ACKNOWLEDGEMENT

It is a great opportunity for me to express my sincere thanks to Dr.

J.P.N Pandey (Principal) and Dr. Anand Tiwari (H.O.D), Dr. Naveen Gidion
(H.O.D)Govt. Girls Autonomous P.G. College of Excellence.
I would like to express my sincere thanks and indeptness to
Mrs. Shikha Urmil Khan for suggesting me formal methodology to conduct the
survey to prepare the report.
I am very thankful to all staff of my Faculty who support me in
the preparation of my project. Finally, I would like to thank my parents, my
friends and whole staff of Management department without whom the
completion of the project would not have been possible.
98
Ms. SRASHTI JAIN
B.B.A 1st SEMESTER
Batch No. 6

DECLARATION
I declare that the project report titled A PROJECT REPORT ON
COMPANY PROFILE OF HDFC BANK is my own work
conducted under the supervision Mrs. Shikha Urmil Khan Govt. Girls
Autonomous P.G. College of Excellence. To the best knowledge the report

does not contain any work which has been submitted for the award of
any degree, any where.
Signature of the Candidate
Ms. SRASHTI JAIN
B.B.A 1st SEMESTER
Batch No. 6

PREFACE
Iam pleased to present the project report on preparing Company
profile of HDFC Bank before my respect readers. It is a humble attempt from
my part to judge the Company Profile of HDFC Bank.
This study deals with a number of topics that will help the reader
understand and learn about company profile of HDFC Bank followed by the
line of objective and research methodology.
Next chapters deals with the assigned company profile followed by the
data analysis and interpretation that is based on the questionnaire.
Than come the conclusion suggestion and limitation of the research
reports.
Language of the reports is simple lucid attempts have been made to
arrange the subject matter in a systematic and well-knit style. Efforts have also
been made to deal with al topics precisely and gently.
Ms. SRASHTI JAIN
B.B.A 1st SEMESTER
Batch No. 6

CERTIFICATE
The project report on COMPANY PROFILE OF HDFC
BANK in Sagar city prepared by Ms. Srashti Jain student of B.B.A.
1st Sem for the partial fulfillment of the degree of B.B.A is satisfactory
in respect of under guidance of Mrs. Shikha Urmil Khan Department of
Business Management , Govt. Girls Autonomous P.G. College of Excellence.

Sign of supervisor

Sign of H.O.D

Sign of the examiner

CONTENTS
PREFACE
I.
II.
III.

ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION

S.No Topic or Chapter

Page No.

1.

Chapter -1
1. Industry profile of HDFC Bank
2. Company profile of HDFC Bank
3. Awards of HDFC Bank
4. Mission and Vision of HDFC Bank
5. Board of directors of HDFC Bank
6. Products of HDFC Bank

2.

Chapter- 2
1. Objectives of the study

3.

Chapter -3
1. Research Methodology

4.

Chapter -4
1. Data Analysis and Interpretation

Chapter- 5
1. Swot Analysis of HDFC Bank

6.

1. Limitations of the study

2. Recommendations
3. Findings
4. Suggestions
Conclusion

7.

IV.

Bibliography

V.

Questionnaire

INDUSTRY PROFILE
WHAT IS BANKING?

Bank

is

business

that

provides

financial

services

usually

for

profit.

Traditional banking Services include receiving deposits of money, lending money and
processing transactions. A commercial bank accepts deposits from customers and in turn
makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes as
legal tender. Many banks offer ancillary financial services to make additional profit; for
example: selling insurance products.

Banking is the business of providing financial services to consumers and businesses. The
basic services a bank provides are checking accounts, which can be used like money to make
payments and purchase goods and services; savings accounts and time deposits that can be
used to save money for future use; loans that consumers and businesses can use to purchase
goods and services; and basic cash management services such as check cashing and foreign
currency exchange. Four types of banks specialize in offering these basic banking services:
commercial banks, savings and loan associations, savings banks, and credit unions. A broader
definition of a bank is any financial institution that receives, collects, transfers, pays,
exchanges, lends, invests, or safeguards money for its customers.

This broader definition includes many other financial institutions that are not usually thought
of as banks but which nevertheless provide one or more of these broadly defined banking
services. These institutions include finance companies, investment companies, investment
banks, insurance companies, pension funds, security brokers and dealers, mortgage
companies and real estate investment trusts. This article, however, focuses on the narrower
definition of a bank and the services provided by banks in Canada and the United States. (For
information on other financial institutions, see Insurance; Investment Banking; and Trust
Companies.) Banking services are extremely important in a free market economy such as that
found in Canada and the United States. Banking services serve two primary purposes. First,
by supplying customers with the basic mediums-of-exchange (cash, checking accounts, and
credit cards), banks play a key role in the way goods and services are purchased.

