IN COMPANY TRAINING REPORT

ON
MARKETING STRATEGY OPTED BY HDFC BANK.

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT

OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) GURU
JAMBHESHWAR UNIVERSITY, HISAR

TRAINING SUPERVISOR

SUBMITTED BY:

ROHIT RANJAN

VIDIT MEHRA

(BRANCH MANAGER)

ENROLLMENT NO.:
07511213111

SESSION: 2009-2010

DIRECTORATE OF DISTANCE EDUCATION

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY
HISAR-125001

ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report. I am grateful to all of them for their time,
energy and wisdom.
Getting a project ready requires the work and effort of many people. I would like all those
who have contributed in completing this project. First of all, I would like to send my sincere
thanks to MR. ROHIT

RANJAN for his helpful hand in the completion of my project.

VIDIT MEHRA

ii

STUDENT DECLARATION

I, VIDIT MEHRA, class BBA of GURU JHAMBESHWAR

UNIVERSITY
HISSAR

OF

hereby

SCIENCE
declare

that

AND
the

TECHNOLOGY,
project

entitled

MARKETING STRATEGIES OF HDFC BANK is an

original work and the same has not been submitted to any
other institute for the award of any other degree

CANDIDATE SIGNATURE

iii

EXECUTIVE SUMMARY
The project was carried out for understanding the customer preference &
attributes towards of HDFC Bank and its market potential. HDFC Bank was
established in the year 1994, they are old player in banking sector, The bank
has two principle client segments customer and asset management. The
bank follows values such as Integrity, teamwork, respect, professionalism, &
Mission. The segment of bank we are considering here is- Corporate banking.
The product out of which have chosen for research is Saving Accounts. This
research helps us in finding out the customers view regarding the product and
Services offered by the HDFC bank and awareness by promotion and also
identifying the market potential of the product offered by the HDFC bank.

iv

TABLE OF CONTENTS

CHAPTER :-1 Introduction to the Industry

CHAPTER :-2 organisation structure and company profile

13

CHAPTER :- 3 Objective of the Study

CHAPTER :-4 Research Methodology

CHAPTER :-5 Analysis of Problem

CHAPTER :-6 Data Analysis and Interpretation

CHAPTER :-7 Recommendation

27
28

30

45

55

Conclusion

56

Bibliogrpahy

57

Questionnaire

58

INTRODUCTION TO THE INDUSTRY

Evolution of Indian Banking Industry
Organised 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 stateowned 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 nationalised 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.
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
liberalisation 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.
The Current Scenario
Currently there are 222 banks in India operating through 68,681 branches. In
the past few years, the country has seen the advent of a plethora of private
and foreign banks in a land which was once dominated by the public sector
banks. This has further intensified competition in an industry where products
are getting harder to differentiate and customer retention even more difficult.
The present day demands of customers of banks are so ever increasing that
bankers are constantly on the look out for better products and maximising

service quality in their customer outlets. To put it in other words banks are
constantly in search of Product Innovation and Process Innovation to satiate
the demands of their clientele and thereby offer superior customer service.
2. DEFINING CUSTOMER, SERVICE & CUSTOMER SERVICE
Who is a customer?
The word customer has been derived from "custom," meaning, "habit. As per
the literal meaning, a customer is someone who is in the habit of buying or
receiving goods or services from the same business organisation. But in
todays world it has much more meaning than the old one. A customer is
someone who makes use of or receives the products or services from an
individual or organization. In a general term a customer is a person who has
some regular commercial dealing.
Incase of banks, a customer is a person who has an account with the bank.
As per Section 131 of Negotiable Instruments Act, a bank gets protection
when it collects instruments (cheque, draft etc) for and on account of his
customer. And for a person to deposit cheque or instrument, he has to have
an account. Therefore, for a person to be a customer of a bank he has to
have an account relationship with the bank. However, in the present changing
scenario when the extent scope of banking is enlarging, this definition of
having an account appears to be very narrow. Banks provide many services
for which account relationship is not at all required, say for example for
purchasing a bankers cheque, demand draft or travelers cheque.
In the modern era, banks are making use of print and other technological
media for advertisement of their products and services. These are the offers
to masses for making use of their multiple products. Therefore, the definition
of a customer has widened, and he can be broadly classified in to three
categories.
1. Those who have account relationship with bank.
2. Those who do not have account relationship, but use the services
provided by banks.

3. Those who have been motivated to deal with banks by advertisement,

personal contacts etc., they are prospective customers.
What is service?
Service is an activity or benefit that one party offers to another that is
essentially intangible and does not result in the ownership of any thing. It is
nothing but selling of satisfaction. It is a feeling, which a person gets while
dealing with an organisation. It can be experienced but cannot be seen.
Services are people based, therefore they are highly variable and inseparable
from the source i.e. employees. It is about people thinking about taking care
of people. In economics and marketing, a service is the non-material
equivalent of goods. Service is an ongoing process.
What is Customer Service?
Customer service is the set of behaviours that a business undertakes during
its interaction with its customers. It is the degree of assistance and courtesy
granted to those who patronize the organization. It is identification of
customers needs and expectations and what constitutes positive customer
satisfaction. It also includes the codes of ethics, etiquette, behaviour and
courtesy.The Service Triangle

Organization

Enabling promises

Making promises

Providers

Customers
Keeping promises

This service triangle is the part of the service delivery process. It simply
shows that every organization makes promises to its customers. It will be is
possible for the providers of an organization to keep promises only when the
organization enables it. i.e. it is the managements/companys initiative to
reach for the highest form of service by making it possible for the working
team/management to fulfill the promises made.
In the era of technologically backed competition, awareness level of
customers is increasing day by day. Customers have wider choice of products
and services. Expectations of customers from banks are increasing. The
concept of generation to generation banking has also undergone changes.
Customers loyalty is conditioned by the quality of products and its delivery
mechanism i.e. service. All these have necessitated the banks to provide
better and excellent customer service.
3. KEY FACTORS & TRENDS FOR CUSTOMER SERVICE IN BANKS
A. Human Resource Extending the Personal Touch in Customer
Service
Quality services can be provided by quality people and quality people can be
carved by quality human resource personnel and the quality human resource
personnel are made by the pro-active human resource management
policies/practices. The quality of service determines the market share. Quality
is the watchword in the present day environment. A common man in India
having developed awareness about quality and banking system is no
exception. The new private and foreign banks are laying total emphasis on the
quality, innovation and convenience. As a result of which, they have been able
to penetrate into market share of public sector banks. This has also increased
the aspirations and expectations of the bank customers who expect similar
services from all banks. The emotional loyalty has given place to the
convenience and cost of services, which the bank can provide. It is
apprehended that if public sector banks fail to meet the quality standard, they
are likely to slip further in terms of their market share. The quality and cost of
services shall be the guiding factor for future growth.

Banking is a service industry and delivers its service across the counter to the
ultimate customer. The activities of banking industry are all about relationship.
Hence, human resource assumes a very important role in the banking
industry for providing better services to the customer with a smile in order to
cultivate and maintain long lasting relationship with their customers. Notwithstanding the level of technology, banking is primarily a labour intensive
service sector. Hence it will not be possible for the banks to sustain
effectiveness unless human resource management is given prime importance
because the technology is only an aid to human-effort and not a substitute
thereof.
A customer deals with people who work in the bank premises. He does
business only with people.

