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TOPIC – MARKET POTENTIAL

SURVEYOF HDFC

NAME – VIVEK GOYAL

COURSE - MMM

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SUMMER INTERNSHIP PROJECT

Carried out at

“HDFC BANK, PUNE”

Submitted towards the partial fulfilment of

MBA (Autonomous)+MMM(2006-08)

From:

Vishwakarma Institute of Management

Submitted by: Vivek Goyal

Project Guide: Faculty Guide:


Mr. Reloj Balakrishnan Mr.
Corporate Sales Manager
(Salary Account)
HDFC BANK, PUNE

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WE UNDERSTAND YOUR WORLD

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Contents
1. Acknowledgement 4
2. Declaration 5
3. Objective 6
4. Rationale for undertaking the research 6
5. Introduction 8

a. Organization Scenario

b. Organization Profile
6. Objective of the Study 23
7. Methodology 24
8. Scope of the Study 24
9. Project Analysis 35
9. Detailed Findings and Observations 60
11. Summary of Conclusion 63
12 Questionnaire 65
13.. Bibliography 67

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ACKNOWLEDGEMENT

I feel great pleasure to thank

“Mr. Raja Upadhayay (State Sales Head)”

The coordinator of my summer project at the organization. Without his support &

Guidance it would not have been possible to complete my summer project.

The word falls short to show my gratitude to

“Mr.Reloj Balakrishnan (Sales Manager)”

For giving me the exposure to the industry and giving in depth knowledge of

various marketing strategies applied in the dynamic business environment.

I am deeply thankful to Mr.Shikhar Sharma, Mr.Rajneesh Kohli, Ms.Nabinita,and

Mr.Mahesh Dekhane under whose guidance and support the project was carried out at

the bank.

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Sincere thanks expressed to all staff members of Marketing Department, for

encouragement, heartily cooperation and valuable guidance.

This is a Summer Internship report on training at HDFC BANK, PUNE. The

training period was of 60 days. It started on 21-05-2007 and completed on 20-07-2007.

I would like to thank all our professors that have helped me in learning the importance

of various aspects of management. I would also like to thank all the individuals that

helped me during the course of the project.

Declaration

I, Vivek Goyal, student of PGDM+MMM (2006 – 2008), VIM, hereby declare that this

project report titled “Research & Analysis of HDFC BANK in Corporate Salary

Account” has been originally prepared by me and pertains to my original work done

during the summer training tenure, for “HDFC BANK, PUNE”. One copy of this

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project report has been submitted to HDFC BANK and another to VIM-PUNE, other

than that this report has not been submitted to any other organization.

Vivek Goyal

PGDM+MMM (2006 - 2008)

VIM, PUNE

OBJECTIVE:

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“MARKET POTENTIAL SURVEY OF

HDFC BANK IN CORPORATE SALARY ACCOUNT”

Rationale for undertaking the research:-

This study was chosen keeping in view the interests of the company as well as the

summer trainee. The target aimed by the research was “Research & Analysis of HDFC

BANK in Corporate Salary Account” in banking sector in Pune region by interviewing

of various companies. This meant a lot of exposure for the trainee as and when he

would interact with different people with different requirements. Also both the

organization and the trainee will know the trends in sector.

The survey so done may form the basis of plan of action by HDFC BANK. It will help

them to know where to canalize their resources at present so as to achieve optimum

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results. Also knowing which schemes being used by the competitors mostly, the

organization can decide which activities to be done to get maximum salary accounts.

Executive Summary

A new private sector Bank promoted by housing Development Corporation Ltd.

(HDFC), a premier housing finance company. The bank is the first of its kind to receive

an in-principle approval from the RBI for establishment of a bank in the private sector.

Certificate of Commencement of Business was received on 10th October 1994 from

RBI and the bank was opened by the then finance minister Mr. Manmohan Singh. The

Bank transacts both traditional commercial banking as well as investment banking.

