Department of Management Studies

(JAI NARAIN VYAS UNIVERSITY, JODHPUR)

A
A report submitted in partial fulfilment of the requirements of the
MBA PROGRAM

“DIGITAL/ E- BANKING in H.D.F.C. BANK”.

2016-2018

SUBMITTED TO: SUBMITTED BY:

Prof. S.P.S. BHADU DEEPAK RAJPUROHIT
HEAD OF DEPARTMENT MBA-FS 4th Sem
Dept. of Management Studies Roll no.- 17MFS10013
 ACKNOWLEDGEMENT

“There is no such thing as a self-made man, we all are made up thousands

of others” – George Adams.

If words are considered to be signs of gratitude then let these words

Convey the very same, my sincere gratitude to HDFC BANK for
Providing me with an opportunity to work with the BANK and giving
Necessary directions on doing this project to the best of my abilities.
I am highly indebted of, THE BRANCH MANAGER OF HDFC, BANK who
has provided me with the necessary information and also for the support extended
out to me in the completion of this report and his valuable suggestion and
comments on bringing out this report in the best way possible.
I also thank my project guide Prof. S.P.S. BHADU HEAD OF DEPARTENT of
my college DEPARTMENT OF MANGEMENT (JAI NARAIN VYAS
UNIVERSITY )JODHPUR ,who has sincerely supported me with the valuable
insights into the completion of this project.
 DECLARATION

I undersigned DEEPAK RAJPUROHIT, I am student of MBA-FS 4TH

semester declare that I have done the project on “DIGITAL / E- BANKING IN
H.D.F.C. BANK.” has been personally done by me under the guidance of Prof.
S.P.S. BHADU Head of Department of DMS (DEPARTMENT OF
MANAGEMENT STUDIES, J.N.V.U. JODHPUR) OF in partial fulfilment of
MBA Program- during academic year-2016-2018. 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.

DEEPAK RAJPUROHIT
MBA-FS IV sem
17MFS10013
 TABLE OF CONTENTS
INDEX TOPIC PAGE NO.
EXECUTIVE SUMMARY

1. INTRODUCTION 8-11

2. BANKING INDUSTRY profile 12

3. indian banking system 13

4. classification of major banks in india 14-17

5. performance of indian banking industry 18

6. functions of rbi 19

7. few imperative personnel of hdfc bank 20

8. company profile 21-24

9. digital banking platform 25-30

10. turnover &share market report 30-32

11. major digital banking competitors of hdfc 32

12. contribution to digital banking 33-34

13. questionnaire 35-42

14. CONCLUSION & RECOMMENDATIONS 43-46

15. BIBLIOGRAPHY 47
EXECUTIVE SUMMARY

The present study, based on data and responses received from the HDFC bank and from some
customers of AXIS bank, HDFC bank, ICICI bank and some other private & nationalized banks in
Kolkata, was undertaken to understand the concept of banking and sub classification of banking into
traditional and modern banking to identify the various types of services offered by the banks, the level
of satisfaction among the customers from different types of services, expectation about these services
and the different age group of the customers accessing digital banking. Hence, the major objectives are:

Objectives of the Study:

To understand the concept, features and evolution of Banking, traditional and digital/ E- Banking.
To identify various e-banking services offered by Indian banks
To study and analyze the progress made by Indian banks in adoption of technology in the banking
To study the shift of HDFC bank from traditional to modern banking.
To study the challenges faced by Indian banks in adoption of technology in the banking sector.

To understand the response, views and understanding of the customers of HDFC Bank and also
the population in general about the digital banking.

To make an analysis of the competition between HDFC bank and its competitors with respect to
digital banking features, advantages that HDFC bank has over the other banks with respect to
digital banking and vice versa.
Limitations of the study:

1. The project is carried out in Kolkata so the entire analysis is based on the information, data and
customer response that were accumulated there.

2. The number of customers who participated in the analysis was less then equal to 150 of which
majority were men and very few women who are integral part of the customer of various banks.

3. The customers were reluctant to answer the questionnaires based on banks, HDFC bank and
digital banking.
 Research Methodology:
Primary Data:

In this research with a sample size of nearly 20 customer’s data will be available in
form of questionnaire collected in terms of different questions influencing the use
of internet banking.

Internet banking is considered as dependent on awareness among customers

which will be studied with help of different independent variable. Only the
customers of HDFC & bank are taken as samples for study.

Secondary data:

Collection of information from different kind of books the data of the company
what they maintained.

OPERATIONAL
The analysis of the topic digital banking would be carried out by making a
DEFINATION : thorough study of the concept of digital banking and its features benefits to the
customers and the banking industry the challenges faced at present regarding the adoption of
technology in the banking services the services offered by HDFC and its competitors to the customers
and its analysis. The analysis will be based on the data received information collected responses and
using various mathematical tools to analyze the data so collected. The project will mainly focus on the
analysis of the introduction of digital banking by HDFC features of the digital banking of HDFC and its
competitors the growth in usage of digital banking among the people of the country and of the
customers of HDFC bank and also the status of HDFC bank in relation to other banks in term of its
varied products and services pertaining to the digital banking.

Procedure/ Research Methodology:

Primary source: Data collected directly by interviewing the customers of the bank, then through
questionnaires and surveys and also through observation with the company guide { Branch
Manager of
 HDFC bank}

Secondary source: secondary data is collected that is already available in the market whether in
the journals, on the internet, in a company’s record.

Results/ Outcome:

The results of this study will give us a clear conception and understanding of digital banking. Hence at
the end of the project I would be able to clearly define the following:

a) Traditional Banking and Digital banking its concepts, features and the growth that digital
banking has on the former.
b) The various concepts of digital banking products and services introduced by HDFC.

Conclusion:

Banking in India is supportive, technically advance and vigorous. In a country like India there is need
for providing better services to customers. Banks must be concerned about the attitudes of customers
with regard to acceptance of online banking. The importance of security for acceptance of internet
banking is a very important issue and it was found that people have weak understanding of internet
banking, although they are aware about risk. The study shows that customers are more reluctant to new
technologies that might contain little risk. Hence, banks should design the website to address and trust
issues as well.

RECOMMENDATION:

a) Manage the information that’s vital to the digital banking. For banks to create new sources of
value, they need to understand the data that makes up their customers code halos of value each
individual’s unique virtual identity.

b) They should act strategically providing a cohesive, cross-channel experience requires an

enterprise-wide approach.

c) Calculate the cost of not adopting digital banking: lost opportunity, customer irritation and
 stagnation in new customer growth and product sales.

d) Banks should also ensure that online banking is safe and secure for financial transaction similar
to the traditional banking.

e) Banks should also organize seminar and conferences to educate the customers regarding uses of
online banking as well as security and privacy of their accounts.

To sum up, opportunities in e-banking are immense but the only need is to explore them.

OBJECTIVES OF THE STUDY:

• To understand the concept, features and evolution of digital banking.

• To analyze the progress made by Indian banks special focus on HDFC Bank applications.

