A

RESARCH REPORT ON

“CUSTOMERS PREFRENCE ANS ATTREBUTES TOWARDS SAVING

ACCOUNT OF HDFC BANK”

SUBMITTED TO

PUNJAB TECHNICAL UNIVERSITY (PTU)

IN PARTIAL FULFILLMENT OF THE COURSE

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

BRAJENDRA KUMAR AWASTHI

SECTION: B (BATCH: S09)

ROLL NO. 15

E. MAIL ID: awasthi.iibs@live.com

MOBILE NO: +91-9035868729

UNDER THE GUIDANCE OF

PROF. KULDEEP SHARMA

MR. RAJNARAYAN SINGH

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 DECLERATION

I, the undersigned here by state that the report entitled;

“CUSTOMERS PREFRENCE ANS ATTREBUTES TOWARDS SAVING

ACCOUNT OF HDFC BANK‖ is genuine and bona fide work prepared by
me.
The empirical findings of this research report are based on the data collected
by myself. The matter presented in this report is not copied from any source.
I understand that any such copy is liable to punishment in the Ways
University authorities deem fit.
The work has not submitted for the award of any degree or diploma
either to Punjab Technical University (Jalandher) or any other universities.
This project report is submitted in partial fulfillment of the degree of
Master of Business Administration (MBA).

Date: /07/2010

Place: Bangalore

Signature:

(Brajendra Kumar Awasthi)

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 ACKNOWLEDGEMENT

1. I sincerely thank to Prof. Commander Surendra Prakash who has given

overview of research report and Prof. Kuldeep Sharma for their guidance
and support throughout the project.

2. I am grateful to Mr. K. V. Shiva Prasad (Branch manager of HDFC Bank

R. T. Nager) for his valuable support and information about my project
work. It enlightens us the real problems.

3. A special thanks to Mr. Rajnarayan Singh for his help and valuable
suggestions during the project.

*************************************************

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 TABLE OF CONTENTS

Sr. Topic Page No.

No

1 Introduction (7-8)
1. Background 7

2. Problem definition 8

3. Scope of the Study 8

2 Industry Profile (9-30)

1. Origin & Development of 9
Industry

2. Growth & Present status

12
of Industry

3. Future of the Industry

15

3 Profile of the Organization

1. Origin of the 16
Organization

2. Growth & Development

17
of Organization

3. Present Status of the

Organization 19

4. Functional Departments 22
of the Organization

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 5. Organization Structure 24
and Organization Chart

6. Product and Service

Profile of the 27
Organization Competitors

7. Market Profile of the

Organization 28

4 Objectives 29

5 Methodology 32

6 Findings 38

7 Limitations 43

8 Conclusions 44

9 Recommendations 45

10 Bibliography 46

11 References 47

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 EXECUTIVE SUMMARY

The project was carried out for understanding the customer preference & attributes
towards saving Account of HDFC Bank and its market potential. HDFC Bank was
established in the year 1994, they are old player in banking sector, and the bank has two
principle client segments –customer and asset management. The bank follows values
such as –Integrity, teamwork, respect, professionalism, & Mission. The segment of bank
we are considering here is- Corporate banking. The product out of which I have chosen
for research is Saving Accounts. This research helps us in finding out the customers
view regarding the product and Services offered by the HDFC bank and awareness by
promotion and also identifying the market potential of the product offered by the HDFC
Bank.

Almost all the Banks offer similar features and facilities with their Savings accounts.
There are certain reasons for existing customers of Saving Account of any Bank to shift
to another Bank. The level of service in terms of delivering whatever is promised, fast
response in case of problems is the most important benefit that the customers seek, from
the Bank they have a Saving Account with.

1. Network reach and visibility of a Bank is a very important criterion for the customer
while opening a Saving Account. We can also conclude from our analysis that network
reach in terms of Branches and ATMs is directly proportional to the market share in case
of Private Players.

2. In case of a new customer, if a bank approaches it first for opening a Saving Account
with them, then there is a good chance for the bank of getting many future businesses
and cross sales from the deal.

3. Aggressive Marketing is the key to increasing the market share in this area, since the
market has a lot of potential both in terms of untapped market.

Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the product features and
its value added services to make customer‘s product selection convenient.

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2. Contract Sales Executive (CSE) should recommend right product to the right customer
so as to ensure a high degree of satisfaction among the customer.

3. The bank needs to make people aware about their products and the basic benefits
they can derive out of it. And also the differential features of its savings account as
compared to other banks.70% of the people did not even know about the concept,
benefits and features of its saving accounts.

4. The bank should also target small business unit for whom maintenance of the AQB is
not a problem as this segment is not much penetrated.

5. Though the bank offers free doorstep banking once a day this fact is also not known to
many customers or they still do not trust this service whatever the reason the bank can
popularize this service to gain an edge over nationalized banks and Co-operative Banks.
6. Quality of service has been rated highly important by all demographic factors as a
reason for banking with a particular bank, Standard Chartered needs to improve the
services provided to its existing customers before attracting more in the future and use
word of mouth as a promotional tool to increase the sales potential of its savings
account.

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 INTRODUCTION

BACKGROUND

Statement of the problem:-

As a student of Master of Business Administration following topic was

selected for the study

―A study on customer preference and attributes towards saving account

of HDFC Bank‖

 It is difficult to find out the customers perception towards any bank.

 Customers are very much conscious bout value added services.

 It is difficult to study factors affecting the motivation level of

customers towards any bank.

 This study is only related to IT professionals and students in

Bangalore.

 It is really a tough task to find out whether people are motivated due
to differences in services rendered by the banks.

 It is difficult to get the required data for the study due to hectic time
schedule.

