MEDI-CAPS UNIVERSITY

INDORE

INTERNSHIP REPORT

ON

“RETAIL BANKING, PRODUCT AND OPERATIONS”

Submitted as Partial Fulfilment for

Degree of Masters /Bachelor of Business Administration to
MediCaps University, Indore

20201-22
GUIDED BY:- SUBMITTED BY:-
Mr. Vinod Sharma Name of Student- Praveen Likhitkar
Branch Manager Enrollment No- MS20MS501205
HDFC Bank Indore Class- MBA 2nd Year (Section- D)

SUBMITTED TO:-
Dr. SUNIL MISHRA Sir
 PREFACE

This saying is very well applicable in everyone’s life. therefore as a student of

management it must apply to me also till date throughout the MBA course at
college I have studied many principles of management and the application of
these principles in the successful organizations by successful MANAGERS but
what I really wanted from my course was to experience this theory practically.
Then the question arises that from where can I get this experience. Obviously I
must undergo practical training at HDFC Bank and as an outcome have prepared
this project report on “RETAIL BANKING, PRODUCT AND
OPERATIONS”. The experience of this training was very useful in
understanding the real working of a successful organization.
 DECLARATION

I am Praveen Likhitkar and I am student of Master in Business Administration 3 rd

semester declare that this summer internship report at Basic Banking at HDFC
bank has been personally done by me under the guidance of Prof Dr. Sunil
Mishra in partial fulfilment of MBA program during academic year 2020 – 2022.

I further declare that the work reported in this project has not been previously
submitted to any other university.

Date -

Place -
 ACKNOWLEDGEMENT

Learning and acquiring knowledge has no leap and bounds. It is one resource that
never gets exhausted, the more you preach the better it get and the more it lives
down through the ages.

Through these lines I would like to show my sincere gratitude to all the
individuals and the organisations under whose guidance and support this project
is possible

I would like to devote my sincere thanks and gratitude to the Mr.Vinod Sharma
(Branch head of HDFC at Palsikar branch Indore) for giving need and
opportunity to undergo summer financial institution of India. Training in one of
the leadings of bank.
CERTIFICATION
Contents –

 Introduction of banking
 Banking structure in India
 Evaluation of banking in India
 HDFC bank
1. History
2. Background
3. Vision Mission and values
4. Strategy
5. Marketing mix (4P’s)
 The brand promise
 Products of the bank
 Technology used in HDFC bank
 Analysis of SWOT
 Business profile of organisation
1. Wholesale banking
2. Retail banking
3. Treasury
 Conclusion
 Recommendation
Introduction of banking

When you think of a bank, what image comes to mind? A bank is a financial
intermediary for the safeguarding, transferring, exchanging, or lending of money.
Banks distribute “money” - the medium of exchange. A bank is a business and
banks sell their services to earn money, and they need to market and manage
those services in a competitive field.

Banking is defined as the business activity of accepting and safeguarding money

owned by other individuals and entities, and then lending out this money in order
to conduct economic activities such as making profit or simply covering
operating expenses. 

A bank is a financial institution licensed to receive deposits and make loans. A

bank may also provide various financial services like-
  Safeguard your cash
 Manage your finances – record keeping and budgeting
 Receive your pay check quickly using direct deposit
 Facilitate financial transactions
 Insure your liquid as card services
 Earn interest
 Borrow loans
 Invest your money
 Establish a credit history to generate a FICO credit score instrumental in
borrowing funds and building wealth

Banks distribute the medium of exchange. Banking is a business. Banks sell their
services to earn money, and they must market and manage those services in a
competitive field. Banks are financial intermediaries that safeguard, transfer,
exchange, and lend money and like other businesses that must earn a profit to
survive. Understanding this fundamental idea helps you to understand how
banking systems work and helps you understand many modern trends in banking
and finance.

Banking structure in India

In India, banks are playing a crucial role in socio-economic progress of the

country after independence. The banking sector is dominant in India as it
accounts for more than half the assets of the financial sector. Indian banks have
been going through a fascinating phase through rapid changes brought about by
financial sector reforms, which are being implemented in a phased manner. The
current process of transformation should be viewed as an opportunity to convert
Indian banking into a sound, strong and vibrant system capable of playing its role
efficiently and effectively on their own without imposing any burden on
government. After the liberalization of the Indian economy, the Government has
announced a number of reform measures on the basis of the recommendation of
the Narasimhan Committee to make the banking sector economically viable and
competitively strong.

