SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN MANAGEMENT

Market Penetration
And
Digitalization

SUBMITTED BY:
KAJAL SHARMA_________
MBA- (2015-17)
Enrollment No. : 6004

INDUSTRY GUIDE
Mr. Vivek Walia
Branch manager
HDFC BANK
MEHATPUR

FACULTY GUIDE

GOVT. COLLAEGE UNA

HIMACHAL PRADESH

Company Certificate

(LETTER HEAD of the Company)

TO WHOMSOVER IT MAY CONCERN

This is to certify that _KAJAL SHARMA_, a student of Govt.

Collage Una undertook a project on _Market penetration and
digitilization _ at HDFC BANK Ltd. MEHATPUR from 8th July 2016 to 8th
August 2016.
Miss KAJAL SHARMA. _ has successfully completed the project under the
guidance of Mr. VIVEK WALIA. She is a sincere and hard-working student
with pleasant manners.
We wish all success in his future endeavors.

Signature with date

(Name)
(Designation)
(Company Name)

CERTIFICATE OF ORIGIN
This is to certify that Miss KAJAL SHARMA, a student of Post Graduate Degree
in MBA Govt. Collage Una has worked in the HDFC BANK LTD MEHATPUR,
under the guidance and supervision of Mr. VIVEK WALIA, BRANCH
MANAGER, HDFC BANK Ltd.
The period for which she was on training starting from 8th July 2016 to 8th
August 2016. This Summer Internship report has the requisite standard for the
partial fulfillment the Post Graduate Degree in International Business. To the best
of our knowledge no part of this report has been reproduced from any other report
and the contents are based on original research.

Signature
(Faculty Guide)

Signature
(Student)

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. VIVEK

WALIA, Branch manager, HDFC Bank Ltd, for his able guidance,
continuous support and cooperation throughout my project, without
which the present work would not have been possible.
I would also like to thank the entire team of HDFC BANK Ltd, for the
constant support and help in the successful completion of my project.

Signature
(Student)

HISTORY OF BANKING
Banking is nearly as old as civilization. The history of banking could be said to
have started with the appearance of money. The first record of minted metal coins
was in Mesopotamia in about 2500B.C. the first European banknotes, which was
handwritten appeared in1661, in Sweden. cheque and printed paper money
appeared in the 1700s and 1800s, with many banks created to deal with
increasing trade.
The history of banking in each country runs in lines with the development of trade
and industry, and with the level of political confidence and stability. The ancient
Romans developed an advanced banking system to serve their vast trade network,
which extended throughout Europe, Asia and Africa.
Modern banking began in Venice. The word bank comes from the Italian word
ban co, meaning bench, because moneylenders worked on benches in market
places. The bank of Venice was established in 1171 to help the government raise
finance for a war.
At the same time in England merchant started to ask goldsmiths to hold gold and
silver in their safes in return for a fee. Receipts given to the Merchant were
sometimes used to buy or sell, with the metal itself staying under lock and key. The
goldsmith realized that they could lend out some of the gold and silver that they
had and charge interest, as not all of the merchants would ask for the gold and
silver back at the same time. Eventually, instead of charging the merchants, the
goldsmiths paid them to deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith
were using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900s round the world,
banks merged into larger and fewer groups and expanded into other country.

BANKING STRUCTURE IN INDIA:

In todays dynamic world banks are inevitable for the development of a country.
Banks play a pivotal role in enhancing each and every sector. They have helped
bring a draw of development on the worlds horizon and developing country like
India is no exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a
vehicle for moving finance from those who have surplus money to (however
temporarily) those who have deficit. In everyday branch terms the banks channel
funds from depositors whose accounts are in credit to borrowers who are in debit.
Without the intermediary of the banks both their depositors and their borrowers
would have to contact each other directly. This can and does happen of course.
This is what has lead to the very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money.
But a substantially high rate of interest was charged which made borrowing of
money out of the reach of the majority of the people so there arouse a need for a
financial intermediate.
The Bank have developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.

Banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to
each other, the objective being to lend money, which is the profitable activity of the
three. Taking deposits generates funds for lending and money transfer services are
necessary for the attention of deposits. The Bank have introduced progressively
more sophisticated versions of these services and have diversified introduction in
numerable areas of activity not directly relating to this traditional trinity.

SYSTEM INDIAN BANKING

Reserve Bank of India

Schedule Banks

State co-op
Banks

Non-Schedule Banks

Central co-op
Banks and
Primary Cr.
Societies

Commercial
Banks

Indian

Public Sector
Banks

Commercial Banks

Foreign

Private Sector
Banks

HDFC,
ICICI etc.

