TO STUDY THE PRODUCTS OF TOP PRIVATE BANKS IN

INDIA
CAPSTONE PROJECT REPORT

Course Name- PGDM

Specialization- Marketing TANVI KHANDELWAL

2017-2019 Roll No. 53

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI 400706

1
“TO STUDY THE PRODUCTS OF TOP PRIVATE BANK IN INDIA”

CAPSTONE PROJECT REPORT

SUBMITTED

AS A PARTIAL FULFILLMENT OF THE CURRICULUM

FOR THE DIPLOMA

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

FOR THE DEGREE

POST GRADUCTION DIPLOMA IN MANAGEMENT (PGDM)

SIES COLLEGE OF MANAGEMENT STUDIES

NERUL, NAVI MUMBAI

BY

TANVI KHANDELWAL

ROLL NO. 53

SPECIALIZATION- MARKETING

2017-19

2
3
 DECLARATION

I, Ms. Tanvi Khandelwal , studying in the second year of PGDM program at SIES College of
Management Studies, Nerul, Navi Mumbai, hereby declare that I have completed the Capstone
Project titled “TO STUDY THE PRODUCTS OF TOP PRIVATE BANKS IN INDIA ” as a
part of the curriculum requirement for course name.

I also declare that the work undertaken by me is original and has not been copied from any
source. I further declare that the information presented in this project report is true and has not
been submitted to SIESCOMS or any other Institute for any other examination.

Signature of the Student Date:

Name of the Student: TANVI KHANDELWAL

Roll No.: 53

4
 CERTIFICATE BY FACULTY GUIDE

This is to certify that Ms. TANVI KHANDELWAL, studying in the second year of POST
GRADUTION DIPLOMA IN MANAGEMENT program at SIES College of Management
Studies, Nerul, Navi Mumbai, has completed the Capstone Project titled “TO STUDY THE
PRODUCTS OF TOP PRIVATE BANKS IN INDIA” as a part of the curriculum requirement
for POST GRADUTION DIPLOMA IN MANAGEMENT.

Signature of the Faculty Guide

Name: _____________

Date:

5
 ACKNOWLEDGMENTS

It is my pleasure to be indebted to various people, who directly or indirectly contribute in the

development of this work and who influenced my thinking, behavior, and acts during the course
of study.

I express my gratitude to Dr. Shalini Gulecha for suggesting me this project in good schedule.

Last but not the least I would like to thank SIES COLLEGE OF MANAGEMENT STUDIES
for giving me an opportunity to enhance my knowledge by providing me this platform.

6
 EXECUTIVE SUMMARY

The main objective of this project is to study the product offerings by different and the way they
are marketed to the customers. The "private-sector banks" are banks where greater parts of stake
or equity are held by the private shareholders and not by government. Banking in India has been
dominated by public sector banks since the 1969 when all major banks were nationalised by the
Indian government. However since liberalisation in government banking policy in 1990s,
old and new private sector banks have re-emerged. They have grown faster and bigger over the
two decades since liberalisation using the latest technology, providing contemporary innovations
and monetary tools and techniques. The private sector banks are split into two groups by
financial regulators in India, old and new. The old private sector banks existed prior to the
nationalisation in 1969and kept their independence because they were either too small or
specialist to be included in nationalisation. The new private sector banks are those that have
gained their banking license since the liberalisation in the 1990s.

With keeping the objective in mind, I completed my capstone project. I have enjoyed my report
preparation and have learnt lots of new things. I have tried my level best to make this report a
reader friendly and also did my level best to fulfill the objective of the study.

7
 TABLE OF CONTENT
SR. PARTICULARS PAGE
NO. NO.
1 Introduction 9
1.1 Company overview
1.2 Background of project
1.3 Objective of project
1.4 Scope of project
1.5 Limitations

2 Products offered by banks 13

3 Comparison of Products offered by HDFC, ICICI and Axis 25

bank -
3.1 Accounts and deposits

3.2 Cards

3.3 Loans

3.4 Insurance

3.5 Investments

4 Conclusion 38

5 Findings and suggestions 39

6 References 40

8
 INTRODUCTION

COMPANIES’S OVERVIEW

HDFC 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 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. As of December 31, 2018, the Bank had a nationwide distribution network 4,963
branches and 13,160 ATM's in 2,727 cities/towns.

The mission of HDFC bank is to become “ A world class Indian bank”, benchmarking
themselves against worldwide benchmarks and best practices in term of offerings, technology,
service level, risk management and audit. 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 has adopted industry leading best practices in establishing a
set of operating principles which govern how risks of a significant business disruption are
mitigated to protect the Banks customers, employees and stakeholders. 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 five core values:
Operational Excellence, Customer Focus, Product Leadership, People and Sustainability.

ICICI BANK –

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in

9
an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and long-term
project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE. CICI Bank is India's largest private sector bank with
total consolidated assets of Rs. 11,242.81 billion (US$ 172.5 billion) at March 31, 2018 and
profit after tax of Rs. 67.77 billion (US$ 1.0 billion) for the year ended March 31, 2018. ICICI
Bank currently has a network of 4,867 Branches and 14,367 ATMs across India. The vision of
ICICI banks is To be the leading provider of financial services in India and a major global bank
and the mission is to leverage our people, technology, speed and financial capital to be the
banker of first choice for our customers by delivering high quality, world-class products and
services.

AXIS BANK –

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of
financial services to customer segments covering Large and Mid-Corporates, MSME,
Agriculture and Retail Businesses. Axis Bank is one of the first new generation private sector
banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified
Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance
Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance
Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd. The share holding of Unit Trust of India was
subsequently transferred to SUUTI, an entity established in 2003.