The current global crisis that hit every country raised various issue regarding
efficiency and solvency of banking system in front of policy makers. Now, crisis
has been almost over, Government of India (GOI) and Reserve Bank of India
(RBI) are trying to draw some lessons. RBI is making necessary changes in his
policy to ensure price stability in the economy. The main objective of these
changes is to increase the efficiency of banking system as a whole as well as of
individual institutions. So, it is necessary to measure the efficiency of Indian
Banks so that corrective steps can be taken to improve the health of banking
system.

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EVALUATION OF INDIAN BANKING

The advancement in the Indian banking system can be classified into three
different phases.

I. The pre-independence phase, i.e., before 1947

II. After independence phase, i.e. from 1947 to 1991
III. The LPG (1991) era and beyond, i.e. 1991 and beyond

1. The Pre-Independence Phase

This phase is categorized by the presence of a considerable number of banks in

India. Nearly 600 banks were present in India.The banking system started with
the foundation of Bank of Hindustan in the then capital, Calcutta (present-day
Kolkata) in 1770. The bank ceased its operations in 1832.Post Bank of
Hindustan, many other banks evolved such as the General Bank of India (1786-
1791) and Oudh Commercial Bank (1881-1958), but they did not continue their
operations for long.Oudh Commercial Bank was the first commercial bank of
India.Some banks of the 19th century continue to operate even now establishing
themselves as an institution of excellence. For example, Allahabad Bank was
established in 1865, and Punjab National Bank was established in 1894.

2. After Independence Phase – 1947 to 1991 4

One of the main features of the period was the nationalization of the bank.
Why was Nationalization Needed?

 Built in 1982 for export and import. The banks primarily catered large
businesses.
 Critical sectors such as agriculture, small-scale industries and exports were
lagging
 The moneylenders exploited masses

Thus, in the year 1949, the Reserve Bank of India was nationalized. In two
decades, fourteen commercial banks were nationalized in July 1969 during the
reign of Smt. Indira Gandhi. In 1975, based on the recommendation of the
Narasimham committee, Regional Rural Banks (RRBs) were constituted with an
objective of serving the unserved. The primary goal was to reach masses and
promote financial inclusion.Some other specialized banks were also set up to
promote the activities that were required for the economy.

For example, NABARD was established in 1982 to support agriculture-related

work. Similarly, EXIM bank wasNational Housing Bank was set up in 1988 for
the Housing sector, and SIDBI was established in 1990 for small-scale industries.

Was Nationalization Successful?

Nationalization was a significant step in the banking sector, and it helped

improve people’s confidence in the system.Small and critical industries started
getting access to capital that helped boost economic growth.Additionally, the
move added to the country’s growth across the global banking sector.
5

3. Third phase – The LPG (1991) Era and Beyond

1991 saw a remarkable change in the Indian economy.The government opened
up the economy and invited foreign and private investors to invest in India. This
move marked the entry of private players in the banking sector.The RBI provided
banking license to ten private entities of which some of the notable ones survived
such as ICICI, HDFC, Axis Bank, IndusInd Bank, and DCB.In 1998, the
Narsimham committee again recommended the entry of more private players.
Thus, the RBI provided a license to Kotak Mahindra Bank in 2001 and Yes Bank
in 2004.

Nearly after a decade, the third round of licensing took place. The RBI in 2013-
14, allowed a license for IDFC bank and Bandhan Bank.

The story didn’t end here, with an aim to make sure that every Indian gets access
to finance, the RBI introduced two new set of banks – Payment bank and small
banks, and this marked the fourth phase in the banking industry.

1. Payments Bank

 These banks are allowed to accept a nominal deposit (Rs. 1 lakh per
currently).
 These banks are not allowed to provide credit (both loans and credit cards),
but can operate both current account and savings accounts.
 Other services include ATM/debit cards, net-banking, and mobile banking.
Bharti Airtel started first payments’ bank in India.
6

Following the six most active payments bank currently –

  Aditya Birla Payments Bank
 Airtel Payments Bank
 India Post Payments Bank
 Fino Payments Bank
 Jio Payments Bank
 Paytm Payments Bank

2. Small Finance Bank

These banks are niche banks, with basic banking service, which
include acceptance of deposits and lending.The primary objective is to serve the
unserved, such as small business units, small and marginal farmers, micro and
small industries, and unorganized sectors.