Second, by accepting money deposits from savers and then lending the money to borrowers,
banks encourage the flow of money to productive use and investments. This in turn allows
the economy to grow. Without this flow, savings would sit idle in someones safe or pocket,
money would not be available to borrow, people would not be able to purchase cars or
houses, and businesses would not be able to build the new factories the economy needs to
produce more goods and grow. Enabling the flow of money from savers to investors is called
financial intermediation, and it is extremely important to a free market economy.
1.2 STRUCTURE OF INDIAN BANKING INDUSTRY

Organized banking was active in India since the establishment of the General Bank of India
in 1786. After independence, the Reserve Bank of India (RBI) was established as the central
bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by
the government to form state-owned State Bank of India (SBI). RBI had undertaken an
exercise to merge weak banks to strong banks and the total number of banks thus reduced
from 566 in 1951 to 85 in 1969.

With the objective of reaching out to masses and meeting the credit needs of all sections of
people, the government nationalized 14 large banks in 1969 followed by another 6 banks in
1980. This period saw enormous growth in the number of branches and the banks branch
network became wide enough to reach the weakest sections of the society in a vast country
like India. Sibs network of 9033 domestic branches and 48 overseas offices is considered to
be one of the largest for any bank in the world.

The economic reforms unleashed by the government in early nineties included banking sector
too, to a significant extent. Entry of new private sector banks was permitted under specific
guidelines issued by RBI. A number of liberalization and de-regulation measures aimed at
consolidation, efficiency, productivity, asset quality, capital adequacy and profitability have
been introduced by the RBI to bring Indian banks in line with International best practices.
With a view to giving the state-owned banks operational flexibility and functional autonomy,
partial privatization has been authorized as a first step, enabling them to dilute the stake of
the government to 51 per cent. The government further proposed, in the Union Budget for the
financial year 2000-01, to reduce its holding in nationalized banks to a minimum of 33 per
cent on a case by case basis.
The banking system can be broadly classified as organized and unorganized banking system.
The unorganized banking system comprises of moneylenders, indigenous bankers, lending
pawnbrokers, landlords, traders, etc. Whereas the organized banking system comprises of
Scheduled Banks and Non-Scheduled Banks that are permitted by RBI to undertake banking
business.
The Indian Banking Industry can be broadly classified into:
A. Public Sector Banks
B. Old and New Private Sector Banks
8

C. Foreign Banks
D. Co-operative Banks

A. Public Sector Banks

Public sector banks are banks where in the government has a holding of 100%.This been a
situation prior to liberalization. The stake has fallen because of a public issue in the post
liberalization period. Some of the other leading banks in this segment have also proposed to
come out with an equity issue to raise further capital. The government is proposing to bring
out a bill wherein its share in all these banks would stand reduced to 33% from the current
levels

The public sector banks largely dominate the Indian Banking industry. These banks till the
early 90s were involved in the traditional banking business of deposits and credit lending.
The public sector banks have a strong distribution network all over the country. But the
strength of the earlier periods has now become a concern for these banks. As compared to
the tech-equipped distribution network of the new private sector banks and the foreign
banks, these banks have found it difficult to upgrade them on the technology front. These
banks are also facing the problem of surplus manpower. Most of these banks are now
coming out with a VRS to bring down their number of employees and improve the
efficiency ratios.

The public sector banks still control a major share in the banking operations of the country.
Their inefficiencies have been exposed only when the market was thrown open for
competition and new players started eating up their share. But given their size and the
strong network, most of these banks can change their perception. The recent thrust on
reduction of government stake; VRS, NPA settlement schemes etc have been some of the
steps in this direction. Since the growth of the economy is largely dependent on the
performance of these banks, even with the growth of new private and foreign players, these
banks will have an important role to play. Some of the players here are State Bank of India
and its associates, Bank of Baroda, Corporation Bank, Punjab National Bank, Union Bank
of India, etc.

B. Old and New Private Sector Banks

Private Sector Banks-Old

These banks existed prior to the promulgation of Banking Nationalization Act but were not
nationalized due to their smaller size and regional focus. Most of these banks continue to
have a regional focus and are relatively smaller in size. A large number of these banks are
basically from the south. Being small in size, these banks focus on service and technology
and thus face competition from new private and foreign banks. Most of these banks are
trying to increase their presence nationwide and are planning to enter other business areas
like insurance.