10
The Bank has a large footprint of 3,964 domestic branches (including extension counters) with
12,705 ATMs & 3,548 cash recyclers spread across the country as on 31st December, 2018. The
overseas operations of the Bank are spread over ten international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at
Dhaka, Dubai, Abu Dhabi; a step down subsidiary in the US- Axis Capital USA, LLC and an
overseas subsidiary in London, UK. The international offices focus on corporate lending, trade
finance, syndication, investment banking and liability businesses. With a balance sheet size of
Rs. 6,91,330 crores as on 31st March 2018. The vision of the bank is to be the preferred financial
solutions provider excelling in customer delivery through insight, empowered employees and
smart use of technology. The core values of bank are Customer Centricity ,Ethics, Transparency,
Teamwork and Ownership.

BACKGROUND OF PROJECT

The project titled “ A study on products of top private bank in India”. The top three private
banks in India currently are – HDFC bank , ICICI bank and AXIS bank. In recent years, private
banks in India are propelling the nation’s banking sector with a slew of new products such as
digital transactions, round-the-clock service, net-banking facilities, home and vehicle finance and
several other products. Indeed, private banks have become formidable players in this key Indian
sector. India’s private banks are growing very rapidly. Their popularity stems from agility and
swiftness in adopting the latest technologies that provide faster service to customers. These
banks provide very competitive environment to each other. The present private-sector banks
equipped with all kinds of contemporary innovations, monetary tools and techniques to handle
the complexities The products offered by these banks are at par to each other with slight
differences among them. This study provides useful inputs to find out the current position of
Bank in comparison to its competitors.

11
 SCOPE OF PROJECT

The project scope involves the study of different products offered by the top private banks. The
comparison of products and their features. By analyzing, we can understand which bank is
providing the maximum benefit to their customers. Also with the help of views and responses by
the people through survey and interaction we can understand their views regarding the product
offerings.

OBJECTIVE OF STUDY

With the help of objectives we can get a clear picture about the work that is needed to be
achieved. The objectives of the project are -
 To understand the products offered by the top private banks.
 To understand and identify the different competitive strategies adopted by the banks.
 To compare the financial data of the banks.
 Study and analyze the market share of financial products of different banks.

LIMITATION OF PROJECT

 The data used for the project is confined to a primary research.

 The research was carried out in a short period of time so. Therefore the parameters were
selected accordingly so as to finish the work in given time frame.

12
 PRODUCTS OFFERED BY BANKS

1. Bank accounts and deposits –

 Current account: Big businessmen, companies and institutions such as schools, colleges,
and hospitals have to make payment through their bank accounts. Since there are
restrictions on the number of withdrawals from savings bank account, that type of
account is not suitable for them. They need to have an account from which withdrawal
can be made any number of times. Banks open a current account for them. Like savings
bank account this account also requires a certain minimum amount of deposit while
opening the account. On this deposit, the bank does not pay any interest on the balances.
Rather the account holder pays a certain amount each year as an operational charge.
These accounts also have what we call the overdraft facility. For the convenience of the
accountholders banks also allow withdrawal of amounts in excess of the balance of the
deposit. This facility is known as an overdraft facility. It is allowed to some specific
customers and up to a certain limit subject to previous agreement with the bank
concerned. Some of the common types current accounts offered by banks:
 Standard Current Accounts
 Packaged current accounts
 Single column cash book
 Premium current accounts
 Foreign currency accounts

 Saving account: this type of account is suitable for people who have a definite income and
are looking to save money. This type of account can be opened with a minimum initial
deposit that varies from bank to bank. Money can be deposited any time in this
account.Withdrawals can be made either by signing a withdrawal form or by issuing a
cheque or by using ATM card. Normally banks put some restriction on the number of
withdrawal from this account. Interest is allowed on the balance of deposit in the account.
The rate of interest on savings bank account varies from bank to bank and also changes from

13
 time to time. A minimum balance has to be maintained in the account as prescribed by the
bank.Banks across the country are offering specialised savings accounts to cater to the
individual needs of their customers. The different types of savings accounts are listed
below:
 Regular savings account
 Salary savings account
 Senior citizen savings account
 Children or minor savings account
 Women’s savings account

 Salary Account - A Salary Account is an account to which your salary gets credited.
Usually, banks open these accounts on request of corporations and major companies.
Each employee of the company gets their own Salary Account which they are required to
operate on their own. When the time comes for the company to pay its employees, the
bank takes the money from the company’s account and then distributes it to the
employers accordingly. Salary Accounts usually don’t come with a minimum balance
requirement, while banks require that you maintain a certain amount of minimum balance
in your Savings Account. If the salary has not been credited to your Salary Account for a
certain period of time then the bank will convert your Salary Account into a regular
Savings Account with a minimum balance requirement.

 Fixed Deposit- Some bank customers may like to put away money for a longer time.
Such deposits offer a higher interest rate. If money is deposited in savings bank account,
banks allow a lower rate of interest. Therefore, money is deposited in a fixed deposit
account to earn a interest at a higher rate.This type of deposit account allows the deposit
to be made of an amount for a specified period. This period of deposit may range from 15
days to three years or more during which no withdrawal is allowed. However, on request,
the depositor can encash the amount before its maturity. In that case, banks give lower
interest than what was agreed upon. The interest on fixed deposit account can be
withdrawn at certain intervals of time. At the end of the period, the deposit may be

14
 withdrawn or renewed for a further period. Banks also grant a loan on the security of
fixed deposit receipt.

 Recurring Deposit -While opening the account a person has to agree to deposit a fixed
amount once in a month for a certain period. The total deposit along with the interest
therein is payable on maturity. However, the depositor can also be allowed to close the
account before its maturity and get back the money along with the interest till that
period.The account can be opened by a person individually, or jointly with another, or by
the guardian in the name of a minor. The rate of interest allowed on the deposits is higher
than that on a savings bank deposit but lower than the rate allowed on a fixed deposit for
the same period.