State Bank of India

and its Subsidiaries

Other Nationalized
Banks

Regional Rural
Banks

INDIAN BANKING INDUSTRY

ANALYSIS:
The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year
1991, from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have
been swift. All most all the sector operating in the economy was affected and
banking sector is no exception to this. Thus the whole of the banking system in the
country has undergone a radical change. Let us see how banking has evolved in the
past 57 years of independence.
After independence in 1947 and proclamation in 1950 the country set about
drawing its road map for the future public ownership of banks was seen inevitable
and SBI was created in 1955 to spearhead the expansion of banking into rural India
and speed up the process of magnetization.
Political compulsions brought about nationalization of bank in 1969 and lobbying
by bank employees and their unions added to the list of nationalized banks a few
years later.
Slowly the unions grew in strength, while bank management stagnated. The
casualty was to the customer service declined, complaints increased and bank
management was unable to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision
of the future and the banks erred badly in opposing the technology up gradation of

banks. They mistakenly believed the technology would lead to retrenchment and
eventually the marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets.
But the prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or
income Recognition, Assets classification and loan loss provisioning were put in
place and capital adequacy ratio become mandatory. The cumulative impact of all
these changes has been on the concept of state ownership in banks. It is
increasingly becoming clear that the state ownership in bank is no longer
sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private
sector banks and foreign banks.
MAJOR PLAYER IN INDIA
1. HDFC BANK LTD
2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10.INDUSIND BANK LTD
11.YES BANK LTD

INTRODUCTION

INTRODUCTION
The Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBIs liberalization of the
Indian Banking Industry in 1994. The bank was incorporated in August 1994 in
the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January
1995. HDFC is Indias premier housing finance company and enjoys an
impeccable track record in India as well as in international markets. Since its
inception in 1977, the Corporation has maintained a consistent and healthy growth
in its operations to remain the market leader in mortgages. Its outstanding loan
portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities.
With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to
promote a bank in the Indian environment.
HDFC Bank began operations in 1995 with a simple mission: to be a World Class
Indian Bank. We realized 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.
HDFC Bank Limited (the Bank) is an India-based banking company engaged in
providing a range of banking and financial services, including commercial banking
and treasury operations. The Bank has a network of 1412 branches and 3295
automated teller machines (ATMs) in 528 cities and total employees are 52687.

ATMs (Nos.)

BRANCHES (NOS)

3336

4520

4281

11473

2111

2013

2014

5.2

2013

11843

2015

2016

2013

2014

11256

2014

6.14

5.98

12000

2015

2015

2016

6.3

2016

Snapshot
Company Background
Industry
Business Group
Incorporation Date
Public Issue Date
Face Value

Finance - Banks - Private Sector.

HDFC Group
31/12/1994
31/12/1995
10.0000

Company/Business Registration No

INE040A01018

HISTORY OF HDFC BANK

HDFC BANK LTD 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.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder
and Chairman-Emeritus, of HDFC Group .HDFC BANK LTD was amongst
the first to set up a bank in the private sector. The bank was incorporated on 30th
August 1994 in the name of HDFC Bank Limited, with its registered office in
Mumbai. It commenced operations as a Scheduled Commercial Bank on 16th
January 1995. The bank has grown consistently and is now amongst the leading
players

in

the

industry

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units.
HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related
credit facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment in a milestone
transaction in the Indian banking industry; Times Bank was merged with HDFC
Bank Ltd., effective February 26, 2000.

MISSION
I.
II.

World Class Indian Bank

Benchmarking against international standards.

III.

To build sound customer franchises across distinct businesses

IV.

Best practices in terms of product offerings, technology, service levels, risk

management and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business
philosophy is based on four core values such as:1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-step
window for all his/her requirements. The HDFC Bank plus and the investment
advisory services programs have been designed keeping in mind needs of
customers who seeks distinct financial solutions, information and advice on
various investment avenues.

BUSINESS STRATEGY
I.
II.
III.

Increasing market share in Indias expanding banking

Delivering high quality customer service
Maintaining current high standards for asset quality through disciplined
credit risk management

IV.

Develop innovative products and services that attract targeted customers

and address inefficiencies in the Indian financial sector.

BOARD OF DIRECTORS
PERSON

DESIGNATION

Mr. Deepak S.Parekh

Chairman

Sir Gerry Grimstone

Chairman

Mr. Keki M. Mistry

Managing Director

Mr. Norman K. Skeoch

Chief Executive

Mr. Ravi Narain

Vice Chairman

Dr. S.A. Dave

Chairman

Mr. Prasad Chandran

Director

Mr. VishViswanathan

Director

Mr. Amitabh Chaudhry

Managing Director, CEO

Ms Vibha Padalkar

Executive Director, Chief Financial

Officer
Mr. Luke Savage

Chief Financial Officer

Mr. James Aird

Alternate Director

TOP MANAGEMENT

AbhayAima
Anil Jaggia
Rajesh Naik
Bharat Shah
G Subramanian
KaizadManeck
MandeepMaitra
NavinPuri
PralayMondal