Sales Executives were with good background human being and through rigorous
process of recruitment but still not able to perform up to the expectation level of
company, HR is not able to sort out the problem why the performance is not coming
even after giving the full marketing support. The communication technique and dealing
with the customers is also a problem to the sales executives.

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 RESEARCH PROBLEM:
The project was carried out for understanding the customer preference & attributes

towards saving Account of HDFC Bank and its market potential. HDFC Bank was

established in the year 1994, they are old player in banking sector, bank has two

principle client segments –customer and asset management. The bank follows values

such as –Integrity, teamwork, respect, professionalism, & Mission. The segment of bank

we are considering here is- Corporate banking. The product out of which I have chosen

for research is Saving Accounts. This research helps us in finding out the customers

view regarding the product and Services offered by the HDFC bank and awareness by

promotion and also identifying the market potential of the product offered by the HDFC

Bank.

Scope of study:-

In this research project scope of research is concentrated on

developing business strategies for the HDFC to improve sales in feature but
these strategies related to only marketing strategies. So while developing
marketing strategies we only concerns of product, place ,promotion, price
which are the four P‘s of marketing mix .

These strategies will helpful to the HDFC to compete with competitors and
emerge as strong banker in the Banking sector.

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 INDUSTRY PROFILE
Origin and development of the industry:

Banking in India originated in the first decade of 18th century. The first banks were The

General Bank of India, which started in 1786, and Bank of Hindustan, both of which are

now defunct. The oldest bank in existence in India is the State Bank of India, which

originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the

three presidency banks, the other two being the Bank of Bombay and the Bank of

Madras. The presidency banks were established under charters from the British East

India Company. They merged in 1925 to form the Imperial Bank of India, which, upon

India's independence, became the State Bank of India. For many years the Presidency

banks acted as quasi-central banks, as did their successors. The Reserve Bank of India

formally took on the responsibility of regulating the Indian banking sector from 1935.

After India's independence in 1947, the Reserve Bank was nationalized and given

broader powers. A couple of decades later, foreign banks such as Credit Lyonnais

started their Calcutta operations in the 1850s. At that point of time, Calcutta was the

most active trading port, mainly due to the trade of the British Empire, and due to which

banking activity took roots there and prospered.

First of all we must note the fact that these institutions have changed very much in
character since their origin, and consequently nowadays perform many functions
unknown to those of former times. The first banks seem to have arisen in connection
with the business of exchanging money. In ancient times and especially in the middle
Ages the varieties of coins were greater even than at the present day, and they were
much less perfectly and honestly minted. Specialists were, therefore, required to
determine their exact value and equivalence and to exchange coins of one mintage for
those of another, and their BANK were in great demand at fairs and other places where

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merchants of different nations met for purposes of trade. Inasmuch as they kept their
boxes or chests of coins on benches or "banker," the name bankers came to them. On
account of their technical knowledge and the fact that they were obliged constantly to
keep on hand considerable quantities of the precious metals, this business in the early
Middle Ages was usually carried on by goldsmiths, but later it was sometimes assumed
by the governments of large commercial cities, as, for example, by Amsterdam in 1609,
by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank of Amsterdam
was the most important and may be regarded as typical of these early institutions. From
the earliest times also, bankers have been the chief agents through which foreign
exchanges have been conducted. As dealers in coin and bullion they had international
connections and knowledge of international affairs not possessed by other merchants,
and was, therefore, in a position to undertake the settlement of international accounts by
means of orders drawn on bankers in other countries or other cities with whom they had
regular business transactions. As keepers of other people's money they also promoted
saving, and banks thus became in time the chief savings institutions of the country.

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 GROTH AND PRESET STATUS OF INDUSTRY
Currently (2009), banking in India is generally fairly mature in terms of supply, product

and reach-even though reach in rural India still remains a challenge for the private

sect and foreign banks. In terms of quality of assets and capital adequacy, Indian

Banker are considered to have clean, strong and transparent balance sheets relative to

The Reserve Bank of India is an

autonomous body, with minimal pressure from the government. The stated policy of the

Bank on the Indian. Rupee is to manage volatility but without any fixed exchange rate-

And this has mostly been true. With the growth in the Indian economy expected to be

strong for quite some time especially in its services sector-the demand for banking

services, especially retail banking, mortgages and investment services are expected to

be strong. One may also expect M&A, takeovers, and asset sales. In March 2006, the

Reserve Bank of India allowed Warburg Pinks to increase its stake in Kotak Mahindra

Bank (a private sector bank) to 10%. This is the first time an investor has been allowed

to hold more than 5% in a private sector bank since the RBI announced norms in 2005

that any stake exceeding 5% in the private sector banks would need to be vetted by

them. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector

banks (that is with the Government of India holding a stake)after merger of New Bank of
India in Punjab National Bank in 1993, 29 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks.

They have a combined network of over 53,000 branches and 17,000 ATMs. According to

a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent

of total assets of the banking industry, with the private and foreign banks holding 18.2%

and 6.5% respectively Introduction of many more products and facilities in the banking

sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a

committee was set up by his name which worked for the liberalization of Bank practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to

give a satisfactory service to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. Time is given more importance

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than money. In 1995, the Brookings Institution published a paper entitled “The
Transformation of the U.S. Banking Industry: What a Long, Strange Trip It‘s Been.‖

Using a breathtaking array of facts and figures, the paper described in great detail the

Drastic changes that had occurred in the U.S. commercial banking industry over the 15

Years from 1979 to 1994. The banking industry was transformed during that period,

According to the paper (p. 127), by ―the massive reduction in the number of banking

organizations; the significant increase in the number of failures; the dramatic rise in off-

balance sheet activities; the major expansion in lending to U.S. corporations by foreign

banks; the widespread adoption of ATMs; . . . and the opening up of interstate banking

markets.‖ The paper went on to explain that most of these major changes in banking

could be traced to two developments: (1) the extraordinary number of major regulatory

changes during the period, from deposit deregulation in the early 1980s to the relaxation

of branching restrictions later in the decade; and (2) clearly identifiable innovations in

technology and applied finance, including improvements in information processing and

telecommunication technologies, the securitization and sale of bank loans, and the

development of derivatives markets. Other research would later confirm the papers

Assessment and its explanation of the course of events in the banking industry over the

Period 1979–1994.

