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HDFC BANK LTD (PERSONAL LOAN)

CHAPTER-1
INTRODUCTION

1.1 GENERAL INTRODUCTION


The banking sector is the most dominant sector of the financial system in India. Significant progress has been made with respect to the banking sector in the past liberalization period. The financial health of the commercial banks has improved manifolds with respect to capital adequacy, profitability, asset quality and risk management. Further, deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking, insurance, credit cards, depository services, mortgage, securitization, etc. Liberalization has created a more competitive environment in the banking sector.

Indian Banking Sector:


Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu thinker, who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period, the indigenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The others that followed were the Bank
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of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as Presidency Banks, were independent units and functioned well.

These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalized and in 15th April 1980 six more commercial private sector banks were also taken over by the government. Today the commercial banking system in

Types of Banks in India:


In India the banking sector are mainly classified in to four categories are as follows 1.3.1 State Bank of India and its associate banks called the State Bank group 1.3.2 20 nationalized banks 1.3.3 Regional Rural Banks mainly sponsored by Public Sector Banks
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1.3.4 Private Sector Banks 1. Old generation private banks 2. New generation private banks 3. Foreign banks in India 4. Scheduled Co-operative Banks

1.2 INDUSTRY PROFILE


a. Origin and development of the industry
The origin of banking in India is traceable in ancient time through the modern banking hardly 200 years old. The main functions of a bank are to accept deposits and grant loans. There are evidences of these functions being performed by a section o the community in the Vedic periods. There are many references of Debt in the Vedic Literature. During the Ramayana and Mahabharata eras banking, which was a side businesses during the Vedic period, became a full-time business activity for the people. During the Smriti period, the banking business was carried on by the members of the Vanish community and Manu speaks of earning through interest as the business of Vaishyas. He accepted deposits from the public, granted loans against pledges and personal security, granted simple open loans, acted as bailee for his customers, subscribed to public loans by granting loans to kings, acted as treasurer and banker to
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the state and managed the currency of the country. Indigenous bankers used to maintain a regular system of accounts and borrowers used to sign the loan deeds.  Money changing came into vogue and the state regulation of the business became more systematic.   Indigenous bills of exchange came also in use. The maximum rates of interest were fixed.

Development from Independence until 1991


At the time of Independence in 1947, the banking system in India was fairly well developed with over 600 commercial banks operating in the country. However, soon after Independence, the view that the banks from the colonial heritage were biased in favor of working-capital loans for trade and large firms and against extending credit to small-scale enterprises, agriculture and commoners, gained prominence. To ensure better coverage of the banking needs of larger parts of the economy and the rural constituencies, the Government of India (GOI) created the State Bank of India (SBI) in 1955. Despite the progress in the 1950s and 1960s, it was felt that the creation of the SBI was not far reaching enough since the banking needs of small scale industries and the agricultural sector were still not covered sufficiently. Following the Nationalization Act of 1969, the 14 largest public banks were nationalized which raised the Public
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Sector Banks' (PSB) share of deposits from 31% to 86%. The two main objectives of the nationalizations were rapid branch expansion and the channeling of credit in line with

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the priorities of the five-year plans. To achieve these goals, the newly nationalized banks received quantitative targets for the expansion of their branch network and for the percentage of credit they had to extend to certain sectors and groups in the economy, the so-called priority sectors, which initially stood at 33.3%. The main policy changes were the introduction of Treasury Bills, the creation of money markets, and a partial deregulation of interest rates. Besides the establishment of priority sector credits and the nationalization of banks, the government took further control over banks' funds by raising the statutory liquidity ratio (SLR) and the cash reserve ratio (CRR). From a level of 2% for the CRR and 25% for the SLR in 1960, both witnessed a steep increase until 1991 to 15% and 38.5% respectively. In summary, India's banking system was at least until an integral part of the government's spending policies. Through the CRR and the SLR more than 50% of savings had either to be deposited with the RBI or used to buy government securities. Of the remaining savings, 40% had to be directed to priority sectors that were defined by the government. Besides these restrictions on the use of funds, the government had also control over the price of the funds, i.e. the interest rates on savings and loans. This was about to change at the beginning of the 1990s when a balance-of-payments crisis was a trigger for far-reaching reforms.