 Term deposit: In this type of account person deposit it money for certain period of time say
for a year and he generally cannot withdraw it before completion of that period.If the the
current account or saving account for a bank is less them it means its cost of deposit is
more whereas those banks who maintain a balance in all the three accounts it means
that they balance to maintain a good profitability and minimum cost of borrowing.

 Safe Deposit Vault - Safe Deposit Lockers are the facilities provided by banks to their
customers to keep their valuables. This facility is not offered through all bank branches
and wherever the facility is offered, allotment of safe deposit vault will be subject to
availability and compliance with other terms and conditions related to this service. In the
absence of nomination or mandate for disposal of contents of lockers, with a view to
avoid hardship to common persons, the bank will release the contents of locker to the
legal heirs against indemnity on the lines as applicable to deposit accounts.

2. Loans – A loan is a lump sum of money that you borrow with the expectation of paying it
back either all at once or over time, usually with interest. The different types of loans -
available are –

15
 Personal Loans - Most banks offer personal loans to their customers and the money can
be used for any expense like paying a bill or purchasing a new television. Generally,
these loans are unsecured loans. The lender or the bank needs certain documents like
proof of assets, proof on income, etc. before approving the personal loan amount. The
borrower must have enough assets or income to repay the loan. The borrower gets to
know about the denial or approval of the loan within a couple of days.The rate of interest
associated with these loans can be on the higher side. The tenure of these loans is not that
long. So, if you borrow a big amount, it can be difficult for you to repay without planning
your finances properly.Personal loans can prove to be of great help when you wish to
take a small loan and repay it as soon as possible.

 Credit Card Loans- When you are using a credit card, you must understand that you will
have to repay for all the purchases you make at the end of the billing cycle. Credit cards
are accepted almost everywhere, even when you are travelling abroad. As it is one of the
most convenient ways to pay for the things you buy, it has become a popular loan type.In
order to apply and avail a credit card, all you need to do is fill out a simple application
form provided by the card issuer. You can also choose to apply for a credit card online.
These plastic cards come with great rewards and benefits. It’s the loan where you need to
repay on time but you are also handsomely rewarded for using it. Obviously, there are
pitfalls associated with this type of loan. There is a high amount of interest on the
amounts you borrow on your credit card. If you do not pay your credit card bills on time,
the interests will keep piling and might be difficult for you to manage your finances with
the rising outstanding balance. But if you use a credit card wisely and clear all your debts
on time, it can definitely prove to your best friend in your pocket.

 Home Loans - When you wish to purchase a house, a home loan can help you to a great
extent. It provides you the financial support and helps you buy the house for yourself and
your loved ones. These loan generally come with longer tenures (20 years to 30 years).
The rate offered by some of the top banks in India with their home loans start at 8.30%.
Your credit score is checked before the loan request is approved by the lender. If you
have a good credit score, there is a fair chance that you will be able to enjoy lower rates

16
 of interest with your home loan.Home loans are primarily taken for buying new homes.
However, these loan can also be used for home renovations, home extensions, purchasing
land property, under-construction houses, etc.Some of the types of home loan that are
available in the market include home loans for repair and extension, top-up loans, land
purchase loan, loan against property, etc.

 Car Loans - A car will remain as your asset and it is going to be one of the biggest
investments that you make. A car loan helps you to pave the path between your dream of
owning a car and actually buying your car. Since credit reports are crucial for judging
your eligibility towards any loan, it is good to have a high credit score when you apply
for a car loan. The loan application will get approved easily and you might get a lower
rate of interest associated with the loan.Car loans are secured loans. If you fail to pay
your installments, the lender will take back your car and recover the outstanding debt.

 Two-Wheeler Loans - A two-wheeler is pretty essential in today’s world. May it be going

for a long ride or a busy road in a city – bikes and scooters help you to commute
conveniently. A two-wheeler loan is easy to apply for. This amount you borrow under
this loan type helps you to purchase a two-wheeler. But if you do not pay the instalments
on time and clear your debt, the insurer will take your two-wheeler to recover the loan
amount.

 Education Loans - If you wish to get higher education in a reputed university in a

different country, education loans can help you a lot. These loans are opted by students
who wish to study further but need financial support for pursuing the courses. An
education loan covers expenses like college/university fees, library charges, travel costs
related to their course, etc. In order to be eligible for an education loan, you must submit
all the required documents including invitation letter from the university, educational
qualification certificates, etc.

 Loan Against the Insurance Schemes - If your insurance scheme is eligible for a loan, you
can avail the loan amount from your insurer. You may also use the investment for

17
 insurance as collateral. Generally, loans cannot be availed right from the commencement
of the insurance policy. After 3 years into the scheme, you can apply for a loan.

 Loan Against Fixed Deposits:This is a type of loan where your fixed deposit is the
collateral. For example, if you have a fixed deposit of Rs.10 lakh in the bank, you can
avail a loan of up to Rs.8 lakh. However, the rate of interest associated with this kind of a
loan is usually higher than the fixed deposit rate.

 Loan Against Mutual Funds and Shares - Certain lenders provide loan against your
mutual fund value and share value. However, you will not be able to borrow huge
amounts under this type of loans.

3. CARDS - A bank card is any card issued against a depository account, such as an ATM
card or a debit card. Sometimes the phrase is also used to refer to Visa and MasterCard since
these are also issued by banks, but they are credit cards and not linked directly to a
depository account.Bank cards may be limited in their use; some can only be used at ATM
machines or for certain purchases.