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Over the two decades 1984–2003, the structure of the U.S. banking industry indeed
underwent an almost unprecedented transformation—one marked by a substantial
decline in the number of commercial banks and savings institutions and by a growing
concentration of industry assets among a few dozen extremely large financial
institutions. This is not news. As mentioned above, the decline in the number of banking
organizations has been ongoing for more than two decades and has been well
documented in the literature. Nevertheless, a brief overview will serve to clarify both the
scope of the decline and the increasing concentration of assets among the nation‘s
largest banking organization at year-end 1984, there were 15,084 banking and thrift
organizations (defined as commercial bank and thrift holding companies, independent
banks, and independent thrifts). By year-end 2003, that number had fallen to 7,842—a
decline of almost 48 percent (figure 1). Distributed by size, nearly all the decline occurred
in the community bank sector (organizations with less than $1 billion in assets in 2002
dollars), and especially among the smallest size group (less than $100 million in assets
in 2002 dollars). Yet the community banking sector still accounts for 94 percent of

Banking organizations

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 FUTURE OF THE INDUSTRY
The burden of reporting and other regulatory requirements will fall heavily and
disproportionately on small banks unless remedial action is taken. Further advances in
information technology will permit the development of new products, BANK, and risk-
management techniques but may also pose important competitive and supervisory
issues. Nonbank entities will continue to offer bank-like products in competition with
banks, raising anew the question of whether banks are still ―special‖ and, more
fundamentally, whether banks are sufficiently different from nonblank firms to justify the
maintenance of a Safety net for banks. It is useful, therefore, to try to chart the course of
the banking industry in the next five to ten years and to consider what policy issues the
industry and regulators will face. The authors of this study do not pretend to be
clairvoyant. They are mindful of the many financial predictions that were once offered
with confidence but turned out to be wrong or premature. This study is perhaps best
described as an exercise in strategic thinking. Its approach is to analyze what has
happened in the recent past, consider in detail reasons for expecting recent trends to
continue or to change, and draw the consequences for bank and regulatory policies. As
always, uncertainties abound, and events that may now appear fairly improbable may in
fact shape the future. This paper closes with a discussion of a number of such possible
events. The future-of-banking study addresses three broad questions:
1. What changes in the environment facing banking can be expected in the next five to
ten years?
2. What are the prospects for different sectors of the banking industry in this anticipated
environment? Because the banking industry is not monolithic and different segments of
the industry have, to some degree, different opportunities and vulnerabilities, the study
considers separately the prospects for large, complex banking organizations; regional
and other midsize banks; community banks; and limited-purpose banks.
3. What policy issues are the industry and regulators likely to face in the years ahead?

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 ORIGIN OF THE ORGANIZATION

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
HDFC Bank Limited. The Group's principal activities are to provide banking and other
financial BANK. The Group operates through four segments: Treasury, Retail Banking,
Wholesale Banking and Other Banking Business. The Treasury BANK segment consists
of net interest earnings on investments portfolio of the bank and gains or losses on
investment operations. The Retail Banking segment serves retail customers through a
branch network and other delivery channels. This segment raises deposits from
customers and makes slogans and provides advisory BANK to customers. The
Wholesale Banking segment provides loans and transaction BANK to corporate and
institutional customers. The Other Banking Operations segment provides BANK relating
to credit cards, debit cards, third party product distribution and primary dealership
business and other associated costs. The Bank was incorporated on 30th August 1994.
A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC),
a premier housing finance company. The bank is the first of its kind to receive an in-
principle approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on 10th October 1994 from RBI.
The Bank transacts both traditional commercial banking as well as investment banking.
HDFC, the promoter of the bank has entered into an agreement with National
Westminster Bank Pc. and its subsidiaries (Nat west Group) for subscribing 20% of the
banks issued capital and providing technical assistance in relation to the banks proposed
banking business.

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 GROWTH AND DEVELOPMENT OF ORGANIZATION

1994.
On 16.1.1995 90, 79,930 No. of equity shares were allotted to jarring ton Pet Ltd.
Another 400, 00,000 equity shares were allotted on private placement basis to Natwest
Group on 9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank
opened its first branch in Ramon House at Church gate, Mumbai on January 16th.
The Bank has created an efficient operating system using well tested state-of the- art
software.
1995
70 No. of equity shares issued to subscribers to the Memorandum &Articles of
Association on 30th August 1994. On the same date 500, 00,000 equity shares were
allotted to HDFC promoters. 509, 20,000 shares were allotted to HDFC Employees
Welfare Trust and HDFC Bank Employees Welfare Trust on 22nd December,
1996