Following are the small finance bank currently operational in India –

 Ujjivan Small Finance Bank

 Jana Small Finance Bank
 Equitas Small Finance Bank
 AU Small Finance Bank
 Capital Small Finance Bank
 Fincare Small Finance Bank
 ESAF Small Finance Bank
 North East Small Finance Bank
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 Suryoday Small Finance Bank
 Utkarsh Small Finance Bank
We believe rapid digitization in banks coupled with the new model of banking
will continue to remain the key theme for the fourth and ongoing phase of the
banking industry.

HDFC Bank

HDFC Bank Limited is an Indian banking and financial services company,

headquartered in Mumbai, Maharashtra. HDFC Bank is India's largest private
sector bank by assets[12] and by market capitalisation as of April 2021. It is the
third largest company by market capitalisation on the Indian stock exchanges.
HDFC Bank Limited provides various banking and financial services to
individuals and businesses in India, Bahrain, Hong Kong, and Dubai. It operates
in Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and
Unallocated segments. The company accepts savings, salary, current, rural,
public provident fund, pension, and demat accounts; fixed and recurring deposits;
and safe deposit lockers; as well as offshore accounts and deposits, overdrafts
against fixed deposits, and sweep-in facilities. It also provides personal, home,
car, two wheeler, business, educational, gold, consumer, and rural loans; loans
against properties, securities, rental receivables, and assets; loans for
professionals; government sponsored programs; and loans on credit card, as well
as working capital and commercial/construction equipment finance,
8
healthcare/medical equipment and commercial vehicle finance, dealer finance,
and term and professional loans. In addition, the company offers credit, debit,
prepaid, and forex cards; payment and collection, export, import, remittance,
bank guarantee, letter of credit, trade, hedging, and merchant and cash
management services; and insurance and investment products. Further, it
provides short term finance, bill discounting, structured finance, export credit,
loan syndication, and documents collection services; online and wholesale,
mobile, and phone banking services; unified payment interface, immediate
payment, national electronic funds transfer, and real time gross settlement
services; and channel financing, vendor financing, reimbursement account,
money market, derivatives, employee trusts, cash surplus corporates, tax
payment, and bankers to rights/public issue services, as well as financial
solutions for supply chain partners and agriculturalcustomers. 

History

HDFC Bank was incorporated in 1994 as a subsidiary of the Housing

Development FinanceCorporation, with its registered office in
Mumbai, Maharashtra, India. Its first corporate office and a full-service branch at
Sandoz House, Worli were inaugurated by the then Union
FinanceMinister, Manmohan Singh.
The Housing Development Finance Corporation (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.
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 Background

As part of liberalization and globalisation of the financial sector in India,

the policy approach to Banking Sector underwent tremendous changes in the
nineties. One significant development in this context has been the grant of
permission to establish and operate banks in private sector with huge capital base
and technology based services. The Central Bank of the country was extremely
cautious about the promoters who were allowed to open these banks. In this
backdrop, HDFC (Housing Development Finance Corporation), India's premier
housing finance company received approval for setting up a bank in 1994 and the
bank commenced operations as a Scheduled Commercial Bank in January 1995.
The authorized capital of the bank is Rs.450 crore and the paid up capital is
Rs.311.9 crore. The HDFC group hold 22.1% of the bank's equity while 19.4% is
held by the ADRs depository and 31.3% by Foreign Institutional Investors. The
remaining are held by public. The stock is listed in Mumbai Stock Exchange,
National Stock Exchange and New York Stock Exchange. During the year 2000,
Times Bank Limited, another new private sector bank merged with HDFC bank
enabling its geographical expansion and higher business volumes.

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
10 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.

Vision Statement

"To be the premier financial partner in ensuring sustainable housing and

living standards"

Mission

Committed to provide financial solutions for sustainable living and assist

entrepreneurs in value addition.

11
 Strategy

HDFC Bank Marketing Strategy

Marketing Strategy of HDFC Bank analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach, promotion
planning etc. These business strategies, based on HDFC Bank marketing mix,
help the brand succeed.

HDFC Bank marketing strategy helps the brand/company to position itself

competitively in the market and achieve its business goals & objectives.