 Credit Card - Credit Card is “post paid” or “pay later” card that draws from a credit line-
money made available by the card issuer (bank) and gives one a grace period to pay. If
the amount is not paid full by the end of the period, one is charged interest. A credit card
is nothing but a very small card containing a means of identification, such as a signature
and a small photo. It authorizes the holder to change goods or services to his account, on
which he is billed. The bank receives the bills from the merchants and pays on behalf of
the card holder. These bills are assembled in the bank and the amount is paid to the bank
by the card holder totally or by installments. The bank charges the customer a small
amount for these services. The card holder need not have to carry money/cash with him
when he travels or goes for purchasing. Credit cards have found wide spread acceptance
in the ‘metros’ and big cities. Credit cards are joining popularity for online payments.
The following is a brief description of the most common types of credit cards available,
which include:

18
 Balance transfer
 Low interest
 Cash back
 Reward points
 Hotel and travel points
 Retail rewards
 Gas points
 Airline miles
 Secured
 Prepaid
 Business
 Student

 Debit card – Debit card is a plastic card that provides an alternative payment method to
cash when making purchases. Functionally, it can be called an electronic check, as the
funds are withdrawn directly from the bank account or from the remaning
balance on the card. In some cases, the debit cards are designed exclusively for use on the
Internet, and so there is no physical card. In many countries the use of debit cards has
become so widespread that their volume of use has overtaken or entirely replaced the
check and, in some instances cash transactions. Like credit cards, debit cards are used
widely for telephone and Internet purchases and unlike the credit cards, the funds are
transferred immediately from the bearer’s bank account instead of having the bearer pay
back the money at a later. ATM card for withdrawing cash and as a check guarantee card.
Merchants may also offer cash back facilities to customers, where a customer can
withdraw cash along with their purchase. There are generally 6 types of debit cards that
are offered by the various banks-
 Visa debit card
 Visa electron debit card
 Mastercard debit card
 Contactless debit card

19
  Rupay debit card
 Maestro debit card

4. INSURANCE - Insurance refers to a mutual agreement or a policy that an individual

purchases from an insurance company by paying premiums on yearly, monthly or quarterly
basis to the insurance company. In return, the insurance company protects the buyer or the
policyholder from any kind of loss or risk that may occur in the future.Apart from
individuals, both public and private sector organization can purchase insurance to protect
their employees. It's basically a kind risk management scheme by using which the insured
person can get protection against possible eventualities such as loss, sickness, death, loss
done to his/her belongings etc. Insurance is the only financial instrument that helps you
manage your financial risks smoothly and reduces your financial worries.There are different
types of issuance available in India. Listed below are the major types:

 Life Insurance - It is kind of shared bond between an insured individual and an insurance
company wherein you pay a certain amount of money as premiums on monthly, yearly or
quarterly basis to an insurance company. The insurance company, in return, protects you
against future eventualities such as loss or damage done to you, your family members and
property. There are different life insurance plans available in India offered by both
private and public life insurance companies to help you meet your different financial
needs at different junctures of life. The sum assured received from life insurance plans
can be used for fulfilling a variety of tasks such security after retirement, protection
against health care cost. Life insurance policies not offer risk coverage, you can also
borrow money against certain policies. These policies come with a lot of benefits such as
death benefits, maturity benefits and tax benefits. Life insurance plans in India normally
fall under two major categories namely “Whole Life Insurance Plan” and “Term Life
Insurance Plan”.

 Health Insurance - Another type of insurance available in India is Health insurance. It

gives you protection you against the medical costs incurred in hospitalization due to
illness or accident, nursing care, surgeries, consultation, diagnostic tests, ambulance
service, hospital accommodation, medical bills etc. The only thing you have to do to avail
these benefits is to purchase a health insurance policy by paying a certain amount of

20
 premium to your insurance provider periodically. The insurance provider will take the
complete responsibility of protecting you against the cost involved in medical treatment.
Certain health insurance policies also pay for regular medical checkups.

 Car Insurance : The idea of purchasing a new car in India isn’t complete without the
associative purchase of a good car insurance policy. As the name so aptly implies, car
insurance is designed to save the owner of a vehicle from the often exuberant financial
liability that is set to occur when his/her cherished vehicle meets with an unfortunate
accident or is deemed lost. Accidents come in different forms- both natural and man-
made, with a robust car insurance policy providing comprehensive protection against
both these unforeseen instances.

 Two Wheeler Insurance : In India, the number of two wheelers massively outnumber four
wheelers. Thus, for most Indians, a robust two wheeler insurance policy that protects
their bikes or scooters against natural or man-made accidents is an essential investment.
Almost all insurers in India offer two wheeler insurance as a priority offering in their
arsenal of products with the additional option of specific add-on covers that take into
account conditions that aren’t accounted for by the main policy. From theft to major
damage in an unfortunate accident, from loss of keys to mechanical on-road issues,
everything is taken care of.

 Travel Insurance : Traveling is one of humanity’s greatest passions, and a robust travel
insurance policy ensures that travel adventures that have gone out of hand do not claw
you back financially. Offering complete protection against such instances as loss of
baggage, passport and trip cancellation to major medical issues and unforeseen risks
while traveling abroad, a comprehensive travel insurance policy is an eager explorer’s
best friend. And, purchasing travel insurance online is a breeze and a contributing factor
to its steady popularity.

 Home Insurance : Like they say, ‘home is where the heart is’, which equates to the fact
that ensuring the safety of your cherished home ascertains the safety and happiness of
you and your loved ones. Home Insurance policies are thus, an important investment.
Providing you round the clock protection against financial liabilities arising from damage
incurred by your house and/or its contents, a good home insurance policy is the cautious
21
 home owner’s best friend. Almost all Indian insurers’ offer this product, and the same
canbe easily purchased online.

