Summer Training Report

On

Customer Relationship Management in Banking Industry

In the partial fulfilment of the Degree requirement towards the

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SESSION (2017-2018)
This is to certify that the survey entitled, CUSTOMER RELATIONSHIP MANAGEMENT
submitted in partial fulfilment of the requirement for the award of degree of Bachelor of
Business Administration (BBA) from Lovely Professional University, Jalandhar is a bonafide
summer training project work carried out by virendra verma, under my supervision and guidance
and to the best of my knowledge and information, no part of summer training project work has
been submitted for any other degree or diploma.

Branch Manager

M. Khalid

HDFC Bank,

Nautanwa, Maharajganj
 DECLARATION

I undersigned Virendra verma student of BBA MBA 4th semester declare that I have done the
project on CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING INDUSTRY AT HDFC BANK
LTD. has been personally done by me under the guidance of Prof. Pradeep Bawa Phagwara in
fulfillment of BBA- MBA Program- during academic year-2015-19. All the data represented in
this project is true & correct to the best of my knowledge & belief.

I also declare that this project report is my own preparation and not copied from anywhere else

Date 15-7-2017
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of
those who have directly or indirectly helped me in the successful completion of this project.

I present my sincere thanks to Mr. M.Khalid (Branch Manager, Nautanwa ) who allowed me to
take training at HDFC BANK I would also like to thank HDFC bank Staff for their wonderful
support & inspirable guiding.

I also thank Prof. Pradeep Bawa sir of Lovely Professional University who has sincerely
supported me with the valuable insights into the completion of this project.

Last but not the least I am indebted to my PARENTS who provided me their time, support and
inspiration needed to prepare this report.

Date: -15/07/2017
 PREFRACE

Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge relating to
the concepts and practices of the assigned topics in the organization.

The summer training is an integral

part of the course curriculum of Bachelor of Business Administration (B.B.A. 5thSem). In this
the student is in the position to analyses the integral working of an organization with mature eyes
and understand the dynamics in a much better manner.

This particular project has been conducted at HDFC Bank. In the first phase of the research
project, there is an introduction of Banking, company profile and products of HDFC Bank are
given. After that a market research is performed with a sample size of 250 people. The research
study was limited to Nautanwa. Here, in my survey, I have contacted the respondents through
personal interviews with the help of questionnaires.

The main objective of the research is to know the customer relationship management level and
their perception regarding Banking Services and to know the customer awareness regarding the
Banking Services.

HDFC Bank should lay more stress on advertisements, both in print as well as in other media. Both
new and existing players will have to explore new distribution and marketing channels. Potential
buyers for most of Banks lie in the middle class. Competitors must segment the market carefully to
arrive at appropriate products and pricing. Recognizing the potential, in the past three years, the
nationalized Banks have already begun to target niches like pensions, women, children and rural
peoples.
 Customer relationship

Customer relations is the process and manner by which a business develops,

establishes, and maintains relationships with its customers. Businesses rise and fall
through the support of their customer bases. Consequently, it is absolutely essential
that you develop effective customer relations. On a practical level, customer relations
are effectively communicating with your customers and promptly addressing complaints
and treating them as opportunities for improvement. In other words, listen to your
customers!

Key motivating drivers for the development of more innovative CRM strategies are Web
technologies and a sharpened global focus on customer loyalty.

CRM also

Provides a way to directly evaluate customer value. For example, a business that
is genuinely interested in its customers is rewarded with customer and brand
loyalty. Because CRM is mutually advantageous, market share viability advances
at a sound pace.
Provides cross-selling opportunities, where, based on customer approval, a
business may pitch proven marketing or brand strategies to more than one
clients.

RELATIONSHIP

Maintaining a loyal base involves building relationships with customers by

acknowledging them. It is difficult to attract customers, and a key aspect of customer
relations is retaining a loyal base of customers who keep coming back to the company.

