SUMMER TRAINING PROJECT

REPORT
On
“DIGITALIZATION IMPROVED THE BANKING
SERVICES WITH SPECIAL REFERENCE TO
HDFC
BANK”

Towards partial fulfillment of

Integrated Master of Business Administration
(IMBA)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
Tasneem Subhan
VIIth Semester
Roll No-1130675098

Under Supervision of
Vishnu Pratap Singh Chauhan
Assistant Vice President

Session 2016-2017
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
CERTIFICATE FROM THE ORGANIZATION
BONA-FIDE CERTIFICATE OF DEAN-SCHOOL OF MANAGEMENT
 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its
existence to the constant support and guidance of a number of people. I am grateful to
all of them.

I owe a never-ending debt of gratitude to Dr. Nidhi Agarwal and Mr. Vishnu Pratap
Singh Chauhan for their expert guidance and support.

I would like to thank all the respondents for giving their valuable time and providing
useful information.

I am also grateful to all those who have either directly or indirectly contributed towards
the completion of the project, for their support and encouragement.

Tasneem Subhan
 DECLARATION

I do hereby declare that the Summer Internship Project Report titled “Digital Products
and Initiatives in HDFC Bank Limited” submitted by me towards the partial
fulfilment of the requirement of Integrated Master of Business Administration,
exclusively prepared and conceptualized by me and is not submitted to any other
Institution or University or published anywhere before for the reward of any
Degree/Diploma/Certificate. It is the Original work of mine and has not been obtained
from any other part.

Tasneem

Subhan IMBA

(7th SEM)
 PREFACE

As a part of our course curriculum I had to go through a Summer Internship Project

Report on any topic to get the right exposure to the practical aspects of business
management.

I want to express my gratitude for the experience and practical knowledge that I earned
during the Summer Internship. In this project report I had presented my great experience
in the form of words. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison
to its competitors. I have enjoyed my report preparation and have learnt lots of new
things. I have tried my level best to make this report a reader friendly & also did my
level best to fulfil the objective of the study.
 TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
a. Meaning and Definition
b. Indian Banking Industry
c. Indian Banking System
d. Major Players in India
2. Introduction to Digitalization
a. Meaning and Definition
b. Digital Banking
3. Company Profile
a. History of HDFC Bank
b. Mission, Vision and Objectives
c. Management at HDFC Bank
d. Business Profile
e. Ratings/Awards
f. Products of HDFC Bank
g. Digital Services of HDFC Bank
h. Digital Initiatives
i. Departments at HDFC Bank
g. Swot Analysis of HDFC Bank
Part II
4. Objectives of the study
5. Literature Review
6. Research Methodology
a. Research Design
b. Research Type
c. Sampling Design
d. Sources of Data Collection
e. Data Collection Tools
f. Methods of Data Collection
Part III
7. Data Analysis & Interpretations
8. Findings
9. Conclusion
10. Suggestions
11. Limitations
12. Bibliography
13. Appendix
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of

deposits of money from the public, repayable on demand or otherwise and withdraw by
cheque, draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the
bank performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."

-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.

-By Findlay Sheras

Thus
A Bank:

❖ Accept deposits of money from public.

❖ Pays interest on money deposited with it.
❖ Lends or invests money.
❖ Repays the amount on demand,

1
 ❖ Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
was developed as it provides the safer place to store the money. This safe place
ultimately evolved in to financial institutions that accepts deposits and make loans i.e.,
modern commercial banks.
 INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700’s
and 1800’s, with many banks created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which
extended throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban
co”, meaning bench, because moneylenders worked on benches in market places. The
bank of Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver
in their safes in return for a fee. Receipts given to the Merchant were sometimes used
to
buy or sell, with the metal itself staying under lock and key. The goldsmith realized that
they could lend out some of the gold and silver that they had and charge interest, as not
all of the merchants would ask for the gold and silver back at the same time. Eventually,
instead of charging the merchants, the goldsmiths paid them to deposit their gold and
silver.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks
merged into larger and fewer groups and expanded into other country.

HISTORY OF INDIAN BANKING INDUSTRY

Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of
Bengal, was established. But the industry changed rapidly and drastically, after the
nationalization of banks in 1969.

Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly
expanded their foot prints after nationalisation of banks in India in 1969 and further in
1980. Although there is a restrictive entry/expansion for private and foreign banks in
India, these banks have increased their presence and business over last 5 years.

Peculiar characteristic of Indian banks unlike their western counterparts such as high
share of household savings in deposits (57.4% of total deposits), adequate capitalization,
stricter regulations and lower leverage makes them less prone to financial crisis, as was
seen in the western world in mid FY09.

The Scheduled Commercial Banks (SCBs) in India have shown an impressive growth
from FY04 to the mid of FY09. Total deposits, advances and net profit grew at CAGR
of 19.6%, 27.4% and 20.2% respectively from FY03 to FY08. Banking sector
recorded
credit growth of 33.3% in FY05 which was highest in last 2 and half decades and credit
growth in excess of 30% for three consecutive years from FY04 to FY07, which is best
in the banking industry so far. Increase in economic activity and robust primary and
secondary markets during this period have helped the banks to garner larger increase in
their fee based incomes.

A significant improvement in recovering the NPAs, lowest ever increase in new NPAs
combined with a sharp increase in gross advances for SCBs translated into the best asset
quality ratio for banking sector in last two decades. Gross NPAs to gross advances ratio
for SCBs decreased from the high of 14% in FY2000 to 2.3% in FY08.

With in the group of banks, foreign and private sector banks grew at higher rate than the
industry from FY03 to FY08 primarily because of lower base effect and rapid expansion
undertaken by these banks. In FY09, overall growth in credit and deposits was led by
PSBs. However, growth of private and foreign banks was significantly lower in FY09
due to their high exposure to stressed sectors and problems at parent level for foreign
banks.

Unsecured bank credit has risen over the years and stood at 23.3% of bank credit in
FY08 as compared to just 10.9% in FY2000. Lending to sensitive sector has also grown
at CAGR of 46.1% from FY05 to FY08. In the backdrop of the economic downturn, we
feel that the excellent performance seen in last five years ended FY08 will be difficult to
repeat in coming years.

We expect that with the downturn in the economy, credit and deposit growth will
moderate in coming years. Credit growth will be led by spending on the infrastructure
while retail credit will show a moderate growth. Margin pressures due to lag effect of
rate cuts between interest rate on deposits and advances, lower treasury gains and core
fee income and increasing in provisions for NPAs is likely to put pressure in the bottom
line of the banks.

Going forward, PSBs’ which are close to the required lower level of government stake
and have concentrated presence in particular region are likely to consider its merger with
other PSB as an important option if they want to sustain the growth seen in past.
FUNCTIONS OF BANKS

Primary Functions

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange

Secondary Functions

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

Utility Functions

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveller's cheque letter of credit.
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.
STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking
units contributing to almost 50% of deposits and 60% of advances. The Reserve
Bank of India is the foremost monitoring g body in the Indian Financial sector. It is a
centralized body that monitors discrepancies and shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI)
– the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those
banks in this schedule that satisfy the criteria laid down vide section 42 (60 of the act)
this sub sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks
Industry estimates indicate that out of 274 commercial banks operating in the
country, 223 banks are in the public sector and 51 are in the private sector. These
private sector banks include 24 foreign banks that have begun their operations here.
The
 specialized banking institutions that include cooperatives, rural banks, etc. form a part of
the nationalized banks category.

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
Commercial Banks
State co-op Commercial Banks and
Banks Banks Primary Cr.
Societies

Indian Foreign

Public Sector Banks Private Sector Banks HDFC,

ICICI, etc
State Bank of
India and its Other Nationalized Regional
Subsidiaries Banks Rural Banks

CLASSIFICATION ON THE BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

PUBLIC SECTOR BANKS

Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefore in 1980 the number of nationalized bank 20.
But at present there are 9 banks are nationalized. All these banks are belonging to public
sector category. Welfare is their principle objective.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country

such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in

preparation to the share of the banks held by him.

CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term &

medium term loans to their members. Co-operative banks are in every state in India.

Its branches at district level are known as the central co-operative bank. The central

Co-operative bank in turn has its branches both in the urban & rural areas. Every

state
Co-operative bank is an apex bank which provides credit facilities to the central co

operative bank. It mobilized financial resources from richer section of urban

population by accepting deposit and creating the credit like commercial bank and

borrowing from the money mkt. It also gets funds from RBI.

ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act.
1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These
banks
are not in a position to grant long-term loans to industries because their deposits are only
for a short period. The majority of joint stock banks in India are commercial banks
which finance trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and
put them into productive use. These banks have shown marked development in Germany
& Japan. These banks are established in HAMBURG City of Germany in 1765. In India
a department of post offices functions as a saving banks.

FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills.
As it well known, the exporters of a country prefer to receive the payments for exports
in their own currency. Thus these banks convert home currency into foreign currency
and vice versa. It is on this account that these banks have to keep with themselves stock
of the currency of various countries. Along with that, they have to open branches in
foreign countries to carry on their business

INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Some times, they even underwrite
the debentures & shares of big industrial concerns.

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.
CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of
the country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it.
The central bank is also the higher monetary institution in the country charged with the
duty & responsibility of carrying out the monetary policy formulated by the
government. India's central bank known as the reserve bank of India was set up in 1935.

AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.

OPPORTUNITIES

The Banking sector is considered the most lucrative option in today’s job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed
by careers in Private Banking, Investment Banking and Retail Banking. One could work
in a variety of areas in banking industry including Recurring Deposit account, banking
officer, probationary officer, loan officer, assessor, personal loan officer, home loan
officer, home loan agent, loan manager, mortgage loan underwriter, loan
processing
officer, accountant, product marketing and sales executive, and customer service
executive among others.

In the Financial Services, some of the important jobs include that of a stockbroker who
is essentially a person who buys and sells securities on behalf of individuals and
institutions for some commission. While some brokers like to practice with individual
clients others work for institutions. Brokers who work for institutional investors are
often called securities traders. Many prefer to work as dealers, advisors and securities
analysts. Security analysts are those who advise companies on floatation’s of shares as
they are expected to have sound knowledge of capital markets.

Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability
projections, compare financial results, survey the industry as a whole and on the basis of
the available information, and finally conclude to a decision. Equity Analysts do jobs
similar to investment analysts and research the equity markets and make predictions.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD
 INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.

Integration of digital technologies into everyday life by the digitization of everything

that can be digitized.

“Digital” is the new buzz word in the banking sector, with banks all around
the globe hopping onto the digital bandwagon. Just like how the
introduction of mobile technology massively disrupted innovation in the
banking sector, digital is now doing the same. Banks of all sizes are making
sizeable investments in digital initiatives in order to maintain a competitive
edge. So, what does “digital” actually mean?