HDFC Bank has entered the banking consortia of over 50 corporate, including some
leading multinational companies, flagship companies of local business houses and
strong public sector companies. HDFC Bank has set up a state-of-the-art dealing room
to handle all transactions possible in Indian financial markets. The Certificates of
Deposits were awarded a PP1+ rating which is the highest rating for short term
instruments indicating superior capacity for repayment.
2001
-The Bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance
has entered into a memorandum of understanding with the Chennai-based Indian Bank.
The Bank has launched the international Maestro debit card in association with Master
Card. HDFC Bank will launch its credit card in June through link-ups with MasterCard
and Visa.LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide Net
banking BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat
Petroleum Corporation has joined the e-Cash Forum which has been set up by the
Smart Card Forum of India. HDFC Bank has launched a new campaign for its age
Savings account. HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd.
to offer online real time accounting BANK to small and medium enterprises. The Bank
has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar and
Jaya Nagar on March 26. HDFC

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 Standard Life Insurance has launched a `Development Insurance Plan' a low cost life
insurance product developed specifically to meet the needs of economically weaker
sections. Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the
board of the bank effective from March 30 2009.
HDFC Bank files with US regulators to list more than 11 million American Depositary
Shares on the New York Stock Exchange. Today HDFC Bank has 1,412 branches and
over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an
online real-time basis. As of September 30, 2008 the bank had total assets of INR
1006.82 billion. For the fiscal year 2008-09, the bank has reported net profit of Rs.2,
244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank
increased by 58% reaching at Rs.19, 622.8 crore in 2008-09.
-

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 PRESENT STATUS OF ORGANIZATION

March March March

2007 2008 2009

Cited 228 316 452

Branches 535 684 1412

ATM’s 1323 1605 3275

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across
India. Amalgamation In 2002, HDFC Bank witnessed its merger with Times Bank Limited
(a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this,
HDFC and Times became the first two private banks in the New Generation Private
Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation
of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged
entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and
Balance Sheet size was Rs. 1,63,000 crore.

HEAD OFFICE

Ramon House, 169, Back Bay Reclamation,

H T Parekh Marg, Churchgate
Mumbai - 400020
Phone: +91 (22) 66316000, 66636000, 66316060
Fax: +91 (22) 22048834
Website: www.hdfc.com

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 CAPITAL STRUCTURE
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of
this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the
HDFC Group holds 19.4%. Foreign Institutional Investors` (FIIs) have around 28% of the
equity and about 17.6% is held by the ADS Depository (in respect of the bank's
American Depository Shares (ADS Issue). The bank has about 570,000 shareholders. Its
shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange,
while its American Depository Shares are listed on the New York Stock Exchange
(NYSE), under the symbol 'HDB'

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 FUNCTIONAL DEPARTMENT OF ORGANIZATION
The functional departments of the organization consist of the HR department, the
administrative department and the executive department. The HR department of the
organization consists of the people who employ the Persons who they think would be
able to do justice with the job handled. The administrative department of the organization
consists of the director and the manager of the organization. They presided the
organization and control all the operations of the organization such that the organization
could run in a smooth and effective manner. The executive department of the
organization consists of the various employees Who execute the job undertaken by
them. The employees consists of the team leaders, the Corporate financial consultants,.
the telecallers, various staffs and junior staffs who are the main structural framework of
the organization. The organization thus runs with the effective coordination of the HR
department, the administrative department and the executive department such that the
supervisors of the organization preside over the subordinate employees to give them
directions about fulfilling their works most efficiently and effectively. Technical
Consultancy Department: The Technical Consultancy Department is responsible for
technical appraisal of industrial projects. The mission of the division is aimed towards the
verification of the technical viability of industrial projects and assisting the Funds
management in taking the decisions that require technical expertise. Moreover, it is
responsible for conducting technical studies and rendering technical consultancy BANK
to certain industrial sectors for the purposes of investigating modern technologies and
productivity levels for local manufacturing plants.

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 H R DEPARTMENT
HDFC Human Resources department plans and direct for the employee population as
well as they are having the following functions as:-
 Hiring
 Promotions
 Reassignments
 Position classification and grading
 Salary determination
 Performance appraisal review and processing

 Personnel data entry and records maintenance

 Policy development
Work permitting immigration visa program
Workers‘ compensation
FINANCE DEPARTMENT
The Finance Manager is responsible for all aspects of the accounting and financial
administration of the HDFC, the supervision of the implementation of the HDFC financial
policies, directives and procedures and the initiation of the financial plans within the
guidelines of HDFC The department contains several distinct sections, each of which is
responsible for a proportion of the activities taking place within the finance department.
MARKETING DEPARTMENT:
The Marketing Consultancy Department plays an important role within the Fund as it
studies and analyzes marketing information in order to build solid base for management
decisions. The division also assists projects sponsors in formulating solid marketing
strategies to improve their industries and strengthen their position in the local and
international markets.
RESEARCH DEPARTMENT
The Research Department is having the capacity to act through four composing units
i.e., the market research unit, economic studies unit, and statistical studies unit. It is the
mission of the division to provide support BANK for information and consultancy to the
senior management and division in the areas of economic, statistical and marketing
information and consultancy through data analysis, processing of economic and
statistical data, market research studies and publishing related periodical reports.