The person dealing with the customer has

therefore to create positive impressions that are memorable and those

garners respect admiration and help in building confidence. Staff members
have to realise that every interaction with customer is an opportunity to make
positive impact on him. They have therefore to understand that "What you do
not want done to yourself, do not do to others Confucius. Once we keep in
mind the saying of Confucius it will automatically result in improvement in the
services.
Satisfaction and expectations move together. We cants deny that during the
yester decades, there have been multi-dimensional changes in the business
environment which has shown a major impact on our lifestyles. We find a
direct impact of disposable income on the discretionary income. Here it is
essential to make it clear that disposable income is that portion of the income
which is left in our hands after discharging the tax liability and the
discretionary income is that portion of the disposable income which is in our
hands after incurring the essential expenses, specially for managing food,
shelter, clothing, basic educational band medical aids. It is really the
discretionary income which affects the banking business since the income is
either spent on luxury items for managing the comfortable living conditions or
invested with the motto of earning interest and dividend. It is against this
background that upward trend in discretionary income creates a sound nexus

or a conductive environment for the development of banking business,

specially the mobilization of savings and deposits.
In the past, the commercial banks did not find any attraction in the Indian
economy because of the meager business prospects-and the low level of
income vis--vis the stagnating economic activities. Of late, we find good
auguries and feel that the Indian economy is moving ahead on the right path
which would make the business environment more conductive. No doubt in it
that the national development policy has made possible such a positive
change in the business environment that the intensity of competition is found
at its peak. Just after the beginning of the decade 1990s, we have witnessed
a basic change in the attitude of the policy makers which has compelled
almost all the organizations either producing goods or generating services to
innovate their policy decisions. This in a natural way has necessitated a need
more professional excellence so that a stage of fierce competition is accepted
as a challenge and necessary steps are taken to excel competition, increase
the market share and establish leadership.
COMPANY PROFILE
History of Standard Chartered Bank
The Standard Chartered Group was formed in 1969 through a merger of two
banks: The Standard Bank of British South Africa founded in 1863 and the
Chartered Bank of India, Australia and China, founded in 1853.
Both companies were keen to capitalise on the huge expansion of trade and
to earn the handsome profits to be made from financing the movement of
goods from Europe to the East and to Africa.
The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by

Queen Victoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta and

Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

Traditional business was in cotton from Mumbai (Bombay), indigo and

tea from Calcutta, rice in Burma, sugar from Java, tobacco from
Sumatra, hemp in Manila and silk from Yokohama.

Played a major role in the development of trade with the East which
followed the opening of the Suez Canal in 1869 and the extension of
the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the
Ionian Bank's Cyprus Branches. This established a presence in the
Gulf.

Organizational Structure of Banks in India:

In India banks are classified in various categories according to differ rent
criteria. The following charts indicate the banking structure:

Reserve Bank of India

Commercial Banks

Nationalized

Agricultural
Credit

Private

Urban
Credit

Co-operative Banks

Short-term
credit

EXIM

Development Banks

Long-term
credit

Industrial

Agricultural

Broad Classification of Banks in India:

1) The RBI: The RBI is the supreme monetary and banking authority in
the country and has the responsibility to control the banking system in

the country. It keeps the reserves of all scheduled banks and hence is
known as the Reserve Bank.
2) Public Sector Banks:

State Bank of India and its Associates (8)

Nationalized Banks (19)

Regional Rural Banks Sponsored by Public Sector Banks (196)

(3) Private Sector Banks:

Old Generation Private Banks (22)

Foreign New Generation Private Banks (8)

Banks in India (40)

(4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

In addition to its traditional central functions, the Reserve bank has certain
non-monetary functions of the nature of supervision of banks and promotion
of sound banking in India. The Reserve Bank Act, 1934, and the Banking
Regulation Act, 1949 have given the RBI wide powers of supervision and
control over commercial and cooperative banks, relating to licensing and
establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction and liquidation. The RBI is
authorized to carry out periodical inspections of the banks and to call for
returns and necessary information from them. The nationalization of 14 major

Indian scheduled banks in July 1969 has imposed new responsibilities on the
RBI for directing the growth of banking and credit policies towards more rapid
development of the economy and realization of certain desired social
objectives. The supervisory functions of the RBI have helped a great deal in
improving the standard of banking in India to develop on sound lines and to
improve the methods of their operation.
Promotional Functions:
With economic growth assuming a new urgency since Independence, the
range of the Reserve Banks functions have steadily widened. The Bank now
performs a variety of developmental and promotional functions, which, at one
time, were regarded as outside the normal scope of central banking. The
Reserve Bank was asked to promote banking habit, extend banking facilities
to rural and semi-urban areas, and establish and promote new specialized
financing agencies. Accordingly, the Reserve bank has helped in the setting
up of the IFCI and the SFC: it set up the Deposit Insurance Corporation of
India in 1963 and the Industrial Reconstruction Corporation of India in 1972.
These institutions were set up directly or indirectly by the Reserve Bank to
promote saving habit and to mobilize savings, and to provide industrial
finance as well as agricultural finance. As far back as 1935, the RBI set up the
Agricultural Credit Department to provide agricultural credit. But only since
1951 the Banks role in this field has become extremely important. The Bank
has developed the co-operative credit movement to encourage saving, to
eliminate money-lenders from the villages and to route its short term credit to
agriculture. The RBI has set up the Agricultural Refinance and Development
Corporation to provide long-term finance to farmers.
Co-operative Banks:
The Co-operative bank has a history of almost 100 years. The Co-operative
banks are an important constituent of the Indian Financial System, judging by
the role assigned to them, the expectations they are supposed to fulfill, their
number, and the number of offices they operate. The co-operative movement
originated in the West, but the importance that such banks have assumed in
India is rarely paralleled anywhere else in the world. Their role in rural
9

financing continues to be important even today, and their business in the

urban areas also has increased phenomenally in recent years mainly due to
the sharp increase in the number of co-operative banks. While the cooperative banks in rural areas mainly finance agricultural based activities
including farming, cattle, milk, hatchery, personal finance etc. along with some
small scale industries and self-employment driven activities, the co-operative
banks in urban areas mainly finance various categories of people for selfemployment, industries, small scale units, home finance, consumer finance,
personal finance, etc. Some of the co-operative banks are quite forward
looking and have developed sufficient core competencies to challenge state
and private sector banks.
According to NAFCUB the total deposits & lendings of Co-operative Banks is
much more than Old Private Sector Banks & also the New Private Sector
Banks. This exponential growth of Co-operative Banks is attributed mainly to
their much better local reach, personal interaction with customers, their ability
to catch the nerve of the local clientele. Though registered under the Cooperative Societies Act of the Respective States (where formed originally) the
banking related activities of the co-operative banks are also regulated by the
Reserve Bank of India. They are governed by the Banking Regulations Act
1949 and Banking Laws (Co-operative Societies) Act, 1965.
Modern banking in India could be traced back to the establishment of Bank of
Bengal (Jan 2, 1809), the first joint-stock bank sponsored by Government of
Bengal and governed by the royal charter of the British India Government. It
was followed by establishment of Bank of Bombay (Apr 15, 1840) and Bank of
Madras (Jul 1, 1843). These three banks, known as the presidency banks,
marked the beginning of the limited liability and joint stock banking in India
and were also vested with the right of note issue.
In 1921, the three presidency banks were merged to form the Imperial Bank of
India, which had multiple roles and responsibilities and that functioned as a
commercial bank, a banker to the government and a bankers bank. Following
the establishment of the Reserve Bank of India (RBI) in 1935, the central
banking responsibilities that the Imperial Bank of India was carrying out came