It definitely provides a glimpse into the future of banking. What digital essentially does
is that it uses technology to design experiences, both seen and unseen. “Digital is all
about making what can be seen unseen – making services so smooth and seamless that it
becomes invisible to the customer”. “Despite all the automation and improvements
that
digital banking has the potential to achieve, customers and their needs still form the very
core of the banking sector.”

It is the simplicity of design, the removal of friction and the ability to improve the
customer experience.

DIGITAL BANKING

MEANING AND DEFINITION

“Digital Banking – a new concept in the area of electronic banking, which aims to enrich
standard online and mobile banking services by integrating digital technologies, for
example strategic analytics tools, social media interactions, innovative payment
solutions, mobile technology and a focus on user experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across

all channels and points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services,
organization, culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

Digital Banking is the application of technology to ensure seamless end-to-end

processing of banking transactions/operations; initiated by the client, ensuring maximum
utility; to the client in terms of availability, usefulness and cost; to the bank in terms of
reduced operating costs, zero errors and enhanced services.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,
ii. fewer (or ideally no) errors,
iii. smaller branch footprint (the typical branch can become a kiosk affair,
providing technology interfaces for the client to use plus the ability to deal
with banking specialists via a video link) – a minimum number of actual staff
will be
required.
iv. concentrating banking/business specialists in a single centre, who are then
available to clients via a technology link (either on their mobile, pc or via a
kiosk branch).

Operating cost savings of between 20% to 40% could be achieved this way, according to
industry experts. Cutting costs has the opposite effect on profits – they go up.

2. Dumping legacy systems;

i. Make no mistake - one of the biggest drawbacks to going ‘Digital’ is this
irrational clinging to legacy systems (developed in the 1960s and 1970s) that
hold progress back. Banks plead the huge cost of making the change. They are
wrong. The ultimate costs of not making the change are far greater.
Benefits to the customer:

1. Improved services and product offerings;

i. 24/7 bank services and availability through your mobile, pc or kiosk branch,
ii. ‘smart banking’ applications that allow ALL transactions to be completed
from the device of your choice, from beginning to end (with clear
instructions and
fail safe mechanisms),
iii. access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),
iv. new useful client services such as warnings, notifications, budgeting,
expenditure analyses, savings programs, calculators (you name it – the range
is endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the client’s needs (not the banks)
vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products
3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Digital banking is set to overtake branch networks as the preferred access channel for
how customers will interact with their bank by 2015.
 Online and mobile are preferred channels, particularly for Generation Y
customers

Immersed in digital

Digital communication is pervasive; from mobile phones to tablet computers, we are

immersed in digital. Recent development of new digital features has led to:

 Improvements in user-experience design through interactive, game-like

interfaces that are starting to merge the boundaries between the real and the virtual and
bringing data to life through rich visualisations.
 Advances in mobile devices and networks, providing new services such as
enhanced digital security and the ability to access the Internet from anywhere (partially
limited by high international roaming charges).
 The rise of social media and collaboration tools, empowering customers and
employees, and moving control of the ‘brand message’ from businesses to consumers.
 Innovation in digital analytics and predictive models, driving deeper insight into
customers’ behaviour and enabling highly targeted and relevant treatment strategies to be
executed through digital media.
 New channel integration technologies, enabling a more seamless end-to-end
experience for customers with their bank.

Generation Y is fully embracing digital communication and is the customer group with
whom banks need to establish customer primacy relationships. The advantage of being
the primary bank is increased share of wallet and higher revenue over time, based on a
strong sense of customer loyalty – and good customer service.

PwC research shows that Generation Y are more than 20% more likely to use, or
consider using online or mobile banking services, than Baby Boomers and nearby twice
as likely as ‘matures’. According to this research, their primary bank is consistently
more likely to be the bank of choice for customers when they are planning to buy
another banking product.

Consumer expectations are changing with digital interaction

Present day consumers expect high quality digital communication. Rich content
including elegant designs, instant search results and interactive features. Bank websites,
especially online banking sections, are now required to offer a pleasant experience while
remaining highly functional.

It is still common for banks to send out account statements using the postal service;
however, for many people digital banking offers 24/7 account balance control – there is
a clear preference, especially for younger customers, to want instantaneous access to
their accounts. The posted account statement is snail mail in comparison. The utility of
snail mail, by contrast, is rapidly dying.

Consumers have access to more information than ever before, they now communicate
with more people and more frequently – traditional word-of-mouth has a completely
different meaning when one considers the immediacy of Facebook, Twitter or even
email. Access to information and the ease with which consumers can share views with
those they know – or even ‘the world’ – is dramatic. Good experiences can be easily
shared online... as can negative ones.
It is important that banks understand the importance of customer thinking in deciding
where to trust their money and in choosing their primary banking relationship. This has
long-term influence personally, but also as an element of influence on their friends and
those they communicate with online.

Banks should consider four main aspects of a robust digital offering:

1. Customer attitudes and behaviour are changing

2. Digital is preferred globally.

3. Digital is a part of Generation Y’s lifestyle and this is the key time for them to decide
on their primary banking relationship.

4. Digital is evolving – technology devices and software all serve to disrupt traditional
means of communication. Simultaneously, each brings opportunity.

Security is the foundation of digital banking

Security extends from the bank’s hardware to the user’s device – whether a PC/Mac at
home, an iPad or the newest Smartphone. In all cases, digital banking must employ
robust security technologies which protect the communication, user information and the
bank’s IT infrastructure.

Indeed, it is clear that for digital banking to be a rewarding experience for the customer
and a profitable growth area for the banks, technology partners, payment processing
service providers and mobile phone operators – there ought to be a comprehensive
agreement on shared technology standards and processes. The European Commission
has just issued a Green Paper, ‘Towards an integrated European market for card, internet
and mobile payments’ which addresses many of the issues while being much broader
than online banking itself. Luxembourg’s LuxTrust is a strong step here in moving
digital banking forward in terms of a security standard.

Digital in Private Banking

Private Banks have been slow to introduce digital technology applications for their
customers arguing that the private banking industry is a personal and pre-dominantly
face to face business with little need for such applications to enhance the relationship.
Security and privacy issues are two of the reasons cited for not embracing these new
developments.

However, there are a number of arguments for private banks to seriously evaluate their
digital strategy and make it one of the cornerstones of their service offering and brand
building activities. As the next generation of private banking clients start to dominate,
private banks will need to avoid the image of an old out-of-date bank that has lost touch
with its clients.

Private banking is about being a trusted advisor as well as being connected and
recommended. Since the digital revolution, which started in the 1990’s, people are
increasingly turning to the Internet not only to inform themselves regarding financial
products but also the reviews of other customers using the products and services.
Customers are already using social media to share their views on financial products and
services.

There is some recognition here in Luxembourg of the increasing place digital

communication is taking, as noted in The PwC Global Private Banking / Wealth
Management Survey 2011 which found that 38 percent of private bankers expected to
interact more with their clients through social media in the next two years and that 56
percent of private banks expected to use mobile technologies over the same period.
 COMPANY PROFILE

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first
to receive as in principal 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.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become “a world class Indian bank”, benchmarking
themselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and compliance. The
objective is to build sound customer franchises across distinct business so as to be a
preferred provider of banking services for target retail and wholesale customer segments
and to achieve a healthy growth in profitability, consistence with the Bank’s risk
appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC Bank’s
business philosophy is based on five core values: Operational Excellence, Customer
Focus, Product Leadership, People and Sustainability.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.
 Maintain their current high standards for asset quality through disciplined credit
risk management.
 Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

Bank logo

:
: : HDB

Industry ,

Founded August 1994

Headquarters ,,

Area served Worldwide

Key people (MD)

Products
 Revenue ₹74,373.22crore(US$11 billion)
(2016)

₹12,817.33crore(US$1.9 billion)
(2016)

₹687,892 crore(US$100 billion)

(2015)

₹505.64 crore(US$75 million)

Number of 76,286 (March 2015)

employees

Website

Registered Office

HDFC Bank House,

Senapati Bapat Marg, Lower Parel,

Mumbai, Maharashtra – 400013

Management at HDFC
S.No Name Designation
 1 Shyamala Gopinath Chair Person
2 Paresh Sukthankar Deputy Managing Director
3 A N Roy Director
4 Keki Mistry Director
5 Renu Karnad Director
6 Umesh Chandra Sarangi Additional Director
7 Mr. Aditya Puri Managing Director
8 Kaizad Bharucha Executive Director
9 Bobby Parikh Director
10 Partho Datta Director
11 Malay Patel Director

Other Detail:

Business Group HDFC Group

Listings BSE , NSE , NYSE
ISIN No. INE040A01018
Incorporation 31/12/1994
Public Issue Date 31/12/1995

Promoters

HDFC is India’s premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain
the market leader in mortgages. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its
housing
related credit facilities. With its experience in the financial markets, strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.

Capital Structure

As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550 crore. The
paid-up share capital of the Bank as on the said date is Rs501,29,90,634/- ( 2506495317
) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 % of the Bank's equity
and about 18.87 % of the equity is held by the ADS / GDR Depositories (in respect of
the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the
Bank has 4,41,457 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on
the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No
US40415F2002

Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against
Rs.629,322 crores as of June 30, 2015. The Bank’s total income for the quarter ended
June 30, 2016 was Rs.19,322.6 crores, as against Rs.16,503.0 crores for the quarter
ended June 30, 2015. Net revenues (net interest income plus other income) increased by
19.6% to Rs.10,588.1 crores for the quarter ended June 30, 2016 as against Rs.8,850.7
crores in the corresponding quarter of the previous year.

Distribution Network

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s distribution
network was at 4,014 branches in 2,464 cities. All branches are linked on an online real-
time basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking and SMS based banking.
The
Bank’s expansion plans take into account the need to have a presence in all major
industrial and commercial centres, where its corporate customers are located, as well as
the need to build a strong retail customer base for both deposits and loan products.
Being a clearing / settlement bank to various leading stock exchanges, the Bank has
branches in centres where the NSE / BSE have a strong and active member base.

As of June 30, 2016, the Bank also has a network of 4,541 branches and 12,013 ATMs
across India. Moreover, HDFC Bank's ATM network can be accessed by all domestic
and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American
Express Credit/Charge cardholders.

Management

Mrs. Shyamala Gopinath holds a Master’s Degree in Commerce and is a CAIIB. Mrs.
Gopinath has 39 years of experience in financial sector policy formulation in different
capacities at RBI. As Deputy Governor of RBI for seven years and member of the
Board. Mrs. Gopinath had been guiding and influencing the national policies in the
diverse areas of financial sector regulation and supervision, development and regulation
of financial markets, capital account management, management of government
borrowings, forex reserves management and payment and
settlement systems. The Managing Director, Mr. Aditya Puri, has been a
professional banker for over 25 years and before joining HDFC Bank in 1994 was
heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed
of eminent individuals with a wealth of experience in public policy, administration,
industry and commercial banking. Senior executives representing HDFC are also on the
Board.

Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting and
retaining the best talent in the industry, the bank believes that its people are a significant
competitive strength.

Technology
HDFC Bank operates in a highly automated environment in terms of information
technology and communication systems. All the bank’s branches have online
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
core banking 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.

The Bank has prioritised its engagement in technology and the internet as one of its key
goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position,
expertise and technology to create a competitive advantage and build market share.

Business Profile

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

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions,
which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind
needs of customers who seek distinct financial solutions, information and advice on
various investment avenues. The Bank also has a wide array of retail loan products
including Auto Loans, Loans against marketable securities, Personal Loans and Loans
for Two-wheelers. It is also a leading provider of Depository Participant (DP) services
for retail customers, providing customers the facility to hold their investments in
electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By March 2015, the bank
had a total card base (debit and credit cards) of over 25 million. The Bank is also one of
the leading players in the “merchant acquiring” business with over 235,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The
Bank is well positioned as a leader in various net based B2C opportunities including a
wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on
various treasury products are provided through the bank's Treasury team. To comply
with statutory reserve requirements, the bank is required to hold 25% of its deposits in
government securities. The Treasury business is responsible for managing the returns
and market risk on this investment portfolio.

Ratings/Awards

Credit Rating

HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis
& Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which
represents "superior capacity for repayment of short term promissory obligations".
Fitch
Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)"
rating to the bank's deposit programme, with the outlook on the rating as "stable". This
rating indicates "highest credit quality" where "protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4
billion rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the
rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has
assigned the rating "AAA (ind)" with the outlook on the rating as "stable". In each of the
cases referred to above, the ratings awarded were the highest assigned by the rating
agency for those instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced value
creation and corporate governance practices" in future. The bank was assigned a
'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability
with respect to wealth creation for all its stakeholders while adopting sound
corporate governance practices is the highest.

Awards and Achievements

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.

It is extremely gratifying that our efforts towards providing customer convenience have
been appreciated both nationally and internationally.
2016

IDRBT Banking Technology Excellence

Awards 2016

Cisco-CNBC TV 18 Digitizing India

Awards

Dun & Bradstreet Corporate Awards

2016
TheFinancialExpressIndia'sBest

Banks Awards 2015

Outlook Money Awards 2015

Pension Fund Regulatory and

Development Authority awards for Atal
Pension Yojana

Business Today

Barron's World's Top 30 CEOs

 IBA Awards

Business Today

NABARD Award

Business Today - KPMG India's Best

Bank

NABARD Award - The Best Bank in

SHG Credit Linkage in Tamil Nadu

2015

AIMA Managing India Awards 2015

Barron's

Finance Asiapollon Asia'sBest

Companies 2015

J.PMorganQualityRecognition -BestinclassstraightThrough
AwardProcessing Rates
 2014

Euro money - HDFC Bank wins Best Private Banking Services for
Super affluent clients for 5 years in a row at Euro
money Awards

Euro money Best Private Banking Services award for Net-worth- specific services
category for Super affluent clients (US$
Private Banking
1 million to US$ 5 million).
- Best Private Banking Services award
and Wealth
Asset Management
Management
Survey 2015

FE Best Best Bank in the New Private sector

Bank - Winner - Profitability
Awards - Winner - Efficiency

Business Today Best Large Bank - Overall

- KPMG - Best Large Bank - Growth
Study 2014

Business world- Best Large Bank

PwC India Best - Fastest Growing Large Bank
Banks Survey 2014

Asia money -
FX Poll
2014
 Best Domestic Provider - Best Domestic Provider of FX research &
of FX options
market coverage
- Best Domestic Provider of FX
- Best Domestic provider for FX Services
products & Services

The Asian Banker Strongest Bank in India in the Asian Banker 500 (AB
500) Strongest Bank by Balance Sheet Ranking 2014
 Dun & Bradstreet -
PolarisFinancial

Technology Banking
2014
Awards

Forbes Asia

Brands TM Top 50
Most Valuable
IndianBrands study by Millward Brown

Finance Country 2014Asia

andAwards
India's
Companies poll on

Top

Asia money

Dun & Bradstreet -

Manappuram FinanceLimited CorporateAward 2014
 Products of HDFC Bank

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

Savings Account

Everyone needs a savings account to store away the surplus cash. The bank offers
savings accounts under various types starting from basic accounts to premium accounts
with variety of features. The interest rates on the Savings Account are 4% p.a. which is
calculated daily on the end of day balance. The following accounts and their respective
interest rates are mentioned underneath:

 Savings Max Account

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

Salary Accounts

The bank offers multiple types of salary accounts to suit the needs of all types of
corporate. The salary accounts offer various features to the accountholders like free
insurance coverage. The different types of Salary Accounts are:

 Premium Salary Account

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

Current Accounts

Current accounts are required by businessmen and professionals who have regular
transactions through the bank. The account deals mainly in liquid deposits and allows
unlimited number of transactions every day like funds being withdrawn or cheques
being
written against the account without worrying about the balance in the account.
Professionals, traders, SME businessmen, agricultural businesses can avail various
benefits like fund transfers between all HDFC Accounts, free local collections through
cheque and fund transfers as well as easy inter-city banking. Moreover, the bank also
offers a range of Current Accounts to suit individual preferences like:

 ULTIMA Current Account

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

Deposits

Individuals who wish to save money for a longer term with a view to earn a higher rate
of interest seek to invest money in term deposit accounts which guarantee higher
interest
rates. HDFC Bank also offers various types of deposit accounts promising high interest
rates for customers seeking deposit accounts. Here are the deposit accounts available with
the bank:

 Regular Fixed Deposit

 Recurring Deposit
 5 year Tax Saving Fixed Deposit
 Safe Deposit Locker – the bank also provides the facility of Safe Deposit lockers
for you to store your valuable deposits. The lockers are available in various sizes at
various locations.
Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural
accounts available:
 Basic Savings Bank Deposit Accounts – Farmers
 Kisan Club Savings Accounts

Loans

HDFC bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans
are available with the bank:

Personal Loan Business Loan

Home Loan Car Loans

39
 Two-Wheeler Loans Gold Loan

Loan against Assets Educational Loan

Government Sponsored Programs Rural Loans

Credit Cards

The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank are as follows:

Super Premium Cards- There are 3 variants under the Super Premium Variety which
are:

 Infinia
 Regalia
 Diner’s Club Black

Co-Brand Credit Cards- These cards are offered in partnership with Jet Airways and
Times Group which offer special discounts on airline travel through Jet Airways and
offers on dining and movie tickets. The range of co-brand cards includes:

 Jet Privilege HDFC Bank World

40
  Jet Privilege HDFC Bank Platinum
 Platinum Times Card
 Titanium Times Card

Professional Credit Cards- Credit cards issued specifically to professionals like

Doctors and Teachers with best lounge programs and freedom to fill fuels across any
fuel s respectively. The cards come in two variants:
 Doctor’s Superia
 Teacher’s Platinum

Premium Travel Cards- These cards are specially designed to offer travel related
benefits and discounts. The cards offer reward points which can be redeemed against air
tickets or against dining and also lounge access of airports. The range includes:

 Superia
 AllMiles

Cash back cards- The specialty of these cards is that the card promises cash back on
everyday spends in the form of Reward Points which can be redeemed to get cash back
and also zero fuel surcharge. The range of cash back cards include:

 Platinum Edge
 Titanium Edge
 Money Back

Premium Cards- Credit cards which offer premium range of offers and discounts on dining,
entertainment and complimentary access to airport lounges. The premium rage of credit cards
include the following types of cards:
 World MasterCard

41
  Diners Club Premium
 Diners Club Rewardz
 Visa Signature

Solitaire- A premium card especially for women customers with exclusive offers and
rewards for females.

Platinum Plus Card- It is a regular credit card designed for regular usage offering
Reward Points on everyday spends and also fuel surcharge waiver.

Commercial Cards- Arange of credit cards especially designed for business usage
offering fuel surcharge waiver, lounge access to airports, travel and entertainment
benefits and also air tickets discounts. The range of business cards include:

 Business Platinum
 Business Gold Credit Card
 Corporate Platinum
 Corporate World MasterCard
 Corporate VISA Signature
 Corporate Card
 Purchase Card
 Distributor Card

Debit Cards

HDFC Bank offers Debit cards with every Savings Account to customers which are
safer than carrying cash because they require a PIN every time they are used, they
provide
great discounts and cash back on fuel, shopping, dining, entertainment, etc. and are used
across almost all outlets for payment. The range of debit cards issued by the bank are:

 EasyShop Platinum Debit Card

 Jet Privilege HDFC Bank World Debit Card
 Easy Shop Titanium Royale Debit Card
 EasyShop Titanium Debit Card
 EasyShop Debit Card
 EasyShop Business Debit Card
 EasyShop Women’s Advantage Debit Card
 EasyShop NRO Debit Card
 EasyShop Imperia Platinum Chip Debit Card
 EasyShop Gold Debit Card
 RuPay Premium Debit Card

Demat Account

HDFC Bank issues Demat Account for investors like traders, long term investors as well
as beginners for a flexible and customized solution. The demat account offered by the
bank is safe and dependable for buying and storing a customer’s equity investments,
mutual funds, IPOs, ETF Exchange Traded Funds like Gold and Index, bonds and
NCDs. The account can also be opened online and the types of demat accounts offered
are as follows:

 Demat Account
 2 in 1 Account
 3 in 1 account
Investments

HDFC bank deals in various investment avenues to complete the financial portfolio of
the customer like Mutual Funds, Life Insurance products and General Insurance
Products. The investment products are further subdivided into the following categories:

 Mutual Funds
 Equities & Derivatives through HDFC Securities Trading Account
 IPO Application through ASBA (Application Supported by Blocked Amount)
 Investment in Gold through Mudra Pure Gold Bars which come as 24 Karat
pure gold bars of 5g, 8g, 10g, 20g, 50g and 100g with Assay Certification and
tamper proof packing
 Investment in Silver through Mudra Silver Bars which are available in 50g and
100g with Assay Certification and tamper-proof certified packaging.
 8% Savings Bond which are risk-free and can be bought with a minimum
investment of Rs.1000
 Sec 54 EC – Capital Gains Bond with a maximum investment of 50 lakhs and
tax exemption on capital gains
 Inflation Indexed National Savings Securities – Cumulative (IINSS – C) with
a minimum investment of Rs.5000 and a maximum of Rs.5 lakh.