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Developments after 1991


The 1991 report of the Narasimham Committee served as the basis for the initial banking sector reforms. In the following years, reforms covered the areas of interest rate deregulation, directed credit rules, statutory pre-emptions and entry deregulation for both domestic and foreign banks. The objective of banking sector reforms was in line with the overall goals of the 1991 economic reforms of opening the economy, giving a greater role to markets in setting prices and allocating resources, and increasing the role of the private sector.

Statutory pre-emption
The degree of financial repression in the Indian banking sector was significantly reduced with the lowering of the CRR and SLR, which were regarded as one of the main causes of the low profitability and high interest rate spreads in the banking system. During the 1960s and 1970s the CRR was around 5%, but until 1991 it increased to its maximum legal limit of 15%. From its peak in 1991, it has declined gradually to a low of 4.5% in June 2003. In October 2004 it was slightly increased to 5% to counter inflationary pressures, but the RBI remains committed to decrease the CRR to its statutory minimum of 3%. The SLR has seen a similar development. The reduction of the CRR and SLR resulted in increased flexibility for banks in determining both the volume and terms of lending.
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Priority sector lending


Besides the high level of statutory pre-emption, the priority sector advances were identified as one of the major reasons for the below average profitability of Indian banks. The Narasimham Committee therefore recommended a reduction from 40% to 10%. However, this recommendation has not been implemented and the targets of 40% of net bank credit for domestic banks and 32% for foreign banks have remained the same.

Public Sector Banks


At the end of the 1980s, operational and allocation inefficiencies caused by the

distorted market mechanism led to a deterioration of Public Sector Banks' profitability. Enhancing the profitability of PSBs became necessary to ensure the stability of the financial system. The restructuring measures for PSBs were threefold and included recapitalization, debt recovery and partial privatization. Prior to any privatization, the balance sheets of PSBs had to be cleaned up through capital injections. In the fiscal years 1991/92 and 1992/93 alone, the GOI provided almost Rs40 billion to clean up the balance sheets of PSBs. Between 1993 and 1999 another Rs120 billion were injected in the nationalized banks. In total, the recapitalization amounted to 2% of GDP.

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b. Growth and present status of the Industry


The financial sector is in a process of rapid transformation. Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are more in line with market forces. Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country. The Indian banking system has a large geographic and functional coverage. Presently the total asset size of the Indian banking sector is US$ 270 billion while the total deposits amount to US$ 220 billion with a branch network exceeding 66,000 branches across the country. Revenues of the banking sector have grown at 6 per cent CAGR over the past few years to reach a size of US$ 15 billion. While commercial banks cater to short and medium term financing requirements, national level and state level financial institutions meet longer-term requirements. This distinction is getting blurred with commercial banks extending project finance.
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Banks, as we all know, are subjected to more intense regulation as compared to the non-financial firms. Bank regulation is now increasingly getting risk-centric. This process had its origin in the Cooke Committee or the Basel I proposals which for the first time prescribed a risk-based capital adequacy framework for banks by recognizing that different counterparties had different risks and therefore had to be risk-weighted differently

c. Future of the Industry


The interplay between policy and regulatory interventions and management strategies will determine the performance of Indian banking over the next few years. Legislative actions will shape the regulatory stance through six key elements: 1) industry structure and sector consolidation 2) freedom to deploy capital 3) regulatory coverage 4) labour reforms and human capital development 5) corporate governance 6) support for creating industry utilities and service bureaus.

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Management success will be determined on three fronts: 1) fundamentally upgrading organizational capability to stay in tune with the changing market 2) adopting value-creating M&A as an avenue for growth 3) Continuously innovating to develop new business models to access untapped opportunities. Changes in regulations and bank capabilities reduce intermediation costs leading to increased growth, innovation and productivity. Banking becomes an even greater driver of GDP growth and employment and large sections of the population gain access to quality banking products. Management is able to overhaul bank organizational structures, focus on industry consolidation and transform the banks into industry shapers. The Reserve Bank of India has, in the service of our country, a proven track record and professionalism, which have lent it considerable credibility - both domestically and globally. This credibility enables the RBI to confidently carry the reforms forward to credibly maintain price and financial stability, while enabling self-accelerating equitable growth at elevated levels The Indian financial sector is ready for consolidation, said 95 per cent of the respondents. Given the increased competition, and the implementation of Basel II norms in the near future, the banking industry of the country would be better
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off with six to seven banks as big as State Bank of India, said the survey.

