A

PROJECT REPORT
On
“FINANCIAL SERVICE OFFERED HDFC.”

Submitted towards Partial Fulfillment of

BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO C.C.S. UNIVERSITY, MEERUT)
(2020-2023)

UNDER THE GUIDANCE OF

Submitted to: Submitted By:

Mr. ATUL CHAUDHARY SHASHANK JAIN
Faculty of Management Roll No. 200986105084
BBA- V SEM

DEWAN INSTITUTE OF MANAGEMENT

STUDIES, MEERUT

1
 STUDENT DECLARATION

I am SHASHANK JAIN student of B.B.A. – V Sem, DIMS, Meerut here by declares

that the project report titled “FINANCIAL SERVICE OFFERED HDFC.” is

completed and submitted under the guidance of “Mr. ATUL CHAUDHARY Faculty

of BBA Department DIMS, Meerut” is my original work.

The imperial finding in this report is based on the data collected by me. This project has

been submitted to CCS, University , Meerut or not any other university for the purpose

of compliance of any requirement of any examination or degree.

SHASHANK JAIN

Roll No. 200986105084

BBA- V SEM

2
 ACKNOWLEDGEMENT

I take this as an opportunity to thank with bottom of my hear all those without whom the

journey of doing my project would not have been as pleasant as it has been to me.

Working on my project was a constant learning experience with all sweat and tear which

was its due but not without being richly stimulating experience of life time.

I am very thankful to Dr. Geetika Shukla, H.O.D of BBA Department DIMS, Meerut

& Mr. ATUL CHAUDHARY Faculty of BBA Department DIMS, Meerut for giving

me their valuable advice and guidance towards fulfillment of the project

For any project to be a success, it is very important to get the right guidance and support

which I I want to express my deep gratitude to our institution DIMS Meerut , for giving

me the opportunity to undertake this project and enhance my knowledge.

Finally I would like to convey my heartiest thanks to all my well wishers for their

blessing and co-operation throughout my study. They boosted me up every day to work

with a new and high spirit.

SHASHANK JAIN

3
 TABLE OF CONTENTS

1) INTRODUCTION (5-8)

2) COMPANY PROFILE (9-16)

(3) PRODUCT RANGE (17-40)

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED ACCOUNT

 DEMAT ACCOUNT

SAFE DEPOSIT LOCKER‟S

(5) OBJECTIVE OF THE RESEARCH (51-52)

(6) RESEARCH METHODOLOGY (53-54)

(7) SOURCE OF INFORMATION (55-64)

(8) SERVICES STRATEGY OF THE HDFC BANK (65-68)

(9) DATA ANALYSIS (69-80)

(10) FINDINGS (81-84)

(11) SUGGESTIONS AND RECOMMENDATIONS (85-88)

(12) SWOT ANALYSIS (89-90)

(13) BIBLIOGRAPHY (91-92)

(14) QUESTIONNAIRE (93-97)

4
INTRODUCTION

5
 INTRODUCTION

OVERVIEW OF BANK SYSTEM IN INDIA

The Bank Systemis an integral sub-system of the financial system. It represents an

important channel of collecting small saving from the household and leading it to the

corporate sector.

The Indian Bank Systemhas the Reserve Bank of Indian (RBI) as the apex body for all

matters relating to the banking system. It is the "central bank " of India. It is the banker to

all other banks.

FUNCTION S OF RBI.

1. Currently issuing authority.

2. Banker to the Government.

3. Banker to other banks.

4. Framing of Monetary Policy.

5. Exchange control

6. Custodian to Foreign Exchange and Gold Reserves

7. Developmental activities

8. Research and Developing in the banking sector.

Following is the classification of banks:

 NON SCHEDULED BANKS:

These are banks which are not included in the second schedule of the banking

Regulation Act, 1965. It means they do not satisfy the conditions lay down by that

schedule. They are further classified as follows:

1. Central Co-operative Banks and Primary Credit Societies.

6
2. Commercial Banks.

 SCHEDULED BANKS

Scheduled Banks and banks which are included in the second schedule of the Banking

Regulation Act, 1965. According to this schedule a scheduled bank:

a. Must have paid - up capital and reserve of not less than Rs. 500,000;

b. Must also satisfy the RBI tat its affairs are not conducted in a manner detrimental

to the interest of its depositors.

Scheduled banks are sub-divided as;

1. State Co-operative Banks;

2. These are Co-operatives owned and managed by the state.

3. Commercial Banks;

4. These are business entities whose main business is accepting deposits and extending

loans. Their main objective is profit maximization and adding shareholder value.

These are further sub-divided as;

1. Indian Banks;

These banks are companies registered in India under the Companies Act. Their place of

origin is in India.

These are also sub-divided as;

1. State Bank of India and its Subsidiaries.

2. This group comprises of the state Bank of India (SBI) and kits seven subsidiaries viz.

State Bank of Patiala, State Bank Hyderabad, State Bank of Travancore, State Bank

of Bikaner and Jaipur, State Bank of Mysore, State Bank of Saurashtra, State Bank of

Indore.

7
3. Other Nationalized Banks;

4. This group consists of private sector banks that were Nationalized the Government of

India Nationalized 14 private banks in 1969 and another 6 in the year 1980

5. Regional Rural Banks;

6. These were established by the RBI in the year1975 of Banking Commission. It was

established to operate exclusively in rural areas to provides credit and other facilities

to small and marginal farmer, agricultural laborers, artisans and small entrepreneurs.

7. Old Private Sector Banks.

8. This group consists of banks that were established by the privy states, community

organisations or by a group of professionals for the cause of economic betterment in

their area of operations. Initially their operations were concentrated in a few regional

areas. However, their spread through the nation as they grew.

9. New private Sector banks;

These bank were started as profit oriented companies after the RBI opened the banking

sector to the private sector. These banks are mostly technology driven and better

managed than other banks.

 Foreign Banks

These are banks that were registered outside and had originated in a foreign country.

8
COMPANY PROFILE

9
HDFC Bank Profile

HDFC Bank was incorporated in August 1994. As of September 30, 2020, the Bank had a
nationwide distribution network 5,430 branches and 15,292 ATMs in 2,848 cities/towns.
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 RBI's liberalisation 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
Promoter
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.

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 five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.

10
Capital Structure
As on 30-June-2019, the authorized share capital of the Bank is Rs. 650 crore. The paid-
up share capital of the Bank as on the said date is Rs. 546,56,24,542 /- which is
comprising of 273,28,12,271 equity shares of the face value of Rs 2/- each. The HDFC
Group holds 21.31% of the Bank's equity and about 18.81% 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). 31.37% of the equity is held by Foreign
Institutional Investors (FIIs) and the Bank has 6,53,843 shareholders.

The shares are listed on the BSE 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.

Amalgamation of Times Bank & CBoP with HDFC Bank

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.

The amalgamation added significant value to HDFC Bank in terms of increased branch
network, geographic reach, and customer base, and a bigger pool of skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of
two private banks in the New Generation Private Sector Banks. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank.

11
Distribution Network
HDFC Bank is headquartered in Mumbai. As of September 30, 2020, the Bank's
distribution network was at 5,430 branches across 2,848 cities. All branches are linked
online on a 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 centers, 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. The
Bank also has a network of 15,292 ATMs across India. 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
HDFC Bank's Board of Directors comprises eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC Ltd. are also on the Board.

Various businesses and functions in the Bank are headed by senior executives with work
experience in India and abroad. They report to the Managing Director. The Bank is
focussed on recruiting and retaining the best talent in the industry as it believes that its
people are a 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

12
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.

Businesses
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

The Bank‟s target market is primarily large, blue-chip manufacturing companies in the
Indian corporate sector and to a lesser extent, 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.

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

13
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.

Retail Banking

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, NetBanking 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.

14
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It has a base of 104,154 permanent
employees as of 30 June 2019.[10] HDFC Bank is India‟s largest private
sector bank by assets.[11] It is the largest bank in India by market
capitalisation as of March 2020.[12]

History

A subsidiary of the Housing Development Finance Corporation, HDFC Bank was

incorporated in 1994, with its registered office in Mumbai, Maharashtra, India. Its first
corporate office and a full-service branch at Sandoz House, Worli were inaugurated by
the then Union Finance Minister, Manmohan Singh.