• To identify various E-Banking services adopted by Indian banks

• To study the challenges faced by Indian banks in adoption of technology and make
recommendations to tackle these challenges.
 INTRODUCTION

BANKING : Bank is a lawful organization an establishment authorized by the government to

accept deposits that can be withdrawn on demand, pay interest, clear checks, take loans, act as an
intermediary in financial transactions, that creates money by lending to a borrower, thereby
creating a corresponding deposit on the bank’s balance sheet and provide other financial services
to its customers.

TRADITIONAL BANKING: Traditional banking means performing banking transactions in a

brick and mortar structure. The customer has to visit the branch of the bank in person to perform
the basic banking operations such as account enquiry, funds transfer, cash withdrawals, applying
for loans etc. Hence, physically visiting the bank is essential for a customer to avail the banking
service as there is no use of information technology in carrying out the banking transactions.
Some of the traditional banking activities are as follows:
a) Opening an account
b) Creating of
deposits
c) Renew of fixed
deposits d) Withdrawals
e) Apply for
loans
f) Transfer funds between accounts within the
banks.
IMPACT OF TECHNOLOGY IN BANKING SECTOR: The information technology has
revolutionized aspects for our life. The world at large is entering into the ‘NET AGE’, internet or
simply ‘NET’ is an inter-connection of computer communication networks covering the whole
world. The relationship between IT and Banking is fundamentally high because of which it is
expected to reduce costs and facilitate customized products. The advent of information
technology to every aspect of human life and business has been so obvious that it does not need to
be accentuated more. Information technology has been of great essence in banking system. Today
both public and private sector banks are trying to rapidly transform itself from traditional banking
to relationship banking by establishing direct relationship with customers through the introduction
of IT in banking known as “DIGITAL BANKING”. The following has been implemented
effectively to introduce technology in the traditional form of banking namely-
 a) COMPLETE CENTRALIZED
SOLUTION
b) CLUSTER APPROACH
c) HIGH TECH BNK
WITHIN BANK

SHIFT FROM TRADITIONAL BANKING TO MODERN BANKING: The Banking sector in

India has
experienced a rapid transformation. Just about a decade back this sector was limited to the sarkari
(read nationalized) and co-operative banks. Then came the multi-national banks, but these were
confined to serving an elite few. The opening up of the Indian banking sector to private players
acted as 'the tipping point' for this transformation. The deregulatory efforts prompted many
financial institutions (like HDFC and ICICI) and non-financial institutions enter the banking
arena. With the entry of private players into retail banking and with multi-nationals focusing on
the individual consumer in a big way, the banking system underwent a phenomenal change.
Multi-channel banking gained prominence. For the first time consumers got the choice of
conducting transactions either the traditional way (through bank branch), through ATMs, the
telephone or through the Net. Technology played a key role in providing this multi-service
platform. The entry of private players combined with new RBI guidelines forced nationalized
banks to redefine the core banking strategy and technology was central to this change.
TRANSFORMATION TO DIGITAL BANKING: E-Banking started with the introduction of
computers and
ATM in 1970’s. The addition of internet and mobile banking has revolutionized banking services.
Banks use E-Banking facilities to offer a wide range of products and services. This development
has been leading to the creation new business models involving banks and non-banks entity such
as internet service providers and other technology firms.
E-BANKING/ DIGITAL BANKING: Online banking, also known as internet banking, e-banking
or virtual banking, is an electronic payment system that enables customers of a bank or other
financial institution to conduct a range of financial transactions through the financial institution's
website. E-banking includes the systems that enable financial institution customers, individuals or
businesses, to access accounts, transact business, or obtain information on financial products and
services through a public or private network, including the Internet. Customers access e-banking
services using an intelligent electronic device, such as a personal computer (PC), personal digital
assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the
risks and controls are similar for the various e-banking access channels, this booklet focuses
Specifically on Internet-based services due to the Internet's widely accessible public network.
Accordingly, this booklet begins with a discussion of the two primary types of Internet websites:
informational and transactional. Some of the modes of E-Banking are:

a) Automated Teller Machines

b) Internet Banking
c) Mobile Banking
d) Phone Banking
e) Sms Banking etc.

FEATURES OF E-BANKING:

A) A bank customer can perform non-transactional tasks through online banking, including –
1. Viewing account balances
2. Viewing recent transactions
3. Downloading bank statements, (for example in PDF format)
4. Viewing images of paid cheques.
5. Ordering cheque books
6. Download periodic account statements
7. Downloading applications for M-banking, E-banking etc.
B) Bank customers can transact banking tasks through online banking, including –
1. Funds transfers between the customer's linked accounts

2. Paying third parties, including bill payments (see, e.g., BPAY) and third party fund
transfers (see, e.g., FAST)
3. Investment purchase or sale
4. Loan applications and transactions, such as repayments of enrolments
5. Credit card applications
6. Register utility billers and make bill payments
7. Financial institution administration
8. Management of multiple users having varying levels of authority
 BANKS INVOLVED IN E-BANKING:

(A) PUBLIC SECTOR BANKS (B) PRIVATE SECTOR BANKS

STATE BANK OF INDIA HDFC BANK

INDIAN OVERSEAS BANK ICICI BANK
UNITED BANK OF INDIA AXIS BANK
CENTRAL BANK OF INDIA KOTAK MAHINDRA BANK
BANK OF INDIA INDUSIND BANK

RELATIONSHIP OF HDFC- DIGITAL HDFC Bank’s digital banking is the online

BANKING: banking services
offered by the bank to its largest number of
customers. This service can be accessed from anywhere any time allowing the customers to
control their funds. Moreover, it is completely safe as the bank utilizes the most advanced
technologies and infrastructures. HDFC provides a host of features such as view a/c balances &
statements, transfer funds between accounts, create fixed deposits online, request a demand draft,
pay bills, order a cheque book, request stop payment of a cheque, apply for a personal loan or an
auto loan or many more. Moreover, HDFC bank also offers to their corporate clients E-Net, a
fully secured internet based online, real time electronic delivery channel, and providing
convenient and secure access to their banking information over the internet. E-Net allows multi-
branch connectivity and can integrate with heterogeneous core bank end system across branches
in India. Hence, HDFC bank and DIGITAL BANKING goes hand in hand where this bank is
trying its best every-day to transform itself completely to a digital banking platform by
introducing various types of digital services like net banking, phone banking, sms banking,

watch banking various mobile banking applications like

chillr application, payzapp and many more to come
through their technological innovations where its
customers will carry out all their transactions online
through various digital products at their convenience and
without even visiting the branch of the bank. Therefore,
digital banking is intertwined with HDFC bank which is
aiming to become a pioneer in providing financial
services to its customers through digital channels.
BANKING INDUSTRY PROFILE

EVOLUTION OF BANKING: The concept of Banking in India dates back to the first
half of 18th century. The first bank that was established in the country was The General Bank of
India founded in 1786. After that came the State Bank of India in Kolkata in 1806 which was
then known as The Bank of Bengal. The operations of all the banks in India are controlled by the
Reserve Bank of India. All the Indian banks are governed by the RBI or Reserve Bank of India.
This governing body took over the reasonability of formally regulating the Indian banks in 1935.
The Reserve Bank of India was announced as the official Central Banking Authority for the
smooth supervision of the banking industry in India. Banks in India are classified into 2 broad
categories namely, Public sector banks and Private sector banks. The banking scenario in India
has already gained momentum, with the domestic and international banks gathering pace. All the
banks in India are following the 'cost', determined by revenue minus profit model. This means
that all the resources should be used efficiently to improve the productivity and ensure a win-win
situation. To survive in the long run, it is essential to focus on cost saving. Previously, banks
focused on the 'revenue' model which is equal to cost plus profit. Post the banking reforms,
banks shifted their approach to the 'profit' model, which meant that banks aimed at higher profit
maximization. Thereafter, the Government of India issued a law and nationalized the 14 largest
business banks with effect from the midnight of July 19, 1969. A second dose of nationalization
came when 6 more commercial banks followed in 1980. With this second dose of
nationalization, the Government of India controlled around 91% of the banking business of
India.

