Professional Documents
Culture Documents
HDFC Bnk...
HDFC Bnk...
SWOT analysis of
HDFC Bank And
Comparison with
ICICI Bank
By:- VARUN BAWA
Acknowledgements
If words are considered to be signs of gratitude then let these words
of this project.
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CONTENTS
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BANKING STRUCTURE IN INDIA
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Here we more concerned about private sector banks and competition
among them. Today, there are 27 private sector banks in the banking
sector: 19 old private sector banks and 8 new private sector banks.
The banks which have been setup in the 1990s under the guidelines
SECTOR BANKS.
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INDIAN BANKING INDUSTRIES
The country’s middle class accounts for over 320 million people.
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The Indian banking Industry is in the middle of an IT revolution,
number of large players that can compete globally rather than having
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by Reserve Bank of India paving roadmap for foreign banks in India
greater freedom in India. Among them is the world's best private bank
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Reserve Bank of India (RBI) to set up a bank in the private sector, as
Bank Limited', with its registered office in Mumbai, India. HDFC Bank
1995.
large corporate client base for its housing related credit facilities.
environment.
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HDFC Bank began operations in 1995 with a simple mission : to be a
there. Today, we are proud to say that we are well on our way
COMPANY PROFILE
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STRONG NATIONAL NETWORK
HDFC BANK
HDFC bank ltd provides various financial products and services. It operates
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Auto, personal, commercial vehicle, home, gold, and educational loans;
loans
Against securities, property, and rental receivables; and health care finance
Sells third party financial products, such as mutual funds and insurance, as
Well as distributes life and general insurance products through its tie-ups
With insurance companies and mutual fund houses. The wholesale banking
Foreign banks, and regional rural banks; and wealth management products
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In areas, such as foreign exchange, money market, interest rate trading, and
And 3,295 automated teller machines in 528 cities in India . The company
KEY EXECUTIVES
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March 2006 March 2007 March 2008
branches by June 30, 2008. During the year, the Bank stepped up
6.2 million to 8.7 million and total cards issued (debit and credit
22% for the year ended 2007-08, the Bank’s net advances grew
segments.
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The transactional banking business also registered healthy growth
requirements.
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TECHNOLOGY USED IN HDFC BANK
In the era of globalization each and every sector faced the stiff
competition from their rivals. And world also converted into the flat
from the globe. After the policy of liberalization and RBI initiatives to
take the step for the private sector banks, more and more changes
are taking the part into it. And there are create competition between
Private sector banks are today used the latest technology for the
Information Technology plays the vital role in the each and every
industries and gives the optimum return from the limited resources.
combined they reached the sky. New technology changed the mind of
the customers and changed the queue concept from the history
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banking transaction. Today there are different channels are available
We can see that the how technology gives the best results in the
Internet banking, in a year 2001 (2%) and in the year 2008 ( 25%).
HDFC BANK is the very consistent player in the New private sector
service.
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2001
Branches 43%
ATM 40%
Phone Banking
14%
Internet 2%
Mobile 1%
2005
Branches 17%
ATM 45%
Phone Banking
12%
Internet 25%
Mobile 1%
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HDFC BANK PRODUCT AND CUSTOMER
SEGMENTS
PERSONAL BANKING
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• Gold Loan
WHOLESALE BANKING
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Corporate Small and Medium Financial Institutions
Enterprises and Trusts
Mutual Funds
Stock Brokers
Insurance Companies
Commodities
Business
Trusts
BUSINESS MIX
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Total Deposits Gross Advances Net Revenue
Retail Wholesale
NRI SERVICES
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Accounts & Deposits Remittances
• NetSafe • NetBanking
• BillPay • OneView
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • PhoneBanking
• Online Donation • Email Statements
• Branch Network
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BUSINESS STRETEGY
of the bank. Maintain good relation with the customers is the main
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• Increase market share in India’s expanding banking and
operating costs.
financial sector.
cost of funds.