The old private sector banks have performed reasonably well during the FY2000. As these
banks were facing stiff competition from the new private banks and the foreign players who
were making inroads in their markets,
these banks have been able to increase their net profits by over 50%. As a result of the
increasing competition in the sector, these banks have been trying to improve upon their
margins and asset quality. Most of these banks have a high CAR and as such they do not
face any capital constraint in their growth plans. Even their return on net worth has been at
par in most of the cases with the other new players in the market. But the coming years
would be more challenging for these banks as the public sector are also trying to adapt to
the new environment and the new banks have already equipped themselves to have a major
share in any opportunity that would accrue.

Some of the private sector-old players are Bank of Madura Ltd., Tamilnad Mercantile Bank
Ltd., The Jammu & Kashmir Bank Ltd., The Vysya Bank Ltd., etc.
Private Sector Banks- New

The Banking Regulation Act was amended in 1993 permitting the entry of new private
sector banks. The act also specified certain criteria for establishing new private sector
banks. The criteria are as follows:

1. The banks should have a minimum net worth of Rs1bn.

10

2. The promoters holding should be minimum 25% of the paid up capital.

3. The banks should offer shares to the public within three years of their operations.

The first new private sector bank started operations in 1995. The minimum net worth
requirement of Rs1bn and difficulty in getting the banking license has kept the option open
for very few players.

The financial institutions have promoted many of these banks. With emphasis on service
and technology, it is for the first time that Indian banks are challenging the foreign banks.
These banks are making heavy use of technology to give good service on par with foreign
banks but to a much wider audience e.g. branch size has been reduced considerably by
using technology and having less manpower. This saves the cost of the branch. In addition
the ATM etc helps drawing large customers to one branch.

The new private banks have been consistently gaining market share from the public sector
banks. The major beneficiary of this has been corporate clients who are most sought after
now.

The new private sector banks have performed very well in the FY2000.Most of this banks
have registered an increase in net profits of over 50%.They have been able to make
significant inroads in the retail market of the public sector and the old private sector banks.
During the year, the two leading banks in this sector had set a new trend in the Indian
banking sector. HDFC Bank, as a part of its expansion plans had taken over Times Bank.
ICICI Bank became the first bank in the country to list its shares on NYSE.

Some of the private sector-new players include, Centurion Bank Ltd., Global Trust Bank
Ltd., HDFC Bank., ICICI Banking Corporation Ltd., IDBI Bank Ltd., etc.

C. Foreign Banks

Foreign banks have been doing the normal banking business in the country. During the
period of nationalization, the entry of new foreign banks and expansion by existing foreign
banks were prohibited. Even, when the norms were relaxed later on, RBI was very slow in
granting any further approvals to these banks. But most of these banks have concentrated
11

on the metropolitan cities of the country and have been able to do reasonably well. These
banks have used the latest technology to compensate for the limited number of branches
they have.

In the post liberalization period, there has been a sharp increase in the total business done
by the foreign banks. A number of new players have entered and the existing players have
consolidated their position in the market. In the last couple of years, some of the foreign
banks have entered the retail segment and introduced a number of new products in the
market. This has intensified the competition in the banking sector and has made most of the
old players rethink their strategy.

Some of the foreign banks operating in India are ABN-AMRO Bank N.V., ANZ Grind lays
Bank Ltd, Citibank N.A., Deutsche Bank AG, Standard Chartered Bank, etc.

D. Co-Operative Banks

Co-operative banks are a part of the vast and powerful superstructure of co-operative
institutions, which are engaged in the tasks of production, processing, marketing, and
distribution, servicing, and banking in India. The co-operative banks were conceived in
order to substitute unorganized money market agencies like moneylenders, to provide
adequate short-term and long-term institutional credit at reasonable rates of interest, and to
bring about integration of the unorganized and organized segments of the money market.

The main aim of the co-operative banks is to provide cheaper credit to their members, and
not to maximize their profits. There has been an impressive growth in deposits, credit and
working capital of these banks. The annual rates of growth of co-operative banks have been
quite high, and are comparable with those of commercial banks. The government and the
RBI have taken a number of steps to improve the health and strength of co-operative banks
in India. In keeping with other financial sectors reforms, certain co-operative banking
reforms also have been carried out after 1991.