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ORGANIZATION STRUCTURE AND ORGANIZATION CHART
The organization structure of the company HDFC is such that it comprises of the
departments and the employees in the hierarchical order so that they are able to perform
their functions and duties smoothly and effectively doing their job in a manner in which it
should be done. The organization is headed by the administrative department which
coordinates and controls the executive department. The executive department is a link
from the top and the bottom comprising of the lower level employees such that they work
together to fulfill the common objective of getting business from the persons who get in
touch with them and see to it that they are provided with the best of the BANK which
constitute giving financial advice to providing Account to the customers. The lower level
employees and the corporate financial consultants work together to see to it that the
database for providing financial BANK to sufficient number of people is made .They work
together to see to it that this database is followed and worked upon such that more and
more number of people get themselves avail the financial BANK of the organization.
Team leaders who form the part of the administrative department of the Organization
make sure that the clients that turn up for the financial BANK are dealt with most
efficiently and effectively.
The organizational structure is well planned out and it follows a simple format which is
follows:

Page 23 of 49
Each team lead has a team comprising only of both senior as well as junior market
research analyst who aid the team lead in the entire market research process as it has
been discussed previously. This is the basic organization a structure followed by HDFC
BANK

Page 24 of 49
PRODUCT AND SERVESES OFFERED BY ORGANIZATION
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. For individuals, the company has a range accounts, investment,
and pension scheme, different types of loans and cards that assist the customers. The
customers can choose the suitable one from a range of products which will suit their life-
stage and needs. For organizations the company has a host of customized solutions that
range from funded services, Non-funded services, Value addition services, Mutual fund
etc. These affordable plans apart from providing long term value to the employees help
in enhancing Goodwill of the company. The products of the company are categorized
into various sections which are as follows:
Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards

Prepaid Cards

Investments & Insurance

Forex Services
Payment Services
Net Banking
Insta Alerts
Mobile Banking
Insta Query
ATM
Phone Banking
NRI Banking

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Rupee Savings Accounts
Rupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency

Accounts for Returning Indians

Quick remit (North America, UK, Europe, Southeast Asia)
India Link (Middle East, Africa)
Coequal Lock Box

Page 26 of 49
The products and Bank of our competitors are as follows:
Customer Satisfaction Analysis:
Customer analysis involves gathering data about the customers and their characteristics.
They also conduct tailored customer satisfaction surveys to gauze customer satisfaction.
Risk
These BANKS are used by the competitors in order to gather external information and
research the possible effect on the competitiveness of company.
Product Research Bank:
The conduction of extensive product research by this service helps the competitors to
find out the marketability of a product or service. The research can be utilized to leverage
the major decisions of a company on the marketing of its products.
. Advertising Research Bank

Advertising research strives to gain valuable information about the effects and reach of
advertising the products in different forms of media.
Market profile of the organization:-
HDFC Bank Limited provides various financial products and services. It operates in three
segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking
segment provides various deposit products, including savings accounts, current
accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial
vehicle, home, gold, and educational loans; loans against securities, property, and rental
receivables; and health care finance working capital finance, construction equipment
finance, and warehouse receipt loans, as well as credit cards, debit cards, depository,
investment advisory, bill payments, and transactional services. In addition, this segment
sells third party financial products, such as mutual funds and insurance, as well as
distributes life and general insurance products through its tie-ups with insurance
companies and mutual fund houses. The wholesale banking segment provides loans,
non-fund facilities, and transaction services to large corporate, emerging corporate, small
and medium enterprise, supply chain, public sector undertaking, central and state
government departments, and institutional customers. It offers deposit and transaction
banking products, supply chain financing, working capital and term finance, agricultural
loans, and funded, non-funded treasury, and foreign exchange products. These
segments services include trade services, cash management, money market, custodial,
tax collection, and electronic banking. In addition, it provides correspondent bank

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services to co-operative banks, private banks, foreign banks, and regional rural banks;
and wealth management products for non-resident Indians. The Treasury Services
segment operates primarily in areas, such as foreign exchange, money market, interest
rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412
branches and 3,295 automated teller machines in 528 cities in India. The company was
founded in 1994 and is based in Mumbai, India. In today‘s growing world everyone
needs to diversify their business so as to keep in touch with the rapid development. By
analyzing the growing concerns of the market, HDFC has clients varying from investment
banking sector, retail, web designing companies, etc. Due to this rapid development
HDFC Group has many teams working for the above mentioned sectors. HDFC Bank
began operations in 1995 with a simple mission: to be a "World class Indian Bank".
We realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards
that goal.

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 OBJECTIVES

The main objectives of the research report are:

To find out the customer preferences while opening Savings A/c.
To study brand image of the bank.
To increase the business of the bank.

Hypothesis:-

43% of the customers are like 24*7 hours service at anywhere.

60% of people want value added services and security of money.

Importance of the Study:-

 This study will help us to know some of the good qualities of BANK
and its value added services.

 This will help us to study different factors among the different banks.

 The study will let us know how the business strategy should adopt to
attract customers without gets affected by the customers?

 It will help us to know the ratio of customers with other banks which
will help us to know the percentage of market share in industry.

 Also it will let us know about the negative factors of bank which will
help bank to rectify them

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 HYPOTHESIS
Sampling Design:- All items in any field of inquiry constitute a ‗Universe‘ or ‗population‘.
A complete enumeration of all the items in the ‗population‘ is known as census inquiry. It
can be presumed that is such an inquiry, when all items are covered, no element of
chance is left and highest accuracy is obtained. But in practice it may not be true. Even
the slightest element of bias in such an inquiry will get larger and larger as number of
observations increases. Moreover, there is no way of checking the element of bias or its
extent except through a resurvey or use of sample checks. Besides, this type of inquiry
involves a great deal of time, money and energy. Therefore, when the field of inquiry is
large, this method becomes difficult to adopt because of resources involved.
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure we would adopt in selecting items for the
sample.
Sample design may as well lay down the number of item to be included in the sample.
Sample design is determined before data are collected. There are many sample design
from which we can choose. Some designs are relatively more precise and easier to
apply than others. We must select/prepare a sample design which should be reliable and
appropriate for his research study.
Steps in Sample Design:-While developing a sampling design, we must pay attention to
following points.
Type of universe.
Sampling unit.
Source list.
Size of sample.
Parameters of interest.
Budgetary constraint.
Sampling procedure.
Criteria of Selecting a Sampling Procedure:-There are certain criteria of selecting a
sampling procedure as follows.
Inappropriate sampling frame.
Defective measuring device.
Non-respondents.

