Study on Corporate Salary and its services of

“HDFC Bank”

Submitted to
CHITKARA BUSINESS SCHOOL
In partial fulfillment of requirement for the award of degree
in
Masters of Business Administration (2018-2020)

Submitted By: Supervised By:

Sukhman Taj I Dr. Shalender Kumar
(1820982073) (Assistant Professor)

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Summer Internship Letter

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COMPLETION CERTIFICATE

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iv
ONLINE COURSE-1

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ONLINE COURSE-2

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 DECLARATION

I, "Sukhman Taj”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere. Any literature, data
or work done by others and cited in the report has been given due acknowledgement and
listed in the reference section.

NAME:- Sukhman Taj

ROLL NO:- (1820982073)

DATE:- 10 July,2019

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 ACKNOWLEDGEMENT

I take this opportunity to express my gratitude and deep regard to Dr. Shalender
Kumar for her guidance, monitoring and constant encouragement throughout the
course. The guidance given by her from time to time shall carry me a long way in the
journey of life on which I am about to embark.

I also take this opportunity to express my deep sense of gratitude to Mr.Vicky Kumar
(Branch Manager) for his cordial support, valuable information and guidance which
helped in completing my project. Without his active guidance, help, cooperation &
encouragement; I would not have made headway in the project.

I am obliged to my staff members of HDFC Bank for valuable information provided

by them in the respective fields. I am grateful to them for their cooperation during the
period of my internship.

Lastly I would like to thank my parents & friends for their constant encouragement
without which the assignment accomplishment was not possible.

NAME: SUKHMAN TAJ

MBA (MARKETING)

1820982073

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 TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project titled “To Study the Corporate Salary and its services
of HDFC Bank” carried out by Ms. Sukhman Taj D/o Mrs. Nirmolak Singh has been
accomplished under my guidance & supervisions a duly registered MBA student of
Chitkara University. This project is being submitted by him/her in the partial
fulfillment of the requirements for the award of the Master of Business Administration
from Chitkara University.

Her dissertation represents her original work and is worthy of consideration for the
award of the degree of Master of Business Administration.

Mr. Vicky Kumar

HDFC Bank

(Branch Manager)

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 EXECUTIVE SUMMARY

Retail Institutional banking is, however, quite broad in nature - it refers to the
dealing of commercial banks with salaried customers, both on liabilities and
assets sides of the balance sheet. Fixed, current / savings accounts on the
liabilities side; and mortgages, loans (e.g., personal, housing, auto, and
educational) on the assets side, are the more important of the products offered
by banks. Related ancillary services include credit cards, or depository services.
Institutional Banking is a specialized division within a bank that offers a
comprehensive suite of products and services for large institutions locally. In
particular they can provide complex financing and advisory functions for
corporate and government clients who may require tailored capital products.
The data collected as per the market research was done on the basis of
potential customers who are having the account with the HDFC bank from
years and their experience.

Today’s retail banking sector is characterized by three basic characteristics:

Multiple products (deposits, credit cards, insurance, investments and securities).
Multiple channels of distribution (call centre, branch, and internet). Multiple
customer groups (consumer, small business, and corporate).

HDFC Bank has taken up initiative to make the best banking through
marketing initiatives focussed on catchment areas and continuous customer
engagements. Wherever possible, in all locations, the Bank follows the
principle of “all branches all products”. It is a multi-product approach. This
enables the branch to address nearly all the banking needs of the customers in
the catchment area. It also helps to improve productivity and service quality.

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 TABLE OF CONTENT

1) MISSION AND OBJECTIVE OF THE BANK 1

2) INTRODUCTION 1-5

3) PURPOSE 6-7

4) AWARDS AND RECOGNITION 7-9

5) KEY FINANCIAL FEATURES OF THE HDFC BANK 9-12

6) PRODUCT AND SERVICES OF THE HDFC BANK 13-15

7) SWOT ANALYSIS OF HDFC BANK 16-17

8) STRATEGIES ADOPTED BT THE HDFC BANK 18-20

9) SERVICES OFFERED BT THE HDFC BANK 21

10) VARIOUS PRODUCTS OFFERED BY HDFC BANK 22-29

11) PROJECT TITLE- “CORPORATE SALARY” 30-35

12) RESPONSIBILITIES AND TASL ASSIGNED 36

13) LITERATURE REVIEW 37-39

14) NEED OF THE STUDY 40

15) OBJECTIVE OF THE STUDY 41

16) RESEARCH METHADOLOGY 42-43

17) INTERPRETATION AND ANALYSIS 44-53

18) FINDINGS 54

19) LIMITATION 55

20) CONCLUSION 56

21) LEARNING FROM THE INTERNSHIP 57

22) SUGGESTIONS 58

23) REFERENCES 59

23) SURVEY 60-62

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24) CREDIT CARD DETAILS 63-64

26) ACCOUNT OPPENING DETAILS 65

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Mission and Objective of the Bank
Your Bank’s mission is to be a ‘World-Class Indian Bank.’ Its business philosophy is
based on five core values: Customer Focus, Operational Excellence, Product
Leadership, People and Sustainability. The last value Sustainability should be viewed
in consonance with Environmental, Social and Governance criteria. As a part of this,
HDFC Bank through its umbrella brand Parivartan seeks to bring about change in the
lives of communities mainly in Rural India.

The business objective has been to continue building sound customer franchises across
distinct businesses so as to be a preferred banking services provider to achieve healthy
growth in profitability consistent with the Bank’s risk appetite.

Bank’s business strategy was to take digitization to the next level to achieve the
following:

1. Deliver superior experience and greater convenience to customers

2. Increase market share in India’s expanding banking and financial services
industry.
3. Expand geographical reach
4. Cross-sell the broad financial product portfolio
5. Sustain strong asset quality through disciplined credit risk management
6. Maintain low cost of funds.

Introduction

History

HDFC Bank incorporated in 1994, began operations with its first registered office in
Mumbai, India. In fact, Dr. Manmohan Singh, our then Finance Minister, inaugurated
HDFC Bank’s full-service branch and first corporate office at Sandoz House, Worli.

HDFC Bank happens to be one of the largest banks in India. Further, it is the market leader
in e-commerce. Definitely, such a pioneer would require adequate infrastructure to cater to
its customers. As a matter of fact, HDFC Bank’s web of distribution is woven of 4,715
branches and 12,260 ATMs across 2,657 cities.

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Moreover, it provides a number of products and services which includes wholesale
banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal loans,
Loan against Property and Credit Cards. In 2017, HDFC bank’s revenue amounted to
₹81,602 crore and gave employment to 84,325.

Digitalization

In keeping with the Bank's 'Go Digital' proposition and 'Bank aapki mutthi mein'
offering, the Digital Transformation and Mobility Banking (DTMB) unit was founded
in July 2014 with a view to positioning HDFC Bank at the forefront of digital
innovations. The DTH team is headed by Rajnish Khare, under the leadership of Nitin
Chugh, Country Head of Digital Banking. The team is working on advancing HDFC
Bank's digital innovations in the digital, mobile, new-age technologies and social
space. The key to this is the constant eva luation of global best practices in the banking
domain and the feasibility of their use in the Bank.luation of global best practices in the
banking domain and the feasibility of their use in the Bank.

Fig-1

Source: www.hdfcbank.com

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From the above figure it’s been illustrated that earlier there were 19% of people ivisited
the bank branch, 12% who use the feature of phone banking, 29% of people had a
hands on internet and mobile. 40% of them availed ATM services.

 Digital Innovation Summit

Engaging the Fin Tech Ecosystem

In order to create a platform to encourage innovation in the Financial Technology (Fin

Tech) space, HDFC Bank also holds a Digital Innovation Summit. This initiative is a
part of the Bank’s strategic focus on simplifying the lives of customers by using
technology as an enabler. Its vision is to embrace the wave of disruptive innovation in
the Fin Tech space in the country and create a platform to nurture the spirit of
innovation and enterprise. Our objective is to interface with Fin Tech and new age
technology companies and start-ups in the BFSI domain, whilst exploring new and
disruptive ideas that fit into the overall objective of simplifying our customer's lives.

 Humanoid Robot IRA

HDFC Bank has recently launched the first "Humanoid" in the domestic banking
space. The human-sized robot IRA, will be deployed at a city branch very soon.

The robot will act as an assistant to augment existing services that are being offered in
the branches.