HDFC, the promoter of the bank has entered into an agreement with National

Westminister Bank Pc. and its subsidiaries (Natwest Group) for subscribing 20% of the

banks issued capital and providing technical assistance in relation to the banks proposed

banking business. The Bank opened its first branch in Ramon House at Church gate,
th
Mumbai on January 16 1995. Subsidiaries and associate companies of HDFC include

HDFC Bank HDFC Mutual Fund, HDFC Standard Life Insurance, HDFC Realty

HDFC Chub General Insurance Company Ltd. Intel net Global Services Ltd. and Credit

information Bureau (India) Limited. HDFC Bank offers various products for retail

customers. It provides the customers with Savings and Current Accounts, Fixed

deposits loans and credit and debit cards. It also provides with Investment, payment,

Forex and insurance services. HDFC Bank has gone on to win several awards right

from the best bank in private sector to best bank in the country. It has received awards

from NASSCOM, Economic Times, Business Today, Forbes Global, Business World,

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Asian Banker’s Excellence award and many others. HDFC Bank is one of the major

players in the corporate accounts segment in the country. In PUNE there are three major

players in the corporate account segment; viz. Citibank, ICICI Bank and HDFC Bank.

PUNE is known as the one of the Information Technology hub of India, and therefore

these IT equipped organizations and software companies and also some small corporate

were the focus of the study. The study was about these organizations and the

relationship that they share with the bank that provides them with the corporate

accounts for their employees. The study was also to check the willingness of the

organizations to go to a new bank if the bank provided them with better products and

services.

HDFC – The Organisation

Background:

HDFC was incorporated in 1977 with the primary objective of meeting a social

Need – that of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share capital of

Rs. 100 million.

Business Objectives:

The primary objective of HDFC is to enhance residential housing stock in the

Country through the provision of housing finance in a systematic and professional

Manner, and to promote home ownership. Another objective is to increase the flow of

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resources to the housing sector by integrating the housing finance sector with the

overall domestic financial markets.

Organisational Goals:

HDFC’s main goals are to:

a) Develop close relationships with individual households,

b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions,

d) provide consistently high returns to shareholders, and

e) To grow through diversification by leveraging off the Existing client

Subsidiary and Associate Companies

The subsidiaries of HDFC consists of

1. HDFC Bank

2. HDFC Mutual Fund

3. HDFC Standard Life Insurance Company

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4. HDFC Realty

5. HDFC Chubb General Insurance Company Limited.

6. Intel net Global Services Limited

7. Credit Information Bureau (India) Limited

8. Other Companies Co – Promoted by HDFC

i. HDFC Trustee Company Ltd.

ii. GRUH Finance Ltd.

iii. HDFC Developers Ltd.

iv. HDFC Venture Capital Ltd.

v. HDFC Venture Trustee Company Ltd

vi. HDFC Securities Ltd.

vii. HDFC Holding Ltd.

viii. Home Loan Services India Pvt. Ltd.

HDFC BANK

The Organisation.

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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

link in the private sector, as part of the RBI's liberalisation 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 on 16th January 1995. In the year 1998

HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its

clearing bank

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

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The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up

capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's

equity and about 19.4% of the equity is held by the ADS Depository (in respect of the

bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held

by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.

The shares are listed on the 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".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged

with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of

India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75

shares of Times Bank. The acquisition added significant value to HDFC Bank in terms

of increased branch network, expanded geographic reach, enhanced customer base,

skilled manpower and the opportunity to cross-sell and leverage alternative delivery

channels.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network

of over 531 branches spread over 228 cities across India. All branches are linked on an

online real-time basis. Customers in over 120 locations are also serviced through

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Telephone Banking. The Bank s expansion plans take into account the need to have a

presence in all major industrial and commercial centres 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 centres where the NSE/BSE have a strong and active

member base.

The Bank also has a network of about over 1054 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

Management

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr.

Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director,

Mr. Aditya Puri, has been a professional banker for over 25 years and before joining

HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board. Senior banking professionals with

substantial experience in India and abroad head various businesses and functions and

report to the Managing Director. Given the professional expertise of the management

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team and the overall focus on recruiting and retaining the best talent in the industry, the

bank believes that its people are a significant competitive strength.

The management consists of the Chairman Mr Jagdish Kapoor and 9 other Directors

that assist him in achieving objectives of the bank.

They are

From top left to bottom right (first top row)

1. Mr. Jagdish apoor 2. Mr. Aditya Puri

3. Mr. Keki M. Mistry 4. Mr. Vineet Jain

5. Dr. Venkat Rao Gadwal 6. Mrs. Renu Karnad

7. Mr. Arvind Pandey 8. Mr. Bobby Parikh

9. Mr. Ranjan Kapur 10. Mr.Ashim Samanta

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Corporate Governance

HDFC Bank recognizes the importance of good corporate governance, which is

generally accepted as a key factor in attaining fairness for all stakeholders and

achieving organizational efficiency. This Corporate Governance Policy, therefore, is

established to provide a direction and framework for managing and monitoring the bank

in accordance with the principles of good corporate governance.