Equities & Private Banking and NRI Business

Information Technology and Legal
Treasury
Merchant SeRvices
Audit & Compliance
Credit & Market Risk
H.R, Admin & Infrastructure
Branch Banking
Assets & CREDIT CARDS

Rahul N Bhagat
BhaveshZaveri
AdityaPuri

Retail Liabilities, Marketing & Direct Banking Channels

Operations
Finance

BUSINESS HEADS
A Asokan
Amit Kumar

Emerging Enterprise Group

Retail Branch Banking-West 1

Anil Nath
Arup Rakshit
AshimaKhannaBhat
Ashok Khanna
BhaveshChandulal
BijuPillai
BirendraSahu
Deepak Maheshwari
Gsv Surya Prasad
Harpreet Singh
Jimmy M Tata
Munish Mittal
NandkishorLaxman

Business Banking - Working Capital & Retail Agri

Treasury
Emerging Corporate Group
Retail Assets TW
Wholesale Operations
Retail Assets - EL,PL,LAS & GOLD
retail Operations
Credit and Market Risk
Information Technology
NRI Business
Corporate Banking
Information Technology
Financial Institution Group

NitinSubramanya
ParagRao
RajenderSehgal
RohitGaurav
Sanjay B Dongre
Sanjeev Patel
TariniVaidya

Equities and Private Banking

Credit Cards
Financial Institution Group
Marketing
Legal
Direct Banking Channel
Treasury

INTEGRATED FINANCIAL SERVICES

SECURITISATION

HDFC CHUBB GENERAL INSURANCE CO. LTD

Future Activities

DISTRIBUTION

CHANG
E HGA

BUSINESS SEGMENT

HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:
Who
lesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agro-based businesses.
For these customers, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade services,
transactional services, cash management, etc. The bank is also a leading provider
of structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its
corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the
banking consortia of a number of leading Indian corporate including
multinationals, companies from the domestic business houses and prime public
sector companies. It is recognized as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Retail Banking Services:

The objective of the Retail Bank is to provide its target market customers a
full range of financial products and banking services, giving the customer a onestop window for all his/her banking requirements. The products are backed by
world-class service and delivered to the customers through the growing branch
network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the
HDFC Bank Plus and the Investment Advisory Services programs have been

designed keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit
Card in association with VISA (VISA Electron) and issues the Master card Maestro
debit card as well. The Bank launched its credit card business in late 2001. By
September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2
million cards. The Bank is also one of the leading players in the "merchant
acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments.

Treasury:
Within this business, the bank has three main product areas - Foreign
Exchange and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. With the liberalization of the financial markets in India, corporate need
more sophisticated risk management information, advice and product structures.
These and fine pricing on various treasury products are provided through the
bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury

business is responsible for managing the returns and market risk on this investment
portfolio.

REVIEW OF
LITERATURE

3.1 Meaning
A literature review is a description of the literature relevant to a particular field or
topic. It gives an overview of what has been said, who the key writers are, what are
the prevailing theories and hypotheses, what questions are being asked, and what
methods and methodologies are appropriate and useful. As such, it is not in itself
primary research, but rather it reports on other findings.
3.2 Definition
"... a literature review uses as its database reports of primary or original

scholarship, and does not report new primary scholarship itself. The primary
reports used in the literature may be verbal, but in the vast majority of cases reports
are written documents. The types of scholarship may be empirical, theoretical,
critical/analytic, or methodological in nature. Second a literature review seeks to
describe, summarize, evaluate, clarify and/or integrate the content of primary
reports."
A literature review may be purely descriptive, as in an annotated bibliography, or it
may provide a critical assessment of the literature in a particular field, stating
where the weaknesses and gaps are, contrasting the views of particular authors, or
raising questions. Such a review will not just be a summary but will also evaluate
and show relationships between different materials, so that key themes emerge.
Even a descriptive review however should not just list and paraphrase, but should
add comment and bring out themes and trends.

A good literature
review..

A poor literature
review is..

.. is a synthesis of
available research
.. is a critical
evaluation
.. has appropriate
breadth and depth
.. has clarity and
conciseness
.. uses rigorous and
consistent methods

..an annotated
bibliography
.. confined to
description
.. narrow and shallow
.. confusing and
longwinded
.. constructed in an
arbitrary way

3.3 Purpose of review of literature

A literature review goes beyond the search for information and includes the
identification and articulation of relationships between the literature and
your field of research. While the form of the literature review may vary with
different types of studies, the basic purposes remain constant:
Provide a context for the research
Justify the research

 Ensure the research hasn't been done before (or that it is not just a
"replication study")
Show where the research fits into the existing body of knowledge
Enable the researcher to learn from previous theory on the subject
Illustrate how the subject has been studied previously
Highlight flaws in previous research
Outline gaps in previous research
Show that the work is adding to the understanding and knowledge of the
field
Help refine, refocus or even change the topic
Identifies what is already known about an area of study
Identify questions a body of research does not answer
Make a case for why further study of research questions is important to a
field
3.4 Process of review of literature