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 Indeterminacy principle.
Natural bias in the reporting of data.
Characteristics of Good Sample Design:- From what has been stated above, we can list
down the characteristics of a good sample design as under.
a) Sample design must result in a truly representative sample.
b) Sample design must be such which results in a small sampling error.
c) Sample design must be viable in the context of funds available for the research
study.
d) Sample design must be such so that systematic bias can be controlled in a better
way.
e) Sample should be such that the results of the sample study can be applied, in
general, for the universe with a reasonable level of confidence.
Different types of Sample Designs: - There are mainly two different types of sample
design.
1. Non-probability sampling:-Non- probability sampling is that sampling
procedure which does not afford any estimating the probability that each item
in the population has of being included in sample. Non-probability sampling is
also known by different names such as deliberate sampling, purposive
sampling and judgment sampling. The judgment of the organizers of the study
plays an important part in this sampling design.
2. Probability sampling:-Probability sampling is also known as ‗random sampling‘
or ‗chance sampling‘. Under this sampling design, every item of the universe
has an equal chance of inclusion in the sample. It is, so to say, a lottery
method in which individual units are picked up from the whole group not
deliberately but by some mechanical process. Here it is blind chance alone
that determines whether one item or the other is selected. The result obtained
from probability or random sampling can be assured in terms of probability. In
brief, the implications of random sampling are:
a. It gives each element in the population an equal probability of getting into the
sample; and all choices are independent of one another.
b. It gives each possible sample combination an equal probability of being
chosen.

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 METHODOLOGY

Introduction:

Research methodology is way to systematically solve the research problem it

may be understood as a science of studying how research is done
scientifically. One can also define research as a scientific and systematic
search for pertinent information on a specific topic in fact, research is an art
of scientific investigation.

Research is thus an original contribution to the existing stock of knowledge

making for its advancement. It is pursuit of truth with the help of study,
observation, comparison and experiment. In short, the search for knowledge
through objective and systematic method of finding solution to a problem is
research.

Source and Methods of data collections

Methodology adopted for the study

 Type of data source: In dealing with any real life problem it is often
found that data at hand are inadequate, and hence, it becomes
necessary to collect data that are appropriate. There are several
ways of collecting the appropriate data which differ considerably in
context to money costs, time and other resources at the disposal.
For present research work primary as well as secondary data will be
used.

 Tools of collecting primary data:- Primary data can be collected

either through experiment or through survey. If the experiment is
conducted, we observe some quantitative measurements, or the
data, with the help of which we examine the truth contained in our
hypothesis. But in case of survey data can be collected by using any
techniques like observation, personal interview, telephonic interview,
questionnaires and schedules. The information will be collected

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 directly from the IT professionals and students .For this I are going
to use the following techniques.

Questionnaires and surveys:-

I and the respondent came in contact with each other if this method of
survey was adopted. Questionnaires are given to respondent with a
request to return after completing the same. It is most extensively used
method in various surveys. Before applying this method a pilot study for
testing the questionnaire is conducted this reveals the weaknesses, if any,
of the questionnaire. Questionnaire to be used must be prepared very
carefully so that it may prove to be effective in collecting the relevant
information. This will include research related question, providing limited
answer to specific response or on numeric scale.

b] Interview:-We follow the rigid procedure and seek answers to a set of

pre-conceived questions through personal interviews. It plays s an
important role in an industrial surveys in developed regions, particularly,
when the survey has to be accomplished in a very limited time. This
method of collecting data is usually carried out in a structured way where
output depends upon the ability of the interviewer to a large extent. This will
include employees and students to interview, develop the interview
questions including the open ended and close ended questions and
carefully eliminating the leading questions.

 Sampling Techniques:-There are various way of selecting the

sample or what is popularly known as the sample design or
sampling technique like deliberate sampling, simple random
sampling, systematic sampling, stratified sampling, quota sampling,
cluster sampling and area sampling, multi-stage sampling and
sequential sampling. The study will use simple random sampling. All
sample units will be personally contacted and interviewed. The
random sampling is also known as chance sampling or probability
sampling where each and every item in population has an equal
chance of inclusion in sample and each one of possible samples, in
case of finite universe, has the same probability of being selected. It

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 may be pointed out that normally one should resort to random
sampling so that bias can be eliminated and sampling error can be
eliminated. There are better reasons for random sampling like
convenience and low costs.

 Tools of collecting Secondary Data:- Secondary data means the

data that are already available i.e. we refer to the data which have
already been collected and analyzed by someone else. When we
utilize secondary data, then we have to look into various sources
from where we can obtain them. In this case we are not confronted
with the problems that are usually associated with the collection of
original data. Secondary data may either be published or
unpublished data.

a. Document Review: - Obtaining the actual forms and operating

documents currently being used.

b. Observation: -This method implies the collection of information by

way of our own observation, without interviewing the respondents.
The information obtained relates to what is currently happening and
is not complicated by either the past behavior or future intentions or
attitudes of respondents. This method no doubt an expensive
method and the information provided by this method is also very
limited. As such this method is not suitable in inquiries where large
samples are concerned. Verifying the statements made during the
interviews.

c. Web search: - The information related to research subject will be

studied from internet to get more information.