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FIVE “S” , PART OF KAIZEN
WORK PLACE TRANSFORMATION
Believe in
Five ‘S’ Part of Kaizen is the technique which is used in the bank
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• It can be started immediately.
• Every one has to participate.
• Five “ S” is an entirely people driven initiatives.
• Brings in concept of ownership.
• All wastage are made visible.
(1) SORT :-
Frequently Less
Required Frequently
Remove Required
everything from
workplace
Wanted but
not Required Junk
(2) SYSTEMATIZE :-
Junk
Systematize is focus on efficient and effective Storage method.
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That means it identify, organize and arrange retrieval.
(4) STANDERDIZE :-
(5) SUSTAIN:-
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LABELLING ON FILE
FILE NUMBER
SUBJECT
FROM DATE
TO DATE
OWNER
BOX LABEL
For Example
1/3/A/6
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COLOUR CODING OF FILES
DEPARTMENT
Welcome Desk
Personal Banker
Teller
Relationship Manager
Branch Manager
Demat
Others
In the HDFC BANK each department has their different color coding
apply on the different file. Due to this everyone aware about their
particular color file which is coding on it and they save their valuable
time. It is a part of Kaizen and also included in the system of the Five
‘S’. Logic behind it that , the color coding are always differentiate the
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HUMAN RESOURCES
faculty.
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RUPEE EARNED - RUPEE SPENT
and where to spent money. And balanced between these two things
rupee earned and rupee spent are required for smooth running of
it include both things from where Bank earned Rupee and where to
spent.
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HDFC BANK earned from the ‘Interest from Advances’ 51.14 % ,
sources of the bank. Bank also earned from the Forex and
RECENT DEVELOPMENT
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The Reserve Bank of India has approved the scheme of
branches of HDFC Bank with effect from May 23, 2008. With RBI’s
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The combined entity would have a nationwide network of 1167
Bank Limited for every 29 equity shares of Re. 1/- each held in
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Promoted in 1995 by Housing Development Finance Corporation
banking. Within a relatively short span of time, the bank has emerged
and the ability to deliver world-class service with rapid response time.
Over the last 13 years, the bank has successfully gained market
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As on March 31, 2008, the Bank had a network of 761 branches and
1,977 ATMs in 327 cities. For the year ended March 31, 2008, the
March 31, 2007. Total balance sheet size too grew by 46.0% to INR
quality.
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advice on financial planning. The bank offers its customers an array
merged with Lord Krishna Bank (LKB), post obtaining all requisite
franchise of 404 branches and 452 ATMs in 190 locations across the
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Exchange.
ACHIEVEMENT IN 2007
Business Today-
Monitor Group
survey One of India's "Most Innovative Companies"
Financial Express-
Ernst & Young Best Bank Award in the Private Sector category
Award
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Global HR 'Employer Brand of the Year 2007 -2008'
Excellence Awards Award - First Runner up, & many more
- Asia Pacific HRM
Congress:
Asian Banker HDFC BANK Managing Director Aditya Puri wins the
Leadership Achievement Award for India
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SWOT ANALYSIS
STRENGTH WEAKNESSES
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• Great Brand Image • Processes and systems, etc
• Dedicated workforce
aiming at making a
long-term career in
the field.
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Opportunities Threats
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COMPETITIVE SWOT ANALYSIS WITH ICICI BANK
STRENGTHS WEAKNESSES
O
P S – O Strategies W – O Strategies
P
O Strength: Large Capital base. Weakness: Workforce
R
T Opportunity: Market Expansion. Responsiveness.
U
N Opportunity: Outsourcing of Non –
I Strategy: Deep Penetration into Core Business.
T
I Rural Market. Strategy: Outsource Customer
E Care & other E-Helps.
S
S – T Strategies W – T Strategies
T
H Strength: Low operating costs Weakness: Not Equal to
R International Standards.
E
A Threat: Increased Competition Threat: Entry of many Foreign
T from others Pvt. Banks. Banks.