Selecting a review topic

Searching the literature
Gathering, reading and analyzing the literature
Writing the review
Reference

Figure no. 3.1 process of review of literature

3.5 Related studies
There are numbers of studies related to my topic Market Penetration and
Digitalization At Banking Sector.
Some of the studies are as follows:3.5.1 Study no. 1Digital Transformation In Banking The Future Of
Banking.
AUTHOR: Sumit has 5+ years of IT experience as a Business Analyst in BFSI
industry. Currently working as a Sr. Business Analyst in Digital Transformation &
Enterprise Solutions business unit.
Digital Transformation is far beyond just moving from traditional banking to a
digital world. It is a vital change in how banks and other financial institutions learn
about, interact with and satisfy customers. An efficacious Digital Transformation
begins with an understanding of digital customer behavior, preferences, choices,
likes, dislikes, stated as well as unstated needs, aspirations etc.. And this
transformation leads to the major changes in the organizations, from productcentric to customer-centric view. A study by CGI entitled, Understanding Financial
Consumers in the Digital Era sheds some light on the desires of todays digital
consumer. Interestingly, at a time when financial institutions seem to be in a lockstep with each other, consumers are raising the bar on their expectations. And,
according to the study by CGI, they are willing to leave where they currently bank
if their needs are not met. The most effective way to understand and bring the

organization from traditional banking to digital banking is Omni-Channel

approach. Omni-channel is a multichannel approach to customer service where all
the channels are tightly integrated, keeping customer in the center of the
integration. As customers continue to change their channel usage patterns, banks
and credit firms need to focus on delivering a seamless customer experience across
various touch points. More than just an axiom, Omni-channel banking is a prospect
to take bottom-line on higher note by gaining insights from customers channels,
behavior and preferences. Todays customers are more sophisticated and tech
savvy, and to cater to their specific needs, each customer needs a unique
experience from banking. They want the companies to understand their unstated
needs as well as their likes. So, it should come as no surprise that these customers
are expecting similar kind of response and service from banking institutions too.
From researching new services, opening an account, checking balance, conducting
transactions, loans, credits, wealth management, customer support, delivering an
Omni-channel experience has become a key to success in this competitive market
place. In the current multichannel model, customers are directed to the least
expensive channel which grounds to not only the dissatisfaction, but also the
channel hopping. The whole process is inefficient, costly and inconsistent. Omnichannel is not the replacement of multichannel, but its the enrichment. Espousal of
Omni-channel is indispensable to ensure that customer experience is unified,
incorporated and supports customer at the right time, in the right place as the right
way. It must be as per their mobile and digital life style. Staying germane in current
banking revolution entails deep acquaintance of customers needs, wants and
demands. It also requires the precise mixture of IT infrastructure and innovative
new technologies to certify that one remains ahead in current market space to drive
top, as well as bottom lines upwards. PwC Indias leader banking and capital
markets, Shinjini Kumar said, Many Indian banks, like their Asian counterparts,
are geared to use the advantage of local talent and leapfrogging technology to
create forward looking digital strategies. However, there is a lot of ground to cover
on creating Omni-channel experience and enhancing processes from the
customers point of view.
Study 2: Going digital : The banking Transformation Road Map
Author :Michel Jaubert , (Partner Paris) ; Stefan Marcu (Principal Warsaw) ;
MattiasUllrich (Consultant Frankfurt) ; Renaud Dela (Consultant, Paris) ; JeanBaptisleMalbate (Consultant, Paris)
Most banks today want to become digital banking leadersafter all, that's
where the customers are. And for much of the past decade as digital

banking has taken hold, most leading traditional banks have incorporated
strong digital strategies.
So what separates the digital banking leaders from the laggards? A new
A.T. Kearney study on digitization, in conjunction with Efma, seeks the
answer and finds three main findings: the leaders understand the
importance of mobile in a digital strategy, they are developing more agile
operating models, and, most notably, they have tackled the need for
internal culture shifts
With top-down implementation, these leaders have set their paths toward
becoming more client-centric, more tech-savvy, and more inclusive. As the
market evolves even more rapidly through the end of the decade, all banks
will have to adapt to a disruptive model in people and ITthe two engines
of retail bankingand must fundamentally adapt to deliver the best results.
The future will bring a new banking paradigm: a new delivery model
where digital teams are integrated with existing personnel, and where some
pure digital players may add physical branches to showcase their brands;
newly formed IT with an app-focused front end, a central core database
connected and hosted in the Cloud, and a back end widely industrialized
and outsourced; and a digitized culture, where all employees are "digital
certified," and where time and cost are given to adapting skills and
headcount to deal with competitive and margin pressures.
Compared to the way digital disruption is hitting other service industry
sectors less protected by regulation and domestic specificitiessuch as
media, telecom, and retailit seems that retail banks at this point have
only addressed the tip of the iceberg when it comes to digital
transformation.
Current efforts in terms of marketing and distribution to build banks' digital
image and to keep digital customers from slipping away seem to be
providing short-term help, but there remains much work to be done to
ensure profits are protected in the future.
In parallel to customer-facing areas, banks also need to reexamine their
operating models, with an end-to-end process review that takes into
account current and target costs and the proper allocation of both human
and technological resources. For example, can legacy IT and operations be
adapted, or should pure-play models be developed with the goal of
eventually incorporating them into the core business?