Methods of data analysis and statistical techniques:-

The data, after collection, has to be processed and analyzed in accordance with the
outline laid down for the purpose at the time of developing the research plan. This is
essential for scientific study and for ensuring that we have all relevant data for making
contemplated comparisons and analysis. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that exist among data-
groups. Thus, ―in the process of analysis, relationships or differences supporting or

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conflicting with original or new hypotheses should be subjected to statistical tests of
significance to determine with what validity data can be said to indicate any conclusions‖.
The opine that analysis of data in a general way involves a number of closely related
operations which are performed with the purpose of summarizing the collected data and
organizing these in such a manner that they answer the research questions.
Processing operations:-The explanation of all the processing operations is as follows.
1. Editing: - Editing of data is a process of examining the collected the raw data
detect errors and omissions and to correct these when possible. Editing is done to
assure that the data is accurate, consistent with other facts gathered, uniformly
entered, as completed as possible and have been well arranged to facilitate
coding and tabulation.
2. Coding: - Coding refers to the process of assigning numerals or other symbols to
answer so that responses can be put into a limited number of categories or
classes.
3. Classification: - Most research studies result in a large volume of raw data which
must be reduced into homogeneous groups if we are to get meaningful
relationships. This fact necessitates classification of data which happens to be the
process of arranging data in groups or classes on the basis of common
characteristics. There are two types, depending upon the nature of the
phenomenon involved:
a. Classification according to attributes.
b. Classification according to class-intervals.
4. Tabulation: - When a mass data has been assembled, it becomes necessary for
the us to arrange the same in some kind of concise and logical order. This
procedure is referred to as tabulation.

Types of Analysis:-Analysis, particularly in case of survey or experimental

data, involves estimating the values of unknown parameters of the
population and testing of hypotheses for drawing inferences. Analysis may,
therefore, be categorized as descriptive analysis and inferential analysis. In
this context we work out various measures that show the size and shape of
distribution along with the study of measuring relationships between two or
more variables.

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I may as well talk of correlation and casual analysis. Correlation analysis
studies the joint variation of two or more variables for determining the
amount of correlation between two or more variables casual analysis is
concerned with the study of how one or more variables affect changes in
another variables. It is thus a study of functional relationship existing
between two or more variables.

In modern times, with the availability of computer facilities, there has been
rapid development of multivariate analysis which may be defined as ―all
statistical methods which simultaneously analyze more than two variables
on a sample of observations‖. Usually the following analyses are involved
when we make a reference of multivariate analysis:

Multiple regression analysis.

Multiple discriminate analyses.

Multivariate analysis of variance.

Canonical analysis.

But we have used inferential analysis which is concerned with the various
tests of significance for testing hypothesis in order to determine with what
validity data can be said to indicate some conclusion or conclusions. It is
also concerned with the estimation of population values. It is mainly on the
basis of inferential analysis that the task of interpretation is performed.

Key concepts definition: - Some of the key concept definition which are used in the
study are as follows.
i. Universe/Population:- From a statistical point of view, the term ‗Universe‘ refers to
the total of the items or units in any field of inquiry, whereas the term ‗population‘
refers to the total of items about which information is desired. All units in any field
of inquiry constitute universe and all elementary units constitute population. Quit
often, we do not find any difference between population and universe, and as
such the two terms are taken as interchangeable. However, we must necessarily

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 define these terms precisely. If the number of items is infinite then the
universe/population is called infinite.
ii. Sampling frame: - The elementary units or the group or cluster of such units may
form the basis of sampling process in which case they are called as sampling
units. A list containing all such sampling units is known as sampling frame. Thus
sampling frame consists of a list of items from which the sample is to be drawn.
iii. Sampling design: - A sample design is a definite plan for obtaining a sample from
the sampling frame. It refers to the technique or the procedure we would adopt in
selecting some sampling units from which inferences about the population is
drawn. Sampling design is determined before any data are collected. Various
sampling designs have already been explained earlier in the book.
iv. Statistic(s) and parameter(s):- A statistic is a characteristic of a sample, whereas
a parameter is a characteristic of population. Thus, when we work out certain
measure such as mean, median, mode or the like ones from samples, then they
are called statistic(s) for they describe the characteristics of sample. But when
such measures describe the characteristics of a population, they are known as
parameter(s). for instance, the population mean is parameter, whereas the
sample mean is statistic. To obtain the estimate of parameter from a statistic
constitutes the prime objective of sampling analysis.
v. Sampling error: - Sample surveys do imply the study of a small portion of
population and as such there would naturally be certain amount of inaccuracy in
the information collected. This inaccuracy may be termed as sampling error or
error variance. In other words, sampling errors are those errors which arise on
account of sampling and they generally happen to be random variations in the
sample estimate around the true population values.
vi. Precision: - Precision is the range within which the population average will lie in
accordance with the reliability specified in the confidence level as a percentage of
the estimate +- or numerical quantity.
vii. Confidence level and significance level:- The confidence level or reliability is
expected percentage of times that the actual value will fall within the stated
precision limits.
viii. Sampling distribution:-All the values of a particular statistic, say mean, together
with their relative frequencies will constitute the sampling distribution.

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 FINDINGS
Getting data ready for analysis:-
The data after collection has to be processed and analyzed in accordance with the
outline laid down for the purpose at the time of developing the research plan. For this we
use the following processing operations.
Editing
Coding
Classification
And Tabulation.
Data analysis:-

Age Distribution in Customers:

AGE GROUP NO OF PERCENTAGE

CUSTOMERS
20-30 28 93.33

30-40 2 66.66

40-50 0 0

TOTAL 30 100

Result: - 93% Customers we have seen are below 30.

