Internship Project HDFC Bank PDF Free

PLASTIC MONEY OFFERED BY HDFC BANK IN J&K ANANTNAG
“PLASTIC MONEY OFFERED BY HDFC BANK IN J&K

(ANANTNAG)”
RESEARCH PROJECT
Submitted in partial fulfilment of the requirements for the

Award of the Degree of
MASTERS IN BUSINESS ADMINSTRATION
By
AUQIF AHMAD TEELI

Reg. No.: IUST0118011753
Roll No.: MBA-18-25
Under the Supervision of

Dr. SYED IRFAN SHAFI
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY
ONE, UNIVERISITY AVENUE, AWANTIPORA – 192122
NOVEMBER-2020
ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 1

CERTIFICATE
This is to certify that the project report entitled, “PLASTIC MONEY OFFERED BY
HDFC BANK IN J&K (ANANTNAG)”, submitted to Department of Management
Studies, Islamic University of Science and Technology, in partial fulfillment of the
requirements for the award of the degree of Masters In Business Administration, is a
record of original research work done by “Mr. AUQIF AHMAD TEELI during the
period 9th January 2020 to 10th March 2020 under my supervision and guidance. The
thesis has not formed the basis for the award of any Degree/Associate ship/ Fellowship
or any other similar title of any candidate of any University.
We wish him all the success in his future endeavors.
DR. SYED IRFAN SHAFI

Project Supervisor

DECLARATION
I, AUQIF AHMAD, hereby declare that the project entitled “PLASTIC MONEY
OFFERED BY HDFC BANK IN J&K (ANANTNAG)” submitted in partial
fulfillment of the requirements for the award of the degree of Masters In Business
Administration is a bona fide record of my original research work conducted under
the supervision of DR. SYED IRFAN SHAFI, Assistant Professor, Department of
Management Studies, Islamic University of Science and Technology, Awantipora,
India. The project report has not previously formed the basis for the award of any
Degree/ Associate ship/ Fellowship/ any similar title of recognition of any University
or institute of learning.
I also declare that the ideas, results, analysis, findings, and conclusions reported in
this thesis are original and are based entirely on my own efforts. Further, I declare that
the text, figures or any other material taken from other sources (including but not
limited to books, journals and web) have been acknowledged, referred and cited to the
best of my knowledge and understanding .
Awantipora, (AUQIF AHMAD)

November 2020.

EXECUTIVE SUMMARY
The purpose of this report was to analyze and understand PLASTIC MONEY OFFERED BY
HDFC BANK IN J&K (ANANTNAG). The report gives an overview of the banking Sector and
company profile. And awareness of customers about different types of products and services
offered by HDFC Bank also different products have been studied so as to understand PLASTIC
MONEY OFFERED BY HDFC BANK IN J&K (ANANTNAG)
The methodology adopted for the study was primary in nature by providing questionnaire to the
customers of HDFC BANK.
Although the trainee was exposed to a wide variety of information, the focus however remained
to analyze the detailed processes involved in customer acquisition, and the impact on bank’s
overall growth.

ACKNOWLEDGEMENTS
With immense pleasure, I would like to present this project report titled “PLASTIC MONEY
OFFERED BY HDFC BANK IN J&K (ANANTNAG)”, which would have not been possible
without the goodwill and support of the people around. As a student of IUST Awantipora, I would
like to express my sincere thanks to all those who helped me during my project work. I would like
to express my gratitude to all those who gave me the encouragement to complete this project. I
would like to thank the university authorities and HOD of the DOMS, for providing me the
opportunity to work with the prestigious “HDFC BANK”.
My heartfelt gratitude goes to “Mr. Muzzafar Shah” (BM) who in spite of being extraordinarily
busy with his duties, took time out to hear, guide and keep me on the correct path and allowing me
to carry out my internship at his esteemed organization.
I must thank the officials and employees of the “HDFC Bank Anantnag.” for their kind support
during my research. I perceive this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way.
I wholeheartedly would like to thank HDFC BANK Anantnag for facilitating me by providing
required data for the project work. My sincere thanks to Dr. SYED IRFAN SHAFI,Assistant
Professor Department of Management Studies, IUST Awantipora for having spared his valuable
time with me & for all the guidance given in executing the project as per requirements.
I would like to give my special thanks to my parents, my family. Their love, support & blessing
enabled me to complete this project.
However, I accept the sole responsibility for any possible errors of omission & would be extremely
grateful to the readers of this project report if they bring such mistakes to my notice.
AUQIF AHMAD
Awantipora, India

CONTENTS
Title ……….……………………………………………………. (1)
Certificate ……………………………………………………... (2)
Declaration ……….…………...………………………………… (3)
Executive Summary …………………………………………… (4)
Acknowledgement ……………………………………………… (5)
List of Contents …………………………………………………. (6 - 7)
List of Tables…………………………………………………... (8)
List of Figures…………………………………………………… (9)
Chapter - 1: Industry Profile 10-16
1.1 Broad outline of the industry ………………….………………... 11

1.2 Banking in India …….………………….………………………. 12-14
1.3 Banking structure in India …..………………………………..... 14-16
Chapter - 2: Company Profile 17-35
2.1. Background& Inception of HDFC Bank …………………….... 18-19

2.2. Business Segment ……………………….……………………. 19-20
2.3. Vision Mission and Value……………………………………… 20
2.4. Product Scope …………………………………………………… 20-30
2.5. Distribution Network …………………………………………….... 31
2.6. Board of Directors ……………………………………………… 31
2.7. Awards and Achievements ……………………………………. 32-35
Chapter – 3: SWOT Analysis 36-39
3.1 SWOT Analysis ……………………………………...…………… 37

Strengths ………………………………………………… 38
Weaknesses ……………………………………………… 38
Opportunities ……………….……………………….…… 38

Threats …………………………………………………... 39
Chapter -4: Analysis of Financial Statements 40-42

4.1 Balance Sheet of 5 financial years…………… 41-42
Chapter – 5: Learning Experience 43-44

5.1 Learning experience in HDFC Bank ……………………... 44
Chapter – 6: Introduction 45-61
6.1 Statement of the problem ………………...…………….………. 46

6.1.1 Plastic Money………………………………………………... 47-48
6.1.2 Credit & Debit cards are the currency of Modern India ……. 49
6.1.3 ATM-Debt cards are the flavour of the season……………… 50-51
6.1.4 Working of Debit card ……..……………………………….. 51-53
6.1.5 Credit Cards………………………..………………………... 54
6.1.6 How credit card works………………………………………. 54-56
6.1.7 Benefits of accepting plastic 56-58
6.1.8 Difference between a debit card & credit card……………… 59
6.2 Objectives of the study …………………………………..……… 59
6.3 Scope of the study ………….……………………………………… 60
6.4 Limitations of the Study …………………………………………. 61
Chapter - 7: Review of Literature 62-65
Chapter – 8: Research Methodology 66-68
8.1 Research Methodology …….….………………………………. 67

8.2 Research Design ………………………………..…………….. 67
8.3 Sampling Plan ……………………..……………………………... 67
8.3.1 Methods of Data Collection………………………………… 68
8.3.2 Tools of Analysis ….……...………………………………. 68
Chapter – 9: Data Analysis and Results 69-83

9.1 Data analysis and Interpretation …………..…………………… 69-83
Chapter – 10: Findings and Implications 84-87

10.1 Findings …………… ……….…………………………………... 85

10.2 Conclusion …………………………………………………………. 86-87
10.3 Recommendation …………………………………………………... 87
References / Bibliography 88-89
Questionnaire 90-92
List of Tables
Tables Particulars Page No.
Table 1.1.1 Schedule Commercial Banks 14
Table 1.1.2 Schedule Cooperative Banks 14
Table 4.1 Balance Sheet of HDFC Bank 41-42
Table 9.1 Usage of credit & debit cards by respondents 70
Table 9.2 Card possessed by respondents 71
Table 9.3 Time period of using the card 72
Table 9.4 Satisfied with the services provided by HDFC Bank 73
Table 9.5 Purpose for using the card 74
Table 9.6 Card which is more beneficial 75
Table 9.7 Benefits provided by debit card of HDFC Bank 76
Table 9.8 Benefits provided by credit card of HDFC Bank 78
Table 9.9 Problems faced in processing the card 80
Table 9.10 Future prospects of credit and debit cards 82

Table 9.11 Refer your acquaintances to use HDFC cards 83
LIST OF FIGURES
Figure No Particulars Page No.
2.4.1 Product Scope 21

6.1.7.1 Photo of Master card & Visa 58
6.1.8.1 Different types of debit and credit cards 59
9.1 Usage of credit &debit cards by respondents 70
9.2 Card possessed by respondents 71
9.3 Time period of using the card 72
9.4 Satisfied with the services provided by HDFC Bank 73
9.5 Purpose for using the card 74
9.6 Card which is more beneficial 75
9.7 Benefits provided by debit card of HDFC Bank 77
9.8 Benefits provided by credit cards of HDFC Bank 79
9.9 Problems faced in processing the card 81
9.10 Future prospects of credit & debit cards 82

CHAPTER 1
INDUSTRY
PROFILE
1.1 BROAD OUTLINE OF THE INDUTRY
BANKING
The word "bank" has been derived from the Italian word banco, a bench - the Jews in Lombardy
having benches in the market-place for the exchange of money and bills. When a banker failed,
his bench was broken by the populace; and from this circumstance we have our word bankrupt.
The History of Banking begins with the first prototype banks of merchants of the ancient world,
which made grain loans to farmers and traders who carried goods between cities. This began
around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire,
lenders based in temples made loans and added two important innovations: they accepted deposits
and changed money. Archaeology from this period in ancient China and India, also shows evidence
of money lending activity.
INTERNATIONAL LEVEL:
Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy,
to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th century Florence, establishing branches in many other parts
of Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni
Medici in 1397.
The development of banking spread from northern Italy through Europe and a number of important
innovations took place in Amsterdam during the Dutch Republic in the 16th century and in London
in the 17th century. During the 20th century, developments in telecommunications and computing

caused major changes to banks operations and let banks dramatically increase in size and
geographic spread. By the end of the 16th century and during the 17th, the traditional banking
functions of accepting deposits, money lending, money changing, and transferring funds were
combined with the issuance of bank debt that served as a substitute for gold and silver coins.
New banking practices promoted commercial and industrial growth by providing a safe and
convenient means of payment and a money supply more responsive to commercial needs, as well
as by "discounting" business debt. By the end of the 17th century, banking was also becoming
important for the funding requirements of the relatively new and combative European states. This
would lead on to government regulations and the first central banks. The success of the new
banking techniques and practices in Amsterdam and also the thriving trade city of Antwerp help
spread the concepts and ideas to London and helped the developments elsewhere in Europe.
1.2 BANKING IN INDIA:
The banking system in India was very inadequate still independence. However the number of
bankers was so small that rural area could not enjoy the benefits of banking. Individuals and firms
were working as bankers but functioning as money lenders. After independence the banking
system started developing at fast rate and today a number of banks are functioning in India having
branches spread all over India.
Banks may be classified into different types:-
➢ SAVING BANKS
➢ EXCHANGE BANKS
➢ COMMERCIAL BANKS
➢ COOPERATIVE BANKS
➢ INDUSTRIAL DEVELOPMENT BANKS
➢ LAND DEVELOPMENTS BANK
➢ INDIGENOUS BANKS
➢ MORTGAGE BANKS
➢ SPARE BANK
➢ FEDERAL OR NATIONAL BANK
➢ CONSUMER BANKS
CONSUMER BANKS

These are consumer friendly they encourage consumer in buying commercial and provide option
for easy repayment of loan amount
FEDERAL OR NATIONAL BANKS

These banks control principles and policies of other banks across the country. These banks are
managed and run by the government. This bank provides benchmarks which other banks should
follow.
SPARE BANK
These banks are present in Norway they promote both saving and commercial facilities to the both
people and organizations in Norway.
MORTGAGE BANKS
These banks are specialized in providing mortgage loans alone .In order to sell loans they depend
solely on secondary market.
INDIGENOUS BANKS
Native banks .they are normal money lenders only this time handling huge amount of money they
collect money from the community and provide loans to business man and industrialists for short
period of time.
SAVING BANKS
Saving banks are institutions formed the objective of stimulating the habitat of thrift among the
people. They seek to mobilize the savings of the community and invest them in bonds and other
securities, likely to yield a fair return. Interest or dividend earned on these investments enable the
saving banks to pay interest to deposit holders. They don’t however undertake the other usual
functions of commercial banks like granting of loans etc. a saving bank therefore is merely an
association for bringing scattered savings of the people into central pool.
INDUSTRIAL BANKS
Industrial banks are expected to provide long term financial assistance to industrial concerns.
Funds of industrial banks are raised by mobilizing long term deposits from the public. Functions
of these banks may be summarized as follows:-
Providing long term loans to industries requiring block capital for their scheme of expansion,
modernization etc.
Subscripting directly to share and debentures of industrial concerns
Promoting new industrial ventures

