A

SIP REPORT
ON
“Promoting Digital Banking Services to Retail
Customers of HDFC Bank – A Study of HDFC Bank”

Submitted to

IBS, Dehradun

In Partial Fulfillment of the Requirement

For the Award of the Degree of

Master of Business Administration (MBA)

Submitted By: Faculty Guide:

Sandeep Patel Prof. Sanjeev Malviya
18BSPDD01C0173 Assistant Professor (IBS)

ICFAI Business School (IBS)

The ICFAI University, Dehradun
May, 2019
 DECLARATION

I hereby declare that the project entitled " Promoting Digital Banking
Services to Retail customers of HDFC – A STUDY AT HDFC BANK "
has been personally done by me under the guidance of Company Guide:
Mr. Mainsh Sharma (Branch Manager) and faculty Guide: Mr. Sanjeev

Malviya (Assistant Professor) during the period of 19th Feb 2019– 24th
May 2019. This is submitted in partial fulfillment of the requirements for
the award of the certificate of MBA Program of IBS Dehradun of the
certificate, all the data presented in this project is true and correct to the
best of my knowledge and belief.

Sandeep Patel
18BSPDD01C0173
 Acknowledgement

I, SANDEEP PATEL, ROLL NO. 18BSPDD01C0173 acknowledge the sincere assistance

provided to me from several rather unexpected quarters during the course of execution of this
study.

It would be a mammoth task to place on record my gratitude to each and every one of them
but a whole hearted attempt would be made nevertheless, least I be branded ungrateful.

I present my sincere thanks to MR. MANISH SHARMA (Branch Manager) for giving me
an opportunity to undergo training at HDFC BANK and extremely thankful for Guiding me
and making my stay at HDFC BANK a memorable learning experience.

I would also like to thank HDFC bank Staff for their wonderful support & inspirable guiding.

I would like to begin with special note of gratitude and heartfelt thanks to PROF. SANJEEV
MALVIYA (FACULTY COORDINATOR) for the encouragement, affections, valuable
advice and guidance that helped me to complete this project successfully.

I am grateful to all faculty members of IBS DEHRADUN and my friends who have helped
me in the successful completion of this project.

Last but not the least I am indebted to my PARENTS who provided me their time, support
and inspiration needed to prepare this report.
 CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on “Promoting
Digital Banking Services to Retail Customers of HDFC Bank – A Study of HDFC
Bank” submitted by Sandeep Patel for the academic year 2018-2020. This project is original
to the best of my knowledge and has been accepted for Internal Assessment.

PROF. SANJEEV MALVIYA

(ASSISTANT PROFESSOR, IBS DEHRADUN)

 TABLE OF CONTENT

Chapters Content Pages no.

1 Introduction of Banking 7-8
1.1 Digitalization 9-10
1.2 Company Profile 11-13
1.3 Product and Services by HDFC 14-21
Bank
1.4 Digital services 22
1.5 Application HDFC Bank 23-24
1.6 Swot Analysis of HDFC Banking 25
2. Review of Literature 26
3. Objective of the Study 27
4. Research Methodology 28-29
4.1 Analysis and interpretation 30-37
4.2 Findings 38
4.3 Limitations 39
4.4 Conclusion 40
4.5 Suggestion 41
4.6 Appendix 42-43
5. Bibliography 44
 ABSTRACT

Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge relating
to the concepts and practices of the assigned topics in the organization.

The report contains the organizational study done at HDFC Bank. The report title is
“Promoting Digital Banking Services to Retail customers of HDFC.

The present paper focuses on digital services provided by HDFC Bank to Retail customer.

This paper helps to Promoting Retail Banking customer’s attitude towards such modern
services provided by banks.

The whole study has been divided into parts:-

The first part of the research project, there is an introduction of Banking, company profile
and products of HDFC Bank are given.

The second part of the research project which contains a market research is performed with
a sample size of 120 people. The research study was limited to Millennium Plaza.

The third part of the study contains data analysis and interpretation.

The main objective of the research is to Promoting digital services to Retail customers of
HDFC Bank and to know the customer awareness regarding the HDFC Bank’s digital
services.