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Areas that need improvement include diversification of markets beyond big cities, human resources systems, size of banks, high transaction costs, and infrastructure and labor inflexibilities. some strategies that can help India achieve a world class banking system are consolidation, strict corporate governance norms, and regional expansion within the country and outside, higher FDI limits and Free Trade Agreements with countries where India has comparative advantage in banking sector. India has among the lowest penetration of retail loans in Asia. Though the sector has been growing at around 15 per cent, there is still a huge opportunity to tap into. Retail loans and lending to small and medium enterprises will emerge as the two biggest areas of growth in the future for the Indian banking sector The total assets in the banking sector today are estimated to be at Rs 17 trillion and total deposits are estimated at Rs 13 trillion. There are over 290 scheduled banks in the country today, of which 190 are regional rural banks. There are just 9 Indian private sector banks. Together the banking industry offers 66,000 branches across India.

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CHAPTER-2
PROFILE OF THE ORGANIZATION

2.1 ORIGIN OF THE ORGANIZATION


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, a strong market reputation, large shareholder base
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and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

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2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION


HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1400 branches spread over 600 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone 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. The Bank also has a network of about over 2000 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.

2.3 PRESENT STATUS OF THE ORGANIZATION


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 RBIs liberalization of the Indian Banking Industry in 1994. the bank was incorporated in August 1994 in the name of HDFC Bank Limited. With its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
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Promoter
HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception is 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgages.

Business Focus
HDFC Banks mission is to be a World-Class Indian Bank. The Banks aim is to build sound customer franchises across distinct businesses so as to be the preferred provided of banking services in the segments that the bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite.

Capital Structure
The authorized capital of HDFC Bank is Rs.450 crore (Rs.45 billion). The paid-up capital is Rs282 crore (Rs.28.2 billion). The HDFC Group holds 24.2% of the banks equity while about 13.1% of the equity is held by the depository in respect of the banks issue of American Depository Shares (ADS/ADR Issue)..

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Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1400 branches spread over 600 cities across the country. All branches are linked on an online real-time basis. Customers in 90 locations are also serviced through Phone Banking. The Banks 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.

Management
Mr.Jagdish Kapoor took over as the banks Chairman in July 2001, Prior to this, Mr.Kapoor was a Deputy governor of the Reserve Bank of India. The Managing Director, Mr.Aditya Puri, has been a professional banker for over 25 years. And before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia. The Banks Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior
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executive representing HDFC are also on the Board Senior banking professionals with

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substantial experience in India and abroad head various businesses and functions and report to the Managing Director.

2.4 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION


The bank has three key business areas:

1. Wholesale Banking Services


Here our target market is primarily large, blue-chip companies and to a lesser extent, emerging mid-sized corporate. For these corporate, we provide a wide range of services, including working capital finance, trade services, transactional services, cash management, etc. We are a leading provider of structured solutions, which combine cash management services with vendor and distributor finance, for facilitating superior supply chain management for our corporate customers. We are also recognized as a leading provider of cash management and transactional banking solutions to mutual funds, stock exchange members and banks.

2. Retail Banking Services


The objective of the Retail Bank is to provide our 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 the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
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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. We have a wide array of retail loan products including Auto Loans, Loans against Securities, Personal Loans and Loans for Twowheelers.

3. Treasury Operations
Within this business, the bank has three main product areas a) Foreign Exchange and Derivatives b)Local Currency Money Market & c) 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 are provided through the bank's Treasury team. The Treasury business is responsible for managing the returns and market risk on the bank's investment portfolio.
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The above business groups are supported by the following groups:       Audit & Compliance Credit & Market Risk Finance, Administration & Legal Human Resources Information Technology Operations

4. Systems & Technology


The Bank uses state-of-the-art technology for both internal and external customers. a) Banking Applications In terms of software, the Corporate Banking business is supported by UBS, while the Retail Banking business by Finware. These world-class systems have been specially customized for HDFC Bank by i-flex Solutions Ltd. which is a Citigroup company. The Bank also uses various other systems to support other infrastructure b).Lotus Notes Lotus Notes is the system that HDFC bank uses for internal communication. c) Facilities Management Wipro is the company appointed to give HDFC Bank the on-site support required at different locations / cities.
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2.5 ORGANIZATION STRUCTURE AND ORGANIZATION CHART