 HDFC Bank On Chat

A first of its kind solution provided by any Bank in India, HDFC Bank On Chat lets
you chat on Facebook messenger to avail services like bill payments, travel bookings,
event bookings, etc. You just need to chat with 'HDFC Bank OnChat' to complete any
transaction. It understands the user’s intent in English as well as Hinglish and does not
need specific commands as it is built on an intuitive Natural Language Processing
(NLP) based Artificial Intelligence(AI) platform. It is a one-stop solution for all your
requirements, so there is no need to download multiple apps for your daily needs.
HDFC Bank On Chat has won recognition from award forums like Asian Banking
Federation, etc.

 Automating candidate interview process

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HDFC Bank has launched an innovative interview platform that uses analytics,
AI and ML to conduct video based assessments and enables digital
interviewing to screen and select talent. The solution provides a comprehensive
tool using multiple aspects for decision-making by analyzing a candidate’s
resume content as per the hiring manager's requirement. The project has been
globally recognized by platforms like Asian Banker Summit and the Employee
Engagement Achievers Awards.

 Social Sher

Social Sher is an award winning Social Media Brand Ambassador Programme

launched by HDFC Bank for employees to become online brand promoters of
HDFC Bank’s products & services. The objective of the programme is to
equip and encourage employees to share the bank’s promotional content with
their social network. Social Sher platform can link to multiple social media
channels and help in identifying key employee advocates, thereby, creating a
culture of passion where employees spread HDFC Bank’s communication and
products with their personal social networks, in turn helping the brand drive
awareness and sales.

 HDFC Bank EVA Chatbot

Voted as India's smartest chatbot, EVA is a chat based solution on the HDFC Bank
website (www.hdfcbank.com) that enables the bank to solve basic customer queries
instantly; thereby eradicating human intervention. EVA works on Artificial
Intelligence technology and has natural language capabilities that determine the correct
taxonomy of the user’s input; pairing this with cognitive learning capabilities that
extract, understand, and act upon user queries.

 HDFC Bank Easy Keys

A new and easy way of banking, Easy Keys is a digital offering from HDFC
Bank that lets you do banking transactions using your Android Smartphone’s
keyboard without the need for switching between Apps. With HDFC Bank
Easy Keys, users can check their account balance, transfer funds, recharge
mobile / DTH, pay bills securely without switching apps while continuing to

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send emails or chatting across platforms such as social media Apps, SMS App,
Email Apps, etc. It is the first alphanumeric and transactional keypad being
offered by an Indian bank, thereby making it innovative. Unlike other keypads,
it allows users to not only do banking transactions, but also use it as a by
default keypad for typing purpose.

 Snap & Search on Vahan Gyan App

Today’s consumers want instant information – and this is undoubtedly the case
when they’re shopping for a new car. With this in mind, HDFC Bank has
launched a feature “Snap & Search” on the Bank’s Vahan Gyan App which
enables users to quickly find out how much a loan would be for a specific
make or model and what are the EMI options available for each variant &
model. All the user needs to do is click or upload a picture of a car of his
choice and the app will display information such as car name, price range,
variants, specifications, offers, user reviews and EMI options. This feature also
marks HDFC Bank’s foray is the field of Augmented Reality by giving the
users a digital feel of the physical world. Currently the feature is available
only on the employee app for searches based on live car images or high
resolution car pictures and will soon be launched for the customers through the
bank’s Autopedia App.

 Missed Call Recharge

A first in Industry Innovation by HDFC Bank, Missed Call Recharge allows a customer
to recharge a prepaid mobile phone by simply giving a missed call to a dedicated
number! There’s no need to visit any shop, or download an app – all you need to do, is
save 73 08 08 08 08 on your phone and give a missed call whenever you want to
recharge your phone! What’s more – you can connect your family or friend’s mobile
numbers to your account and allow them to recharge their phone easily too! The service
is available 24x7 and works for a Smartphone as well as a featured phone.

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Purpose

This banking service includes opening of accounts, deposits, insurance,

investments, money transfer, loans as well as premium banking. These products
are mainly meant for people earning outside India.

Collaborations- For Digital Transformation

HDFC Bank, today showcased its collaboration with Cisco to accelerate the
bank’s digital transformation strategy and business growth. HDFC Bank’s focus
on digitization keeps in mind the need to provide an experience to customers
in line with their expectations by leveraging various digital platforms. HDFC
Bank has grown its digital transactions from 63% to over 80% in the last
three years.

With the proliferation of mobile devices, the digital era and the growth of
social technologies, consumer expectations of digital banking have increased
manifold. Customers expect to complete their transactions anytime and
anywhere, through different channels. To meet the ever-evolving customer
demand, HDFC Bank powered its backend infrastructure with Cisco’s
networking solutions.

HDFC Bank’s data center built on Cisco Unified Computing Systems (UCS),
leverages the performance of the Cisco Nexus® Datacenter switches to reduce
cost and complexity through automation, analytics, and energy management. By
moving to a virtualized environment, HDFC Bank has significantly improved
the speed of application deployments, reduced time for software upgrades as
well as lowered its data center footprint. The streamlined and integrated Cisco
infrastructure has thus helped enhance efficiency, increase resource availability,
security and performance.

With customer-centricity and customer experience being the top priority for
HDFC Bank, the bank is looking beyond core banking to delight its customers.
HDFC Bank consistently aims to deliver a consistent experience across all their
channels. Tele-Sales is one of the important channels that HDFC Bank uses to

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maximize on the cross-sell and up-sell opportunities that they have in the
market. Within the HDFC Bank’s contact center, Cisco Contact Center Solution
delivers intelligent routing and call treatment, network-to-desktop computer
telephony integration, and omnichannel contact management. Also, with the
help of predictive dialing, agents can now make almost 1.5 X more sales calls
every month.

Organizations that are seizing the digital opportunity need security everywhere
– from the network to the endpoint and from the cloud to every corner of
their operations – to limit the risk of sensitive data compromise. HDFC Bank
has commenced the implementation of Cisco’s next-generation security solution
Cisco Identity Services Engine (ISE) to protect and manage its IT
infrastructure and provide endpoint security across 4,787 branches – making it
the largest deployment in the Asia- Pacific and Japan region (APJ).

Awards and Recognitions

We are aware that all these awards are mere milestones in the continuing,
never-ending journey of providing excellent service to our customers. We are
confident, however, that with your feedback and support, we will be able to
maintain and improve our services.

Some recent excellence awards as below:

2018

The Economic
Times Corporate Company of the Year
Excellence Awards
2018
Aadhaar Excellence Awards 2018 • Best Performing Private Bank in
Total Aadhaar Generation & Update
• Best Performing Private Bank in
Total Aadhaar Generation & Update -
In House Model
• Best Performing Branch of HDFC

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 Bank in Total Aadhaar Generation &
Update for Kidwai Nagar Branch,
Kanpur, Uttar Pradesh.

NASSCOM AI Game Changer Awards 2018 Innovative Application in AI - Virtual

Agent Engine
Institutional Investor 2018 All-Asia Executive Ranked in four categories -
Team - Survey

• Best IR Professional: 2nd Rank among

banks in Asia (ex-Japan)
• Best CEO: 2nd Rank
• Best CFO: 1st Rank
• Best IR Company: 3rd Rank
Business Today Best Bank Awards Bank of the Year
Best in Innovation
Best Large Bank
Fastest Growing Large Bank
10th BW Business world-PwC Best Banks' - Fastest Growing Large Bank
(2017) Survey - Best Large Bank
- Lifetime Achievement Award - Mr.
Aditya Puri
Dun & Bradstreet India's Leading Bank - Private sector
BFSI Awards 2018

2019

BrandZ Top 100 HDFC Bank featured for the fifth time in
Most Valuable the BrandZ's Top 100 Global Brands List
Global Brands
2019
Business world -Best Large Bank
Magna Awards -Fastest Growing Large Bank - Runner up
2019
American Indian Aditya Puri honoured for corporate and
Foundation philanthropic leadership
Express Leadership Award for Outstanding Initiatives
Computer BFSI in Big Data / Analytics Artificial Intelligence

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 Digital Enterprise Applications
The Banker Bank of the Year - India
Bank of the Year
Awards
The Banker Best Private Bank in India
Global
Governance -Digital Bank
Now BFSI -Tech Trendsetter
Awards
2019.

KEY FINANCIAL FEATURES OF HDFC BANK

Profit: Private sector lender, HDFC Bank has reported a 20.53 per cent
growth in its net profit at Rs 21,078.14 during the financial year 2018-19 as
compared to Rs 17,486.75 crore in 2017-18. The bank's Net Interest
Income (N ), the difference between the total interest earned and interest
expended by a bank, rose by 20.32 per cent to Rs 48,243.22 crore in FY19.