The Indian consumer has a false perception about private banks – they feel that it would not
safe. Safety and returns are the two main reasons people invest in banks. On the whole HDFC
bank is a good place to work at. Every new recruit is provided with extensive training on the
products of HDFC. This training enables an advisor/sales manager to market the policies
better. The company should try to create awareness about itself in India. . With an
improvement in the sales techniques used, a fair bit of advertising and modifications to the
existing product portfolio, HDFC would be all set to capture the banking market in India as it
has around the globe.
 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

A Bank:

 Accept deposits of money from public.

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

MEANING OF DIGITALIZATION-

Digitalization is the process of converting information into a digital (i.e. computer- readable)

format, in which the information is organized into bits. The result is the representation of an
object, image, sound, document or signal (usually an analogy signal) by generating a series of
numbers that describe a discrete set of its points or samples. The result is called digital
representation or, more specifically, a digital image, for the object, and digital form, for the
signal. In modern practice, the digitized data is in the form of binary numbers, which
facilitate computer processing and other operations, but, strictly speaking, digitizing simply
means the conversion of analogy source material into a numerical format; the decimal or any
other number system that can be used instead.

DIGITAL BANKING -

Digital banking is the digitization (or moving online) of all the traditional banking activities
and programs that historically were only available to customers when physically inside of a
bank branch. This includes activities like:

 Money Deposits, Withdrawals, and Transfers

 Checking/Saving Account Management
 Applying for Financial Products
 Loan Management
 Bill Pay
 Account Services

HISTORY OF DIGITAL BANKING-

The earliest forms of digital banking trace back to the advent of ATM machines and cards
launched in the 1960s. As the internet emerged in the 1980s with early broadband, digital
networks began to connect retailers with suppliers and consumers to develop needs for early
online catalogues and inventory software systems.
By the 1990s the Internet emerged and online banking started becoming the norm. The
improvement of broadband and ecommerce systems in the early 2000s led to what resembled
the modern digital banking world today. The proliferation of smart phones through the next
decade opened the door for transactions on the go beyond ATM machines. Over 60% of
consumers now use their smart phones as the preferred method for digital banking.
The challenge for banks is now to facilitate demands that connect vendors with money
through channels determined by the consumer. This dynamic shapes the basis of customer
satisfaction, which can be nurtured with Customer Relationship Management (CRM)
software. Therefore, CRM must be integrated into a digital banking system, since it provides
means for banks to directly communicate with their customers.
There is a demand for end-to-end consistency and for services, optimized
on convenience and user experience. The market provides cross platform front ends, enabling
purchase decisions based on available technology such as mobile devices, with a desktop or
Smart TV at home. In order for banks to meet consumer demands, they need to keep focusing
on improving digital technology that provides agility, scalability and efficiency.
 COMPANY’S PROFILE

Formation of the company-

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

Business focus-

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to Build sound
customer franchises across distinct businesses so as to be the Preferred provider of banking
services for target retail and wholesale Customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

VISION STATEMENT OF HDFC BANK-

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core
values such as:-
1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.

MISSION STATEMENT OF HDFC BANK-

* World Class Indian Bank.

* Benchmarking against international standards.
* To build sound customer franchises across distinct businesses

BUSINESS STRATEGY-
* Increasing market share in India’s expanding banking
* Delivering high quality customer service
* Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

DISTRIBUTION NETWORK-

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 5000 branches spread over 2727 cities across India.
The Bank also has a network of about over 13160 networked ATMs across these Cities.
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.

Mergers and Acquisitions

 HDFC Bank merger with Times Bank in February 2000. This was first merger of two
private banks.
 Centurion Bank was acquired by HDFC Bank in 2008.

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
(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. The Bank's
business is supported by scalable and robust systems which ensure that our clients always get
the finest services we offer. The Bank has prioritized 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.

ROLE & GOALS OF A PERSONAL BANKER

Personal Banker’s (Sales) main duty is to generate revenue for bank from given customer
base. He/she will be given a customer base (Classic/ Preferred / Imperia) having accounts of
good balance. You need to look after that base in terms of value and cross sell other banking
products to them as well for generation of revenue. At some locations Personal Bankers don’t
even sit in branch and does rigorous customer visit.