12

1.3 CURRENT SCENARIO

A. PUBLIC SECTOR BANKS

SBI Group: State Bank of India with its seven associates banks command the largest banking
resource in India. SBI and its associates banks are:

1 State Bank of India

2 State Bank of Bikaner & Jaipur
3 State Bank of Hyderabad
4 State Bank of Indore
5 State Bank of Mysore
6 State Bank of Patiala
7 State Bank of Saurashtra
8 State Bank of Travancore

After the amalgamation of new bank of India with Punjab national bank, currently there are
18 nationalized banks in India:

> Allahabad bank

> Syndicate Bank

> Andhra bank

> Union Bank of India

> Bank of Baroda

> United Bank of India

> Bank of Maharashtra

> UCO Bank

> Canara bank

> Vijaya Bank

> Central bank of India

> Indian Overseas Bank

> Corporation bank

> Oriental Bank Of Commerce

> Dena bank

> Punjab and Sind Bank

> Indian bank

> Punjab National bank

B. PRIVATE SECTOR BANKS

Bank of Rajasthan

> ING Vysya Bank

Indian Overseas Bank

> Jammu & Kashmir Bank

Catholic Syrian Bank

> Karnataka Bank

13

 Centurion Bank of Punjab

> Karur Vysya Bank

Dhanalaxmi Bank

> Kotak Mahindra Bank

Federal Bank

> South Indian Bank

HDFC Bank

> Tamilnad Indian Bank

ICICI Bank

> Axis Bank

IDBI Bank

> Indusind Bank

C. FOREIGN BANKS
ABN AMRO Bank

> Deutshce Bank

Abu Dhabi Commercial Bank Ltd

> HSBC

Bank of Ceylon

> JPMorgan Chase Bank

BNP Paribas Bank

> Standard Chartered Bank

Citi Bank

> Scotia Bank

China Trust Commercial Bank

> Taib Bank

Currently (2011), overall, banking in India is considered as fairly mature in terms of supply,
product range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. Even in terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent balance sheets-as compared
to other banks in comparable economies in its region. The Reserve Bank of India is an
autonomous body, with minimal pressure from the government. The stated policy of the Bank
on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has
mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially
in its services sector, the demand for banking services-especially retail banking, mortgages
and investment services are expected to be strong. M&As, takeovers, asset sales and much
more action (as it is unraveling in China) will happen on this front in India.

14

PROFILE OF HDFC BANK

2.1 ABOUT HDFC GROUP
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and ChairmanEmeritus, of HDFC Group who left this earthly abode on November 18, 1994. Born in a
traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at
Harkisandass Lukhmidass a leading stock broking firm. The firm closed down in the late
seventies, but, long before that, he went on to become a towering figure on the Indian
financial scene.

In 1956 he began his lifelong financial affair with the economic world, as General Manager
of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose
to become Chairman and continued so till his retirement in 1972.

At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious
than his first. His vision for mortgage finance for housing gave birth to the Housing
Development Finance Corporation it was a trend-setter for housing finance in the whole
Asian continent.

He was also a writer in his own right. There are over 200 published articles by him.
In 1992, the Government of India honored him with the Padma Bhushan Award. The London
School of Economics & Political Science conferred on him an Honorary Fellowship. He was
one of the Founder Members of the Centre for Advancement of Philanthropy, and its
Chairman till 1993.
15

2.2 LIST OF ENTERPRISES

Enterprises under common control of the promoter:

HDFC Bank Ltd.

HDFC Asset Management Company Ltd.

HDFC Standard Life Insurance Company Ltd.

HDFC Developers Ltd.

HDFC Holdings Ltd.

HDFC Investments Ltd.

HDFC trustee Company Ltd.

HDFC Finance Ltd.

HDFC Chubb General Insurance Company Ltd.

HDFC Venture Capital Ltd.

2.3 ABOUT HDFC BANK

The Housing Development Finance Corporation (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 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

HDFC Bank, the pioneer of the retail-banking movement in India, is one of the fastest
growing and most profitable banks in India with a strong urban presence. The bank, with a
market share of 2.5% has a wide reach across the country with a branch network of 425
branches and 950 ATMs. Strong understanding of the retail sphere (46% of total advances in
9mFY05) and technology initiatives has made the bank the second largest private sector bank
in the country. The bank has largely outpaced the sector growth over the last few years, but of
late the growth momentum has been subdued due to competitive reasons.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 250 branches spread over 135 cities across the country. All branches are linked to each
other through an online real- time basis. Customers in 80 locations are also serviced through
16

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 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.

The Bank also has a chain of over 800 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.
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. The entire 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 required for a world-class bank. In terms
of software, the Corporate Banking business is supported by Flex cube, while the Retail
Banking business by Fin ware, both from i-flex Solutions Ltd. The systems are open, scalable
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.

The Bank has received recognition both nationally and internationally for 'The Best Bank' on
various parameters in publications like Euro money and Finance Asia.

The Bank's IT department has total staff strength of 120 (approx.), with a mix of functional
and technical specialists. The project managers for new IT initiatives are designated both
from this group and from businesses. Almost all the project development and application
maintenance activities are outsourced to IT vendors.