As of 30 June 2019, the Bank's distribution network was at 5,500 branches across 2,764
cities. The bank also installed 430,000 POS terminals and issued 23,570,000 debit cards
and 12 million credit cards in FY 2017.[13]

Products and services

HDFC Bank provides a number of products and services including wholesale

banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans
against property, consumer durable loan, lifestyle loan and credit cards. Along with this
various digital products are Payzapp and SmartBUY.[14]

Mergers and acquisitions

HDFC Bank merged with Times Bank in February 2000. This was the first merger of two
private banks in the New Generation private sector banks category.[15] Times Bank was
established by Bennett, Coleman and Co. Ltd., commonly known as The Times Group,
India's largest media conglomerate.[16]

In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank. HDFC Bank's
board approved the acquisition of CBoP for ₹95.1 billion in one of the largest mergers in
the financial sector in India.[17]

Investments

15
A HDFC Bank branch in Hyderabad

In March 2020, HDFC (parent company of HDFC BANK) made an investment of

₹1,000 crores in Yes bank.[18] As per the scheme of reconstruction of Yes Bank, 75% of
the total investment by the corporation would be locked in for three years. On 14 March,
Yes Bank allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10
per share (including ₹8 premium) to the Corporation aggregating to 7.97 percent of the
post issue equity share capital of Yes bank.[19]

Listings and shareholding

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and
the National Stock Exchange of India. Its American depositary receipts are listed on
the NYSE and its global depository receipts (GDRs) are listed on the Luxembourg Stock
Exchange where two GDRs represent one equity share in HDFC Bank.[20]

Shareholders (as of 31 December 2015) Shareholding[20]

Promoter group (HDFC) 26.14%

Foreign institutional investors (FII) 20.4%

Individual shareholders 8.5%

Bodies corporate 7.5%

Insurance companies 5.38%

Unit Trust of India 8.65%

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NRI/OCB/others 0.29%

Financial institutions/banks 2.75%

ADS/GDRs 18.78%

Corporate social responsibility[edit]

This section needs

expansion. You can help
by adding to
it. (December 2020)

HDFC Bank's Parivartan initiative spent ₹535 crore in FY19-20

Controversies

On 2 December 2020, the Reserve Bank of India ordered HDFC Bank to temporarily halt
the issuance of new credit cards and all planned activities under the bank's Digital 2.0
program citing incidents of outages in the bank's internet banking, mobile banking and
payment utility services.

On 29 January 2020, Reserve Bank of India imposed a monetary penalty on HDFC Bank
for failure to undertake on-going due diligence in case of 39 current accounts opened for
bidding in the initial public offer.[24]

A HDFC bank manager was arrested for a ₹59.41 lakh fraud in Odisha

Altico Capital and Dubai's Mashreq Bank have approached the Reserve Bank of India,
accusing HDFC Bank of violating regulatory provisions by debiting part of the funds the
company had raised through external commercial borrowing (ECB) and parked at the
bank. They claimed that HDFC bank's decision to transfer money from the account may
be a violation of the RBI's end-use rule.[26]

17
Awards and recognition

2020

 India's Best Bank : Euromoney Awards[27]

2019

 Best Bank: New Private Sector – FE Best Bank awards[28]

 Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th
Inclusive Finance India Awards (IFI) 2019[29]
 Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank
was featured for the 6th consecutive year.[30]
 Among The Most Honored Company List, Institutional Investor All-Asia (ex-
Japan) Executive Team 2019 survey[31]
 India’s Best Bank, Euromoney Awards for Excellence 2019[32]
 Bank of the Year and Best Large Bank, Business Today – Money Today Financial
Awards 2019[33]
 Best Bank in India 2019, by Global magazine FinanceAsia.[34]
 Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands[35] HDFC
Bank was featured BrandZ Top 100 Most Valuable Global Brands 2019 for the
5th consecutive year. The Bank's brand value has gone up from $20.87 billion in
2018 to $22.70 billion in 2019.
 Best Large Bank & Fastest Growing Large Bank in 2019, by Business World
Magna Awards[36]

2016

 Best Banking Performer, India in 2016 by Global Brands Magazine Award.[37]

 Best Performing Branch in Microfinance among private sector banks by
NABARD, 2016, Award for Best Performance in Microfinance[38]
 KPMG study of India's Best Banks, Bank of the year & best digital banking
initiative award 2016[39]

18
  BrandZ Rankings, Most Valued brand in India for third successive year[40]
 FinanceAsia poll on Asia's Best Companies 2015, Best managed public company
– India[41]
 J. P. Morgan Quality Recognition Award, Best in class straight through
processing rates[42]

HDFC Bank was incorporated in Aug. 1994 and promoted by Housing Development
Finance Corporation Limited (HDFC) India's premier housing finance company which
also enjoys an impeccable track record in India as well as in international markets. 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. HDFC Bank concentrates in four areas - corporate banking,
treasury management, custodial services and retail banking. It has entered the banking
consortia of over 50 corporates for providing working capital finance, trade services,
corporate finance and merchant banking. It is also providing sophisticated product
structures, sound advice and fine pricing mainly in areas of foreign exchange and
derivatives, money markets and debt trading and equity research through its state-of-the-
art dealing room. With its sophisticated and customer friendly facilities & services
including multi-branch access, ATMs & cluster deposits and is well positioned to
establish a significant niche for itself in retail banking.

In Feb. 2000, Times Bank has been amalgamated with the bank. This is an important
milestone in the history of bank as well as Indian banking sector, being the first merger of
two private sector banks. This adds Significant value to bank in terms of increased
branch network, expanded geographic reach, enhanced customer base, skilled manpower,
etc. Recently HDFC BK & Life Insurance Corporation (LIC) forms alliance for online
facility for payment of insurance premium. With this facility, LIC policy holders can now
pay their insurance premiums through HDFC Bank's on-line payment facility. HDFC
BANK has become the first private sector bank to be authorized by the Central Board of
Direct Taxes (CBDT) as well as the RBI to accept direct taxes, commencing April 01
2001. The taxes will be accepted at specified branches of the bank. Also it has announced

19
a strategic tie-up with a Bangalore-based business solutions software developer Tally
Solutions Pvt (TSPL) for developing and offering products and services facilitating on-
line accounting and banking services to SMEs (Small and Medium Enterprises).In 2001-
02 the bank was listed on the New York Stock Exchange in the form of ADS. Each ADS
represents 3 equity shares. Consequent to the issue, the paid up capital of the Bank has
increased by Rs.37.42 crores. The Bank was selected for The Economic Times Award -
Corporate Excellence for Emerging Company. The Bank has continued to receive awards
and gain recognition from various leading domestic and international publications during
2002-03.The bank was selected as "Best Bank in India 2002" by Euromoney,"Best Local
Bank in India 2002" by Finance Asia, both

Awards being received for the fourth year in succession. The bank was also rated as the
"Best Domestic Commercial Bank 2002" by Asia money. The bank was selected from
amongst over 400 nominations from 24 countries, to be a recipient of the Computerworld
Honors 2002 award in the Finance, Insurance and Real Estate category for its use of
Information Technology. During 2002-03, the bank has allotted 670000 of Equity Shares
to its employees under ESOP. Consequent to this allotment, bank's Paid up Equity has
been increased from Rs.281.37 crores to Rs.282.05 crores.

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.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The bank commenced operations as a Scheduled
Commercial Bank in January 1995.
The HDFC Bank was incorporated on August 1994 by 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. The Housing Development Finance
Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the

20
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.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 1416 branches spread over 550 cities across India. All branches are linked on an
online real–time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank also has a network of about over 3382 networked ATMs
across these cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing
finance company and enjoys an impeccable track record in India as well as in
international markets. 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, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was ideally
positioned to promote a bank in the Indian environment.
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.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.
The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity
would be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC
Bank in terms of increased branch network, geographic reach, and customer base, and a
bigger pool of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of
two private banks in the New Generation Private Sector Banks. As per the scheme of

21
 amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank.
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
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.
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.
Treasury – Within this business, the bank has three main product areas – Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. The Treasury business is responsible for managing the returns and market risk
on this investment portfolio.
HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.
Services offered by the company:
Personal Banking
 Accounts & Deposits
 Loans
 Cards
 Forex
 Investments & Insurance
NRI Banking
 Accounts & Deposits
 Remittances
 Investments & Insurance Loans Payment Services
Wholesale Banking
 Corporate
 Small & Medium Enterprises

22
 Financial Institutions & Trusts
 Government Sector
Achievements/ recognition:–
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.
2013
IBA Banking Technology Awards 2012–13 – Best Technology Bank of the year –
Winner
– Best Internet Bank – Winner
– Best Customer Management Initiative – Winner
– Best use of Mobility Technology in Banking

Business Standard Mr Aditya Puri – Banker of the Year 2013

Business Today–KPMG Best Banks Survey 2013 Best Bank 2013
Business India Best Bank 2013
Global Finance Survey –World's Best Banks 2013 Best Bank in India
Outlook Money Awards 2013 Best Bank in Large Banks Category

IBA Innovation Awards Most Innovative use of Technology

Dun & Bradstreet Polaris Financial Technology Banking Award 2013 – Best Private
Sector Bank Technology Adoption
– Best Private Sector Bank Retail
– Overall Best Private Sector Bank

Institutional Investor – Best Bank in Asia

– Mr. Aditya Puri – Best CEO

Forbes Asia Fab 50 Companies List for the 7th year

23
 Sunday Standard Best Banker Awards – Best Private Sector Bank: Large
– Safest Bank: Large
– Mr. Aditya Puri: Top Achiever

UTI Mutual Fund CNBC TV 18 Financial Advisory Awards 2012 Best Performing
Bank – Private

Asia Money 2013 – Best Domestic Bank in

India
– Mr. Aditya Puri: Best
Executive in India

MACCIA Awards 2013 Best in Financial Services: Bank Category

Dun & Bradstreet Corporate Awards 2012 Best in Banking sector

NDTV Profit Business Leadership Awards 2012 Winner in the
banking category
NASSCOM CNBC–TV18 IT Innovation Award Best IT Driven
Innovation in Banking (COMMERCIAL)
The National Quality Excellence Awards Best Customer Service
Result
FE Best Bank Awards – Best Bank: New Private
sector
– Best in Strength & Soundness
– Mr. Aditya Puri: Best Banker
Skoch Financial Inclusion Awards 2013 Organisation of the Year
2011
 Financial Express Best Bank Survey 2010–11 – Best in Strength and Soundness
and 2nd Best in the Private Sector
 CNBC TV18's Best Bank & Financial Institution Awards – Best Bank and Mr.
Aditya Puri, for outstanding finance professional