The Personal Banker is responsible for managing High Net Worth customers who are a part
Of the Classic Programme
The PB has to ensure the below while managing the Classic Portfolio
Superior Customer Service
Disseminating correct product information to the customer
Enhancing customer wallet size- ensuring customers make us their primary bank
Meeting benchmark set
Enhance liability values
Updating of internal documentation
Ensure that all classic customers in the portfolio are contacted regularly
 RECENT AWARDS AND ACHIEVEMENTS

BrandZ’s Top 100 Global Brand List - HDFC Bank featured for the fourth time

14th Visa Asia Pacific Security Summit - India and South Asia Champion Security Award
2018

National Payments Excellence Award 2018- HDFC Bank wins NPCI Payment Excellence
Award

Barron’s World Top 30 CEOs - Mr.Aditya Puri in Barron’s Top 30 Global CEOs
for 4th
Year-Growth Leaders Category

Dum & Bradstreet Corporate Awards 2018 - Best Bank

Federation of India Export Organization - Best Bank: Export Finance – Non MSME

Business Today Best Bank Awards - Bank of Year

Best in Innovation
Best Large Bank
Fastest Growing Large Bank
 Products and Services Provided by HDFC
HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The products 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 following accounts and their respective interest rates are mentioned
underneath:
 Savings Max Account
 Regular Savings Account
 Women Savings Account
 Kids Advantage 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

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
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.
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

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 who promise special offers and
privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward
Points on every spending made by the cardholder which can be redeemed for attractive
offers. The range of Credit Cards offered by the bank is as follows:
Super Premium Cards- There are 2 variants under the Super Premium Variety which are:
 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
 Jet Privilege HDFC Bank Platinum
 Platinum Times Card
 Titanium Times Card

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:

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 includes:
 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
 Diners Club Premium
 Diners Club Rewards
 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- Arrange 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 includes:
 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 who 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.
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.
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

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
a) Internet Banking.
b) Phone Banking.
c) Mobile Banking.
f) ATMs.
g) Watch Banking.

a) Internet Banking: HDFC Net Banking your one stop solution for all your banking
needs. Get all account details, submit requests and undertake a wide range of
transactions online through our HDFC Bank Net Banking services. Our E-Banking
service makes banking a lot more easy and effective.
b) Phone Banking: Phone Banking offers you all the conveniences you need to access
your Accounts, Credit Cards, Loans, Demat & Investment Services from the comfort of
your home, office or on the move, all this in your preferred language. Following are the
services offered- report loss of your ATM/ DEBIT/ CREDIT card, check your account
balance, enquire about cheque status, order a cheque book/account statement/stop
payment of cheque etc.
c) Mobile Banking: Mobile banking is usually available on a 24-hour basis. The types of
financial transactions which a customer may transact through mobile banking include
obtaining account balances and list of latest transactions, cheque book order.
d) Watch banking: the first time in India, Watch Banking is now available exclusively
for HDFC Bank customers through an Apple Watch. You can now do your favourite
transactions right from your Apple Watch without even taking out your phone.
 APPLICATIONS OF HDFC

Mobile Banking LITE- Presenting the HDFC Bank Mobile Banking LITE App – An App
that works without an Internet connection. The App is light, so it doesn’t take too much space
on your phone and is quick to install, even over slow connections. You don’t need a Login ID
/ Password to use the app. Still, it is secure as the App works only from your mobile number
that’s registered with the bank.

HDFC Bank Mobile Banking LITE App lets you…

 Check your A/c balance

 Get a mini statement of your A/c
 Request for a cheque book
 Request an A/c statement
 Check status of cheques you’ve issued
 Stop payment for your cheques
 View fixed deposit summary
 Create Mobile Banking / Net Banking password

PAYZAPP: HDFC BANK LTD has launched PAYZAPP a mobile app that allows the
customer to broadly do 5 things- manage debit/ credit card details, recharge and pay bills, use
virtual card, send money through wallet and shop. The app is available only for HDFC
BANK customers and can be downloaded from GOOGLE PLAY STORE this app is
available only for android phone users. PAYZAPP contains a prepaid wallet and a virtual
prepaid card.