Code of Corporate Governance

The bank believes in adopting and adhering to the most superior corporate governance

practices and continuously benchmarking itself against each such practice in the

industry. The bank understands and respects its fiduciary role and responsibility to

shareholders and continually strives to full fill their expectations. We strongly believe

that the best board practices, transparent disclosures and shareholder empowerment are

necessary for creating shareholder value.

The bank has infused the philosophy of corporate governance in all its activities. The

philosophy on corporate governance is an important tool for shareholder protection and

maximization of their long term values. The cardinal principles such as independence,

accountability, responsibility, transparency, fair and timely disclosures, credibility etc.

serve as the means for implementing the philosophy of corporate governance in letter

and in spirit.

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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.

In terms of software, the Corporate Banking business is supported by Flex cube, while

the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The systems

are open, scaleable and web-enabled.

The Bank has prioritised 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.

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RATING
Credit Rating

HDFC Bank has its deposit programmes rated by two rating agencies – Credit Analysis

& Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's

Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE,

which represents instruments considered to be "of the best quality, carrying negligible

investment risk". CARE has also rated the Bank's Certificate of Deposit (CD)

programme "PR 1+" which represents "superior capacity for repayment of short term

promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)

has assigned the "AAA (ind)" rating to the Bank's deposit programme, with the outlook

on the rating as "stable". This rating indicates "highest credit quality" where "protection

factors are very high". HDFC Bank also has its long term unsecured, subordinated (Tier

II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited.

CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch

Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the

rating as "stable". In each of the cases referred to above, the ratings awarded were the

highest assigned by the rating agency for those instruments.

Corporate Governance Rating:

The bank was one of the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced value

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creation and corporate governance practices" in future. The bank has been assigned a

'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to

wealth creation for all its stakeholders while adopting sound corporate governance

practices is the highest.

The Social Initiative:

The year 2004-05 saw HDFC making renewed efforts in fulfilling its social

commitments by way of several ongoing as well as new initiatives. The latter included

innovative financing of slum up-gradation and low-income housing projects, dialoguing

with key stakeholders on policy issues, responding to the tsunami tidal wave disaster

and staff volunteering and participation in varied community development activities.

HDFC also gained special recognition for its corporate social responsibility (CSR)

function in the form of winning The Economic Times Corporate Citizen Award for

2003-04.

Businesses:

HDFC Bank offers a wide range of commercial and transactional banking services and

treasury products to wholesale and retail customers. The bank has three key business

segments.

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Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in the

Indian corporate to the 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, 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. It is recognised as a leading provider of cash

management and transactional banking solutions to corporate customers, mutual funds,

stock exchange members and banks.

Retail Banking Services:

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 the customers through the growing branch network, as well as through

alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile

Banking.

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The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank

Plus and the Investment Advisory Services programs have been designed keeping in

mind needs of customers who seek distinct financial solutions, information and advice

on various investment avenues. The Bank also has a wide array of retail loan products

including Auto Loans, Loans against marketable securities, Personal Loans and Loans

for Two-wheelers. It is also a leading provider of Depository Participant (DP) services

for retail customers, providing customers the facility to hold their investments in

electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the MasterCard Maestro debit card

as well. The Bank launched its credit card business in late 2001. By September 30,

2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The

Bank is also one of the leading players in the "merchant acquiring" business with over

50,000 Point of- sale (POS) terminals for debit/credit cards acceptance at merchant

establishment.

Treasury:

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalisation of the financial markets in India, corporate need more sophisticated risk

management information, advice and product structures. These and fine pricing on

various treasury products are provided through the bank's Treasury team. To comply

with statutory reserve requirements, the bank is required to hold 25% of its deposits in

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government securities. The Treasury business is responsible for managing the returns

and market risk on this investment portfolio.

Products and Services – HDFC Bank:

Product range: The following is the product range offered at HDFC: While various

deposit products offered by the bank are assigned different names, the deposit products

can be categorised broadly into the following types. Definition of major deposit

schemes are as under: -

1. Demand deposits:

"Demand Deposits" means a deposit received by the bank which is withdraw able on

demand;

a) Savings Account:

"Savings Deposits" means a form of Demand Deposit which is subject to restrictions as

to the number of withdrawals as also the amounts of withdrawals permitted by the bank

during any specified period; HDFC provides with saving bank account with the usual

facilities, and one also gets a free ATM card, intrbranch banking, bill payment facilities,

phone banking and mobile banking.