Providing technical guidance in the management at industries
Controlling the affairs of industrial concerns
EXCHANGE BANK
Exchange banks are the type of commercial banks whose main business is financing foreign trade
like ordinary commercial banks. These banks also undertake the usual banking business. But they
specialize in financing import and export trade in foreign exchange transaction. Most of the foreign
exchange business in India is handled by foreign exchange banks. They are incorporated outside
in England or in other countries.
COOPERATIVE BANK
Cooperative banks are institutions formed on the principles of cooperative to extend credit to
farmers, small scale industries and to promote in general the habit of thrift and self help among the
income groups of the society. Cooperative banks have today become the important agency of
finance. Cooperative banking structures resemble the pattern of a pyramid.
COMMERCIAL BANK
A commercial bank is a financial institution that accepts deposits against which cheques can be
drawn, lends money to industry, trade and commerce. The modern commercial banks are described
as dealers in debt. They borrow money from those who needs funds for commercial purpose. They
are therefore dealers in loan able funds of the community. The banks pay interest on its deposits
liabilities and charges higher interest on the advance granted by them. Thus they earn their margin
of profit.
1.3 BANKING STRUCTURE IN INDIA
Scheduled Banks in India

(A) Scheduled Commercial Banks
Public sector Banks Private sector Banks Foreign Banks in Regional Rural Bank
India
Nationalized Bank Old Private Banks Australian bank Andhra Pradesh grameen
Other Public Sector New Private Banks French banks bank
Banks German bank Assam grameen visas
(IDBI) Hong Kong bank bank
SBI and its Indonesian bank Arunachal Pradesh rural
Associates Japanese bank bank

Uttar Bihar grameen

bank
Bihar gramin bank
Table 1.1.1
(B) Scheduled Cooperative Banks
Scheduled Urban Cooperative Scheduled State Cooperative

Banks Banks
New Agra cooperative bank
Mahila cooperative bank
Ahemedabad mercantile cooperative bank ltd.

Table 1.1.2
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44 foreign
banks, 56 regional rural banks, 1,485 urban cooperative banks and 96,000 rural cooperative banks
in addition to cooperative credit institutions. As on May 31, 2020, total number of ATMs in India
increased to 210,415 and is expected to reach 407,000 by 2021.
According to Reserve Bank of India (RBI), India’s foreign exchange reserve reached US$ 534.56
billion as on July 31, 2020. According to RBI, bank credit and deposits stood at Rs 102.19 lakh
crore (US$ 1.45 trillion) and Rs 140.20 lakh crore (US4 1.98 trillion), respectively, in the fortnight
ending July 31, 2020.
Credit to non-food industries stood at Rs 101.33 lakh crore (US$ 1.43 trillion) on July 31, 2020.
Asset of public sector banks stand at Rs 72.59 lakh crore (US$ 1,038.76 billion) in FY19.
Total assets across the banking sector (including public, private sector and foreign banks)
increased to US$ 2.27 trillion in FY19.
New Private Sector Banks
Superior Financial Services
Designed Innovative Products
Tapped new markets
Accessed Low cost NRI funds
Greater efficiency
INDIAN BANKING INDUSTRIES

The banking sector in India is on a growing trend .it has vastly benefited from the surge in
disposable income of individuals .there has also been a noticeable up surge through ATM and also
internet and mobile banking
Consequently the different public, private and foreign banks have invested considerably to increase
banking network and thus their customer reach.
The banking industry in India has potential to become fifth large banking industry in the world by
2020.and third largest by 2025 according to KPMG-CII report, the banking sector is projected to
create up to two million new jobs driven by the efforts of RBI and govt. of India to integrate
financial services in rural areas .Also traditional way of operations will slow give way to modern
technology.
UPCOMING FOREIGN BANKS IN INDIA
By 2019 few more names is going to be added in the list of foreign banks in India. This is as an
aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks
in India greater freedom in India.
The following are the list of foreign banks going to set up business in India:-
➢ Royal Bank of Scotland
➢ Switzerland's UBS
➢ US-based GE Capital
➢ Credit Suisse Group
➢ Industrial and Commercial Bank of China
➢ Citibank N.A.
➢ HSBC Ltd
➢ Standard Chartered Bank


CHAPTER 2
COMPANY PROFILE
2.1 Background & Inception of HDFC Bank:

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 the RBI's liberalization of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC BANK Limited', with its registered office in
Mumbai, India. HDFC BANK commenced operations as a Scheduled Commercial Bank in
January 1995. HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as w ell as in international markets. Since its inception in 1977, the Corporation
has maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling u nits. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also has
a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market Reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment
HDFC BANK began operations in 1995 with a simple mission: to be a World Class Indian Bank.
We realized that only a single indeed focuses on product quality and service excellence would help
us get there. Today, we are proud to say that we are well on our way towards that goal. HDFC
BANK's mission is to be a World -Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC

Bank’s business philosophy is based on five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.
2.2 Business Segment

HDFC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has key business segments as:
2.2.1 Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corporate to small & mid-sized corporate and agriculture based businesses. For these customers,
the Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The bank is
also a leading provider of structured solutions, which combine cash management services with
vendor and distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer orientation,
the Bank has made significant inroads into the banking consortia of a number of leading Indian
corporate including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange members
and banks.
2.2.2 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. The products are backed by world-class service and delivered to the customers
through the growing branch network, as well as through alternative delivery channels like ATMs,
Phone Banking, Net Banking and Mobile 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.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the Master card Maestro debit card as well. The Bank launched
its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit
and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant

acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments.
2.2.3 Treasury:
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information, advice
and product structures. These have fine pricing on various treasury products through the banks
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.
2.3 Vision, Mission and Values

HDFC Bank’s mission is to be a world class Indian bank. We have a two-fold objective: first, to
be the preferred provider of banking services for target retail and wholesale customer segments.
The second objective is to achieve healthy growth in profitability, consistent with the bank’s risk
appetite.
The bank is committed to maintaining the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank’s business philosophy is based on
five core values: Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability.
2.4 PRODUCT SCOPE

HDFC BANK offers a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises.
The products of the company are categorized in to various sections which are as follows:
• Accounts and deposits.
• Loans.
• Investments and Insurance.
Figure 2.4.1

The above table describe the HDFC BANK in India provides different product and services these
are account and deposit, loan, cards, insurance, investment forex and payment services
CREDIT AND DEBIT CARDS OF HDFC BANK
Our range of Cards helps you meet your financial objectives. So whether you are looking to add
to your buying power, conducting cashless shopping, budget your expenditure, you will find a card
that suits you.
CREDIT CARDS

Besides arming you with unmatched spending power, HDFC Credit Cards are designed to meet
your unique needs. Choose one that's tailored for you. The best credit cards are available her e,
including even the online credit cards service Net safe.
There are following credit cards in HDFC BANK.
❖ Super premium credit cards:

❖ Infinia
❖ Regalia
❖ Dinner club black
❖ Co-brand credit card
❖ Jet privilege HDFC bank world
❖ Platinum times card
❖ Titanium time’s card
❖ Professional credit cards
❖ Doctor’s superia
❖ Teacher’s platinum
❖ Cash back cards
❖ Platinum edge
❖ Titanium edge
❖ Money back
❖ Other cards
PREMIUM CREDIT CARDS

Platinum plus credit cards
India’s only platinum plus credit card. A premium offering with fuel surcharge waiver & attractive
Reward Points
Benefits of platinum plus credit cards

▪ Attractive Reward Points
▪ Zero liability on lost card
▪ Interest free credit facility
▪ Revolving Credit Facility
▪ Free Add-on card
Platinum plus chip credit cards

Platinum plus credit card with Chip Technology for enhanced security. HDFC BANK, they
understand our need for safe and secure transactions.
The HDFC BANK Platinum plus Credit Card with Card Secure is one such solution. Card Secure
is an additional feature that makes all your Cr edit Card transact ions more secure, convenient and
rewarding!
Benefits of platinum credit cards
▪ Safe and secure transactions

▪ Online Security
▪ 0% Fuel surcharge
▪ Attractive Reward Points
▪ Utility bills through your credit card
Visa signature credit cards
Super premium credit card with special benefits and privileges in India and abroad
Features & Benefits

▪ Free Add-on card
▪ Signature Rewards
World MasterCard Credit Card
HDFC BANK presents the World MasterCard Credit Card - a very premium offering for the truly
elite. A card with tailor made premium privileges that complement a discerning lifestyle.
Features & Benefits
▪ World Luxury
▪ World Rewards
▪ World Benefit

TITANIUM CARDS
Convenience and savings with fuel surcharge waiver across all fuel stations.
Features & Benefits
▪ Titanium Rewards
▪ Zero petrol surcharges
▪ Revolving Credit Facility
GOLD CREDIT CARDS

Features& Benefits
▪ Attractive reward Points
▪ Rewards points redemption
▪ Worldwide acceptance
▪ Revolving credit facility
WOMEN S GOLD CREDIT CARDS
Features& Benefits
▪ Attractive rewards programmed
▪ Wide choice of redemption
▪ Revolving credit facility
COMMERCIAL CREDIT CARDS

❖ Corporate platinum cards
❖ Corporate credit cards
❖ Business Platinum Credit Card
❖ Business Gold Credit Cards
❖ Purchase Card
❖ Distributor Card
OTHER CARDS
Silver credit cards: The best features you could ask for in a credit card combined with all the services
offered by a world class bank. Get all with the HDFC Bank International Silver Credit Cards.
Spending money was never so rewarding!

Features& Benefits
▪ All-purpose credit card
▪ Earn while you spend
▪ Add-on cards
▪ Widely accepted
Visa value plus credit cards
Its power packed with a host of unmatched features that provides your family with true Value and
savings. No wonder we call it the Value plus Credit Card
Like the name suggests, the Value plus Credit Card brings you added value unlike any other card.
It is a Guar anteed Cash Back card which enables you to earn up to 5% Cash Back on your spends.
DEBIT CARDS
What if you could carry your bank account with you? HDFC BANK Debit Cards give you complete
and instant access to the money in your accounts without the risk or hassle of carrying cash. Choose
from:
➢ Classic cards
➢ Specialized Cards
➢ Premium cards
CLASSIC CARDS
Your HDFC Bank Easy Shop International Debit Card brings to you a world of convenience.
Daily Limits: Rs 25,000 at ATMs for Withdraw al and Rs 40,000 at merchant establishments for
shopping.
Access your bank account at over 8, 00,000 Visa/Maestro/Cirrus ATMs in India and abroad.
0 % petrol surcharge at select BPCL Petrol pumps: As a Debit Card holder, any surcharge levied
on your Card at select BPCL petrol pumps would be reversed in the subsequent month.
Shop at more than 3, 50,000 outlets in India and 13 million worldwide. The amount is debited
directly to your account.
Use our card overseas. Your account is debited in Rupees regardless of the currency in which you
spend.
Zero Liability on fraudulent Point Of Sale usage on lost or stolen cards.