Fig-2

Source: www.hdfcbank.com

HDFC Bank has reported a 22.63 per cent rise in its net profit for the March
quarter of the last fiscal on a year-on-year basis. The private lender posted a
net profit of Rs 5,885.12 crore during the quarter under review, as opposed to
the Rs 4799.28 crore in the corresponding quarter in the previous fiscal.

Interest Earned: The total interest HDFC Bank earned during FY19 was Rs
98,972.05 crore, as opposed to Rs 80,241.35 crore. This amounts to an

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increase of 23.34 per cent, the bank said in a regulatory filing. The interest
earned during the March quarter of FY 19 was 26,333.25 crore as opposed to

Rs 21,321.08 crore for the same period last fiscal, translating into an
increase of 23.50 per cent.

Provision and Contingences: The HDFC Bank also reported an increase in

its provisions for bad loans during the March quarter. The provision and
contingencies rose to Rs 1,889.22 crore from Rs 1,541.10 crore seen during
the year-ago period.

Non Performing Assets: On asset front, bank's gross non-performing assets

(NPAs) were at 1.36 per cent of gross advances by March 31, 2019, as
compared to 1.30 per cent on March 31, 2018. Coverage ratio as on March
31, 2019, was 71 per cent. Net non-performing assets or bad loans were at
0.30 per cent of net advances against 0.40 per cent. HDFC Bank said in its
statement that it held floating provisions of Rs 1,451 crore as on March 31,
2019.

Dividend: Announcing the financial results, the HDFC board recommended a

dividend of Rs 15 per equity share for the year ended March 31, 2019. The
issuance of dividend is subject to shareholder approval at the upcoming Annual
General Meeting of the bank. The board also approved raising up to Rs
50,000 crore through a private placement of debt instruments in the next 12
months.

"The Board of Directors have approved the issue of Perpetual Debt Instruments
(part of Additional Tier I capital), Tier Capital Bonds and Long Term Bonds
(financing of infrastructure and affordable housing) up to a total amount of Rs
50,000 crore in the period of next 12 months through private placement mode,
subject to the approval of the shareholders at the ensuing Annual General
Meeting of the Bank and any other regulatory approvals as applicable," HDFC
Bank further said in the statement.

Additionally, the HDFC Bank board also decided for termination of the Global
Depository Receipts (GDR) programme and delisting of 22 GDRs (representing

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11 underlying equity shares of the Bank) from the Luxembourg Stock
Exchange (LSE). The decision was taken due to the minimal number of GDRs
outstanding and the low trading volume of GDRs.

Branch Classification

Fig-3

Source: www.hdfcbank.com

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sTotal Deposits

Fig-4

Source: www.hdfcbank.com

CASA Ratio

Fig-5

Source: www.hdfcbank.com

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PRODUCT AND SERVICES OF HDFC BANK
Personal Loan- “Jiyo Shaan Se with HDFC Bank Personal Loan.”

In today’s day and age we all attempt to live our life to the fullest. Infact,
we often face challenges to fulfill a specific financial need or desire beyond
our capacity. Be it wedding expenses, funds for an emergency, paying off
medical expenses or any other payments, you will want to ensure that you
have the perfect opportunity to make all your dreams come true. For these
visions and much more, we give you the perfect solution to live life your way
—Personal Loan.

One of the leading providers of Personal Loans in India, HDFC Bank offers
the best loan option that comes with unique array of features and benefits.
You can take advantage of attractive features like flexible tenures, competitive
interest rates, pocket-friendly repayments and quick disbursals.

If you’re still looking for more benefits, there’s more in store for you. With
EMIs starting at Rs. 2187 per lack, you can enjoy a stress free and affordable
repayment process!

No more lengthy applications! Our process is seamless and requires minimal

documentation.Pre-approved HDFC Bank customers can get an instant Personal
Loan in under 10 seconds with no additional document submissions. Other
bank customers can get a Personal Loan in as short a time as 4 hours with
minimum document submissions.

After all, HDFC Bank Personal Loan is designed to address diverse financial
needs in an easy and convenient manner, making it one of the best Personal
Loans in India.

Let nothing hold you back. Apply for an HDFC Bank Personal Loan online in
a few quick and easy steps. Click on Apply Now to get started. By following
the easy-to-understand instructions, your loan application is complete in just a
few seconds.

Credit Card

From everyday expenses to luxury spends, covering the miles between your
daily commute and foreign holidays, from store-hopping to online shopping,
HDFC Bank Credit Cards are Ready for You to elevate every experience.

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Attractive Reward Points that you can redeem across leading brands, exclusive
benefits including lounge access and dining privileges are only some of the
reasons why you should pick one of our Credit Cards.

Range of Credit Cards

1. Money Back- 2 Reward Points for every Rs. 150 spent; 2X Reward
Points for shopping online. Reward Point redemption as Cash Back
against Credit Card dues, exclusive gifts and air miles .Exclusive dining
privileges with up to 15% discount at partner restaurants.
2. Jet Privilege HDFC Bank Signature - 7,500 JP Miles as welcome
bonus; accrue 6 JP Miles for every Rs.150 spent. Redeem your JP
Miles for booking flights on multiple airlines & other redemption
options. Avail up to 16 complimentary domestic lounge accesses per
year and Priority Pass membership for International lounges.
3. Platinum Times Card- 25% off on movies and up to 20% off on
dining (participating outlets). Bouquet of discount vouchers as welcome
gift. Earn 3 Reward Points for every Rs. 150 spent; 10 Reward Points
for Rs. 150 spent on weekday dining.
4. Dinner Club Black- Gain access to select Golf Clubs in India as
Green Fee player Redeem 10,000 reward points for Travel vouchers
worth Rs.10,000. Redeem for Airline Tickets, Hotels at our Travel and
Entertainment portal.

Car Loans
1. New Car Loan- The special features of our car loans include 100%
financing on select vehicles, flexible repayment tenure and pocket-
friendly EMIs. Our unique Step-Up EMI and Balloon EMI schemes
enable you to buy your dream car at more affordable EMIs – get a
bigger car at the EMI of a smaller car. Other benefits on car loans
include the option to compare and research cars with our New Car
Bazaar and check your car loan eligibility online. Get additional benefits
on car loans, with quick disbursal of funds, and enjoy special rates on
car loans if you are an existing HDFC Bank customer.
2. Pre-owned Car Loan features- Avail of loans up to Rs.2.5 crore on a
wide range of used cars and multi-utility vehicles. Get between 3 to 6

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 times your yearly income, and borrow up to 100% of the value of the
car Age of Car at loan maturity should not cross 10 years, subject to
maximum loan tenure of 60 months.
Benefit from end-to-end advisory -- from research to title transfer. Get
personalized help to choose a car that meets your specific needs. Enjoy
preferential pricing if you are a HDFC Bank customer Avail of
customized and convenient repayment plans with pocket-friendly EMIs.
Flexible repayment tenures from 12 months to 84 months
3. Loan against car- Get up to 150% of the original value of the car as
a loan. Avail the highest loan value in this market segment. No need
for a valuation of the car to get the loan
Apply for loan online 24/7. For customers not on Net banking, Instant
disbursement within 12 hrs.
No income document needed to get the loan against car.
Existing car loan customers can get access to instant money if they
have a clear repayment record for 9 months

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SWOT ANALYSIS OF HDFC BANK

Strengths

1. HDFC Bank has an extensive network of 5,103 HDFC Bank branches

all over

India, in addition to 13,160 ATMs

2. It is located in 2,748 cities in India

3. The bank’s ATM card is compatible with all domestic and
international Visa/Master card, Visa Electron/ Maestro and American
Express. This is one reason for HDFC cards to be the most preferred
card for shopping and online transactions
4. HDFC has lots of awards and recognition, it has received ‘Best Bank’
award from various financial rating institutions. In 2019, HDFC is the
only bank who bagged his first place as a best private bank in India.
5. HDFC has good financial advisors in terms of guiding customers
towards right.
6. When it comes to customer satisfaction HDFC is the bank which is
proffered the most than any other private bank.

Weaknesses

HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank
its direct competitor is expanding in rural market.

1. The bank focuses mostly on high end clients.

2. Some of the bank’s product categories lack in performance and doesn’t
have reach in the market.
3. HDFC cannot enjoy first mover advantage in rural areas. Rural people
are hard core loyal in terms of banking services.
4. Pensioners are not created that well as compare to other customers,
people with low pensions are told to wait.