RESEARCH METHODOLOGY

This research study is based on primary data collected from 250 respondents from HDFC bank
in India, The primary data has been collected by administering a questionnaire consisting of 44
questions, out of which 41 are close ended questions. The questions pertaining to CRM items
have been designed using the five point Likert scale. 7 questions have been used to create the
demographic profile of customers, 3 questions pertain to the particular bank services used by
the customer; and 33 questions to gauge the perception about customer relationship
management programme of the bank and the customers loyalty towards the bank.
The primary goal of customer relationship management systems is to integrate and
automate sales, marketing, and customer support. Therefore, these systems typically
have a dashboard that gives an overall view of the three functions on a single customer
view a single page for each customer that a company may have. The dashboard may
provide client information, past sales, previous marketing efforts, and more,
summarizing all of the relationships between the customer and the firm.

Customer Relationship Management in Banks

Customers are considered as the fundamental non-core financial asset by the banks
across the globe in the present day scenario. Courteousness, correctness and rapidity
are the imperative factors in the efficient running of a bank. A highly satisfied customer
will market for the bank and bring in more new customers to increase the business of
the banks.

The banks should adopt novel strategies and policies to decide on what to offer, whom
to be focused, when to approach, how to promote and be unique in product and service
offerings to increase their profitability. Banks need to make a difference in them by
offering general products to meet the general demands of the customers and to offer
customized services for the specific requirements of the customers. There is a
revolution happening in the banking industry. The customers are occupying the Centre
stage outshining other factors. The customers are flooded with lot of information and
becoming more tech savvy. This has increased the competition among the bankers.
The competitive forces over the years are compelling the banks to concentrate more on
increasing the number of customers and in providing better service quality. In other
words CRM has become a major focus for the banks.
The banks in the present era are facing stiff competition and they are struggling to find a
place in the industry. They have realized the fact that CRM is a powerful tool to achieve
success in their business. CRM is an effective tool for the bankers to acquire new
customers and to retain the existing ones. CRM in the banking sector is of strategic
importance
The present study concentrates on the various issues of CRM practices of the Public
Sector, New Private Sector, Old Private Sector and Foreign Banks.
The banks are confronting numerous problems in attracting new customers and in
maintain the existing customer base. The technology advancement has led to
knowledgeable customers and as a consequence, the customers loyalty is facing a
down trend.
Two strategies are identified for increasing a banks market penetration; one is to
concentrate on acquiring new customers and the other is to maintain the existing
customers. In spite of applying the above strategies, not all the customers are retained
and as a result, the organizations need to identify those customers at risk of leaving in
order to reduce defections becomes vital .
Implementation of CRM poses a greater challenge to the banks after acquiring the
customers. The various ways and means through which CRM is implemented by the
banks determine the success or failure of the entire concept.
The banks should concentrate highly on the valid elements of their CRM strategy for
generating customer satisfaction and customer loyalty. This will be possible only with
the help of effective.
Banker Customer Relationship

Introduction

Banking business today is much diversified and a banker render several services to its customer
to meet their requirement .Some relationship between the banker and customer based on the
functions of banking are discussed hereunder.

Debtor and creditor .The general relationship between banker and customer is that of a debtor
and creditor ,i.e. .., borrower and lender based on the existing state of the account. Banker can
use the money deposited with him in a manner deemed fit and it bound to repay the deposits
as and when the customer demand ,but the customer does have a right to claim identical notes
and coins

There are some differences in this relationship compared to that of commercial debtors and
creditor relationship .