24
 Dun & Bradstreet Banking Awards 2011 – Best private sector bank – SME
Financing
 ISACA 2011 award for IT Governance – Best practices in IT Governance and IT
Security
 IBA Productivity Excellence Awards 2011 – New Channel Adopter (Private
Sector)
 DSCI (Data Security Council of India) Excellence Awards 2011 – Security in
bank
 FINANCE ASIA Country Awards 2011: India – Best bank, best cash
management bank and best trade finance bank
 Asian Banker – Strongest bank in Asia Pacific
 Bloomberg UTV's Financial Leadership Awards 2011 – Best bank
 IBA Banking Technology Awards 2010 – Technology bank of the year, best
online bank, best customer initiative, best use of business intelligence, best risk
management system and runners up – best financial inclusion
 IDC FIIA Awards 2011 – Excellence in customer experience
2010
 Outlook Money 2010 Awards – Best Bank
 Businessworld Best Bank Awards 2010 – Best Bank (Large)
 Teacher's Achievement Awards 2010 (Business) – Mr. Aditya Puri
 The Banker and PWM 2010 Global Private Banking Awards – Best Private Bank
in India
 Economic Times Awards for Corporate Excellence 2010 – Business Leader of the
Year – Mr. Aditya Puri
 Forbes Asia – Fab 50 Companies – 5th year in a row
 NDTV Business Leadership Awards 2010 – Best private sector bank
 The Banker Magazine – World's Top 1,000 Banks
 MIS Asia IT Excellence Award 2010 – BEST BOTTOM–LINE I.T. Category
 Dun & Bradstreet Banking Awards 2010 – Overall best bank, Best private sector
bank, Best private sector bank in SME Financing

25
 Institutional Investor Magazine Poll – HDFC Bank MD, Mr. Aditya Puri among
„Asian Captains of Finance 2010‟
 IDRBT Technology 2009 Awards – IT Infrastructure, Use of IT within the Bank
and Runners–up – IT Governance (Large Banks)
 ACI Excellence Awards 2010 – Highly Commended – Asia Pacific HDFC Bank
 FE–EVI Green Business Leadership Award – Best performer in the banking
category
 Celent's 2010 Banking Innovation Award – Model bank Award
 Avaya Global Connect 2010 – Customer Responsiveness Award – Banking &
Financial Services category
 Forbes Top 2000 Companies – HDFC Bank at 632nd position and among 130
global high performers
 Financial Express – Ernst & Young Survey 2009–10 – Best new private sector
bank, Best in growth and Best in strength
 Asian Banker Excellence Awards 2010 – Best retail bank in India, Excellence in
automobile lending, Best M&A integration and technology implementation
 The Asset Triple A Awards – Best cash management bank in India
 Euromoney Private Banking and Wealth Management Poll 2010 – Best local bank
in India (second year in a row), Best private banking services overall (moved up from
No. 2 last year)
 Financial Insights Innovation Awards 2010 – Innovation in branch operations –
server consolidation project
 Global Finance Award – Best trade finance provider in India for 2010
 2 Banking Technology Awards 2009 – Best risk management initiative and Best
use of business intelligence
 SPJIMR Marketing Impact Awards (SMIA) 2010
 Business Today Best Employer Survey – Listed in top 10 best employers in the
country
2009
 Business Standard Best Banker Award – Mr. Aditya Puri, MD, HDFC Bank

26
 Fe Best Bank Awards 2009 – Best Innovator of the year award for its MD Mr.
Aditya Puri – Second Best Private Bank in India – Best in Strength and Soundness
Award
 Euromoney Awards 2009 – 'Best Bank in India'
 Economic Times Brand Equity & Nielsen Research annual survey 2009 – Most
Trusted Brand – Runner Up
 Asia Money 2009 Awards – 'Best Domestic Bank in India'
 IBA Banking Technology Awards 2009 – 'Best IT Governance Award – Runner
up'
 Global Finance Award – 'Best Trade Finance Bank in India for 2009
 IDRBT Banking Technology Excellence Award 2008 – 'Best IT Governance and
Value Delivery'
 Asian Banker Excellence in Retail Financial Services – 'Asian Banker Best Retail
Bank in India Award 2009 '
2008
 Finance Asia Country Awards for Achievement 2008 – 'Best Bank and Best Cash
Management Bank'
 CNN–IBN – 'Indian of the Year (Business)'
 Nasscom IT User Award 2008 – 'Best IT Adoption in the Banking Sector'
 Business India – 'Best Bank 2008'
 Forbes Asia – Fab 50 companies in Asia Pacific
 Asian Banker Excellence in Retail Financial Services – Best Retail Bank 2008
 Asiamoney – Best local Cash Management Bank Award voted by Corporates
 Microsoft & Indian Express Group – Security Strategist Award 2008
 World Trade Center Award of honour – For outstanding contribution to
international trade services.
 Business Today–Monitor Group survey – One of India's 'Most Innovative
Companies'
 Financial Express–Ernst & Young Award – Best Bank Award in the Private
Sector category

27
 Global HR Excellence Awards – Asia Pacific HRM Congress: – 'Employer
Brand of the Year 2007 –2008' Award – First Runner up, & many more
 Business Today – 'Best Bank' Award
2007
 Dun & Bradstreet – American Express Corporate Best Bank Award 2007 –
'Corporate Best Bank' Award
 The Bombay Stock Exchange and Nasscom Foundation's Business for Social
Responsibility Awards 2007 – 'Best Corporate Social Responsibility Practice'
Award
 Outlook Money & NDTV Profit – Best Bank Award in the Private sector
category.
 The Asian Banker Excellence in Retail Financial Services Awards – Best Retail
Bank in India
 Asian Banker – Its Managing Director Aditya Puri wins the Leadership
Achievement Award for India

28
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 clear

market leader in mortgages and banking services in India. Its outstanding loan portfolio

covers 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, a strong

market reputation, large shareholder base and unique consumer franchise, HDFC was

ideally positioned to promote a bank in the Indian environment

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 areas: -

Wholesale Banking Services

The Bank's target market is primarily large, blue-chip manufacturing companies in the

Indian corporate sector and to a small extent, emerging mid-sized corporate. For these

corporate, the Bank provides a wide range of banking services, including working capital

finance, trade services, transactional services, cash management, etc. 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

corporate including multinationals, companies from the domestic business houses and

prime Public Sector companies. It is recognized as a leading provider of cash

29
management and transactional banking solutions to corporate customers, mutual funds,

stock exchange members and banks.

a) Retail Banking Services

The objective of the Retail Bank is to provide a full range of financial products and

banking services, giving the customer a one-stop window for all his banking

requirements. The products are backed by world class service and delivered to the

customers through various delivery channels including the branch network, as well as

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 Loans against shares, Auto Loans, Personal Loans and Loans for Consumer

Durables and Two-wheelers. It is also a leading provider of Depository Participant (DP)

services for retail customers.

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 debit card allows the user to directly debit his account at the point of purchase

at a merchant establishment, in India and overseas. The Bank launched its credit card in

association

30
With VISA in November 2001. 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.

b) Treasury Operations

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalization of the financial markets in India, corporate 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.

31
PRODUCT RANGE

32
 PRODUCT RANGE

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED DEPOSIT

 DEMAT ACCOUNT

 SAFE DEPOSIT ACCOUNT

SALARY A/C

There are three type of product code in salary account .product code 105 is basically

employees of the regular organization, they are not provided with instant kit and those

how are provided with instant kit there product code is 154, for the premium customer the

product code is 114 and those how are provided with instant kit they have the product

code of116, product code 120 is only defense person organization/department. If product

code 120 account holders want to a debit card then they have to pay Rs.100 per annum.

Branch code for Lucknow Hazratganj Branch is 078

With HDFC Bank‟s Salary Account, costumer receives an array of rewards with their

monthly pay. All at no extra cost to customer.

Their employees get privileged services that help them achieve even more

 Direct Salary Credits – Their employee need not go to the band ,deposit their cheques

and wait for it to be cleared .Their salary is automatically credited to their accounts

 Interbranch/Intercity Banking at 142 branches and over 360 ATMs

 No minimum Balance to be maintained in the account to avail of these benefits

33
Interbranch/Intercity Banking: - Costumer can use any of HDFC BANK branches/

ATMs across 111 cities in India, no matter where their dAccount is held e.g. costumer

may open their account in Pune and can operate this account the next time costumer

travel to Bangalore or for that matter from any other city. Also no need to open a new

account when costumer gets transferred to another city where HDFC BANK has a

branch.

ATM 24-hour Banking: - Over 675 ATMs across 111 cities enable costumer to

withdraw up to Rs.15, 000 a day.

Free International Debit Card: - It‟s like an ATM Card that costumer can shop with

and make payments at 25,000 outlets in India and 10 million worldwide. Costumer can

also withdraw money from over 5.6 lakhs Maestro/visa/Plus/cirrus ATMs, in 140

countries.

HDFC BANK also waives the annual fee for one additional card per account for the first

year.

Free Demand Drafts: Customers can avail of free demand drafts up to Rs.25, 000/- per

instrument payable at any city where HDFC BANK have branches.

Free Phone Banking: - This 24- hour‟s facility enables customer to conduct a range of

banking transactions with just a call on to the no. 0522-4003333

Free net Banking: - Customer can now bank at the click of a mouse, backed by the

highest level 128-bit security.