Insurance

HDFC Bank offers both life and non-life products to its customers. The life insurance
products are issued in association with HDFC Life Insurance Company Limited and the
non-life insurance products are issued in association with HDFC Ergo. The following
are the heads of insurance and their respective plans:
Life Insurance

The list of below mentioned plans range from term insurance, endowment insurance and
money-back plans to those of Unit Linked Insurance Plans (ULIPs) for a complete
insurance products basket for customers to choose from. The plans available
are:

 HDFC Life Click2Protect Plus Plan - an online term insurance plan with
varied options corresponding to benefits payable
 HDFC Life Health Assure Plan - a health plan
 HDFC Life Cancer Care – a health plan specifically designed for diagnosis and
treatment of cancer
 HDFC Life Pension Super Plus – a pension plan which guarantees income after
retirement
 HDFC SL ProGrowth Super II – a Unit Linked Plan giving the dual benefit of
insurance and market linked growth for wealth appreciation
 HDFC SL YoungStar Super Premium – a Unit Linked Child Plan taking care
of your child’s future while at the same time giving increased benefits in the form
of market linked returns.
 HDFC Life ProGrowth Plus - a unit linked insurance plan
 HDFC Life Classic Assure Plus – a limited premium life insurance plan
with higher protection option
 HDFC Life Super Savings Plan – a participating Endowment Assurance
plan with built-in Accidental Death Cover for a comprehensive coverage
 HDFC Life Personal Pension Plus – a pension plan with lifelong pension
option and guaranteed benefit at maturity
 HDFC SL ProGrowth Flexi - a unit linked savings plan with an option to
choose Accidental Death Coverage
 HDFC Life Guaranteed Pension Plan – a limited term premium paying
annuity plan with guaranteed lifetime pension payments
  HDFC Life New Immediate Annuity Plan – an immediate annuity plan
wherein the pension payouts start immediately after payment of the Purchase
Price
 HDFC Life Smart Woman Plan – an award winning insurance cum investment
plan designed for women for covering their life as well as maternity expenses,
congenital or malignant female-specific cancers
 HDFC Life Invest Wise Plan – a single premium ULIP plan for wealth
maximization without having to pay regular premiums
 HDFC Life Single Premium Pension Super Plan – a single pay pension plan
with market linked returns and an assured benefit of 101% of premiums paid on
vesting or maturity
 HDFC SL Crest – a simple insurance plan which can be taken by filling up a
Short Medical Questionnaire
 HDFC Life Super Income Plan – a participating guaranteed benefits plan
which pays regular incomes in the payout period of 8-15 years
 HDFC Life Sanchay – a traditional life insurance plan with a limited premium
paying term
 HDFC Life YoungStar Udaan – a child insurance plan which can be either
availed as an Endowment Plan with lump sum benefit at maturity or money back
plan with benefits paid out in instalments during the last 5 policy years
 HDFC SL ProGrowth Maximiser – a single pay unit linked plan with no limit
on the maximum premium investment
 HDFC Life Click2Invest ULIP – a unit linked plan available online
 HDFC Life Sampoorna Samridhi Plus Plan – a limited payment endowment
assurance plan wherein the cover can be extended for up to 100 years
 HDFC Life Sampoorna Nivesh – a traditional insurance plan with single,
regular or limited premium paying options

Health Insurance
Health Insurance falls under the purview of general insurance and four types of health
insurance plans are offered by the bank which are as follows:

 Health Suraksha – a health plan covering hospitalization, pre and post

hospitalization expenses, day care procedures, domiciliary treatment and organ
donor expenses. The coverage can be taken for an individual and also his family
with treatments in a network of 4800+ hospitals.
 Critical Illness Silver Plan – a health plan specifically designed for treatment of
critical illnesses covering 8 critical illnesses in its scope of coverage
 Critical Illness Platinum Plan – a critical illness plan which covers 15 critical
illnesses and provides the benefit upon diagnosis of the covered illness
 Individual Personal Accident Plan II – a personal accident plan which can be
taken for self and family and covers hospital expenses, injuries, disability due to
accident with a coverage range of 2.5 lakhs to 15 lakhs
 Motor Insurance – motor insurance is offered to customers in partnership with
HDFC Ergo and there are two types of motor insurance plans available:
Commercial Vehicle Insurance – it provides comprehensive coverage for
your commercial vehicle across 1600+ network garages in India
Private Car Insurance – insurance coverage for your private car with
cashless claims across 1600+ network garages. Moreover, the plan also offers
discounts based on age and occupation
 Two –Wheeler Insurance – an insurance plan for your two-wheeler with a
provision of cashless claim across 1600+ network garages throughout the country.
 Travel Insurance – an insurance plan for domestic and international travel be it
for business or leisure purposes. The plan covers emergency medical expenses,
emergency medical evacuation, repatriation of remains, emergency dental
expenses, hospital cash, accidental death and permanent total disability while
flying in a common carrier, personal accident, flight delay, loss of baggage and
personal documents, delay of checked-in baggage, personal liability, financial
emergency assistance, contingency travel benefits and hijack distress allowance.
  Home Insurance – an insurance policy issued to protect the home as well as its
contents. The plan covers risk against fire, lightning, explosion, flood, inundation,
storm, riot, strike, earthquake, terrorism, burglary and theft with coverage for 1-5
years.

Digital Services at HDFC Bank

HDFC Bank provides a very good digital service to the customer for their transaction.
Through these services the customer of the bank can also access their transaction.
Digital services include-

1. Fund transfer

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

E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient
and supports fund transfers from any bank branch to any other bank branch anywhere in
India.
RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank
fund transfer in real time which is speedier, faster and has no geographical limits.
Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any
bank form the comfort of one’s home and the payment is safe and charges at a negligible
fee.
IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank
electronic fund transfer service which can be done even on Sundays or Bank holidays or
late at night.

2. Online Banking
With an increasing trend of internet usage, everything has been digitalized and the bank
is not behind in this race. The bank offers the facility of Online banking to its customers
which is safe and reduces unnecessary hassles of visiting the branch to carry out any
transaction. Online banking service offered by HDFC Bank includes:
Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to-
the-second account information, Net Banking manages customer’s account from the
comfort of costumer’s mouse- anytime, anywhere.

Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking numbers in your city to register for Net
banking.

Net Banking offers a host of banking transactions from the comfort of the customer’s
home. One can check the bank account balance, book a Fixed or Recurring Deposit,
recharge the mobile or DTH Connection, paying off utility bills, paying taxes, applying
for IPO, invest in Mutual Funds online to name a few. The process is fast and
completely secured without having to worry about any fraud or theft.

Bank industry leading service provides a host of features at customer finger-tips:

 View Account Balances & statements

 Transfer Funds between accounts
 Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills
 Order a cheque Book
 Request stop payment on cheques
 And lots more

Benefit of Net Banking

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

Credit Card Net Banking: Through this facility the customer can view the credit card
activities online, pay the credit card bills, view Credit Card Statements online, know the
unbilled transactions and get the complete account information
Email statements: A savings or a current accountholders are eligible to get their
account statements on their email id. The Savings accountholders get a monthly
statement and the Current Accountholders get daily, weekly or monthly statements. The
statements are free of cost and display all the relevant transactions of the relevant period.
Loan accounts online: This feature enables the bank to provide post loan services to the
customers. Loan customers of the bank can log in and view their loan summary,
transaction history and loan account details.

3. Phone Banking
The bank extends banking information to your phone where information is available at
the end of a simple phone call.
The customer can also call the bank and effect transactions over the phone. Transactions
like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and
cheque status, ordering cheque books, stopping cheque payments, credit card related
queries can all be solved by a call to the bank’s phone banking division.
Now your bank account is now just a phone call away. Through Phone Banking you can:

 Check your account balance.

 Enquire on the cheque status.
 Have a mini statement faxed across to you.
 Request for a cheque book / Account statement.
 Enquire on your fixed deposits / TDS.
  Open a fixed deposit
 Request for Demand Draft / Managers Cheques.
 Transfer funds amongst your linked accounts
 Pay utility and HDFC Bank Credit Card bills.
 Do stop cheque payments.
 Report loss of your ATM /Debit Card.
 Product information.

4. Mobile Banking
By simply downloading the bank’s app on your smart phone, you can avail of over 75
transactions. The application is secure and fast. Mobile is now your bank! Now access
your bank account and conduct a host of banking transactions and inquiries through your
mobile, with our unique Mobile Banking services.
Mobile Banking is a service that allows you to do banking transactions on your mobile
phone without making a call, using the SMS facility.

Uses of Mobile Banking:

Mobile Banking service provides a host of features at your finger-tips through SMS:

 Get your balance detail

 Obtain your last 3 transactions details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get fixed deposit detail
 Pay your bills

How does it work?

Mobile Banking works through a set of text massages (SMS). With SMS you can
perform a wide range of query-based transaction from your Mobile Phone, without even
making a call.

All you need to do is to type in the specified code for the transaction as a text massage
and send 5676712.

See designated codes for GSM Phone.

See designated codes for Reliance India mobile Phones.

You will receive the response in form of a text message on your mobile phone screen
within a few seconds.

How is this different from making a call on mobile phone or using Phone Banking?

The differences between making a call on mobile phone and sending a text message are
as follows:

You are not required to dial a number; you send a text message i.e. a coded message to
5676712

HDFC Bank does not charge anything for this service and there is no airtime involved.
However, the Cellular Service Provider may levy a nominal charge for the SMS facility.

In Mobile Banking, you actually see your banking transactions on your mobile phone
screen as opposed to hearing a message through the phone.

How do avail of this service?

a) If you are opening an account with the bank, you can apply for MobileBanking
through the account opening document.

b) If you already have an account with the bank, you can apply for MobileBanking
through the combined Direct Banking Channels form. You can download the form and
call for a sales representative. Alternatively you can fill this form and hand it over to
your nearest branch.
c) If you already have an account with the bank and if you are registered for Net
Banking services, then you can register online using the 'Mobile Banking Registration'
option available inside Net Banking.

Does it cost anything?

No, this service is brought to you FREE from HDFC Bank. Also, since you are using the
text messaging service from your mobile phone, you do not incur any airtime charges in
making a phone call from your mobile phone. However, the Cellular Service Provider
may levy a nominal Value Added Services (VAS) charge for the SMS facility.

5. Insta Alerts
Insta Alert is a service through which the bank can proactively inform customers about
transactions / events that occurs in his bank account. This information can be given to
the customers via SMS on their mobile phone, or through an email to their mail id or
both. Alert could either be event based e.g. Salary Credit or Frequency based e.g.
Weekly balance of account. Alerts acts as an important value add in the service that
bank provide to the customers, as it will help in proactively informing the customers
about their bank account related activities. This reduces the load from bank channels like
Phone Banking or branches as customer does not need to call for getting information on
Cr/Dr in accounts. Alerts also increase the Brand Recall of the bank in the minds of
customers.
SMS & Email – your account transactions also generate a SMS or email alert where any
debit transaction, credit transaction and maintenance of account balance is alerted to the
customer if registered.

