Beruflich Dokumente
Kultur Dokumente
Ms.
Student declaration i
Certificate of guide ii
Acknowledgment iii
Executive Summary iv
Chapter Page No
Chapter 1 …………………………………………………..……… 01 - 15
Chapter II .……………………………………………………....... 16 – 33
Research Methodology
Chapter IV .…………………………………………………..…....… 39 – 51
Chapter V .……………………….…………........………………… 52 – 56
Findings
Chapter VI .……………………….……………………………....... 57 – 59
Conclusion
Bibliography…………………………………………………....…… 60-61
Annexure…………………………………………………….......…… 62-66
STUDENT DECLARATION
“
This is to certify that I have completed my project titled A Study on Digitalization in banks, with
respect to HDFC BANK”under the guidance of “Ms. Sweety Gupta” in the partial fulfillment of the
requirement for the award of the degree of “Bachelor in Business Administration” from “Rukmini
Devi Institute of Advance Studies, New Delhi”.
To the best of my knowledge and belief the data and information presented by her in the project has
not been submitted earlier elsewhere.
RDIAS
ACKNOWLEDGEMENT
I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advance Studies GGSIP
University, New Delhi for imparting us very valuable professional training in BBA.
I pay my gratitude and sincere regards to “Ms. Sweety Gupta”, my project Guide for giving me
cream of her knowledge. I am thankful to her as she has been a constant source of advice,
motivation and inspiration. I am also thankful to her for giving her suggestions and encouragement
throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer lab staff and library staff
for providing me opportunity to utilize their resources for the completion of the project.
I am also thankful to my family for constantly motivating me to complete the project and providing
me an environment which enhanced my knowledge.
PLAN OF STUDY
INTRODUCTION OF BANKING
Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of banking in the modern industrial world is commercial banking
and central banking.Banking means ‘Accepting Deposits for the purpose of lending or
investment of deposits of money from the public repayable or demand or otherwise and
withdraw by cheque, draft or otherwise.’
The concise oxford dictionary has defined a bank as “Establishment of custody of money
which it pays out on customers order.” Infact this is the function which bank performed when
banking originated Banking in the most general sense, is meant the business of receiving,
conserving and utilizing the funds of community or of any special section of it.
A banker of bank is a person, a firm, or a company having a place of business where credits
are opened by deposits or collection of money or currency or where money is advance d or
waned.
BANKING IN INDIA
A HISTERICAL RSPECTIVE
With the passing of the State Bank of India Act in 1955, the undertaking of Imperial
Bank of India was taken over by the newly constituted SBI. The Reserve Bank of
India (RBI) which is the central bank was established in April, 1935 by passing
Reserve Bank of India Act, 1935. The Central Office of RBI is in Mumbai and it
controls all the other banks in the country.Indian management was established in the
country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd.,
Canara Bank Ltd., on 19th July 1969, 14 major banks of the country were nationalized
and on 15th April 1980, 6 more commercial private sector banks were taken over by
the government.
OBJECTIVE OF DIGITALIZATION
A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, the
back end that bankers see through their servers and admin control panels and
the middleware that connects these nodes. Ultimately, a digital bank should facilitate all
functional levels of banking on all service delivery platforms. In other words, it should have
all the same functions as a head office, branch office, online service, bank cards, ATM and
point of sale machines.The reason digital banking is more than just a mobile or online
platform is that it includes middleware solutions. Middleware is software that bridges
operating systems or databases with other applications. Financial industry departments such
as risk management, product development and marketing must also be included in the middle
and back end to truly be considered a complete digital bank. Financial institutions must be at
the forefront of the latest technology to ensure security and compliance with government
regulations.
Bank has all the application and tools to support their various functions of the bank. They
have systems to support their Core Banking, Lending Operations, Portfolio Management,
Wealth Management, Document Management, KYC, AMLs, Risk Profiling, Treasury, etc.
In total, you name a function of the bank, they have a system to support this activity. Yet,
when it comes to providing timely service to customer and at effective rates, it's quality is
much lower compared to mid tier banks in same regions or other parts of the world. For
instance a new High Net Worth Customer on boarding may take minimum of 7 days to a
maximum of 2 to 3 months and sometimes the customer has to followup on the status.
Whereas some of the other mid tier bank in the same region is doing the same in 2 working
days. This is a clear indication that Central Banking Regulatory norms are not the cause for
delayed process, but it is internal systems capability and process maturity that is causing such
bad performance of the banks. While some banks have taken Application Integration as
solution, Digitalization is lot more than just integration of application. Here is an attempt to
formalize the process and the right approach for implementing Digitization.