Opportunities
1. HDFC bank has better asset quality parameters over government banks,
hence the profit growth is likely to increase.

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2. The companies in large and SME are growing at very fast pace. HDFC
has good reputation in terms of maintaining corporate salary accounts.
3. HDFC bank has improved it’s bad debts portfolio and the recovery of
bad debts are high when compared to government banks.
4. HDFC has very good opportunities in abroad.
5. Greater scope for acquisitions and strategic alliances due to strong
financial position.

Threats
1. HDFC’s nonperforming assets (NPA) increased from 0.18 % to
0.20%. Though it is a slight variation it’s not a good sign for the
financial health of the bank.
2. The non banking financial companies and new age banks are
increasing in India.
3. HDFC is not able to expand its market share as ICICI imposes
major threat.
4. The government banks are trying to modernize to compete with
private banks.
5. RBI has opened up to 74% for foreign banks to invest in Indian
market

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SRATEGIES ADOPTED BY HDFC BANK

MARKETING STRATEGY (Segmentation, Targeting, Positioning)

HDFC has segmented the customers on the basis of income group like formulating the
structure of Classic, preferred and imperial and also using customer financial needs to
segment the market like those of in need of general banking services (Retail &
corporate banking) and those customers who are HNI’s and are in need on investment
advisory services.

Bank has the majority of its customer base who are tech-savvy, Young and are more
inclined to products coupled with technology. Product & services offered by the
company are targeted to salaried class, entrepreneurs, and High net worth Individuals
(HNI’s).

Bank has positioned itself as a preferred provider of financial services by incorporating

technological advancement in its core businesses.

Competitive advantage in the Marketing strategy of HDFC Bank–

Brand visibility:

Reaching out to nook & corner of the country has helped the brand in increasing its
visibility in the market is not only metro or urban but also in the suburban centers.

Subsidiaries:

The bank leverage on its other subsidiaries like Housing & Development Finance
Corporation Ltd. which is known for extending housing loans, HDFC Mutual Fund for
Mutual fund schemes, HDFC ERGO General Insurance for selling general insurance
products, HDFC Life for Life insurance, HDFC Credila for education loan. Bank earns
commission/ fees on selling/distributing these products through its network of
branches.

Distribution strategy in the Marketing strategy of HDFC Bank–

Being a Tech Savvy commercial banking company, HDFC bank has decentralized it is
most of the business operations by making it accessible and user-friendly online
interface.

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The bank have a physical distribution network of 5750+ branches in more than 2700
cities with around 12500 ATM’s located on onshore and offshore locations. Bank has
recently introduced “EVA” an artificial intelligence based Chat bot assistant which
helps the customers in providing product information and respond to queries of the
customers on the real-time basis.

In addition, bank facilitates its services through various alternate delivery channels
such as like mobile banking, net-banking, SMS banking, phone banking, ATMs etc.

Brand equity in the Marketing strategy of HDFC Bank–

HDFC Bank has been ranked 258th in the list of Global 2000 companies and 234th in
the Forbes magazine list of Growth companies. The Bank has Market Capitalization of
$ 57.4 billion as of May 2017.

It has won several awards & accolades for the astounding technological advancement
& innovation, such as Dun & Bradstreet BFSI Awards 2018, Asia’s 13th Fab Company
in list of 50 companies (by Forbes), HDFC Bank bagged place in top 5 Companies That
Have Shaped Asia & the World as per Forbes in 2017, IBA Banking Technology
Awards 2017, Leading BFSI company award by Dun & Bradstreet in 2017 and many
others.

Competitive analysis in the Marketing strategy of HDFC Bank–

HDFC Bank has been offering entire spectrum of financial products like personal
banking, SME loans, Agri Loans, NRI services, Wholesale banking through
technology driven mediums supported by smartphones and tablets which is not only
helping the customers in conveniently consuming the services but it is also reducing the
cost of distribution of the products & services by the Bank.

To reach out to the millennial customer’s bank has forayed into social media banking
through HDFC Bank OnChat through which customers and non-customers can

19
complete e-commercetransactions through FB messenger which is supported by
Techbins solutions Pvt. Ltd.

The bank competes with banking & NBFC financial institutions such as ICICI Bank,
Axis Banks, PSU Banks like PNB, SBI, Canara Bank, NBFC’s like Indiabulls,
Murugappa Group etc.

Market analysis in the Marketing strategy of HDFC Bank–

Banking industry has been going through the NPA (Non performing assets) turmoil
and to overcome the challenges various automation of processes such as loan
syndication, Customer loan life cycle, automation of trade finances, Chatbot for
customer queries, HDFC interactive humanoid “IRA” technology demonstrator with
artificial intelligence & robotics are some of the initiatives taken by HDFC Bank which
are helping it in emerging as a pioneer in the Banking Industry.

Customer analysis in the Marketing strategy of HDFC Bank–

HDFC bank has segregated it customers based on MAB (Monthly average

balance)/QAB (Quarterly average balance). It has categorized it as General, Classic,
Preferred and Imperia.

General customers are those who do day to day banking activities and have to maintain
minimum required balance as prescribed by the Bank time to time.

Classic is the customers maintaining min MAB of 1 Lakh in the savings account or 5
Lakh in the combination of Savings Accounts and Fixed Deposit.

Preferred customers are those maintaining (MAB) of 1 Lakh in savings account or 5

Lakh QAB in current or 15 lakh in combination of Savings Accounts, Fixed Deposit
and current account.

Imperia are those maintaining (MAB) of 10 Lakh in savings account or 15 Lakh QAB
in current or 15 lakh in combination of Savings Accounts, Fixed Deposit.

20
SERVICES OFFERED BY HDFC BANK

HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments: Wholesale Banking Services – The Bank's target market ranges from large,
blue–chip manufacturing companies in the Indian corporate to small & mid–sized
corporates and agri–based businesses. Retail Banking Services – The objective of the
Retail Bank is to provide its target market customers a full range of financial products
and banking services, giving the customer a one–stop window for all his/her banking
requirements. Treasury – Within this business, the bank has three main product areas –
Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities,
and Equities. The Treasury business is responsible for managing the returns and market
risk on this investment portfolio. HDFC Securities (HSL) and HDB Financial Services
(HDBFSL) are its subsidiaries. Services offered by the company:

 Personal Banking
 Accounts & Deposit
 Loans
 Cards
 Forex
 Investments & Insurance NRI Banking
 Accounts & Deposits
 Remittances
 Investments & Insurance
 Loans Payment Services
 Wholesale Banking
 Corporate
 Small & Medium Enterprises
 Financial Institutions & Trusts
 Government Sector

21
VARIOUS PRODUCTS OFFERED BY HDFC BANK

HDFC Bank caters to the banking requirements of every individual by offering

a host of products and services. The following products and services are
offered by the bank under its Retail Banking Solution:

1. Accounts & Deposits

Under this head, the HDFC Bank offers a range of accounts and deposit
accounts to meet everybody’s requirements be it a simple saving account or a
salary account, a current account or a fixed deposit account or a recurring
deposit account, all types of accounts are available with the HDFC bank.

2. HDFC Bank Saving 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 are mentioned underneath:

 Regular Savings Account

 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Institutional Savings Account
 BSBDA Small Account

Steps to Open HDFC Bank Savings Account

Keeping in mind the priority of their customers to save for the future and earn high
returns on deposits, HDFC Bank has rolled out a number of savings accounts that cater
to the individual needs of each and every of their customers.

With the HDFC Bank Savings

Account, customers can earn a relatively higher interest on deposits in the account.
Depending on their financial status, customers can choose a savings account that suits

22
them best - from a Regular Savings Account, to the Savings Max account, Women’s
Savings account, Kid’s Advantage Savings account, etc.

As soon as the individual applies to open a savings account in HDFC Bank, he/she will
be required to submit the following documents:

 Proof of identity - Passport, Driving license, Voter’s ID card, etc.

 Proof of address - Passport, Driving license, Voter’s ID card, etc.
 PAN card
 Form 60 - A (only if PAN card is not available)
 2 latest passport size photographs

3. HDFC Bank 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
 Defence Salary Account
 Classic Salary Account
 Reimbursement Accoun

4. 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.