Study 3: A Critical Study of Digitalization in the Indian Banking Sector

Author :TeenaShivnani ( HOD, Business & Commerce, Manipal University Jaipur.
) , MallikaAhuja (Research Scholar, Business & Commerce, Manipal University
Jaipur)
This era in which we live today is predominated by the word Digitization. This
word which has evolved in recent times has undoubtedly become the crux of
Banking Sector in our country. Banks in our country are no longer made of just
bricks & mortar delivery channels. They have surely revolutionized into the
concept of anytime, anywhere. New mantra for banks says Digitalize or die.
Digitalization is mainly concerned with what all banks are required to do in order
to provide better services to the customers. There are various technologies which
are to be adopted for digitalization of back office. It also ensures self-sufficiency to
the customers in whichever way possible. The major importance of digital banks
lies in their ability to be omnipresent. Since challenges often give birth to
opportunities, so the major challenge in front of the banks is to digitalize
themselves. Enabling them to meet preferences of the people of all generations has
also given rise to enormous opportunities, resulting into the revolutionized version
of banking known as Digital Banking. This conceptual research article deals with
the evolution of Digital Banking in India, its techniques and also the present
structure of digitalization in India.
Conclusion & Recommendation
Pure payments as a result of digitalization are being replaced by Digital Wallets.
Many other aspects of banks are either being transformed or being evolved into
something new. So the major question which is needed to be answered here is that
to What extent would banks be able to utilize the extensive opportunities arising
out of the digitalization? Utilizing digitalization in an efficient manner holds a
great importance in India. It is also depicted by the quote of Nassim Nicholas
Taleb, Banking is a very treacherous business because you dont realize its risky
until it is too late. It is like calm waters that deliver huge storms.

Study 4: Digital disruption in Nordic retail banking

Author :I lkka Ruotsila (Nordic Head of Banking & Finance in the Accenture
Strategy practice) ; Peter Kedah (the managing director Accenture Strategy in the
Nordic region) ; Daniela Vitali (Manager dedicated to the financial services sector
in the Accenture Strategy practice with experience in IGEM and in the Nordic)
Digitization is changing industries across the world and altering the way we as
individuals and companies operate. Banking is no exception. While the industry
has been on a path towards digitization for a number of years, it is the advent of the
mobile device that dramatically accelerated the pace of change. Now millions use
apps to handle a majority of their transactions. This has changed the way people
bank and the ways banks interact with their customers. In this study we look at the
challenges and opportunities emerging for Nordic banks through digitization in
banking.
Four driving factors are rapidly impacting the banking industry
1. Similar to any consumer-oriented industry, banks are facing new customer
demands fueled by digital customer expectations for convenience of banking
services are driven by digitalization in other industries 2. The ongoing industry
convergence is opening doors to new competition, new ways of doing business and
new revenue opportunities 3. Fueled by intensified technology innovation,
customer expectations and empowerment are rising rapidly which enables new
players to enter the value chain 4. Digital disruptors address customer needs in
completely new ways and are growing strongly throughout the Nordics
Digital ambition needs to be balanced with change both on the outside and the
inside throughout the transformational journey, where banks struggle with their
legacy systems.
Technology innovation
Mobile: smartphones are driving uptake of mobile banking and by
2014 half of the worlds new handsets will be smartphones
Social: there are more than a dozen social networks with over 100
million users today, with Facebook alone surpassing 1 billion
members in 2012
Big data & Analytics: IDC forecasts that the volume of digital
information will grow from approximately 2.4 zetabytes today to 40
zetabytes in 2020

 Cloud: Cloud technology is maturing and service offerings move up

the technology stack from data storage and infrastructure to software,
platforms and business process

Fig : value of digit business

Study no. 5: Banking Upon Digital How Banks Can Cash in on Digitization
As customers demand services focused on technologies of the 21st century,
becoming a digital bank is a challenge all banks face. Thats not simple as banks
have to change their core systems to become truly digital. They have to bring in
new platforms with resilience, security and reliability. Traditional banks have to
watch out against new and nimble companies looking to enter the banking market
using new technologies such as mobile and to steal market share
Banks have to anticipate that potential competitors can encroach from several directions, as
changing customer behaviors and digital technologies redefine the competitive landscape.
Wireless telecom companies, online payment systems and multifarious Internet-based
businesses, along with a number of innovative startups, are taking on or planning to take on
traditional banks by offering lower costs and greater convenience and speed. - See more at:
https://www.netsolutionsindia.com/blog/banking-upon-digital-how-banks-can-cash-in-ondigitization/#sthash.q1WobRkx.dpuf