Let us start the HDFC Bank Marketing Strategy & Mix to understand its product,
pricing, advertising & distribution strategies:

Marketing Mix (4Ps)

1. HDFC Bank Product Strategy:

The product strategy and mix in HDFC Bank marketing strategy can be
explained as follows:

HDFC Bank is one of the leading banks in India. HDFC offers a wide range of
products in its marketing mix strategy, namely in personal and enterprise sector.
The various services offered by HDFC Bank are summarized as follows.
Accounts and deposits which covers savings accounts, salary accounts, current
accounts, deposits, safe deposit lockers, rural accounts 12and pension accounts.
HDFC Bank offers loans to meet the diverse needs and it cover personal loans,
car loans, business loans etc. HDFC offers cards which includes credit cards,
debit cards, prepaid cards, credit card reward programs and loan on credit card.
Demat options for investors which includes demat account, 2 in 1 account, 3 in 1
account and investment assist. Investment options covering Invest Track,
investment products, investment advisory group reports, PPF (public provident
fund) and sukanya samriddhi account are provided to HDFC customers.
Insurances for various options like life, health, motor insurance, travel, home,
two wheeler and student travel - suraksha. Forex includes travel solutions,
remittance products, other forex services for help and purchase.

HDFC Bank also includes online payment options like Pay bills and shop online,
Fund transfer options, bill payments, tax payment, donate online etc. The premier
options include Direct equity, Mutual funds, Fixed income products, Insurance,
Private equity funds, Structured products and Estate planning

2. HDFC Bank Price/Pricing Strategy:

Below is the pricing strategy in HDFC Bank marketing strategy:

HDFC Bank follows a competitive pricing strategy in its marketing mix but
maintains a premium level at the same time.

It is clearly visible that it enjoys maximum market capital in terms of shares in

India. The other domestic competitors are either PSUs or national bank, HDFC
Bank is always priced higher in terms of minimum cap required to open a new
account. RBI controls and regulates the pricing policies, like for any other bank
in India.

13

3. HDFC Bank Place & Distribution Strategy:

Following is the distribution strategy in the HDFC Bank marketing mix:

HDFC banks has got a strong presence all across India. Till 2016, HDFC
outreached 4500+ branches in approx 2600 cities/towns with 12000 ATMs.
HDFC Bank makes sure that its presence is felt in each and every corner of the
nation and every individual should avail its facilities equally. HDFC has its major
offices in cities and towns for smooth operation process. Its website is well
designed and well maintained.It facilitates ease of net banking, online payment
options, etc.

4. HDFC Bank Promotion & Advertising Strategy:

The promotional and advertising strategy in the HDFC Bank marketing strategy
is as follows:

HDFC Bank focuses a lot on the promotional strategy in its marketing mix.
HDFC is involved in large number of CSR activities for sustainable livelihood,
financial literacy, education, training and community initiatives. HDFC has
always made its presence feel in the media through advertisements, hoardings,
posters, ads in newspapers, magazines, promotional events, sponsorships, etc.
HDFC also has shareholdings in corporate bodies, mutual funds, financial
institutions, etc which creates a sense of value and trust amongst the shareholders
and customers towards this particular brand.

Since this is a service marketing brand, here are the other three Ps to make it the
7Ps marketing mix of HDFC Bank.

14

5. People:
HDFC Bank gives strong importance on its people i.e. customers and employees.
Through its multi demographic culture it is clearly visible that HDFC believes in
diversity and inclusion. In India it has spread its offices geographically in every
state, to spread awareness to the maximum number of people. With the help of
this advanced technology, HDFC bank employees will be highly satisfied and
they will always get competitive edge over others.

6. Physical Evidence:

HDFC provides best in house facilities with up to date infrastructure and global
environment in all its offices. The complete setup helps the employees to
experience the best work environment so that they perform as per the
organization’s expectations. HDFC offices, branches, credit cards, website etc
are all the physical evidence of the brand.

7. Process:

HDFC bank has several business processes like all other financial institutions.
Through the various social activities and best practices HDFC maintains a good
relation with its customers and investors, which in turn avoids a bad ‘word of
mouth’. All these helps the organisation to grow in long term and motivates its
employees to continue being loyal to it and give their best throughout their
tenure. The customers are also successfully retained and new ones are attracted.
Hence, this concludes the marketing mix of HDFC bank.

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 The Brand Promise

HDFC Bank Ltd has again emerged as the most valuable brand in India in 2020,
despite its ranking seeing an 11 per cent decline from 2019, a WPP Plc and
Kantar report said. This is the seventh consecutive year when HDFC Bank
remained the top-ranked brand in India.