5. Loans

23
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
 Loan against Assets
 Two-Wheeler Loans
 Gold Loan

6. 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 range of Credit Cards offered by the bank is as follows:
1. Money Back
2. Regalia
3. Diner’s Club Black
4. Jet Privilege HDFC Bank Platinum
5. Platinum Times Card
6. Titanium Times Card
7. Superia
8. World MasterCard
9. Diners Club Premium
10. Diners Club Rewardz

7. 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.

24
8. 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.

9. 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.

10. 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.

11. Insurance

HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and
the non-life insurance products are issued in association with HDFC Ergo.

12. Private Banking

25
HDFC Bank’s team of expert Financial Advisors and Relationship Managers are
engaged in giving a premier banking experience to a select group of individuals who
qualify for private banking provided by the bank. Customers are offered a variety of
banking services and investment options like direct equity, mutual funds, fixed income
products, insurance, private equity, structured products and real estate.

 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: E-NEFT, RTGS, IMPS, Online banking.

 NetBanking -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.
20

 HDFC, one of India’s premier banking institutions offers its customers

the facility to transact online with the help of their online banking
platform known as NetBanking. The significance of online banking is
not unknown. Ever since it was introduced, online banking has
definitely saved customers multiple trips which would otherwise have to
be made to the bank for various transactions. NetBanking can be easily
accessed from home or any other place which provides you with a
steady internet connection. With HDFC NetBanking, customers can
easily perform more than 200 banking transactions like checking account
balance, transferring money online, opening a new account, requesting
for a cheque book, opening a Fixed / Recurring deposit, download their
account statement, pay various kinds of utility bills, recharge their
mobile phones or dish TV connections, etc.

 HDFC NetBanking brings you multiple features and benefits which

make it infinitely easier for you to manage your HDFC savings account

26
 and carry out transactions. Given below are just a few of the many
features which HDFC Net Banking offers you. You can check your
account balance and also download your account statement for the past
5 years in multiple formats with the click of a button. You can open a
Fixed / Recurring Deposit Account with the bank. Transfer funds in a
hassle free and secure manner via online fund transfer modes like
NEFT and RTGS. You can also register for Third Party Transfer or
even transfer funds between HDFC accounts as well as to non-HDFC
bank account.

 Phone Banking– 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.

12. Digital applications

 PayZapp - HDFC Bank PayZapp, a complete payment solution, giving

you the power to pay in just One Click. With PayZapp, you can shop
on your mobile at partner apps, buy movie tickets, music and groceries,
compare and book flight tickets and hotels, shop online and get great
discounts at SmartBuy, send money to anyone in your contact list, pay
bills and recharge your mobile, DTH and data card. It’s Fast: Make
payments in an instant with just one click. It’s Convenient: No need to
preload money everytime. Pay directly from linked Debit and Credit
Card. Its Secure: Your card details are safe with the Bank and not
stored on partner Apps.

 Smart Buy Offers - Smart Buy is a platform only for display of offers
extended by Merchants to HDFC Bank's Customers, and HDFC Bank is
not selling/rendering any of these Products/Services. The Bank does not
act as express or implied agent of the Merchants/the owners of the

27
 Products vis-a-vis the Customers. HDFC Bank is merely facilitating the
payment by its Customers by providing the Payment Gateway Services
and will not earn any fee by hosting this website. HDFC Bank is
neither guaranteeing nor making any representation with respect to the
offers made by the merchant. HDFC Bank is not responsible for
sale/quality/features of the Products/Services under the offer. If the
Customer proceeds from here, any purchase of a Product/Service will
only be through the HDFC Bank's credit/debit cards/net banking facility.
The Products/Services offered by Merchants may also be available at
other stores/online platforms. The Customer's discretion is advised in
this regard.

 HDFC Mobile Banking -HDFC Bank Mobile Banking App for Android
helps to check account balance, transfer funds, and pay your bills and
much more. With our Mobile Banking App you can access over 75
transactions anywhere, anytime.

 Chillr Mobile app - Chillr is a revolutionary new app that lets you
send money immediately to anyone in your phone book, 24 hours a
day, 7 days a week. No more hassles of adding beneficiaries! You can
request money, split bills amongst friends and can also recharge your
mobile, DTH & data cards. Soon you will be able to pay at online or
offline stores using Chillr. Chillr is launching first for HDFC Bank and
is available exclusively for customers of HDFC Bank. As an HDFC
Bank customer, you can also transfer money to your contacts having
other bank accounts. Money transfers made easy!

a) Send money to anyone in your contact list by using only your

contact's mobile number. No more adding beneficiaries and asking for
their bank details.
b) You can also send money without sharing mobile numbers with
Chillr App users in your vicinity, using 'Near Me' option
c) Split bills easily among your friends and colleagues
d) Recharge your mobile, DTH and data cards
28
 e) Transfer money between your bank accounts
f) Immediate flow of money between bank accounts
g) Available 24x7 including weekends and bank holidays!

 High-end security- All transactions are authorized through an M-PIN

that is issued by HDFC Bank and known only .

. a) No passwords are stored in the App

b) Custom keyboards to protect you from phishing attacks

c) Secured by 2048-bit client certificates

29
PROJECT TITLE – CORPORATE SALARY

‘Corporate Salary’ business vertical is a part of ‘Retail Liabilities’ division of our

Consumer Bank segment. It provides a comprehensive product suite to cater to the
financial needs of the salaried individual. It comprises of a bouquet of offerings viz.
savings accounts, current account, salary account, investment accounts; Demat
accounts facility to transfer funds to and from the linked online trading account
provided by HDFC bank.

To understand the offer/arrangement made to the Corporate by the bank

1. To ensure that all accounts signed up with the corporate gets salary credits

2. To identify and resolve service issues of the Corporate

3. To generate cross sales of various liability/asset products

4. To maintain call reports and MIS as required

5. Ensure each corporate has positive profitability

6. Ensure contact with key people at the corporate

7. selling all products to the relationship - core and cross sell

8. Deepening of the salary relationship - new account acquisition and value

build up in existing accounts.

9. Ensure that all corporate are migrated on to E-net salary upload system

10. Acquiring new customers who meet product criteria

11. Servicing all financial needs of the flagged customer

Corporate Salary requires forethought and strategies. There are many different
customer acquisition strategies that are used as part of the corporate salary
process. Corporate salary mainly consist of strategies which helps out to cater
customers related to the private, government or many other sector which
involved the salary process.

One strategy involves reaching out to potential customers through calls and
mailing lists. These customer target methods allow companies to determine
which individuals or already use products similar to those of your company.

30
Next, organization qualify the leads a little further using various research
methods to determine the viability of the given lead. If the chances seem
likely that you will be able to acquire this new customer, his status is
upgraded to that of prospect and assigned to a salesperson for further
interaction.

Many customer target programs then include establishing a relationship with

the person interested in having a relation with the bank for a longer duration
and trust the fact of having a salary account and further they prospects to
identify their needs and determine how the products offered relate to those
needs. Salespeople also attempt to identify unstated needs; these are based on
data provided by ongoing conversations and interactions with the prospects.
Salespeople also can identify additional needs of prospects and offer additional
products so the prospects see a greater value from purchasing the products
they already are considering.

Predicting Customer Behavior with Customer Conversation Modeling (CCM)

Consumer behavior data—such as buying trends, purchasing history, social

media activity, etc.—is more abundant than ever….and companies of all types
are taking note.

Financial services, telcos, retail, and publishing companies alike recognize that
this data enables them to radically improve their marketing effectiveness, as
campaign success is highly contingent upon timing and razor-sharp targeting. A
multi-threaded analysis of customer behavioral patterns improves campaign
efficiency, revenue and customer loyalty, but it also requires new prediction
models and learning algorithms.

When it comes to challenges such as customer churn, risk or acquisition

prediction, traditional tools are often limited to batch calculation of linear
regression or classification models, and require significant manual tuning by
data scientists. These systems—based on analysis and assumptions at a fixed
moment-in-time—also have difficulty processing real-time (let alone constantly
changing) data. As a result, they focus on past – or sometimes outdated –

31
activity, providing little value to organizations looking to make business
decisions based on accurate, up-to-date data.

This is where Customer Conversation Modeling (CCM) comes in. CCM – the
next phase of data driven marketing – enables organizations to predict
customer behavior before it happens. CCM focuses on three main areas and is
based on the notion that people (customers) exhibit cyclical, multi-threaded
behavior:

 Trend Detection – where sudden changes in behavior are more

important than sustained behavior patterns
 Recognition of Cyclical Patterns – taking into account the time and
location, and the depth/breadth of the historical conversation with the
customer
 Multi-threaded Pattern Alignment Algorithms – tracking events across
channels, aligning them in time and finding correlation between multi-
channel behavior

For companies needing to provide greater predictive utility, it’s important to

understand how to adopt CCM to help identify patterns, trends and event
markers. At the same time, technological and architectural requirements are
necessary to support this new model, starting from (big) data collection of
behavioral information and transactional logs across all touch points.
Behavioral data must be laid out on a normalized timescale in order to
allow pattern recognition and alignment algorithms to work their magic.