RESEARCH
METHODOLOGY

4.1 OVERVIEW OF RESEARCH METHODOLOGY

Planning provides a framework within which the goals of research are to be
achieved. It facilitates the smooth sailing of the various research operations
thereby, making it as efficient as possible, yield maximal information with minimal
expenditure of efforts, time and money. The plan and procedure of any research
study is bound up with its purpose. The purpose of the present study MARKET
PENETRATION AND DIGITALIZATION AT BANKING SECTOR IN HDFC
BANK . To carry out research study, a systematic model and procedure was
adopted. By methodology we mean the selection of the relevant data, applying
appropriate research tools and techniques for analysis, scientific investigation of
the problem. The content of this section deals with method and procedure of the
study. Samples were drawn from state banks customers. Data was collected with
the help of structured questionnaire.
4.2 DEFINITION OF THE PROBLEM
The first step in research is the formulation of a research problem. It is the most
important stage in applied research since poorly defined problem will not lead
useful results. It is rightly said, A problem well defined is half solved. A poorly
defined problem causes confusion and does not allow the researcher to develop a
good research design.
4.3RESEARCH DESIGN

To design is to plan, that is, designing is a process of deliberate anticipation

directed towards bringing an expected situation under control. It is an arrangement
of conditions for collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure. All research
involves the elements of observation, description and the analysis of what happens
under certain circumstances. The present study is designed to know more about
PENETRATION AND DIGITALISATION AT BANKING SECTOR. In order to
study the stated relationship, the descriptive- survey method of investigation is
used. In the light of the facts, the present study is descriptive in the sense that it
aimed at describing the nature and distribution of the variables. The research study
is a survey, as it has definite objectives, planning analysis and interpretation of the
data gathered, and skillful reporting of the findings. The study has only one
independent variables that is customer satisfaction.
4.4 METHOD OF DATA COLLECTION
The study is based on primary as well as secondary data. Secondary data research
included customer satisfaction. From the secondary data the objectives of the study
were framed. Primary data for research was collected with the help of selfadministered questionnaire that was especially designed to achieve the study
objectives.
Data collection was done over a period of one month. Respondents were selected
randomly from the City Una (Himachal Pradesh) those were the people of different
professions as mentioned under sampling for the study. The questionnaires were
distributed during various working hours on weekdays.
4.4.1 SAMPLING FACTORS
Sample collection

Sample collection of the data is the valuable data that is used for the analysis and
interpretation through which a result can be brought out for the purpose of the
study. The
Data required for the study is collected with the help of questionnaire. These
Questionnaires are handed over to the customers and asked to get it filled up. The
data is
Interpreted from the information that is incurred from the questionnaire
Sample size
Sample size is considered to be the quantity of data that has been collected for the
study. Due to the limitation of time and scope of the study the number of
respondents from which the data is collected is 250. The sample size will be
covering customers at various profiles viz. gender, age, occupation and family
yearly income. Such a categorization is done because of attaining the most accurate
result that is required for the study.
Sample areas
Sample area is considered to the location where the study has been conducted. The
Location may comprise of certain boundaries which the researcher would have
been able to easily cover up for the study. Sample area means area in which
research is conducted. I have covered City una (himachal pardesh ) for conducted
the survey
Research tools used
For the present study measures of central tendency tools such as frequency
distribution and percentages are used

4.5 Central tendency

A central tendency is a central value or a typical value for a probability
distribution, it is a occasionally called an average or just the center of the
distribution.

4.6 Questionnaire design

The questionnaire was filled by 250 respondents these questions are filled by every
age group questionnaire based on sequel scale to digitalization. Question were
categorised according with various options according to the questions.
Questions in the questionnaire are self-made question in order to understand the
employees thinking toward the digitalization at banking sector and the changes that
occurs due to that in their life.

DATA ANALYSIS
AND
INTERPRETATION

5.1 MEANING
The process by which sense and meaning are made of the data gathered in
qualitative research, and by which the emergent knowledge is applied to clients'
problems. This data often takes the form of records of group discussions and
interviews, but is not limited to this. Through processes of revisiting and
immersion in the data, and through complex activities of structuring, re-framing or
otherwise exploring it, the researcher looks for patterns and insights relevant to the
key research issues and uses these to address the client's brief.