2. Term Deposits:

"Term Deposit" means a deposit received by the bank for a fixed period withdraw able

only after the expiry of the fixed period and includes deposits such as Recurring /

Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income

Certificate / Quarterly Income Certificate etc.

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3. Notice Deposit:

''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn

on giving at least one complete banking day's notice.

4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom withdrawals are

allowed any number of times depending upon the balance in the account or up to a

particular agreed amount and will also include other deposit accounts which are neither

Savings Deposit nor Term Deposit; The account holder gets a personalized cheque

book, monthly account statements, and Inter-branch banking.

5. Corporate Account:

These are more commonly known as Salary Accounts. These are account in HDFC

BANK with zero balance. These are given to salaried people. These accounts are

opened by the employer for the employees to deposit the salary of the employee directly

to the account.

6. HDFC Bank Preferred:

A preferential Savings Account where in, one is assigned with a dedicated Relationship

Manager, who’s you’re the one point contact. One also get privileges like fee waivers,

enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and

lower interest rates on loans.

7. Sweep-In Account:

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A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings Account

runs a bit short, one can issue a cheque (or use ATM Card). The money is automatically

swept in to one’s Savings Account from one’s Fixed Deposit Account. The excess

funds in the account are directly transferred to the fixed deposit account of the account

holder.

8. Super Saver Account:

It gives one an overdraft facility up to 75% of one’s fixed deposit. In an emergency, you

can access your funds while your fixed deposit continues to earn high interest.

9. HDFC Bank Plus:

Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus,

a Current Account and then something extra for the HDFC bank customers. One can

transfer up to Rs. 50 lakh every month at no extra charges, between the four metros.

One can also avail cheque clearing between the four metros, get cash delivery/pick-up

up to Rs. 25000/-, home delivery of demand drafts, at-par cheque, outstation cheque

clearing facility, etc.

10. Demat Account:

One can conduct hassle-free transactions on the stock market for one’s shares. The

shares held by the customer are protected from damage, loss and theft, by maintaining

these shares in electronic form. This account can be accessed through Internet too.

11. Loans:

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There are a variety of loan schemes offered like personal loans, new car loans, used car

loans, loan against shares, consumer loans, two wheeler loans, and home loans. These

are available with easy payback in monthly instalments. Loans are sanctioned with easy

documentation and quick delivery.

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Services offered

Following are the services offered at HDFC bank for its esteemed customers

i. Phone Banking:

Round the clock automated banking services with 39 phone banking numbers

available as customer help-line. A customer can call in any time and get help no

matter where he may be without any time barrier.

ii. ATM banking:

HDFC bank brings 24-hour banking for it customers. Apart from routine

transactions, you can also pay your utility bills and transfer funds, at any of our

ATMs across the country all year round.

iii. Mobile Banking:

A customer can access his account on mobile phone at no extra air-time cost. One’s

banking transactions are just an SMS away

iv. Inter-city/Inter-branch Banking:

One can access one’s account from any of the HDFC’s 347 branches in 174 cities.

Other than that the customer can access their accounts at any of the ATM canters

across the country

v. International Debit Card:

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An ATM Card one can shop with all over the country and in over 140 countries

other than India. One can spend any currency depending on the country he/she is in,

and have the money in rupees in the account here in India.

vi. International Credit Cards:

HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are

accepted worldwide. If one has outstanding balance on one’s other credit card, one

can transfer that balance to this card at a lower interest rate.

vii. Mutual Funds:

Apart from a wide choice of mutual funds to suit any consumer needs, one benefit

from expert advice on choosing the right funds based on in-depth market analysis

by experts

viii. NRI Services:

A comprehensive range backed by unmatched features and world-class service

ensures NRIs all the banking support they need.

ix. Utility Payments made easy:

One can pay utility bills like telephone bills, electricity bills and mobile phone bills

through our ATMs, Internet, phone or mobile phone. Gone are the days when one

stood in long queues and wrote cheque.

x. FOREX Facilities:

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Avail foreign currency exchange, travellers’ cheques, and foreign exchange demand

drafts to meet your needs while travelling abroad.

xi. Insurance:

HDFC bank also brings you Life Insurance and Pension Solutions like Risk Cover

Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std. Life

Insurance Company Limited.

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Objective of The Project:

Learning in the classroom is partial unless it is added with practical experience and

training. Training is the most important part of learning in any technical and

professional education. Exposing the young prospective executive to the actual business

industrial environment not only broaden their horizon but also helps them to effectively

grasp the various angels of business. That will beneficial for them when they actually

come to occupy the execrative position. It is an aim that practical training of small

duration obviously had been made valuable and indispensable of the MBA degree.