a. Commercial debtor pays the amount on specific date or earlier or whenever creditor
demand at creditors place or any other place without any restriction as to the receipts
and payment of money where as banker debtor is not bound to repay on his own until
the depositor demands the money from the bank and only at the place the banker and
during the specific banking hours.
b. Banker get deposited without any securities where as very often commercial debt is
raised by offering adequate security.
c. Law of limitations is applicable to commercial debt from the date of debt where as in
case of bank debt it start from the date of demand by the customer.
d. Commercial debtor can closed the account at any time by full repayment but a bank
cannot closed a customer account debt without consent from customer.
e. Commercial debtor cannot combine the accounts of his creditor but a banker can
combine the accounts of its customers .
f. Interest rates in respect of commercial debt are generally high and driven by the market
condition of demand and supply but bank debt deposited interest rate are lower and
fixed by the a banker.
Principal and Agent. Section 182 of the Indian contract 1872 defined that An agent is a person
employed to do any act for another or to represent in dealing with third person. The person for
whom such act is done or who is represented is called the principal.

A banker performs many services to the customer in performance of which banker act
as an agent for the customer and such service include
a. Buying and selling of securities on behalf of the customer
b. Collection of cheques dividend warrants etc. on behalf of customer
c. Payment of insurance premia, telephone , etc.
d. Acting as trustee attorney executor representative of the customer

Any money interested to a banker as an agent of the customer with specific instruction cannot
be combine with other money in his hand as debtor and creditor

Fiduciary Relationship .The fiduciary relationship between the banker and customer arises
when the money is paid to a bank with special instruction or to retained the same pending
further instruction or where instruction are given by the customer that a part of the amount
laying in his account be forwarded to another bank to pay a bill and the amount is sent by
banker as directed

Trustee and Beneficiary .when money is deposit by customer for a specific purpose till that

purpose is fulfilled , the banker is regarded as a trustee of the money . Similarly if the

customer deposits securities or valuables with the banker for safe custody , the banker acts as

a trustee of his customer and the customer continues to be owner of such valuables deposited

with the banker . But when borrower transfer to the banker certain shares in a company as a

collateral security ,no trust is created in respect of such shares.

Bailor and Bailee.. A banker becomes a bailee [not a trustee or agent ] when he receives gold

ornaments or important document for safe custody and is bound to return the identical articles

on demand . Customer [bailor] has to pay safe custody charges . A banker as a bailee has

certain duties , such as , to take reasonable care of the goods bailed not to make unauthorized

use of goods bailed , mix bailor s goods with his own goods ,to returns the good on the
fulfillment of the purpose ;and to deliver to the bailor increase or profits [dividend on shares or

interest on debentures, etc. on goods bailed . Banker has a right to recover the charger or any

expenses in connection with the bailment or compensation for any loss sustained by the banker

by reason that the bailor was not entitled to make the bailment or to receive back the goods

bailed.

Pawn or and Pawnee. A Pawan is defined to be a bailment or delivery of goods by a debtor to

his creditor as a security for money borrowed .Banker is Pawnee the customer a paw nor and

goods are pawn. The Pawnee has the right to receive the payment from the paw nor towards

any extraordinary expense incurred in safeguarding the pledged the goods and a rights to sell

the pledged goods if the paw nor makes default on the loan . The Pawnee has duty to return

the goods on receipts of.

Mortgagee and Mortgagor. Mortgagee is transfer of an interest in specific immovable property

for the purpose of securing the payment of money advanced or to be advanced by the way of

loan, an existing or future debt or the performance of an engagement which may give rise to

pecuniary liability. Mortgager is borrower customer and Mortgagee is lending banker. The

relationship is established when mortgagor executes a mortgagee deed in respect of his

immovable property in favor of the mortgagee or deposits the title deeds of his property with

the bank to create an equitable mortgage as security for the advance. Banker can sell the

property with the permission of the court to realize his debt.

Lessor and Lessee.. When a customer hires a looker in the bank safe deposit locker the bank

undertake to the necessary precaution for the safety of his articles left in the locker and the

relationship created is that of lessor and lessee .