5. INVESTMENT - Investment in terms of financial context, means any money that is spent
today in the hope of financial benefits that may be reaped in a future time frame. Any
investment is the act of buying or creating assets with an expectation that the same would
yield interest earnings or dividend or capital appreciation or any other return that is profitable
as compared to the money put in initially. Almost all investments are differentiated from
other kinds of transactions based on the aim of the money spent. Money spent on making
investments is primarily with the aim of obtaining some sort of return in a specific period of
time. The investment products available are –

 Bonds - A Bond can be understood as an IOU which is issued by an issuer (borrower)

and to a lender. Generally, bonds are instruments used by public and private sector
enterprises to raise huge sums of money which any bank is incapable of lending. These
bonds are then issued in the public market by the borrowing entity and are bought by
lenders for specific amounts of money. Thousands of lenders then come together to lend
the required amount and the borrowing organization is able to raise capital for its
operational or growth purposes.

 Stocks - Stocks or equity are shares that are issued by companies and are bought by the
general public. This offers an avenue to companies to raise funds. Stocks entitle a
customer ownership of a company. Shares, stocks and equity all imply the same thing.
Shares are one of the most popular investment avenues in the world. This is because the
returns offered by stocks is generally higher than any other financial instrument.
However, to balance out the high return associated with stocks, the risk associated with
these products is also quite high.Any business may issues different types of shares based
on the financial urgency and need. In exchange for the money, shareholders are issued
Stock certificates.Stocks are mostly divided into two basic types, common stocks and
preferred stocks.

22
 Small saving schemes - Small savings is another popular savings tool in the Indian
financial market. The name itself suggests that these tools are meant for saving money in
small amounts. The idea behind this financial tool is to enable the habit of saving in
people from almost all economic sections. Some of the most common small savings tools
are Sukanya Samriddhi Scheme, EPF (Employees Provident Fund), NPS (National
Pension Scheme, Kisan Vikas Patra, Personal Provident Fund (PPF) etc. Almost all small
savings schemes are initiated and facilitated by the government so as to enhance the
spread and penetration of savings schemes in the country. Let us look into some of the
most prominent schemes out of these.

 Employees Provident Fund - Employees Provident Fund is another small savings scheme
that is primarily offered by your employer. This includes salaried individuals of both
private and public organizations. Any company with a workforce of more than 20
employees is mandated to register for the EPF scheme. Around 12% each month is
deducted from the salary and contributed towards the EPF account of an employee. This
EPF account is maintained by the Employees Provident Fund Organization, commonly
known as the EPFO. The amount deposited towards EPF is eligible for tax
exemption under section 80C of the Income Tax Act.
 Sukanya Samriddhi Scheme - Sukanya Samriddhi Yojana is a special scheme which has
been launched by the central government to facilitate the financial wellbeing of girl child
in the country. This scheme can be availed by parents or legal guardian of a girl child and
an amount as low as Rs.1000 per annum can be deposited under the scheme. The account
matures only after the girl child reaches the age of 21. Premature withdrawal is allowed
only after the girl reaches the age of 18 years and has financial need pertaining to
wedding or education.
 National Pension Scheme - National pension Scheme is one of the most popular schemes
for ensuring a regular pension amount to individuals working in both the private and the
public sector. NPS is offered to individuals either as part of their corporate perks or is
availed by individuals on their own. The amount set aside towards NPS is eligible for tax
rebate under section 80C of the Income Tax Act. The scheme offers withdrawal of
deposited amount only once the account holder reaches the age of 60 years. The corpus
withdrawn on maturity is absolutely tax-free.

23
 Mutual Funds - Mutual funds are financial instruments that are professionally managed
and that invest money on behalf of any investor, in different securities. These mutual
funds are classified into various types based on the type of securities that they invest in.
Some of the most popular mutual fund types are balanced funds, stock funds, open-ended
funds etc. These funds are classified based on their percentage allocation in different
securities. So, an equity fund invests purely is equity and is a high risk high return
product while a debt fund invests purely in debt and money market instruments and is
hence a low risk low return financial product.

24
 COMPARISON OF PRODUCTS OFFERED BY HDFC BANK
, ICICI BANK AND AXIS BANK
The banks offers various products as well as services in the market. The main product base of
HDFC Bank are in personal, NRI , SME(Small to medium scale enterprise) and wholesale,
whereas ICICI Bank deals in Personal ,Privilege, Wealth, Private, NRI, Corporate Business and
AXIS bank product base are retail, NRI and agri and rural. We can compare the different
products provided by the different banks to the customers.

PRODUCTS -
 Accounts and deposits - Open bank account - the most common and first service of the
banking sector. There are different types of bank account in Indian banking sector.
HDFC Bank focuses more on day-to- day management of money and provides current
account, savings accounts, salary account ,safe deposit locker, fixed deposits dream
deposits, overdraft against fixed deposits, rural account. There are different kinds of
savings account to cater every customer’s need such as women’s saving, senior citizen,
digisave youth account etc.
ICICI bank caters and focus on unique banking needs such as savings account, salary
account ,3-in-1 account ,pension account ,EEFC account, iWish flexible Recurring
Deposit ,money multiplier FD, tax saving fixed deposits etc. The accounts offered by the
bank are diverse in nature and suit the requirements of every individual. An ICICI Bank
savings account can be a premium account or a basic account, an account for children or
one for senior citizens. The variety of options makes savings accounts held with ICICI
Bank as one the most favoured options for many customers.
Axis Bank offers diverse savings accounts to cater to the banking needs of every
individual. With a range of accounts from regular savings accounts to premium accounts,
online savings accounts to offline accounts, the bank ensures that every type of customer
is covered. The minimum balance requirements of Axis Bank differ from one type of
savings account to another Each savings account comes with a plethora of offers and

25
 discounts. There are special savings accounts for women, senior citizens and younger
ones.