17

2.4 HISTORY OF THE BANK

HDFC was incorporated in 1977 with the primary objective of meeting a social need that of
promoting home ownership by providing long-term finance to households for their housing
needs. HDFC was promoted with an initial share capital of Rs. 100 million.
Against the milieu of rapid urbanization and a changing socio-economic scenario, the
demand for housing has grown explosively. The importance of the housing sector in the
economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total demand for housing is estimated at 2 million units per year and
the total housing shortfall is estimated to be 19.4 million units, of which 12.76 million units is
from rural areas and 6.64 million units from urban areas. The housing industry is the second
largest employment generator in the country. It is estimated that the budgeted 2 million units
would lead to the creation of an additional 10 million man-years of direct employment and
another 15 million man-years of indirect employment.
MILE STONES
Acquired Times Bank in merger from Times Of India Group (5 6% present holding)
in 2000.
HDFC owns only 24.4%, rest owned by public and private equity investors JP
Morgan Chase (5 -6%).
Large Foreign Institutional Investors (in India) including Putnam, etc. (big vote in
Indian equity markets) 10-11%
Warburg Pincus has a significant holding in HDFC (its promoter)

Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002), the
National Housing Policy has envisaged an investment target of Rs. 1,500 billion for this
sector. In order to achieve this investment target, the Government needs to make low cost
funds easily available and enforce legal and regulatory reforms.
2.5 MISSION
HDFC Bank's mission is to be a world-class Indian Bank. The Bank's aim is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services in the segments that the bank operates in 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 and regulatory compliance. HDFC
18

Bank's business philosophy is based on four core values: Operational Excellence, Customer
Focus, Product Leadership and People.

2.6 GOAL AND OBJECTIVES

Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and to
promote home ownership. Another objective is to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall domestic financial
markets.
Organizational Goals
Develop close relationships with individual households,
Maintain its position as the premier housing finance institution in the country,
Transform ideas into viable and creative solutions,
Provide consistently high returns to shareholders, and
To grow through diversification by leveraging off the existing client base.

2.7 ORGANIZATIONAL CULTURE & VALUES

HDFC Bank has an open and informal culture. HDFC Bank has value integrity, commitment
and teamwork and excellence in customer service. HDFC adopts a policy of learning by
doing which encourages decision making as well as learning from doing.

As HDFC Bank continue to grow rapidly in spite of the competitive market scenario, young
professionals opting to make a career with HDFC Bank today will find more challenging and
exciting opportunities to contribute and grow with them.

If you are young, talented individual who enjoys challenges, has a passion to excel and can fit
into our organizational culture & value system, you could be a part of learning and growing
team of professionals at HDFC Bank.

19

HDFC Bank has always been market-oriented and dynamic with respect to resource
mobilization as well as its lending programmed. This renders it more that capable to meet the
new challenges that have emerged. Over the years, HDFC Bank has developed a vast client
base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal
and satisfied client base for future growth. Internal systems have been developed to be robust
and agile, to take into account changes in the volatile external environment.

HDFC Bank has developed a network of industries through partnerships with some of the
best institutions in the world, for providing specialized financial services. Each institution
fine tuned for a specific market, while offering the entire HDFC customer base the highest
standards of quality in product design, facilities and services.
2.8 BOARD OF DIRECTORS
ORGANISATION AND MANAGEMENT

HDFC is a professionally managed organization with a board of directors consisting of

eminent persons who represent various fields including finance, taxation, construction and
urban policy & development. The board primarily focuses on strategy formulation, policy and
control, designed to deliver increasing value to shareholders.

Board of Directors

BOARD OF DIRECTORS
Managing Director

Mr.Aditya Puri

Director

Mr.Arvind Pande

Director

Mr.Ashim Samanta

Director

Mr.C M Vasudev

20

Director

Mr.Gautam Divan

Executive Director

Mr.Harish Engineer

Chairman

Mr.Jagdish Capoor

Director

Mr.Keki M Mistry

Director

Mr.Pandit Palande

Executive Director

Mr.Paresh Sukthankar,

Director

Mr.Renu Karnad

Director

Mr.Vineet Jain

SHARE HOLDING PATTERN

Share Holding Pattern

Indian Promoters

24.20%

Foreign collaborators

13.10%

Indian inst/Mut Fund

2.10%

FIIs/GDR

26.90%

Free float

33.70%

Shareholders

215,630

HDFC has a staff strength of 1029, which includes professionals from the fields of finance,
law, accountancy, engineering and marketing.

21

2.9 AWARDS & ACHIEVEMENT

Euro money 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 '
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: Feb. 50 companies in Asia Pacific
Asian Banker Excellence in Retail Financial Services: Best Retail Bank 2008
Asia money: Best local Cash Management Bank Award voted by Corporate
Microsoft & Indian Express Group: Security Strategist Award 2008
World Trade Center Award of honor: 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
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

22

2.10 PRODUCTS OF THE BANK

SAVINGS ACCOUNTS

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.