Banks have designed their IT systems to support their day to day functionality. Before we
move on to Digital world, there is a need to take stock of all the application, the technologies
involved, the architecture of the system, the current usage, the future load on the systems are
to be considered. Many of the organizations are spending lots of money and efforts in
supporting these application to multiple production support houses. A study on
standardization of applications and feasibility to consolidate makes it necessary to get more
efficiency. Also the study of Enterprise architecture will facilitate in defining the optimized
process. Not only taking stock of application portfolio helps in reducing cost, but will also
facilitate in defining the technology agnostic process and IT Roadmap. Kindly note
Digitization is not about building IT Solutions for current pain areas, it is step by step
approach in achieving the Futuristic Position of the Bank and hence analyzing the current
Enterprise Architecture and fine tuning in line with the Vision of the Bank is of utmost
importance.
CHAPTER-2
COMPANY PROFILE
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 a bank in the
private sector, as part of the RBI’s liberalization of the Indian banking industry in 1994. The
bank was incorporated in august 1994 in the name of ‘HDFC Bank Limited’, with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the
vision of becoming a World-class Indian Bank. HDFC bank’s business philosophy is based
on our four core values – Customer Focus, Operational Excellence, Product Leadership and
people. They believe that the ultimate identity and success of their bank will reside in the
exceptional quality of people and their extraordinary efforts. They are committed to hiring,
developing, motivating and retaining the best people in the industry.
HDFC Bank’s mission is to be a World-class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank’s risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank’s business philosophy is based on four core values ‘Operational
excellence, Customer Focus, Product Leadership and People.’
The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regularity compliance. HDFC bank’s business philosophy is based on four core
values such as:-
1. Operational excellence
2. Customer focus
3. Product leadership
4. People
The objective of 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 program
have been designed keeping in mind needs of customer who seeks distinct financial solutions,
information and advice on various investment avenues.
BUSINESS STRATEGY
DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable
network of over 1229 branches spread over 444 cities across India. All branches are linked
on an online real-time basis. Customers in over 120 locations are also serviced through
Telephone Banking. The Bank's e x p a n s i o n p l a n s t a k e i n t o a c c o u n t t h e n e e d t o
h a v e a p r e s e n c e i n a l l m a j o r i n d u s t r i a l a n d commercial centers where its
corporate customers are located as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing/settlement bank to various leading
stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and
active member base.
The Bank also has a network of about over 2526
across these cities. Moreover, HDFC Bank's
A T M n e t w o r k c a n b e a c c e s s e d b y a l l domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable
track record in I n d i a a s w e l l a s i n i n t e r n a t i o n a l m a r k e t s . S i n c e i t s
i n c e p t i o n i n 1 9 7 7 , t h e C o r p o r a t i o n h a s 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 c o n s u m e r franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor
was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya
Puri, has b e e n a p r o f e s s i o n a l b a n k e r f o r o v e r 2 5 y e a r s a n d b e f o r e
joining HDFC Bank in 1994 was heading Citibank's operations
i n M a l a y s i a . T h e B a n k ' s B o a r d o f D i r e c t o r s i s c o m p o s e d o f eminent
individuals with a wealth of experience in public polic y, administration,
Senior executives representing HDFC are also on the Board. Senior
banking professionals with substantial experience in India and abroad head
various businesses a n d f u n c t i o n s a n d r e p o r t t o t h e M a n a g i n g D i r e c t o r .
G i v e n t h e p r o f e s s i o n a l e x p e r t i s e o f t h e management team and the overall
focus on recruiting and retaining the best talent in the industry, the bank believes that its
people are a significant competitive strength.
TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank's branches have on line connectivity,
the b a n k t o o f f e r s p e e d y f u n d s t r a n s f e r f a c i l i t i e s t o i t s c u s t o m e r s .
Multibranch access is also provided to retail customers through the
b r a n c h n e t w o r k a n d A u t o m a t e d T e l l e r M a c h i n e s (ATMs). The Bank has
made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. The Bank's business is
supported by scalable and robust systems which ensure that our clients always
get the finest services we offer. The Bank has prioritized its engagement in technology and
the internet as one of its key goals and has already made significant progress in web-enabling
its core businesses. In each of its businesses, the Bank has succeeded in
leveraging its market position, expertise and technology to create a competitive
advantage and build market share.
