CHAPTER 1- INTRODUCTION

COMPANY HISTORY: The Housing Development Finance Corporation Limited (HDFC)

was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the 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.

PROMOTER

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

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of
banking services for target retail and wholesale customer segments, and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed to
maintain the highest level of ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank's business philosophy is based on four core values -
Operational Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital
is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about
17.6% of the equity is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional
Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock
Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

DISTRIBUTION NETWORK

HDFC Bank headquartered is in Mumbai. The Bank at present has an enviable network
of over 1229 branches spread over 444 cities across India. All branches are linked on an online
real-time basis. Customers in over 120 locations are also serviced through Telephone Banking.
The Bank's 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 the centers where the NSE/BSE has
a strong and active member base. The Bank also has a network of about over 2526 networked
ATMs across these cities. Moreover, 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.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank's branches have online connectivity, which enables the
bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines
(ATMs). The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's business
is supported by scalable and robust systems which ensure that our clients always get the finest
services we offer. The Bank has prioritized its engagement in technology and the internet as one
of its key goals and has already made significant progress in web-enabling its core businesses. In
each of its businesses, the Bank has succeeded in leveraging its market position, expertise and
technology to create a competitive advantage and build market share.

HDFC BANK business strategy emphasizes the following:

Increase market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy focusing on quality and not on quantity and delivering
high quality customer service. Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating costs. Maintain current high
standards for asset quality through disciplined credit risk management.Develope innovative
products and services that attract the targeted customers and address inefficiencies in the Indian
financial sector. Continue to develop products and services that reduce bank’s cost of funds.
Focus on high earnings growth with low volatility.

PRODUCT SCOPE:

HDFC Bank offers a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises. For
individuals, the company has a range accounts, investment, and pension scheme, different types
of loans and cards that assist the customers. The customers can choose the suitable one from a
range of products which will suit their life-stage and needs. For organizations the company has a
host of customized solutions that range from funded services, Non-funded services, Value
addition services, Mutual fund etc. These affordable plans apart from providing long term value
to the employees help in enhancing goodwill of the company. The products of the company are
categorized into various sections which are as follows:

 Accounts and deposits

 Loans
 Investments and Insurance
 Forex and payment services
 Cards
 Customer center

PRODUCTS AND SERVICES

1. PERSONAL BANKING SERVICES
A. Accounts & Deposits
Savings Account

 Regular Savings Account

 Savings Plus Account
 Savings Max Account
  Senior Citizens Account
 No Frills Account
 Institutional Savings Account
 Payroll Salary Account
 Classic Salary Account
 Regular Salary Account
 Premium Salary Account
 Defence Salary Account
 Kid's Advantage Account
 Pension Saving Bank Account
 Family Savings Account
 Kisan No Frills Savings Account
 Kisan Club Savings Account
Current Account
 Plus Current Account
 Trade Current Account
 Premium Current Account
 Regular Current Account
 Apex Current Account
 Max Current Account
 Reimbursement Current Account
Fixed Deposit
 Regular Fixed Deposit
 Super Saver Account
 Sweep-in Account
Recurring Deposit
Demat Account
Safe Deposit Locker
B. Loans
 Personal Loans
  Home Loans
 Two Wheeler Loans
 New Car Loans
 Used Car Loans
 Overdraft against Car
 Express Loans
 Loan against Securities
 Loan against Property
 Commercial Vehicle Finance
 Working Capital Finance
 Construction Equipment Finance

C. Investments & Insurance

 Mutual Funds
 Insurance
 Bonds
 Financial Planning
 Knowledge Centre
 Equities & Derivatives
 Mudra Gold Bar

D. Forex Services
 Trade Finance
 Traveler’s Cheques
 Foreign Currency Cash
 Foreign Currency Drafts
 Foreign Currency Cheque Deposits
 Foreign Currency Remittances
 Forex Plus Card
E. Payment Services
 Net Safe
 Prepaid Refill
 Bill Pay
 Direct Pay
 Visa Money Transfer
 E-Monies Electronic Funds Transfer
 Excise & Service Tax Payment

F. Access Your Bank - One View

 Insta Alerts
 Mobile Banking
 ATM
 Phone Banking
 Branch Network

G. Cards
 Silver Credit Card
 Gold Credit Card
 Woman's Gold Credit Card
 Platinum plus Credit Card
 Titanium Credit Card
 Value plus Credit Card
 Health plus Credit Card
 HDFC Bank Idea Silver Card
 HDFC Bank Idea Gold Card

2. WHOLESALE BANKING SERVICES

 Funded Services
 Non Funded Services
  Value Added Services
 Internet Banking
 Clearing Sub-Membership
 RTGS – sub membership
 Fund Transfer
 ATM Tie-ups
 Corporate Salary a/c
 Tax Collection
 Financial Institutions
 Mutual Funds
 Stock Brokers
 Insurance Companies
 Commodities Business
 Trusts

3. NRI BANKING SERVICES

 Rupee Saving a/c
 Rupee Current a/c
 Rupee Fixed Deposits
 Foreign Currency Deposits
 Accounts for Returning Indians
 Payment Services
 Net Safe
 Bill Pay
 Insta Pay
 Direct Pay
 Visa Money
 Online Donation
 Remittances
MILESTONES IN THE HISTORY

HDFC Bank began its operations in 1995 with a simple mission to be a "World-class Indian
Bank". They realized that only a single-minded focus on product quality and service excellence
would help us get there. Today, they are proud to say that they are well on our way towards that
goal. It is extremely gratifying that their efforts towards providing customer convenience have
been appreciated both nationally and internationally.