TYPES OF SAVINGS ACCOUNTS

(1) Regular
(2) Savings Max
(3) Institutional Savings
(4) No frills
(5) Senior citizens A/C.
(6) Kids advantage
(7) Corporate Salary

TYPES OF SALARY ACCOUNTS

(1) Classic
(2) Regular
(3) Payroll
(4) Premium
CURRENT ACCOUNTS
Now, with an HDFC Bank Current Account, experience the freedom of multi-city banking!
You can have the power of multi-location access to your account from any of our 684
branches in 316 cities. Not only that, you can do most of your banking transactions from the
comfort of your office or home without stepping out.

23

TYPES OF CURRENT ACCOUNTS

(1) Regular
(2) Current Plus
(3) Current Trade
(4) Current Premium
(5) Bank Flexi
(6) Bank Apex
(7) Bank Max
FIXED DEPOSITS

Long-term investments form the chunk of everybody's future plans. An alternative to simply
applying for loans, fixed deposits allow you to borrow from your own funds for a limited
period, thus fulfilling your needs as well as keeping your savings secure.

(1) Regular fixed deposits

(2) Super saver fixed deposits
(3) Sweep in fixed deposits
(4) 5 year tax savings fixed deposits
DEMAT ACCOUNT

HDFC BANK is one of the leading Depository Participant (DP) in the country with over 8
Lac Demat accounts.
HDFC Bank Demat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with -National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL).
NRI ACCOUNTS
(1) NRE savings account
(2) NRO savings account
24

 CARDS

Our range of Cards helps you meet your financial objectives. So whether you are looking to
add to your buying power, conducting cashless shopping or budgeting your expenditure, you
will find a card that suits you.

CREDIT CARDS

(1) Silver Card

(2) Gold Card
(3) Platinum Card
(4) Titanium Card
(5) Womens gold credit card

DEBIT CARDS

(1) Easy shop international debit card

(2) Easy shop gold debit card

PREPAID CARDS
(1) Forex Plus card
(2) Gift Plus card
INVESTMENT AND INSURANCE

(1) Mutual Funds

(3) Bonds

(2) Insurance

(4) Mudra Gold Bar

25

OBJECTIVES OF THE STUDY

To know about company profile of company.
To know about market trends of the company.
To know about all the product profile of the company.
To know about policies adopted by HDFC.
To know about documentation required for HDFC Bank in account
opening.

26

RESEARCH AND METHODOLOGY

Research methodology:
The Research methodology used for the study was very rigorous. Questionnaires were made,
interviews with customers were held and various books and websites were consulted for any
type of information related to the study. The methodology so applied is briefly discussed
below step-by-step.
Therefore Marketing research can be defined as the systematic design, collection,
analysis, and reporting of the data and finding relevant to a specific marketing situation
facing the company.

Research Design:
Research design is the basic plan which guides the researchers in the collection and
analysis of data required for practicing the research product. In fact the research design is
the conceptual structure with which research is conducted. It consist the blue print for the
collection, measurement and analysis of the data that was followed completing the study to
ensure that study is relevant to the problem and will follow the predetermined and set data.

Type of Research Design:

Descriptive research: - Descriptive research provides data about the population or universe
being studied. Descriptive Research is used when we are interested in knowing the
characteristics of certain groups such as age, sex, educational level, occupation etc. But it can
only describe the "who, what, when, where and how" of a situation, not what caused it.
Descriptive research is used when the objective is to provide a systematic description that is
as factual and accurate as possible.

DATA COLLECTION TECHNIQUES

PRIMARY SOURCE:
The data required for this stage was regarding the customer relationship and the behavior and
perception of the existing customers towards the products/ services provided by the bank and
also, to get their satisfaction level toward bank. The data could have been collected by just
interviewing the customers but to get a reasonable conclusion and fair accuracy,
questionnaires were prepared and customers were interviewed.
27

Interview was regarding the product usage. Some of the questions asked in the interview
were, do you have knowledge about the various products provided by the bank, do you use
these products, yes/no then why, do you want any changes in the existing product, will you
switch over to another bank for a new products/services which is not yet introduced in HDFC
Bank, etc.
The above questions were really helpful in the conclusion part of the study. Some customers
were very co-operative but some didnt even care to listen. Overall, the study was a success
as far as primary source was concerned.