10

to an end, leading it to become more of a commercial bank. At the time of

independence of India, the capital and reserves of the Imperial Bank stood at
Rs 118 mn, deposits at Rs 2751 mn and advances at Rs 723 mn and a
network of 172 branches and 200 sub offices spread all over the country.
In 1951, in the backdrop of central planning and the need to extend bank
credit to the rural areas, the Government constituted All India Rural Credit
Survey Committee, which recommended the creation of a state sponsored
institution that will extend banking services to the rural areas. Following this,
by an act of parliament passed in May 1955, State Bank of India was
established in Jul, 1955. In 1959, State Bank of India took over the eight
former state-associated banks as its subsidiaries. To further accelerate the
credit to fl ow to the rural areas and the vital sections of the economy such as
agriculture, small scale industry etc., that are of national importance, Social
Control over banks was announced in 1967 and a National Credit Council was
set up in 1968 to assess the demand for credit by these sectors and
determine resource allocations. The decade of 1960s also witnessed
significant consolidation in the Indian banking industry with more than 500
banks functioning in the 1950s reduced to 89 by 1969.
For the Indian banking industry, Jul 19, 1969, was a landmark day, on which
nationalization of 14 major banks was announced that each had a minimum of
Rs 500 mn and above of aggregate deposits. In 1980, eight more banks were
nationalised. In 1976, the Regional Rural Banks Act came into being, that
allowed the opening of specialized regional rural banks to exclusively cater to
the credit requirements in the rural areas. These banks were set up jointly by
the central government, commercial banks and the respective local
governments of the states in which these are located.
The period following nationalisation was characterized by rapid rise in banks
business and helped in increasing national savings. Savings rate in the
country leapfrogged from 10-12% in the two decades of 1950-70 to about 25
% post nationalisation period. Aggregate deposits which registered annual
growth in the range of 10% to 12% in the 1960s rose to over 20% in the
1980s. Growth of bank credit increased from an average annual growth of

11

13% in the 1960s to about 19% in the 1970s and 1980s. Branch network
expanded significantly leading to increase in the banking coverage.
Indian banking, which experienced rapid growth following the nationalization,
began to face pressures on asset quality by the 1980s. Simultaneously, the
banking world everywhere was gearing up towards new prudential norms and
operational standards pertaining to capital adequacy, accounting and risk
management, transparency and disclosure etc. In the early 1990s, India
embarked on an ambitious economic reform programme in which the banking
sector reforms formed a major part. The Committee on Financial System
(1991) more popularly known as the Narasimham Committee prepared the
blue print of the reforms. A few of the major aspects of reform included (a)
moving towards international norms in income recognition and provisioning
and other related aspects of accounting (b) liberalization of entry and exit
norms leading to the establishment of several New Private Sector Banks and
entry of a number of new Foreign Banks (c) freeing of deposit and lending
rates (except the saving deposit rate), (d) allowing Public Sector Banks
access to public equity markets for raising capital and diluting the government
stake,(e) greater transparency and disclosure standards in financial reporting
(f) suitable adoption of Basel Accord on capital adequacy (g) introduction of
technology in banking operations etc. The reforms led to major changes in the
approach of the banks towards aspects such as competition, profitability and
productivity and the need and scope for harmonization of global operational
standards and adoption of best practices. Greater focus was given to deriving
efficiencies by improvement in performance and rationalization of resources
and greater reliance on technology including promoting in a big way
computerization of banking operations and introduction of electronic banking.
The reforms led to significant changes in the strength and sustainability of
Indian banking. In addition to significant growth in business, Indian banks
experienced sharp growth in profitability, greater emphasis on prudential
norms with higher provisioning levels, reduction in the non performing assets
and surge in capital adequacy. All bank groups witnessed sharp growth in
performance and profitability. Indian banking industry is preparing for smooth
transition towards more intense competition arising from further liberalization
12

of banking sector that was envisaged in the year 2009 as a part of the
adherence to liberalization of the financial services industry.

INTRODUCTION TO THE COMPANY

Housing Development Finance Corporation Limited, more popularly known as

HDFC Bank Ltd, was established in the year 1994,
as a part of the liberalization of the Indian Banking Industry by
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in
principle' approval from RBI,
for setting up a bank in the private sector. The bank was incorporated with the
name 'HDFC Bank Limited', with its registered office in Mumbai. The following
year, it started its operations as a Scheduled Commercial Bank.
HDFC Bank Limited. The Group's principal activities are to provide banking
and other financial BANK. The Group operates through four segments:
Treasury, Retail Banking, Wholesale Banking and Other Banking Business.
The Treasury BANK segment consists of net interest earnings on investments
portfolio of the bank and gains or losses on investment operations. The Retail
Banking segment serves retail customers through a branch network and other
delivery channels. This segment raises deposits from customers and makes
loans and provides advisory BANK to customers. The Wholesale Banking
segment provides loans and transaction BANK to corporate and institutional
customers. The Other Banking Operations segment provides BANK relating to
credit cards, debit cards, third party product distribution and primary
dealership business and other associated costs. The Bank was Incorporated
on 30th August 1994.

A new private sector Bank promoted by housing

Development Corporation Ltd. (HDFC), a premier housing finance company.

The bank is the first of its kind to receive
an in-principle approval from the RBI for establishment of a bank in the
private sector. Certificate of Commencement of Business wasreceived on

13

10th October 1994 from RBI. The Bank transacts both traditional commercial
banking as well as investment banking. HDFC, the promoter of the bank has
entered into an
agreement with National Westminister Bank Pc. and its subsidiaries (Nat
west Group) for subscribing 20% of the banks issued capital and providing
technical assistance in relation to the banks proposed banking business.
2.2 Growth and Development of the Organization: 1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte.

Ltd. Another 400,00,000 equity shares were allotted on private placement
basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the
public on 9.5.95 The Bank opened its first branch in Ramon House at
Churchgate, Mumbai on January 16th.
The Bank has created an efficient operating system using well tested state-ofthe-art software.
1995
70 No. of equity shares issued to subscribers to the Memorandum &Articles of
Association on 30th August 1994.

On the same date 500,00,000 equity

shares were allotted to HDFC promoters. 509,20,000 shares were allotted to

HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on
22nd December,
1996
HDFC Bank has entered the banking consortia of over 50 corporates,
including some leading multinational companies, flagship companies of local
business houses and strong public sector companies.

14

HDFC Bank has set up a state-of-the-art dealing room to handle all

transactions possible in Indian financial markets.
The Certificates of Deposits were awarded a PP1+ rating which is the highest
rating for short term instruments indicating superior capacity for repayment.
2001
- The Bank has opened its first branch in Aurangabad. HDFC Standard Life
Insurance has entered into a memorandum of understanding with the
Chennai-based Indian Bank. The Bank has launched the international
Maestro debit card inassociation with Master Card. HDFC Bank will launch its
credit card in June through link-ups with MasterCard and Visa.LTtrade.com
has entered into a strategic tie-up with HDFC Bank to provide Net banking
BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat
Petroleum Corporation have joined the eCash Forum which has been set up
by the Smart Card Forum of India. HDFC Bank has launched a new campaign
for its eage savings account. HDFC Bank entered into a strategic tie-up with
Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small and
Medium enterprises.The Bank has opened four ATMs outlets in Bangalore at
Coles Road, RT Nagar, Rajaji Nagar and Jaya Nagar on March 26. HDFC
Standard Life Insurance has launched a `Development Insurance Plan' a low
cost life insurance product developed specifically to meet the needs of
economically weaker sections. Two Directors, Mr. S.S. Thakur and Mr. Amit
Judge, have resigned from the board of the bank effective from March 30.
HDFC Bank files with US regulators to list more than 11 million American
Depositary Shares on the New York Stock Exchange.
Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in
India, and all branches of the bank are linked on an online real-time
basis. [2] As of September 30, 2008 the bank had total assets of INR 1006.82
billion.[3] For the fiscal year 2008-09, the bank has reported net profit of
Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of
the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