QUALITY POLICY
SECURITY: The bank long term financial security to their policy. The bank does this by
offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it
will aim to manage their investments very carefully and live up to this trust.
INNOGVATION: Recognizing the different needs of our customers, the bank offers a range
of innovative products to meet these needs.
INTEGRITY
CUSTOMER CENTRIC
TEAM WORK
HDFC Bank offers a wide range of commercial and traditional banking services and treasury
products to a wholesale and retail customers. The bank has three key business segments.
Wholesale Banking Services. The bank’s target market ranges from large, blue-chip
manufacturing companies in the Indian corporate to small and mid-sized corporates and agro-
based business. For these customers, the bank provide a wide range of commercial and
transactional business services, including working capital finance, trade services,
transactional services, cash management, etc. the bank is also a leading provider of structured
solution, which combine each 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 bank.
The objective of the retail bank is to provide its target market customers a full range of
financial products and banking services, giving the customers a one-stop window for all
his/her banking requirements. The products are backed up by world class service and
delivered to customers through the growing branch network, as well as through alternative
delivery channels like ATM’s, 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 was the
first bank in India to launch an International Debit Card in association with VISA (VISA
Electron) and issues the MasterCard Maestro debit card as well. The bank launched its credit
card business in late 2001. By March 2010, the bank had a total card base (debit and credit
cards) of over 14 million. The bank is also one of the leading players in ‘merchant acquiring’
business with over 90,000 Point-to-sale (POS) terminals for debit/credit cards acceptance at
merchant establishments. The bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits, Loans<
Bill payments, etc.
Within this business, the bank has three main products areas- Foreign Exchange and
Derivatives, Local Currency Money Market and Debit Securities, and Equities. With the
liberalization of the financial markets in Indi, 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.
CHAPTER-3
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
The term research Methodology here comprises of all research activities carried on in
connection with the "Analysis of various schemes under Saving, FD and Demat account
provided by HDFC Bank". The basic purpose of research methodology is to describe the
research procedure. It helps the researches to adopt the right way to move on for carrying the
study.
RESEARCH DESIGN
A research design is like arrangement of conditions for collections & analysis of data in a
manual that aims to combine relevance to the research purpose with economy in procedures.
A research design is purely & simply the framework of plans for a study that guides the
collections & analysis of data the research design is the conceptual structure within which the
research is conducted. It constitutes the blue print for the collection, measurement & analysis
of the data.
To make the research complete it is very necessary to have useful and authentic data there are
two types of data collection sources.
Primary data are those which are collected afresh & for the first time, & this happens to
be original in character. Simple well drafted questionnaire was circulated among all
respondents. Full freedom was provided to an individual to answer the questions.
Personal & Telephonic Interviews, observation, personal opinion & viewpoints of the
respondents about the various schemes helped in completion of the project.
As shown by the table above, people who come to know about the HDFC Bank
through friends are 35%, through Marketing are 40%, through Advertisement are 10%,
through Exhibitions are 10% and through Others are 5%.
SOURCES OF AWARENESS
45 40
40 35
35
30
25
PERCENTAGE
20
15 10 10
10 5
5
0
Friends Marketing ADS Exhibitions Other
SOURCES
Q. 2. Whom did you contact first in HDFC Bank.
To contact First in HDFC Bank.
Marketing Executives 40
HDFC Branch 55
Others 5
60% 55%
50%
40%
40%
PERCENTAGE
30%
20%
10% 5%
0%
HDFC Branch Marketing Exec. Others
HELPING GROUP
Q.3. Which factor plays an important role while opening an account?
Factors that play an important role.
After conducting the survey advertisement plays 20%, Special Offer plays 30%,
Operational Staff plays 15%, Convincing Power of Executives plays 20% and Credibility of
Bank plays 15% role while opening an account in HDFC Bank.
Thus study shows that special offer plays the most important role while opening an
account according to the respondents.
% of Respondents
Credi. Of ADV ADV
Bank 20%
15%
Convicing
Power of
Sp. Offer
executives
20%
Sp. Offer Operational
Operational 30% Staff
Staff
15%
Q.4. Which product do you use the most?
Product Used the most.
This table shows that the people who are using Saving A/c are 44%, Current A/c are 22%,
Fixed Deposit are 28% and Others are 6%
Thus the study shows that Saving A/c is the most preferred product of HDFC Bank by
respondents.