SECONDARY SOURCE:
The secondary data was collected with the help of various books, websites, bank journal and
employees of the bank. The data collected from the websites and books was good enough to
be included in the study analyzed and concluded but the data got from the employees of the
bank was most accurate and reliable. Various newspapers, magazines, websites, bank
Journals, etc were checked out for information regarding the latest technological
advancement in retail banking in the bank.
The secondary source didnt provide any personal views of the customers on the
technological advancements but were a great help in completing the report and getting the
details about the bank history, various business groups of the bank, etc.

SAMPLE DESCRIPTION:
Sample Method: Random sampling was chosen as the sample selection procedure.
Sample universe: My sample universes for research are customer of Sagar city.
Sample unit: The respondents (50 Respondents) who were asked to fill out questionnaires
are the sampling units. These comprise of Govt. Employees, Self Employed, professionals,
housewives etc.
Sample Frame: Sample frame of this project is Existing customers of HDFC Bank.
Sample size: The sample size was taken to be 50 customers. Some of the customers were
interviewed individually everyday and asked to fill the questionnaires.
Random sampling was the best sample selection procedure as individual customers in the
bank were chosen and requested to take out some time for an interview and filling of the
questionnaires.

28

DATA ANALYSIS AND INTERPRETATION

1.The following chart shows that respondents having what type of account in HDFC bank

1) What type of account do you have in HDFC

bank?
40
35

37%

30
25

Savings A/C
24%

20
15

21%
18%

Current A/C
Both Saving&Current A/C
Other

10
5
0
accounts

INTERPRETATION

Above graphical representation shows that 37% of them are having saving account. Least of
them are having current account.

29

2.The following chart shows that the numbers of customers having account for many long
time.

2. Since how long you are having account

with HDFC Bank?
46

50
45
40

35

35

0-1 Years

30

1-2 Years
19

25

2-3 Years

20

3 an Above

15
10
0

5
0
Time Period

INTERPRETATION

Above graphical representation shows that 46% of them are possessing account in HDFC
Bank since last 1-2 years.

30

3. The following chart shows that respondents having what total numbers of account in
HDFC bank.

3. How many accounts you and your family have

in HDFC bank?
14%
16%

1 Account

42%
28%

2 Accounts
2-4 Accounts
4 and Above

INTERPRETATION

Above graphical representation shows that 42% customers are having single accounts.

31

4. The following chart shows that customer holding total numbers of Products with them of
HDFC bank.

How many HDFC Products do you hold?

18%
26%
1 Product
2 Products

14%

3 Products
4 and above Product

42%

INTERPRETATION

Above graphical representation shows that 42% of customer holding more than two products

32

5 .This charts shows the percent of customer making investments in HDFC Bank and where
they have invested their money.

5.Have you made any type of

investment with HDFC Bank?
Yes

36%

No
64%

If yes than in.

20, 23%
34, 40%
Fixed Deposit
Life Insurance
Mutual Fund

32, 37%

INTERPRETATION
In this chart, it is shown that 36% dont make any type of investments and 64% of customers
make investments in HDFC Bank and out of 64% of customers 40 % do fixed deposits, 37%
makes life insurance and 23% invest in mutual funds.
6.Chart shows the percent of customer using credit card of HDFC Bank.

33

1. Do you hold any type of credit card?

6.Do you hold any type of credit card?

37%
Yes
No
63%

INTERPRETATION

Above graphical representation shows that 37% of customers having Credit cards of HDFC
Bank and 63% have not taken any type of Credit card.

34

7. This chart shows the percent of customer taken loan from HDFC Bank.

7.Have you taken any type of loan from

HDFC bank?

39%
Yes
61%

No

INTERPRETATION

Above graphical representation shows that 39% of customers have taken loan form HDFC
Bank and 61% have not taken any type of loan.

35

8. This Question shows that the numbers customers currently using services of HDFC Bank
and option where given of multiple choice.

8.Tick mark on services you are currently using from

HDFC bank?
90
80

81

70

Debit Card

69
60

Cedit Card
50
40
30
20

Net banking

48

Pnone/Mobile
Banking
Insta Alert

37
24
19

NEFT

10
0
Services using

INTERPRETATION
Above graphical representation shows that majority of customers using debit card i.e.81,
while the numbers of credit card customers are 37, 48 and 69 of customers avails the benefit
of net banking and Insta alert provided to them and 19 of them are using National Electronic
Fund Transfer (NEFT) mainly this type of services current account users are using and 24
number of customer using phone/mobile banking.

36

9. This question shows percentage of customers why do preferred HDFC Bank for opening of
an account with them and the option where given of multiple choice.