15

2.3 Present Status of the Organization:-

March 2007

March 2008

March 2009

Citied

228

316

452

Branches

535

684

1412

ATMs

1323

1605

3275

Housing Development Finance Corporation Limited, more popularly known as

HDFC Bank Ltd, was established in the year 1994, as a part of the
liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It
was one of the first banks to receive an 'in principle' approval from RBI, for
setting up a bank in the private sector. The bank was incorporated with the
name 'HDFC Bank Limited', with its registered office in Mumbai. The following
year, it started its operations as a Scheduled Commercial Bank. Today, the
bank boasts of as many as 1412 branches and over 3275 ATMs across
India. Amalgamation
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private
sector bank promoted by Bennett, Coleman & Co. / Times Group). With this,
HDFC and Times became the first two private banks in the New Generation
Private Sector Banks to have gone through a merger. In 2008, RBI approved
the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this,
the Deposits of the merged entity became Rs. 1,22,000 crore, while the
Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000
crore.
Head Office
HDFC Bank
Ramon House, 169, Backbay Reclamation,

16

H T Parekh Marg, Churchgate

Mumbai 400020
Phone: +91 (22) 66316000, 66636000, 66316060
Fax: +91 (22) 22048834
Website: www.hdfc.com

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it

in terms of information technology or communication systems. All the braches
of the bank boast of online connectivity with the other, ensuring speedy funds
transfer for the clients. At the same time, the bank's branch network and
Automated Teller Machines (ATMs) allow multi-branch access to retail clients.
The bank makes use of its up-to-date technology, along with market position
and expertise, to create a competitive advantage and build market share.
Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore
(Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In
terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional
Investors (FIIs) have around 28% of the equity and about 17.6% is held by the
ADS Depository (in respect of the bank's American Depository Shares (ADS)
Issue). The bank has about 570,000 shareholders. Its shares find a listing on
the Stock Exchange, Mumbai and National Stock Exchange, while its
American Depository Shares are listed on the New York Stock Exchange
(NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:-

17

The functional departments of the organization consists of the HR

department, the administrative department and the executive department. The
HR department of the organization consists of the people who employ the
Persons who they think would be able to do justice with the job handled.The
administrative department of the organization consists of the director and the
manager of the organization. They preside the organization and control all the
operations of the organization such that the organization could run in a
smooth and effective manner.The executive department of the organization
consists of the various employees Who execute the job undertaken by them.
The employees consists of the team leaders, the Corporate financial
consultants,. the telecallers, various staffs and junior staffs who are the main
structural framework of the organization. The organization thus runs with the
effective coordination of the HR department, the administrative department
and the executive department such that the supervisors of the organization
preside over the subordinate employees to give them directions about fulfilling
their works most efficiently and effectively. Technical Consultancy Department:
The Technical Consultancy Department is responsible for technical appraisal
of industrial projects. The mission of the division is aimed towards the
verification of the technical viability of industrial projects and assisting the
Funds management in taking the decisions that require technical expertise.
Moreover, it is responsible for conducting technical studies and rendering
technical consultancy BANK to certain industrial sectors for the purposes of
investigating

modern

technologies

and

productivity

levels

for

local

manufacturing plants.
H R Department:
HDFC Human Resources department plans and direct for the employee
population as well as they are having the following functions as: Hiring
Promotions
Reassignments

18

 Position classification and grading

Salary determination
Performance appraisal review and processing
Personnel data entry and records maintenance
Policy development
Work permitting immigration visa program
Workers compensation
Finance Department:
The Finance Manager is responsible for all aspects of the accounting and
financial administration of the HDFC, the supervision of the implementation of
the HDFC financial policies, directives and procedures and the initiation of the
financial plans within the guidelines of

HDFC The department contains

several distinct sections, each of which is responsible for a proportion of the

activities taking place within the finance department.

Marketing Consultancy Department:

The Marketing Consultancy Department plays and important role within the
Fund as it studies and analyzes marketing information in order to build solid
base for management decisions. The division also assists projects sponsors
in formulating solid marketing strategies to improve their industries and
strengthen their position in the local and international markets.

Research Department:
The Research Department is having the capacity to act through four
composing units i.e., the market research unit, economic studies unit, and
statistical studies unit. It is the mission of the division to provide support BANK

19

for information and consultancy to the senior management and division in the
areas of economic, statistical and marketing information and consultancy
through data analysis, processing of economic and statistical data, market
research studies and publishing related periodical reports.
2.5 Organization Structure and Organization Chart:The organization structure of the company HDFC is such that it comprises of
the departments and the employees in the hierarchical order so that they are
able to perform their functions and duties smoothly and effectively doing their
job in a manner in which it should be done. The organization is headed by the
administrative department which coordinates and controls the executive
department. The executive department is a link from the top and the bottom
comprising of the lower level employees such that they work together to fulfill
the common objective of getting business from the persons who get in touch
with them and see to it that they are provided with the best of the BANK which
constitute giving financial advise to providing Account to the customers. The
lower level employees and the corporate financial consultants work together
to see to it that the database for providing financial BANK to sufficient number
of people is made .They work together to see to it that this database is
followed and worked upon such that more and more number of people get
themselves avail the financial BANK of the organization. Team leaders who
form the part of the administrative department of the Organization make sure
that the clients that turn up for the financial BANK are dealt with most
efficiently and effectively.

The organizational structure is well planned out and it follows a simple format
which is follows:

20

Organization Chart:-

Each team lead has a team comprising only of both senior as well as junior
market research analyst who aid the team lead in the entire market research
process as it has been discussed previously. This is the basic organizational
structure followed by HDFC BANK.
2.6 Product and service profile of the organization:HDFC Bank offers a bunch of products and services to meet the every need
of the people. The company cares for both, individuals as well as corporate
and small and medium enterprises. For individuals, the company has a range
accounts, investment, and pension scheme, different types of loans and cards
that assist the customers. The customers can choose the suitable one from a
range of products which will suit their life-stage and needs. For organizations

21

the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services, Mutual fund etc.
These affordable plans apart from providing long term value to the employees
help in enhancing
Goodwill of the company. The products of the company are categorized into
various sections which are as follows:

Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards
Prepaid Cards
Investments & Insurance
Forex Services
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
NRI Banking
Rupee Savings Accounts
Rupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quick remit (North America, UK, Europe, Southeast Asia)
India Link (Middle East, Africa)

Coequal Lock Box

In todays world many companies have emerged who have taken a serious
note on the importance of market research and he advantages of using it for
22

the better growth and development of the company. Hence, our competitors
are those companys who are in the market research and development field
as well as the consultancies, since they also make use of market research
and business developers.
The products and BANK of our competitors are as follows:
A. Customer Satisfaction Analysis:
Customer analysis involves gathering data about the customers and their
characteristics. They also conduct tailored customer satisfaction surveys to
gauze customer satisfaction.
B. Risk

These BANK are used by the competitors in order to gather external

information and research the possible effect on the competitiveness of
company.
C. Product Research BANK:
The conduction of extensive product research by this service helps the
competitors to find out the marketability of a product or service. The research
can be utilized to leverage the major decisions of a company on the marketing
of its products.
D. Advertising Research BANK:

Advertising research strives to gain valuable information about the effects and
reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we take up:
1. The timetable for the search is indicated and the search process
commences.