Hence the objective of the project is:

1. To find prospective customer for the HDFC bank and to find the product potential in

the market.

2. To make customer informative about the technology offered.

3. To make recommendation and suggestion about the scope and Feasibility for HDFC

product.

Objective of study

“Market Potential Survey of HDFC BANK in Corporate Salary Account”

Primary: -

1. Analysis and evaluation of customer s satisfaction with respect to product

performance.

2. To determine the main characteristic which customers look upon while purchasing

and selecting the product?

3. To determine the other brand those are competing with the same product rang.

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Secondary: -

1. Service level and channel associate approach.

2. To find the level of brand awareness.

3. To find out the company market share.

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Methodology of the study: -

Research Methodology:

Research as a mean of getting knowledge can be carried out either arbitrarily or in a

systematic fashion. It is a purposive investigation.

Research may be a mean to know the small change and time forced upon us as

individual or as a society. Research as process involves defining the problem,

formulating the hypothesis, organizing and evaluating the data, deriving inference and

conclusion after careful testing.

Data Collection:

As data is required for any research activity, it is collected (for those

Both the Primary and Secondary) as follows:

Primary Data:
The primary data are those, which are collected a fresh and for the first time, and thus
happen to be in character. Primary data can be collected by various methods.

Secondary Data:

This data is collected from different sources available consolidated From book

publication reports, websites where used as a source of secondary data in order to do

this project and to collect necessary data. I have used the manuals and leaflets of the

bank.

Scope of study

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i. Special area to be focused for increasing the sales and for sales promotion

activities to be adopted.

ii. To make product more innovative and easy to understand

iii. For providing maximum satisfaction to the customer by knowing their needs

and requirement about product and services.

iv. Steps to be taken at present for survival and facing the competition with other

equivalent product.

v. Continues improvement and for better management.

vi. Maintaining good relation between manager and customer.

Limitation

i. All the survey work is done for HDFC bank as per their requirement.

ii. The study is limited to Pune region only.

iii. Only hundred customer’s data is being collected and on that basis final report is

being prepared.

iv. Only some of the products are being considered for the study.

v. Limited time period for which study has done.

vi. It includes the response error applicable to any survey.

vii. For scale up the results simple probability is used.

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Corporate Accounts

Introduction

When an organization opens a HDFC Bank Corporate Salary Account it not only gives

its employees more than just an account. They get a host of e-Age Banking facilities

such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card

(valid in 140 countries) and Bill Pay. And along with that free Demand Drafts and

preferential interest rates on Personal Loans.

An organization will be giving its employees an account that makes banking a pleasure

for them. The organization would have also saved time and money by directly crediting

their employee salaries nation-wide at one go.

Advantages To the Employer

HDFC Bank Salary Accounts benefits the employer by :-

i. Reduces your paperwork.

ii. Saves remittance costs.

iii. Employees receive instant credit of salaries.

iv. More convenient than ECS.

Advantages to the Employees:

i. Zero Balance Account

The employee does not have to maintain any minimum balance in the account.

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ii. Free Debit Card

The employees do not have to pay the annual fee for their Debit Cards.

Additionally, the first year annual fee is also waived for one additional account holder,

as in the case of a savings account holder. This plus all the other Debit Card benefits are

available to your employees.

iii. Free Inter-city/Branch banking

There is no cap on the transaction size for inter-branch/city transactions for

your employees. The fees associated are also waived. They can perform the following

transactions:

• Cash withdrawal: Customer presence required.

• Cash deposit: Customer presence required

• DD/MC issuance: Customer presence required

• Cheque deposit: Customer presence not required

• Any other written instructions: Customer presence not required

• This facility is not extended to premature withdrawal of Fixed Deposits

iv. Free Demand Drafts

Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any

of the HDFC Bank branch locations. This offer can be availed of through Phone

Banking or Net Banking or at the branch. The amount of the Demand Draft will be

debited to the salary account. Please note: DDs drawn on correspondent bank will

attract full charges

v. Cash delivery

If there isn't a HDFC Bank that is easily accessible from your office, we will

deliver cash against cheques from the employees once a week subject to a maximum of

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twice a week. Maximum amount of withdrawal per employee is Rs 10,000, minimum

Rs 1,000/-. This service is currently available in Mumbai, Delhi, Chennai, Hyderabad,

Bangalore, Pune and Ahmadabad.

vi. Overdraft facility

Employees with a salary account are eligible for this facility: Employees with a "Net

Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean overdraft

facility on the savings account @ 18%. Please note: The employee has to sign an

indemnity bond and give a copy of the latest salary slip.

vii. Discounts on loans

Your employees can avail of the benefits of preferential pricing on our asset products,

namely Loans against Securities, Car Loans and Personal Loans All loans at discretion

of the bank.