HDFC Bank Board of Directors comprises of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

ORGANIZATION CHART
Chairman

Managing Director & CEO

Joint Managing Director (Domestic Banking)

Joint Managing Director (International Business)

Executive Director (Corporate Center)

Executive Director (Project Finance)

Executive Director (Retail Banking)

Executive Director (Wholesale Banking)


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Sr. General Managers

Sales Manager

SALES Manager 1

SALES Manager 2

SALES Manager 4

TEAM LEADER

TEAM LEADER

TEAM LEADER

TEAM LEADER

BDE 1 BDE 2

BDE 1 BDE 2

BDE 1 BDE 2

BDE 1 BDE 2

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2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION


Products of HDFC Bank includes the following:

Deposits: 1) Savings Account


These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident that you will find the perfect banking solution. Open an account in your name or register for one jointly with a family member today. Some of its features are:  Debit-cum-ATM card  Auto Invest Account  Internet Banking  Phone banking  Anywhere Banking  Standing Instruction  Nomination facility  Doorstep service  Mobile banking  Monthly free E-Mail statement
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3) Personal Loan
 Loans up to Rupees one million for any purpose.  Flexible Repayment Options ranging from 12 to 48 months.  Repayment through Easy Monthly Installments (EMIs).  Low Rate of Interest  Hassle free loans - No guarantor/security/collateral required  Speedy loan approval  Service at the customer's doorstep  Further, there are additional privileges for HDFC Bank account holders like:  Special rates of interest.  For existing Auto Loan customers with a clear repayment of 12 months or more from even any of the approved financiers of HDFC Bank, a hassle free personal loan without income documentation can be obtained.  For existing HDFC Bank Personal Loan customer with a clear repayment of 12 months or more, personal loan can be enhanced.

4) Senior Citizen Services

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5) Fixed deposits
 Wide range of tenures  Choice of investment plans  Partial withdrawal permitted  Safe custody of fixed deposit receipts  Auto renewal possible  Loan facility available

6) Easy deposit 7) Recurring deposit


 Encourage savings  High interest rates of interest  Loans against deposits available  Non-applicability of tax deduction at source (TDS)

8) Special savings account Bank @ campus


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9) Direct Banking Account 10) Tax Saver Fixed Deposits 11) Roaming Current Account 12) Young Stars or Kids Account 13) Savings Max Account / Regular Account / Plus Account 14) D-Mat Account 15) Family Account 16) NRI account

SERVICES:

a) Retail Banking Services


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

b) Wholesale Banking Services


Here our target market is primarily large, blue-chip companies and to a lesser extent, emerging mid-sized corporate. For these corporate, we provide a wide range of services, including working capital finance, trade services, transactional services, cash management, etc. We are a leading provider of structured solutions, which combine cash management services with vendor and distributor finance, for facilitating superior supply chain management for our corporate customers. We are also recognized as a leading provider of cash management and transactional banking solutions to mutual funds, stock exchange members and banks.

2.7 MARKET PROFILE OF THE ORGANIZATION


HDFC is India's premier housing finance company and it is the largest private bank in India. HDFC Bank 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
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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

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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. HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. 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 acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base,
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skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

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HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1400 branches spread over 600 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone 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 the centers where the NSE/BSE has a strong and active member base.

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CHAPTER 3

DISCUSSIONS ON TRAINING
3.1 Students work profile (Roles and responsibilities)
The internship period in HDFC Bank was a good learning experience. I worked for Direct Sales team of the organization as a Business Development Executive where my job was to loing for Personal Loan of bank and source new customers at the HDFC Bank LTD. In WhiteFeild Branch . My work involved some field work as well as making extensive cold calls to customers in order to generate database and keep updates on customer satisfaction. Every new Business Development Executive of the sales team have to undergo a three day compulsory product training in the Indira Nagar Head Branch, of HDFC Bank Ltd., Bangalore. Once every member of the team is trained on the products i.e.