Vahan Gyan: HDFC Bank Vahan Gyan is a Sales enablement solution for its employees and
affiliates who are dealing with vehicle loans. It’s a comprehensive knowledge bank of
everything about Cars and 2-Wheeler with detailed like On-Road-Price, EMIs, Pictures,
Specifications, Offers, Reviews, Videos etc.

Smart Hub- Smart Hub merchant application offers a wide range of digital payment
solutions to help every business grow and accept cashless payments from their customers.
Merchants can collect payments using Bharat QR Code, UPI, SMS Pay and Aadhar Pay.
 SWOT ANALYSIS OF HDFC BANK-
Strengths -

 HDFC bank has the high degree of customer satisfaction when compared to other
private banks.
 Right strategy for the right products.
 HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from
various financial rating institutions like Dun and Bradstreet, Financial express, e,
Finance Asia country awards etc.

 Great Brand Image.

 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.
 The bank focuses mostly on high end clients.
 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.
 Could extend to overseas broadly.

 New specialist applications.

 Could seek better customer deals.

 Fast-track career development opportunities on an industry-wide basis.

Threats-

 Very high competition prevailing in the industry.

 Lack of infrastructure in rural area.
 The government banks are trying to modernize to compete with private banks
 REVIEW OF LITERATURE
Pooja Malhotra & Balwinder SINGH (2009) - In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”. The paper
describes the current state of Internet banking in India and discusses its implications for the
Indian banking industry. Particularly, it seeks to examine the impact of Internet banking on
banks’ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank’s websites, during the period of June 2007, the results show that nearly 57
percent of the Indian commercial banks are providing transactional Internet banking services.
The univariate analysis indicates that Internet banks are larger banks and have efficiency
ratios and profitability as compared to non-Internet banks. Internet banks rely more heavily
on core deposits for funding than non-Internet banks do. However, the multiple regression
results reveal that the profitability and offering of Internet banking does not have any
significant association, on the other hand, Internet banking has a significant and negative
association with risk profile of the banks.

Vijay M. Kumbhar (2011) - In his research paper “Factors Affecting the Customer
Satisfaction in E-Banking: Some evidences Form Indian Banks”. This study evaluates
major factors (i.e. service quality, brand perception and perceived value) affecting on
customers’ satisfaction in e-banking service settings. This study also evaluates influence of
service quality on brand perception, perceived value and satisfaction in e-banking. Required
data was collected through customers’ survey. For conducting customers’ survey liker scale
based questionnaire was developed after review of literature and discussions with bank
managers as well as experts in customer service and marketing. Collected data was analyzed
using principle component (PCA) using SPSS 19.0. A result indicates that, Perceived Value,
Brand Perception, Cost Effectiveness ,Easy to Use, Convenience, Problem Handling,
Security/Assurance and Responsiveness are important factors in customers satisfaction in e-
banking it explains 48.30 per cent of variance. Contact Facilities, System Availability,
Fulfilment, Efficiency and Compensation are comparatively less important because these
dimensions explain 21.70 percent of variance in customers’ satisfaction. Security/Assurance,
Responsiveness, Easy to Use, Cost Effectiveness and Compensation are predictors of brand
perception in e-banking and Fulfilment, Efficiency, Security/Assurance, Responsiveness,
Convenience, Cost Effectiveness, Problem Handling and Compensation are predictors of
perceived value in e-banking.
 OBJECTIVES OF THE STUDY

The current study was undertaken to achieve the following stated objectives:

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

 To study the popularity of the Digital service among the customers of HDFC Bank.
 To know about banking services has improved through Digitalization.
 To study the satisfaction level of the Retail customers.
 RESEARCH METHODOLOGY
Research is a common parlance which refers to search for knowledge. It is a procedure of
logical and systematic application of the fundamentals of science to the general and overall
questions of a study and scientific technique, which provide precise tools, specific
procedures, and technical rather philosophical means for getting and ordering the data prior to
their logical analysis and manipulating different type of research designs is available
depending upon the nature of research project, availability of manpower and circumstances.