Types of alerts:

The customer can register for any or all of the following alerts.

 Debit transactions greater than Rs 5000 / 10000 / 200000 / 500000

 Credit in account greater than Rs 5000 / 10000 / 200000 / 500000
  Account balance below Rs 5000 / 10000 / 200000 / 500000
 Weekly account balance
 Salary Credits
 Utility bill payment due Alerts
All in all, company will be giving their employees an account that makes banking a
pleasure for them. While corporate save time and money by directly crediting there
employees’ salary nation-wide at one go.

6. Insta Query
Insta query is a service that allows you to do a banking transaction on your mobile
phone without making a call. You can do your transaction using the SMS facility

What can I do using Insta Query?

 Get your balance details

 Obtain your last 3 transaction details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

How does it work?

Insta Query works through a set of text messages (SMS). With SMS you can perform a
wide range of query-based transactions from your mobile phone, without even making a
call.

All you need to do is to type in the specified code for the transaction as a text message
and send it to 5676712.
You will receive the response in the form of a text message on your mobile phone
screen within a few seconds

7. ATM
Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank
almost anytime. To withdraw cash, make deposits, or transfer funds between accounts,
you generally insert an ATM card and enter your PIN. Some financial institution and
ATM owners charge a fee, particularly to consumers who don’t have accounts with them
or on transactions at remote locations. Generally, ATMs must tell you they charge a fee
and its amount on or at the terminal screen before you complete the transaction. Check
the rules of our institution and ATMs you use to find out when or whether a fee is
charged.

It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by
far the largest investment ever made in electronic self-service by financial institutions.
Over US$ 40 billion has been invested in simply buying these machines and many times
that in running them. There are now over 1.1 million machines operating in over 140
countries worldwide.

The banks are losing the cashier’s checks, check cashing and even cash dispensing to the
c-stores and grocery stores. They are asleep at the switch and watching more
transactions walk away to convenience stores and supermarkets that provide 24 hour
access and integrated transactions.

ATMs do provide a larger set of functions, such as check cashing, ticket sales or money
orders. We already know that cash dispensing as a dedicated function is a sustainable
applications, the question is whether that application can be incorporated successfully
into a more complex consumer product that offers multiple applications.
Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash
options provide the facility of withdrawing prefixed amounts. Ultra Fast Cash opetion
allows you to withdraw Rs.3000/- in one shot.

Balance Enquiry: Know your ledger balance and available balance.

Mini Statement: Get a printout of your last 8 transactions and your current balance.

Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit
both cash and cheques. / Cash deposited in ATMs will be credited to the account on the
same day (provided cash is deposited before the clearing) and cheques are sent for
clearing on the next working day.

Funds Transfer: Transfer funds from one account to another linked account in the same
branch.

PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card.

Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for
payment of bills, making donations to temples / trusts, buying internet packs, airtime
recharges for prepaid mobile phones and much more…

Others: Request for a cheque book from ATMs and our concerned branch will dispatch
it such that it reaches you within 10 working days.
 DIGITAL INITIATIVES

Private sector lender HDFC Bank launched nationwide campaign to position itself as a
premier digital bank.
Integrated, nationwide brand campaign “Har Zaroorat Poori Ho Chutki Mein, Bank
Aapki Mutthi Mein... the campaign will reinforce bank's position as India's premier
digital bank".
Some initiatives are-

PayZapp– A complete payment solution for all your needs.

Chillr – App to enable customers to send money to any person on phone contact list.

Digital Wallet -to transact on any website for HDFC Bank and non-HDFC Bank
customers.

HDFC Bank Watch Banking– A banking experience on a personalized wearable

device taking consumer’s interaction with the bank to a whole new level.

30-Minute Auto Loan, 15-minute Two-Wheeler Loan.

10-second personal loan disbursement.

HDFC Bank’s PayZapp

As smartphones are turning into wallets, several startups and banks have launched
mobile applications to enable peer-to-peer transactions, micro-payments as well as
payment solutions for merchants.
HDFC Bank, one of India's leading private sector bank, has now launched a
comprehensive mobile payment solution that encompasses several mobile commerce
scenarios. The latest initiative in HDFC Bank's digital banking offering christened
#GoDigital, 'PayZapp', allows one-click payments for all your spends.

PayZapp offers easy checkout using a single PIN without the need to enter credit/debit
card details or a code or OTP for the second factor authentication. The wallet in the app
is linked to your credit and debit card and acts as a virtual card - a virtual international
card that you can use for any transactions across the globe.

It doesn't have any transaction limit as well. Also, the app allows users to transfer money
instantly to anybody using a mobile phone or an email ID.

The app also integrates SmartBuy, a virtual mega marketplace from HDFC Bank that
lists all deals and offers by leading e-Commerce portals as well as utility payment
options. While HDFC Bank has managed to partner with leaders like Flipkart,
Makemytrip, Cleartrip, BookMyShow, Expedia, GoIbibo, Yatra and Big Basket at the
launch, the bank intends to get over 10,000 merchants onboard in next 45 days.

But, you are limited in options when you're booking an airline ticket. For instance, since
only partner OTAs would be available, but apart from straightforward discounts and
promotions, you'd also save on the convenience charges.

In a casual conversation, the bank stated that one is likely to save at least 10-15% on
typical monthly purchases via SmartBuy.

At the moment, the app is available only for HDFC Bank customers and for Android
devices only. In the second phase - next three months - the service would open to other
cardholders and also see the launch on iOS and Windows devices too.

Soon, PayZapp would also introduce loyalty points, geo-targeted offers, QR code based
payments and contactless payment mobile instruments.
 Although still in beta, the app is pretty straightforward to use. You need to register using
the mobilephone number already registered with the bank, fill in your details, and create
a Personal Identification Number (PIN). Your mobile number works as your Login ID.

Parag Rao, Business Head, Cards, Payment Products and Merchant Acquiring Services
at HDFC Bank, said that the genesis of PayZapp stems from the 'banks are obsolete'
comments.

Every day an innovative startup is disrupting the space with convenient payment
instruments and bringing financial inclusion, and HDFC Bank does not want to be
considered as a 'dinosaur' despite several digital initiatives and industry firsts.

Unlike a mobile wallet, there's no hassle of pre-payment or recharging. Also, there are
no additional charges levied by the bank for purchases, fund transfers or bill payments
using the app.

HDFC Bank launches Chillr #GoDigital

 Partners with MobME for instant money transfer app

 App to enable customers to send money to any person on phone contact list
 (L-R) Mr Nitin Chugh, Head,
Digital Banking, HDFC Bank Mr. Dhiraj Relli, Branch Banking Head, HDFC Bank
and Mr. Sony Joy, CEO Chillr, unveil the product at the launch

HDFC Bank launched Chillr, a mobile app that allows users to instantly transfer money
to any contact in their phonebook 24 hours a day, seven days a week. HDFC Bank has
partnered with MobME, a Kochi-based technology firm, to launch this app.

Chillr allows users to send money in 3 simple steps:

1. Choose the recipient from your list of Chillr contacts

2. Enter the amount to be transferred & a message to recipient

3. Enter your secret M-PIN & press PAY

The recipient will instantly receive money in his / her bank account.

Chillr is a first-of-its kind application that is linked directly to the customer’s bank
account, so there is no need to worry about filling up a prepaid wallet. No passwords are
stored on the phone and it can be accessed only with an M-PIN known to the customer
alone.

With this app, customers no longer have to ask for account information and wait for a
set amount of time in order to add beneficiaries if they wish to transfer money. They can
send and request money directly on their mobile.
With Chillr, HDFC Bank customers can transfer money to any person in India, once
they download the app and register. The app is widely accessible as it works on Android
and iOS operating systems. It will soon be launched for the Windows phone as well.

The app is particularly useful for college students and young professionals. While dining
at restaurants, customers, particularly youngsters can split the bill using this app.
Parents, whose children are studying away from home in other cities can transfer money
via the app. In the near future it will also allow users to pay utility bills and various
merchants via the mobile.

Chillr is also an important tool for financial inclusion in rural markets, allowing migrant
workers to remit money to family back home in a secure manner. HDFC Bank has also
piloted the use of Chillr for its Sustainable Livelihood Initiative (SLI), a programme that
reaches out to people at the bottom of the pyramid by providing them with livelihood
finance and skills training. The participants running small businesses used the app to
make payments to employees, avoiding the hassle of travelling to the nearest ATM to
withdraw cash.

“Customer convenience is central to our concept of Digital. This Chillr app will
benefit various segments of people in the society. From students to young
professionals, from the migrant workers in cities to customers in rural India, this app
gives the convenience to send and receive money using your mobile phone in secured
manner. This app is one more important step by the Bank to leverage technology and
digital to offer banking services anytime and anywhere”

– Nitin Chugh, Head, Digital Banking, HDFC Bank

Chillr is the latest initiative in HDFC Bank’s digital banking offering christened
GoDigital. This campaign began on the banks of the Varanasi last year, with the launch
of its ‘Bank Aap Ki Muththi Mein’ offering, which literally converts the mobile phone
into a bank branch. Since then the bank has launched a host of innovative digital
initiatives. With Chillr, HDFC Bank is adding to its digital product suite.
 HDFC Bank to introduce Digital Wallet #GoDigital

ccount holder or credit card holder registers for a digital wallet, he can transact on most websites using only his wallet credenti
40% of e-commerce transactions. With the shift from desktops to mobile phone, mobile devices account for half of the purchas
However, the complexity of entering card details onto a phone screen also leads to high
level of failed transactions. A digital wallet meets Reserve Bank of India’s requirement
of two-factor authentication but does away with the hassle of filling card details every
time. Also, the digital wallet – which can be accessed from a mobile app or online – will
be enabled for contactless payment using Near Field Communication (NFC) by flashing
the phone in front of readers that can accept NFC payments. Also, the customers will not
need to store their card details on third-party websites, and as a bank, the details are in
any case entrusted with the bank.