Now get an Alert on your mobile phone or email for every purchase transaction done using your
Debit Card at a merchant outlet!! All you need to do is register for Insta Alerts!
Worldwide assistance from Visa and MasterCard on your card
Online Shopping: Pay Bills or Shop online using your HDFC BANK Debit Card either by using
Code service or by creating a one-time use virtual shopping Card
Debit Cards Offers ex citing offers available on your HDFC BANK Debit Card.
SPECIALIZED CARDS
We understand what it takes to build and sustain and sustain a business. Keeping in mind the needs
of your business, so HDFC introduce the easy shop business debit card.
This card combines business benefits with shopping delight.
Features
Cash back: for every Rs. 200 that you will spend, you will receive Rs. 1 as cash back. This cash
back is valid on all purchases made through the card, at all times of the year.
POS alerts: now get an alert on your mobile phone or email for every purchase transaction done
using your debit card at a merchant outlet
Special alliances by master card: special partner program in form of value adds/ special
privileges/discount from premium outlet and office related products.
Higher daily limits: Rs.50000 at ATMs for withdraw Rs.75000 at merchant establishments for
shopping
0% petrol surcharge at petrol pumps: as a business debit card holder, any petrol surcharge levied
on your card at any petrol pump in India will be reversed in the subsequent month (up to a maximum
of Rs. 750.00 per month per card).
Zero liability on fraudulent point of sale usage on lost or stolen cards: if it’s not tour purchase you
don’t have to pay for it, your debit card is safer than ever. In case you lose your debit card, call on
HDFC phone banking number or visit the nearest HDFC BANK branch
Online shopping: Pay bills or shop online using your HDFC BANK debit card either by using
verified by visa/master card secure code service or by creating a onetime use virtual shopping card

HDFC BANK Easy Shop Woman's Advantage Debit Card is India's first Woman's Debit Card of
its kind. Not only does it replace your ATM card, it also opens a world of privileges that match your
status and lifestyle.
Features & Benefits

Cash Back of Re. 1 for every Rs. 200 spent : For every Rs. 200 that you will spend , you will
receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all
times of the year!
Specialized Services: A unique service number will be available for Woman's Debit Card
customers to avail information / booking for the services listed ahead. Just call, quote your card
number and use any of the services. These services are subject to availability and rendered on a best
effort basis.
Entertainment assistance:
Dining Referral and Reservation Assistance

Flower& Gift Delivery
Movie Tickets
Home assistance:
Electrical& Electronic Gadget Repair Assistance

Pest Control Assistance
Home Cleaning Assistance
Wellness:
Medical Check Up Packages

Nursing Care Arrangement
50% discount on locker fee: You will be entitled to a 50% discount on locker fee for the 1st year.
This waiver would be applicable for only one locker per card. In order to avail of the discount,
please show your Woman's Advantage Debit Card at the branch
Special discount on purchase of Gold Bars: Preferential pricing will be given to you on purchase
of Gold Bars. In order to avail of the special discount, pleas show your Woman's Advantage Debit
Card at the branch.
Insurance cover:

You will be entitled to Personal Accident insurance cover of 2 lacs. With effect 1st march 09, for
Claims under Personal Accident Insurance to be accepted & processed, the cardholder should have
carried out at least 1 purchase transaction using the Debit Card, within 6 months prior to the event
date.
Zero Liability:
You will not have any liability to any fraudulent Point of Sale transactions on the debit card, which
take place up to 30 days prior to reporting the card loss
Free Bill Pay:
You will not be charged for Bill Pay Service, normally chargeable at Rs. 100 P.A
Daily Limits:
Rs. 25,000 at ATMs for Withdrawal and Rs. 40,000 at merchant establishments for shopping our
Easy Shop Titanium Debit Card bring to you a world of convenience. Now you can shop, dine,
pay bills, and do much more using your Easy Shop Titanium Debit Card.
It is specifically designed for customers having a salary account with HDFC BANK. You get a
complete range of features like petrol surcharge waiver at all petrol pumps in India and zero
liability. Not to mention that you can use this Card to withdraw cash at any of the Master/Cirrus
ATMs around the world.
PREMIUM CARDS
HDFC BANK Easy Shop Gold Debit Card not only replaces your ATM / Regular Debit Card, it
also opens a world of privileges that match your status and lifestyle.
Features & Benefits
Daily Limits: Rs.50000 at ATMs for Withdrawal and Rs. 75,000 at merchant establishments for
shopping.
Cash Back: For every Rs. 100 that you will spend, you will receive Re. 1 as cash back. This cash
back is valid on all purchases made through the card, at all times of the year!!!
0 % petrol surcharge at Petrol pumps: As a Gold Card holder, any petrol surcharge levied on your
Card at any petrol pump in India will be reversed in the subsequent month.( up to a maximum of
Rs 750.00 per month per card )

Zero Liability on fraudulent Point of sale usage on lost or stolen cards: If it's not your purchase
you don't have to pay for it!! Your Debit Card is safer than ever!
In case you lose your Debit Card, call us on our phone banking numbers or visit the nearest HDFC
BANK branch. With effect 1st March 09, for Claims under Personal Accident Insurance / Fire &
Burglary Insurance/ Loss of checked baggage Insurance to be accepted & processed, the
cardholder should have carried out at least 1 purchase transaction using the Debit Card, within 6
months prior to the event date.
Exclusive offers at premium outlets: Special Offers for our Easy Shop Gold Debit Card customers
in association with Visa and MasterCard will be provided from time to time. Click here for more
details
Online Shopping: Pay Bills or Shop online using your HDFC BANK Debit Card either by using
Verified by Visa/ MasterCard Secure Code service or by creating a onetime use virtual shopping
Card - Net Safe
Debit Cards Offers: Click here for exciting offers available on your HDFC BANK easy shop gold
debit cards easy shop platinum
HDFC BANK Easy Shop Platinum Debit Card not only replaces your ATM /Regular Debit Card,
it also opens a world of privileges that match your status and lifestyle
Features & Benefits
Daily Limits: Rs.1 lakh at ATMs for Withdrawal and Rs. 1.25 lakh at merchant establishments for
shopping.
Cash Back: For every Rs. 100 that you will spend, you will receive Re. 1 as cash back. This cash
back is valid on all purchases made through the card, at all times of the year!!!
0 % petrol surcharge at Petrol pumps: As a Platinum Debit Card holder, any petrol surcharge levied
on your Card at any petrol pump in India will be reversed in the subsequent month.( upto a
maximum of Rs 750.00 per month per card )
Insurance cover: The following are included in the insurance covers
For any Claims under Personal Accident Insurance / Fire & Burglary Insurance/ Loss of checked
baggage Insurance to be accepted & processed, the cardholder should have carried out at least 1
purchase transaction using the Debit Card, within 3 months prior to the event date.

Concierge Services:
Get the best in lifestyle, dinning and events with the HDFC BANK Platinum Concierge Services.
Just call the Concierge hotline 1800 119494 (only through MTNL/BSNL lines) or Delhi no: 011-
26931828 for assistance on any of the below mentioned services,
Dining Referral and Reservation Assistance
Flower & Gift Delivery
Movie Tickets
Electrical & Electronic Gadget Repair Assistance
Pest Control Assistance
Home Cleaning Assistance
Referral of Crèches in India
Zero Liability on fraudulent Point of sale usage on lost or stolen cards: If it's not your purchase
you don't have to pay for it!! Your Debit Card is safer than ever!
In case you lose your Debit Card, call us on our phone banking numbers or visit the nearest HDFC
BANK branch.
POS Alerts:
Now get an Alert on your mobile phone or email for every purchase transaction done using your
Debit Card at a merchant outlet!! All you need to do is register for Insta Alerts!
Exclusive offers at premium outlets:

Special Offers for our Easy Shop Platinum Debit Card customers in association with Visa will be
provided from time to time. Click here for more details
Online Shopping:
Pay Bills or Shop online using your HDFC BANK Debit Card by using Verified by Visa service
or by creating a onetime use virtual shopping Card - Net Safe
2.5 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of June 30, 2020, the Bank's distribution network
was at 5,326 branches across 2,825 cities. All branches are linked online on a real-time basis.
Customers across India are also serviced through multiple delivery channels such as Phone

Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's expansion plans
take into account the need to have a presence in all major industrial and commercial centers, where
its corporate customers are located, as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing / settlement bank to various leading stock
exchanges, the Bank has branches in centers where the NSE / BSE have a strong and active
member base. The Bank also has a network of 14,996 ATMs across India. HDFC Bank's ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa Electron /
Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.
2.6 BOARD OF DIRECTORS
PERSON DESIGNATION
Mr. Deepak S. Parekh Chairman
Mr. Nasser Munjee Independent director
Dr. J. J. Irani Independent Director
Mr. K. Sinha Independent Director
Mr. Jalaj Ashwin Dani Independent Director
Dr. Bhaskar Ghosh Independent Director
Ms. Ireena Vittal Independent Director
Mr. V. Srinivasa Rangan Executive Director
Ms. Renu Sud Karnad Managing Director
Mr. Keki M. Mistry Vice Chairman and CEO
2.7 Awards and Achievements

2020
Marketing and Brand Innovation of the Year
ET Innovation Awards 2020
Award

Asiamoney Asia's Outstanding

Most Outstanding Company - Financial Sector
Companies Poll 2019?
2020 BrandZ™ Top 75 Most Valuable HDFC Bank ranked India’s Most Valuable Brand
Indian Brands for the 7th consecutive year
Euromoney (Global) Awards For
Lifetime Achievement Award - Aditya Puri
Excellence 2020
FinanceAsia Country Awards 2020 Best Bank in India
Euromoney Awards for Excellence
India’s Best Bank
2020
HDFC Bank certified as a ‘Great Place to Work’
Great Place To Work
for 2020
HDFC Bank adjudged Best Domestic Bank in
Asiamoney Best Bank Awards 2020
India
Business Today 18th Best Companies HDFC Bank Among Top 10 Best Companies to
to work for in India Survey work for in India
Best Managed Company- Ranked 1st
HDFC Bank voted ‘Best Managed’, Best Corporate Governance- Ranked 1st
‘Best Governed’ Indian Company Best CEO- Aditya Puri, MD ranked 1st
Best Environmental Stewardship- Ranked 2nd
India’s Leading Private Bank – BFSI
Best Use of Banking Technology - Data
Dun & Bradstreet BankTech Awards
Analytics/BI/Big Data (Joint Winner with SBI)
2020
Best Use of Banking Technology - API Open
Banking
Bank of the Year - HDFC Bank jointly with SBI
Business Today – Money Today
Best Large Bank - HDFC Bank
Financial Awards 2019
Best Fintech Engagement - HDFC Bank
CNBC-TV18 India Business Leader HDFC Bank - Outstanding Company of the year
Awards (IBLA) 2019-20 award
2019
Outlook Money Awards
Private Bank of the Year
2019

CNBC-AWAAZ CEO
Mr. Aditya Puri has been adjudged CEO of The Year
AWARDS 2019
ICAI Awards for
Excellence in Financial Winner - Gold Shield category
Reporting for 2018-19
13th ICAI Awards 2019 HDFC Bank MD Aditya Puri inducted in CA Hall of Fame
11th Inclusive Finance HDFC Bank adjudged winner in Innovation and Inclusiveness
India Awards (IFI) 2019 in Priority Sector Lending
The Advertising Club
Excellence in Marketing - HDFC Bank
Marquees Awards 2019
DSCI Excellence Award for Best Security Practices in Banking
Sector, 2019: HDFC Bank
Nasscom DSCI DSCI Excellence Award for Security Leader of the Year, 2019:
Excellence Awards 2019 Mr Sameer Ratolikar
DSCI Facebook Privacy Application Challenge: Runner-up Mr
Rahul Rajendra prasad
2nd SIDBI-ET India
HDFC Bank adjudged Best MSE Bank (Private Sector)
MSE Awards 2019
QIMPRO Platinum Standard Awards 2019 - National Statesman
QIMPRO Awards 2019
for Quality in Business
Asia's Outstanding
Outstanding Company among banks in India - HDFC Bank
Companies Poll
BrandZ Top 75 Most

Valuable Indian Brands HDFC Bank - India's Most Valuable Brand for 6th year in a row
2019
Institutional Investor All-
Asia (ex-Japan)
Among The Most Honored Company List
Executive Team 2019
survey
Euromoney Awards for
India's Best Bank
Excellence 2019
Joint No. 1 in Large Corporate Banking with 75 per cent share
Greenwich Associates of market
study Leader in overall Quality of client relationship in Corporate
Banking

No. 1 in Middle-Market Banking with 60 per cent share of

market
Leader in overall Quality of client relationship in Middle-
Market Banking
Euro money Awards for
India’s Best Bank
Excellence 2019
UTI MF -CNBC TV18
Financial Advisor Best Performing Bank (Private sector)
Awards '18-19
BrandZ Top 100 Most
HDFC Bank featured for the fifth time in the BrandZ's Top 100
Valuable Global Brands
Global Brands List
2019
Governance Now BFSI -Digital Bank
Awards 2019. -Tech Trendsetter
Business world Magna -Best Large Bank
Awards 2019 -Fastest Growing Large Bank - Runner up
American Indian
Aditya Puri honored for corporate and philanthropic leadership
Foundation
Express Computer BFSI
Leadership Award for Outstanding Initiatives in Big Data /
Digital Innovation
Analytics Artificial Intelligence Enterprise Applications
Awards 2019
The Banker Bank of the
Bank of the Year - India
Year Awards 2018
The Banker Global
Private Banking Awards Best Private Bank in India
2018.
Mint - EY Emerging
Winner - Robotic Process Automation (Software) category
Technology Awards
Forbes' World's Best
No. 1 Bank in India - HDFC Bank
Banks report
Euromoney Trade Best Service (Asian Banks only) - India
Finance Survey 2019 Market Leader (Asian Banks only) - India
The Financial Express Best Bank - New Private Sector category
India's Best Banks
Awards 2017-18
FE CFO Awards 2019 Best CFO / Newsmaker of the Year

Asiamoney Best Bank Best Digital Bank (India)

Awards 2019
AIMA-JRD Tata HDFC Bank MD Mr. Aditya Puri has been conferred the
Corporate Leadership AIMA-JRD Tata Corporate Leadership Award for the Year
Award 2018 2018
Outlook Money Awards Best Private Sector Bank Award - Gold
2019
IDC Financial Insights Asia's Most Secure Bank
Innovation Awards
(FIIA) 2019
Dun & Bradstreet BFSI India's Leading Bank - Private Sector
Awards 2019
Euro money Private No. 1 in Asset Management category
Banking and Wealth
Management Survey
2019
Business Today - KPMG - Bank of the Year - HDFC Bank and SBI
India's Best Bank Best Large Bank - HDFC Bank
Awards 2019
FE Best Bank Awards Best Bank: New Private Sector

CHAPTER 3
SWOT ANALYSIS
STRENGTH WEAKNESSES
• Some gaps in range for certain sectors.