HDFC Bank has been valued at $20.2 billion by WPP and Kantar list of most
valued brands. It is followed by state-owned insurer LIC, valued at $18.2 billion,
and TCS, which has been valued at $14.5 billion.
Also read: 25% in LIC up for grabs? The next big IPO to watch out for
Retail and telecom brands have outperformed most other categories and seen
their brand value increase in the 2020 BrandZ Top 75 Most Valuable Indian
Brands ranking, the WPP and Kantar report said.

At a time of unprecedented economic challenges followed by COVID-19

pandemic-led lockdowns, the total value of the top 75 brands fell by 6 per cent in
2020, resulting in total brand value of $216 billion.

Despite the overall decline, 26 brands increased in value and five were new
entrants. India's top brands also performed well against other countries where
declines in total brand value were much greater, said the report

16
Products the Bank

1. Deposit Account

1. Saving Accounts:-

HDFC Bank offers as many as 12 different types of savings accounts

including a basic salary account to savings max, women’s special
account, BSBDA, senior citizen special account & more. On this page,
you can check and compare the latest SBI savings account interest rates
applicable in 2021 while knowing how to open HDFC savings account
online, the documents required to open a savings account and more.

1. HDFC Regular Savings Account 2. HDFC Women’s Savings Account

4.HDFC Special Gold and Special

3. HDFC Savings Max Account
Platinum

5.HDFC DigiSave Youth Account 6. HDFC Senior Citizen’s Account

8. HDFC Basic Savings Bank

7.HDFC Kids Advantage Account
Deposit Account

9.HDFC Basic Savings Bank Deposit Account 10. HDFC Government Scheme

(BSBDA) Small Account Beneficiary Account

11. HDFC Institutional Savings Account 12. HDFC Savings

17
Farmers Account

Types of HDFC Savings Accounts:-

2. Current Accounts:-Below mentioned table shows the list of online current
account variants provided by HDFC Bank. It is to be noted that HDFC Current
Account minimum balance requirement varies from one account to another.
Hence this factor is to be kept in mind while choosing the type of HDFC Bank
current account.

Types of HDFC current Accounts:-

 Free NEFT / RTGS / IMPS

Max Advantage
 Unlimited DD at bank location
Current Account

 Multiplier advantages across all transactions

Ascent Current
 50 DD and POs free (per month)
Account

 30 DD and POs free (per month)

Active Current
 Cash & Cheque pickups and cash deliveries
Account

 50 DD and 50 POs a month free from any HDFC branch

Plus Current
 Free local / intercity cheque collection & payment
Account

 Free DD above Rs.1 lakh

Premium Current  Secure pick-up and delivery of cash and cheques with Doorstep
Account Banking

 Free local or intercity cheque collection and payment

Regular Current
 Quick alert on transactions via InstaAlert Service
Account

 Avail allied services for start-ups at special

18 rates
Smartups for
 Get a choice of 2 accounts as per the requirement
Start-ups

Saksham Current  Zero non-maintenance charges for 2 calendar half years

  Avail Doorstep Banking facility
Account

 Nodal Account to manage aggregator business

E-Commerce
 PPI Escrow Account for online wallet
Current Account

 30 DD and 30 POs a month free from any HDFC Bank branch

Current Account
 Free local or intercity cheque collection and payment
for Professionals

 Free local or intercity cheque collection and payment

Agri Current
 Free DD above Rs.50,000
Account

Government /

Institutional
 No HDFC Bank current account minimum balance requirement
Current Account
 Unlimited and free DD and PO
(HDFC Zero

Balance Current

Account)

 Open account in 3 currencies – USD, EUR, GBP

RFC– Domestic
 Get professional rates on conversion to local currency
Account

Exchange Earners  Can be opened in USD / Euro / GBP currencies

Foreign Currency  Retain foreign exchange in the currency
Account

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 3. Loans:-

1. HDFC Home Loan Interest Rates:-

HDFC home loan interest rate starts from 6.70% p.a. Some of the factors that
may influence the applicable rate of interest include your credit score, income,
employer/employment type, loan amount, type of home loan scheme, etc. The
following table shows different types of HDFC home loan along with their
interest rate, loan tenure and loan amount:

2. HDFC Bank Personal Loan:- 

HDFC Bank offers personalloan with minimal documentation and speedy
approvals, making it easy for individuals to access funds to overcome any
financial emergency. You can avail loan amount of up to Rs. 40 lakh for tenures
ranging between 12 to 60 months. HDFC Bank also offers instant personal loans
to pre-approved HDFC Bank customers, claiming to disburse the loan amount in
just 10 seconds to their pre-approved customers and within 4 hours to other
customers.