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Gender distribution of Customers:

Gender No of Customers Percentage

Male 25 83.33333333

Female 5 16.66666667

Total 30 100

Result: - 83% Customers are male and only 17% are female
Total Year of Service taken by Customers:
YEAR OF NO OF PERCENTAGE
SERVICES Customers
1--2 8 26.66666667
2--4 11 36.66666667
4--6 4 13.33333333
6--8 4 13.33333333
8--10 2 6.666666667
more than 1 3.333333333
10
TOTAL 30 100

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NO OF CUSTOMERS ACCORDING TO BANKS

Bank No of Respondents %

Kotak Mahindra 3 3

Co Operative 48 48

ICICI 5 5

HDFC 33 33

Nationalized 31 31

HYPOTHESIS TESTING:
Hypothesis Testing [1]

Hypothesis: 43% of customers are not like 24*7 hours

service at anywhere H0: p=43%
Ha: p! =43%
Hence,
n no of sample =30
P=0.43 and
q=0.57

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 Observed sample proportion (P^) =27/30=0.9
And the test statistic Z= (p^-p)/ √p*q/n
= (0.9-0.43)/ √ (0.43*0.57/30)
=0.47/0.0903
=5.2048
R: |Z|>1.96
Z (cal)>Z (table)
I.e. Reject H0
I.e. Our hypothesis 43% of customers are not like 24*7 hours
service at anywhere proved wrong at 5% level of significance.
Result: From our data we have seen that only 10% of
customers said they like 24*7 hours service at anywhere.

Hypothesis Testing:-[ii]

 Hypothesis:-
60% of customers peoples wants value added services and
security of money
H0: p=60%
Ha: p! =60%
Hence,
n no of sample =30
P=0.6 and
q=0.4
Observed sample proportion (P^) =17/30=0.56
And the test statistic Z= (p^-p)/ √p*q/n
= (0.56-0.6)/ √ (0.6*0.4/30)
=-0.04/0.0894
=-0.4474
R:|Z|<1.96
Z (cal)<Z(table)
I.e. Accepted H0
I.e. Our hypothesis 60% of people want value added services
and security of money proved right at 5% level of significance

SUMMARY OF FINDINGS
The final draft of the questionnaire was prepared on the basis of the observations from
the pilot study. These were then finally filled by 100 customers, for the conclusive study.
Finally the data collected was fed into the data analysis to be analyzed using statistical
techniques. Types of Primary Data collected:
Socioeconomic Characteristics:
Characteristics are sometimes called ―states of being‖ in that they represent the type of
people. The factors on which we are working are occupation. Monthly transaction is also
an important parameter but it is difficult to verify. Although the amount of money that

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business unit earns in a month is an absolute, not a relative quantity but it is a sensitive
topic in our society and it is difficult to determine.
Attitudes/Opinions:
Through the questionnaire I have tried to get hold of business preference, inclination and
requirement. Attitude is an important notion in the marketing literature, since it is
generally thought that the attitudes are related to the behavior of Customer.
Motivation:
Through the questionnaire we have tried to find the hidden need or want of businessmen
and have tried to find if these people can be tapped as the potential customer for HDFC
Bank.
Behavior:
Behavior concerns what subjects have done or are doing. Through the questionnaire we
have tried to find out the behavior of the individuals regarding the product and their
responses. If the responses are favorable then the person can be said to be our potential
customer. The primary data serves as an important tool to measure the behavioral trend
of the customer. It helps in answering some of the vital Questions.

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 LIMITATIONS

It was not possible to understand thoroughly about the different marketing

strategies of the bank and customers perception towards bank.
All the work was limited in some limited areas of Bangalore so the findings should
not be generalized. 
The area of research was Bangalore and it was too vast an area to cover within
52 days. All the findings and conclusions obtained are based on the survey done
in the working area within the time limit.
I tried to select the sample representative of the whole group during my job
training. I have collected data from people linked with different profession at
Bangalore.

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 CONCLUSION

Almost all the Banks offer similar features and facilities with their Savings accounts.
There are certain reasons for existing customers of Saving Account of any Bank to shift
to another Bank. The level of service in terms of delivering whatever is promised, fast
response in case of problems, is the most important benefit that the customers seek,
from the Bank they have a Saving Account with.
1. Network reach and visibility of a Bank is a very important criterion for the customer
while opening a Saving Account. We can also conclude from our analysis that network
reach in terms of Branches and ATMs is directly proportional to the market share in case
of Private Players.
2. In case of a new customer, if a bank approaches it first for opening a Saving Account
with them, then there is a good chance for the bank of getting many future businesses
and cross sales from the deal.
3. Aggressive Marketing is the key to increasing the market share in this area, since the
market has a lot of potential both in terms of untapped market .

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 RECOMMONDATIONS
In the light of these conclusions, it is recommended that:
1. Contract Sales Executive (CSE) should be trained to explain the product features and
its value added services to make customer‘s product selection convenient.
2. Contract Sales Executive (CSE) should recommend right product to the right customer
so as to ensure a high degree of satisfaction among the customer.
3. The bank needs to make people aware about their products and the basic benefits
they can derive out of it. And also the differential features of its savings account as
compared to other banks.70% of the people did not even know about the concept,
benefits and features of its saving accounts.
4. The bank should also target small business unit for whom maintenance of the AQB is
not a problem as this segment is not much penetrated.
5. Though the bank offers free doorstep banking once a day this fact is also not known to
many customers or they still do not trust this service whatever the reason the bank can
popularize this service to gain an edge over nationalized banks and Co-operative Banks.
6. Quality of service has been rated highly important by all demofigureic factors as a
reason for banking with a particular bank, HDFC needs to improve the services provided
to its existing customers before attracting more in the future and use word of mouth as a
promotional tool to increase the sales potential of its savings account.

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BIBILIOGRAPHY

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REFRENCES

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