• Rising Net Cash Flow and Cash from • Customer service staff needs training.
Operating activity • MFs decreased their shareholding last
• Growth in Net Profit with increasing Profit quarter
Margin (QoQ) • Companies with Increasing Debt
• Growth in Quarterly Net Profit with increasing • Promoter decreasing their shareholding
Profit Margin (YoY) • Low Piotroski Score : Companies with weak
• Annual Net Profits improving for last 2 years financials
• Company with Zero Promoter Pledge
• FII / FPI or Institutions increasing their
shareholding
• Recent Results : Growth in Operating Profit
with increase in operating margins (YoY)
• Near 52 Week High

• Companies with rising net profit margins -

quarterly as well as TTM basis
• Strong Momentum: Price above short, medium
and long term moving averages
OPPORTUNITIES THREATS
• Profit margins will be good. • Increasing Trend in Non-Core Income

• Could extend to overseas broadly. • Increase in NPA in Recent Results
• New specialist applications. • Insiders sold stocks
• Could seek better customer deals. • Very high competition prevailing in the
• Brokers upgraded recommendation or target industry.
price in the past three months • Vulnerable to reactive attack by major
• Decrease in Provision in recent results competitors
• RSI indicating price strength • Lack of infrastructure in rural areas could
constrain investment.
• High volume/low cost market is intensely
competitive.
3.1 SWOT ANALYSIS

Strengths:
o HDFC Bank is the second-biggest private financial part in India having 2,201 branches and
7,110 ATM’s.
o HDFC Bank is situated in 1,174 urban areas in India and has in excess of 800 areas to serve
clients through telephone banking.
o The bank’s ATM card is perfect with all local and worldwide Visa/Master card, Visa
Electron/Maestro and American Express. This is one purpose behind HDFC cards to be the
most favored card for shopping and online exchanges.
o HDFC bank has a high level of consumer loyalty when contrasted with other private banks.
o The whittling down rate in HDFC is low and it is perhaps the best work environment in the
private financial area.
o HDFC has heaps of grants and acknowledgement, it has gotten ‘Best Bank’ grant from
different monetary rating organizations like Dun and Bradstreet, Financial express,
Euromoney grants for greatness, Finance Asia nation grants and so on.

o HDFC has great money related counsels as far as directing clients towards the right
speculations.
Weaknesses:
o HDFC bank doesn’t have solid nearness in rural regions; whereas ICICI bank its immediate
rival is growing in-country advertise.
o HDFC can’t appreciate first-mover advantage in quite a while. Rustic individuals are bad-
to-the-bone loyal as far as banking administrations.
o HDFC needs forceful promoting systems like ICICI.
o The bank centers for the most part on very good quality customers.
o A portion of the bank’s item classifications need execution and don’t have reach in the
market.
o The offer costs of HDFC are regularly fluctuating causing vulnerability for the financial
specialists.
Opportunities:
o HDFC bank has better resource quality parameters over government banks, subsequently,
the benefits development is probably going to increment
o The organizations in enormous and SMEs are developing at a quick pace. HDFC has great
notoriety regarding keeping up corporate compensation accounts
o HDFC bank has improved its awful obligations portfolio and the recuperation of awful
obligations are high when contrasted with government banks
o HDFC has awesome open doors abroad
o More noteworthy degree for acquisitions and key unions because of solid money related
position
Threats:
o HDFC’s nonperforming resources (NPA) expanded from 0.18 % to 0.20%. In spite of the
fact that it is a slight variation, it is anything but a decent sign for the money related strength
of the bank
o The non-banking budgetary organizations and new age banks are expanding in India
o The HDFC can’t extend its piece of the overall industry as ICICI forces significant danger
o The administration banks are attempting to modernize to contend with private banks
o RBI has opened up to 74% for outside banks to put resources into the Indian market


Chapter: 4
ANALYSIS OF FINANCIAL
STATEMENTS
BALANCE MAR 20 MAR 19 MAR 18 MAR 17 MAR 16

SHEET OF HDFC
BANK (in Rs. Cr.)
12 months 12 months 12 months 12 months 12 months
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share 548.33 544.66 519.02 512.51 505.64
Capital
TOTAL SHARE 548.33 544.66 519.02 512.51 505.64
CAPITAL
Revaluation 0.00 0.00 0.00 0.00 0.00
Reserve
Reserves and 170,437.70 148,661.69 105,775.98 88,949.84 72,172.13
Surplus

Total Reserves and 170,437.70 148,661.69 105,775.98 88,949.84 72,172.13

Surplus
TOTAL 170,986.03 149,206.35 106,295.00 89,462.35 72,677.76
SHAREHOLDERS
FUNDS
Deposits 1,147,502.29 923,140.93 788,770.64 643,639.66 546,424.19
Borrowings 144,628.54 117,085.12 123,104.97 74,028.87 53,018.47
Other Liabilities 67,394.40 55,108.29 45,763.72 56,709.32 36,725.13
and Provisions
TOTAL CAPITAL 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19 708,845.57
AND
LIABILITIES
ASSETS
Cash and Balances 72,205.12 46,763.62 104,670.47 37,896.88 30,058.31
with Reserve Bank
of India
Balances with 14,413.60 34,584.02 18,244.61 11,055.22 8,860.53
Banks Money at
Call and Short
Notice
Investments 391,826.66 290,587.88 242,200.24 214,463.34 163,885.77
Advances 993,702.88 819,401.22 658,333.09 554,568.20 464,593.96
Fixed Assets 4,431.92 4,030.00 3,607.20 3,626.74 3,343.16
Other Assets 53,931.09 49,173.95 36,878.70 42,229.82 38,103.84
TOTAL ASSETS 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19 708,845.57
OTHER
ADDITIONAL
INFORMATION
Number of 5,416.00 5,103.00 4,787.00 4,715.00 4,520.00
Branches
Number of 116,971.00 98,061.00 88,253.00 84,325.00 87,555.00
Employees
Capital Adequacy 19.00 17.00 15.00 15.00 16.00
Ratios (%)
KEY
PERFORMANCE
INDICATORS
Tier 1 (%) 17.00 16.00 13.00 13.00 13.00
Tier 2 (%) 1.00 1.00 2.00 2.00 2.00
ASSETS
QUALITY
Gross NPA 12,649.97 11,224.16 8,606.97 5,885.66 4,392.83
Gross NPA (%) 1.00 1.00 1.00 1.00 1.00
Net NPA 3,542.36 3,214.52 2,601.02 1,843.99 1,320.37
Net NPA (%) 0.36 0.00 0.00 0.00 0.00

Net NPA To 0.00 0.00 0.00 0.00 0.00

Advances (%)
CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for Collection 51,584.90 49,952.80 42,753.83 30,848.04 55,242.58
Contingent 1,128,953.40 1,024,715.12 875,488.23 817,869.59 821,565.54
Liabilities
Table 4.1

CHAPTER 5
LEARNING EXPERIENCE
5.1 Learning Experience in HDFC Bank:
I choose and started my internship with HDFC Bank. I was a little apprehensive in the beginning
because I didn’t want my internship to end up with just a certificate in my hands, as warned by my
seniors. I wanted to learn some real things instead.

So the internship started on 09th January 2020. It was totally a life changing experience as I got to
know how an office looks like and its environment. I learned how to handle intense pressure
situation while working at HDFC bank. Staff at the branch was very supportive and provided all
the necessary information required to complete my project study. I was asked to handle some of
the day to day activities, work on the system, dealing with customers and handling their grievances.
It was a great platform to interact with people. The customers believe in doing transactions
(whether it is operating lockers, taking loans, insurance, policies) with the bank employee who
they trust the most. The thing I enjoyed the most was banking is all about meeting different type
of people and building connections with customers.
I also came to know that there is a lot of work pressure and the job is completely target oriented
plus long stretched working hours and no personal life.
All the tasks that were given to me during this internship taught me a great deal. My Branch
Manager was a dynamic and powerful man. I think working under my supervisor was the best part
of my internship. He made sure I learn something from what we do in the Bank daily. My work
was more of practical experience with customers daily. So overall it was great working with
HDFC.

PART-B
CHAPTER 6
INTRODUCTION
6.1 STATEMENT OF THE PROBLEM

In present era, it is impossible to imagine modern bank transactions, commercial transactions and
other payments without using the plastic cards. Plastic currency is now gradually becoming a
necessity across the globe as more and more developed countries are opting for plastic compared
to paper as there are several inherent advantages. The growing involvement of smart phones has
made technology applications much more accessible to users. The Government also moves
forward for a “Digital India” and its focus on growing electronic payments is significant drivers
of growth in replacing physical payments with technology backed solutions. India is at the stage
of an amazing shift towards electronic money from traditional cash. For instance the Pradhan
Mantri Jan Dhan Yojana (PMJDY), is slowly building recognition among people to move from
paper to electronic money. The PMJDY alone has seeded over 150 million Rupay cards in the last
year, in addition to the 400 million debit cards already in circulation. There is still emergence for
significant increase in the usage of debit cards in the years to come as card.
There has been a drastic change in the banking products and the services by use of new technology.
Usage of Plastic Money such as Debit Cards and Credit Cards started increasing in India over a
period of time. Most banks now issue Debit Cards, where they have already converted all their
ATM Cards into Debit cards or ATM - cum - Debit Cards. The reason behind this is to deduct
bank costs. But the customers are in confusion about its usage. Such cards have overcome the
delayed payment process of cheques due to which sometimes merchants have to suffer. Still, there
are lot of technical problems involved in transactions, PIN and other operational aspects. It is an
excellent step to remove problem of cash. It has changed the buying habits of customers. From
psychological standpoint, human need for money is proportional to what each specific person is
interested in buying and what they think is within range. Credit card facility helped people in
estimating their future expenses.

6.1.1 PLASTIC MONEY
Plastic money is a term that is used predominantly in reference to hard plastic cards we use every
day in place of actual bank notes they can come in many different forms such as cash cards, credit
cards debit cards, pre-paid cash cards, store cards
Banking has evolved a long way from the days of the medieval money lenders counting coins on
the bench to the present scenario, where it is hard to trace the trail of money from the beginning to
the end.
The trail starts right from the small saver leaving a few rupees in his local bank to the billions of
rupee loans raised by a syndicate banks and financial institutions, capable of financing projects in
any country in the world. Still, these banking majors are heavily dependent upon their retail
home base of savers and borrowers. Most of the bankers began focusing on this retail market
segment as global competition intensified in late seventies and early eighties.
The debit card has emerged from the shadow of its older sibling, the credit card. Over the past
decade, debit card has grown from accounting for 274 million transactions in 1990 to 8.15 billion
transactions in 2002, to challenge the credit card as the preferred payment card. As it stands, the
debit card industry is a multi- billion dollar engine that helps drive bank profits and point-of
purchase consumer sales - but is also beginning to redefine traditional payment options in the
business and government sectors, such as food stamps, benefits, and payroll. The debit card has
arrived and is here to stay.
And yet, though it remains poised for growth, the debit card has also reached a
crossroads. A recent settlement has cost VISA and MasterCard approximately $3 billion, and has
dramatically reduced the fees they can charge for signature-based debit purchases. The
effects of the settlement reach into every layer of the industry - from rewards incentives, to
marketing programs, to future fee arrangements, and future growth. Consumer preferences
for PIN- or signature-based debit will certainly influence how things unfold, and whether either
debit card option will suffer or bloom in the short, mid, or long term.
Credit cards, one of the banking products that cater products to the needs of retail
segment has seen its number grow in geometric progression in recent years. This growth has been
strongly supported by the development in the field of technology, without which this could not
have been possible.
The history of phenomenal growth in the credit cards segment traces way back to in 1950, the time
when “Dinar Club” was established .The card provided select members with credit at 22
restaurants in New York and collected a commission for paying the bills promptly. The credit
card industry got a further boost with the arrival of American express began selling their
card as a prestige to hotels, restaurants, shops or airlines in America and slowly expanded the
network across the world.