Free Mobile Banking: - Customer can even conduct a range of banking transactions

over a mobile phone, using SMS facility or a WAP activated phone.

34
Free Personalized Cheque Book: - Their employees get personalized Cheque book with

the name of the account holder printed on the cheque leaves.

Free Payable At Par Cheque Book:- Employees of the premium organization will get

cheque books which are localized all over INDIA.

Sweep-in Account: - This facility is a fixed deposit linked to savings account. So even if

funds are short in the savings account that entire customers have to do is just issue a

Cheque. The money is automatically

Swept in from the fixed deposit into the savings account. The balance amount continues

to earn high interest rate.

Super Saver Account: - This account gives customer an overdraft facility of unto 75%

of the Fixed Deposit in times of emergency. Customer can access their funds either

through an ATM or by issuing a Cheque, while the Fixed Deposit continues to earn high

interest rate.

Free Collection of Outstation Cheques: This account entitles customer to free

collection of outstation cheques drawn on all cities where HDFC BANK have branches.

(2) How else do customer benefit from HDFC Bank’s Salary Account?

With HDFC BANK Salary Account, customer enjoys a number of privileged value

added services such as:

Direct Salary Credits: - Customer salary is automatically credited to their account. All

customer have to do is inform their payroll department of their HDFC Bank Salary

Account number.

Demat Account: Customer can enjoy paperless trading, by opening a Demat account.

Joint Account facility: - Customer can open a joint account by opening a Demat account

35
Personalized Cheque Book: Customer get a personalized cheque boom with the name

of all the account holder (S) printed on the cheque leaves.

At Par Cheque Book: Customer get at par cheque books which are treated local all over

India.

SAVING ACCOUNT

The e-Age Saving Account from HDFC Bank brings customer a comprehensive range of

products and services. Each one is designed to minimize their effort, making it much

simpler for you to do their banking. HDFC BANK now have 211 branches in 110 cities

and over 650 ATMs across the country. Add to this an international network of over 6.5

lakhs ATMs which customer can access with their international Debit Card. That‟s world

class banking for customer.

Free 24 hour ATM:- Customer can withdraw up to Rs. 10,000 per day from any of

HDFC BANK extensive network of over 650 ATMs across 110 cities all over the

country. Customer can also deposit cash/cheques, get an account balance, request for a

cheque book and transfer funds, all at the push of a few buttons. This amazing facility is

available 24 hours a day 365 days a year.

Rs. 15,000 per day with their Debit Card.

Free Net Banking: - HDFC BANK convenient Net banking facility will open up a

whole amount of services for customer at just the click of a mouse. Customer can:

 Check their upto the minute account balance etc.

 Open a Fixed Deposit.

 Get a Demand Draft

 Make a TDS inquiry

36
 Request a stop payment on a cheque

 Request for a new cheque boom

 Transfer funds within their own accounts
 Carry out third party transfer of funds

International Debit Card: The HDFC Bank international Debit Card lets customer

shop and also withdraws money from HDFC BANK ATM network. With HDFC

BANK‟S international Debit Card, customer can shop at 18,000 establishments in India

and over 100 Lakhs establishments in 140 countries. Customer can also withdraw cash

from over 1600 VISA/Plus ATMs in India and 605 Lakhs ATMs in 140 countries. The

amount customer spend on their card will be automatically debited from their Savings

Account. So when customer go shopping customer don‟t have to carry cash!

Interbranch/intercity Banking:- Customer can access their account from any of

the 211 branches in 110 cities and over 650 ATMs across the country. So customer can

withdraw cash from another branch, through a self-cheque or an ATM. Customer could

also transfer funds between two accounts, or deposit a local cheque in one branch and get

is credited to their account in another city.

NOTE: - On receiving Costumer instruction to pay their bill, the bill amount will be

deducted form customer account.

Free Phone Banking: - HDFC Bank‟s 24 hour Phone Banking service lets customer

conduct a wide range of banking transactions from the comfort or their home of office.

Phone No. 0522-4003333

Customer can:-

37
  Get their account details

 Ask for a cheque book or a statement

 Open a Fixed Deposit

 Transfer money within their own accounts

 Order a Demand Draft

 Stop cheque payment, etc.

Now customer can do all their banking activities through the phone.

All this for an average quarterly balance of just Rs. 5000.

CURRENT ACCOUNT

At HDFC Bank, HDFC BANK understand that running a business requires time and

money, also that their business needs are constantly evolving. That‟s where HDFC

BANK comes in. HDFC BANK provides customer with a choice of Current Account

options to exclusively suit their business whatever the size scope.

Take Costumer pick!

Customer can choose the Current Account that works best for their specific business

needs.

1. Regular Current Account

The regular Current Account requires an average quarterly balance of Rs.10, 000 only.

Besides the free ATM card and easy accessibility, their first 50 cheque leaves are offered

free.

2. Premium Current Account

38
Their account can be operated from any of the branches for depositing of withdrawing

money. A Premium Current Account requires an average balance of only Rs. 25.000 per

quarter. Moreover, for premium Current Account holders cheque leaves are free.

Free Services offered to Regular and premium current Account holders:

 One ATM card per account (only for individuals/Sole Proprietorships).

 Replacement in case of damaged cards.

 Monthly statement.

 Online, real-time Net Banking.

 24 hours Phone Banking access (please check for availability in their city,).

3. HDFC Bank Trade

It is a Current Account ideal for small funds transfer across various cities in the country.

Trade Account is suitable for small businessmen and traders.

Features offered to HDFC Bank Trade Account holders:-

 At par payable cheques.

 Free inter-city Funds Transfers up to Rs. 25 lacs.

 Free Pay Orders

 Free Demand Drafts Payable on HDFC Bank locations upto 30 per quarter. (Check

with branch for value limits).

ATM card for individuals/Sole Proprietorships. Free online, real time Net Banking.

24-hour Phone Banking access (please check for availability in their city).

A Trade Current Account requires an average quarterly balance of only Rs. 40,000.

39
4. HDFC Bank Plus

Single Account, Multi-city Banking

If their business regularly requires customer to receive and send funds to various cities in

the country, HDFC Bank Plus provides customer with the means to facilitate such

transactions efficiently.

With just one account, customer have access to more that 111 cities in the country. In

other words, the power of a single account and multi-city banking. This results in huge

savings on inter-city movement of funds and other service charges.

Furthermore, HDFC BANK strategic alliance with Chase Manhattan Bank gives

customer the advantage of competitive rats for trade finance

And faster inward/outward remittances. The average balance requirement for the HDFC

Bank Plus account is Rs. 100,000 per quarter.

FIXED DEPOSIT

Super save account

(A temporary overdraft against their fixed Deposit)

Would not it be great to earn a high interest on their Fixed Deposit and at the same time

enjoy the liquidity associated with a Saving account/ Get their self the HDFC Bank

Super Save Account and that‟s exactly what customer will have.

How do I benefit from the Super Save Account?

Maximum Liquidity

Their Super Saver Account allows customer to issue cheques and use and ATM card for

withdrawals, just like Savings Account. Customer can access their account from any of

HDFC BANK 211 branches or over 650 ATMs spread across India. Even in an

40
emergency, customer need not break their fixed Deposit to withdraw money. So customer

get their money whenever customer need it.

Easy operation

Customer can open a supersaver Account with nominal sum of just Rs. 25,000 and enjoy

a temporary withdrawal limit of upto 75% of their deposit Even after customer withdraw

a part of their limit; their entire deposit continues to earn a high rate of interest, i.e. their

deposit in not broken. Customer are required to pay an overdraft interest that is 2% more

than the interest earned by their Fixed Deposit for the amount of overdraft, and only for

the period for which customer use the money. Besides, customer can take an overdraft by

simply using a cheque of through an ATM. Isn‟t that great?

 For overdraft limits greater than Rs. 2 Lakhs, overdraft interest will be charged at

the Bank‟s Prime Lending Rate (PLR).

High yield

Customer can choose any account plan between 6 months and 5 years for their Super

Saver Account. HDFC BANK personal Bankers will give customer expert advice on the

best possible account plan yielding the most attractive interest, depending on their needs.

Better Returns that a Savings Account

Even if customer withdraw unto 70% of their Supersaver Account on day one and do not

put it back for a year, customer still earn more than customer would through a Saving

Account. Incredible isn‟t it?

For example, let us assume that the interest on a 3-year deposit is 10% p.a. and customers

have a Fixed Deposit of Rs. 50,000 with the bank. If customer withdraw Rs.10, 000 from

their Super Saver Account, their earnings in a year will be:

41
Customers earn Rs. 5000@ 10% p.a.on Rs.50, 000.

Customers are charged Rs. 1,200@ 12% for the year.

Therefore, the net interest customer earn is Rs. 3, 8000

Thus, customer earns Rs. 3,800 on a balance of Rs. 40,000 in their Super Saver Account.

On the other hand, customer would earn only Rs. 1,600 (@ 4% p.a.) with the same

balance in an ordinary Savings Account. A comparison of interest earned in a year from a

Rs. 50,000 Super Saver Account (3year plan) and a Savings Account, at different levels

of withdrawal, is shown below:

Amount Interest earned in 1Year

withdrawn on day Super Saver Savings account @ Net Gain (Rs.)

one (Rs) Account @ 10% 4% p.a. (Rs.)