In a standard credit card purchase, the number of steps can go up to 11-12 including
filling in the 16-digit card number, name, expiry date, CVV and other details. Our
digital wallet will enable the transaction to be completed in two steps, which
substantially cuts down the failure rate on mobile phone purchases, which is
as high as 50%.
– Parag Rao, Senior EVP and Head (Card Payment Products), HDFC Bank
 According to industry estimates, by 2020, 30% of all digital payments will be done using
a digital wallet. HDFC Bank’s new offering, in line with the Go Digital initiative,
attempts to offer the “The future of mobile payments”

HDFC Bank Watch Banking

A Step forward in our journey – Go Digital: Bank Aapki Mutthi Mein

In December 2014, HDFC Bank launched its ‘Go Digital – Bank aapki mutthi mein’
campaign on the banks of the Varanasi river with an aim to provide holistic banking
services in all possible digital channels. Today, HDFC Bank provides 175+ banking
transactions through its Net banking platform and 80+ transactions through Mobile
banking (Mobile and Tablet apps).

HDFC Bank thought that it was the opportune moment to introduce a new category in
digital banking, leveraging the emerging wearable platforms, and becoming the first
bank in India to launch Watch banking for Apple Watch.
Why Apple Watch?

HDFC Bank is starting with the Apple Watch and aims to provide banking services
through all wearable devices across platforms like iOS and Android.

We have started with Apple Watch since it is designed from ground up keeping in mind
what the user would want to do with such a device in a jiffy. HDFC Bank’s App has
been made keeping this in mind and the features are chosen accordingly.

Features of HDFC Bank Watch Banking

HDFC Bank will provide a total of 10 banking transactions in the current launch phase.
Some of them being View Account Information, Bill Payments, Recharges, Hot listing
facilities, locate nearest branch/ATM/offer, request statement/chequebook etc.
Moreover, HDFC Bank’s Watch Banking does not require our customers to download a
separate App. Customers can activate Watch Banking from an upgraded version of
HDFC Bank’s Mobile Banking App itself!

Security features and how will it work?

HDFC Bank brings in the same level of high security of its Mobile Banking App to its
Watch Banking experience.
 Any user information or data flow that happens, it if from the mobile phone to
the bank’s secure servers. The watch is merely a projection device.

 For added security, there is a watch banking PIN that the user himself sets during
the one time set-up process. This can be done only after entering his customer id and
password known only to the user.

 Additionally the Apple watch itself has a passcode lock just like other iOS
devices.

HDFC Bank launches ‘Bank Aapki Muththi Mein’ – a bouquet of transactions on mobile
#GoDigital

 Technology agnostic, runs on all popular mobile platforms

 Largest offering of its kind in the country with over 75 banking transactions

55% of all transactions at HDFC Bank are conducted through digital

channels

Allows customers to book FDs, RDs, pay bills, taxes, buy insurance, mutual
funds, even loans
 HDFC Bank today
launched Bank Aap Ki Muththi Mein, an offering that literally turns a mobile phone into
a bank branch. A bank branch the size of your palm that is with you round-the-clock,
wherever you are.

With over 75 transactions – all a touch away – it offers the customer the widest range of
transactions conceivable. These are both financial and non-financial transactions that he
needs in his daily life for which he would have to visit a branch, or an ATM. It is by far
the largest offering of its kind by any bank in India.

Besides essential transactions such as booking fixed- and recurring deposits, bill and tax
payments, buying insurance and mutual funds, the offering will also allow
customers
– for the first time in the country – to buy instantly all kind of loans. It also offers
them
fully customized, location-specific promotions, offers/deals on shopping, dining, movies
and entertainment.

With Bank Aap Ki Muththi Mein, you can do everything other than access your locker,
and deposit or withdraw cash. Customer convenience is central to our concept of
Digital. And, there is no bigger convenience than bringing your bank to the palm of
your hand. We are very excited to unveil our Bank Aap Ki Muththi Mein offering and
with it world class experience of banking to millions of our countrymen.

Mr. Nitin Chugh, Head – Digital Banking, HDFC Bank

Part of the Bank’s digital banking offering christened GoDigital, Bank Aap Ki Muththi
Mein is technology agnostic and runs on all mobile devices popular technology
platforms support. As of September 2014, India had over 900 million mobile users in the
country but only 40 million mobile banking customers.

Bank Aap Ki Muththi Mein works on both a smart phone as well as the basic phone that
supports internet browsing. For phones that do not support internet browsing, there’s
sms banking and missed-call banking. All that a customer needs to do is send a text to or
call a toll free number to know his account balance, get a mini statement, request a
check book or detailed account statement.
Today, 55% of all transactions at HDFC Bank are conducted through digital channels.

DEPARTMENTS AT HDFC BANK

Marketing Department
Kartik Jain, 42, executive vice-president and head marketing at HDFC Bank, has been
pushing result-oriented local and digital marketing since he joined India's second-largest
private bank last year.
HDFC Bank uses technology-led marketing to keep costs low. He launched some 4,000
campaigns and 400 analytical solutions (a 40% y-o-y increase) in the past year to bring
in more customers to the bank and aggressively stepped up its digital presence to
increase business from this channel by over 60%.

Jain, a keen trekker who has run three half marathons (and wishes he had time for more),
is pushing his colleagues to shift away from a centralised marketing function, and think
local by setting up local marketing teams to cater to specific needs of a community or
locality. "I want our marketers to focus on the catchment areas around branches and run
campaigns to suit residents or businesses there," he says.

His result-oriented approach is something his rivals and industry watchers admire. "He's
an objective-driven marketer who has been able to effectively leverage technology and
digital programmes," says Sanjay Jain, chief marketing officer of Reliance Capital.
HDFC's Jain stands out for his focus on return on investment and not spread across
many hard-to-measure campaigns, he says.

Ajay Kelkar, COO of customer relationship solutions firm Hansa Cequity, says Kartik
Jain uses technology and digital media more effectively than most of his peers.
"This
gives the bank an opportunity to get one view of the customer and, in a muted economy,
opens up better opportunities to cross sell products," he says.

As marketers become more concerned with cost, the idea of highly visible above-the-
line advertising rarely appeals to Jain. "We haven't done a big-ticket campaign in 2-3
years," he says. Instead, the ads will be targeted, like its Infineon credit card ads pegged
at big spenders.

While he wouldn't disclose his marketing budget, Jain says HDFC Bank spends less than
one-fifth of it on above-the-line activities, with the rest reserved for below-the-line
campaigns. "Marketing is about customer engagement that leads to measurable business
results," he says.
While it's a challenge to get close enough to customers to garner key insights for new
campaigns, marketers like Jain are increasingly under pressure to reduce spends in a
slowing economy.

Jain is leaning heavily on digital campaigns to proselytise HDFC Bank. Under him, the
bank's website has become the most visited private bank website and the most
responsive bank on Facebook, according to a survey by Social Bakers in May 2012.
"With increasing penetration of internet and mobile, digital marketing has become an
inexorable element of marketing...this is especially true in the case of financial services,
where products and services cannot be distributed efficiently without the use of
technology," Jain says. Parag Rao, who heads HDFC Bank's credit card business, says
while Jain's overview across the bank's businesses has allowed him to synergise
marketing campaigns, his data analytics team is a welcome bonus.

Finance Department
Finance department is broadly concerned with the acquisition of funds by a business firm.
➢ How large should be the firm and how fast should it grow?
➢ What should be the mix of firm’s assets?
➢ What should be the mix of the firm’s financing?
➢ How should the firm analysis, plan, and control its financial affairs.
Finance is the lifeblood of the organization. Finance management as an integral
part of the overall management is not a totally independent area. It draws heavily on
related subjects and fields of study namely economics, accounting, marketing,
production, and quantitative methods. Following are the main features of financial
management.
➢ The focus of financial management was mainly on certain episodic event like
formation, issuance of capital, major expansion, merger, re-organization, and
liquidation in the life cycle of the firm.
➢ Approach was mainly descriptive and institutional. The instrument of financing,
the institution and procedures used in capital market, and the legal aspect of
financial events formed the core of financial management.
➢ The outsider’s point of viewed mainly from the point of investment
bankers, leaders and other outside interests.

According to HDFC BANK Ltd.’s AGM on JUNE 1, 2009: -

 Issued 50 crore Redeemable Subordinated Bonds to increase Capital
Adequacy Ratio, which had come down to 11.09% from 12.19%.
 HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on
date of AGM total outlets increased to 134. Bank has plans to increase this
number to 160 by year-end. Ten new outlets are planned for Maharashtra.
 Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in
March 2001. These advances were made to corporates with "AAA" rating for
short tenure and Bank has recovered these amounts in the current year.
 Money at call and short notice with banks went up from Rs 487 crore in March to
Rs 1,357 crore in March 2001. Bank found this opportunity giving good returns
and funds were parked with overseas accounts.
 All HDFC Bank branches and head office undergo Concurrent Audit.
 HDFC Bank is the largest issuer of debit cards in the country.
  HDFC’s reported a 80% increase in top line in FY 2001 and 75% increase in
bottom line. The reason for less than proportionate growth in Net Profit is due to
investments made for future growth. Bank sees these years as
consolidation
period.
 HDFC Bank serves 5 lakh accounts in Demat Services segment. Total number of
employees for Depository services is 142 and this segment contributed Rs 7 crore
to Net Profit.
 Out of the stipulated norm of 40% advances to priority sector by RBI, HDFC
Bank has made 15% advances to Agriculture sector. These include loans to
farmers and investments in NABARD and Rural Electrification.

Human Resource Department

“Human Resource Management function that helps managers recruit, select, train and
develop members for an organization. Obviously, HRM is concerned with the people’s
dimension in organizations.
Work force of an Organization is one of the most important inputs of components. It is
said that people are our single most important assets. Because of the unique importance
of HUMAN RESOURCE and its complexity due to ever changing psychology,
behaviour and attitudes of men and women at work, in all business concerns, there is
one common element. I.e. Human personnel function, i.e., manpower management
function is becoming increasingly specialized. The personnel function or system can be
broadly defined as the management of people at work- management of managers and
management of workers. Personnel function is particularly interested in personnel
relationship and interaction of employees-human relations.

Mandeep Maitra is the Country Head HR at HDFC

Bank. She has done her B.A. Psychology from lady Shriram Colege, Delhi and MBA
HR from Tata Institute of Social Sutdies. The HR department at HDFC bank has 54
people, including the trainers. The HR department is present in Mumbai, Chennai,
Delhi, Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow.
All people here in HR are MBAs, except for those handling HR operations

Responsibilities of Human Resource Department.

➢ HRD maintain daily attendance record through branch manager via E-mail.
➢ Take decisions for approval regarding leave notes.
➢ He takes the decision related to the recruitment, selection and training of the
candidates. He talks to the consultant related to the recruitment of the qualified
candidates. He also does screening of the candidates, shortlist the candidate and
takes the first round of the interview.
➢ He maintains the database of the candidates to come for an interview. He also
maintains personal file of each employee. He also completes the joining formalities
of each new employee.
➢ They are taking surprising visit in every branch and collect information about
employees.
➢ He is responsible for the monthly salary of the employees as per their attendants and
passing to the Branch Manager.