WHAT IS A BANKING SYSTEM: The structural network of institutions that offer financial
services within a country. The members of the banking system and the functions they typically
perform include: (1) commercial banks that take deposits and make loans, (2) investment banks
which specialize in capital market issues and trading, and (3) national central banks that issue
currency and set monetary policy. Accounting for trillions in assets worldwide, the banking
system is a crucial component of the global economy
INDIAN BANKING SYSYTEM

RBI RECORDS FOR BANKS IN INDIA: There are currently 27 public sector banks in
India out of which 19 are nationalised banks and 6 are SBI and its associate banks, and rest two
are IDBI Bank and Bharatiya Mahila Bank, which are categorised as other public sector banks.
There are total 93 commercial banks in India. The number of private banks are 21 and total
number of foreign banks with branches in India are 27 and representative offices in India are 20.
The number of regional banks is around 25. According to RBI data at the end of March 2015 the
total value of transactions recorded on the mobile banking platform in the industry stood at
“16913.99 crore”.
RESERVE BANK OF INDIA: The Reserve Bank of India is India's central banking institution,
which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April
1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act,
1934. The original share capital was divided into shares of 100 each fully paid, which were
initially owned entirely by private shareholders. Following India's independence on 15 August
1947, the RBI was nationalised on 1 January 1949. The RBI plays an important part in the
Development Strategy of the Government of India. It is a member bank of the Asian Clearing
Union. The general superintendence and direction of the RBI is entrusted with the 21-member
Central Board of Directors: the Governor, 4 Deputy Governors, 2 Finance Ministry
representatives, 10 government-nominated directors to represent important elements from India's
economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai
and New Delhi. Each of these local boards consists of 5 members who represent regional
interests, and the interests of co-operative and indigenous banks. The bank is also active in
promoting financial inclusion policy and is a leading member of the Alliance for Financial
Inclusion (AFI).
PERFORMANCE OF INDIAN BANKING INDUSTRY

Global economy continued to remain in doldrums in the past year. During the year gone by,
central bankers across the globe other than the US, resorted to monetary easing measures to
boost the economy. However, the global economy continued to remain fragile with the second
largest economy China witnessing a huge slowdown. Even crude prices continued to slide
sharply on oversupply issues and this has further weighed down on global recovery. The
International Monetary Fund lowered its global growth forecast to 3.4% in 2016. In light of the
continued weakness, the European Central Bank and Bank of Japan have decided to extend their
quantitative easing programs. The Indian economy has been on a relatively sound footing,
registering the fastest growth in FY15. However, problems such as a weak investment climate
and tepid earnings growth continue to plague the economy. The banking sector, being the
barometer of the economy, is reflective of the weak macro-economic variables. The Indian
banking system continued to battle falling asset quality issues and the need to maintain capital
adequacy in the light of piling bad loans. The banking sector recorded slowdown in balance sheet
growth for the fourth year in a row in FY15. The slowdown was on account of sluggish credit off
take that slipped to single-digits during the year. But on the back of controlled operating
expenses, the sector managed to post incremental profits during the year. However, profitability
remained depressed with the Return on assets continuing to linger below 1% during the year. The
ownership in the banking sector remained predominantly in the public sector despite a gradual
decline in their share in recent years. Public sector banks accounted for 72.1% of total banking
sector assets. In terms of profits, the share of private banks surpassed that of PSBs. In FY15,
PSBs had a share of 42.1% in overall profits. Since the start of 2015, RBI has reduced interest
rates by 1.25%. Although banks have reduced base rates but not to the same extent. For the full
transmission of rates, the RBI has asked banks to follow the marginal cost of funds while setting
the base rate. In order to prevent banks from liberally restructuring assets to avoid slippages, the
RBI has made all assets restructured from 1st April 2015 to be treated at par with NPAs as far as
provisioning is concerned. This means that the provisioning in case of the restructured assets will
increase from 5% to 15
FEW IMPERATIVE PERSONNEL OF HDFC BANK:

LT. Mr. Hasmukhbhai parekh,

Founder of HDFC Bank

Hasmukhbhai Parekh (March 10, 1911 – 1994) was an Indian

financial entrepreneur, writer and philanthropist. He played a
role in the development of Industrial Credit & Investment
Corporation of India, now ICICI Bank, founded the Housing
Development Finance Corporation, and in 1992 was awarded
the Padma Bhushan for his contribution to the finance
industry in India. The London School of Economics also
conferred on him an honorary fellowship. At 68, when

he had already received many honours and was stepping down from ICICI, he started a new
institution, the Housing Development Finance Corporation (HDFC), the first of its kind for
housing finance in India.

Mr. ADITYA PURI, managing director, HDFC Bank

Aditya Puri is the Managing Director of HDFC Bank, India's

largest private sector bank. Aditya Puri was born in Gurdaspur
District (Punjab) and studied at Punjab University, Chandigarh,
gaining a Bachelor’s degree in

Commerce. He qualified as a Chartered Accountant with the

Institute of Chartered Accountants of India. He has worked in
the banking sector for 40 years, in India and other countries, and
became CEO of Citibank, Malaysia in 1992. In September 1994
he returned to India as Managing

Director of HDFC Bank. He presided over HDFC's acquisitions of Times Bank Limited in 2000
and of Centurion Bank of Punjab in 2008.
Mr. Nitin Chugh – senior executive vice-president, HDFC Bank

HDFC senior executive vice president and head of digital banking,

Nitin Chugh, sat down with Media Nama and spoke to us at length
about the bank’s new wallet and digital initiatives. He also spoke to us
about how the bank’s staff used face-to-face conversations with
customers and push the adoption for mobile banking. As of January,
he says the volume of mobile banking transactions has increased
to Rs 4,900 crore as a result of this.
 COMPANY’S PROFILE:

HDFC Bank Ltd. is an Indian financial services company.