CURRENT ACCOUNT COMPARISON

Facilities HDFC bank ICICI bank Axis Bank

Monthly avg. balance Rs.10,000 Rs. 50,000 Rs.10,000
Cash deposits Free upto 2 lacs per Rs. 3 lacs per month Rs. 2 lacs per month
month or 40
transactions
whichever is less.

Demand draft 30 free per month Free upto 6 lacs Free upto 3 lacs
Cash delivery Rs 300 per day Rs 130 per day Rs 100
Cheque pickup Free free Free

FIXED DEPOSITS RATE( as on 12th march 2019)

BANK NAME INTEREST RATE % P.A PERIOD

Normal rate Sr.citizen

ICICI Bank 7.50 8.00 2 yrs1day to 3 yrs

HDFC Bank 7.50 7.90 2 yrs1 day to 3

yrs

Axis Bank 7.50 8.15 2yrs<30 months

BANKS Current and saving account deposits ( as on 31st march 2018)

HDFC bank Rs 852,502cr

ICICI bank Rs. 606,755 cr
AXIS bank Rs. 514,092 cr.

26
  LOANS - HDFC bank provides loans with minimal paperwork, quick eligibility checks,
and competitive interest rates. It gives loan for home loan ,car loan ,personal loan
,business loan ,gold loan , education loan etc. HDFC bank recently introduced custom-fit
features on its car loan offering. Titled '#AapkeHisaabSe'. This feature is especially
attractive for young customers in their initial years of employment.
ICICI Bank offers wide variety of Loans Products to suit customer’s requirements such
as Home loan ,car loan ,personal loan, loan against securities, Pradhan Mantri Mudra
Yojana, Stand up India scheme etc%. To promote their products they have used various
strategies to attract the customers such as ICICI bank have introduced express home
loans within 8 hours.
Axis bank provides customized Bank Loans at competitive interest rates to their
customers. To get started, check the loan eligibility using their simple loan
calculators.Axis Bank has launched a new home loan product aimed at helping home
buyers save on the interest component.The QuikPay Home Loan will offer a repayment
structure, under which the customer repays an equal amount of principal every month
along with interest on the outstanding balance.

HOME LOAN INTEREST RATE

Bank Interest rate Processing fees

HDFC bank 8.85% onwards Upto 0.5% of loan

ICICI bank 8.95% onwards 0.5%-1.0% of loan

AXIS bank 8.85% onwards Upto 1% of loan

27
 PERSONAL LOAN RATE

Banks Loan amount Interest rate Processing fees

Axis Bank Rs. 50,000 - Rs. 15,00,000 11.49% onwards 1.50 - 2.00%

ICICI Bank
Up to Rs. 20,00,000 11.10% onwards Up to 2.25% of the loan amount

HDFC Bank
Rs 50,000 - Rs. 40,00,000 10.99% onwards Up to 2% of the loan amount

28
 CARDS - HDFC provides various options for the users, cards provided by HDFC bank
can be broadly classified as Debit card , Credit card, prepaid cards, gift plus which gives
discounts, cashback as well as rewards. Customers can easily apply online for the cards
according to their purpose and requirements. The bank offers a varied range of credit cards
that are each loaded with unique features and benefits. While some are well-suited for
shopaholics, others provide exclusive travel privileges and rewards.
ICICI bank provides cards for different uses which can be classified as Credit Card ,Debit
Cards, Commercial Cards ,Prepaid Cards ,Travel Cards ,Unifare Metro Cards also these
cards can be subclassified and selected on the bases of purpose. The banks have tied up
with different brands to provide various offers to its customers. These range from straight
discount to cash back to EMI. The offers are across travel, fashion and home furnishings,
and has participation of big brands like Yatra, Grofers, bigbasket.com, Urban Clap,
Indigo, nearbuy, Shopperstop, Pantaloons & Emirates, W and Grabon.
Axis Bank offers a range of cards that are designed for specific needs.Axis Bank offers a
range of credit cards that cater to a wide section of the society. Every individual can avail
of a credit card that suits his/her spending habits and other preferences. Each Axis Bank
credit card promises great rewards, shopping and movie vouchers and discounts along
with the facility to convert big purchases into easy EMIs and pay them back over a
period.

TOP DEBIT CARDS OF RESPECTIVE BANKS -

 The premium Burgundy World Debit Card by Axis Bank

Axis Bank's Burgundy World Debit Card is one of the best premium cards available to
Burgundy Account holders.With zero issuance/annual fee, it has a daily withdrawal limit
of Rs. 2L, Rs. 6L purchases limit, Rs. 6L lost-card liability, Rs. 15L accidental insurance
cover.It offers free ATM withdrawals, zero fuel-surcharge, four movie-tickets
(BookMyShow.com), eDGE loyalty rewards, 15% off on dining, airport lounge access.

29
  ICICI Bank's Coral+ Debit Card
It has a daily cash withdrawal limit of Rs. 1L and purchases limit of Rs. 2L. It has no
issuance fee but Rs. 2,998 annual fee.Joining bonuses include SRL Diagnostics discount-
voucher and Kaya Skin Clinic gift-voucher.Customers receive complimentary Ola Select
subscription, MakeMyTrip cash backs, buy-one-get-one-free movie tickets
(BookMyShow /Inox Movies/Carnival Cinemas), airport lounge access, 15% off at select
restaurants, PAYBACK points.

 The HDFC Woman's Advantage Debit Card exclusively for women

HDFC EasyShop Woman's Advantage Debit Card is India's first debit-card for women.
With a Rs. 150 renewal fee, it has a daily withdrawal limit of Rs. 25,000 and purchases
limit of Rs. 1.75L.Customers receive cashback for every Rs. 200 spent on groceries,
utilities, online purchases, dining, apparel, and entertainment; 50% off on locker fees;
fuel surcharge waiver. It provides Rs. 5L death cover.