Next, it becomes easy to use CCM to predict the Golden Path for every
customer – the journey that provides the customer with the best possible
experience, and gently nudge him to stay on that path with relevant service
offers. Relevant in time, in context, relevant towards the customer
preferences.

After all, Big Data isn’t just about deep analytics – it’s about providing
actionable insights and drive operational marketing and customer service.

HDFC Bank Salary Account Offer for employees of Punjab State Government

32
 1. Zero banlace salary accounts (Bank will not take any minimum balance
charges)

2. Life insurance cover (Natural Death) of Rs 1.25 lacs to the emplyee (free of
cost)

3. Accidental Death cover of Rs 30 lac for emplyees (free of cost)

 10 lacs (without any condition)

 20 lacs (with one swipe on POS machine/digital channels once in six
months irrespective of any amount)

4. Air Accident cover of 60 lacs (tickets should have been purchased through debit
card linked to salary account)

5. Permanent disability coverage up to Rs 5 lacs.

6. Benefits of Retirinf emplyees

 Zero Balance Account facility

 Accidental death cover to Rs 5 lacs subject to one swipe on POS
machine/digital channels once in six months irrespective of any amount .
this facility, in particular, will be availbale till the age of 70 years.
 This is subject to condition that one should come into the account before
retirement and also pension coming to this account regularly.

7. Zero balance Family account (bank will not take any minimum balance charges)

 Rs 5 lacs personal accident death cover (with one swipe on POS

machine/digital channels once in six months irrespective of any amount)
 Free of cost debit cards

8. free platinum debit card olong with features like

 ATM cash withdrawal limit of Rs. 100,000/- per day & shopping limit of Rs
2,75,000/- per day
 Purchase protection:zero liability on fraudulent usage on lost or stolen cards
on point of sale transaction up to a maximum of Rs 1 lakh per card.

33
 Petrol surcharge waiver at all petrol pumps in India (up to a maximum of Rs
750 PM Per card)
 1% cash back on any purchase, onlone or at mercahnt outlets, at any time of
the year.
 Complimentary airport lounge access.
 Loss of checked baggage- sum assured Rs 20000/-
 Fire and burglary for the items purchased under Debit card sum assured Rs
50000/-
 For any claims under fir & burglary insurance/loss of checked baggage
insurance to be accepted & processed, the cardholder should have carried out
at least 1 purchase trasaction using the debit card, within 3 months prior to th
event date.

9. 50% discount on loackers & preferential allotment.

10. preferential rates on all tupe of loans. Eligibility asper net salary of the
employee.

11. Smart overdraft facility- net 2 monts salary basis specific request of employee
and max Rs 1.50 lacs

12. credit card as per eligibility

13. free demat account

14 free trading account (fee will be waived off in case of activation of account in
120 days)

15. Free demand draft payable at HDFC Bank locations

16. unlimited access to other bank ATMs across the country

17. premium Bnaking- eligible customers to be raced to our managed programmes

18. free net banking/Mobile Banking and insta alerts

19. free passbook facility

20. Multicurrency forexplus card- available in 21 currencies.

34
 21. [repaid mobilerecharge(net banking)- recharge your prepaid mobile phone,
direct from your bak account.

22. smart buy- Now avail exciting offer like discount of flight tickets, electronic
items food fiesta etc.

23. Payzapp-

 It is a complete payment solution, giving you th epower to pay in just one

click
 With payzapp ypu can shop on your mobile at partner apps.

24. chillr- It is a revolutionary new app that let you send money immediately to
anyone in your phone book. 24 hours a day, 7 days a week.

25. dedicated relationship manager to cater to the financial needs of employees as

wellas the department.

35
RESPONSIBILITIES AND TASK ASSIGNED
1. Getting maximum number of Products Available to Customers

 Current Accounts
 Saving Accounts
 Credit Cards
 Loans

2. Helping the customers to open an account using a smart account.

3. Fetching customers from the different private and government organizations

and convincing them to open a salary account with HDFC Bank further telling
them the benefits they can usually avail through digitalization.

4. Generating leads for various HDFC products and then reporting and
following the same.

5. Helping customers with depository slips, cheques and FD/RD

6. Visiting Clients

With my training mentor, visits to customers were planned so to generate new

business. The visits not only included the pitching of bank accounts but also the other
products like Swipe Machine,Credit cards, Life Insurance Policies, General Insurance
etc.
6. Awareness to the existing Customers.

 Know your balance, just dial 18002703333

 Get your chequebook at doorstep by giving missed call
 on 18002703366.
 Third party fund transfers through net banking.
 Booking RD, FD through Net banking.
 Liquidating RD and FD through net banking.
 Downloading bank statement
 Printing passbook at passbook kiosk.

36
LITERATURE REVIEW

Apart from the benefits that the longevity of customers brings, research
findings also suggest that the costs of customer retention activities are less
than the costs of acquiring new customers. For example, Rust and Zahorik
(1993) argue the financial implications of attracting new customers may be five
times as costly as keeping existing customers. However, maintaining high
levels of satisfaction will not, by itself, ensure customer loyalty. Banks lose
satisfied customers who have moved, retired, or no longer need certain
services. As a consequence, retaining customers becomes a priority. Previous
research shows, however, that longevity does not automatically leads to
profitability (Colgate, Stewart, and Kinsella, 1996).

The argument for customer retention is relatively straightforward. It is more

economical to keep customers than to acquire new ones. The costs of
acquiring customers to “replace” those who have been lost are high. This is
because the expense of acquiring customers is incurred only in the beginning
stages of the commercial relationship (Reichheld and Kenny, 1990). In
addition, longer-term customers buy more and, if satisfied, may generate
positive word-of-mouth promotion for the company. Additionally, long-term
customers also take less of the company’s time and are less sensitive to price
changes (Healy, 1999). These findings highlight the opportunity for
management to acquire referral business, as it is often of superior quality and
inexpensive to obtain. Thus, it is believed that reducing customer defections by
as little as five percent can double the profits (Healy, 1999).

A number of researches have been conducted on how to acquire customers,

net banking and its adoption, development and perils. Due to shortage of
resources and time, a review of past researchers done could not be mentioned
in this research project. So, a snapshot of some of the reviews have been
presented. The key factors influencing customers’ selection of a bank include
the range of services, rates, fees and prices charged (Abratt and Russell, 1999).
It is apparent that superior service, alone, is not sufficient to satisfy customers.
Prices are essential, if not more important than service and relationship quality.
Furthermore, service excellence, meeting client needs, and providing innovative

37
products are essential to succeed in the banking industry. Most private banks
claim that creating and maintaining customer relationships are important to
them and they are aware of the positive values that relationships provide
(Colgate et al., 1996).

To compete successfully in today’s competitive marketplace, banks must focus

on understanding the needs, attitudes, satisfactions and behavioural patterns
of the market (Kaynak and Kucukemiroglu, 1992). Consumers evaluate a
number of criteria when choosing a bank. However, the prioritisation and use
of these criteria differs across countries, and thus cannot be generalised. For
example, in a study of Canadian customers in Montreal, Laroche and Taylor
(1988) found that convenience is the principal reason for bank selection,
followed by parental influence with respect to the status of the bank. In
contrast, Kaynak and Kucukemiroglu's (1992) study of the Hong Kong banking
market discovered that customers choose their banks because of convenience,
long association, recommendations of friends and relatives, and accessibility to
credit.

Previous studies have identified the benefits that customer retention delivers to
an organisation (see Colgate et al., 1996; Reichheld and Sasser, 1990;
Storbacka et al., 1994). For example, the longer a customer stays with an
organisation the more utility the customer generates (Reichheld and Sasser,
1990). This is an outcome of a number of factors relating to the time the
customer spends with the organisation. These include the higher initial costs of
introducing and attracting a new customer, increases in both the value and
number of purchases, the customer's better understanding of the organisation,
and positive word-of-mouth promotion.