The Bank operates in four segments: treasury, retail banking,
wholesale banking and other banking business. HDFC Bank
was promoted by the Housing Development Finance
Corporation, a premier housing finance company of India.
HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. Total assets: US$ 83.1
billion (as of September 30, 2014). Net profit: US$ 923.8
million (2011). HDFC Bank offers a wide range of
commercial and transactional
banking services and treasury
DISTRIBUTION NETWORKS:
products to wholesale and
retail customers. As of December 1, 2014, the Bank's
distribution network was at 3,600 branches and 11,515
ATM's in 2,272 Indian towns and cities.HDFC Bank is
headquartered in Mumbai. As of March 31, 2016, the Bank’s
distribution network was at 4,520 branches across 2,587 cities. All branches are linked online on
a real-time basis. Customers across India are also serviced through multiple delivery channels
such as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank’s
expansion plans take into account the need to have a presence in all major industrial and
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 centres where the NSE / BSE
have a strong and active member base. The Bank also has a network of 12,000 ATMs across
India. HDFC Bank’s ATM network can be accessed by all domestic and international Visa /
MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge
cardholders.

AMALGAMATION & MERGER: 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
Chop received 1 share of HDFC Bank for every 29 shares of CBoP. 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.

BUSINESS HDFC Bank's mission is to be a World Class Indian Bank. The objective is
FOCUS: 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. 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

Vision & Mission: To become the undisputed market leader in providing housing related
finances, to realize the dream of shelter for all in Sri Lanka". HDFC
Bank’s mission is to be a world class Indian bank by adopting a single
minded focus on service excellence and product quality. 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.

CAPITAL STRUCTURE OF HDFC: As on 31st March, 2015 the authorized share capital of
the Bank is Rs. 550 crore. The paid-up share capital of the Bank as on the said date is Rs
501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each). The HDFC Group holds 21.67 %
of the Bank's equity and about 18.87 % of the equity is held by the ADS / GDR Depositories (in
respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 32.57 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has
4, 41,457 shareholders. The shares are listed on the NSE and BSE. 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 under ISIN No US40415F2002.

THE ORGANISATION STRUCTURE:

The organization structure of HDFC BANK (IN CENTRAL PLAZA BRANCH, CEO/M
KOLKATA) D
COUNTRY
HEAD
REGIONAL
HEAD
ZONAL HEAD
CLUSTER HEAD
CIRCLE HEAD
BRANCH HEAD

BRANCHMANAGER:

RELATIONSH
IP ASSISTANT INVESTMENT
OPERATIONS TELLER
MANAGER BRANCH RELATIONSHIP
AUTHORIZE
HEAD HEAD MANAGER MANAGER R

OPERATIONS OF 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. HDFC bank deals with 3 key segments

a) Retail Banking
b) Wholesale Banking
c) NRI Banking
d) Treasury
RETAIL BANKING: The objective of the Retail Bank is to provide its target market customers
a full range of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC
Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment
Advisory Services programs have been designed keeping in mind needs of customers who seek
distinct financial solutions, information and advice on various investment avenues. The Bank
also has a wide array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers.

WHOLESALE BANKING: The Bank’s target market is primarily large, blue-chip

manufacturing companies in the Indian corporate which combine cash management services with
vendor and distributor finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong customer
orientation, the Bank has made significant inroads into the banking consortia of a number of
leading Indian corporate including multinationals, companies from the domestic business houses
and prime public sector companies. Sector and to a lesser extent, small & mid-sized corporate
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,

TREASURY: The Bank’s target market is primarily large, blue-

chip manufacturing companies in the Indian corporate sector and
to a lesser extent, small & mid-sized corporate and agric-based
businesses. For these customers, the Bank provides a wide range
of commercial and transactional banking services, including
working capital finance, trade

services, transactional services, cash management, etc. The bank is also a leading provider of
structured solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers. Based on
its superior product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate including
multinationals, companies from the domestic business houses and prime public sector companies

. THE PRODUCTS AND SERVICES:

a) Account & Deposits

b) Loans
c) Cards
d) Investments
e) Insurance
f) Forex
g) Mutual Funds
h) Safe Deposit Lockers
i) Private Banking
j) NRI Banking
k) Premier Banking

DIGITAL BANKING PLATFORM:

HDFC Bank, one of the leading private sector lenders in India, has launched a new initiative -
'Bank Aap Ki Muththi Mein' - as part of their 'Go Digital campaign' that attempts to turn a
Smartphone into a bank branch. The new HDFC Bank app allows over 75 banking transactions,
apart from essential transactions such as: booking fixed and recurring deposits, bill and tax
payments, buying insurance, and mutual funds, the app allows customers to buy all kinds of
loans instantly. It also provides customized, location-specific promotions, as well as offers and
deals on shopping, dining, movies, and entertainment. Notably, part of the bank's 'Go Digital'
offering, 'Bank Aap Ki Muththi Mein', is a technology agnostic initiative with apps on the three
popular Smartphone platforms - iOS, Android, and Windows Phone. The initiative also extends
to basic feature-phone users with SMS and missed-call banking as well as a mobile site. All that
a customer needs to do is, send a text or call a toll-free number to know his account balance, get
a mini statement, request a check book, or detailed account statement. The latter of course is a
popular channel for a large number of rural and semi-urban customers. The SMS banking service
(and the Android app) is also available in Hindi for a broader demographic. "With 'Bank Aap Ki
Muththi Mein', you can do everything other than access your locker, and deposit or withdraw
cash. Customer convenience is central to our concept of Digital. And, there is no bigger
convenience than bringing your bank to the palm of your hand. We are very excited to unveil our
'Bank Aap Ki Muththi Mein' off millions of our countrymen," said Nitin Chugh, head - Digital
Banking, HDFC Bank. HDFC Bank, which began its digital journey by launching net banking
services way back in 1999, was the first to launch SMS banking in 2000. The conversation with
Nitin Chugh, head - Digital Banking, HDFC Bank, I learned that as of 2014, 55% of all
transactions at HDFC Bank are conducted through digital channels, which is significantly higher
than the corresponding figure in 2001 of just 3%. Nitin asserted that the campaign is essential
since as of September 2014, India had over 900 million mobile users in the country, but only 40
million mobile banking customers. "We want to be active partners in a new digital India,
envisioned by the government and central bank, offering our customers what they want, when
they want it. Customer convenience and centricity lies at the heart of all our digital banking
initiatives," he said, adding that even in rural India, technology will play a big role in financial
inclusion and bringing millions into the organized banking fold. 'Bank Aap Ki Muththi Mein'
allows customers to transact with the bank round-the-clock. While HDFC is not the only bank to
offer mobile banking services through various channels, it aims to trump the competition with
the widest array of capabilities it offers.

5 BROAD FACILITIES THAT E-BANKING PROVIDES:

a) Lower manpower and back office cost.

b) 24*7 service bank online services are provided 24 hours a day, 7 days a week and 52
weeks a year.
c) No more Qs- there are no queues in an online bank.
d) Convenience.
e) Time saving.