TOP CREDIT CARDS OF RESPECTIVE BANKS

Cards Annual Key feature

fee
HDFC
Bank
Regalia ₹
Complimentary Priority Pass and Taj Epicure Plus Membership.
Credit 2,500
Card

ICICI
Bank
Platinum 1% fuel surcharge waiver on fuel transactions of maximum ₹ 4,000 at
Chip Nil
HPCL pumps.
Credit
Card

Axis bank 1500 Up to 2 Economy tickets and 1,000 CV points on extended spends
vistara
credit card

30
 INSURANCE - Insurance is about preparing for the unexpected while working toward
your goals. Personal insurance can keep an unfortunate turn of events from turning into a
financial catastrophe.
HDFC believes in safeguarding what you cherish and with that tagline they provide
insurance plans such as life insurance, health and accident insurance, motor insurance,
two wheeler insurance, travel insurance, home insurance. There are 29 individual
products and also 9 different group products under the company’s portfolio. HDFC Life
Click 2 Protect 3D Plus is one of their successful insurance.The range of products offered
are by HDFC ergo general insurance and Bharti AXA general insurance.
ICICI provides insurance which can be purchased online, plans provided by them are life
insurance , general insurance which covers Car Insurance ,Two wheeler Insurance ,
Health Insurance ,Travel Insurance , Home Insurance. Apart from that they also provides
Pradhan Mantri social security scheme. "Buy Online" feature provides the customers‟
more ease and convenience of completing transactions entirely online without move out
of desk. ICICI Prudential iProtect Smart is one of their successful insurance.
Axis Bank has partnered with leading insurers to provide you with different Insurance
solutions, which offer assured compensation of financial expenses / losses during medical
and non-medical emergencies. Avail any Insurance policy Life Insurance,Non-Life
Insurance and other government introduced Insurance policies. Axis banks has various
partnerships with different companies such as Life Insurance Corporation of India, max
life insurance, TATA AIG general insurance, Apollomunich health insurance.

31
 TOP LIFE INSURANCE PLANS

Life inurance plan Enty age(min/max) Policy term(min/max) Sum assured

(min/max)

HDFC 18/65 years 10/30 years 10lac/10 crs

click2protectplus

ICICI pru iprotect 14/55 years 10/30years 3lacs/NA

Max lifeonline term 18/70 years 10/35 years 25 lac/100 crs

plan

LIFE INSURANCE STATISTICS

Insurance Claims received Claims paid Claim settlement Percentage of

provider grievances solved
HDFC 12566 12289 97.80% 99.85%

ICICI 11459 11216 97.88% 99.97%

AXIS 10332 10152 98.26% 100%

32
 INVESTMENTS - Investment is that product which is endorsed by the banks differently.
When it comes to investments, what most prudent investors want is for their investments to
be secure and at the same time, earn reasonable returns. Investors however, broadly fall into
two categories – conservative or risk-averse investors who are more concerned on the
safety/security of their investment, and aggressive investors: those who are willing to take a
risk to get higher returns.
HDFC bank provides various investment products such as Mutual Funds, Equities &
Derivatives, Inflation Indexed National Savings Securities, Savings Bonds, Capital Gains
Bonds, IPO Application through ASBA. Apart from products they also provide services such
as investrack in which they do the risk profiling, expert advice, Comprehensive Portfolio
Tracker. Public Provident Fund (PPF) scheme, National Pension System (NPS) Sukanya
Samriddhi Account are also provided.
ICICI bank believes that every individual have specific needs and priorities to cater them
they offers fixed income products which includes Fixed Deposits, Public Provident Fund
,Sukanya Samriddhi Yojana (SSY) , Bonds, Senior Citizen Saving Schemes. The
investment products provided by ICICI are mutual fund, gold monetisation gold scheme, IPO
through ASBA. ICICI Bank assists to manage finances by providing various investment
options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial
Public Offers and Investment in Pure Gold.
AXIS bank offers variety of investment options and investment banking services for
individuals like mutual funds, savings bonds, dmat account, PPF, IPOSmart, Axis direct etc.
The most popular and well known of its funds is the Axis Long Term Equity Fund,
an ELSS with a lock-in period of 3 years.

33
 Best SIP plans
Fund name 1 year return 2 year return 3 year return
HDFC equity fund 8.32% 18.22% 15.93%
ICICI prudential
0.89% 11.43% 17.92%
bluechip fund
Axis long term equity
6.45% 15.17% 19.58%
fund

Tax saver FD interest rates

Banks Tax saver FD interest rates

General Senior citizen

HDFC bank 6.50% 7.00%

ICICI bank
7.25% 7.75%

Axis bank 7.00% 7.50%

34
 Apart from these products there are unique products that the banks provides individually.

 HDFC BANK

1. PREMIUM BANKING - HDFC Bank offers premium banking services to meet your
customised banking needs and provides special privileges to suit your lifestyle at your door
step. Premium banking are classified into four categories which are Imperia Banking,
Preferred Banking, Classic Banking, Prime Banking.

2. FOREX - HDFC Bank helps in foreign exchange needs. Whether you are a traveller, a
student studying abroad or simply remitting money for business purposes, they offer prompt
assistance and efficient services. Their FOREX facility can be used for travel solutions, forex
help, remittance products and other Forex services.

3. PAYZAPP – HDFC Bank PayZapp, a complete payment solution, giving you the power to
pay in just One Click. With PayZapp, you can shop on your mobile at partner apps, buy
movie tickets, groceries, compare and book flight tickets and hotels, shop online and get
great discounts at SmartBuy, send money to anyone in your contact list or to your bank
account, pay bills and recharge your mobile, DTH and data card and many more.