On the other hand, Beckett et al. (2000) draw tentative conclusions as to why
consumers appear to remain loyal to the same financial provider, even though
in many instances they hold less favourable views toward these service
providers. For example, many consumers appear to perceive little differentiation
between financial providers, making any change essentially worthless. Secondly,
consumers appear to be motivated by convenience or inertia. Finally,

38
consumers associate changing banks with high switching costs in terms of the
potential sacrifice and effort involved.

39
NEED OF THE STUDY

1. The research will add to the existing body of knowledge and interpretation
which will be useful for increasing the market share of HDFC bank.

2. The research and findings from the study will benefit HDFC bank by
providing them use full information to assist in the implementation of
acquiring new customers. A better understanding of these factors will help
Bank to identify the loopholes and work on it effectively and efficiently.

3. The study will identify the knowledge gaps and provide suggestions for
further research and strategy formulation.

4. Working on this project, will make us understand customer’s behavior, their

experience and preferences.

5. Acknowledging people about the changes in the digital changes taking place
and making them hands onto them.

40
OBJECTIVES OF THE STUDY

1. To offer suggestions based upon the findings

2. To identify customers’ perception on the various products of the bank.

3. To identify customers’ perception on various types of investment.

4. To find reasons why customers opt for investment

41
RESEARCH METHODOLOGY

All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative
of the whole group during my job training. I have collected data from people
linked with different occupation in Ferozepur region. iSampling Design: Random
Sampling technique was applied to look for samples in the market to get
questionnaire filled and analyze the different perceptions of customers regarding
various products, services and investment choices. Random sampling was opted
because there wasn’t any particular trend of setups done for these firms, shops
or manufacturing unit. Randomly the customers were asked to fill the
questionnaire in the branch.

Data collection: Data was collected on the basis of their-

1. Age

2. Work information

3. Existing bank accounts

4. Types of investment done

5. Rating of bank’s services and products

The data was collected both directly and indirectly from the walk in
customers.

Although Ferozepur is counted under semi-urban area but most of the

customers belonged to villages and were unaware of many things. For such
kind of customers direct questions were asked and then filled in the
questionnaire.

Statistical Framework: Random Sampling Technique was used. Going directly

and approaching nearby customers and walk in customers for getting survey
verbally asking them and knowing their opinion, experience and views. This
Data collected was formulated weekly in excel spreadsheets and pie charts.
Approaching walk ins customers are also included in this data as well.
Exploratory Study: To determine the approximate area where the problem lies.

42
 Developing the research plan: The data for this research project has been
collected through self Administration. Due to time limitation and other
constraints direct personal interview method is used. A structured questionnaire
was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to
give direct answers. In questionnaires open ended and closed ended, both the
types of questions has been used. Collection of data:

1. Secondary Data: Some of the data was collected from internal sources.
The secondary data was collected on the basis of organizational file, official
records. These kinds of information was collected fro the list provided by the
bank for cold calling.

2. Primary data: All the people from different occupation were personally
visited and interviewed. They were the main source of Primary data. The
method of collection of primary data was direct personal interview through a
structured questionnaire. Sampling plan: Since it is not possible to study whole
universe, it becomes necessary to take sample from the universe to know
about its characteristics. Sampling Units: Different professionals and House
Wives of Ferozepur. Sample Technique: Random Sampling. Research
Instrument: Structured Questionnaire. Contact Method: Personal Interview and
telephone calling. Sample size: My sample size for this project was 50
respondents. Since it was not possible to cover the whole universe in the
available time period, it was necessary for me to take a sample size of 50
respondents.

43
Interpretation and Analysis

1. Occupation

Private 60%
Government 14%
Others 26%

Table-1

Fig-6

Interpretation: Out of 50 peoples of our sample size it’s been seen that most of the
account holders are working in some private organization than that of government and
any other.

44
2. Income

30,000-50,000 62%
50,000-100,000 16%
100,000-200,000 14%
200,000 & above 8%

Table-2

Fig-7

Interpretation: Out of 50 peoples of our sample size it’s been seen that most of the
account holders have salary between 30,000-50,000. And there very few who have
between 200,000 and above.

45
3. How long have you been the customer of HDFC Bank?

Less than a year 38%

1-4 years 38%
4-7 years 16%
More than 7 years 8%

Table-3

Fig-8

Interpretation: it is observed that many of the customers just recently opened there
account and with the same sample ratio some people have been the customer since 3-4
years. There are few old customers and they are aware about the facilities which HDFC
gives.

46
4. Do you always get the prompt service whenever you visit the HDFC Bank?

Strongly Agree 22%

Agree 54%
Neither Agree nor Disagree 20%
Disagree 4%
Strongly Disagree nil

Table-4

Fig-9

Interpretation: above graph shows that more than half of the customers are happy
with the services HDFC is providing to the ones with the salary account. Only 4% of
people disagree that services are not given right to them.

47
5. The procedure of opening an account with HDFC bank is Convenient.

Strongly Agree 34%

Agree 54%
Neither Agree not Disagree 8%
Disagree 4%
Strongly Disagree Nil
Table-5

Fig-10

Interpretation: above pie graph shows that more than half of the customers are happy
with the services HDFC is providing to the ones with the salary account. Only 4% of
people disagree that services are not given right to them.

48
6. Do you agree that the process of depositing and withdrawing money from the HDFC
Bank is complex?

Strongly Agree 10%

Agree 34%
Neither Agree nor Disagree 20%
Disagree 28%
Strongly Disagree 8%

Table-6

Fig-11

Interpretation: It’s been illustrated that in the bank I was interning is situated in semi
urban area so many of them agree that it’s a complex method of depositing and
withdrawing money. Queue at the bank are not maintained and customers usually get
frustrated.

49
7. Are you satisfied with the way the queries of customers have been resolved by
HDFC Bank?

Strongly Satisfied 14%

Satisfied 60%
neutral 20%
Dissatisfied 6%
Strongly Dissatisfied Nil

Table-7

Fig-12

Interpretation: Many of the salaried employees are satisfied with the staff of the bank
as they listen and usually help customers with the queries and solve them patiently.
Only 6% of people say there queries are not handled rightly.

50
8. Do you agree that minimum account limit is not high and easy to maintain in the
HDFC Bank?

Strongly Agree 10%

Agree 48%
Neither Agree nor Disagree 30%
Disagree 8%
Strongly Disagree 4%

Table-8

Fig-13

Interpretation: minimum balance usually every customer needs to keep so many

customers are good to go with the balance which needs to be kept. Only few of them
disagree and strongly disagree.

51
9. What is the problem that you face whenever you make a visit at HDFC Bank?

Depositing and Withdraw money 4%

Query Handling 16%
New Account Process 8%
friendliness of Bank Personnel 4%
Minimum Account limit is not high 8%
Easy maintenance of Account 4%
Parking facilities and accessibility 32%
Convenience of location 4%
Online Service 16%

Table-9

Fig-14

Interpretation: Since the location of HDFC is in congested area so there the facility if
parking is very poor. People are quite unhappy with the parking. Some say that there
queries are not handled nicely.

10. Are you satisfied with the overall services provided by the HDFC Bank?

Yes 82%
No 18%

Table-10

52
 Fig-15

Interpretation: Out of 50 peoples of our sample size it’s been seen that most of the
account holders are happy with the overall services of HDFC Bank.

53
FINDINGS

1. Heavy documentation

2. Local address proof is required due to which some people cannot open their
accounts

3. Time consuming for Current Accounts since records of many years are required

4. Customers have to stand in long queues for

 Passbook entries
 Cash Deposit of Rs. 500

5. Closure of accounts

6. Since customers cannot maintain minimum balance

54
LIMITATIONS

1. Language barrier

2. Difficult to change mindset of few customers

3. The project was constrained by time limit of two months.

4. Mindset of people may vary depending upon their age, gender, income etc.

5. Getting appointment from the concern person was very difficult.

6. People mind set about the survey was an obstacle in acquiring complete

Information & positive interaction.

7. The basic limitation of taking surveys and getting questionnaire filled was that it
wasn’t easy to retrieve data and information from masses, as they had a fear of getting
that data misused.

55
CONCLUSION

HDFC Bank, the banking arm of HDFC is expected to go on stream. The

bank already has good number of employees on board and is recruiting Sales
Executives heavily to take the headcount to many more. It is on the brim of
increasing its customers through its attractive schemes and offer. The project
opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to open an
account so that new Business Opportunities of the bank can be explored.
Through this project, it could be concluded that people are not much aware
about the various products of the bank and mostly people get themselves
insured was to save tax. Apart from this I learnt how to convince and build
professional and business relationships. Observed and learnt how to draft and
manage one’s work in situations of extreme pressure and high market
competition. Got a brief idea of how HDFC bank and its products are
operated by these agriculturists, manufacturers, merchants and traders in this
semi-urban(rural) areas. Learned about the preferences and choice of customers
in rural areas as per their need and knowledge. Got a brief understanding of
banking environment and its essentials. Also learned marketing strategy of
knowing, understanding and then offering suitable products to the customers as
per their choices and preferences.