Guarantor and Guarantee.. Guarantor is a person who gives a promise for the payment of

some debt
incase of failure of another person ,who in the first instance is liable for such payment. Bank

obtains guarantee in certain advanceds. The guarantor executing the guarantee deed

TYPE OF TRANSACTION POSITION OF BANKER POSITION OF CUSTOMER

Deposits account or CC A\C in Debtor Creditor
credit balance
Advances A\Cs =Debit Creditor Debtor
balanced
Collection of cheques . Sale of Agent Principal
purchase of Securities / shares
Standing Instructions
Purchaser of Draft Debtor Creditor
Payee of a Draft Trustee Beneficiary
Cheques deposited pending Trustee Beneficiary
instructions for disposal thuch
cheque ere of
Locker Lessor Licensor Lessee Licensee
Mortgage of Immovable Mortgagee Mortgagor
property
Wrong credit given by the bank Beneficiary Trustee
till the amount is recoverd
assurances the bank holding the guarantee , that any breach of the contract of discharging the

liability by the borrower the guarantor would make good the amount.

Bank also give guarantees by the way letters of credit for imports of goods where as the

undertakes to pay the pay the amount without any demur on mere demand on the ground of

non performance .

The relationship between banker and customer in different types of transaction is given in a

tabular format hereunder.

Duties or obligation and rights of a Banker

There are certain noticeable aspect of banker Customer relationship which have a important

bearing on the day to today business of banking .

The general obligation of a banker towards its customer are.

a. Obligation to honor the cheques when the balance in the account is sufficient to meet

the payment of cheque ,the cheque is otherwise in order and presented for payment in

accordance with the provision of Negotiable Instrument Act as discussed in the chapter

NI Act .

b. Obligation to maintain secrecy the foundation of the banker and customer

relationship is of confidence and secrecy. The banker should take all precaution to

ensure that the state of affairs of customer account is not made known to others by any

means without the consent of the customer . The duty is continuing even after the

account is closed or the customer has died.

Exception to the obligation to maintain secrecy . A banker is justified in disclosing the

information about his customer account on reasonable grounds as stated below.

Disclosure under the compulsion of Law. When the law requires such disclosure ,it

cannot overridden .The banker obligation to his customer is subject to his

duty to the law of the land . Such occasion are.

Under section 131 and 133 if income Tax Act 1961 ,Income Tax Authorities have powers to

call for information from banker for the purpose of assessment of the banks customer .
Under section 4 of Banker Evidence Act 1891 , a banker may asked by the court to produce

a certified copy of his customer account in his ledger .

Under section 45 of the RBI Act 1934 the RBI is empowered to collect credit information

relating to customer from their bank.

When Garnishee order nisi is received the banker must disclose the nature of account of a

customer to the court .

- Disclosure in the interest of public a banker is justified in disclosing the information

relating to his customer on the ground where money is kept for extreme political

purpose in contravention of any law, on the ground of unlawful association , account of

terrorist body to avert any danger to the state account of enemy in time of war and

when sizable funds are received from foreign countries by the customer .

- Disclosure in the interest of the bank Banker may disclose the affairs of a customer to

protect his own interest legally disclosure to the guarantor or solicitor for the recovery

of dues of a customer .

- Finally a banker may disclose the information about his customer account on the

express consent of a customer.

The Rights of a Banker

a. Banker Right of general lien. A banker may in the absence of a contract to the contrary

retain as a security for the general balance of account any goods or securities bailed to

him.
Essential of banker general lien there must not be a contract to the country , the

property must come his hands in his capacity as a banker , the possession must have

been obtained lawfully and the property was not entrusted to the banker for any

specific purpose .

Example. Cheques deposited for the collection ,Dividend or Interest paid to the banker

under a mandate from the customer securities deposited to secure a loan have not been

collected after the closure of the loan etc.

The rights of general lien is not barred by the operation of the limitation act and the

banker can retain security even in case of time barred debt . The rights of general lien

applies to all those security goods and documents that comes into the hands of a banker

in the ordinary course of his business as the banker of his customer and not in any other

capacity .It can be exercised only in respect of goods or securities standing in the name

of the borrower only and not jointly with others.