The success of these two players attracted many other banks to join the credit card
business. The entire breed of new players saw a fresh opportunity of granting unsecured loans at
high interest rates to those credit cardholders who did not pay their bills on time. These banks were
not so concerned with collecting commissions from shops but were thriving on high interest
income from those who did not pay their bills on time.
It’s not that only the card numbers have increased, but even the types of cards on offer have seen
a surge. Today the domestic card industry is flooded with different types of cards ranging from
gold, silver, platinum, global, co-branded credit cards, smart to secure etc the list is endless.
Foreign banks have shouldered the major responsibility of increasing the card base and adding
value-added services to the card products in the past. This is also evident from the fact that the
market share of these foreign banks is estimated to be well over 70%. But the scenario has changed
dramatically in the last of couple of years with the entry of State Bank of India (SBI), a domestic
major in the banking sector. More and more nationalized banks and private sector banks like
ICICI and HDFC Bank are aggressively launching credit card with value added features.
Although at present the card market is mainly limited to India’s relatively bigger cities and tourist
locations only, there is also a potential in smaller cities. Domestic banks, owing to their vast
network and reach to smaller cities, can easily tap this potential. They would be better off,
penetrating into smaller cities and bringing credit card to the masses rather than cannibalizing other
foreign banks’ existing cardholder base.
The efforts of these banks to increase the card base is going to be wholeheartedly
supported by the residents of these smaller cities with their higher disposable income, changing
lifestyle, increasing travel and the growth in the entertainment sector.
Over the years, Indians have been averse to credit cards. This is primarily because they believed
that spending through credit is a sure shot way of getting into the debt trap. Of course, movies
highlighting the sad state of a borrower did not exactly help matters. And even the local kiryana
shops have the famous lines Aaj Nagad, Kal Udhari (cash today, credit tomorrow).
But the situation is not actually that scary. And it is all about right timing. Credit cards can be a
useful tool at the hands of savvy consumers who can effectively use the benefits offered by cards.
It is important to know that credit card is a financial tool that needs to be used
responsibly. While it ensures cash flow, it is not advisable for customers to borrow for a longer
period of time. Use it effectively and take good advantage of the time line and clear your debts,
without any additional costs.
6.1.2 CREDIT AND DEBIT CARDS IS THE CURRENCY OF MORDERN INDIA

Indian economy has flourished with the advent of liberalization privatization and globalization.
Banking sector is not an exception too. These reforms have presented a challenge before Indian
banking sector to shake hands with the pace of new technology. However mere technology up
gradation or introduction of innovative cannot improve state of affairs until customers do not
respond to it positively.
Indian consumers have never had it so good. The soiled notes are definitely out. Carrying cash is
no more `a pain in the neck' as consumers are relying more on the `plastic card' which gives them
money on credit.
Credit and debit cards of basically means debit cards and credit cards which is having a magnetic
stripe, logo, signature of the cardholder made of plastic. Credit Cards have finally arrived in India.
The card industry which is growing at the rate of 20% per annum is flooded with cards
ranging from gold, silver, platinum, global, smart to secure etc the list is endless. From just
two players in early 80s, the industry now houses over 10 major players vying for a major chunk
of the card pie.
The credit card market in India, which started out in 1981, is on the verge of an
unprecedented boom. Between 1987 and 2000, the market has virtually grown to over 3.8 million
cards with almost 25-30 % growth in new cardholders. SBI, one of the late entrants in the card
market, has managed to grab over 8 per cent of the market share from the bigwigs like
Citibank and Standard Chartered Bank. The bank’s credit card business has grown by 8 per cent
over the last two years.
According to bank officials, SBI's card issue so far is to the tune of 0.28 million which is expected
to In a bid to tap the lower middle class segment, SBI is currently sharpening its marketing The
bank is putting its best foot forward to compete with global card majors like Citibank and Standard
C chartered Bank. The global bigwigs have already established themselves as the `bankable brands'
in the metros. However, in a bid to move to greener pastures, they are trying to tap the co-branded
card market which has vast potential for growth. Citibank, which is leading the card empire,
recently launched a co-branded credit card in partnership with Indian Oil Corporation. The card
will offer its member’s reward points on every international spend which can be redeemed for free
fuel in India.
6.1.3 ATM-DEBT CARDS ARE THE FLAVOUR OF THE SEASON

The credit card business may have fallen short of expectations, but the debit card seems to lend
issuers and payment systems a cause for hope. Plastic money is getting popular, according to
a survey conducted by MasterCard international in the Asia pacific region comprising
of Korea, Malaysia, Indonesia Philippines and Thailand. Eighty percent of those who
participated in the survey were either the owners of a card or desired to own an ATM card. 50%
owned one and 30% wish to own a card.
According to Jeff Portelli, Maestro (MasterCard’s debit card offering) has grown from zero to
70 m cards in the Asia pacific region since its launch six years ago. Today, Maestro is issued
in 16 Asia Pacific markets and is accepted at over 35,000 ATMs and more than 220,000 points of
sale. In India, the card is available through Citibank, Times Bank and HDFC BANK.
The concept of debit cards has been a slow starter in India. Debit cards are currently offered by
only a handful of banks, which has made availability low. Besides, the annual fee attached to these
cards adds to the perception that consumers are asked to pay for their own money. However as the
market get cracking, these fears are expected to be eliminated in future.
DEBIT CARDS
A debit card also known as bank card or check card is a plastic payment card that provides the card
holder electronic access to their bank accounts at a financial institution. Physically the card is an
ISO 7810 card like a credit card; however, its functionality is more similar to writing a cheque as
the funds are withdrawn directly from either the cardholder's bank account (often referred to as
a check card ), or from the remaining balance on a gift card.
Depending on the store or merchant, the customer may swipe or insert their card into the terminal,
or they may hand it to the merchant who will do so. The transaction is authorized and
processed and the customer verifies the transaction either by entering a PIN or, occasionally, by
signing a sales receipt
As it is popularly known, it is an ATM card on the move. The Debit Card gives the freedom to
access the Savings or Current Account at merchant locations and ATMs Whenever to make
payments, the amount will be instantly debited to the account. There are around more than 5.3 lakh
Visa/PLUS ATMs and equally strong MasterCard/ Cirrus ATMs in over 140 countries
worldwide. All the purchases and cash withdrawals will be in the currency of the country are in,
while account will be debited in rupees. So you needn't carry traveler’s cheques or foreign
exchange the next time you travel
Debit Card can be used at any merchant location displaying the Visa or MasterCard logo or at any
ATMs displaying the Visa/PLUS or MasterCard/Cirrus logo. Besides that, one can always use it
at any of the bank ATMs as a normal ATM card.

6.1.4 WORKING OF DEBIT CARD

There are two basic ways to use your debit card .firstly you can withdraw cash from your current
or saving account at any of the thousands of cash machines in India. Second one is user has to
present the card to merchant who will swipe it through the electronic terminal and enter the amount
of purchase. The customer needs to sign the transaction slip. Account will be automatically debited
for the amount of the purchase and the transaction can be verified by entering the PIN. Debit Card
can be used to access the Account from over 5,000 Shops, Department Stores, Petrol Pumps and
Restaurants and over 235 ATMs in India .It can also be used at over 4 million Visa Electron
merchant locations and equally strong MasterCard outlets. If Debit Card ever gets lost or stolen,
card companies protect from fraudulent usage at the loss.
It is necessary to have a savings or current account with the debit card issuer; by filling an
application form. The card company then couriers the card across around a week’s time. The
Debit card does have a daily limit which could be somewhere around Rs.100000 at ATMs,
and Rs.40,000 at merchant locations. This again is subject to the balance available in the account.
Advantages of Debit Card
▪ Debit Card is often easier to get than a credit card.

▪ Check approval or to show identification at store is not required.
▪ No need to carry cash, a checkbook or traveler's checks.
▪ Debit cards are more readily accepted than checks, especially at the time of
traveling.
▪ No interest charges are to be paid by debit cardholders.
▪ Debit card processing fee for the merchant are generally lower than credit card fees.
▪ Once you have a checking accounting with a bank, a debit card will be issued to you.
▪ As compared to taking the time to write out a check, you can just enter your card’s chip or
swipe your card.
▪ Safety: As mentioned above, carrying a debit card is safe than carrying around a bunch of
cash.
▪ When you’re out-of-town, your card is accepted all over the world.
▪ Since you cannot spend more than you have in your account, this helps you avoid fees
associated with debt and credit cards (late payments, etc.). This makes this type of financial
tool kid-friendly to use.
Disadvantages of a debit card
▪ Once the amount is paid for purchase, if something goes wrong with the
purchase. Bank won't put money back into your account for items that are never delivered,
don't work or were misrepresented.

▪ Bank fees: such as monthly service charges, per-transaction costs or penalties for dropping
below the required minimum balance are charged by debit card holders.
▪ More chances of lose or misuse of debit card than a credit card.
▪ Because funds immediately leave your account when you buy things, you can’t borrow
funds on credit. A credit card does. It leaves cash at your disposal until the end of your next
billing period.
▪ With online banking a common thing these days, this is less of a disadvantage. Make sure
to check your account to see how much money you have left.
▪ Using your debit card at an ATM not affiliated with your bank will cost you in fees. As
opposed to a travel credit card, you may also be charged fees for foreign transactions
abroad.
▪ By building your credit score, you’ll have access to lower interest rates when borrowing
and increased credit limits. Your credit score is an important number that’ll impact your
life.
▪ By earning and taking advantage of credit card points, you can use credit card rewards to
travel and spend on other purchases. Debit cards do not offer this type of incentives.
Though, debit cards do offer their own set of incentives, such as travel insurance, etc.
Types of debit cards
There are currently two ways that debit card transactions are processed: online debit (also known
as PIN debit) and offline debit (also known as signature debit). In some countries including
the United States and Australia, they are often referred to at point of sale as "debit" and "credit"
respectively, even though in either case the user's bank account is debited and no credit is involved.
MasterCard Debit Cards: This along with Visa covers most of the market when it comes to credit
or debit cards, and is offered by a large number of banks in India. MasterCard is well known and
loved for impeccable and timely customer support, and the kinds of benefits and rewards they
offer. Also, MasterCard debit cards are accepted globally; which makes it a handy one while
travelling abroad.
Visa Debit Cards: Arguably the most recognized and used debit cards in India; Visa is affiliated
with a majority of Indian banks. Along with MasterCard, Visa offers 24/7 assistance, and is prompt
in providing the same. Visa has a lot of unique features such as the 24 hour Concierge Service
(which is self explanatory) and the Verified by Visa service (that is a major boost for secured
online transactions).
Visa Electron Debit Cards: The only way in which these debit cards differ from the Visa cards is
the overdraft function. While Visa debit card allow the user to over withdraw while charging them
for it, Visa Electron doesn’t allow that; which is a great feature since it does allow one to spend

within their limits. Another attractive feature is the zero interest charge on withdrawing cash. Visa
Electron Debit cards are safe, secure and simple.
RuPay Debit Cards: This is the Made in India competition to the biggies such as Visa and
MasterCard. Made public in 2012, the best aspect of RuPay is its massive reach. You can use these
cards in deep flung rural areas as well. Due to the lower transaction costs, RuPay is definitely a
healthier domestic alternative to people who want secure banking and don’t want to go for the
bigger multinational companies.
Maestro Debit Cards: Apart from ICICI Bank, most of the banks are using Maestro. It is known
for its enhanced online security system that makes it the choice for many.
Contactless Debit Cards: Want even faster transactions? There are debit cards based on NFC (Near
field Technology) which offer super fast transactions as there is no need to swipe in and enter
details. Many of the major banks are slowly embracing contactless debit card services.
ATM CARDS
These cards are typically used at automatic teller machines (ATMs) to withdraw cash, make
deposits, or transfer funds between accounts. ATM card is used by inserting the card into an
automatic teller machine and enter a personal identification number, or PIN, for security. The
system checks the account for adequate funds before permitting any transaction. Now we can also
use ATM cards for shopping purpose also.
Debit Card Problems can be worse than Credit Card Problems

When an improper charge appears on the credit card it cannot automatically out the money and
simply need to work with the credit card issuer to have the charge removed from the bill. When an
improper charge occurs with a debit card, however, the funds are automatically taken from the
account and customer is burdened with attempting to get the money back. Meanwhile, he may
experience cash flow problems and the legitimate checks could bounce.