DIGITAL SERVICES:

a) Internet Banking.
 b) Phone Banking.
c) Mobile Banking.
d) SMS Banking.
e) Missed call Banking.
f) ATMs.

a) Internet Banking: Now monitor, transact and control your bank account online
with our net banking service. You can do multiple things from the comforts of your home or
office through HDFC Net Banking your one stop solution for all your banking needs. Get all
account details, submit requests and undertake a wide range of transactions online through our
HDFC Bank Net Banking services. Our E-Banking service makes banking a lot more easy and
effective.

b) Phone Banking: Phone Banking offers you all the

conveniences you need to access your Accounts, Credit Cards,

Loans, Demat & Investment Services from the comfort of your
home, office or on the move, all this in your preferred language.
Phone Banking services are a combination of IVR and Agent
offering, depending on the type of transaction. For all
transactions that cannot be completed on the IVR, Phone Banker
assisted

services are available. Following are the services offered- report loss of your ATM/
DEBIT/ CREDIT card, check your account balance, enquire about cheque status, order a
cheque book/account statement/stop payment of cheque etc.

c) SMS Banking: SMS banking is a form of mobile banking. It is a facility used by

some banks or other financial institutions to send messages (also called notifications or
alerts) to customer’s mobile phones using SMS messaging, or a service provided by them
which enables its
customers to perform some financial transactions using SMS.

d) Mobile Banking: Mobile banking is a service provided

by a bank or other financial institution that allows its
customers to conduct a range of financial transactions
remotely using a mobile device such as a mobile phone or
tablet, and using software, usually called an app, provided by
 the financial institution for the purpose. Mobile banking is
usually available on a 24-hour basis. The types of financial
transactions which a customer may transact through mobile
banking include

obtaining account balances and list of latest transactions, electronic bill payments, and
funds transfers between a customer's or another's accounts. Some also enable copies of
statements to be downloaded and sometimes printed at the customer's premises; and some
banks charge a fee for mailing hardcopies of bank statements.

SERVICES CALLING NUMBERS

For Account Balance Call 18002703333
For Cheque-book Request Call 18002703366
For Mini-statement Call 18002703355
For Account Statement Request Call 18002703377

APPLICATIONS OF HDFC:

PAYZAPP: HDFC BANK LTD has launched

PAYZAPP a mobile app that allows the customer to
broadly do 5 things- manage debit/ credit card details,
recharge and pay bills, use virtual card, send money
through wallet and shop. The app is available only for
HDFC BANK customers and can be downloaded from
GOOGLE PLAY STORE this app is available only for
android phone users. PAYZAPP contains a prepaid
wallet and a virtual prepaid card.

Bank customers can also store their credit or debit cards in a dematerialized form in the app
and use them for electronic payments. Customers can also send money to peers through the
app using the IMPS platform. With PayZapp, we can shop on our mobile at partner apps, buy
movie tickets, music and groceries, compare and book flight tickets and hotels, pay bills and
recharge our mobile, DTH and data card. Once the app is installed the customer is registered
with the bank, then after filling details such as full name, email-id, date of birth, etc. one has
 to create personal identification number (pin). Login Id will be the customer’s mobile
number. In order to send money through contact list on email-id one will have to first load
money in the wallet by linking either HDFC BANK debit/ credit card. The transaction
happens on Visa and Master card platforms only. Hence, to load money in wallet one will
have to provide card details and amount then one can send money to any mobile phone
number in one’s contact list or to an email-id from the wallet. Once, all the steps are

CHILLR : India’s leading private sector bank HDFC has introduced an innovative mobile
app called CHILLR.

This app has been introduced by the bank partnering with Mob
ME, a Kochi based technology firm. With this app one can send
money to any mobile phone contacts like a SMS on 24*7 basis
instantly. No information is needed of the recipient, one just
needs to follow 3 steps to access the application:

a) Choose the recipient from the list of chillr contacts.

b) Enter the amount to be transferred and a message to recipient.
c) Enter secret M-PIN & press PAY.

The recipient will instantly receive money in the bank account. Chillr is a first of its kind
application that is linked directly to the customer’s bank account, so there is no need to worry
about filling up a prepaid wallet. No password are stored on phone and it can be accessed
only with an M-PIN known to the customer alone, hence it is highly secured. At the moment
this app is available on both IOS and Android platform. It has more than 50000 download in
android play store. Maximum amount that can be sent by a single transaction is RS 5000 per
day with a maximum no. of transaction is 10. Here both the person should have their account
with HDFC bank in order to transfer money with the help of chillr application installed in the
mobile of both the persons.

HDFC Bank has launched their own digital wallet-

merchant payment service in India, which they have termed as

“The future of mobile payments” and it can be used across various
online retailer outlets. Customers can make payments for their
purchases on various websites by remembering their HDFC bank
digital wallet details. Moreover, retailers can add this additional
mode of transaction for offering the ease of making payment.
Apart from HDFC bank account holders, non HDFC bank
customers

are also eligible to apply for this service. To make it easier for merchants to accept payments
via digital wallet, HDFC has enabled Near Field Communication (NFC) based contact less
payment facility as well. Besides HDFC Bank account holders, non-HDFC bank users can
also use their Digital Wallet, making it platform independent. Highlighting the importance of
digital wallet, Parag Rao, senior EVP and Head of card payment products in HDFC said,
“Our digital wallet will enable the transaction to be completed in two steps, which
substantially cuts down the failure rate on mobile phone purchases, which is as high as
50%,”.
DIGITAL WALLET:
Digital wallets meet RBI’s 2 step verification process while making a payment; and, it is now
increasingly being used by consumers and shoppers, especially in the ecommerce
and retail segment.

WATCH BANKING: HDFC Bank is set to become the

SHARE MARKET first Indian Bank and probably
REPORT:
the fourth lender in the world to
have such an application whose
mobile banking application app will be available on the
Apple watch, to be launches in India in June 2015. HDFC
bank will offer 8-10 features commonly available on the
mobile banking app.
HDFC bank’s mobile banking app has about 75 features and those

commonly used will be available in the watch, such as balance enquiry, recharge of prepaid
mobile phones, cheque book request as well as paying utility bills.

: HDFC bank has reported an increase in their net profit of about 10,216 crore i.e. 21% as
compared to the previous year. The balance sheet size has increased to 590,503 crore i.e.
20.1% compared to the previous year, total deposit has increased to 450,796 crore that has
increased about 22.7%, total advances is 365,495 crore that has increased about 20.6%
 compared to previous years. Capital adequacy ratio is about 16.8% and tier 1 capital ratio is
13.7%, gross non-performing asset is .93% of gross advances. Total income till March 2016
was 70,973.17 crore.