B. Banker rights of set off . When a customer keeps two or more account at the bank ,

some of which are overdrawn and some in credit the bank has a right to combine such

two or more account and pay the resultant balance ,if any upon a demand being made

by the customer ad such rights is known as Banker rights of set off .This can be

exercised only in respect of debts i.e. ,. Credit balance held in the account and not in

respect of securities wherein he has rights of general lien as discussed above.

Rights of set off can be exercised only in the respect accounts in the same name and in

the same rights in respect of debt due (not in respect of debt future debt),amount must

be certain and in the absence of the contract to the contrary by giving a formal notice to
 the customer .Exercised of right of set- off is at the discretion of a banker .Banker has

the rights of set-off before a Garnishee order is made effective.

Automatic .. The right to set-off all account arises immediately in the following instance

- On the death ,mental incapacity or insolvency of a customer .

- On the insolvency of a firm or on the liquidation of a company .

- On the receipt of a garnishee order .

- On receipts of the a notice of a second mortgage over security charged to the bank .

C. Banker rights to claim incidental charges.. Banker has rights to claim charges on un

remunerative account which may be in the form of service charge ,processing charges,

ledger folio charges appraisal charges penal charges handling collection charges

commitment charges so on.

D. Banker rights to charge compound interest ,. Banker are given a privilege of charging

compound interest except in the respect of Agriculture Advances.

History of HDFC Bank

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC)
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1416 branches spread over 550 cities across India. All branches are linked on an online realtime
basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank
also has a network of about over 3382 networked ATMs across these cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing finance
company and enjoys an impeccable track record in India as well as in international markets.
HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares ( ADS ) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange.

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

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower.

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

The 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 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, 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.
It realized that only a single minded focus on product quality and service excellence would help
us get there. Today, the Bank is proud to say that it is well on its way towards that goal.

Business Profile
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

Wholesale Banking

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

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the banks Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio
Retail Banking
The objective of retailed banking is to provide its target market customers full range of financial
product service giving the customers a one stop window for all his /her banking requirement .The
product are backed by world class service and delivered to customer through the growing branch
network as well as through alternative delivery channels like ATMs Phone Banking, Net banking
and Mobile banking.

.
Key Executives

Name Designation

A N Roy Director
Aditya Puri CEO
Aditya Puri Managing Director
Bobby Parikh Director
KaizadBharucha Executive Director
Keki Mistry Director
Malay Patel Director
PareshSukthankar Deputy Managing Director
ParthoDatta Director
RenuKarnad Director
Sanjay Dongre Exe. Vice President (Legal) & Co. Secretary
Sanjay Dongre Secretary
SashidharJagdishan Chief Financial Officer
ShyamalaGopinath Chairperson

Additional Director
SrikanthNadhamuni

Additional Director

Umesh Chandra sarangi

MISSION

I. World Class Indian Bank

II. 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
The bank is committed to maintain the highest level of ethical standards professional integrity
,corporate governance and gyratory 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.
5. Tailored solution for customers
6. Providing the solution at right price
7. Have wide and extensive reach
8. Ensure Unmatched customer service.
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 avenue

CORE VALUE

The banks five core value are

Customer focus

To achieve sustainable competitive advantage ,HDFC Bank relies not only on strong customer
service experience .The bank has invested in CRM Technology which provide trigger for selling
various product depending on the customer profile .The Relationship Manager is trusted
advisor to the customer he/she has the best interest of the customer and can advise
competitor product if the banks product does not fit the customer needs.

Operational Excellence
With a dedicated team to monitor quality and service standard many of the HDFC Banks
process segment, including HR Operational are ISO certified. Over 2200 quality improvement
project aimed at improving operational excellence have been successfully implemented
Over550 employees have qualified for Six Sigma Certification and over 80 have earned the
yellow belt.