Personal Loan of the bank, the manager-in-charge sets a weekly target for the team as well as for each team member. The team leader keeps track of the targets and arrange for the necessary changes in case the targets are not achieved.
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Every day my work would start off with calling up customers and make follow ups of those customers who are interested in personal loan with HDFC Bank. Apart from

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calling, I also need to report the daily sales report to my manager on a regular basis. Once the follow up calls are made, my job wants me to interact with the customers regarding the products, in and outside the organization. Hence my next steps include fixing appointments for the interested customers and collecting the essential documents to log in the application forms. Also, a BDE need to go on field for generation of new database and organizing sales activities in order to boost up sales. The assigned job responsibilities also include creating loyal customers and conducting promotional campaigns, giving presentations, handling customer queries and last but not the least, achieving the set targets.

3.2 DESCRIPTION OF LIVE EXPERIENCE


As a Business Development Executive I had to interact with customers extensively and had to login for personal loan for them. My work in office used to begin with listing out the interested customers out of the daily sales report , from walking customer and then calling them up and ask for personal loan with HDFC Bank. While speaking over the phone with the customer I used to provide all the necessary information along with product details to the customer. Next was fixing up the appointments for the process. Once the appointments were done I had to go to meet the prospective customer at the fixed place area and had to generate database and find out new prospects. This included much challenge as convincing customers is not as easy as it sounds. It had to
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follow with product presentations and promotional activities. During the course I had the opportunity to deal with some big clients like IT companies, BPOs and small enterprises which were helpful exposures to learn sales and marketing tactics. Last but not the least, every BDE of the sales team had individual targets to achieve. I had a target of login of Rs. 10,00,000/- per month which I successfully achieved and maintained during the internship period.

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CHAPTER 4
STUDY OF SELECTED RESEARCH PROBLEM
4.1STATEMENT OF RESEARCH PROBLEM
In todays era of cut throat competition, it is very importance to gain a cutting edge over the competition, and develop a large market share. This is only possible if there is a large customer base for the company. The company must gain confidence of the

customers and provide services par excellence. Therefore, undertaking the project helps in assessing the customer care level of HDFC BANK. The study is applied descriptive as well as diagnostic in nature. It also tends to find the customer view about important aspects of the services. At the same time it was intended to find the customer view about the product and the quality of service improvement. In short this problem can be defined as: Are customers satisfied with the services at HDFC?

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4.2 STATEMENT OF RESEARCH OBJECTIVES


The important research objectives are listed below: 1. To evaluate the expectations of customers towards personal loan with HDFC Bank. 2. To study the importance of customer relationship. 3. To study the impact of customer relationship management on bank customers. 4. To analyze the expectations of banking customers. 5. To analyze the satisfaction level of customers of HDFC bank on the following criteria: Working environment Customer care Bank timings Overall services Special schemes provided

y y y y y

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4.3 RESEARCH DESIGN AND METHODOLOGY


For any research, research design is of immense importance as it facilitates the smooth sailing of various research operations. The method adopted by the researcher for completing the project is called Research Methodology. In other words, Research Methodology is simply the plan of action for a research which explains the detail, how data is to be collected, analyzed and interpreted. Data becomes information only when a proper methodology is adopted. Thus we can say methodology is a tool which processes the data into reliable information.

Scope of the study


As the competition level in the banking sector is ever increasing, it becomes indispensable for the company (HDFC) to conduct the study on the perception and satisfaction level of its customers. This study will help the company in making its new strategies to satisfy its customer in the ways in which he or she wants to be satisfied and to the company its position in the market. The study on customer satisfaction has the geographical coverage limited to White Field area and Indira Nagar only. This study will help the company to know in detail about the customer perception and their attitude towards the company services and products. The company will gain the feedback from the customer to improve its products and quality of service.
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Methods used for data collection are:


1) Primary Data 2) Secondary Data

Primary data:

Primary data are datas, which are original in nature, and are

collected by the researcher. The method used to collect the primary data was Survey Method. The survey method included a structured questionnaire that was given to the respondent.

Secondary data:

Secondary data are data, which has been collected and

compiled in advance for another needed purpose. Secondary data is an important method to know the present problem faced by the account holders in the field of HDFC Bank. Newspapers, articles, books, magazines etc. have been used to prepare the questionnaire.