TURNOVER AND PROFIT HDFC raised Rs 9,840 crore by selling shares in the domestic

offering 22 million American depository receipts (ADRs) in the US, opening the floodgates
for other companies and banks to raise funds from investors keen to bet on the India growth
story. For domestic investors, the shares were priced at the upper band of Rs 1,067 a share.
The bank raised Rs 2,000 crore through a qualified institutional placement (QIP) and Rs
7,840 crore ($1.27 billion) from US-based investors. The ADRs were priced at $56.76 each.
Bankers said the share sale received an overwhelming response from domestic investors,
with demand at four times the issue size. This was despite the fact that the shares were
offered at nominal discount of up to one per cent. Through the QIP, the bank will issue 18.7
million shares and dilute its equity 0.77 per cent. The bank plans to use the funds to boost its
capital adequacy ratio and for lending. HDFC Bank’s ADR issue was the biggest launched in
the US by an Indian entity since 2009. HDFC Bank stock closed at Rs 1,077 on the BSE, up
0.94 per cent. Analysts say investors

are betting big on the combined impact of falling inflation, a stable government, robust
consumer confidence and expectations of further interest rate cuts, which will aid
consumption and retail loan growth for Indian banks. There is lot of capital available for
investing in growth companies. HDFC Bank is the leader in the banking space and a great
growth story. There is huge appetite for good quality companies. Domestic mutual funds are
flushed with money. The global liquidity situation, too, continues to remain good,
considering the stimulus in Europe,” said V Jayasankar, senior executive director and head of
equity capital markets, Kotak Investment Banking. HDFC Bank’s domestic shares were
being traded at a

12 per cent discount to its ADRs. Perhaps that was why the bank opted to carry out the
majority of its fund-raising in the US, Jayasankar said. The successful launch of HDFC
Bank’s fund-raising comes within a week of Coal India’s share sale, which raised Rs 22,600
crore. While Tata Motors is planning a Rs 7,500-crore rights issue, State Bank of India has
announced a Rs 15,000-crore rights issue. Many other companies are planning QIPs and
initial public offerings of shares. “This is the start of a bull run in India. The next big event
will be the Budget. With a pro-business government at the Centre, things will only be
positive for investors,” said an analyst.
 FIBONACCI RETRACEMENT
ANALYSIS:

SENSEX REPORT:

:
COMPETITORS OF HDFC IN DIGITAL BANKING

MAJOR DIGITIGAL BANKING COMPETITORS OF HDFC

DIGITAL BANKING- PROCESS/ The two-three most promising areas where
CONTRIBUTION:
digital

advances could revolutionize the customer experience are artificial intelligence and
personalization. Internet of Things is another area where some form of banking transactions
could help enable transaction banking. HDFC bank has undertaken several initiatives to change
the way the relationship works between the bank and customers. HDFC has undertaken steps on
lending, payments and transactions, communication, and data analyses in terms of training our
employees to understand how banking works in the digital world. All of these offerings are
meant to ease the way the customer interacts with the bank. HDFC has been closely monitoring
trends that have emerged in the financial technologies and startup space to keep looking for ideas
how we can improve our offerings. HDFC is working with a lot of fintech startups to bring in
solutions that we can offer to our customers. The impact of these initiatives is showing. Ten
years ago, the share of Internet and mobile banking transactions [as a % of total transactions]
stood at 13 percent. In FY13, it stood at 44 %, in FY14, it was 55 %. In FY15, the number was at
63 %. Last fiscal, it has gone up to 71 %. The share of branch transactions today has gone down
to 11 %. HDFC launched the 10-second personal loan where pre-approved customers get
fundscredited into the bank accounts within 10 seconds of filling up their applications digitally.
That was setting a benchmark of digital. HDFC also introduced a recharge-on-missed-call
feature that allows our customers to recharge their prepaid mobile phones on the go.

CONTRIBUTION OF DIGITAL BANKING SERVICES AT HFDC:

was working as a summer intern with“HDFC BANK LTD” for a period of 2 months. The field
experience helped me to develop the quality of analyzing, observing, and participating which
helped me to guide the customer about digital banking and its uses. I could also ascertain the
effect of such initiative of HDFC bank on their revenue and whether the bank is successful in
transforming itself to a completely digital platform. I would like to recommend for the
improvisation of the bank they could make in the successful implementation of digital banking in
terms of technology to be used, security to be provided and how to persuade the existing and
potential customers to shift towards digital banking. The customers should be aware of the
digital banking applications introduced by the bank by giving them a demo through the digital
banking kiosk present in the branch and deviating them towards them using the mobile, tablets to
perform the various type of banking transactions like opening a demat account, paying of bills,
applying for personal or automobile loan, opening of FD/RD without even visiting the branch
through mobile/net/phone banking.
I closely observed each and every customer visiting the branch having queries regarding digital
banking or their usage. I was assigned with a task to convince at least 5 customer per day
regarding digital banking. During the period of 2 months I observed that only few customers
were ready to shift to the digital banking but majority of them are still believe that traditional
banking due to security reasons.

In two months of my internship some digital banking applications were introduced by the bank
successively like CHILLR and PAYZAPP where CHILLR is an application where one can send
money to any of the mobile phone contacts like a SMS on 24*7 basis instantly. No information is
needed of the recipient one just need to select them from one’s CHILLR contact list and enter
amount then send instant fund transfer to a friend in their phone book and also introduced of
PAYZAAP a mobile app that allows the customer to broadly do 5 things manage debit/credit
card details, recharge and pay bills, use virtual car, send money through wallet, and shop.

The outcome of digital banking is the number of customers visiting bank branch has reduced as
they are able to perform banking transaction without visiting the bank branch. This shows the
bank is successful in transforming the customers to digital banking from traditional banking.
 ANNEXURE: 1

BANKER’S QUESTIONNAIRE:

Perception towards E-Banking:

Electronic banking is a system where banking services are provided electronically to Bank
customers and it has changed the way banking business is done. E-banking, means delivering of
banking service, through the use of electronic channels like computers, mobiles, ATMs,
television and other electronic devices.

Please tick your response in the space provided. In all such cases where more than one response
is necessary under the same question, please tick as many responses as are applicable.

1. In general, what do you feel about e-banking as a new system of delivering

banking services?

a) Vital b) Essential c) Desirable d) Cannot say exactly

e) Any other (please specify)

-------------------------------------------------------------------------------------------------------------

2. Which of the following e-banking services are provided by your bank?

a) ATM banking b) Telephone banking c) Credit cards d) Debit cards

e) Mobile banking f) P.C. banking g) Electronic transfers (EFTs)
h) Internet banking

---------------------------------------------------------------------------------------------------------------------

3. How do you let your customers know about e-banking services you
provide? [tick applicable one(s)]

a) Through bank officials b) Advertisements in print media c) Television and

radio Advertisements d) Online advertisements e) Through their
employers f) Any other (please specify)
---------------------------------------------------------------------------------------------------------------------
4. Indicate by ticking the services offered through ATM in your bank.

a) Withdraw of cash b) Deposit of cash and cheque c) Balance check d)

Requesting
cheque book e) Paying any utility bills f) Check bank statement g) Order
cheque book

h) Transfer of funds
----------------------------------------------------------------------------------------------------------------
5. What are the methods you use to encourage your bank clients to use e-
banking? (tick as many as applicable)

a) Make them cheaper by reducing charges and fees.

b) Incentives to e-banking users
c) Intensive advertisement d) contacting every customer personality
e) keep on reminding customers through written communication
f) Demonstrating on how to use services to them
g) Giving them guarantee of security and privacy
h) Giving the technological knowledge to customers through seminars.