3. HDFCLoan against Property:-

Avail Loan Against Property at attractive interest rates from HDFC Ltd. to fulfil
your personal or business requirements. Individuals can get the loan against both
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residential and commercial properties. 

4. HDFC Car Loans:-

HDFC offers Car finance plans for both used and new cars at competitive interest
rates. Apply for an HDFC car loan and make use of its doorstep service facility

5. HDFC Bank Educational Loan:-

Education has emerged as the cornerstone of human society and as the demand
for education in order to gain a competitive advantage has increased, so has the
cost of education both within India and overseas. With the view of providing
today’s and future generations with the means of pursuing higher studies so that
they can achieve their dreams, HDFCBank has introduced its range of
educational loans. HDFC Education Loan aims to satisfy the requirements of
every type of young individual who desires to pursue further studies.

6. HDFC Bank Gold Loan:-

HDFC Bank Gold Loan is a secured loan where you can borrow money by
pledging your self-owned gold jewellery, ornaments or coins as collateral with
the bank. The loan is provided after a proper valuation of your gold article. With
HDFC Bank, you can get up to 80% of the market value of your gold at an
interest rate of 9.90% onwards.

7. HDFCBusiness Bank Loan:-

HDFC Bank specialises in offering business loans that start at an interest rate of
16% per annum. The bank also offers a dropline overdraft facility to meet
business requirements, along with options of loan balance transfer with HDFC
bank at an interest rate of 15,75% with the processing fee of only 0.99%.
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4. Investment
1. Fixed Deposit:-

Fixed deposit or FD is an investment product offered by banks and non-banking

financial companies (NBFCs). This allows customers to safely park their savings
and earn interest at a fixed rate thus giving them the much sought-after stability.
FD interest rate is higher than what customers get on depositing their money in a
regular savings account.

Fixed deposits are called term deposits in banking parlance since these deposits
are maintained for a specific period (usually ranging from 7 days to 10 years). 

Furthermore, these are secured under the insurance cover of up to Rs. 5 lakh by
the Deposit Insurance and Credit Guarantee Corporation or the DICGC.  

2. Recurring Deposit:-

A recurring deposit, also known as RD, is a term deposit where customers enjoy
three-fold benefits of flexibility, guaranteed returns and liquidity. Unlike an FD,
investing in an RD gives one the choice to invest monthly and earn interest as per
the rates applicable.

Option to invest in a recurring deposit in India is provided by banks as well as

other financial institutions. Whereas investing with a private limited company
22
may give higher returns, going for a bank shall always be a safer bet.

5. Credit cards:-
1. HDFC MoneyBack Credit Card

Joining and Annual Fee: Rs. 500

Key Features:-

1. Reward Points earned- Get 2 reward points per Rs. 150 spent, and even
more, get 4 reward points per Rs. 150 spent on online shopping
2. Cashback offer- Get your accumulated reward points redeemed for cash
credit into your statement, with the value of 100 points being equal to Rs.
20
3. Fuel Benefits- Availability of a complete fuel surcharge waiver gets you
to save up to Rs. 250 in a billing cycle
4. The benefit of reaching milestones- Get Rs. 500 e-vouchers on spending
Rs. 50,000 in a quarter

2. HDFC Regalia Credit Card:-

Joining and Annual Fee: Rs. 2,500

Key Features:-

1. Joining Benefit– Get complimentary membership of Dineout Passport for

1 year
2. Lounge Access Facility- Get 12 complimentary domestic lounge access
each year through Visa/Mastercard, and also avail complimentary
23
membership of Priority Pass with 6 free visits in each calendar year.
3. Reward Points earned– Get 4 reward points per Rs. 150 spent on every
retail spending except fuel
 4. Benefits on reaching milestones – Get 10,000 reward points upon
reaching spends of Rs. 5 Lakh in a year and get an additional 5,000
reward points upon reaching spends of Rs. 8 Lakhs in a year.
5. Reward Redemption Program– Redeem accumulated reward points
against any of the available and offered premium range of products and
vouchers from the rewards redemption catalogue, against flights and hotel
bookings, or against exclusive reward redemption portal available to be
used by HDFC Regalia users.