Human Resource planning

"Human resource planning is the process of forecasting a firm's future demand

for and supply of the right type of people in the fight number".
The planning process:
HRP essentially involve forecasting personnel needs, assessing personnel supply and
matching demand supply actors through personnel related programmes. The planning
process is influenced by overall organizational objectives and the environment of
business.
Importance of HRP
1. Future Personnel Need
2. Coping with Change
3. Creating Highly Talented Personnel
4. protection of Weaker Section
5. To adopt International Strategies
6. Foundation for Personnel Functions
7. Increasing Investment in Human Resource
8. Resistance to Change and Move
Recruitment

Recruitment is a process of searching for prospective candidates for the given job in the
industry. As we know it is very important for an industrial concerns to have efficient and
effective personnel with right quality and at right time and at right place available
whenever they are needed. Every organization needs employee time by time because
of
promotion or retirement of an employee. For this purpose an organization need to search
for the right candidate. And so it needs to encourage this type of right candidates
whenever they require.

Sources of Recruitment

➢ Personal data of candidates and data bank maintain by the

HR. department

➢ Campus Recruitment.
➢ Company’s own website.
➢ Placement consultants.
➢ Advertisement in the news papers like Times of India,
Gujarat Samachar.

➢ Employee reference.

Recruitment Process

Applica Profil Shortli Screeni Intervie

nt pool e st ng w

E-Recruiting
Perhaps no method has ever had as revolutionary an effect on recruitment practices as
the internet. There are respective company websites devoted in some manner to job
posing activities. Currently, employers can electronically screen candidate's soft
attributes, direct potential hires to a special website for online skill assessment. Conduct
background checks over the internet, interview candidates via videoconferencing. And
manage the entire process with web-based software. Companies benefit immensely
through cost savings. Speed enhancement and worldwide candidate reach which the
internet offers. From the job seekers perspective the internet allows for searches over a
broader array of geographic and company posting than was possible before. Problems
notwithstanding, both job givers as well as job seekers find internet as the most effective
source of recruiting and its usage in the days to come will be all pervasive

Selection

➢ Selection is the process of taking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization. It is define as
the process of differentiating between applicants in order to identify and hire those
with a greater likelihood of success in a job.
➢ Selection is based on probation base, they are taking experienced person for 6
month’s probation and for fresher the probation period is 1 year.
➢ While the selection of the senior level post, is taken by head office at Mumbai.

Selection Process :
Telephonic -
interview Selection
Test
Final Interview
Reference &
Background Analysis
Selection Decision
Employment Agreement
Offer Letter
Medical Clarification

RECRUITMENT & SELECTION

HDFC bank's campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI,
SCMHRD, etc and not only IIM'S. They go to 70 business schools, covering far away
places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institute
understand the psychology of the up country customers and are ambitious about working
for private sector banks. They hire B.Com, M.Com, engineers and other graduates, as
well as MBA's. Today the requirement is not just globalization, but localization. To
achieve this they hire people from various towns and cities. They are even hiring
managers from rural background. Thehas a need to locate people in 500 + branches
across 300 cities. I come to know in my observation that bank often don't recruit from
IIMs. When I asked about this , then the senior manager says that the bank is able to
attract IIM graduates after they have worked for 3 to 5 years of work experience and
they have experienced the real world and are likely to be less
disillusioned. They take screening very seriously, though they don't use detectives. They
do speak to current employers and ask question about performance and integrity. After
the completion of recruitment process, HDFC bank starts it selection process according
to its schedule to the selection of deserved candidates.

Training and Development

➢ Training aims at increasing the aptitudes, skills and abilities of workers to perform
specific job. It makes employees more effective and skillful. In present dynamic
world of business training is more important there is an ever present need for
training men. So that new and changed techniques may be adopted. A new and
changed technique may be taken as an advantages and improvement affected in the
old methods.
➢ Training is learning experience that seeks relatively permanent change in an
individual that will improve his/her ability to perform on the job.
➢ They provide “on the job” training to their employees in the branch as they select
these employees for selling various products of bank by direct marketing. Whenever
they select new candidates for any post, they use to give them on the job work.
➢ In case of sales persons to distribute their various products, in the beginning the
person has to work under the observation of his senior then the have to go in market
to have their own experience.
➢ The time for training program for the candidate is depends up on the relevant
position of his work area. They also provide training related to customer care and
communication.

Performance Appraisal

➢ An organization’s goals can be achieve only when people put in their best efforts.
Performance appraisal may be understood as the assessment of an individual’s
performance in a systematic way. It is define as the systematic evaluation of the
individual with respect to his/her performance on the job and his/her potential for
development.
➢ To appraise the performance of the employee they have developed a credit system
on the basis of the given target to the employee. After appraising the performance of
the employee they put the grade of each employee in the following grade criteria.

Employee Remuneration and Incentive Payments

➢ Remuneration is the compensation an employee receives in return for his/her

contribution to the organization. Remuneration occupies an important place in the
life of an employee.
➢ At HDFC, remuneration of an employee comprises – wages and salary, incentives.

Wages and Salary

➢ A part from various incentives and benefits, the personnel are compensated only in
terms of wages and salaries. A proper compensation in terms of this is necessary for
motivation employees for their continuous
➢ Improved performance. For all this, it is required that wages and salaries are
provided well by organization.
➢ Wages and salary refers to the establishment and implementation of sound policies
and practices of employee’s compensation. A wage and salary is the remuneration
paid for the service of labor in production periodically to an employee. The bank is
in service industry so the salary is given on monthly basis. They use to hire certain
salesman on commission base and they are provided their salaries on commission
base. While other permanent staff are being given monthly salaries. As HDFC bank
is reputed bank in market the pay scale are as per the standard.
➢ Sales executives (coax) are being given salary of 6000 to 8000 per month. While sales
officer’s salary ranges from 15000 to 18000 per month. HDFC bank is also giving
attractive incentives as per the target. The salary of branch manager is around 35000
per month.

Incentive
In HDFC, employees get incentives on the basis of the target given to each employee
and their area of work. They have developed the incentive structure for the
employees on the basis of point system. All the employees get the incentive in the
form cash reward.

BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE

HDFC BANK
º Helps the individual in marketing better decisions and effective problem solving
º Through training and development, motivational variables of recognition,
achievement, growth, responsibility and advancement are internalized.
º Aids in encouraging and achieving self-development and self-confidence
º Helps a person handle stress, tension, frustration and conflict
º Provides information for improving leadership, knowledge, communication skills and
attitudes
º Increase job satisfaction and recognition
º Moves a person towards personal goals while improving interactive skills
º Satisfies personal needs of the trainer
º Provides the trainee an avenue for growth and a say in his own futur
º Develops a sense of growth in learning
º Helps a person develop speaking and listening skills
º Helps eliminate fear in attempting new tasks

Employees benefit

The employees of HDFC automatically become HDFC bank salary account Holders
with special benefit and privileges and receive instant salary credit. The benefit include
international debit card, corporate card with individual liability (CCIL), access to phone
banking and internet banking, demat accounts, and host of other services to complement
their savings account. Here are some of the features of HDFC Bank’s salary account.

BEST PRACTICES
The most important thing in HR is to hold the confidence of people. Talent retention is a
challenge today. Another challenge is managing expectations of youngsters, who are
looking for fast tracking their career and want exposure quickly, they may not be lured
by money alone, but the profile that they work for. Bank gives ample opportunity to
those who seek job rotation, If they have a new opening, they advertise it internally.
Banks philosophy is that it is better to lose a person to another department than to
another bank. Their Performance management system is their 'signature' system. They
have one of the lowest rates of attrition.
Middle management onwards their salaries here are good. Women have been rising up
the ranks in the bank. At the junior level, over 33% of the workforce in consumer and
retail banking comprises of women. In the senior levels, it is about 12% and in the top
management, it is about 6 to 9%. This organization was very cost conscious. Today they
have foreign tours, parties as national and regional levels, award nights and outings. As
an organization they have started celebrating success.
 Swot Analysis of HDFC Bank

Strengths

➢ HDFC bank is the second largest private banking sector in India having
2,201 branches and 7,110 ATM’s.
➢ HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking.
➢ The bank’s ATM card is compatible with all domestic
and international Visa/Master card, Visa Electron/ Maestro, Plus/cirus and American
Express. This is one reason for HDFC cards to be the most preferred card for shopping
and online transactions.
➢ HDFC bank has the high degree of customer satisfaction when compared to other
private banks.
➢ The attrition rate in HDFC is low and it is one of the best places to work in
private banking sector.
➢ HDFC has lots of awards and recognition, it has received ‘Best Bank’ award
from various financial rating institutions like Dun and Bradstreet, Financial express,
Euromoney awards for excellence, Finance Asia country awards etc.
➢ HDFC has good financial advisors in terms of guiding customers towards right
investments .

Weaknesses

➢ HDFC bank doesn’t have strong presence in Rural areas, where as ICICI bank its
direct competitor is expanding in rural market.
➢ HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard
core loyals in terms of banking services.
➢ HDFC lacks in aggressive marketing strategies like ICICI.
➢ The bank focuses mostly on high end clients.
➢ Some of the bank’s product categories lack in performance and doesn’t have
reach in the market.
➢ The share prices of HDFC are often fluctuating causing uncertainty for the
investors.

Opportunities
➢ HDFC bank has better asset quality parameters over government banks, hence
the profit growth is likely to increase.
➢ The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.
➢ HDFC bank has improved its bad debts portfolio and the recovery of bad debts
are high when compared to government banks.
➢ HDFC has very good opportunities in abroad.
➢ Greater scope for acquisitions and strategic alliances due to strong financial
position.

Threats

➢ HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. Though

it is a slight variation it’s not a good sign for the financial health of the bank.
➢ The non banking financial companies and new age banks are increasing in India.
➢ The HDFC is not able to expand its market share as ICICI imposes major threat.
➢ The government banks are trying to modernize to compete with private banks.
➢ RBI has opened up to 74% for foreign banks to invest in Indian market.

OBJECTIVE OF THE STUDY

 To identify the awareness and usage of Digital-Banking.

 To study the impact of digitalization.
 To know how much banking services has been improved.
 To study the satisfaction level of the respondents.

LITERATURE REVIEW
Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and
27 public sector banks where majority ownership is included by the government. During
the reform period, the financial system permitted the banks to select their lending rates
and deposits, and also authorizes higher disclosure to make sure of large transparency in
the balance sheets. As a result of reforms in the banking sector the share of entire assets
of public sector banks was decreased to 75 percent from 90 percent. In the private
sector, the new banks entry diminished the concentration of assets which further might
have made the competition stronger which leads to more profitability, productivity, and
enhancing efficiency.