5.2 PURPOSE OF DATA ANALYSIS

The purpose of analyzing data is to obtain usable and useful information. The
analysis, irrespective of whether the data is qualitative or quantitative, may:
describe and summarize the data
identify relationships between variables
compare variables
identify the difference between variables
forecast outcomes

5.3 PROCESS OF DATA ANALYSIS

Data analysis is a process for obtaining raw data and converting it into information
useful for decision-making by users. Data is collected and analyzed to answer
questions, test hypotheses or disprove theories.
There are several phases that can be distinguished. The phases are iterative, in that
feedback from later phases may result in additional work in earlier phases.
Statistician John Tukey defined data analysis in 1961 as: "Procedures for analyzing
data, techniques for interpreting the results of such procedures, ways of planning
the gathering of data to make its analysis easier, more precise or more accurate,
and all the machinery and results of (mathematical) statistics which apply to
analyzing data."
Data requirements
Data collection
Data processing
Data cleaning
Exploratory data analysis
Modeling and algorithms
Data product

 Communication
The data is analyzed through fifty questionnaires, which is fulfilled by the
employees of different companies. There are nineteen questions were asked. The
purpose of filling the questionnaire was to study digitalization at banking sector.
Data interpretation is also done on the basis of responses given by the respondents.
5.4 DATA ANALYSIS
Table no 4.1:.Demographic profile of respondents:
Gender

Frequency

Valid Percentage

Male

160

64

Female

90

36

Total

250

100

Age

Frequency

Valid Percentage

20-25

37

14.8

26-30

83

33.2

31-35

70

28

36-above

60

24

Total

250

100

Annual Income

Frequency

Valid Percentage

Up to 1,00,000

92

36.8

1,00,000-1,50,000

74

29.6

1,50,000-2,00,000

33

13.2

2,00,000 and above

51

20.4

Total

250

100

Marital status

Frequency

valid percentage

Married

128

51.2

Unmarried

122

48.8

Total

250

100

The above table shows demographic profile of the respondents. As it can be seen
that out of 100% respondents, 64% are male and 36% are female.

As it can be seen that out of 250 respondents, 14.8% are between the age of 20-25,
33.2% are between the age of 26-30 and only 28% are between the age of 31- 35
and 24% are between the age of 36 and above.

As it can be seen that out of 250 respondents,36.8% respondents are earned up to

1,00,000 per annum, 29.6% are earned between1,00,000 to 1,50,000, p.a and
13.2% are earned 1,50,000 to 2,00,00 and 20.4% are between 2,00,000 and above.

As it can be seen that out of 250 respondents, 51.2% respondents are married and
48.8% respondents are unmarried.

Question no.1
DO YOU HAVE BANK ACCOUNT?
Responses

No. of person

Yes
No

245
5

Valid percentage
98
02

Yes
No

Question no. 2 DO YOU HAVE ACCOUNT IN HDFC BANK ?

Responses

No. of person

Valid percentage

Yes
No

126
124

50.4
49.6

YES
NO

Question no. 3 DO YOU USE NET BANKING?

Responses

No. of person

Valid percentage

Yes
No

151
99

60
40

YES
NO

i)

IF NO , HAVE YOUR BANK GUIDED YOU ABOUT NET BANKING

Responses

No. of person

Valid percentage

Yes
No

100
150

40
60

YES
NO

Question no. 4
ARE YOU USING ANY OF THE APPS FOR TRANSACTION PURPOSES?
Responses

No. of person

Valid percentage

Yes
No

104
146

42
58

YES
NO

Question no.5
ARE YOU INTERESTED IN KNOWING NET BANKING?
Responses

No. of person

Valid percentage

Yes
No

177
73

71
29

YES
NO

Question no. 6
DOES THE BANK AWARE YOU ABOUT NET BANKING PROCESS?
Responses

No. of person

Valid percentage

Yes
No

182
68

73
27

YES
NO

Question no. 7
DO YOU HAVE A CREDIT CARD?

Responses

No. of person

Valid percentage

Yes
No

66
184

26
74

YES
NO

8)

DO YOU Have A DEMAT ACCOUNT?

Responses

No. of person

Valid percentage

Yes
No

53
197

21
79

YES
NO

9)

DO YOU INVEST IN MUTAL FUNDS?

Responses
Yes
No

No. of person

Valid percentage

70
180

28
72

YES
NO

10)

DO YOU FIND NET BANKING SECURE?

Responses

No. of person

Valid percentage

Yes
No

137
113

55
45

YES
NO

11)

ARE YOU CONVIENENT WITH ONLINE BANKING?

Responses

No. of person

Valid percentage

Yes
No
NOTA

107
39
39

58
21
21

YES
NO
NOTA

12)
DID YOU KNOW ABOUT MISSCALL RECHARGE THAT HDFC BANK RECENTLY
INITIATED?

Responses

No. of person

Valid percentage

Yes
No

155
95

62
38

YES
NO

13)

DO YOU FOLLOW HDFC BANK ON SOCIAL NETWORKING PLATFORM?