3. HDFC Millennia Credit Card

Joining and Annual Fee: Rs. 1,000

Key Features:-

1. Cashback earned– Get cashback on all your spending, mainly as 5%

cashback upon shopping via PayZapp for Amazon, Flipkart, Flight &
Hotel bookings,5% cash back upon all kinds of online spending done
above Rs. 2,000, and get 1% cashback on all offline spends as well as
wallet reloads of more than Rs. 100
2. Lounge Access Facility– Get 8 free domestic lounge accesses for every
year
3. Joining Benefit– Get Rs. 1,000 gift vouchers upon spending Rs. 1 Lakh
every quarter in the HDFC Millennia card’s first year
4. Dining Offers– Get discounts as well as offers through the Good Food
Trail Dining program of HDFC.
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4. HDFC Diners Club Rewards Credit Card:-

Joining and Annual Fee: Rs. 1,000

Key Features:-

1. Joining as well as Renewal Benefits– Get 1,000 bonus reward points upon
making payment of joining and renewal fee each and every year
2. Reward Points earned– Get 3 reward points for spending every Rs. 150 on
retail. Also, get 10X rewards upon shopping with the list of selected
partner brands.
3. Reward Redemption Program– Get products as well as vouchers from the
rewards program catalogue when redeeming reward points. Additionally,
utilize the accumulated points to even book flight tickets and hotel stays.
4. Travel Benefits- Get exclusive benefits with a set of partnered travel
partners. Also, get to convert accumulated reward points into air miles of
selective airlines. 
5. Lower Forex Markup charge– Just need to pay only 2% markup fee on
foreign currency spending. Check for all such things in HDFC credit card
types and charges mentioned in the Fees and Charges schedule available
on HDFC Bank's website's MITC for credit cards.

5. HDFC IndianOil Credit Card

Joining and Annual Fee: Rs. 500

Key Features:-
25
1. Get fuel points at listed IndianOil fuel outlets by earning 5% of your spent
amount
Get to earn 1 Fuel Point for every Rs.150 spent with HDFC IndianOil Credit
Card

1. Get to earn at least 50 litres of free fuel each year.

Technology

HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank's branches
have on-line connectivity which enables the bank to offer speedy funds transfer
facilities to its customers. Multi-branch access is also provided to retail
customers through the branch network and Automated Teller Machines (ATMs).
The bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
Bank. In terms of software, the Corporate Banking business is supported by
Flexcube, while the Retail Banking business by Finware, both from I-flex
Solutions Ltd. The systems are open, scaleable and web-enabled. Customers in
over 120 locations are also serviced though Telephone Banking.

Analysis of SWOT

1. Strengths of HDFC 26

HDFC’s strengths are internal, good characteristics that are under the company’s
control. They are as follows.
 1. HDFC Bank is India’s second-largest private banking sector, with 2,201
branches and 7,110 ATMs.
2. The ATM card issued by the bank is compatible with all domestic and
international Visa/Master cards, Visa Electron/Maestro, and American
Express cards. This is one of the reasons why HDFC cards are the most
popular for shopping and online transactions.
3. When compared to other private banks, it has a high level of customer
satisfaction.
4. The bank has a low employee turnover rate and is regarded as one of the
best places to work in the private banking sector.
5. It has received numerous awards and recognition, including the title of
“Best Bank” from various financial rating institutions such as Dun and
Bradstreet, Financial Express, Euromoney Awards for Excellence, and
Finance Asia Country Awards.
6. In terms of guiding customers to the right financial decisions, HDFC has
good financial advisors.
HDFC maintains a good reputation with its products and services. So, let’s see
where HDFC lacks in the coming section. 

2. Weaknesses of HDFC

Weaknesses are flaws that detract from one’s strengths. These are areas that the
business may need to improve to remain competitive. 27

1. HDFC Bank does not have a strong presence in rural areas, whereas ICICI
Bank is expanding in the rural market.
 2. In rural areas, the bank cannot benefit from a first-mover advantage. Rural
residents are staunch supporters of banking services.
3. Unlike ICICI, HDFC lacks aggressive marketing strategies. The bank
primarily serves high-end clients.
4. Some of the bank’s product categories are underperforming and have
limited market reach.
5. The share price of the bank fluctuates frequently, causing investors to be
uncertain.
With this, the segment of weaknesses ends. So, let’s start to focus on the
opportunities to know about the prospects grasped by HDFC. 