23

2. Target companies are examined, using any prior information provided by

business development executives in conjunction with sources of information
and prospective companies already known to us, augmented with original
study by our search team.
3. We maintain a regular channel of communication with the client to keep
them apprised of the results emerging.

2.7 Market profile of the organization:HDFC Bank Limited provides various financial products and services. It
operates in three segments: Retail Banking, Wholesale Banking, and
Treasury. The Retail Banking segment provides various deposit products,
including savings accounts, current accounts, fixed deposits, and demat
accounts. It also offers auto, personal, commercial vehicle, home, gold, and
educational loans; loans against securities, property, and rental receivables;
and health care finance working capital finance, construction equipment
finance, and warehouse receipt loans, as well as credit cards, debit cards,
depository, investment advisory, bill payments, and transactional services. In
addition, this segment sells third party financial products, such as mutual
funds and insurance, as well as distributes life and general insurance
products through its tie-ups with insurance companies and mutual fund
houses. The wholesale banking segment provides loans, non-fund facilities,
and transaction services to large corporate, emerging corporate, small and
medium enterprise, supply chain, public sector undertaking, central and state
government departments, and institutional customers. It offers deposit and
transaction banking products, supply chain financing, working capital and term
finance, agricultural loans, and funded, non-funded treasury, and foreign
exchange products. These segments services include trade services, cash
management, money market, custodial, tax collection, and electronic banking.
In addition, it provides correspondent bank services to co-operative banks,
private banks, foreign banks, and regional rural banks; and wealth
management products for non-resident Indians. The Treasury Services
segment operates primarily in areas, such as foreign exchange, money
24

market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank
had a network of 1,412 branches and 3,295 automated teller machines in 528
cities in India. The company was founded in 1994 and is based in Mumbai,
India.
In todays growing world everyone needs to diversify their business so as to
keep in touch with the rapid development. By analyzing the growing concerns
of the market, HDFC has clients varying from investment banking sector,
retail, web designing companies, etc. Due to this rapid development HDFC
Group has many teams working for the above mentioned sectors.
HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realised that only a single-minded focus on product
quality and service excellence would help us get there. Today, we are proud to
say that we are well on our way towards that goal.
COMMERCIAL BANKING

HDFC BANK

has maintained a long local presence, since 1858, with

particular emphasis on relationship banking. Significant networks have been

established with vendors and financial-related organisations to enable us to
offer our customers a comprehensive range of flexible financial services, with
special focus on transactional banking products. Supported by state-of-the-art
operations, HDFC BANK is pro-active in improving every part of our services.
Electronic Delivery system has been put in place to ensure that transactions
are handled speedily. We have our Cash Product Specialists and dedicated
Customer Service Centres to provide our customers with effective solutions.
The currency of India is the Rupee (SWIFT code: INR).HDFC BANK fully
understands the importance of time, convenience and efficiency to the
success of your business. We make easy the complex financial world for you
and help you maximise every opportunity.

25

OBJECTIVE OF THE STUDY

services that the customer needs and also to improve on some of the existing
services of the bank.
The objective of this project was to find out:

To study Service Account potential in todays market scenario as a

whole.

To Analyze Market Potential of HDFC BANK Banks Services

Account.

Comparing other banks with HDFC BANKon various banking

parameters.

To know the customer acceptance of the services of HDFC BANK

bank in Delhi and NCR regions.

To find out the various factors on which the bank lags/leads.

To increase the brand awareness and acceptance.

Analyzing the data as per the given objectives, reaching a conclusion and
finally the factors that the bank should consider in case of improving the
service accounts.

26

RESEARCH METHODOLOGY
A two stage Research was conducted:
1. Secondary Research:
Data was collected from websites and catalogues to understand the product
and the charges of the different banks.
2. Primary Research:
A Primary Research was conducted. The questionnaire was prepared for the
companies and following areas covered:

Competing Banks

Features offered by different banks

Consumer profile

Satisfaction level with the current bank

Reason for the selection of specific Bank

Desirable features of the product

Sampling Plan:
Elements:
The target population of the study included the general population above the
age of 18 yrs.
Time:
06 Nov- 30 Nov, 2009
Sample size:
82 people
1.

Data Collections

27

Data Collection Plan:

The first of Research consisted of secondary data search from the following
sources:

Catalogues

Websites

In this, information about different banks, different features the banks are
offering to employees under salary accounts and general market standing of
different banks were collected.
For the conclusive research, questionnaires were developed on the basis of
secondary data to gather information on the research objective.
The final draft of the questionnaire (see Appendix) was then prepared on the
basis of the observations from the pilot study. These were then finally filled by
50 consumers, for the conclusive study.

28

ANALYSIS OF PROBLEM

With over 140 years of experience in trade finance and an extensive

international branch network, HDFC BANK is committed to help you succeed
in every competitive environment. To keep pace with your changing needs, we
will constantly review our comprehensive cash, trade and treasury products
and services, ensuring that a full range of flexible and innovative services is
always available for you wherever you trade.
Please feel free to talk to us or email us on your business requirements and
we can give you innovative solutions to your banking needs. With changing
demographics of the Indian masses, the challenge is to capture the new
generation as customers, those who are high on technology and short on
time. These customers are required to be serviced beyond the traditional brick
and mortar branches. They require access to multiple delivery channels as
ATMs, Internet banking, Telebanking and e-banking. They require access to
their accounts and the flexibility to operate their accounts from anywhere in
the country. It is only through adopting state of the art technology that Banks
can deliver such flexible distribution channels. Faced with global competition,
the banks have to shore up the efficiency of their operations, which will be
possible through the use of high end technology and process reengineering to
increase the speed and efficiency and reduce transaction costs.
1) Tele Banking
Tele banking is the simplest form of banking. The service can be availed by
any customer at any point of time. This service is especially beneficial to
customers who are not very tech-savvy. This service can be availed from any
part of the world and most of the queries are answered over the phone.
However this system can be used to procure very basic information about the
customers account.

29

2) ATM
ATMs have come to occupy a key component of retail channel strategy
adopted by the Banks worldwide. As a self-service channel banks have
delivered exceptional customer convenience deploying ATMs. In the Indian
situation, the public sector banks are implementing their technology blueprint
by networking their branches. Their customers have started experiencing the
transition from being, a branch customer, To becoming, a customer of the
Bank, thanks to the Core Banking Solutions which are under implementation.

Benefits of ATM to the Customers

24 x 7 access

Availability (anytime) of over 19,000 ATMs in the country

The geographical spread of ATMs soon designed to surpass the branch

network (anywhere)

Less time for transactions (less queue)

Acceptability of card across multiple bank ATMs, even foreign tourists can
access Maestro/VISA ATMs.