S
Strategy: Steps to Ensure
Loyalty by old Strategy: Consider additional
Customers. benefits
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Detailed Analysis:
Strength:
It is well know that ICICI Bank has the largest Authorised Capital
Opportunity:
has given a huge rise in savings deposits – from the above point it
sector in India.
Strategy:
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straight possible strategy for ICICI Bank could be - to penetrate
into the rural sector of India for expanding its market share as well
Strength:
ICICI Bank is not only known for large capital but also for having a
services provided.
Threat:
for their state of art working and keeping low operation costs.
Strategy:
To ensure that ICICI Bank keeps going on with low operation cost
& have continuous business it should simply promote itself well &
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iii. Weakness - Opportunity Analysis.
Weakness:
Very low in Indian banking sector, though ICICI Bank has better
responsible staff but it still lacks behind its counterparts like HSBC,
Opportunity:
In the present world, India is preferred one of the best places for
Strategy:
sourcing there customer care & BPO’s, this same strategy should
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iv. Weakness - Threat Analysis.
Weakness:
Threat:
banks like CITI Bank, YES Bank etc which posses an external
entrant threat to ICICI Bank – as this Banks are known for their art
Strategy:
After having new entrants threat, ICICI Bank should come up with
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QUESTIONNARIE BASED ANALYSIS:
a) YES
b) NO
40%
yes
no
60%
a) Good
b) Ok
c) No comments
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50%
good
ok
45% no comm ents
5%
50
5%
25%
its im age
its s ervice
45% its products
all the above
25%
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25% yes
30%
no
to som e
extent
45%
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e) credit cards yes/no
f) insurances yes/no
h) loans yes/no
s aving a/c
5% 15% fixed depos it
current a/c
15% dem at a/c
40%
credit cards
5%
insurances
5% m utual funds
10%
5% loans
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6. Which of these products are you interested in?
f) Insurances yes/no
h) Loans yes/no
s aving a/c
5%
19% fixed depos it
23% current a/c
dem at a/c
credit cards
24%
14% insurances
m utual funds
3% 10%
loans
2%
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7. Which of the following banks are you interested in ?
30%
private s ector
banks
public se ctor
banks
70%
8. Do you know about the innovative service being provided by the banks ?
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a) Yes
b) No
45% yes
55% no
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9. which of the following innovative services of the bank would you like to
go in for ?
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a) phone banking
b) A T M
c)Net banking
d) Mobile banking
e)Bill payment
f) None of these
g) All of these
phone
5%
banking
5% 10% ATM
10%
net bank ing
10%
m obilebankin
g
60%
none of these
all of the se
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10. How do you want to contacted?
a) By personal banker
b) By sales person
c) By references
d) Can’t say
personal
5% banker
9%
s ales person
36%
references
27%
can't s ay
23%
any other
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11.Are you aware of the schemes offered for different age groups?
a) yes
b) no
60
40%
yes
no
60%
senior citizen
previlige s
5%
30% kid's
advantages
previlige s
45%
preferre dcus t
om er
20% previlige s
all the above
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12. Which products of the bank would you rate the best?
A) Savings a/c
b) Fixed deposits
c) Current a/c
d) De-mat a/c
e) Credit cards
f) Insurances
g) Mutual funds
h) Loans
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saving a/c
0% 10%
fixed de pos it
30%
dem at a/c
30% current a/c
insurance
13. How do you get to know about the various products of the banks?
a) Through adds
b) Through relations of friends
c) Personal banker
d) Sales
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9% adds
18%
18% relatives or
friends
personal
banker
s ales person
55%
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FINDINGS:
• It has been find that the person in invest in the various products and
scheme of the banks only when he is having discriminatory
income/surplus money.
• Businessman rarely invests in the deposit schemes because he would
like to invest in his business to purchase more stock or to expand his
business if he has surplus money.
• I have also find that most of the people like to go for fixed deposit
schemes , mutual funds investments schemes .
• Persons having fixed monthly salary such as service class employee,
Govt. employee professionals like doctors, teachers quite invest their
savings in the deposit schemes so as to multiple their savings.