3. Opportunities of HDFC

External aspects in the business environment that are likely to contribute to the
success of the company are known as opportunities. Below mentioned are the
opportunities of HDFC.
1. Because HDFC Bank has better asset quality parameters than government
banks, profit growth is expected to increase.
2. Companies, both large and small and medium-sized, are expanding at a
rapid pace. HDFC has a good reputation for keeping corporate salary
accounts up to date.
3. When compared to government banks, HDFC Bank’s bad debt portfolio
28
has improved and its bad debt recovery rate is high.
4. Because of its strong financial position, it has very good opportunities in
foreign markets, with greater scope for acquisitions and strategic alliances.
With its unique strategy and strong financial position, the bank maintains a
robust position in the business world.

4. Threats of HDFC

External elements over which the bank has no control are referred to as threats.
The company needs to develop contingency plans for coping with them if they
arise.
1. The non performing assets (NPA) of HDFC increased from 0.18 to 0.20
percent. Even though it is a minor difference, it is not a good sign for the
bank’s financial health.
2. The number of non-banking financial companies and new-age banks in
India is growing.
3. The HDFC is unable to increase its market share because ICICI poses a
significant threat.
4. Government banks are attempting to modernize to compete with private
banks.
5. The Reserve Bank of India has granted foreign banks permission to invest
up to 74 percent of their assets in the Indian market.

These are the threats faced by the company. Now we have fully covered the
SWOT analysis of HDFC bank. So, let’s end this case study shortly. 

29

Business profile of organisatrion

 The bank offers a wide range of commercial and transactional banking
services and treasury products to wholesale and retail customers. The bank has
three key business segments.

(a) Wholesale Banking Services: The Bank's target market ranges from
large, blue-chip manufacturing companies in the Indian Corporate to small and
medium-sized corporates and agri-businesses. 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 and is considered a leading service
provider in this area of banking.

(b) Retail Banking Services: The bank provides its target market for retail
services a full range of financial products and banking services, giving the
customer a one-stop window for all banking requirements. The delivery channels
of the service include ATMs, Phone Banking, Net Banking andMobile Banking.
The HDFC Bank preferred program for high net worth individuals, the HDFC
Bank Plus and Investment Advisory Services Programs have been designed
keeping in mind needs of customer 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. Bank also provides
Depository Participant (DP) services for retail customers, providing customers
30
the facility to hold their investments in electronic form. The bank was the first in
India to launch an International Debit Card in association with VISA and issues
MasterCard Maestro debit card as well. The bank launched its credit card
business in late 2001 and it has a card base of more than 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 card acceptance at
merchant establishments.

(c) Treasury: This segment covers services relating to money market,

debt market and Foreign Exchange as well as derivatives. The Treasury team, in
addition to managing investment and liquidity for the bank offers advices to
corporates on risk management and also provide information and product
structures.

Conclusion

 
The Indian banking sector is flourishing and is expanding. Indian banks
contribute 1.7% of the world. As previously noted, the objective of the HDFC
Bank is to be the Indian World Class Bank. The aim is to create a better customer
franchise for different companies to become the chosen banking provider for
target customer segments and the retail market, and to generate a healthy
profitability growth in line with the bank’s stomach for risk. Over the years
HDFC Bank’s target customer franchises have been effectively gaining a market
share while preserving healthy profitability and asset quality.
Has our work been liked? Would you like to learn more? Check out more on
our website. You could also check out our Free Digital Marketing Masterclass by
31
Karan Shah if you’re interested in digital marketing.
Recommendation

1. The environment of the bank can be made more customers friendly and
theworking of the bank should be more organized and efficient by training
theemployees of the bank.
2. Improving customer care facilities by providing 24 hours banking
facilitiesmore effective.
3. More number of CURRENT ACCOUNTS With different features are
lookedforward from public.
4. Proper and general instruction about the maintenance and working of
current account and its benefits should be made clearer.
5. The banking hours should be more customers friendly it should close littlelater
in the evening.
6. The banking process needs to be more systematic so that the transaction
Time can be reduced.
7. There should be more branches especially in smaller towns and cities.
8. Special schemes should be provided for smaller retail shops as well
newpackage of offers and discounts should be provided for high network
peopleand senior citizen.

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