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
In fact, the research design is the conceptual structure within which research is conducted.
This research was descriptive in nature.

 Define the information needed.

 Design the research.

 Specify the measurement and scaling procedures.

 Construct and present a questionnaire or an appropriate form for data collection.

 Specify the sampling process and sampling size.

 Develop a plan of data analysis.

Descriptive research: The research undertaken is a descriptive research as it was

concerned with specific predictions, with narration of facts and characteristics
concerning digital service provided by HDFC Bank.
.

Data Collection: The objectives of the project are such that both primary and secondary
data is required to achieve them. Primary data was used for the project. The mode of
collecting primary data is questionnaire mode and sources of secondary data are various
magazines, books, newspapers, & websites etc.

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.

Sample size – A sample of 120 respondents was selected from various areas of Remfry
House. An effort was made to select respondents evenly. The survey was carried out on
respondents.

Sample Unit- In this project sampling unit consisted of the various individuals who had
Their bank accounts with HDFC Bank and not HDFC bank account holder.

Sampling Technique- For the purpose of research convenient sampling technique was
Used.
 Analysis and Interpretation-

After the data collection, it was compiled, classified and tabulated manually and with help of
computer. Then the task of drawing inferences was accomplished with the help of percentage
and graphic method.

1. Are you an account holder in HDFC Bank?

yes no

17%

83%

Interpretation-

Out of 120 respondents that I have taken for my survey 83% respondents have HDFC Bank
account and 17% have not HDFC Bank account. It means that the people prefer to open the
account in HDFC bank.

Reason of not HDFC bank account-

 Account in other banks like ICICI, SBI, and etc.

 Do not want to maintain average month balance - RS 10000/- or RS 5000/-
 2. For the past how many years you have account with HDFC
Bank?

0-1yrs 1-2yrs 2-4yrs more than 4 yrs

10%
20%

25%

45%

Interpretation-

Out of 100 respondents 10% have their account in HDFC Bank from the last 4 years and
more.

3. What kind of account do you maintain in this Bank?

Saving Salary Current Demat

5%

15%

10%

70%
Interpretation:

Out of 100 respondents that I have taken for my survey 70% respondents have saving
account, 15% have current account, 10% have salary account and 5% respondents have
Demat account. It means that the bank has a very good amount of saving account customers
as compare to the other account.

4. Are using Digital Services provided by bank?

Yes No

100%

Interpretation:

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

5. If yes, which platform you use Digital Banking?

 %age of Respondents
120

100

80
%age of Respondents
60

40

20

0
Net Banking Mobile Banking Payzapp

Interpretation:

Out of the 100 respondents 100% of them use internet banking, 70% out of 100 use mobile
banking, 40% of 100 use payzapp.

6. What are your reasons for choosing our Digital banking

services?

90

80

70

60

50

40 %age of Respondents

30

20

10

0
Conevience 24 Hours Access Save Time
Interpretation:

Out of the 100 respondents 60% use digital banking services for convenience, 80% use to
save time and 78% use due to 24 hour access.

7. Since when have been using Digital services?

0-1yrs 1-2yrs 2-4yrs more than 4 yrs

10%
20%

25%

45%

Interpretation:

Out of 100 respondents 10% have using digital services from the last 4 years and more. The
data exact same in the question no.2.It mean HDFC bank diverting the people towards digital
services from the starting of opening account.

8. Which method you use for fund transfer?

 %age of Respondents
80
70
60
50
40 %age of Respondents
30
20
10
0

Interpretation:

Out of the 100 respondents 70% of them use internet banking, 60% out of 100 use mobile
banking, 40% of 100 use 40% use branch visit.

9. Do you think that HDFC Bank caters all your banking

needs?

YES
NO

100%

Interpretation:

Out of the 100 respondents all the 100% of them caters all banking need.
 10. Do you think HDFC Bank banking services has improved through
Digitalization?

2%

Yes
No

98%

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.