Dr. Richard Nyangosi (2014) in his study on Topic ‘Digitizing Banking Services’
finds that-

Internet and mobile technologies of recent years have gained momentum and are
impacting the working of every process including financial services. Financial Service
providers including banks are turning their necks toward the wave of these
Technologies. Their findings includes- Adoption of cell phone banking. Out of the
respondents surveyed, 26 percent had adopted cell phone banking in India out of those
who adopted, mostly were young aged. This service too like any other e-banking
services is gaining momentum as customers are finding it easy to bank 24x7. Using
different common E- banking services provided through a cell phone, which included:
balance inquiry, requesting cheque book, know last few transactions, requesting bank
statement, stop payment of cheque, and bill payment.
Adoption of Cyber Banking, the findings indicate that, 67.2 percent of the total sample
adopted Internet Banking and 36.8 did not adopt.
Perceived usefulness of SMS banking, financial products through cell phones have
proved to be useful to both customers and providers in recent times. Customers find it
easy, convenient, and efficient to transact conventional banking services which are non-
monetary in nature such as balance enquiry, transfer of funds, change password etc
through a mobile phone.
Malhotra, Pooja & Singh, (2010) This study is an attempt to present the present status
of Internet banking in India and the extent of Internet banking services offered by
Internet banks. In addition, it seeks to examine the factors affecting the extent of Internet
banking services. The data for this study are based on a survey of bank websites
explored during July 2008. The sample consists of 82 banks operating in India at 31
March 2007. Multiple regression technique is employed to explore the determinants of
the extent of Internet banking services. The results show that the private and foreign
Internet banks have performed well in offering a wider range and more advanced
services of Internet banking in comparison with public sector banks. Among the
determinants affecting the extent of Internet banking services, size of the bank,
experience of the bank in offering Internet banking, financing pattern and ownership of
the bank are found to be significant. The primary limitation of the study is the scope and
size of its sample as well as other variables (e.g. market, environmental, regulatory etc.),
which may have an effect on the decision of the banks to offer a wide range of Internet
banking services. The purpose of the study is to help fill significant gaps in knowledge
about the Internet banking landscape in India. The findings are expected to be of great
use to the government, regulators, commercial banks, and other financial institutions,
e.g. co-operative banks planning to offer Internet banking, bank customers and
researchers. The bankers as well as society at large will come to know where the banks
lag in terms of adoption of Internet banking and in providing different products and
services. An understanding of the factors affecting the extent of Internet banking
services is essential both for economists studying the determinants of growth and for the
creators and producers of such technologies. Moreover, this paper contributes to the
empirical literature on diffusion of financial innovations, particularly Internet banking,
in a developing country, i.e.
India.

Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding
e-banking services. A survey of 1,200 respondents was conducted in October 2008 in
Ludhiana district, Punjab. The respondents were equally divided among three
bank
groups namely, public sector, private sector and foreign banks. The present study
investigates the perceptions of the bank customers regarding necessity of e-banking
services, quality of e-banking services, bank frauds, future of e-banking, preference of
bank customers regarding banks, comparative study of banking services in various bank
groups, preferences regarding use of e-channels and problems faced by e-bank
customers. The major finding of this study is that customers of all bank groups are
interested in e- banking services, but at the same time are facing problems like,
inadequate knowledge, poor network, lack of infrastructure, unsuitable location, misuse
of ATM cards and difficulty to open an account. Keeping in mind these problems faced
by bank customers, this paper frames some strategies like customer education,
seminars/meetings, proper network and infrastructure facilities, online shopping
facilities, proper working and installation of ATM machines, etc., to enhance e-banking
services. Majority of professionals and business class customers as well as highly
educated and less educated customers also feel that e-banking has
improved the quality of customer services in banks.

Azouzi, D. (2009) this paper aims to check if the current and prompt technological
revolution altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to understand the
customers' behavior regarding the adoption of electronic banking. To achieve this
purpose, an empirical research is carried out in Tunisia and it reveals that panoply of
factors is affecting the Customer’s attitude toward e-banking. For instance; age, gender
and educational qualifications seem to be important and they split up the group into
electronic banking adopters and traditional banking defenders and so, they have
significant influence on the customers' adoption of e-banking. Furthermore, this study
shows that despite the presidential incentives and in spite of being fully aware of the e-
banking's benefits, numerous respondents are still using the conventional banking. It is
worthy to
mention that the fear of loss because of transactions errors or hackers plays a Significant
role in alienating Tunisian customers from online banking.
RESEARCH METHODOLOGY
Research methodology is the process used to collect information and data for the
purpose of making business decisions. The methodology may include publication
research, interviews, surveys and other research techniques.

Research Design
A research design serves as a bridge between what has been established (the research
objectives) and how to accomplish these objectives. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for
the collection, measurement and analysis of data. More explicitly, the design decisions
happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money. But how all these can be achieved
depends mainly on the research purpose.

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables.

Sampling Design:

For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are

selected because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

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

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an
interviewer ask questions in a face to face contact to the other person.

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

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

 15%3%2%
Savings
Account
80% Current
Account Salary
Account Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving
account, 15% have current account, 3% have salary account and 2% respondents have
other account which include NRI and fixed deposit account in the bank. It means that the
bank has a very good amount of saving account customers as compare to the other
account.
Q2. Since how long you are having account in HDFC Bank?

15%
33% 0-1
27% Year 1-

25% 2 Years
2-3
Years
3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and
more.

Q3. According to you what is more convenient way for banking?

10%

Branch
90% Banking
Digital
Banking

Interpretation:

When the customers are asked about their preference between branch banking and
digital banking 90% customers preferred digital banking and 10% customers preferred
branch banking as a mode of their banking transaction. Above graph reveals their
preferences for the both.
Q4. Do you use Digital Banking Services of HDFC Bank?

Ye
s
100%
No

Interpretation:

Out of the 100 respondents all the 100% of them use digital banking services of HDFC
bank.

Q5. What are your reasons for choosing our Digital banking services?

100%
90%
80%
70%
60%
60 80 68
50%
40%
30%
20%
10%
0
0%

Interpretation:
Out of the 100 respondents 60% use digital banking services for convenience, 80% use to
save time and 68% use due to 24 hour access.

Q6. Which Digital banking services do you use at HDFC Bank?

100%
90%
80%
70%
60% 75 60 24 4 100
50%
40%
30%
20%
10%
0%

Interpretation:

Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use
mobile banking, 24% of 100 use phone banking, 4% of 100 are using insta
alerts/sms/query, and all the 100% of respondents use ATM service.
Q7. For what purpose you use Digital banking services at HDFC Bank?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use
to pay bill, 78% use to get balance details, 36% use for recharge.
Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

45%
55% Yes
No

Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC
bank Go digital initiative while 55% of them are not aware.

Q9. Which Digital Initiative of HDFC you know about?

100%
90%
80%
70%
60% 88.88 78.33 28.88 44.44
50%
40%
30%
20%
10%
0%

Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers
do not know about Go digital initiative because they are not much aware about this
facility. 45% of them are aware about some initiative and out of those 45% customers
88.88% know about PayZaap, 78.33% know about Chillr, 28.88% know about Digital
wallet, and 44.44% know about Watch banking.

Q10. Do you use HDFC Bank Go Digital banking services?

40%
60% Y
es
N
o

Interpretation:
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and
60% do not use it.

Q11. Do you think HDFC Bank banking services has improved

through Digitalization?

2%

Ye
s
98%
No
Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of
HDFC bank and 2% of the respondents do not think that digitalization has improved the
banking services.

Q12. Please rate that how much Digitalization has improved the Banking Services?

18% 14% 5 Stars

4 StARS
3 Stars
68% 2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the
banking services, 68% rate it 4 stars, and 18% rate 3 stars.

Q13. What is your level of satisfaction with HDFC Bank Digital Services?
 2%
33% Fully
Satisfied
65% Satisfied
Somewhat
satisfied
Not satisfied

Interpretation:

Satisfaction level is very important for the direct banking channel of bank. In above
graph we can see that 65% Customers are satisfied with HDFC bank digital services,
33% customers are fully satisfied and only 2% are somewhat satisfied. It indicates that
HDFC bank customers have high satisfaction level from the services they get.
 FINDINGS

In our study we find that 100% respondents are aware with the ATM facility use this
facility and around 75% of them use internet banking, 60% use mobile banking, 24%
use phone banking. But the awareness of Insta query is only 4%.

Most of customers believe that Digital banking is more convenient way for banking and
most of them use digital banking in order to save time and also as it has 24 hour access.

Customers use digital banking services at HDFC bank mostly for money transfer, to pay
bill, for recharge, online shopping. HDFC bank provides very quick services to its
customers.

Most of respondents who are not using the Go Digital initiatives of the bank, it is
because they are not much aware about the initiatives of the bank.

The customer are using the digital banking services for few purpose it means the use of
the digital banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the
service of the bank for the particular digital banking service.

The response of the respondents indicates that digitalization has a good and positive
impact on the banking services.

According to the response of the respondents it shows that digitalization improved the
banking services very much for the customers.
CONCLUSION

SUGGESTION
❖ Though the Digital Banking is an effective tool but many of the customers are not
using it due to the awareness of the particular digital banking services. Now the
responsibility lies with the bank to make them aware about various Digital banking
channels through publicity and advertisement

❖ Bank should educate the customer about the usage of digital banking services and
also about their advantages. This would prompt the customers to shift from
traditional brick and mortar channel.

❖ It has been observed that even the customers who know about digital banking
services are not using this facility due to misconception and lack of information.
These customers should be targeted by the bank and must be convinced to use the
same.

❖ The result of the study show that customers are using only few services of various
digital banking services - for example ATM for view balance and cash withdrawal
etc. Though digital banking provides a full gamut of various services. Customer
should be made aware of these services and must be encouraged to use the same.

❖ The bank may improve existing facilities in rural areas through advertising, spread
awareness about computer and internet banking.

❖ The best way to motivate the customer to use digital banking is more efficient
customer care service.

LIMITATIONS
There are certain limitations of this project report which are listed below.

▪ This study is limited only to the customers of the HDFC bank, Lucknow.
▪ The responses of the customers may be biased.
▪ Sample size is limited to 100.

BIBLOGRAPHY
APPENDIX
 Questionnaire

NAME……………………………………

GENDER………………………………..

AGE……………………………………

OCCUPATION……………………......

EMAIL ID………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

Q4. Do you use Digital Banking Services of HDFC Bank?

 Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

Yes No

Q9. Which Digital Initiative of HDFC you know about?

 Pay Zapp Chillr

Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

Yes No

Q11. Do you think HDFC Bank banking services has improved

through Digitalization?

Yes No

Q12. Please rate that how much Digitalization has improved the Banking
Services?

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

Q14. Any suggestions or recommendation to HDFC Bank?