This can be shown by this Graph.
% of Respondents
Other
FD 6% Saving
28% 44% Saving
Current
22% Current
FD
Other
Q.5. Which FD Scheme is most popular?
Most popular FD scheme
This Table shows that people are using reinvestment are 30%, Super Saver are 45% and
Sweep in A/c are 25%.
Thus the study shows that Super Saver is the most popular FD Scheme by the
respondents.
Most Popular FD Scheme
% of Respondents
50 45
40
30
PERCENTAGE
30 25
20
10
0
Reinsvestment Super Saver Sweepin
FD SCHEMES
Q.6. Are you able to maintain AQB of Rs. 5000 in saving account?
Percentage of the respondents maintaining AQB.
% OF RESPONDENTS
70 65
60
50
PERCENTAGE
40 35
30
20
10
0
Yes No
Q.7. Which of the following facilities Direct Banking Channels (DBC) you
avail the most?
PERCENTAGE OF RESPONDENTS
45 45 35
40
35
30
20
PERCENTAGE
25
20
10
15
10
5
0
ATM PHONE NET MOBILE
BANKINGBANKING
DBC FACILITIES
Thus study shows that ATM is the most preferred Direct Banking Channel by
the respondents.
Q.8. What are the causes for not using any of the Direct Banking
Channels?
Causes responsible for not using DBC
% of Respondents
Feel more
secure banking
personal
Feel more secure
21%
banking personal
Lack of Unsatisfied
Knowledge Unsatisfied
42% 5% Unawareness
Lack of Knowledge
Unawareness
32%
This Graph shows that the main cause for not using DBC by respondents is lack
of knowledge.
Q.9. How will you rate performance of direct banking channels you are using?
Rate performance of the DBC.
% of Respondents
Very Poor
Poor
7%3% Best
Fair Best
Good
20% 40%
Fair
Poor
Good
Very Poor
30%
The Graph shows that 40% people says DBC Best , 30% says DBC is good, 20% says
DBC Fair, 7% says DBC is poor and 3% says DBC is very poor in its performance.
Q.10. How would you rate performance of HDFC Bank?
Rate performance of HDFC Bank.
This Graph shows that 40% people says HDFC is Best in its performance, 35% people
says HDFC is Good, 20% says it is Fair, 3% says it is poor and 2% people says it is Very
Poor in its performance.
Q.11. Did you face any problems while maintaining your account at bank?
Percentage of the respondents facing the problems while maintaining were
account.
Percentage of Respondents
Yes No
45 55
% of Respondents
60 55
50 45
40
PERCENTAGE
30
20
10
0
Yes No
This Graph shows that 45% people says they are facing the problem while maintaining the
Account and 55% people says they are not facing any of the problem while maintaining the
Account in HDFC Bank.
Q.12. Why do you prefer HDFC Bank?
Preferred HDFC Bank.
Facilities Percentage
Better 20
Plan 30
Selusen 30
Agents 15
Others 5
%30of Respondents
30
30
PERCENTAGE
20
25
15
20
15
10 5
5
0
BetterPlanSelusen
Agents
Others
FACILITIES
This Graph shows that 20% respondents preferred HDFC Bank because of Better Facilities,
30% because of Better plan, 30% because of Selusen, 15% because of agents and 5% because
of other facilities.
Q.13. Do you think private sector banks are better than public sector
banks?
% of Respondents
15
Yes
No
85
Q.14. What extra service would you like to avail form the bank?
% of Respondents
Online Trading of
10 20 Shares
Phone Banking
Bills Pay
40
30
Other
CHAPTER-6
SUGGESTION AND
CONCLUSION
SUGGESTIONS
Books:
Research Methodology -By C.R. Kothari
Magazine:
Business Today
Business World
Brochures
Websites
www.hdfcbank.com
www.indiainfoline.com
ANNEXURE
QUESTIONNAIRE
NAME :
AGE : SEX :
Yes No
Others
Yes No
9. Which of the following facilities Direct Banking Channels (DBC) you avail the most?
11. How will you rate performance of direct banking channels you are using?
12. How would you rate clarify of products by executive in the bank?
14. Did you face any problems while maintaining your account at bank?
Yes
No
16. Do you think private sector banks are better than public sector banks?
Yes No
17. What extra service would you like to avail from the bank?
_____________________________________________________________________
__________________________________________.
18. Suggestion: -
_____________________________________________________________________
__________________________________________.
PLACE:_________________
DATE:__________________