile banking services for a cluster of villages.
Alternatively, technological institutions have to come out with low-cost, self-service solution/
ATMs. The government and the RBI should actively support such research efforts.
o) Banks should initiate schemes based on fringe benefits in the form of additional bonus,
free annual trips, valuable gift items, awards etc. for the employee who are very friendly,
experienced and aware with Online Banking Service. (OBS)
p) Banks can introduce OBS in two modes such as Beginner and Expert Mode to reduce
troubles of employees while providing guidance about OBS as well as to reduce troubles of
customers while availing OBS. The Beginner Mode should consist of the Help option which
can guide the users who are not much familiar with OBS to proceed for further facilities in a
correct manner with the details of fees imposed on different types of OB facilities. Likely, the
other mode compromise of the Expert Mode in which the person who is friendly with OBS
can directly operate or go through the transaction options to save his/her time. It increases
customer’s friendliness, awareness and also increases quality of OBS.
q) Banks should introduce transparent fee structure imposed by them on the use of OBS in
order to maximize accessibility, frequency of OBS and to make OBS more advantageous in
the form of cost effectiveness for the customers.
r) Strong anti-hacking system has to be tailored to not only strengthen online user’s
authentication for the vast Online Banking system but also to defend the theft of customer’s
privacy from internet hackers.
s) Banks can collaborate with government agencies to expand their outreach exponentially
and provide doorstep banking by facilitating various advanced facilities such as apply for
passport, visa, driving license, pan card etc.
t) Banks should pay attention to reach out their female customers who-in a majority of cases-
would have less experience and willingness to avail OBS by facilitating direct shopping
through Online Banking with some special discounts over a particular range. So that
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transaction frequency as well as amount that has been transact through Online Banking will
increase and results to the increment of bank’s productivity.

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 ANNEXURES

A. Bibliography

 http://www.hdfcbank.com/
 Annual Reports of HDFC Bank
 Economic Times
 BrandZ Report,2018
 https://en.wikipedia.org/wiki/HDFC_Bank
 https://www.google.com/
 https://www.moneycontrol.com/india/stockpricequote/banks-private-
sector/hdfcbank/HDF01
 http://myimsv2.imsindia.com/2016/05/28/banking-structure-in-india/
 https://www.ibef.org/industry/banking-india.aspx

B. Summary of Digital Migrations and other tasks during the tenure of internship

PURPOSE Count of CUSTOMERS

FOREX CARD - REGALIA 1
FOREX CARD – MULTI-CURRENCY 1
NET BANKING – MIGRATIONS 122
NET BANKING- AADHAR UPDATE 1
NET BANKING- CREDIT CARD 32
NET BANKING- CREDIT CARD PAYMENT 10
NET BANKING- CREDIT CARD, PAYZAPP 5
NET BANKING- DEBIT CARD UPGRADE 3
NET BANKING- EMI LOAN SCHEDULE PRINT 1
NET BANKING- FD (Rs.1,00,000) 1
NET BANKING- FD (Rs.2,00,000) 2
NET BANKING- FD (Rs.24,00,000) 1
NET BANKING- FD (Rs.5,00,000) 1
NET BANKING- FD (Rs.50,000) 1
NET BANKING- FD (Rs.70,000) 1
NET BANKING- FIXED DEPOSIT ( Rs.10,000) 1
NET BANKING- FOREX CARD 1
NET BANKING- INSTA LOAN - Rs.10,000 1
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NET BANKING- INSTA LOAN - Rs.21,750 1
NET BANKING- PAYZAPP 1
NET BANKING- THIRD PARTY TRANSFER 21
NET BANKING- THIRD PARTY TRANSFER LIMIT INCREMENT 2
NET BANKING- THIRD PARTY TRANSFER, CREDIT CARD 1
NET BANKING, Car loan lead 1
NET BANKING, PAYZAPP 2
NET BANKING,PAYZAPP 3
PAYZAPP 15
S/B A/C LEAD 1
S/B A/C LEAD- Senior Citizen A/c converted. 1
SMART A/C 1
SMART EMI 1
SMS BANKING 1
Grand Total 238

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C. Questionnaire or Information/Data Recording Format

Questionnaire

HDFC BANK - Digital Banking Survey

We request five minutes of your time to complete this survey about our Digital
Services to serve you even better in future.

Customer Name: *

Gender:
o  Male
o  Female
o  Other: 

Age: *
o  <30 years
o  30-59
o  60 & Above

Profession:
o  Business
o  Salaried
o  Student
o  Self emplyed
o  Housewife
o  Other: 

According to you, what is more convenient way for Banking? *

o  Branch Banking
o  Digital Banking

Do you use Digital Banking services of HDFC Bank.?

o  Yes
o  No

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 If no, What are your reasons for not using our Digital Banking
services.?
o  Lack of Knowledge/Awareness
o  Security concerns
o  Unreliable
o  Other: 

If yes, which Digital Banking services do you use at HDFC

Bank.?
o  Net Banking
o  Mobile Banking
o  Phone Banking
o  Insta SMS Alerts
o  ATM Services

What are your reasons for choosing our Digital Banking

services.?
o  Convenience
o  Cost effectiveness
o  Saves Time
o  24 hour Access
o  Security Reasons
o  Other: 

How often do you use HDFC Bank NetBanking Services?

o  Daily
o  Weekly
o  Fortnightly
o  Monthly
o  Once in six months
o  Other: 

Which online features do you use regularly? Please select all

that apply?
o  Transfer Funds to Other Accounts
o  Download or View Account Statement
o  View Demat Accounts
o  Make Credit Card Payments
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o  Make Bill Payments
o  Request Cheque Book / Stop Payment
o  View Loan Details
o  View Mutual Funds
o  Other: 

How would you rate your satisfaction on the following aspects

of Net Banking?
Very Never
Excellent Good Fair Poor
good Used
Speed of logging onto the NetBanking
Visual appearance of NetBanking
Ease of locating the transactions
information
Ease of understanding the information
given
Range of services offered
Speed of transacting
Level of security offered

How would you rate your overall experience with the HDFC
Bank Net Banking facility?
1 2 3 4 5

Excellen
Poor
t

Please give us any suggestion to improve the Net Banking to

make it more user-friendly/useful to customers like you?

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

Digital?
o  Yes
o  No
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 Which Digital Initiatives of HDFC are you aware of?
o  Payzapp
o  Chillr
o  Watch Banking

Do you agree that it is beneficial and therefore necessary to

migrate from Traditional Banking to Digital Banking?
o  Strongly disagree
o  Disagree
o  Neutral
o  Agree
o  Strongly agree

Please Rate your level of satisfaction with HDFC BANK overall

Digital Services.?
1 2 3 4 5

Fully
Not Satisfied
Satisfied
Any other suggestions/recommendations.?

Submit

*Thank You*

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