P.A. (Rs.)

0 5000 2000 3000

10000 3800 1600 2200

20000 2600 1200 1400

25000 2000 1000 1000

30000 1400 800 600

35000 800 600 200

In fact, the higher the balance in their Super Saver Account, the higher their returns.

Moreover, the shorter the period for which customer use the money, the higher their

earnings.

42
Free ATM Card

With every Super saver Account customer get a free ATM Card. This allows customer to

enjoy 24 hour banking 365 days a year, including Sundays sand bank holidays. Their

convenience is all the matters.

 Available in select cities only

Personalized Cheque Book

Customer also gets a cheque book with every Super Saver Account, with their name

printed on it.

Overdraft on Current Account against their fixed Deposits

Customer can also get an overdraft on their Current Account against their own fixed

Deposits with the bank. Please contact their Personal Banker for details on

documentation required.

43
SWEEP IN ACCOUNT

(A Flexible Fixed Deposit cum Savings Account)

Imagine having an account that changes to suit their needs. When customer want their

money to earn high interest it worked like a Fixed Deposit, when customer want to

withdrew money in a hurry, it works like a savings Account. Customers win both ways

So what is a Sweep-in Account?

It is a Fixed Deposit that comes automatically linked to a savings Account. So whenever

customers‟ are short of funds in their Saving account and their money is “blocked” in a

fixed Deposit, customer just have to issue a cheque (or use the ATM.) their money

automatically gets transferred, i.e. swept-in from their fixed Deposit into their Saving

Account. It‟s as easy as it sounds. To open a sweep in Account, all customer need is to

open a Fixed Deposit as per the norms of the bank and a Savings Account with no

minimum balance requirement.

Customer need to maintain a minimum fixed Deposit of Rs, 50.000 at all times to avoid

service charges. In case of non maintenance of Rs.50.000 in fixed deposits, customer

savings Account will be subject to service charges as applicable. The saving account

needs to be opened with an initial amount of Rs.5000.

How does it work?

Since the Sweep in Account holds their money in a Fixed Deposit in units of Re.1 every

time money is swept from their fixed deposit to their Savings account, interest loss in

minimized. Further, the amount swept in earns interest for the tenure that it has

44
completed without any penalty. The rest of their deposit continues to earn the original

interest rate till maturity.

There‟s more! Customer can, if customer like always open an add on deposit for just Rs.

5,000. Further, customer link as many deposits as customer like to their Savings account.

And the Sweep in automatically chooses the oldest deposit first before sweeping money

into their Savings Account.

Enjoy the benefits of a truly flexible fixed Deposit. Just open a Sweep in Account. The

Savings accounts comes with it.

Call us and HDFC BANK representative will come over to their home of office and open

an account for customer. Well take care of details and formalities including their

photograph.

DEMAT ACCOUNT
Now customer can avoid mutilation, duplication and pilferage of share certificates. Open

a Demat Account with HDFC Bank and protect their securities from damage. loss and

theft. And remember, HDFC Bank is the largest depository participant amongst all banks.

Why do I need Demat Account?

With SEBI making trading mandatory in the Demat form and the advent of Rolling

Settlements it is imperative that all investors have a Demat Account with a depository

participant. When customer place a buy order, a seller can deliver the securities in Demat

form, which can only be credited to a Demat Account.

What benefits do I get from an HDFC Bank Demat Account

45
 No Account Opening Charges.

 Nominal Annual Maintenance Charges.

 Competitive fees for transactions.

 Demat Account Status on the internet.

 Option to open a Demat Account with NSDL, CDSL or both.

 Personalized instruction Book.

What other benefits do I get?

 Paperless trading which will help prevent mutilation. Loss and misplacement of

certificates and eliminate the problems of bad delivery.

 Safety of their securities with HDFC Bank.

 Problems of bad delivery, theft or mutilation eliminated.

 Zero stamp duty.

 Faster settlements of buy and sell orders, direct credit of allotment from public/

rights/bonus issues.

How do I open an HDFC Bank Demat Account?

 Fill up the application form and the Agreement and get it singed by all the applicant.

 Attach one photograph of each applicant.

 Provide proof of identity/Residence (copy of ration card/ driving license/voters

ID/passport or PAN

 card). Please bring the original to the bank along with a photocopy.

 Annual charges of Demat account Rs.499 per annum

46
Once their Demat account is active, customer will receive periodic account statements

from HDFC Bank. HDFC bank‟s Demat Account is

also accessible on the internet, allowing customer to check balances, transaction status,

Demat status etc. online.

SAFE DEPOSIT LOCKERS

Safeguard their valuables with HDFC Bank lockers.

Their jewellery, share certificates and important documents are far too important for

customer to risk keeping them at home. As an HDFC Bank customer, HDFC BANK

offer customer a safe and secure place to guard their valuables from theft, fire or any

unforeseen circumstances.

Various locker Sizes: HDFC BANK lockers are available in various convenient

sizes. Customer can choose the locker of their choice depending on customer

requirement.

Complete privacy: The spacious design and special mobile screens of HDFC BANK

locker rooms provide complete Privacy. Besides, HDFC BANK allow usage of only one

locker per row, at a time.

Water – Proof Fire Proof and Secure: the lockers are housed in a special area

of the branch which is secured by strong room doors and tamper-proof locks. Besides,

the walls of HDFC BANK locker rooms are specially treated to protect them from water

seepage and fire.

47
Convenient hours of operations: Their can operate the lockers during the branch

timings, and even on Sundays at select braches.

How to get a locker at HDFC Bank?

When customer open an account with us customer can ask about HDFC BANK locker

facilities.

Rating

HDFC Bank's programme for Certificates of Deposits has been rated by the Indian rating

agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is the

highest rating for short term instruments indicating superior capacity for

repayment.

Business Focus

HDFC Bank's mission is to be a World Class Indian Bank. The Bank's aim is to build a

sound customer franchise across distinct businesses so as to be the preferred provider of

banking services in the niche segments that the bank operates in and to achieve healthy

growth in profitability, consistent with the bank's risk appetite. The bank aims to ensure

the highest level of ethical standards, professional integrity and regulatory compliance.

HDFC Bank's business philosophy is based on four core values: Operational Excellence,

Customer Focus, Product Leadership and People. The Bank signed a strategic business

collaboration agreement with Chase Manhattan Bank in February 1999.

48
Capital Structure

The authorized capital of HDFC Bank is Rs.450 crores. The paid-up capital is Rs.281.2

crores. The HDFC Group holds 24.5% of the bank's equity while about 13.3% of the

equity is held by the depository in respect of the bank's issue of American Depository

Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and

Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P Morgan

Partners, formerly Chase Capital Partners) together hold about 11.6% of the bank's

equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance is

widely held by about 300,000 shareholders. The shares are listed on the The Stock

Exchange, Mumbai and the National Stock Exchange. The bank's American Depository

Shares are listed on the New York Stock Exchange under the symbol "HDB".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was

merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of India,

shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of

Times Bank. The amalgamation added significant value to HDFC Bank in terms of

increased branch network, expanded geographic reach, enhanced customer base, skilled

manpower and the opportunity to cross-sell and leverage alternative delivery channels.

49
Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network

of over branches spread over cities all across the country. All branches are linked on an

online real-time basis. Customers in 39 locations are also serviced through Phone

Banking. The Bank's expansion plans take into account the need to have a presence in all

major industrial and commercial centers where its corporate customers are located as well

as the need to build a strong retail customer base. Being a clearing/settlement bank to

various leading stock exchanges, the Bank has branches in the centers where the

NSE/BSE has a strong and active member base.

The Bank also has a network of almost over 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. It is the only bank in India which provides access to all the 3

major International Card Networks on its ATM network.

Management

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this,

Mr.Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Adyta Puri, has been a professional banker for over 20 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 and commercial banking. Senior executives

50
representing HDFC and J P Morgan Partners (formerly Chase Capital Partners) 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 connectivity which

enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch

access is also provided to retail customers through the branch network and Automated

Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. In terms of

software the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by Finware, both from I-flex Solutions Ltd. (formerly Citicorp

Information Technology India Ltd.). The systems are open, scaleable and web-enabled.

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.

51
AWARDS AND ACCOLADES

HDFC Bank was selected as the "Best Bank - India 1999" and "Best Domestic Bank -

India 2000", "Best Bank - India 2001" by Euro money, and "Best Domestic Commercial

Bank - India 1999" and "Best Domestic Commercial Bank - India 2000", "Best Domestic

Commercial Bank - India 2001" by Finance Asia. In the October 2000 issue, Forbes

Global selected HDFC Bank amongst the top 20 in the Forbes listing of the world's best

small companies. Closer home, HDFC Bank was selected for The Economic Times

Award - Corporate Excellence for Emerging Company of the Year 2000-01 and as

Business India's Best Bank for the year 2000.

In the year 2000, leading financial magazine Forbes Global named us in its list of "The

300 Best Small Companies" in the world and as one of the "20 for 2001" best small

companies in the world.

There have been some other proud moments as well:

London-based Euro money magazine gave us the award for "Best Bank India" in 1999,

"Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002.

Hong Kong-based Finance Asia magazine rated us "Best Domestic Commercial Bank in

India" in 1999, 2000 and 2001 respectively and "Best Local Bank in India " in 2002.

Asia money magazine has named us "Best Commercial Bank in India 2002".