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

18% 14%

5 Stars
4 Stars
3 Stars
2 Stars
1 Star
68%

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

2%
33%
Fully Satisfied
Satisfied
Somewhat satisfied
Not satisfied
65%

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 my study I find that 83% respondents have HDFC Bank account and 17% have not HDFC
Bank account. It means that the people prefer to open the account in HDFC bank. Reason
of not HDFC bank account-
 Account in other banks like ICICI, SBI, and etc.
 Do not want to maintain average month balance - RS 10000/- or RS 5000/-

In my study I find that 100% respondents are aware with the digital services provide by
HDFC Bank and around 100% of them use internet banking, 70% use mobile banking, 40%
payzapp.

In my study I find that 70% of them use internet banking for fund transfer.

All of customer believes that HDFC Bank caters all your banking needs.

The response of the respondents indicates that HDFC Bank account holder go to digital
services from the opening of account. It indicates that HDFC Bank diverting the customers
towards digital services forms starting and HDFC Bank wants all customers will be aware
about digital services.

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.

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.

LIMITATIONS OF THE WORK

 Due to security reasons and the banking policies, some of the sensitive data was not
able to be extracted.

 This study is limited only to, Remfry house only.

 The responses of the customer may be biased
 Sample Size is Limited to 120.

CONCLUSION:
The project speaks about the study of Promoting Digital Banking Services to Retail
Customers of HDFC Bank.

The final aim of the project is to study how the adoption of digitalization has affected the
financial status of the bank. It is also crucial to know the profits and the losses the bank
undergoes while adopting this methods.

During this first half of the project, while studying about the departments, it was also studied
how digitalization was adopted in each department and how it has benefited both, the
customers and the bank officials.

A survey was made to study how digitalization has helped branch. Customers not using the
digital banking were also convinced to start using the same.

HDFC bank was the first bank in the banking sector to adopt digitalization and has won an
award for the same.

Through digital banking, banking is now available to the customers on the tip of their fingers,
by providing the facility of banking over mobile phones. Even with a basic phone without
internet access, a customer can bank using SMS and Missed Call Banking. Through mobility,
the bank is delivering a greater flexibility to the customers.

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 shows 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.
 APPENDIX

Dear Sir/Madam,

NAME :

GENDER : M/F

AGE :

NO. OF DEPENDENT :

I am the student of ICFAI Business School, Presently doing a project on “Digitalization”.

I request you to kindly fill the questionnaire below:

1. Are you an Account holder in HDFC Bank?

(a) YES (b) NO

2. For the past how many years you have account with HDFC Bank
(a) 0-1 yrs (b)1-2 yrs c) 2-4 yrs (d) more than 4yrs

3. Which kind of account do you maintain in this bank?

(a) Saving (b) current (c)salary (d) demat (e) loan a/c (f) credit card

4. Are you using Digital banking facilities provided by the bank

(a) YES (b) NO

5. If yes, which platform you use for digital banking

(a) Net Banking (b) mobile banking (c) PayZapp

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

(a) Convenience (b) 24 hour access (c) To save time

7. Since when have you been using e-banking services?

(a) 0-1 yrs (b)1-2 yrs c) 2-4 yrs (d) more than 4yrs

8. Which method you use for payment/fund transfer

(a)Branch visit (b) Net Banking (c) Mobile banking

9. Do you think that HDFC Bank caters all your banking needs?
 (a) YES (b) NO

10. Do you think HDFC Bank banking services has improved through Digitalization?

(A) Yes (B) No

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

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

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

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

13. Any reference-

…………………………………………………………………………
…………………………………………………………………………
…………………………………………………………………………

BIBLIOGRAPHY
Website-

 http://www.marketing91.com/swot-analysis-hdfc/
 www.hdfcbank.com

 https://en.wikipedia.org/wiki/HDFC_Bank
 https://www.paisabazaar.com/hdfc-bank/

BOOKS:

Kotler Philip, marketing management, (Pearson education, 12th edition)

Malhotra K. Naresh, marketing research (An applied orientation), Research design.

Banking practices & strategies – Author Anand Sharma