Plethora of services available in addition to cash dispensing

3) E-Payment
Reserve Bank has over the last two decades introduced a bouquet of
payment platforms to meet the requirements of the various bank customers.
Essentially, they differ in the timing (real time/ deferred) and the method of
settlement (Gross/Net). Real Time Gross Settlement System (RTGS)
introduced in March 2004 is an example of settlement done in real time i.e.,
immediately and done in a gross fashion i.e., transaction by transaction. While

30

different electronic platforms are being created to popularize electronic

payments, such payments presently are less than 60 million as opposed to
1120 million of cheques. If the credit card
transactions are included in electronic payments even then electronic
payments are less than 30 percent.
RTGS is typically considered by corporates for making time critical high value
payments. Banks in the last one-year have made RTGS very affordable to the
customers as a replacement for Telegraphic Transfers, Drafts and issue of
high value cheques.
4) Electronic Clearing Service (ECS) - Credit Clearing
ECS (Credit Clearing) is a mode of payment whereby an institution makes a
large number of payments like interest, dividend, salary, pension to a large
number of investors/share holders/employees/ex-employees can make the
payments electronically instead of issuing paper warrants.
5) Electronic Clearing Service (ECS) - Debit Clearing
ECS (Debit Clearing) is a mode of payment whereby an institution receives
payments from a large number of consumers/customers. ECS (Debit
Clearing) Scheme helps utility institutions, insurance companies, credit card
companies and finance companies to collect the proceeds
of telephone/electricity bills, insurance premia or periodical installments etc.
on

the

due

date

based

on

the

mandates

received

from

the

consumers/subscribers. ECS debit is also a two day affair with the

transactions settled on second day of submission of data to the clearing
house.
Benefits under ECS (Debit)

Faster Collection of bills by the companies and better cash

management

Eliminates the need to go to the collection centres/banks by the

customers and no need to stand in long ques for payment
31

Automatic debiting to the accounts once the mandates are given by the
customers, to that effect cuts down the procedural delay.

6) Electronic Funds Transfer System

EFT is a Scheme introduced by Reserve Bank of India (RBI) to help banks
offering their customers. Money transfer service from account to account of
any bank branch to any other bank branch in places where EFT services are
offered. The EFT system presently covers all the branches of the 27 public
sector banks and 55 scheduled commercial banks at the 15 centres (viz.,
Ahmedabad, Bangalore, Bhubaneshwar, Kolkata, Chandigarh, Chennai,
Guwahati, Hyderabad, Jaipur, Kanpur, Mumbai, Nagpur, New Delhi, Patna
and Thiruvananthapuram). Funds transfer is possible from any branch of
these banks at these centres to other branch ofany bank at these centres both
inter-city and intra-city.

7) E-banking
Electronic Banking or e-banking is a web-based service that enables a banks
customers to access their account. It allows the customers to log on to the
banks website with the help of a bank issued identification and a personal
identification number. The banking system verifies the user and provides
access to the requested services. The range of products and services offered
by each bank differs widely in their content. Though most banks offers ebanking as a value added service, e-banking has also led to the emergence of
a new type of banks called virtual banks which operate through the internet
and do not exist physically.
Remittance

32

Benefits of e-banking:

The ready accessibility of bank accounts at all times

The inconvenience of visiting and waiting at the banks is eliminated
which results in, enhanced customer satisfaction, reduced customer
attrition and increased customer base

Saves time and money and has a positive impact on customer

satisfaction

Tailored products and services can be offered

Offers more benefits at low cost

E-banking considerably reduces transaction costs for the banks

8) Mobile Banking
Mobile Banking is a system of providing service to a customer to carryout
Banking transactions on the Mobile Phone through a cellular service provider.
It is a service of Banks to make available, the facility of Banking, wherever the
customer is and whenever he needs. We can rather call this facility as
Anywhere and Any moment Banking but it is restricted to only information
about his account and not cash services. Mobile Banking gained momentum,
since last 5 years due to the improvement in the operations of service
providers like, Airtel/Essar / Spice / Global Mobile Bank etc
Types and Transactions available on Mobile Phone Banking

Balance enquiry

Costs Transactions i.e. last five debits/credits made to the account.

Cheque Book Request

Bill Payment

33

Change of Primary Account

Help

Benefits of Mobile Phone Banking To Customers

Customer need not stand in the Bank counters/Front Offices for various
enquiries about his accounts

Customer can save his valuable time in banking transactions, and save
in travel cost reaching the bank branch etc

It is a mobile service to have information all the 365 days at anytime

any where about his account

Customer can pay his utility bills in time and save paying penalties,
since alerts are received from the bank

Plan funding his accounts for the cheques issued to various customers,
by taking advantage of balance enquiry, account status

Cheque book requests can be made sitting in his works place

9) Implementation of CRM tools the future of Customer Service

As global competition increases and products become harder to differentiate,
banks have begun moving from their product-centric attitude to a customer
centric one. The bridge of disconnect, over the years, has been shortened
after many banks started methodically identifying and filling in the gaps
through Customer Relationship Mangement which, now is seen as the way
forward to thrive in the e-future.

Customer Relationship Management can be viewed in four principal ways.

34

1. It is a contemporary response to the emerging climate of unprecedented

customer churn, waning brand loyalty and lower profitability.
2. CRM is central to the task of making an organization customer-centric.
3. CRM is the surest symbol embracing information technology in business.
4.CRM is the most certain way to increase value to the customers and
profitability

to

the

practicing

organisations.

Customer

Relationships

Management is a comprehensive approach providing seamless integration of

every area of business that touches the customer - marketing, sales,
customer service and field support. It is the information technology face of the
business processes that aims to establish enduring and mutually beneficial
relationships with customers in order to drive customer retention,value and
profitability up. CRM endeavors to understand, anticipate and manage the
needs of an organisation.s current and potential customers. It.s a journey of
strategic processes, organizational and technical change whereby a company
seeks to better manage its own enterprise around customer behaviour.
The technological tools as mentioned earlier are primarily Operational CRM
tools that are being widely used by banks to enhance their services. However,
the need of the hour is to adopt Analytical CRM tools as well. Analytical CRM
helps bankers make sense of the information. It helps them target customers
and utilize their potential to the maximum. For example, say an account
holder withdraws Rs 10,000 every month from his account and deposits it in
another bank as EMI for a loan. Analytical CRM tools can help you track this
activity. Techniques such as data warehousing and data mining are prominent
tools used for this. The bank could offer a loan to the customer at a lower rate
than what the other bank offers. This will keep the customer happy since he
knows that the bank is giving him better service. This translates to gains for
the bank as well.

35

7 PS of HDFC BANK
It is very important for any bank to identify the 7 Ps of services so as
understands their customers better and provide them with best of service. The
7 Ps are:
1. PRODUCT MIX
2. PRICE MIX
3. PLACE
4. PROMOTION
5. PEOPLE
6. PROCESS
7. PHYSICAL EVIDENCE

PRODUCT MIX
According to Philip Kotler, a product is anything that can be offered to market
for attention, acquisition, use or consumption that satisfy a want or need. It
includes physical objects (TV), service (banking), person (political person),
place (holiday resort), organization (red cross) and idea (aid awareness).
The product mix of a company includes all different product lines a company
offers to its customers. The product line of a bank might easily include more
than 100 different services. In todays competitive scenario it has become very
necessary for a bank to provide its customers with a wide variety of services
and the best technology in order to attract them. Here is an example of some
of the products offered by standard & chartered bank to its customers:

36

Offering
HDFC BANK

bank's Savings Account is just the right product for everyone,

salaried, employees or businessmen, high net worth individuals and NRI's.

The unmatched package of HDFC BANK bank Savings Bank account given
below brings the benefits of better, efficient and hassle free banking.

ATM Network

A Savings Bank Account with HDFC BANK entitles you to a free ATM card,
which enables you to access your account anytime and at any ATM centre
across the country. You can withdraw and deposit money and cheques with
your ATM card. Unlike most other ATMs, a HDFC BANK ATM allows you to
withdraw up to Rs. 20,000 a day. In addition, cash can be withdrawn from any
of the ATMs against your MasterCard (domestic/international).