Why you have preferred this particular bank

for opening an account?
(multiple choice answers)
62, 24%
79, 31%
Due to brand name
Due to existing account holder
Less documentation
22, 9%

Less processing time

Near to your place
For features and benefits
27, 11%
48, 19%
16, 6%

INTERPRETATION

Above graphical representation shows that most of them go for brand name i.e. 32%, 11 %
opened an account with the reference of existing holder, after that 24% of customers are
attracted toward facilities and benefits, 19 % for less processing time because when their
funds come to banks transaction is quickly, only 9 % preferred because bank is near their
home or offices.

37

10. This question shows percentage of customers rating the relationship effort adopted by
HDFC Bank.

10.Please rate the following relationship efforts of HDFC Bank

100%
90%

0
18%

80%
70%

11%

6%

8%

19%
26%

16%
36%

60%

30%

39%

10%

39%
25%

18%

Average
Good

28%

20%

Very Poor
Poor

37%

50%
40%

12%

26%
13%

Excellent
23%

0%
Query
handling by
officials

Information Promptness in Priority in

about new
service
service
service

INTERPRETATION

In this chart, it is shown that relationship effort adopted by Bank and customer are asked to
rate on Query handling, Information about new services, Promptness and Priority in services.
It is seen that in query of handling by officials as 18% of customer marked as excellent, good
28% average 36% , on , Information about new services

38

FINDINGS
Most of the customers of the bank are satisfied, but there is a minority of customers
who are still looking for improvement in this aspect of service area as well in the field
of working environment.
One area of strength of the bank which it can really boast off as most of the customers
are satisfied when it comes to customer care.
Overall the result of survey has shown a positive sign for the overall services
from where on they can increase their customer base with the exception of a
few dissatisfied customers which needs to be looked after.
The bank has caused a lot of inconvenience to the customers regarding its
banking hours as shown from the result of the survey. Flexible banking hours
should be achieved to attain higher customer satisfaction again lot of them are
even satisfied .
There is a mixed response when it comes to transaction time. A certain section or
respondents seem to be satisfied but a substantial number of customers are looking for
faster transaction time.

39

RECOMMENDATIONS

1. The environment of the bank can be made more customers friendly and the working of the
bank should be more organized and efficient by training the employees of the bank.
2. Improving customer care facilities by providing 24 hours banking facilities more effective.
3. More number of CURRENT ACCOUNTS With different features are looked forward from
public.
4. Proper and general instruction about the maintenance and working of current account and
its benefits should be made clearer.
5. The banking hours should be more customers friendly it should close little later in the
evening.
6. The banking process needs to be more systematic so that the transaction time can be
reduced.
7. There should be more branches especially in smaller towns and cities .
8. Special schemes should be provided for smaller retail shops as well new package of
offers and discounts should be provided for high network people and senior citizens .

40

CONCLUSION
Hence, I conclude by understanding that marketing concepts is essentially about the few
things which contribute to the banks success:

The bank cannot exist without customer.

The purpose of a bank is to create, win and keep a customer. The customer is and
should be the central focus of everything the bank does.

Ultimate aim of a bank is to deliver satisfaction to the customers.

Customer satisfaction is affected by the performance of all the personnel of the bank.

It is also a way of organizing the bank. The starting point for the organizational design should
be the customer and the bank should ensure that the services are performed and delivered in
the most effective way. Service facility should also be designed for customer convenience.

41

BIBLIOGRAPHY
MAGAZINES
India Today
Business world, Economic Times, Business world, Money regulator and Business Line

NEWSPAPERS
The Times of India
The Economic Times
Business Standard

INTERNET
www.hdfcbank.com
www.google.com
www.wikipedia.com
www.scribd.com

42

Questionnaire
Customer Name:
Age:.
Occupation:
Address:..
Q1. What type of account do you have in HDFC Bank?
a. Saving account

b. Current account

c. Both account

Q2. Since how long you are having account in HDFC Bank?
a. 0-1 yrs

b. 1-2 yrs

c. 2-3 yrs

d. 3 an above

Q3. How many accounts you and your family have in HDFC Bank?
a. one

b.two

c. three

d. above three

Q4. How many HDFC product do you have?

a. One

b. Two

c. Three

d. Above 4

Q5. Have you made any type of investment with HDFC Bank?
a. Fixed Deposit

b. Life insurance

c.Mutual funds

Q6. Do you hold any type of credit card of HDFC Bank?

a. Yes

b. No

Q7. Have you taken any type of loan from HDFC Bank?
a. Yes

b. No

Q8. Which type of service do you have from HDFC Bank?

a. Debit card

b. Credit card c. Net banking d. Mobile banking

Q9.Why you are prefer HDFC Bank for open a account?

a. Due to brand name

b. Due to existing account holder

d. Less processing time

e. Near to your place

43

c. Less documentation