The Economic Times has conferred on us The Economic Times Awards for Corporate

Excellence as the Emerging Company of the Year 2000-01.

Leading Indian business magazine Business India named us "India's Best Bank” in 2000.

Another leading Indian business magazine Business Today in a survey rated us "Best

Private Sector Bank” in India in 1999.

52
For our use of information technology we have been recognized as a "Computerworld

Honors Laureate” and awarded the 21st Century Achievement Award in 2002 for

Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our

technology initiative has been included as a case study in their online global archives.

NASSCOM and economictimes.com have named us the „Best IT User in Banking‟ at the

IT Users Awards 2003.

We are aware that all these awards are mere milestones in the continuing, never-ending

journey of providing excellent service to our customers. We are confident, however, that

with your feedback and support, we will be able to maintain and improve our services.

Product Range

Savings, Fixed Deposits, Current and Demat Accounts Savings Account, Investment &

Insurance : Apart from the usual facilities, you get a free ATM Card, Interbranch

banking, Net Banking, Bill Pay, Phone Banking, Debit Card and Mobile Banking, among

others.

HDFC Bank Preferred: A preferential Savings Account where you are assigned a

dedicated Relationship Manager, who is your one-point contact. You also get privileges

like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat

Account and lower interest rates on loans, to name a few.

Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your

Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The

money is automatically swept in from your fixed deposit into your Savings Account.

53
Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit.

In an emergency, you can access your funds while your Fixed Deposit continues to earn

high interest.

HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have

HDFC Bank Plus, a Current Account and then some more.

You can transfer up to Rs. 50 lakhs per month at no extra charge, between the four

metros. You can also avail of cheque clearing between the four metros, get cash

delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques,

outstation cheque clearance facility, etc.

Demat Account: Conduct hassle-free transactions on your shares. You can also access

your Demat Account on the Internet.

Innovative services for your convenience...

Phone Banking: 24-hour automated banking services with 39 Phone Banking numbers

available. You can just call 4003333 for any type of query regarding the accounts.

ATM 24-hour banking: Apart from routine transactions, you can also pay your utility

bills and transfer funds, at any of our ATMs across the country all year round.

Intercity/Interbranch Banking: Access your account from any of our branches in cities.

Net Banking: Access your bank account from anywhere in the world, at anytime, at your

own convenience. You can also view your Demat Account through Net Banking.

International Debit Card: An ATM card you can shop with all over the country and in

over 140 countries with. You can spend in any currency, and pay in Rupees.

54
Mobile Banking: Access your account on your mobile phone screen at no airtime cost.

Use SMS technology to conduct your banking transactions from your cell phone.

Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs,

Internet, phone or mobile phone. No more standing in long queues or writing cheques.

Although this is not fully activated in Lucknow.

Loans for every need

Now, our loans** come to you in easy-to-pay monthly installments, and are available

with easy documentation and quick delivery.

Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a

computer or an exciting holiday.

New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car, new or

used! And the loans come to you with easy documentation and speedy processing at

attractive interest rates.

Loans against Shares: Get an overdraft up to Rs. 10 lakhs at an attractive interest rate

against physical shares, up to 50% of the market value of your shares. In case of Demat

Shares, you can get a Loans against Shares of up to 65% of the market value of your

shares, till Rs. 20 lakhs.

Two Wheeler & Consumer Loans: To help you buy the best durables for your home.

Investment & Insurance: Investment is provided through mutual fund.

Mutual funds are funds that pool the money of several investors to invest in equity or

debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.

Insurance in HDFC Bank has plan for every segment of life, for child there is Young star

55
Plan, for pension there is Unit Link Pension plan, HDFC Standard Life‟s Unit Link

Endowment Plan. For both mutual fund & Insurance Young Star Plan.

56
OBJECTIVE OF

THE RESEARCH

57
 OBJECTIVE OF THE RESEARCH

 To know the various financial products provided by a Bank in the current scenario

with reference to HDFC BANK Ltd. MEERUT

 To know the various facilities provided by the HDFC BANK Ltd MEERUT with an

aim to retain their customers.

 To Check Segment Wise Penetration and Use of Direct Banking Channels.

NEED OF THE STUDY

As the banking sector is the fastest growing sectors in current Business World. So it is

necessary to have In-depth Knowledge of BANK Products provided by them. And to

check Segment Wise Penetration and use of Direct Banking Channels in MEERUT.

58
 RESEARCH

METHODOLOGY

59
 RESEARCH METHODOLOGY

• A questionnaire was prepared to gauge the awareness of HDFC Bank in Retail

banking sector.

• Survey has been done in and out of the bank covering a wide cross-section of the

society.

• The question was presented in one to one interview with each of the respondents.

• Responses of the question had been thoroughly analyzed.

• Conclusions had been arrived at using the response of the questionnaire.

60
SOURCE OF INFORMATION

61
SOURCE OF INFORMATION

 Collection of data has been done through secondary sources like. Brochures,

Company profile

 Primary sources are Personal interviews, face to face contact to 140 persons

(approximate).

62
SEGMENT WISE PENETRATION AND USE OF DIRECT

BANKING CHANNELS

HDFC Bank in Lucknow has corporate tie up with various companies. Another part of

my project was to increase the Product Holding Ratio of these corporate. Product

Holding Ratio is the number of products an employee in the organization holds.

Employees of the organization are divided into various Bands like 1, 2,3,4,5. I have to

convert Band 1 customers to Band 2 or Band 2 customers to Band 3 and so on. Band 5

customers are the customers how hold maximum products and they are customers who

are most profitable customers to the bank. The most effective manner to increase the

PHR is to see that whether the customers are using Direct Banking Channel .DBC are

the products like Net banking, Phone Banking, Mobile Banking .If the customers are

using these products then they must not be coming to the bank there by the bank does

not have to spend time and man power in attending that customers. If the customers are

having direct banking channels and are using it then they are of some profit the bank.

Other than DBC there is another product which is the effective way of increasing the

PHR that is Insta Alert, which shows balance of your account on your mobile phone,

although DBC are free of cost services but for Insta Alert the customer have to pay

25 Rs quarterly if they are regular customers and for the Premium customers these are

free of cost .Seeing that the customers are using all the DBC and Insta Alert than it is to

be seen that whether customers are not requiring any other products of the Bank like

Credit Cards :-For the premium corporate credit cards are free, for rest there are some

charges that have to be paid by the customers.

63
Mutual Funds:-Are another way to increase PHR .Having investment in mutual funds is

same for all the customers in the corporate.

Insurance: - This Product is provided to the customers how want some type of insurance

which is provided by HDFC Standard Life Insurance. There various product in the

insurance.

Auto Loan: - To provide auto loan to the customers how are interested in taking loan for

there vehicles whether it is old or new vehicle.

Personal Loan: - To provide personal loan to the customers how want loan for some

personal purpose. The rate of interest for premium customers would be different from

the regular customers.

Fixed Deposit :- For the customers how want to have there money save and earn interest

on it , for them there is fixed deposit scheme either they can have sweep-in FD or super

saver account which is explained earlier.

Housing loan: - Customer how wants Loan for the construction of there house or to buy

a new house, loan is to be provided to them; again the rate of interest are different for

different organization. Having corporate tie up with various organization and employees

having salary account with HDFC Bank , Bank does not want its customers to switch to

other banks so in order maintain it customer base bank provides one stop shop, which

fulfill there requirements. And that is why bank emphasizes on corporate selling. There

are approximately 120 corporate in Lucknow where HDFC Bank has its tie up with

Companies meaning those many salary account with bank , out of this 20 corporate are

the premium corporate where the maximum selling can be done. In the table given

below will indicate the corporate that had being contacted and products being sold.

64
PENETRATION OF DIRECT BANKING CHANNEL IN INDIA:

NET BANKING: -

Almost all leading bank in India are hoping that just as ATMs saw a period of in action

before they were accepted by Indian masses, Internet banking too would be adopted once.

Customers are comfortable with the technology for instance in 1998 India had just 500

ATMs. To day it has close to 7500 ATMs.

While Internet banking in potential and powerful delivery channels. It has failed to make

significant impact due to variety or reasons. RBI in its report trend and progress of

banking in India 2001 - 2002, says Internet dBanking has failed to take of due to a

combination of psychological, Technological and socio-economic factors. Further the

report states that additional hurdles relating to legal and infrastructural problems have

also affected growth.

There are three clear reasons why Internet taken of the India.

1- Slowness in adoption of the Internet by the 40 + AGE group.

2- Lacks of a strong trust environment prevent rapid more of corporates in to

adopting Internet.

3- Lack of a critical man of early adopters of security and trust technology among

bankers operating in India to drive the transition from bricks and mortar to e -

banking"

Although the Govt as made considerable progress in initiating a trust environment, with

some public certification authorities (PCA). Already licensed to operate the adoption of

65
trust technology is till a douting factor for many users. What needs to be level adopted in

a simple way of integrating trust into online banking se services.

ATM:-

In this competitive edge of time banking based on customer satisfaction. After

liberalization, the banking sectors empharises on retail banking during 1996 private

sector banks comes into action to compete with RBI and SBI. War for fast service give

birth to E-age banking.

Now in India E-age banking are adopted by all the banks.

Most excepted channel of direct banking is ATM 90% of cash with drawal done by

ATMs. Approximately 7500 ATMs are present in India today. The growth rate of 60 - 7

0% per years an averagely.