6.1.5 CREDIT CARDS

A credit card is a payment card issued to users as a system of payments .it allows cardholder to
pay for goods and services based on the holders promise to pay for them. The issuer of the card
creates a revolving account and grants line of credit to the consumers (or users) from which
user can borrow money for payment to merchant or as a cash advance to user. It is also different
from a charge card (though this name is sometimes used by the public to describe credit cards),
which requires the balance to be paid in full each month. In contrast, a credit card allows the
consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are
the same shape and size, as specified by the ISO 7810 standard.
Credit cards in India are gaining ground. A number of banks in India are encouraging people
to use credit card. The concept of credit card was used in 1950 with the launch of charge cards
in USA by Diners Club and American Express. Credit card however became more popular with
use of magnetic strip in 1970.
Credit card in India became popular with the introduction of foreign banks in the country.
Credit cards are financial instruments, which can be used more than once to borrow
money or buy products and services on credit. Basically banks, retail stores and other
businesses issue these.
Major Banks issuing Credit Card in India
➢ State Bank of India Credit Card

➢ Bank of Baroda Credit Card
➢ ICICI Credit Card
➢ HDFC Credit Card
➢ IDBI Credit Card
➢ ABN AMRO Credit Card
➢ Standard Chartered Credit Card
➢ HSBC Credit Card
➢ Citi Bank Credit Card
➢
6.1.6 HOW CREDIT CARD WORKS
A user is issued credit after an account has been approved by the credit provider, and is given
a credit card, with which the user will be able to make purchases from merchants accepting
that credit card up to a pre-established credit limit. Often a general bank issues the credit, but
sometimes a captive bank created to issue a particular brand of credit card, such as Chase, Wells
Fargo or Bank of America, issues the credit.
When a purchase is made, the credit card user agrees to pay the card issuer. The
cardholder indicates their consent to pay, by signing a receipt with a record of the card details

and indicating the amount to be paid or by entering a Personal identification number

(PIN). Also, many merchants now accept verbal authorizations via telephone and electronic
authorization using the Internet, known as a Card not present (CNP) transaction.
The credit card may simply serve as a form of revolving credit, or it may become a
complicated financial instrument with multiple balance segments each at a different
interest rate, possibly with a single umbrella credit limit, or with separate credit limits
applicable to the various balance segments. Usually this compartmentalization is the result
of special incentive offers from the issuing bank, either to encourage balance transfers
from cards of other issuers, or to encourage more spending on the part of the customer. In
the event that several interest rates apply to various balance segments, payment allocation
is generally at the discretion of the issuing bank, and payments will therefore usually be
allocated towards the lowest rate balances until paid in full before any money is paid towards
higher rate balances. Interest rates can vary considerably from card to card, and the interest rate
on a particular card may jump dramatically if the card user is late with a payment on that card
or any other credit instrument, or even if the issuing bank decides to raise its revenue. As the
rates and terms vary, services have been set up allowing users to calculate savings available by
switching cards, which can be considerable if there is a large outstanding balance Because of
intense competition in the credit card industry, credit providers often offer incentives such as
frequent flyer points, gift certificates, or cash back (typically up to 1 percent based on total
purchases) to try to attract customers to their program. Now with the credit card customer can
also withdraw 15% of cash from card among limited amount.
Parties involved:
Cardholder: The owner of the card used to make a purchase; the consumer.
Card- issuing bank: The financial institution or other organization that issued the credit card to
the cardholder. This bank bills the consumer for repayment and bears the risk that the card is
used fraudulently. American Express and Discover were previously the only card-issuing banks
for their respective brands, but as of 2007, this is no longer the case.
Merchant: The individual or business accepting credit card payments for products or services
sold to the cardholder
Acquiring bank: Financial institution accepting payment for product or services on behalf of
the merchant
Independent sales organization: Resellers (to merchants) of the services of the acquiring bank.
Merchant account: This could refer to the acquiring bank or the independent sales organization,
but in general is the organization that the merchant deals with.

Credit Card association: An association of card-issuing banks such as Visa, MasterCard,

Discover, American Express, etc. That set transaction terms for merchants, card-issuing
banks, and acquiring banks.
Transaction network: The system that implements the mechanics of the electronic transactions.
May be operated by an independent company, and one company may operate multiple
networks. Transaction processing networks include:
Cardnet, Nabanco, Omaha, Paymentech, NDC Atlanta, Nova, Vital, Concord
EFSnet, and VisaNet.
6.1.7 BENEFITS OF ACCEPTING PLASTIC
More Sales: Studies show that credit card customers spend 2 1/2 times more than customers
who only carry cash.
Impulse Buying: Credit cards give customers freedom to spend for previously unplanned
purchases.
More Expensive Merchandise: Credit cards entice customers to purchase more expensive
merchandise than they had originally planned to buy.
Competitive Weapon: Credit card customers are often less conscious of slight price
differences and will seek out businesses that offer credit card payment options.
Enhanced Advertising: Since customers are more likely to shop at businesses where they
have credit card acceptance, they tend to look for and read those ads first.
Steadier Sales: Credit smoothes out business peaks. Cash shoppers buy heavier on paydays
and just before holidays; credit card customers buy whenever the need arises
Customer Loyalty: Research shows customers who spend more on credit tend to return to the
same business again.
Disadvantages:
On the other hand, credit cards can
1. Cost much more than other forms of credit, such as a line of credit or a personal loan, if not
paid on time.
2. It damages the credit rating if payments are late.
3. Allow to build up more debt than actually handled by customer.
4. It has complicated terms and conditions.

DIFFERENT TYPES OF CREDIT CARDS
• CHARGE CARD
A charge card carries all the features of credit cards. However, after using a charge card you
will have to pay off the entire amount billed, by the due date. If you fail to do so, you are likely
to be considered a defaulter and will usually have to pay up a steep late payment charge.
At the time of using the card he is not declared not as a defaulter even if misses due date. A
2.95 per cent late payment fees (this differs from one bank to another) is levied in the next
billing statement.
• AMEX CARD
Amex stands for American Express and is one of the well-known charge cards. This card has
its own merchant establishment tie-ups and does not depend on the network of MasterCard
or Visa.
• SMART CARD
A smart card contains an electronic chip which is used to store cash. This is most useful when
you have to pay for small purchases, for example bus fares and coffee. No identification,
signature or payment authorization is required for using this card. The exact amount of
purchase is deducted from the smart card during payment and is collected by smart card reading
machines. No change is given. Currently this product is available only in very developed
countries like the United States and is being used only sporadically in India.
• DINERS CLUB CARD
Diners Club is a branded charge card. There are a wide variety of special privileges offered to
the Diners Club cardholder. For instance, as a cardholder you can set your own spending limit.
Besides, the card has its own merchant establishment tie-ups and does not depend on the
network of MasterCard or Visa.
However, since this card is typically meant for high-income group categories, it may not be
acceptable at many outlets. It would be a good idea to check whether a member establishment
does accept the card or not in advance.
• PHOTO CARD
In this photograph is imprinted on a card, and then you have what is known as a photo card.
Doing this helps identify the user of the credit card and is therefore considered safer. Besides,
in many cases, your photo card can function as your identity card as well
.
• GLOBAL CARD
Global cards allow you the flexibility and convenience of using a credit card rather than cash
or travelers checks while travelling abroad for either business or personal reasons.
• CO-BRANDED CARD
Co-branded cards are credit cards issued by card companies that have tied up with a popular
brand for the purpose of offering certain exclusive benefits to the consumer.
• MASTER CARD AND VISA

Figure 6.1.7.1
MasterCard and Visa are global non-profit organizations dedicated to promote the growth of
the card business across the world. They have built a vast network of merchant
establishments so that customers world-wide may use their respective credit cards to
make various purchases.
Visa card: Visa, Inc., commonly called VISA, is an economic joint venture of 21,000
financial institutions that issue and market Visa products including credit and debit cards. The
company was originally named Visa International Service Association. The name change
occurred in the fall of 2007 as a part of Visa’s restructuring and IPO plan. The company is
based in San Francisco, California, USA.
OPERATIONS
Visa offers through its issuing members the following types of cards:
Debit cards (pay from a checking / savings account)
Credit cards (pay monthly payments with interest)
Prepaid cards (pay from a cash account that has no check writing privileges)
Visa operates the PLUS ATM network and the Interlink EFTPOS network, which
facilitate the "debit" protocol used with debit cards and prepaid cards.

6.1.8 WHAT IS THE DIFFERENCE BETWEEEN A DEBIT CARD AND A CREDIT

CARD?
Figure 6.1.8.1
The difference between a "debit card" and a “credit card" is that the debit card deducts the
balance from a deposit account, like a checking account, where the credit card allows the
customer to spend money on credit to the issuing bank.
In other words, a debit card uses the money you have and a credit card uses the money you
don't have Debit cards" which are linked directly to checking account are sometimes dual " -
purpose, so that they can be used as a credit card, and can be charged by merchants using the
traditional credit networks.
A merchant will ask for "credit or debit?" if the card is a combined credit debit card. If the
payee chooses "credit", the credit balance will be debited the amount of the purchase; if the
payee chooses "debit", the bank account balance will be debited the amount of t he purchase.
The “debit" networks usually require that a personal identification number be supplied. The
"credit" networks typically require that purchases be made in person and often allow cards to
be charged with only a signature, and/or picture ID. However, most merchant agreements in
the United States forbid picture ID as a requirement to use a Credit Card.
6.2 OBJECTIVES OF STUDY OF PLASTIC MONEY (CREDIT AND

DEBIT CARD) IN HDFC BANK
1) To know about different types of services in credit and debit cards offered by HDFC
BANK
2) To find out the customer preferences regarding credit and debit cards of HDFC BANK
in Anantnag district
3) To find the perception of customers regarding credit and debit cards of HDFC BANK
in district Anantnag.
4) To know about the customer satisfaction regarding the services related to credit and
debit cards offered by HDFC BANK in district Anantnag.

6.3 SCOPE OF STUDY OF CREDIT AND DEBIT CARDS
ATM cards are slowly being transformed into value- added debit cards. Bankers and analysts
see tremendous scope for growth in debit cards. "There is tremendous potential for debit cards.
It will soon be substituting cheques. Utility payments will soon be made through debit cards,
either at the ATMs or at the counters. The debit card can be used to withdraw cash from ATMs
of other banks depending on whether the debit card-maker has a Visa or a Maestro tie-up. Visa
and MasterCard both confirmed yesterday that they had been notified of the breach and had in
turn notified several banks and credit card companies of the potential data compromise. They
declined to say how many companies have been notified. Credit cards As well as convenient,
accessible credit; credit cards offer consumers an easy way to track expenses, which is
necessary for both monitoring personal expenditures and the tracking of work-related
expenses for taxation and reimbursement purposes.
During my project I got a scope to study the credit and debit cards of HDFC IN ANANTNAG.
It is a relatively new business with intense competition & each firm trying to capture each other
s market share. It was a great learning experience & I concluded following points:
• Credit and debit cards of industry are still in a nascent phase in ANANTNAG with an
underdeveloped infrastructure.
• Acceptability of money is limited to large cities having Malls, big retail stores
• The penetration of credit and debit cards of is limited to large cities i.e. Credit card
companies don t have many customers in tier II &tier III cities.
• The companies are indulging in aggressive marketing; they are not really concerned in
satisfying the customer s need.
• There is no major product differentiation in the various credit Cards; all of them are
providing similar services.
• The companies are not trying to retain the customers; they Are more interested in
broadening the customer base
6.4 LIMITATIONS

The limitations of a study are:

• The accuracy of the result is also limited to the reliability of methods
of investigation, measurement and analysis of data.
• The present study is based on the data from Anantnag city only and thus might not be
true for all other areas.
• There was lack of time.
• The data collected may or may not be accurate because of the biasness from
respondent side.