i) The cost of adopting is very high.

ii) Traditional banking still remains the best option for our clients.

iii) The services are simply too expensive for the lower and consumer.

iv) No difference in profitability as compared to branch banking.

v) There is technological illiteracy among bankers.

vi) Lack of infrastructure is the main hurdle/problem.

vii) Many banks fear cross-border risk since the laws are different from one country to
another.

viii) Many banks fear because there are no proper laws and regulations regarding E-banking.

ix) Many banks fear risk management challenges like reputation risk, operational and capital
adequacy risk.

x)Security concerns is the most discouraging factor in using e-banking because customer feel
insecure as they do not now where electronic transaction pass and whom they meet.

xi) Most of the customers do not know how to use and are not aware of some e-banking
services provided by their banks.
xii) E-banking services generally do not have privacy of customer’s information.

xiii) Most of the customers prefer face to face banking.

xiv) Most of customer’s banks are providing few e-banking services and some have not yet
adopted e-banking services.

xv) Bankers charge high fees on using e-banking services.

xvi) Customers fear using e-banking because electronic crimes are arising greatly.

7. Why do you think it is important to adopt e-banking services? Please give your opinion to the
following statements in the appropriate column.

Statement:

a. Strongly agree (1)

b. Agree (2)

c. Neutral (3)

d. Disagree (4)

e. Strongly Disagree (5)

i) E-banking services are generally faster than traditional banking which helps customers to avoid
long queue in banking halls.

ii) There is high degree of convenience in e-banking as you can access the banking services
from anywhere.

iii) E-banking services are more profitable than traditional banking services.
iv) E-banking services are generally cheaper than traditional banking at the branch as the
cost of providing them is less.

v)Using e-banking services are more prestigious than queuing at the bank halls.

vi) Adopting e-banking helps in retaining more customers.

vii) E-banking may help in avoiding many risks like robbery in physical handling of large
amount of cash.
PART (III)

PERSONAL INFORMATION OF THE RESPONDENT

1. Name of the respondent:

2. City: State/Province:

Country: 3.i) Bank: ii)

Branch:

iii) Type of bank: (a) Private bank (b)Public bank (c)Foreign bank

4. Size of bank: (a) Small size (b) Medium size (c)Large size

5. Working experience:
a) Less than 5 years
b) 6 to 10 years
c) 11 to 15 years
d) 16 and above years.

6. Position in bank hierarchy or designation:

a) Branch Manager
b) Head of department
c) Accounts officers
d) others.

7. Educational qualification: a) High school b) Graduate c) Post Graduate

 ANNEXURE: 2

CUSTOMER’S QUESTIONNAIRE:

Perception towards E-banking: An analysis on the customer perception:

Please tick your response in the space provided. In all such cases where more than one responses
are necessary under the same question, please tick as many responses as are applicable.

1. Do you like E-banking

a. Yes
b. No

--------------------------------------------------------------------------------------------------------------

2. In general, what do you feel about e-banking as a new system of delivering banking
services?

a) Vital

b) Essential

c) Desirable

d) Cannot say exactly

e) Any other (please specify)

---------------------------------------------------------------------------------------------------------------------
2. i) Tick which bank you preferred…
a. Icici
b. Sbi
c. Sbh
d. Axis
e. Union bank
f. Hdfc
2. ii) How did you come to know about E-Banking services? (tick as many as applicable)

a) From bank officials

b) Advertisement in print media

c) Television and radio Advertisement

d) On line advertisement

e) From your family members

f) From your friends

g) Any other (Please specify)

------------------------------------------------------------------------------------------------------------------

2. iii) Why this bank

a. Service is good
b. They provide security
c. Cheaper service fees.

------------------------------------------------------------------------------------------------------------------

3.i) Which among the following e-banking services are provided by your bank? (Tick as
many as applicable)

a) ATM

b) Internet banking

c) Mobile banking

d) Phone

e) Internet banking

f) Debit cards

--------------------------------------------------------------------------------------------------------------------
3.ii) Which one(s) among the e-banking services you have personally adopted?

a) ATM

b) Internet banking

c) Mobile banking

d) Phone

e) Internet banking

f) Debit cards

g) Credit cards

---------------------------------------------------------------------------------------------------------------------

3.iii) Since when have you been using e-banking services?

a) Less than 1 year

b) 1-2 years

c) 2-3 years

d) 3-5 years

e) More than 5 years

----------------------------------------------------------------------------------------------------------------------------------------

4. Rank the following channels from most preferred to less prefer in numerical number 1 to
8.
i) Automatic Teller Machine (ATMs)/ debit cards
ii) Home/office/PC banking
iii) Branch (face to face) banking
iv) Telephone banking
v) Mobile banking
vi) Internet banking
vii) Any other (please specify)

---------------------------------------------------------------------------------------------------------------------
5.i) I use ATM facility for:

a) Depositing cash
b) Withdrawal of cash
c) Request cheque book
d) Paying utility bills like (Water, Phone bills)
e) Order cheque book
f) Transfer of funds
g) Check account balance

---------------------------------------------------------------------------------------------------------------------

5.ii) How long have you been using ATM facility?

a) Less than 1 year
b) 1-2 years
c) 2-3 years
d) 3-5 years
e) More than 5 years

---------------------------------------------------------------------------------------------------------------------
6. I use bank website/internet banking to: tick the applicable one(s)

a)Know bank products advertised

b) Check my account balance

c) Transfer of funds

d) Check bank statement

e) Purchase bank product e.g. account opening

f) Order cheque book

g) Stop cheque payments

h) Change passwords

i) After sale-service (e.g. E-mail enquiries)

j) Any other (Please specify)

---------------------------------------------------------------------------------------------------------------------
7. Mobile banking is useful electronic channel (Tick the appropriate)

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree
---------------------------------------------------------------------------------------------------------------------

8. I use mobile banking for the following purpose(s)

a) Balance enquiry

b) Requesting cheque book

c) Know last few transactions

d) Request bank statement

e) Stop payment of cheques

f) To make payments of bills

g) Any other (please specify)

---------------------------------------------------------------------------------------------------------------------

9. Why do you think is it important to adopt E-banking services?

Statement:
a. Strongly agree (1)
b. Agree (2)
c. Neutral (3)
d. Disagree (4)
e. Strongly disagree (5)
(i) E-banking services are generally faster than traditional banking.
(ii) E-banking services have no time limit since I can use them at any time of the day.
(iii) There is high degree of convenience in accessing E-banking services.
(iv) E-banking channels are easier to use than traditional channels.
(v) E-banking services are generally cheaper than traditional banking at the branch.
(vi) Using e-banking services is more prestigious than queuing at the bank halls.

10. What are the possible reasons why E-banking services have not been adopted by many
customers?
Statement:
a. Strongly agree (1)
b. Agree (2)
c. Neutral (3)
d. Disagree (4)
e. Strongly disagree (5)

(i) Security concerns is the most discouraging factor in using e-banking services.