7-Day Banking

At select branches spread over the country, you can bank on all the 7 days of
the week (except for public holidays), over extended working hours.

Telebanking

Telebanking service provides you instant access to your account. It offers you
a wide range of services over the phone such as account information,
Balance Enquiry, Transaction Details, Statement of Account, Status of your
Cheque, etc.

iconnect-Internet Banking

This is the concept of "the Bank on your desk-top". You can look-up the status
of your account, query and undertake a range of financial transactions, simply
by clicking the mouse. Now don't you think you have a great opportunity to
see yourself laughing your way to the bank?

37

Offering
HDFC BANK has joined hands with Citibank, to give rise to a new kind of
card power - unique and unmatched benefits and international utility at the
most competitive rates. The HDFC BANK Citibank International Silver Card,
the MasterCard and 'Unique' Card offers quite a few benefits.
Rewards
HDFC BANK Citibank Card combines dual conveniences of high purchase
power and flexible payment facility. Purchase of high-value items is now
convenient and when it comes to payback time, your bill can be paid in
installments, depending on your financial liquidity at a given moment. The
Revolving Credit Facility lets you pay as little as 5% of your total outstanding
every month. Giving you the power to buy now and pay later in parts!
Dial-A-Draft
One can use your HDFC BANK

Citibank Card to pay for your personal

expenses at places where credit cards are not accepted yet. Like paying for
investments, telephone and electricity bills, school fees and much more. Just
call CitiPhone and the draft you need will be delivered to you!
Credit Limit Increase
You can call CitiPhone and ask for a Credit Limit Increase in the event that
you have to make a large purchase on your card urgently. It's especially
handy for paying off vehicle repairs, telephone bills and electricity bills. And
for anniversaries, weddings, birthdays, or business trips or when a holiday
goes beyond budget.
24-Hour ATMs
One can withdraw emergency cash up to 60% of your credit limit from 24Hour ATMs in Ahmedabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad,
38

Mumbai and Pune. While traveling overseas you can draw cash from
MasterCard ATMs spread across the globe. The same is applicable for any
Citibank branch. Also the cash you withdraw is insured against theft for a
period of 12 hours after withdrawal. A never before facility is brought to you
with the HDFC BANK Citibank Card at a transaction fee of 2.5% or Rs.50
whichever is higher. All cash advances also carry a service charge from the
date of the transaction. The cash withdrawal limit for the first year is Rs.5,000.
Photo card
One may choose to have your photograph and signature digitally imprinted on
the front of your Card in color. So that you get the extra recognition and
security you expect as a HDFC BANK Citibank card member
Concession on Personal Remittances
Do you often need to remit funds to other cities using facilities such as
Drafts/Telegraphic Transfers, etc.? Here's a benefit you would most
appreciate. A 25% rebate on standard commission is offered on personal
remittances at HDFC BANK branches.
Overdraft facility
provides you with an overdraft facility to the extent of 75% of the value of your
holdings of Demat Shares and Units! Moreover, you get a waiver of 0.5% on
interest rate chargeable under the scheme. All you need to avail yourself of
these benefits is a Demat A/c with HDFC BANK .

Free ATM Card

The HDFC BANK Citibank Credit Card offers you a free ATM Card, which
can be used at over 250 HDFC BANK ATM centers all over India. All you
have to do is open a saving bank/current Account with HDFC BANK .
Other features

39

HDFC BANK Citibank Card has the widest possible reach - welcomed by
1,10,000 Merchant Partners across India and Nepal and yet another 160 lakh
Merchant Establishments worldwide. The card can be used both for major
occasions, and also for everyday purchases like groceries, cosmetics, and
petrol and auto accessories. It can also be used to buy high-value items like
consumer durables (refrigerators, washing machines, microwave ovens, etc.).
And even paying customs duty and hospital bills becomes convenient with the
Card.

PRODUCT WIDTH AND DEPTH

Width
Width of the product mix is the number of product lines a company is offering.
The product width could be a narrow one or a wide one depending from bank
to bank. A wide mix encourages more sales since the banks are able to
diversify and provide more to their customers and they also appeal to a larger
target market.
Depth
Depth of the product mix is the number of product items in each product line.
Banks with more schemes and services have more depths than those offering
only a few.
Here is table giving an example of Width and Depth in the Product Mix:

40

Similarly, different banks plan out their product portfolios and based on that,
the depth and width of their product mix can be determined. In todays
scenario, where there is cutthroat competition and new foreign banks entering
the Indian markets, it has became more or less like a law to have very wide
product lines with more and more number of products in each line.

PRODUCT LEVELS
Core Benefit:
It is the main or core reason why the customer will buy the service of the
bank. More like the basic purpose or necessity.
Basic Product:
The core benefit is converted into a basic product. That is the service can use
by the customer in order to fulfill his/her needs.
Expected Product:
It refers to the set of attributes and conditions expected by the customers
when they purchase the service.

41

Augmented Product:
It is the additional feature that the banks provide which exceeds the
customers expectations.
Potential Product:

42

Core

Basic

Product

Product

The

basic Safety

necessity
use

services

in

order

to

Loan

Augmented

Potential

Product

Product

Product

of Timely

to deposits

banking

Expected

service

Goods waiting Mobile

rooms

able Long banking Extensive

funds etc.

hours

handle

Low

finance more

rates

efficiently

ATM network
interest Promotional
Discounts

and

internet
Banking
New
Schemes
tailored

for

specific
customers

PRICE MIX
The price mix in the banking sector is nothing but the interest rates charged
by the different banks. In todays competitive scenario where customer is the
king, the banks have to charge them interest at a rate in accordance with the
RBI directives. Banks also compete in terms of annual fees for services like
credit cards, DMAT etc. Another important aspect of the banks pricing policy
today is the interest charged on the Home Loans and Car Loans. With Indias
economy progressing, there are more and more buyers seeking these loans
but at a very competitive interest rate. Lets understand this with an example.
A particular buyer approaches a bank for a car loan for a period of 3 years. He
is charged Rs.20,000 as interest. However, if a sale representative of another
bank comes to know of this deal, he will try to attract the customer by giving
him a better deal i.e. a loan at a lower rate on interest. In this way, it is the
customer that ultimately benefits.

43

DATA ANALYSIS AND INTERPRETATION

Q1.Your Age?
TABLE
Serial No.

Age Category

Number of Respondents

Percentage

1.

18-23 Years

40

20%

2.

24-29 Years

70

35%

3.

30-35 Years

60

30%

4.

35 Years and above 30

15%

44

Total

200

100%

Base 200 respondents

GRAPH

Interpretation
From the table and graph above it can be seen that

20% respondents age are 18 to 23 years.

35% respondents age are 27 to 29 years.
30% respondents age are 30 to 35 years.
15% respondents age are 35 to above years.

Q2. Marital Status?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Married

140

70%

Unmarried

60

30%

Total

200

100%

GRAPH

45

Interpretation
From the table and graph above it can be seen that

70% respondents are married.

30% respondents are unmarried.

Q3. Educational Qualification?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Under graduate

50

25%

Graduate

80

40%

Post graduate

70

35%

Total

200

100%
Base 200

respondents
GRAPH

46

Interpretation
From the table and graph above it can be seen that

25% respondents are Under graduate.

40% respondents are Graduate.
35% respondents are Post graduate.

Q4. Number Of years Are You in Pune?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Less than five years

78

39%

More than five years

122

61%

Total

200

100%
Base 200

respondents
GRAPH

47

Interpretation
From the table and graph above it can be seen that

39% respondents are in Pune for less than five years.