ICICI take capture a good number of customer by adopting the e - banking. It has

approximately 1200 ATMs today. A branch stand of ICICI with 8 ATMs.

HDFC, UTI, ABNAMRO are also competitive to ICICI - ATM has given life to private

sectors banks.

MOBILE BANKING: -

It is used by customer in Hyderabad, Meerut, Banglooro, Kolkota, Bombay and so on

high tech city. It is cost effective channel but not used by branch in the entire city where

ever bank branch stand.

PHONE BANKING: -

Very cost effective channel of e-banking by which are can banking from any where, any

time. In India ICICI banks customers are using phone banking in large scale. They do

balance enquiry of their account.

66
 EVALUATION OF HDFC BANK AND ITS COMPETITORS IN

DELIVERY CHANNELS: -

When new private banks started installing ATMs across the length and breath of the

country. Customers started flocking in droves. A care in point is ICICI bank. During the

liberalization of the banking sectors ICICI bank, which did not have a huge national

network, realized that it could use it to enhance its value added offerings.

Say O.P.Srivastava, head of the retail channel infrastructure group at ICICI bank when

the banking sector was liberalized. We knew that to get a lead over the well-entrenched

PSU bank we had to take the help of delivery channels like ATM. There a was the only

way to counter the reach of national player. ICICI bank is the most aggressive player of

ATMs and has seen its base surge from 125 ATMs in January 200 to 1200 today such as

been the impact of ATMs that ICICI banks is customer base has grown from two million

to five million in the last two years, Srivastava attributes this increase to the increase in

ATMs outlets.

Player from the bank is the other big try which has in the banking industry which has

aggressively. Though HDFC bank has armada half the number of ATMs as compared to

ICICI bank, its ATMs are among the higher transaction in the world says Mudit Saxena,

Vice President for dretail marketing and head of net banking at HDFC bank, "The

average per day transactions at HDFC bank ATMs is 350 - 400, with same ATMs

recording as many as 700 transaction per day. " After tech survey banks take UTI bank

and ABX Amro have also become extremely aggressive in installing ATMs.

67
In the case of UTI bank the ATMs have added a fillip to the banks customer base. Says

V.K. Ramani, president for IT at UTI bank, " from the first year of ATMs installation, we

have seen a surge in our customer base currently we have 647 ATMs servicing a has of

1.3 million customer. Over 90% of cash withdrawal of cash withdrawals are done

through ATMs. The number of ATMs transaction have also increased from are million in

September 2001 to 2.5 million in September 2002 with growth figures like this its no

wonder that every branch manager wants an ATMs installed in his area of operation.

ABN Amro bank too has a similar story to tell. Like UTI bank this bank also saw a 90%

increase in its cash withdrawals once it increased its ATM outlets. We are restricted with

respect to the timings, but an ATM gives a customer access to our bank 24 hours, 365

day, 7 day a week. ABN Amro bank has added close imitative.

Summaries the evaluations of the Indian banking industry perfectly. Bank followed to

broad approaches when adopting technologies. The first approach was evolution any

banking play who has large brick and mortar legacy, particularly the public sector banks,

kept the banking channels intact and automated the bottleneck points. This approach was

adopted by around 80% of the industry. However, some back adopted a revolutionary

approach and changed the banking scenario altogether. State bank of India is a good

example of the evolutionary approach, whereas HDFC bank and ICICI bank, are good

examples of the revolutionary approach. Some banks have gone a step ahead and share

their ATMs with other banks. For instance, ABNAMRO bank has a private ATM sharing

agreement with UTI bank.

68
Banks are also developing new strategies to leverage their ATM outlets. For instance,

rather than set upon branch in every suburb, ICICI bank has hit upon a ratio of 8 ATMs

to one branch office, thus effectively reaching out to a large customer base, at a

substantially lower cost. ABN Amro launched Royalties, India's first banking rewards

programme. The customer gets rewarded every time he uses any of the bank's electronic

access channels. If the customer bites the bait, it not only reduces the work load, but also

translates into huge cost savings.

PSU banks, which are witnessing their customer base dwindling, are now looking at

playing the same game. Market analysts believe that the dinstalled base of ATMs which

was so far primarily driven by private sector banks, will be driven by PSU banks in the

near future.

69
SERVICE STRATEGY OF

THE HDFC BANK

70
 SERVICE STRATEGY OF THE HDFC BANK

HDFC bank aims at full customer satisfaction its customers range from ordinary

household to high profile business houses. It has wide range of type of account and

several other payment and deposition facilities to cater to the need of these customers for

speedy transaction to match the demand of e-commerce .It has several model facilities

like internet banking, telebanking etc. all the cheques presented to hdfc bank are

accounted within a day where drawee branch is in the same city for out station cheques it

takes maximum three days only. It has a team of dedicated motivated & trend

professionals who listen to and sort out the problems of customers. To avoid long queue

and waiting lines it has avoid network of reliable ATMs through out the country .It has

ATMs are joined to the main server who satellite link which helps it to maintain data of

every transaction ,after each transaction customer is served with the bank statement the

customer may also access transfer his account via internet in addition all these services

the bank also provides customers with debit and credit cards which allows them to make

transaction any where in the world which has visa compatibility in this way hdfc bank

epitomizes.

The merits of both orthodox and electronic banking. Thus HDFC Bank not only tries to

satisfy its customers but also make all attempts to delight them.

HDFC Bank has three pronged services strategy :

1. People management

2. physical Environment Management

3. process Management

71
1. People Management

HDFC Bank has well qualified team of professional team of professionals who

are experts in customer relationship management. They have achieved. Thus

level of expertise through training and motivation program taken up at regular

interval because of this high levels of competence HDFC Bank is often of called

as Indian Foreign Bank.

2. Physical Environment Management

Every Branch and ATM‟s of HDFC Bank is located in the posh area of the

locality it helps the bank to create a good image among customer.

Further it helps customers access the bank facilities in leisure time that is while

marketing or on way to some important destination.

Further all ATMs and branches are fully air conditioned with relaxing

environment which puts visitors at ease and peaceful relax the tension and stores

of customers.

3. Process Management

HDFC Bank has simplified procedures for transaction and opening accounts it

has done away with Hassle of Going centers which are mandatory in many in

many banks similarly it has done a way with many lumbers one and non

essential procedures which helps customers reduce stress and under tension.

72
 ODPEC ANALYSIS
The opening and closing of A/c pass through several stage which is abbreviated as

ODPEC. The details of which as follows

ODPEC

O-Opening A/c are opened at local level immediately.

D/p-Developing A/c are developed in Mumbai where date entry is done and computed

within 12 to 15 days working days.

C-closing A/c are closed afters a notive from the holds at local level.

73
DATA - ANALYSIS

74
 DATA - ANALYSIS

BANKWISE DISTRIBUTION OF ACOUNT HOLDERS

Based on the response of 250 people following table has been made :

NAME OF THE BANK NO. OF ACCOUNTS %age

HDFC 70 28%

ICICI 110 44%

UTI 20 8%

IDBI 50 20%

UTI
IDBI 8% HDFC
20% 28%
HDFC
ICICI
IDBI
UTI

ICICI
44%

75
RANK IN ORDER OF BANKS WITH RESPECT TO NUMBER OF

CUSTOMERS HELD

1. ICICI

2. HDFC

3. IDBI

4. UTI

76
 POPULARITY OF THE TYPES OF ACOUNTS

Based on the response of 250 people following table has been made

Name of Account Used by people % age

SAVINGS 80 32%

CURRENT 70 28%

FIXED 40 16%

SALARY 60 24%

SALARY SAVINGS
24% 32%

FIXED
16%
CURRENT
28%

77
Types of accounts held by people ranked in order

1. Savings

2. Current

3 Salaries

4. Fixed

HENCE IT IS EVIDENT FROM THE DATA THAT SAVINGS ACCOUNTS ARE

THE MOST POPULAR ONES AMONG ALL TYPES OF ACCOUNTS. WHERE AS

FIXED DEPOSITS ARE LESS POPULAR AND SALARY ACCOUNTS COMES

THIRD IN RANKING>

78
 MOST SOUGHT AFTER ATTRIBUTES OF A BANK

People ranked different attributes as 1,2 ,3 etc.,

Based on these responses mean rank has been calculated.

ATTRIBUTES MEAN RANK

ATM 2.6

FACILITIES 3.88

LOCATION 2.72

SERVICE 4.24

ATMOSPHERE 5.276

EMPLOYEE BEHAVIOUR 3.388

MEAN RANK

6
5.276
5
4.24
3.88
4 3.388

2.6 2.72
3

0
ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE
BEHAVIOUR

79
NOW ARRANGING THE MEAN RANKS IN ASCENDING ORDER WE GET THE

OVERALL RANK WHICH IS AS FOLLOWS:

1. ATM

2. LOCATION

3. EMPLOYEE BEHAVIOUR

4. FACILITIES

5. SERVICE

6. ATMOSPHERE

80
 SATISFACTION LEVEL OF CUSTOMERS

FROM THE RESPONSES OF CUSTOMERS OF DIFFERENT TYPES OF

ACCOUNTS CUSTOMER SATISFACTION LEVEL HAS BEEN GAUGED.