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Tools for data collection


The tool used for data collection is Primarily Questionnaire method. The questions contained: a) Open-Ended Questions Where the respondent was given a chance to reply or give suggestions to the Company. This included Free Responses questions where the respondents were given the freedom to give suggestions. b) Close-Ended Questions Where the respondent was given a lesser chance to reply. This includes Multiple Choice Questions where the respondents were given a number of alternatives.

Sampling Method Used:


Non probability sampling, i.e., convenient sampling method was used to select a sample of 100 customers among the customers of the HDFC Bank.

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Sample Size:
Sample size of 100 customers are taken from the White Field branch of HDFC Bank

Sampling Method Used:


Random sampling method was used to select a sample of 100 customers among the customers of HDFC Bank.

Scales:
Respondents were given a scale whose positions range from Highly Satisfied to Highly Dissatisfied

Area of survey:
The area selected to find the satisfactory level was in and around White Field area and Indra Nagar.

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4.4 ANALYSIS OF DATA


The study on customer satisfaction has the geographical coverage limit to White Fieldarea only. This study will help the company to know in detail about the customer perception and their attitude towards the company services and products. The company will gain the feedback from the customer to improve its products and quality of service

1) TABLE SHOWING DISTRIBUTION OF AGE


AGE GROUP 20 30 3040 40 AND ABOVE TOTAL NO. OF RESPONDENTS 22 43 35 100 PERCENTAGE 22% 43% 35% 100%

ANALYSIS The above table shows that 22% of the respondents fall under the age group of 20 30 years, 43% of the respondents fall under age group of 30 40 years and 35% of the respondents belonging to age group of 40 and above years.
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INFERENCE Hence it clearly shows that he majority of the respondents fall under the age group of 3040 years i.e. 43%.

CHART SHOWING DISTRIBUTION OF AGE

22% 35% 20 30 3040 43% 40 AND ABOVE

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2) TABLE SHOWING DISTRIBUTION OF GENDER


GENDER FEMALE MALE TOTAL NO. OF RESPONDENTS 43 57 100 PERCENTAGE 43% 57% 100%

ANALYSIS The table shows that there are 57% of male respondents and 43% of female respondents

INFERENCE Thus the table clearly shows that the majority of the respondents are male i.e. 57%.

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CHART SHOWING RESPONDENTS (MALE & FEMALE)


60 50 40 FEMALE 30 20 10 0 NO. OF RESPONDENTS PERCENTAGE MALE

3). THE DISTRIBUTION OF THE MONTHLY NET TAKE HOME SALARY


MONTHLY HOUSEHOLD INCOME LESS THAN RS 15,000 RS 15,000 RS 30,000 MORE THAN RS 30,000 TOTAL 0 23 77 100 0% 23% 77% 100% NO. OF RESPONDENTS PERCENTAGE

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ANALYSIS The above table shows that there are no respondents who have a monthly net take home salary of less than Rs 15,000; there are 23% of the respondents who fall under Rs 15,000 Rs 30,000 household income and 77% fall under the more than Rs 30,000 net take home salary category. INFERENCE The table clearly shows that the majority of the respondents have more than Rs 20,000 of monthly net take home salary that is 77%

CHART SHOWING DISTRIBUTION OF MONTHLY NET TAKE HOME SALARY


0% 23% LESS THAN RS 10,000 RS 10,000 RS 20,000 77% MORE THAN RS 20,000

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4).THE IMPORTANCE OF THE INTEREST RATE ACCORDING TO THE CUSTOMERS


IMPORTANCE VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT NOT AT ALL IMPORTANT TOTAL NO.OF RESPONDENTS 65 20 15 0 100 PERCENTAGE 65% 20% 15% 0% 100%

ANALYSIS The above table relates that the 65% of the respondents think its extremely important for the interest rate to be convenient, 20% of the respondents think it is somewhat important, 15% of the respondents think its not so important while none of them think its not at all important. INFERENCE Table number 7 clearly shows that majority of the customers think that it is very
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important that the interest rate are convenient i.e. 65%.