CHAPTER 7
REVIEW OF
LITERATURE

Cunningham Julie (Nov 98), Kansas state university in the study “College Student Using
The Credit Card ” stated that there is a need to determine whether college students are
responsible with their credit cards. This study was concerned with the problem faced by the
credit cardholders. Consumer perception regarding credit cards and debit cards is very much
different as it is precisely in a defined sector, role of online commerce or payment over the
internet, it future prospects of credit card and debit card in India. It also includes consumer
preference among debit card and credit card, consumer satisfaction level in case of both cards.
Loebecke S. Elliot (Jan 98) in his article “Smart Card Based Electronic Commerce:
Characteristics And Roles” stated that the origin of smart cards began when consumer
requirements for convenience and security out spaced the capabilities of magnetic stripe cards.
Providing increased data storage and added security, smart cards were introduced in Europe in
the early 1970’s as stored value cards for payphones. These early smart cards were disposable
and were an effective means to reduce losses. Today's advanced contact less and dual-interface
smart card technologies - together with emerging digital signature laws and the development
of biometric techniques - can bring a range of services to life on a single piece of silicon.
Swift, Kevin (May 1998) in his article “Credit Card And Debit Cards: What New?
Where To? ” stated that trends have changed and forces have impact on the card issuer, and
forecasting its future and the resulting impact on the card economy through the year 2002.The
report takes a different viewpoint from many studies of the industry which examined trends
from the issuers viewpoint. This study takes those trends as the end –point, and looks at the
forces that will impact the card issuers. It offers insight into the combination of industry,
economic, demographic, and technological changes that will have an effect on credit and
debit card products, and how together they will reshape the industry landscape and result in a
credit/debit card industry that will look far different in the year 2002 that it does
today. The convergence of the internet and various consumer and other electronic technologies
in combination with a desire on the part of companies in a number of industries to forge new
alliances and offer enhanced services has established a role for electronic cash.
Hayashi, Fumiko and Weiner Stuart E. (Sept 2005) in their article “Competition and
Credit and Debit Card Interchange Fees” stated that there is a bridge between the theoretical
and empirical literatures on interchange fees. Credit and debit card industries are examples of
two-sided markets. The distinguishing Feature of two-sided markets is they contain two sets
of end users, each of whom needs the other in order for the market to operate. In the case of
credit and debit cards, the two end-user groups are cardholders and merchants. Payment card
systems take one of two principal forms. They may be three-party systems: Cardholders,
merchants, and a single financial institution that offers proprietary network services, for

example, American Express. Alternatively, they may be four-party systems: cardholders,

merchants, card-issuing banks, and merchant acquiring banks, using the services of a
multi-party network such as MasterCard, Visa, or a domestic debit card network. In four-party
systems, the interchange fee is an instrument that networks can use to achieve a desired Balance
of cardholder.
Chakravorti ,Sujit (June 2003) in his article “ Theory of Credit Card Networks: A
Survey of the Literature” stated that Credit cards provide benefits to consumers and
merchants not provided by other payment instruments as evidenced by their explosive
growth in the number and value of transactions over the last 20 years. Recently, credit
card networks have come under scrutiny from regulators and antitrust authorities around the
world. Focusing on interrelated bilateral transactions, several theoretical models have been
constructed to study the implications of several business practices of credit card networks
Hunt, Robert in this article “An Introduction to the Economics of Payment Card
Networks” stated that how payment cards work and explains how the market for consumer
payment methods differs from most other markets economists study. These differences have
implications for when, why, and how the rules of antitrust law which regulate how firms
may exercise market power – should be applied to this industry. He focused on general-
purpose credit cards, such as Visa or MasterCard, and debit cards. We do not discuss
department store cards, oil company cards, or bankcards when they are used at ATMs Debit
cards allow customers to pay for goods and services at the point of sale by authorizing a
withdrawal from their checking or savings account. Most ATM cards can be used at the point
of sale as debit cards. Such transactions are called PIN debit transactions because the
cardholder must enter a four-digit personal identification number (PIN) to authorize the
transaction. Funds are then immediately withdrawn from the associated bank account. The
transaction itself is routed through an electronic funds transfer (EFT) network, for
example Star, NYC E, and Pulse.7 transaction, a signature debit transaction does not
immediately remove funds from the cardholder’s account; it typically takes a day or two for
the transaction to clear. MasterCard must also accept the comparable brand of debit card.
Chartered financial analyst in the article “Credit Card Crisis in South Korea” stated
that in the aftermath of the economic crisis of 97-98 South Korea has undertaken
several measures to deal with prudential problem relating to credit cards. This study attempts
to find out why the credit cards have been a disaster in South Korea in 1999, the Korean policy
makers came up with some revolutionary changes in the policy and law that stepped up the
usage of credit cards. Banks and credit card companies started issuing credit cards without
properly assessing the credit capacity of the customer. The South Korean credit industry and
the economy suffered a painful blow in 2003.it was a major credit card fiasco throughout the
country with thousands of citizens committing suicide to avoid the burden of debt & fear of
bankruptcy.
Chartered financial analyst (Nov 2007) in the article “Ethical Issues And
Challenges” stated that the credit card company has to take into consideration the challenges
which are there in the markets. Credit cardholders have the fear of losing the card and the card

is being misused by other person. The credit card is stolen or lost and being misused .Credit
card companies have to focus on the security and ethical issues related to credit cards.
Alvares, Cliford (Sep2012) the article reports on the plan of the Indian government to
introduce plastic currency that will have enhanced security features to counter the growing
problem of counterfeiting in the country.
Stone, Daniel
This article discusses the competitive advantage held by conventional credit card issuers and
what steps they can take to maintain their market share against online upstarts that offer lower
interest rates. The article describes the fierce competition online to offer low interest rates and
attract credit card applicants.
Khurana, Sunayna1, Singh, S. P.

IUP Journal of Bank Management; Feb2011, Vol. 10 Issue 1, p71-87, 17p, 31 Charts
The article offers information regarding the increasing trend of using debit cards instead of
cash amongst. It states that spenders between 18-25 years of age prefer to swipe their debit
cards even for petty expenses. It states that convenience and speed of such transactions are the
factors responsible for the trend, however, those who don't keep a track of their bank balances
face financial crisis. (6/17/2007)

CHAPTER 8
RESEARCH
METHODOLOGY

8.1 Research methodology

Research methodology deals with the method of study i.e. how the study can be carried out and
what techniques can be used. It is the careful investigation and enquiry in a systematic manner in
order to find solution to find problems in research. it consists of defining and redefining the
problems, formulating the hypothesis or suggestions solutions ,collecting data and evaluating the
data and at last carefully testing the conclusions to determine whether they fit he formulated
hypothesis or not.
8.2 RESEARCH DESIGN: Research design states the conceptual structure within
which research is to be conducted. A research design is the arrangement of conditions for
collections and analysis of data in a manner that aims of data in manner that aims to combine
relevant the research purpose with economy in procedure. The different research designs available
are:
• Exploratory research: it generally emphasis on discovery of ideas and insights. It’s more
qualitative rather than quantitative.
• Descriptive research: it is concerned with determining the frequency with which something
occurs or extent relationship between two variables. This study will be having an exploratory
research which is based on discovery of ideas and insights.
8.3 SAMPLING PLAN:-
• Survey Universe the universe consists of all people who are using credit and debit cards
of HDFC bank in Anantnag District (Kashmir).
• Sample size: this refers to the number of respondents to be selected from the universe to
constitute a sample. Large samples give more reliable results than the small samples. So
the sample size of 100 respondents was taken into consideration in case of research work,
which includes both debit and credit card holders.
• Sampling unit: sampling unit implies that who are the respondents. In this sample all those
who are using debit cards and credit cards of HDFC bank in Anantnag District (Kashmir).
• Sampling technique the technique used for my study is simple random sampling
that consists of questionnaire, which are given to respondents who are the regular users
of credit and debit cards of Anantnag District .
8.3.1 METHODS OF DATA COLLECTION:

PRIMARY DATA:
Primary data is that data which is collected for the first time and thus happens to be original in
character. In the study, primary data will be collected from direct source of information like
customers with the help of questionnaire survey and personal interview.
• Questionnaire: The tool used for study is questionnaire. Various questions
regarding the purposes of credit and debit cards of and the various procedures for obtaining
credit cards, the necessity of credit cards, increasing relevance of credit and debit cards of
among consumers, market leader among various companies issuing credit and debit cards.
SECONDARY DATA:
Secondary data are those which have already been collected by someone. For this study there will
be following secondary data.
• Websites
• Magazines
• Articles And Newspapers
• Books
8.3.2 Tools of Analysis:
• Diagrams and Tables: Various graphs and tables are used to describe the
performance of different credit cards and debit cards.
• Weighted Average: Weighted average method is also used to analyze the
comparison between plastic money. Weighted average means finding out the average
by assigning the weights to different factors. Formula for calculating weighted average is
WiXi/Wi.
• Pie chart and percentage: Pie charts and percentage are also used as a tool for analysis.

CHAPTER 9
DATA ANALYSIS
AND RESULTS

1: To know about respondents who are using the credit and debit cards of HDFC BANK.
Respondents were asked whether they use credit and debit cards of HDFC bank or not .The
results are as follows:
Table no. 9.1
Usage of credit and debit cards by respondents.
Options No. of respondents %age of respondents
Yes 99 99%
No 1 1%
Figure 9.1
Usage of credit and debit cards by respondents.
99%
YES
NO

Interpretation: From the above figure it can be interpreted that 100 respondents who are taken
for the study among them only 1 respondent is not using plastic money of HDFC bank and
hence it can be said that majority respondents are using credit and debit cards of HDFC BANK

2: Card possessed by respondents of HDFC BANK.

Respondents were asked to explain that which card they possess and the results are as follows:
Table 9.2
Card Possessed By Respondents
Options No. of respondents % of respondents
Debt card 58 58%
Credit card 28 28%
Both 14 14%
Figure 9.2
Card Possessed By Respondents
CARD POSSESSED
Both
14%
28% Debt Card

58%
Interpretation: From the above data collected we can interpret that that people mostly have debit
card, as credit card is little expensive than debit card so people mostly prefer debit card, but still
people have applied for their credit card also. Some people have both debit card and credit card
3: Time period of using the debit card/credit card/both of HDFC BANK.

Respondents were asked to explain the time period for which they are using them. The result is as
follows:
Table 9.3
Time period of using the card
Options No. of respondents % age of respondents
Less than 1 yr 22 22
1yr-3yr 26 26
3yr-5yr 34 34
More than 5 yr 18 18
Figure 9.3
Time period of using the card
TIME PERIOD
less than 1 yr between 1 yr-3yr between 3yr-5yr more than 5 yr
18% 22%
34% 26%
Interpretation: The above data reveals that mostly people are using credit and debit cards of
HDFC from last 3 to 5 yrs and rest are using it for less than one yr. credit and debit cards of HDFC
become a trend from the last few years.
4: Satisfied with the services provided by HDFC BANK

Respondents were asked whether they are satisfied with the services rendered by HDFC BANK in
credit and debit cards of.
Table 9.4
Satisfaction of services
Options No. of respondents % of respondents
Yes 98 98%
No 2 2%
Figure 9.4
Satisfaction of services
SATISFICATION WITH THE SERVICES

2%
Yes
no
98%
Interpretation: It is clear that mostly people are satisfied with the services rendered by HDFC
BANK in credit and debit cards only little number of respondents was not satisfied with the
services.
5: Purpose for using the card of HDFC BANK.

Respondents were asked to explain the purpose of using the credit and debit cards of HDFC. The
results are as follows:
Table 9.5
Purpose for using the card
Options No. of respondents %age of respondents
Shopping 30 30%
Withdrawal of money 48 48%
Hotel & restaurant 15 15%
Petrol filling 7 7%
Figure 9.5
Purpose for using the card
PURPOSE FOR USING THE CARD

shopping withdrawal of money hotel and restaurant petrol filling booking tickets
2%
5%
15% 30%
48%
Interpretation: It is clear that mostly people use the card for the withdrawal of cash. And then
for shopping purpose, 15% use it for going for hotel and restaurants. So the credit and debit cards
of HDFC are used by the respondents in various activities.
6: Which card is more beneficial of HDFC BANK?

Respondents were asked to explain which card is more beneficial according to them.
The result is as follows:
Table 9.6
Card which is more beneficial
Options No. of respondents % age of respondents
Debit card 50 50%

Credit card 34 34%
Both 16 16%
Figure 9.6
Card which is more beneficial
MOST BENEFICIAL
16%
50%
debt card
34% credit card

both
Interpretation: From the above table it is clear people mostly prefer debit card but credit cards
are not far behind, about 34% of the respondents feel that credit card is more beneficial than
debit card and some feel that both are beneficial.
7: Benefits provided by debit card of HDFC BANK

Respondents were asked to rank the benefits provided by debit card of HDFC BANK on a scale.
The result is as follows:
Table 9.7
Benefits provided by debit card of HDFC BANK
Wi 1 2 3 4 5
Options Strongly Disagree Neither agree Agree Strongly agree Weighted
disagree nor disagree average
Security 40 36 2 12 10 14.4
Free from 42 32 4 12 10 14.4

fraud
No 30 22 - 28 20 19.16
interest
charges
Any time 12 10 2 44 32 25
access
Easy to 8 12 - 36 44 26.4
carry

Figure 9.7
Benefits provided by debit card
BENEFITS PROVIDED BY DEBIT CARDS

30
25
20
weighted avg
15
10
0
free from no intrest any time
security easy to carry
fraud charges access
no. of respondents (weighted
14.4 14.4 19.16 25 26.4
avg.)
Interpretation: From the above collected data it is clear that respondents are highly dissatisfied
with the security matters relating to debit card of HDFC. After calculating the weighted average it
is clear that mostly respondents believed that it is easy to carry but they are highly dissatisfied with

security and frauds
8: Benefits provided by credit cards of HDFC BANK.

Respondents were asked to rank the benefits provided by credit card on a scale. The result is as

follows:
Table 9.8
Benefits provided by credit cards
Wi 1 2 3 4 5

(Xi) disagree nor disagree average
Easy to 8 12 - 36 44 26.4
carry
Convenient 2 4 - 42 52 27
to pay
Overdraft 14 24 4 36 22 22
facility
Prestige to 10 8 2 44 36 25
holder
Figure 9.8
Benefits provided by credit cards

BENEFITS PROVIDED BY CREDIT CARDS

30
25
20
weighted avg.
15
10
0
easy to carry convenient to pay overdraft facility prestige to holder
benefits 26.4 27 22 25
Interpretation: from the above study it can be seen that respondents agreed that credit card is
easy to carry and it give prestige to the holder. After calculating weighted average it is clear that
convenient to pay is the most preferred benefit among respondents.
9. Problems faced in processing the card of HDFC BANK?