56
LEARNINGS FROM THE INTERNSHIP

1. Different products and services provided by the bank.

2. Customers’ perception about the different products.

3. The brand image of the bank.

4. What are the problems faced by these sales executives daily basis.

5. How to communicate with the customers.

6. Different techniques of dealing with the customers.

7. How to convince and convert a customer into a real customer

57
SUGGESTIONS

1. The bank should provide life time valid ATM card to all its customers.

2. Minimum balance for savings account should be reduced from Rs 2500 to Rs 1000
or 500.

3. Awareness about different products.

4. Awareness about customer’s interest.

5. Passbook printers in ATM

6. Teller Machines

7. Student Accounts

8. As most of respondents are concerned about the security of mobile payments, the

security system should be strengthening so that people won’t scare about their

money and transactions.

58
REFERENCES

Abratt, R and Russell, J. (1999). Relationship Marketing in Private Banking

South Africa. The International Journal of Bank Marketing, 17(1), p.5.

Beckett, A., Hewer, P and Howcroft, B. (2000). An Exposition of Consumer

Behaviour in the Financial Services Industry. The International Journal of Bank
Marketing, 18(1), p. 15.

Colgate, M., Stewart, K and Kinsella, R. (1996). Customer Defection: A Study

of the Student Market in Ireland. The International Journal of Bank Marketing,
14(3), p. 23.

Healy, T. J. (1999). Why You Should Retain Your Customers. America's

Community Banker, 8(9), September, p. 22-26.

Kaynak, E., and Kucukemiroglu, O. (1992). Bank and Product Selection: Hong
Kong. The International Journal of Bank Marketing, 10(1), pp. 3-17.

Laroche, M., and Taylor, T. (1988). An Empirical Study of Major

Segmentation Issues in Retail Banking. International Journal of Bank
Marketing, 6(1), pp. 31-48.

Reichheld, F. F and Kenny, D. (1990). The Hidden Advantages of Customer

Retention. Journal of Retail Banking, 7(4), pp. 19-23.

Reichheld, F. F and Sasser, W. E. (1990). Zero Defections: Quality comes

to Services. Harvard Business Review, September-October, pp. 105-111. Rust,
R. and Zahorik, A. (1993). Customer Satisfaction, Customer Retention and
Market Share. Journal of Retailing, 69(2), pp. 193-215.

Storbacka, K., Strandvik, R and Gronroos, C. (1994). Managing Customer

Relationship for Profit: The Dynamics of Relationship Quality. International
Journal of Service Industry Management, 5(5), pp. 21-38.

59
SURVEY

ANNEXURE-1 i

QUESTIONNAIRE

This questionnaire is designed to get feedback from the respondents. The

objective of this survey is to find customers' awareness regarding Corporate
Salary services provided by HDFC Bank and also to know their perception
regarding different kinds services they are providing.

1. Name

2. Age

3. Occupation

 Private
 Government
 Other

4. Income (Monthly)

 30,000-50,000
 50,000-100,000
 100,000-200,000
 200,000 & above

5. How long have you been the customer of HDFC Bank?

 Less than a year

 1-4 Years
 4-7 Years
 more than 7 years

6. Do you always get the prompt service whenever you visit the HDFC Bank?

 Strongly Agree
 Agree

60
  Neither Agree nor Disagree
 Disagree
 strongly Disagree

7. The procedure of opening an account with HDFC bank is Convenient.

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

8. Do you agree that the process of depositing and withdrawing money from the
HDFC Bank is complex?

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

9. Are you satisfied with the way the queries of customers have been resolved by
HDFC Bank?

 Strongly satisfied
 Satisfied
 Satisfied and Dissatisfied
 Dissatisfied
 Strongly Dissatisfied

10. Do you agree that minimum account limit is not high and easy to maintain in
the HDFC Bank?

 Strongly Agree
 Agree
 Neither Agree nor Disagree
 Disagree
 Strongly Disagree

61
11. What is the problem that you face whenever you make a visit at HDFC
Bank?

 Depositing and Withdraw money

 Query Handling
 New Account Process
 friendliness of Bank Personnel
 Minimum Account limit is not high
 Easy maintenance of Account
 Parking facilities and accessibility
 Convenience of location
 Online Service

12. Are you satisfied with the overall services provided by the HDFC Bank?
 Yes
 No

62
CREDIT CARD CALLING DETAILS
NAME PHONE AREA YES/NO
NUMBER
JASWANT NCPR-CALL FEROZPUR OUT OF
SINGH STATION
BALVIR SINGH 9464111542 FEROZPUR NO
PARAMJIT NCPR-CALL FEROZPUR NO
SINGH
CHANAN SINGH 9417080030 FEROZPUR YES
JARNAIL SINGH FEROZPUR NO
HARBHAJAN NCPR-CALL FEROZPUR NO
SINGH
WAZIR SINGH 8528927033 FEROZPUR NO
GURDEV SINGH 7579352782 FEROZPUR NO
UDIK SINGH 7825310934 FEROZPUR NO
MANNA LAL 87209468I4 FEROZPUR YES
KABAL SINGH NCPR-CALL FEROZPUR NO
KULDEEP 8735729746 FEROZPUR NO
SINGH
KASHMIR 7455391033 FEROZPUR NO
SINGH
MINTOO KING 8354543859 FEROZPUR NO
MINTU LAL NCPR-CALL FEROZPUR NO
REACHABLE
KULWANT 9435764738 FEROZPUR YES
SINGH
BALWINDER 7566343849 FEROZPUR NO
SINGH
SATPAL NCPR-CALL FEROZPUR NO
PIARA SINGH 8732457929 FEROZPUR NO
MANGAL 7648747495 FEROZPUR NO
SINGH
BOOTA SINGH NCPR-CALL FEROZPUR YES

63
JASPAL SINGH 8473338575 FEROZPUR NO
RAM PARKASH 7658374349 FEROZPUR OUT OF
STATION
UDIK CHNAD 9464810001 FEROZPUR NO
BALDEV SINGH 764637427 FEROZPUR NO
VIJAY KUMAR NCPR-CALL FEROZPUR NO
AMAR 768374974 FEROZPUR YES
WAZIR CHAND 872748373 FEROZPUR NO
GURSEWAK 948387373 FEROZPUR NO
SINGH
KULDEEP NCPR-CALL FEROZPUR NO
SINGH
JAGTAR SINGH NCPR-CALL FEROZPUR NO
BALKAR 7647244628 FEROZPUR NO
SINGH REACHABLE
SATWINDER 8463837000 FEROZPUR YES
SINGH
KILWANT NCPR-CALL FEROZPUR NO
SINGH
MILKHA SINGH 7642792666 FEROZPUR NO
DALIP SINGH NCPR-CALL FEROZPUR YES
BALJEET 7472676288 FEROZPUR NO
SINGH
HARJINDER 8877383748 FEROZPUR NO
SINGH
HAZARA SINGH NCPR-CALL FEROZPUR YES
CHIMAN LAL 7647468749 FEROZPUR NO
GURMIT SINGH 7836746634 FEROZPUR NO
BALVIR SINGH NCPR-CALL FEROZPUR NOT IN TOWN
LAKHWINDER NCPR-CALL FEROZPUR NO
SINGH
DARA SINGH NCPR-CALL FEROZPUR YES
GURDEEP NCPR-CALL FEROZPUR NO
SINGH

64
MADAN SINGH NCPR-CALL FEROZPUR NO
SAHIL KHANNA NCPR-CALL FEROZPUR NO
MANOHAR 9417714765 FEROZEPUR NO

ACCOUNT OPENING DETAILS

MAY
SAMEER WADWA SALARY A/C 50100285446631
RAJESH KUMAR SALARY A/C 50100269418669
AKASHDEEP SINGH SAVING A/C 8146484077

JUNE
AMANDEEP KAUR SALARY A/C 50100293293293214
HANS RAJ FAMILY SALARY A/C PF1712658916

JULY
ROBIN DUGGAL FAMILY SAVINGS PF1713420510
KEWAL KRISHAN SALARY A/C PF1713420513

65