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IMPORTANCE OF INTEREST RATE


0% 15% VERY IMPORTANT 20% SOMEWHAT IMPORTANT 65% NOT SO IMPORTANT NOT AT ALL IMPORTANT

5) THE IMPORTANCE OF PROCESSING FEES AND TIME IN HDFC BANK ACCORDING TO CUSTOMRES

VARAIBLES HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL

RESPONDENTS 10 62 23 5 0 100

PERCENTAGE 10% 62% 23% 5% 0% 100%


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ANALYSIS From the above table it can be analyzed that out of 100 respondents 10% are highly satisfied with the processing fees & time of the bank, 62% are satisfied, 23% are neutral, 5% are dissatisfied and none are highly dissatisfied. INFERENCE Therefore, it can be inferred that almost 5% of the respondents are not happy with the processing fees & time.This indicates that the customers are not satisfied with the processing fees & time

Importance of processing fees & time


0% 5% 23% 10% HIGHLY SATISFIED SATISFIED NEUTRAL 62% DISSATISFIED HIGHLY DISSATISFIED

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7) TABLE SHOWING SIZE OF THE EASY MONTHLY INSTALLMENT


IMPORTANCE NO. OF RESPONDENTS 30 45 PERCENTAGE

VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT NOT AT ALL IMPORTANT TOTAL

30% 45%

20 5

20% 5%

100

100%

ANALYSIS The table shows that according to 30% of the respondents it is very important that the size of the EMI is appropriate, 45% of the respondents think it is somewhat important, 20 % of the respondents said it is not so important while 5% of the respondents replied that it is not at all important. INFERENCE Hence the table clearly shows that the majority of the respondents think it is somewhat important for the EMI to be appropriate.

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Importance for size of the EMI


5% 20% 30% VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT 45% NOT AT ALL IMPORTANT

7) IMPORTANCE OF DEVELOPMENT EXECUTIVE IN HDFC BANK WITH REGARD TO PERSONAL LOAN ACCORDING TO CUSTOMER
VARIABLES HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED RESPONDENTS 15 55 20 10 PERCENTAGE 15% 55% 20% 10%

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HIGHLY DISSATISFIED TOTAL

0 100

0% 100%

ANALYSIS The above table shows that out of 100 respondents,15 % of the respondents are highly satisfied with the development executive of HDFC Bank, 555 are satisfied, 20% are neutral while 10% are dissatisfied with the customer care and none are highly dissatisfied.. INFERENCE Development Executive is of immense importance in todays world and a key tool for an organization in order to gain new customers and boost up sales and market share. Therefore, HDFC Bank should work towards the dissatisfied customerby regular training to its employees or making the procedure more customer friendly.

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Respondents on customer
0% 10% 20% 15% HIGHLY SATISFIED SATISFIED NEUTRAL 55% DISSATISFIED HIGHLY DISSATISFIED

4.5 SUMMARY OF FINDINGS


1. Most of the customers of the bank are satisfied, but there is a minority of customers who are still looking for improvement. 2. The bank has strong customer relationship, whether it is customer service or post sales service, HDFC Bank serves the customer well. 3. However the bank timigs are not very convenient for the customers. Hence, flexible banking hours shoud be adopted to meet customers requirements. 4. When it comes to the processing fees & time , it shows mix response. More customers would prefer a change in the. processing fees & time
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5.

The only draw back that HDFC bank has in compare to other banks is only regarding the interest rates which is considered to be low in comparison to other bank. While most of the banks charges high monthly installment for the repayment of loan with compare to HDFC bank.

6. Enable customers to get personal loan easily and provide variety of other banking scheme to the personal loan customer .

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CHAPTER 5
SUMMARY AND CONCLUSION
5.1 SUMMARY OF LEARNING EXPERIENCE
My experience with HDFC Bank as a Business Develoment Executive during the three months internship period has helped me to a great extent in dealing with customers and with their tastes and expectations. With the changing market scenario and increased competition, it is very important to treat the customer as the king and to keep him happy When it comes to sales, customer relationship plays a significant role. To cater to each customer is an art to learn. Having gone through continuous interactions with customers and working for the sales team in the bank, I have learnt that it is very important to understand the needs and requirements of the customer and accordingly sell him the product. Working with HDFC Bank was a good learning opportunity which enabled me to learn about its wide range of products and services. The project has helped me to have an understanding of customer requirements and of the service industry.

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5.2 CONCLUSION AND RECOMMENDATIONS Conclusion


It is important in todays competitive world to create loyal customers and retain them. Hence customer service is an area where every organization put emphasis on. The quality of products along with the quality of services influences customers to choose a particular bank. HDFC Bank, as its punch line says, we understand your world, is the largest private sector bank in India which has shown tremendous growth in the past couple of years .Its customer centric focus and aim to satisfy every customer with wide range of products and services as mentioned in the report has helped the bank to have an edge above its competitors.