Responses

No. of person

Valid percentage

Yes
No

62
188

25
75

YES
NO

14)

WHAT ARE THE ADVANTAGES OF NET BANKING?

Responses

No. of person

Valid percentage

speed
Openness
Secure
Its on your fingertip
All
Nota

30
22
27
48
37
37

15
11
13
24
18
18

speed
opennes
secure
fingertip
all
nota

15)

WHICH FEATURE OF YOUR BANK DO YOU LIKE THE MOST?

Responses

No. of person

Valid percentage

Time of transaction
Ease of transaction
Staff behavior
Others
All
Nota

42
51
114
24
4
5

18
21
48
10
2
2

time of transaction
ease of transaction
staff behaviour
other
all
nota

16)

WHAT ALL ARE THE FRINDGE BENEFITS THAT YOUR BANK IS PROVIDINGYOU?

Responses

No. of person

Valid percentage

Miscall recharge
Token time to time
Sweep in sweep out
Balance enquiry via miss call
All
Nota

32
44
26
96
12
29

13
18
11
40
5
12

Chart Title

misscall recharge
token time to time
sweep in sweep out
balance enquiry via miscall
all
nota

17)
DO YOU GET GUIDELINES FROM THE EMPLYOEES OF OTHERS BANK FOR
INVESTMENT?

Responses

No. of person

Valid percentage

Yes
No

116
134

46
54

Chart Title

YES
NO

18) DO YOU WANT TO OPEN AN ACCOUNT WITH HDFC BANK?

Responses

No. of person

Valid percentage

Yes
No
ALREADY HAVE

48
64
126

20
27
53

YES
NO
HAVE

(i)

Responses

IF ALREADY HAVE, DO FACE ANY ISSUES WITH HDFC bank services?

No. of person

Valid percentage

Yes
No

0
126

0
100

Yes
No

Findings
&
Suggestion

FINDINGS
From the sample taken we can say that people are aware about presence
of HDFC bank.

Consumer exercise different choices while selecting particular bank

Loyalty
Trust on public sector bank
Followers
Changes are slow and gradual, in semi urban area major source of funds
are generated via government institutes and offices.
With the passage of time we are now 50+ crore branch.
Offers given to our customer act as catalyst in giving publicity to our bank.
Digitalization is playing a pivot role in giving edge over other banks.
Considering semi urban area, the surprising fact is that youth below age of
35 are doing less transaction via internet rather than people above it.
Considering variety of application present customer have different sets of
choices
Some prefer their phonebook to get sync with account so that
transaction is easy other prefer conventional method via computers
and laptops
Brick and mortar banking is losing its sheen as more and more people are
joining hands with this new format of transferring money.
It could righty be said that that brick and mortar banking will be replaced by
click banking

As per the sample size we have achieved 100% customer satisfaction.

Innovations in the digital world have made us stand upright with other
nationalized banks.
We are penetrating in the Una market thick and fast.
About 26% of total customers are using Click Banking.
People will gain more trust on HDFC bank if we could overtake government
offices CASA.

Though we have achieved supremacy in digital world yet our apps

are void of certain features:
Electricity bill and Telephone bill (Himachal Pradesh) cannot be paid via
HDFC mobile banking app.
Beneficiary cannot be added via app.
When credit card points are redeemed by customer new page is opened,
parent banking is closed.
Credit card offer are given to every account holder.

Sunny Rathore was eligible for fast approval loan in 10 minutes (offer given
via net banking) yet his case took more than 2 days to accomplish.
The data that was collected in accordance to population of una is about
0.08% and only 2.52% of the prior customer thus exact number may vary if
the whole population is taken into consideration.

SUGGESTIONS

Credit card offer should be given to only person who are eligible for it, as
customer feels dejected when his eligibility conditions are not meant even
when offer is provided to him.

Our apps should be fully functional with bill paying mechanism for every
department.
Proper filter mechanism for every customer should be done prior to giving
him offers.
We should try to bring more government offices account into our bank as
they will bring large amount of revenue for the bank.
Before providing sweep in sweep out facility to the customer we must ask
customer if they want it or not as different people have different sets of
taste and people gain more trust if we invest their money after asking them.

Changes are slow and gradual, in semi urban area major source of funds
are generated via government institutes and offices.
Offers given to our existing customer act as catalyst in giving publicity to
our bank
We are penetrating in market at even pace yet we require overcoming
some flaws in digital world to gain edge over competitors.

REFRENCES
www.businesstandard.com
www.hdfc.co.in
Data from census department.
www.moneycontrol.com
sherkhan-HOME>>MARKET
TODAY>>COMPANY
SNAPSHOT>>DIRECTORS SPEECH.

 HDFC most valuable brand in India

WPP STUDY LIVERMINT SEPTEMBER
10,2015

THANKS