61% respondents are in Pune for more than five years.

Q5. Your Occupation?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Business

40

20%

Profession

108

54%

Service

52

26%

Total

200

100%
Base 200

respondents
GRAPH

48

Interpretation
From the table and graph above it can be seen that
20% respondents Occupation is Business.
26% respondents Occupation is Profession.
54% respondents Occupation is Service.

49

Q6. Your annual household income?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Less than 2 lacs

98

49%

Between 2 to 5 lacs

62

31%

Between 5to 8 lacs

30

15%

More than 8 lacs

10

5%

Total

200

100%
Base 200

respondents
GRAPH

Interpretation
From the table and graph above it can be seen that

49% respondents annual household income is less than 2 lacs.

31% respondents annual household income is between 2 to 5 lacs.
15% respondents annual household income is between 5 to 8 lacs.
5% respondents annual household income is more than 8 lacs.

Q7. Are you a member of a club/gymkhana?

TABLE

50

Sr. No.

Category

No. of Respondents

Percentage

Yes

84

42%

No

116

58%

Total

200

100%
Base 200

respondents
GRAPH

Interpretation
From the table and graph above it can be seen that

42% respondents are member of a club/gymkhana.

58% respondents are not member of a club/gymkhana.

Q8. What is your perception about different products/services provided by HDFC bank?
TABLE
Sr. No.

Category

No. of Respondents

Percentage

Lucrative

50

25%

51

Not lucrative

120

60%

No idea

30

15%

Total

200

100%
Base 200 respondents

GRAPH

Interpretation
From the table and graph above it can be seen that
25% respondents perception about different products is lucrative.
60% respondents perception about different products is not lucrative.
15% respondents have no idea.

Q9. Do you want to open an account with HDFC bank?

TABLE
Sr. No.

Category

No. of Respondents

Percentage

Yes

10

5%

No

160

80%

52

Will tell later

30

15%

Total

200

100%
Base 200

respondents
GRAPH

Interpretation
From the table and graph above it can be seen that

80% respondents are not interested to open an account with the bank.
5% respondents are interested to open an account with the bank.
15% of the respondents say that they will tell later.

Q10. Do you have all the documents which are required to open an account?
TABLE
Sr. No.

Category

No. of Respondents

Percentage

Yes

120

60%

No

80

40%

Total

200

100%

53

Base 200
respondents
GRAPH

Interpretation
From the table and graph above it can be seen that

60% respondents have all the documents which are required to open an

account with the bank.

25% respondents do not have all the documents which are required to open an
account with the bank

54

RECOMMENDATION
HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank
already has good number of employees on board and is recruiting Sales Executives
heavily to take the headcount to many more. It is on the brim of increasing its
customers through its attractive schemes and offer. The project opportunities provided
was market segmentation and identifying prospective customers in potential
geographical location and convincing them to open an account so that new Business
Opportunities of the bank can be explored. Through this project, it could be concluded
that people are not much aware about the various products of the bank and many of
them not interested to open an account at all.
services was considered as unsought good which require hard core selling, but in
changing trend in income and people becoming financially literate, the demand for
banking sector is increasing day by day.

According to my findings

Companys promotional activities for recruiting sales executives are

also very less.
So, at last the conclusion is that there is tough competition ahead for the company
from its major competitors in the banking sector. Last but not the least I would like
to thank HDFC Bank for giving me an opportunity to work in the field of
Marketing. I hope the company finds my analysis relevant.
1. .

55

CONCLUSION

To make people aware about the benefit of becoming HDFC Banks

Sales Executive, following activities of advertisement should be done
through

1. Print Media.
2. Hoarding & Banners.
3. Stalls in Trade Fares
4. Distribution of leaflets containing details information.
.

The bank should provide life time valid ATM card to all its customers.

Minimum balance for savings account should be reduced from Rs 5000

to Rs 1000, so that people who are not financially strong enough can
maintain their account properly

The company should provide a pass book to all its customers

Make people understand about the various benefits of its products.

Company should organize the program in the society, so that people

will be aware about the company and different products of the bank

Company should open more branches in different cities.

56

BIBLIOGRPAHY
1.BOOKS

AUTHORS

Marketing Management (10th Edition)

Philip Kotler

Marketing Management (3rd Edition)

V.S. Ramaswamy

Research Methodology (2nd Edition)

Research Methodology

C.R.Kothary
S.P. Kasande

2. NEWS PAPERS
Times of India
Financial Express

3. WEBSITES

www.hdfcbank.com
www.google.com

57

QUESTIONNAIRE
1. Your Age: ____________________
2. Education Qualification.

Undergraduate

Graduate

Post graduate

3. Marital Status.

Married

Single

No. of Children: __________

4. Number Of years Are You in Pune.

Less than five years

More than five years

5. Occupation.

Business

Profession

Service

(Please mention below the type of business/profession you are in incase of service
please mention your organization name and designation)

58

6.Your annual household income.

<than 2 lack

Between 2 to 5 lack

Between 5 to 8 lack

>than 8 lack

7. Are you a member of a club/gymkhana?

Yes

No

If yes, Name of the club /gymkhana_______________________________________

8. What is your perception about different products and services offered by

HDFC Bank?

Lucrative

Not lucrative

No idea

9. Do you want to open an savings account with HDFC Bank?

Yes

No

Will tell later

59

10. Do you have all the documents which are required to open an account?

Yes

No

11. Are you aware of that HDFC Bank provide you a free Dmat account if you
open a new savings account with the bank?

Yes

No

12. Are you aware of different terms and conditions which are very much
essential to maintain an account at HDFC Bank?

Yes

No

13. Do you know about HDFC Banks recruitment policies related to sales
executives?

Yes

No

60

BALANCE SHEET
Balance sheet
Balance sheet
Mar '
05

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund
Equity share capital

425.38

354.43

319.39

313.14

309.88

Share application money 400.92

0.07

0.43

Preference share capital

Reserves & surplus

14,226.4 11,142.8
4,209.9
6,113.76 4,986.39
3
0
7

Loan funds
Secured loans

Unsecured loans

1,42,811. 1,00,768. 68,297.9 55,796.8 36,354.

58
60
4
2
25

Total

1,57,864. 1,12,265. 74,731.0 61,096.4 40,874.

31
83
9
2
53

Uses of funds
Fixed assets
Gross block

3,956.63 2,386.99 1,917.56 1,589.47

Less : revaluation reserve -

1,290.5
1

Less : accumulated
depreciation

2,249.90 1,211.86 950.89

734.39

582.19

Net block

1,706.73 1,175.13 966.67

855.08

708.32

61

Mar '
05

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Capital work-in-progress

Investments

58,817.5 49,393.5 30,564.8 28,393.9 19,349.

5
4
0
6
81

Net current assets

Current assets, loans &
advances

6,356.83 4,402.69 3,605.48 2,277.09

1,330.5
7

Less : current liabilities & 22,720.6 16,431.9 13,689.1

5,264.4
7,849.49
provisions
2
1
3
6

Total net current assets

16,363.7 12,029.2 10,083.6 -5,572.40 3,933.8

9
2
5
9

Miscellaneous expenses
not written

Total

44,160.4 38,539.4 21,447.8 23,676.6 16,124.

9
5
2
4
24

Notes:
Book value of unquoted
investments

Market value of quoted

investments

Contingent liabilities

4,14,533. 5,99,928. 2,09,338. 1,44,137. 89,928.

93
79
61
86
65

Number of equity
4253.84 3544.33 3193.90 3131.42 3098.75
sharesoutstanding (Lacs)

62