Recommendations
1. The processing time which is now 10 days , must be reduce to 9 days ,so more and more people can apply for the urgent loan for unforeseen calamities 2. Scheduling regular promotional activities like canopies, company visit etc. to know the more and more people about the loan facilities based on their salary i.e. Personal Loan. 3. More number of scheme is provided to the current salary holder cutomer with HDFC Bank with different features .
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4. Proper and general instruction about the product with latest changes and working provides to the executive . 5. The interest rates made to be more liberal to cutomer to customer on the basis of their salary and company profile . 6. The process of funding the loan needs to be more simple so that the customer can understand the product according to their needs. 7. There should be more executive especially inbig and crowded branches in the main part of the town. 8. Special schemes should be provided for small scale sector business employees as well new package of offers and discounts should be provided for high network people

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ANNEXURE
5.4 Questionnaire

1. Name ______________________________________

2. Age

20-30 30-40 40<

3. Gender

Male Female 4. Marital Status


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Single 5. Net Take Home Salary Level

<Rs.15, 000 Rs.15, 000-Rs 30, 000 > Rs.30, 000 6. How important is it for an employee to greet you with a smile?

Very important Somewhat important Not so important Not at all important

7. How important is the Easy monthly Installment to you?

Very important Somewhat important Not so important Not at all important 8. How important are the bank Interest Rates according to you?
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Very important Somewhat important Not so important Not at all important 9. How important are the benefits and facilities provided by HDFC for personal loan to you?

Very important Somewhat important Not so important Not at all important

10. What is your level of satisfaction with respect to the executive services of the bank?

Highly satisfied Satisfied Neutral Dissatisfied


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Highly dissatisfied

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11. What is your level of satisfaction with respect to customer care measures undertaken by the bank?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

12. What is your level of satisfaction with respect to the quality of overall service provided by the bank?

Highly satisfied Satisfied Neutral Dissatisfied


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Highly dissatisfied

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13. What is your level of satisfaction with respect to special schemes offered by bank?

the

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

14. What is your level of satisfaction with respect to the response time for grievance handling?

Highly satisfied Satisfied Neutral Dissatisfied


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Highly dissatisfied

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15. What is your level of satisfaction with respect to the tenure period for the loan provided by the bank?

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

FAQ

Qu.1 What are the benefits of having a Salary Account for my Personal loan? Ans.1 You get preferred interest rates, priority processing and simpler documentation if you have a Salary Account with HDFC Bank. This is taken into account at the time of disbursal of the loan. You can pay through Standing Instructions to debit your HDFC Bank account with the EMI amount
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Qu.2 How much loan can I avail of? You can avail of a loan from Rs 50,000/- to Rs 15,00,000/- depending on your income and repayment capacity. You can club the income of your spouse if you wish to increase your loan amount

Qu.3 How do I repay my Personal loan? You pay the loan in equated monthly installments. The loan will be paid through postdated cheques or through Standing Instructions to debit your HDFC Bank account with the EMI amount. Calculate how much you will repay each month

Qu.4 What security do I need to provide to obtain this loan? To obtain the loan, there is absolutely no need to provide any security or collateral

Qu.5 What are the loan tenure options? You can repay your loan over a period of 12 to 60 months
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Qu.6 How long will it take for me to get my loan?

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Once you submit your application form and supporting documents, we shall give approval within 72 hours provided everything is in order. All loan approvals are at the sole discretion of the bank.

Qu.7 Can I repay the loan earlier? You can choose to repay your loan anytime after 6 months of availing the loan at a maximum pre-payment penalty of 4% of the principal outstanding on your loan.

BIBLIOGRAPHY

BOOKS AND MAGAZINES


 Marketing Management- Philip Kotler  India Today
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 In-house journals  Research Methodology

JOURNALS :
1. HDFC bank universe 2. Internal reports 3. Presentation material 4. Brochures

WEBSITES:
. 1. www.hdfcbank.com

2. www.google.co.in
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3. www.icicibank.com

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4. www.citibank.com

5. www.utibank.com

NEWSPAPERS
 The Times of India  The Economic Times  Business Standard

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