Product Leadership

HDFC Banks has consistently developed innovative Product and service that attract its targeted
customer. Focusing on high earning growth and low volatility, HDFC Bank continues to develop
and distribute product / service that reduce the cost of funds by leveraging its extensive branch
network .The Bank actively tracks the performance of various products and depending on the
feedback received tweaks product features to better address customer needs.

Sustainability

We recognize Social and Environmental aspect as essential element of a sustainable business

philosophy and are committed to enhance our performance on these fronts. It is our endeavor
to drive a paradigm shift of viewing ESG(Environmental ,Social and Governance ) parameter
from risks to opportunities and to incorporate social and environmental aspects into our
business by embedding sustainability in the stakeholders, Product s and services.

People

People are the Banks greatest strength. HDFC Banks will belive that the ulitimate identity and
success of our bank will in the exceptional quality of our people and their extraordinary efforts.
For this reason ,we are committed to hiring developing motivating and retaining the best
people in the industry.

Business Strategy

Our business strategy emphasizes the following .

. Increase our market share in Indias expanding banking and financial service industry by the
following a disciplined growth strategy focusing on quality and not on quality and delivering
high quality customer service .

. Leverage our technology platform and open scalable system to deliver more product to more
customers and to control operating costs .

. Maintain our current high standards for assets quality through disciplied credit risk
management.
. Focus on high earning growth with low volatility.

. Continue to develop product and services that attract our targeted customer and address
inefficiencies in the Indian Financial sector

INSIDE HDFC BANK

FIVE S PART OF KAIZEN

WORK PLACE TRANSFORMATION

Focus on effective work place organization

Believe in

Small changes leads to large improvement

Every successful organization has their own strategy to win the race in the competitive market
.They use some technique and methodology for smooth running of business HDFC BANK also
acquired the Japanese technique for smooth running of work and effective work place
organization

Five s part of kaizen is the technique which is used in the bank for easy systematic work place
and eliminating unnecessary things from the work place .
 BRANCH BANKING MODEL

Branch banking as a vertical of the bank comprise all branch units of the bank .It is the face of
the bank each branch will be headed by a branch manager branch banking staff need to
required customer from their catchment source their liability account and cross sell various
bank product like assets ,HSL and de-mat accounts Credit cards and third party product like
insurance (General and life insurance ) and Mutual funds etc.. Branches have to focus on
generating leads from walk in customer ,calling the customer who have various relationship
with the bank and solicit business from them their family member and their friend and relative
each branch will have staff responsible for sell and customer engagement and operation and
service of customer .

Brach will also have contract Executive (co- ex) who will wished the customer at their door step
,complete the documentation and ensure set up of the account .Branches not only serve retail
customer but also serve the customer of various other vertical of whole sale banking etc.

Branches are divided into various cluster which in turn form Circles / Zones . Brach Banking has
well laid out organizational set up duly by branch control units.

Product (Liability and HNW) Direct sales ,Direct Banking and Marketing are vertical which
supports the branch banking teams to achieve their set objectives .Liability Product team
includes teams like saving account ,current account ,salary account ,fixed deposits who ensure
that the product are designed to suit the customer requirement ,competition benchmarked and
appropriately priced for the end customer .They also assist the branches in setting their annual
targets , running area specific campaigns ,targeting specific customer segments. In order to
share best practices ,product teams publish success stories to act as a catalyst to source similar
business in branch locations.

Direct sale is the channel who place their resources in branches to comb the catchment area
do door to door activity in identifying customer and acquires their accounts for the branch .
Direct sales team has dedicated sales resource called contract sales Executive (CSE)

Direct Banking Channel. The customer of the bank need not do their banking transactions in
the branch which is open to public during specified timing and on specified dates. The customer
can access their account conduct transactions in their account 24hrs *7 days a week and 365
days in a year .

Customer are provide with ATM/ Debit cards and Forex plus cards ,Prepaid cards which can be
used for transacting in ATM or using at merchant locations or conducting E- Commerce
 transaction in any part of the globe .These cards can be used not only in ATMs of our bank but
can be also used across the globe in any ATM or point of sale terminals of any bank .