Respondents were asked to rank the problems provided by card. The result is as follows:

Table 9.9
Problems faced in processing the card
Wi 1 2 3 4 5

disagree nor disagree avg.
Feeling of 10 12 2 38 38 25
insecurity
Fear of losing 8 10 - 36 46 25
card
Unnecessary 8 12 4 36 40 22
formalities
High fee 8 6 - 32 54 28
charged by
bank
Figure 9.9
Problems faced in processing the card

PROBLEMS FACED IN PROCESSING THE CARD

30
25
20
weighted avg.
15
10
0
high fee
feeling of fear of loosing unnecessary
charged by
insecurity card formalities
bank
weighted avg. (no. of
25 25 22 28
respondents)
Interpretation: From the graph it is clear that that the cardholders have the problem in processing
the card .According the weighted average the problem which is faced by most of the respondents
is the high annual fee charged by the banks. They also face the problem of losing the card and
being misused by some other person.
10. Respondents were asked to respond on would they use credit and debit cards of HDFC
BANK in future?

Respondents were asked to respond on would they use credit and debit cards of HDFC BANK in
future. The results are as follows:
Table 9.10
Future prospects of credit and debit cards
Options no. of respondents) % of respondents)
yes 56 56%
may be 32 32%
no answer 4 4%
can’t predict 6 6%
no 2 2%
Figure 9.10
Future prospects of credit and debit cards
weighted avg.
56
32
4
6
YES 2
MAY BE
NO ANSWER
cant predict
NO
Interpretation: It is clear from the graph mostly people believe that the future of credit and debit
cards of is at boom. 56% believe that there will be steady growth and 32% are of the view of steady
growth. 6% can’t predict anything
11. Respondents were asked would you refer others (your acquaintances) to use HDFC
banks credit card /debit cards.

Table 9.11
Refer your acquaintances to use HDFC cards
YES 45
NO 35
MAY BE 20

CHAPTER 10
FINDINGS AND
IMPLICATIONS

10.1 FINDINGS
Following are the findings that are drawn from study:-
➢ Respondent taken for this study are those who are using the credit and debit cards in their
daily life.
➢ 62% of the respondents believe that credit and debit cards of is the currency of modern
India.
➢ 36% of respondents own one debit card and 26% owns two debit cards of HDFC BANK.
➢ People have less craze for credit cards of HDFC. Only 28% of the respondents have credit
card.
➢ Respondents mostly prefer the credit and debit cards of HDFC and J&K bank.
➢ 34% using the cards for the last 3 years and the trend of credit and debit cards of have
emerged from the last few years.
➢ Mostly people use the cards for shopping and withdrawal of money .credit and debit cards
of is mostly preferred at the time of withdrawal of money.
➢ Debit card of HDFC is more beneficial according to 50% respondents.
➢ According to weighted average method the respondents highly satisfied that the debit card
is easy to carry and credit card provides convenience to pay.
➢ Customers are unsatisfied with credit card services so they spread negative word of
mouth when they are asked that is why 50% of customers don’t want to recommend
their credit cards to others.
➢ Clearly, the services of credit cards have not met the expectations of customers
➢ The interest changed by credit card companies amount to 36% per annum which in
very high customers are aware of this fact & almost all of them expressed this
displeasure.
➢ Credit cards have led to increase in the expenditure of people, People who have answered
no, have not used credit cards even once.

➢ Almost two third of people feel that due to debit cards & other facilities days of
credit cards are going to be over.
10.2 CONCLUSION
During my project I got an opportunity to study the services offered by HDFC BANK in
credit and debit cards and the customers behavior regarding credit and debit cards . It is a
relatively new business with intense competition & each firm trying to capture each other’s market
share. It was a great learning experience & I concluded following points:
➢ Credit card industry is still in a nascent phase in India with an underdeveloped
infrastructure.
➢ Acceptability of credit cards is limited to large cities having malls, big retail stores
➢ The penetration of credit cards is limited to large cities i.e. credit card companies don t
have many customers in tier II & tier III cities.
➢ There is no major product differentiation in the various credit cards; all of them are
providing similar services.
➢ In the last two years, spending pattern through credit and debit cards of has changed
drastically. Travelling, dining and jewellery are the top three purchases that Indians make
through credit cards. Two years ago, it was jewellery and apparel purchases that formed
the largest chunk of purchases through credit and debit cards of. Fuel accounts for a very
small portion of credit card purchases as these are largely paid through debit cards.
➢ Consumers were not only more open to the possibility of owning a financial card, but were
also more than willing to use their cards to settle dues. The status symbol aspect of owning
and using cards, too, played its part in bringing about such robust growth over the space of
a single year. Debit cards, in particular, proved immensely popular.
➢ In April 2020, the number of debit cards stood at 829.4 million, an increase of 800,000
cards over March 2020. At the same time, a total of 57.4 million credit cards were in
operation, losing 300,000 cardholders over March 2020, according to the Reserve Bank of
India. Between May 2019 and April 2020, India added some 9.4 million credit cards and
lost over 30.9 million debit cards.

➢ There are many ethical issues and challenges for credit and debit cards of issuing
banks/companies. Security relating to card should be first priority for each bank/company.
➢ Consumers prefer those cards mostly for shopping online E-commerce has given a better
way to use the credit and debit cards of.
➢ At last it is concluded that credit and debit cards of has a very bright future in the coming
years because of the increasing trend of e-commerce.
10.3 RECOMMENDATIONS
➢ Various offers and discounts should be provided by HDFC BANK on the credit and debit
cards of so that all the users feel satisfied with their card choice.
➢ The interest charges on credit cards by HDFC BANK should be reduced so that
people are encouraged to use it in regular routine
➢ More facility should be provided to the cardholder in order to satisfy them completely.
➢ There should be more sales executives to reinforce new customers.
➢ More outlets should be provided where the cards can be easily accepted.
➢ The unnecessary formalities should be reduced in order to obtain the credit and debit
cards of HDFC.
➢ Advertisements should be given through TVs, magazines and hoarding to have maximum
reach because the respondents perceive these as important promotional tools.
➢ The whole procedure of obtaining the plastic money needs to be authentic.
➢ HDFC BANK should provide security to the cardholders.

➢ HDFC BANK should reduce the amount of the annual fee charged on the cards.
BIBLIOGRAPHY

Chakravorti ,Sujit ,article “Theory Of Credit Card Networks: A Survey Of Literature “June 03
2003
Chartered financial analyst, article “Credit Card Crisis in South Korea” 2003
Chartered financial analyst, article “Ethical Issues And Challenges”, Nov 2007
Cunningham Julie, Kansas State University , article “College Student Using the Credit Card”
Nov’ 98
E.gordan and Natrajan, Financial Services, Himalaya Publishing House, Mumbai, 5th edition
Hayashi fumiko and weiner Stuart E., article “Competition and Credit and Debit Card Interchange
Fees”, Sept’2005
Hunt Robert , article “An Introduction to the Economics of Payment Card Networks”
Kothari C.R, “Research Methodology: Research and Techniques”; Vishwa Prakshan, New Delhi,
4th edition.
Loebecke.S Elliot, article “Smart Card Based Electronic Commerce Characteristics and Roles”
Jan’ 98
Swift, Kevin, and article “Credit Card and Debit Cards: What New? Where To?” ,May’ 1998
• WEBSITES
www.hdfcbank.co.in
www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/BankAccountsAndBankingProd
ucts/DG_10035158
finance.indiamart.com /investment_in_india/plastic_money.html
Paypal.com/cgi bin/webscr? cmd=xpt/cps/account/VDCFrequentlyAskedQuestions-outside
rba.gov.au/PaymentsSystem/Publications/BISCommitteeOnPaymentAndSettlementSystems/retai
l.
https://www.news18.com/news/partner-content/types-of-debit-cards-2126619.html
https://www.hdfcbank.com/personal/about-us/overview/who-we-are
https://www.hdfc.com/about-us#board-of-directors

https://www.moneycontrol.com/swot-analysis/hdfcbank/HDF01/threat
https://www2.slideshare.net/ final-report-80135033
https://www.hdfcbank.com/personal/about-us/overview/awards
https://www.brandlanes.com/blog/swot-analysis-of-hdfc-bank/
ANNEXURE

QUESTIONAIRE
Q1.Do you use credit and/or debit cards HDFC BANK?
(I) Yes
(II) No
Q2.Which card do you has of HDFC BANK?
(I) Debit card (II) Credit card (III) Both
Q3. Since how long you have been using debit card/credit card/both of HDFC?
(I) Less than 1 yr (II) 1yr-3yr
(III) 3yr-5yr (IV) 5 yrs & above
Q4. Are you satisfied with the services provided by HDFC BANK regarding these cards?
(I) Yes
(II) No
Q5. Normally for what purpose do you use cards? Rank according to your preference
(I) shopping (II) withdrawal of money
(III) Petrol filling (IV) Hotel & Restaurants
(V) Any other (going to theater etc)

Q6. Which card according to you is more beneficial of HDFC BANK?
(I) Debit Card (II) Credit Card (III) Both
Q7. What are the benefits provided by debit cards of HDFC BANK?
(I) Security (II) Free from Fraud
(III) No Interest Charges (IV) Anytime Access
(V) Easy to carry
Q8. What are the benefits provided by credit cards of HDFC BANK?
(I) Easy to carry (II) Convenient to Pay
(III) Overdraft Facility (IV) Prestige to Holder
Q9. What are the problems you are facing in having the card of HDFC BANK?
(I) Feeling of insecurity (II) Fear of losing the card
(III) Unnecessary formalities (IV) High fee collected by banks
Q10. Respondents were asked to respond on would they use of credit and debit cards of HDFC
BANK in future?
(I) Yes (II) May be (III) No answer
(IV) Can’t Predict (V) No
Q11. Would you refer others (your acquaintances) to use HDFC BANKS credit and debit cards?

(I) Yes (II) No (III) May be

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PLASTIC MONEY OFFERED BY HDFC BANK IN J&K ANANTNAG

“PLASTIC MONEY OFFERED BY HDFC BANK IN J&K

Submitted in partial fulfilment of the requirements for the

MASTERS IN BUSINESS ADMINSTRATION

AUQIF AHMAD TEELI

Under the Supervision of

DEPARTMENT OF MANAGEMENT STUDIES

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 1

DR. SYED IRFAN SHAFI

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 2

Awantipora, (AUQIF AHMAD)

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 3

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 4

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 5

Chapter - 1: Industry Profile 10-16

1.1 Broad outline of the industry ………………….………………... 11

Chapter - 2: Company Profile 17-35

2.1. Background& Inception of HDFC Bank …………………….... 18-19

Chapter – 3: SWOT Analysis 36-39

3.1 SWOT Analysis ……………………………………...…………… 37

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 6

Chapter -4: Analysis of Financial Statements 40-42

Chapter – 5: Learning Experience 43-44

Chapter – 6: Introduction 45-61

6.1 Statement of the problem ………………...…………….………. 46

Chapter - 7: Review of Literature 62-65

Chapter – 8: Research Methodology 66-68

8.1 Research Methodology …….….………………………………. 67

Chapter – 9: Data Analysis and Results 69-83

Chapter – 10: Findings and Implications 84-87

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 7

10.1 Findings …………… ……….…………………………………... 85

Tables Particulars Page No.

Table 1.1.1 Schedule Commercial Banks 14

Table 1.1.2 Schedule Cooperative Banks 14

Table 4.1 Balance Sheet of HDFC Bank 41-42

Table 9.1 Usage of credit & debit cards by respondents 70

Table 9.2 Card possessed by respondents 71

Table 9.3 Time period of using the card 72

Table 9.4 Satisfied with the services provided by HDFC Bank 73

Table 9.5 Purpose for using the card 74

Table 9.6 Card which is more beneficial 75

Table 9.7 Benefits provided by debit card of HDFC Bank 76

Table 9.8 Benefits provided by credit card of HDFC Bank 78

Table 9.9 Problems faced in processing the card 80

Table 9.10 Future prospects of credit and debit cards 82

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 8

Table 9.11 Refer your acquaintances to use HDFC cards 83

Figure No Particulars Page No.

2.4.1 Product Scope 21

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 9

1.1 BROAD OUTLINE OF THE INDUTRY

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 11

1.2 BANKING IN INDIA:

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 12

FEDERAL OR NATIONAL BANKS

Subscripting directly to share and debentures of industrial concerns

Promoting new industrial ventures

ISLAMIC UNIVERSITY OF SCIENCE AND TECHNOLOGY Page 13

Providing technical guidance in the management at industries

Controlling the affairs of industrial concerns

1.3 BANKING STRUCTURE IN INDIA

Scheduled Banks in India