(ii) Most of the customers are not aware of e-banking services provided by their banks.
(iii) E-banking services generally do not have privacy of customer’s information.
 CONCLUSION
Electronic banking, which is the modern technology which is offered by the banks to their
customers so that they can conveniently conduct their banking transactions at a time that suits
them and can access their bank account for 24 hours a day and 7 days a week. Latest and better
ways of customer services are essential for the growth of the bank and for the banking system as
a whole. The effect of e-banking on worldwide banking system is to augment or facilitate
existing banking and payment mechanisms, primarily by making many transactions cheaper,
faster, more secure, and more convenient.Moreover, the growth of information technologies in
the world has been phenomenal as well. Because of these technologies, banks are being able to
reach their customers anywhere at any time. Compared to banks abroad, Indian banks offering
online services still have a long way to go. For online banking to reach a critical mass, there has
to be sufficient number of users and the sufficient infrastructure in place so as to develop the
concept of digital banking in the Indian market, which is gradually being accepted by the people
of the country as a whole.

Even, in a country like India, there is a need for providing better and customized services to the
customers. Banks must be concerned about the attitudes of customers with regard to acceptance
of online banking. The importance of security and privacy for the acceptance of internet
banking is a very important issue and it was found that people have weak understanding of
internet banking, although they are aware about risk. The present study shows that customers
are more reluctant to join new technologies or methods that might contain little risk. Hence,
banks should design the website to address security and trust issues as well.

In case of the financial institutions which have already deployed the E-banking, according to
them there is a need of paradigm shift in terms of perception by the public. The mindset of
people in India is urging of changing. It was until very recently that mobile banking and phone
banking were not being widely accepted, but then they became the killer applications of E-
commerce. In this way E-banking would overcome the traditional business model of retail
banking and dramatically reduce the processing and traditional cost.

To sum up, opportunities in e-banking are immense but he only need is to explore them. The
nature of banking services may still be the same but the way in which they are being offered has
been changed dramatically. Banks must realize the seriousness of challenges ahead and develop
a strategy that will enable them to leverage the opportunities presented by e-banking. E-banks
needs to shift now from product centric to customer centric i.e. to design services according to
the needs dreams and expectations of the customers.

Opportunities and challenges offered by e-banking can only be met fruitfully if banks assemble
different dimensions services including banking, broking, insurance, channel delivery, sales
culture, back office processes and knowledge management under one corporate name. Most of
the market is still untapped in India especially in rural areas. There is a lot of scope for banking
institution to expand their e-banking services to have a more sophisticated customer base. ICT
infrastructure facilities are also not well developed and the banks are unable to extend the e-
banking services, therefore, good infrastructure need to be developed.

RECOMMENDATION:
Embracing a fully digital strategy requires banks to modernize end-to-end, and to adopt a
customer centric approach.

The following recommendations can help banks in general and specifically HDFC Bank to
ensure that their move to digital banking will result in greater customer satisfaction and long-
term profitability and business.

a) Manage and master the information that’s vital to digital banking. For banks to create new
sources of value, they need to understand the data that makes up their customers’ Code Halos,
each individual’s unique virtual identity.

b) They should act strategically. Providing a cohesive, cross-channel experience requires an

enterprise-wide approach.

c) Calculate the cost of not adopting digital banking: Lost opportunity, customer attrition, and
stagnation in new-customer growth and product sales.

d) Evaluate options carefully. Digital banking isn’t one-size-fits-all. Banks need to select
the options that best fit their organisation and strategy.

e) Create an enterprise roadmap. A roadmap is a key prerequisite for implementing a digital

banking program.

f) Banks should also ensure that online banking is safe and secure for financial transaction
similar to the traditional banking.

g) Banks should organize seminar and conference to educate the customer regarding uses of
online banking as well as security and privacy of their accounts.

h) Some customers are hindered by lack of computer skills. They need to be educated on basic
skills required to conduct online banking.

i) Banks must emphasize the convenience that online banking can provide to people, such as
avoiding long queue, in order to motivate them to use it.

j) Banks must emphasize the cost saving that online can provide to the people, such as reduce
transaction cost by use of online banking.
k) HDFC Bank should introduce various types of applications in mobile banking when
compared to its competitors in order to attract more clients that would increase their revenue
generation in terms of business in digital banking.

l) The bank should also try to increase the customer base and also attract the low income group
of the population by reducing a minimum balance to be maintained in the savings account from
Rs. 10000 a month to Rs. 2000, which will involve more participation from the feeble
population at large to become a customer of the bank and they would also actively participate in
the digital banking services of the bank on being educated about the service.

m) The present focus of the bank is majorly on urban customers to increase the use of digital
banking among them but it should also focus on rural customers as there is an increasing trend
observed in the number of rural population accessing both internet banking and mobile banking
which would result in growth of revenue and business of HDFC Bank in digital banking.

n) Banks need to think ‘out-of-the-box’ where box is the representation of all the tested, tried
things that always worked in the past. They would have to think outside the boundaries of
current practices, products, services, organizations, and industries as they fall behind the
treadmill of faster and more rapid pace of change. The new business environment thus puts a
premium on creativity and innovation more than ever before. This calls for innovative solutions.
Banks may have to go for mobile banking services for a cluster of villages. Alternatively,
technological institutions have to come out with low-cost, self-service solution/ ATMs. The
government and the RBI should actively support such research efforts.

o) Banks should initiate schemes based on fringe benefits in the form of additional bonus, free
annual trips, valuable gift items, awards etc. for the employee who are very friendly,
experienced and aware with Online Banking Service. (OBS)

p) Banks can introduce OBS in two modes such as Beginner and Expert Mode to reduce troubles
of employees while providing guidance about OBS as well as to reduce troubles of customers
while availing OBS. The Beginner Mode should consist of the Help option which can guide the
users who are not much familiar with OBS to proceed for further facilities in a correct manner
with the details of fees imposed on different types of OB facilities. Likely, the other mode
compromise of the Expert Mode in which the person who is friendly with OBS can directly
operate or go through the transaction options to save his/her time. It increases customer’s
friendliness, awareness and also increases quality of OBS.

q) Banks should introduce transparent fee structure imposed by them on the use of OBS in
order to maximize accessibility, frequency of OBS and to make OBS more advantageous in
the form of cost effectiveness for the customers.

r) Strong anti hacking system has to be tailored to not only strengthen online user’s
authentication for the vast Online Banking system but also to defend the theft of customer’s
privacy from internet hackers.
s) Banks can collaborate with government agencies to expand their outreach exponentially and
provide doorstep banking by facilitating various advanced facilities such as apply for passport,
visa, driving license, pan card etc.

t) Banks should pay attention to reach out their female customers who-in a majority of cases-
would have less experience and willingness to avail OBS by facilitating direct shopping
through Online Banking with some special discounts over a particular range. So that
transaction frequency as well as amount that has been transact through Online Banking will
increase and results to the increment of bank’s productivity.
BIBLIOGRAPHY & REFRENCE

HDFC NETBANKING.COM

SLIDESHARE.IN

WIKIPEDIA

GOOGLE