4. HDFC Bank Watch Banking- HDFC Bank thought that it was the opportune moment to
introduce a new category in digital banking, leveraging the emerging wearable platforms, and
becoming the first bank in India to launch Watch banking for Apple Watch.

35
 ICICI BANK

1. RURAL BANKING- ICICI Rural banking offers easy and hassle free loans for rural
agriculture needs. They also offer term loans for buying cattle, purchase of equipment for
irrigation and for other agricultural requirements. They also provide instant gold loans. They
have also created products that are simple, convenient and locally accessible so as to
maximise the comfort.

2. PERSONAL FINANCE MANAGEMENT – With the help of personal finance management

customers can manage their finances, track expenses. Different software and tools are used
that are iWealth ,My Money, My Goals. Personal finance management tool that enables to
take better control of money. It quickly helps to understand and plan your finances.

3. POCKETS – Pockets is a VISA- powered e-wallet that customer of any bank can use to
recharge mobile, send money, shop anywhere, pay bills and much more. It also comes with a
physical shopping card which can be used to shop on any websites or retail stores.

4. Money Coach - Money Coach from ICICI Bank is a personal financial management platform
that guides you on your financial health, assists you in achieving your financial goals and
manages your mutual fund investments. Thus, helping you manage your money for life, free
of cost.
 Set goals, achieve them
 Stay financially healthy
 Build your Mutual Fund portfolio

36
 AXIS BANK

1. Axis Active - A program which comes with a fitness band that we have engineered in
partnership with GOQii. What makes this band unique is that it doubles up as your
wallet. Just tap to pay and make contactless payments at 50,000+ NFC enabled
outlets across India. And get fit while you’re at it.
2. Axis PayGO -PayGO offers payment solutions to corporates/ educational
institutes/gated communities in India that allows their employees/ students/members
to make contactless and cashless payments in a secure manner.Employees / Students /
Members / Interested parties can make payments on the go with Axis PayGO, just by
tapping their ID Card or Mobile Handset or NFC (Near Field Communication) card at
a pre-defined merchant outlet’s terminal.
3. Axis ASAP- It is a new age digital savings account offered by Axis bank.customers
can open Axis ASAP account by downloading the Axis mobile aap or by visiting
www.axisbank website and registering yout aadhar PAN and other basic details.Axis
ASAP is a zero balance account and offers higher rates on balances above Rs. 10,000.

4. Digital banking videos - Axis bank started banking related videos for their customers,
so that the banking process can be easier for them. The videos shows the process step
by step which makes it simple for customers to understand.

37
 CONCLUSION
This can be attributed to the fact that today larger customers base in India is banking with Private
sector banks as compared to Public sector banks. HDFC bank, ICICI bank and Axis bank are
the names that stand apart among others when we talk of private sector banks in India. They are
fairly successful banks giving stiff competition to government banks. The reason of their success
lies in the fact that both have introduced a greater efficiency of services and also host of new
services that were demanded by consumers.In view of the resilient competiton in banking
industry and the fact that most of the products as well as services provided by the banks are
almost identical, effective competitive strategies of these banks can certainly differentiate their
produtcs from those of rivals.

38
 FINDINGS AND SUGGESTIONS
Banking is the backbone of a modern economy.With the help of this report I was able to
gain basic knowledge about the various products that are available and provided by the banks. It
helped to understand the variety of products that are offered to the customers in the market.

The banks which I chose were Axis bank , HDFC bank and ICICI bank. They were highly
competitive, which also helped to understand the way the promote their product in the market for
the customers. Customer satisfaction is necessary in banking sector therefore variety of products
in each segements are available to cater all the different needs and requirements of the
customers.It can be observed that Banks not only have to reduce cost but also have to design
innovative strategy to attract customers.

 HDFC bank leverage on its other subsidiaries like Housing & Development Finance
Corporation Ltd. which is known for extending housing loans, HDFC Mutual Fund for
Mutual fund schemes, HDFC ERGO General Insurance for selling general insurance
products, HDFC Life for Life insurance, HDFC Credila for education loan. Bank earns
commission/ fees on selling/distributing these products through its network of branches.
 On the other hand ICICI bank focuses on loan origination in the large corporate, SME and
rural agricultural segments and on non-fund based products and services. Besides the bank
itself being the market leader across retail loan portfolios, its subsidiaries ICICI Life
Insurance, ICICI General Insurance and ICICI AMC are leaders in their respective
businesses
 Axis Bank seems to be moving fast on its digital strategy with a multi-fold increase in the use
of electronic banking channels. Also their innovative strategies like choose your account
number, Real time video banking, the first multi-social payment app in PingPay and the first
integrated mobile money platform through LIME, which is the country’s first mobile app that
offers wallet, shopping, payments and banking are unique and innovative marketing
strategies, giving the bank an advantage over others.
 HDFC bank have more branches and ATM over the country than does ICICI and Axis bank
making it more accessible to clients.

39
 REFRENCES

 https://www.hdfcbank.com/
 https://www.icicibank.com/
 https://www.axisbank.com/
 https://www.paisabazaar.com/
 https://www.moneycontrol.com/
 www.bankbazaar.com
 https://www.ndtv.com/business/home-loans-interest-rates-compared-state-bank-of-india-
sbi-vs-hdfc-bank-vs-icici-bank-1895484
 https://www.financialexpress.com/money/fd-rates-of-leading-banks-revised-know-the-
latest-rates-of-axis-bank-vs-yes-bank-vs-sbi-vs-icici-vs-hdfc-vs-kotak-
bank/1512215/?utm_source=quora&utm_medium=referral
 Brindadevi .V , A Study on Profitability Analysis of Private Sector Banks In India,
IOSR Journal of Business and Management (IOSR-JBM)

40