SAVINGS 70%

CURRENT 60%

SALARY 55%

FIXED 70%

100%

80%
60%
Series1
180

160
40%
140

20%
120

100

80

60

40
0%
SAVINGS CURRENT SALARY FIXED
20

1 s t 3 rd

Qtr Qtr

81
POSSIBILITY OF EXPANSION CONSIDERING PRESENT CUSTOMER BASE

From the responses of question whether people would like to open another account

following table has been made

YES 45%

NO 55%

YES
45%

YES
NO

NO
55%

82
CUSTOMER IN MEERUT USED ATMs FOR WHAT PURPOSE IN

PERCENTAGE

2% 5%
8%

85%

Cash withdrawal Balance Inquiry

Cash deposit change of pin no.

83
COMFORT LEVEL OF USERS: -

Users of e-banking are comfortable with ATM. But not used, not aware and also not

comfortable with other channel in Meerut.

% OF PEOPLE FILLS COMFORT IN USING ATMs

AGE WISE

90%
80% 82%
70%
60% 57%
50%
40%
34%
30%
20%
10% 12%
0%
Age 18 -25 Age 26 - 40 Age 41 - 55 Age 55 - Above

% OF PEOPLE FILL COMFORT IN USING ATMs

84
 OCCUPATION WISE

27%
87%
44%

68%

Student Service Man Business Man Govt. Employee

85
FINDINGS

86
 FINDINGS

1. From the response of the Questionnaire gathered and findings the experience

during the survey from of people around, about the HDFC Bank, a lot of

conclusion and findings have been arrived at which are sufficient to unravel the

mysteries and connotations of customer behavior and their satisfaction.

2. Since HDFC Bank is number two in terms of number of account holders, and has

a positive image and enormous goodwill among masses elevates its position from

niches to runner in retail banking sector. It can very well take on the challenge

posed by ICICI Bank and try to improve its position by focusing on key strength

areas and strategically eliminating its weak points.

3. For expansion HDFC Banks should make forays into semi-urban and smaller

cities and also rural areas .In fact these days, rural income is increasing at a much

faster rate then. Urban income and also the market are considered virgin which

makes the launching and expansion prospects very good one. In this way the Bank

can

87
4. Gain foothold over these territories and reap rich harvest in terms of booming

account numbers.

5. However it was felt during the survey that major constraint which may laggard

the growth of HDFC Bank is the inadequate number of ATMs across the country.

The Bank need to improve upon this front because in terms of customers

consideration of attributes in choosing a bank ATMs and location of it are of

paramount importance.

6. Since saving account ate the most popular among masses, innovative ideas has to

be framed to inveigle new prospects into this venture. Possible targets could be

school and college going students, housewives and small businessmen who could

easily put their money from irregular source of income into this account.

7. Now-a-days Banking is no more the way of only providing interest for the

deposited money, but they are the ways of accessing and transacting with them

from anywhere and anytime at any part of the world. Hence, flawless and

effortless access of bank accounts from mobile phones and Internet has to be

made available.

88
8. It is also felt that in the era of e-banking where transaction is more on the IT

highway the success of bank will depend more on building information networks

rather then anything else. In the near future all existing banks including HDFC

Bank may have to rival Airtel and hutch network, which too might become Banks

very soon rather then competing among themselves. Hence vision for success in

near future is building up of information gathering and dissemination network

base

89
SUGGESTIONS AND

RECOMMENDATIONS

90
 SUGGESTIONS AND RECOMMENDATIONS
 Try to improve after sales services.

 To be some quality conscious.

 Try to install ATM‟s at more convenient places for their customers.

 Try to provide Complete/Actual information to the customers.

 Customers must have all the information regarding charges & fees.

 HDFC must issue at par cheques to all their customers.

MAKE STRONG PUBLIC RELATIONS:

The bank has to provide better services to satisfy the needs and wants of customers

specially on the occasion of deepawali and dashahara like festivals so that the customer

has to satisfied with their services of banks the bank is to provide loans, specially housing

loans to the customer at very low interest rates so that the every middle class family is to

avail loans without any problem.

91
CONTINUOUS MARKET FEED BACK:

To make the good relation with the customers, it is very important to take feed back time

to time to know about the problems and difficulties which are faced by the customers.

PROVID RECENT INFORMATION TO THE CUSTOMERs:

The bank is able to give as many as possible information‟s to our customers so that the

customer is able to understand which type of information is to be used in a particular

sector.

92
TRY TO INPROVE ON LINE TRADING:

Due to on line trading the customers are given way of opening and depositing their

money on the basis of on line services and make trading. Of shares and mutual funds

TRY TO INSTALL ATM’s AT MORE CONVENIENT PLACES:

This financial year bank also try to increase the ATMs so customers can avail their banks

as well as ATM‟s as many as possible places specially in commercial places like petrol

pumps, in market , in the hospital . So that the customer has convenience to Deposit and

withdraw their money without problems.

TRY TO OPEN EXTENTION COUNTER AT VARIOUS PLACES:

The bank has to open their extension counter in various places of their city so that the

deposit of bank is also increase and the turnover of bank during facilities which is

provided by bank cheaper rate.

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SWOT ANALYSIS

94
 SWOT ANALYSIS

Strength

The keys strength areas of HDFC Bank are its motivated and highly competent staff

who are aggressive in their pursuit for excellence in terms of employee competence it

rivals the highly rated foreign banks.

Weakness

Though HDFC Bank has wide coverage of ATM Network through out the country it

is not considered adequate keeping in view is wide customer base.

Opportunity

HDFC Bank has good opportunity in Rural area and offices etc. which are still

untouched by banks of such repute are considered virgin markets.

Threat

Other banks like ICICI, SBI, UTI, IDBI etc are expanding at a very fast rate and are

perceived as threat to HDFC Bank.

95
BIBLIOGRAPHY

96
 BIBLIOGRAPHY
BOOKS:-

1. MARKETING CHANNELS (fifth edition)

-By Stern-EL Anasary

2. MANAGEMENT INFORMATION SYSTEM (6th edition)

-by Lordon& Lordon

WEBSITE -

1. www.yahoo.com

2. www.hdfcbank.com

6. www.economictimes.com

NEWS PAPER-

1. THE FINANCIAL EXPRESS

1. BUSINESS STANDERED

MAGAZINE-

1-CAPITAL MARKET

2-EXPRESS COMPUTER

3-E-COMMERCE

4-BUSINESS INDIA

HDFC BANK CATALOUGE

97
QUESTIONNAIRES

98
APPENDIX

QUESTIONNAIRES

I thanks for agreeing to spare 5 minutes of your's time for filling up this

questionnaire. I am doing this survey of 100 customers of deferent banks. All

details given by you will be kept strictly confidential.

1- DO YOU HAVE ANY A/C IN BANKS? IF YES GIVE THE NAME OF BANKING

ORGANIZATION.?

I------------------------------ II- -----------------------------

NO

2- HOW LONG RELATION YOU HAVE WITH YOUR BANK?

A- LESS THAN 1 YEAR. B-1-3 YEARS

C-3-5 YEARS. D-MORE THAN FIVE YEARS.

3-WHAT SATISFIED YOU MOST IN YOUR BANK?

A- RELIABILITY B- PERSONAL CARE C-FAST SERVICE

D-OTHERS (SPECIFY)…………………………………………………..

4-DO YOU LIKE 24 HOURS, 365 DAYS AND 7 DAYS WEEK BANKING IN THE

PRESENT DAYS.

A) YES B) NO

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5-WHICH OF THE ELCTRONIC BANKLING CHANNELS YOU ARE USING.TICK

A-ATM B- PHONE BANKING C- MOBILE BANKING

D-INTERNET BANKING E - OTHERS (SPECIFIED) ----------------------

6-DO YOU FIND E-AGE BANKING CHANNELS ARE HELPFUL FOR YOU.

A) YES B) NO

7-CAN E-AGE BANKING CHANNELS REPLACE TRADITIONAL BANKING.

A) YES B) NO

8- FOR WHAT PURPUSE YOU USE E-AGE BANKING CHANNELS.

A- CASH WITHDRAW B- BALANCE INQUIRY

C- CASH DEPOSIT D- OTHER THAN IT (Specify)

--------------------------------------------------------------------------------------.

9- DO YOU FIND YOURSELF COMFORTABLE WITH E-AGE BANKING

CHANNELS.

A) YES B) NO

IF NO ,WHY?…………………………………………………………………………..

100
10- DO YOU THINK E-AGE BANKING CHANNELS ARE.

A- COST EFFECTIVE B- INCREASES PRODUCTIVITY

C- TIME SAVING D- NONE OF THESE

11- WHICH BANK IS BETTER IN MANAGING E-AGE BANKING CHANNELS?

(RANK IN ORDER.)

A- ICICI B- HDFC C- IDBI

D- UTI E- SBI F- INDUS IND

12- WHAT ATTRACTS YOU MOST? (RANK)

LOCATION
EMPLOYEE BEHAVIOUR
ATM
FACILITIES
SERVICE
ATMOSPHARE

13- ARE YOU SATISFIED WITH THE BANK

(YES/NO)

14- IF YES DO YOU WANT TO OPEN ANOTHER ACCOUNT

(YES/NO)
15- IF NO REASON FOR DISSATISFACTION

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SUGGESTIONS AND FEED BACK (About e-age banking and challenges)

-…………………………………………….…………………………………………….

-…………………………………………….…………………………………………….

PERSONAL DETAILS-

NAME ………………………………………………………………………..

AGE - 18-25 YR 25- 40YR.

40-55 YR. MORE THAN 55YR.

SEX - M F

OCCUPATION ……………………………………………………………………

102