QUALITY POLICY

SECURITY: The bank provides long term financial security to their policy. The bank does this
by offering life insurance and pension products.

TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence, it will
aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, the bank offers a range of
innovative products to meet these needs.
INTEGRITY CUSTOMER CENTRIC PEOPLE CARE “ONE FOR ALL AND ALL FOR
ONE” TEAM WORK JOY AND SIMPLICITY

CHAPTER 3- RESEARCH OBJECTIVES AND SCOPE OF RESEARCH PROJECT

PROBLEM DEFINATION:
 Personal Banker were with good background human being and through rigorous process of
recruitment but still not able to perform up to the expectation level of company, HR is not able to
sort out the problem why the performance is not coming even after giving the full marketing and
operational support. The communication technique and dealing with the customers is also a
problem to the personal banker.

OBJECTIVES OF RESEARCH PROJECT:

PRIMARY OBJECTIVES:

 To acquire new customer by convincing them and to promote the benefits of those which
are provided by the bank.
 To find the different way of convincing customers.
 To study brand image of the bank.
 To increase the business of the bank.

SECONDARY OBJECTIVES:

 To determine the need and purpose of a personal banker.

 To understand the deciding criteria for people to become a personal banker.
 To offer suggestions based upon the findings.

PRODUCT SCOPE:

Studying the increasing business scope of the bank. Market segmentation to find the potential
customers for the bank. To study how the various products are positioned in the market.
Corporate marketing of products. Customers’ perception on the various products of the bank.

CHAPTER 4- RESEARCH METHODOLOGY AND LIMITATIONS

 All the findings and conclusions obtained are based on the survey done in the working
area within the time limit. I tried to select the sample representative of the whole group during
my summer training. I have collected data from people linked with different professional at
Gorakhpur.

RESEARCH PLAN:

PRELIMINARY INVESTIGATION:

 In which data on the situation surrounding the problems shall be gathered to arrive at.
 The correct definition of the problem. An understanding of its environment.

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the problem. By
analyzing the secondary data, the study aim is to explore the short comings of the present system
and primary data will help to validate the analysis of secondary data besides on unrevealing the
areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point

information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.
In questionnaires open ended and closed ended, both the types of questions has been used.

COLLECTION OF DATA:
SECONDARY DATA: It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, news papers, magazines, management books,
preserved information in the company’s database and website of the company.

PRIMARY DATA: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary
data was direct personal interview through a structured questionnaire.

SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to
take sample from the universe to know about its characteristics.

 Sampling Units: Different professionals. Chartered Accountants, Tax Consultants,

Lawyers, Business Man, Professionals and House Wives of Gorakhpur.
 Sample Technique: Random Sampling.
 Research Instrument: Structured Questionnaire.
 Contact Method: Personal Interview.

SAMPLE SIZE: My sample size for this project was 50 respondents. Since it was not possible
to cover the whole universe in the available time period, it was necessary for me to take a sample
size of 50 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT: The mode of collection of data

will be based on Survey Method and Field Activity. Primary data collection will base on
personal interview. I have prepared the questionnaire according to the necessity of the data to be
collected.

RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about the different marketing aspects of the
Financial Consultant within 60 days. As stipend, money was not given it was difficult to
continue the project work. All the work was limited in some limited areas of Gorakhpur so the
findings should not be generalized. The area of research was Gorakhpur and it was too vast an
area to cover within 60 days.

CHAPTER 6- CONCLUSIONS AND SUGGESTIONS

6.1 CONCLUSIONS:

HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good
number of employees on board and is recruiting personal banker heavily to take the headcount to
many more. It is on the brim of increasing its customers through its attractive schemes and offer.

The project opportunities provided was market segmentation and identifying prospective
customers in potential geographical location and convincing them to attract more customers so
that new business opportunities of the bank can be explored. Through this project, it could be
concluded that people are not much aware about the various products of the bank and many of
them not interested to open an account, to invest money at all. services was considered as
unsought good which require hard core selling, but in changing trend in income and people
becoming financially literate, the demand for banking sector is increasing day by day.

So, at last the conclusion is that there is tough competition ahead for the company from its major
competitors in the banking sector. Last but not the least I would like to thank HDFC Bank for
giving me an opportunity to work in the field of Marketing and Operation. I hope the company
finds my analysis relevant.

SUGGESTIONS:

Finally some recommendations for the company are as fallows:-

 To make people aware about the benefit of becoming a customer of HDFC Bank,
following activities of advertisement should be done through
1. Print Media. 2. Hoarding & Banners.
3. Stalls in Trade Fares 4. Distribution of leaflets containing details information.

Other facilities must be provide to the customer:

 The bank should provide life time valid ATM card to all its customers.
 Minimum balance for savings account should be reduced from Rs 10000 to Rs 1000, so
that people who are not financially strong enough can maintain their account properly.
 The company should provide a pass book to all its customers.
 Make people understand about the various benefits of its products.
 Company should organize the program in the society, so that people will be aware about
the company and different products of the bank.
 Company should open more branches in different cities.

CHAPTER 7- LIMITATIONS

Every work has its own limitation. Limitations are extent to which the process should not
exceed. Limitations of this project are:
 The project was constrained by time limit of two months.
 Mindset of people may very depending upon their age, gender, income etc.
 Getting appointment from the concern person was very difficult.
 People mind set about the survey was obstacles in acquiring complete Respondents were
very busy in their schedule. So it was very time consuming for information & positive
interaction, them to answer all the questions properly.