Bank also offer its customer Mobile Banking Facility and on the hand held mobile devise the
customer can do seamlessly all the financial and non financial transaction

Bank has sophisticated Phone Banking with IVR technology which customer can dial specified
number and using their customer ID and Customer Telephone ID they can access their account
and during Specified hours they can also interact with Phone Banking Agents.

Marketing teams helps branches and sales teams in the running the sales campaigns and
placing the required marketing material and displays to each branch to enable to build the
brand of the bank .

Branch structure

BRANCH MANAGER

PERSONAL BANKER PB-WELCOME DESK TELLER PBA CUM TA LIABILITY CO-

EX

BRANCH MANAGER

PERSONAL BANKER TELLER PBA CUM TA LIABILITY CO-EX

BM AUTHORIZER

PB -WELCOME DESK TELLER CO-EX

These branches located in these centers have to generate more liability business like say rs.
1.00 to 1.25 crores of current and saving values per month . These location have immense
potential to source business from business segment Salaried class agriculturists, industrialists
etc,by offering various sophisticated product . In addition the branch will also be assisted
,depending on the potentiality ,a team of four to six sales staff from direct sales.

On the same lines a typical semi urban (Location where population is less than one lakh but
above ten thousand )and rural (Location where population is less than ten thousand ) the
branch structure will be as above.

These location have to incrementally add rs. 30 lakhs of casa deposits every month as a bench
mark.

Small location /underbanked /unbanked(3 men /2 men model)

Of late we are opening number of branches in smaller locations where population is less than
10000 or even in unbanked location . This is a typical 3 men branch model where the BM
doubles up as authorizer two men branch model there will be only one BM cum Authorizer and
one teller .The target set are limited

Relationship manager . In addition to above structure ,bank has product for various high net
worth individual .The bank has classic ,preferred and Imperia program ,targeting specific
customer segment basis their relationship value . when a branch races the required customer
into the respective programmes a dedicated relationship manager /imperial relationship
manager will be provided to the branch to exclusively cater to the needs of such customer .till
such time branches races 200 group in preferred or 125 group in imperia programme ,Branch
manager acts as relationship manager.

INTEGRATED FINANCIAL SERVICES

 HDFHC
HDFC BANK
BANK PRODUCT
PRODUCT ANDAND CUSTOMER
CUSTOMER SEGMENTS
SEGMENT

PERSONAL BANKING

LOAN PRODUCT DEPOSIT PRODUCT INVESTMENT AND

.AUTO LOAN .SAVING A/C INSURANCE
.LOAN AGAINST SECURITY .CURRENT A/C . MUTUAL FUNDS
.HOME LOAN .FIXED DEPOSIT .BONDS
.PERSONAL LOAN .DEMAT A/C .KNOWLEDGE CENTER
.TWO WHEELER LOAN .SAFE DEPOSIT LOCKER .GENERAL AND HEALTH
.WORKING CAPITAL FINANCE INSURANCE
.CONSTRUCTION EQUIPMENT . EQUITY AND
FINANCIAL DERIVATIVATIVES
.TRACTOR LOAN .MUDRA GOLD BAR
.HEALTH CARE FINANCE
.EDUCATION LOAN
.GOLD LOAN
.LOAN AGAINST PROPERTY
.CREDIT CARDS
CARDS PAYMENT SERVICES ACCESS TO BANK
.CREDIT CARDS .NET SAFE .NETBANKING
.DEBIT CARDS. .PREPAID REFILL .ONE VIEW
PREPAIDS CARDS .BILL PAY .INSTA ALERT MOBILE
.MERCHANT BANKING
.VISA BILLPAY .ATM
.INSTA PAY .PHONE BANKING
.VISA MONEY TRANSFER .EMAIL STATEMENTS
.ONLINE PAYMENT OF DIRECT .BRANCH NETWORK
TAX