• Indian banking industry is no longer an assonated entity .it is
increasingly beings effected by dynamic and highly competed global
banking environment .
• Banks not only have to reduce cost but also have to design innovative
strategy.
• Asset products like loans are getting least preference by the customer
due to the higher interest rate and cumbersome procedure.
• A visit was made to some branches; it was found that these schemes
could not get due publicity or promotion at branches.
• Only a pamphlet is available which is given only to those who visit
the bank to know about various schemes.
• It has been observed that people are unaware of new schemes and they
keep on investing in the old scheme only.
• Went ask the people about the reason behind unawareness
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- 10% say that unawareness is due to the indifference of the bank
officials. The bank officials attend their friends and relatives better
than to the ordinary persons.
- 10% say unawareness is due to difficult access to bank officials as
most of the time the bank officials remain busy. They don’t have time
for ordinary persons, so a person is unable to know about the latest
products or schemes offered by the bank.
LIMITATION:
Selling a product is not that much easy as we thick .there are certain hurdles
that come in our way while selling a product. These are as follows:
1. customer are very busy and have no time to attend the clll.
2. limited access to phone lines.
3. lack of comprehensive information of the bank’s products for the
trainees.
4. change of contact no. of customers.
5. interest rate on saving a/c’s, F’s is very low as compared to other
banks.
6. preferred customer know much about the products and it is very
difficult to cross sell.
7. strict documentation.
8. complexity of banking procedures like:
a) In case of mutual funds investment scheme PAN card is
mandatory and some customer are not having PAN card.
b) Icase of credit carss there is a centralized eligibility criterion
for all the customers.
Also in case of credit card , the customer have been segmented
on the based of their profession.e.g: transporters, lawyers,
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defence personnel and person in legal and political am bit are
not eligible for credit cards.
9. mardet is at risk now a days ,so not everyone is willing to invest
money in mutual funds investment scheme.
10.It is very difficult to open saving MAX a/c becoz in saving MAX a/c
customer is required to maintain a balance of rupees 25000 and that’s
not possible for the middle class people which comprises maximum
percentage of our population and who saves just 10 and 20 % of their
income ……
SUGGESTIONS
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• Bank should also adopt latest trends for advertising of their products
• Banks officials should inprovedtheir work behavior and they should
maintain sound relation with their customers.
DECLARATION
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resemblance with any of the studies/ works undertaken by
anyone.
QUESTIONARRIE:
Name:-
Age:-
Designation;-
Annual income:-
Gender: - male/female
Contact no.:-……………………(mob)
…………………….(resi)
……………………..(off)
1. Are you aware of all the products or scheme offered of the bank?
a) Yes
b) No
a) Good
b) Ok
c) no comments
a) its image
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b) its service
c) products
a) Yes
b) No
c) To some extend
5. How do you get to know about the various products of the banks?
a) Advertisement
b) sales agents
c) personal banker
f) Insurances yes/no
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g) Mutual funds yes/no
h) Loans yes/no
f) Insurance yes/no
h) Loans yes/no
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e) Credit card a/c yes/no
f) Insurance yes/no
h) Loans yes/no
9. Which of the following banks are you interested in?
the banks?
a) Yes
b) No
Like to go in for?
a) Phone banking
b) ATM
c) Net banking
d) Mobile banking
e) Bill payment
f) None of these
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g) All of these
a) By personal banker
b) By sales person
c) By references
d) Can’t say
a) Yes
b) No
14. Which product of the banks would you rate the best?
a) Saving a/c
b) Fixed deposits
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c) Current a/c
d) De-mat a/c
f) Insurance
g) Mutual finds
h) Loans
15. How do you get to know about the various products of the banks?
a) Though add
c) Personal banker
D) Sales
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BIBLIOGRAPHY
• www.bnknetindia/com/banking/finance
• http://en.wikipedia.org/wiki/bankingfinancialcompany
• www.hdfcbank.com
• www.hdfcbank/products/finance
• www.google.com
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