Salary Accounts – How it all works?


The banks approach the corporate houses and present them with the various salary

products that are offered by the bank. The organizations then, choose the bank and the

product from the various options that are offered to them. These organizations have an

association with one of the banks providing salary products

Types:
There are various types of Salary Accounts that are offered by HDFC Bank for different

class of people in the society. Keeping the need of the customer in mind, various types

of accounts are designed and offered to the corporate that choose the salary account for

their employees.

36
i. Payroll

The HDFC Bank payroll account offers flexibility as well as access to premium features

like Bill Pay, Insta Alert at a nominal charge. One can also access their account anytime

by phone or through the Internet and pay for their utility bills at a nominal charge.

ii. Classic

The Classic Salary account is a Zero Balance Account which earns the account holder

interest on his savings from salary at a competitive rate fixed by the bank from time to

time. There is no fee applicable for branch transactions and he receives banking

statements once every six months.

iii. Regular

The Regular account is a Zero Balance account and comes with a Free International

Debit Card , facilities like free inter-city / branch banking and Safe Deposit lockers

(subject to availability)

iv. Premium

A power-packed account for successful salaried professionals, the Premium Salary

account comes with a free International Debit Card and add-on Debit card for life, with

the option of choosing between a Silver or Gold credit card at preferential rates.

v. Defence Salary Account

This account is designed specifically for Defence personnel’s. The Account is a Zero

Balance Account and comes with a free International Debit Card.

37
Accolades
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". They realised that only a single-minded focus on product quality and

service excellence would help them get there. Today, HDFC can proudly say that they

are well on our way towards their goal.

i. London-based Euro money magazine gave us the award for "Best Bank - India"

in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in

2001 and 2002.

ii. In 2003, Forbes Global named HDFC in its ranking of "Best under a Billion,

200 Best Small Companies for 2003".

iii. Leading Indian business magazine Business Today in a survey rated HDFC

"Best Bank in India" 2003, and "Best Private Sector Bank" in India in 1999.

iv. The Asian Banker Excellence Retail Banking Risk Management Award in

India for 2004

v. The Asian Banker Excellence Retail Banking Risk Management Award for

2004

vi. Economic Times Awards - "Company of the Year" Award for Corporate

Excellence 2004-05.

vii. The Business Today-KPMG Survey published in the leading Indian business

magazine Business Today has named HDFC Bank "Best Bank in India" for the

third consecutive year in 2005.

viii. HDFC Bank named the "Most Customer Responsive Company - Banking an

Financial Services in The Economic Times - Avaya Global Connect Customer

Responsiveness Awards 2005"

38
ix. The Asset magazine named HDFC Bank "Best Cash Management Bank" and

"Best Trade Finance Bank" in India, in 2006.

39
Financials
Net Profit for HDFC went up by 83.8% at Rs.503.2 million as compared to Rs.273.8

million. Net Margins improved by a 330 basis point from 10.5% in FY05 to 13.8% in

significantly by 78.3% from Rs 18.9 in FY05 to Rs 33.3 in FY07. Operating revenues

increased to Rs. 3,625.0 million from Rs. 2,571.3 million in FY05, representing a Y-o-

Y growth of 41%. The company witnessed 62% Y-o-Y growth in UTG Vertical and

26% growth in EMI Vertical. Operating profit grew by 44% from Rs 466.5 million in

FY05 to Rs. 671.9 million. Operating margins improved by a 40 basis point from

18.1% in FY05 to 18.5% in FY06.While the institution registered yet another 30% YoY

growth in approvals and 28% YoY growth in disbursements, a quantum leap in profit

on sale of investments have added to its profitability. While the institution sustained the

trend of 30% YoY growth in assets and 20% YoY growth in bottom line, a quantum

leap in dividend from subsidiaries has added to its profitability. Margins and operating

efficiency continue to be in line with HDFC’s corporate policy. Leading private sector

life insurance major HDFC Standard Life has recorded a strong YoY growth of 112 per

cent in FY 07, with new business first year premium touching Rs 1,029 crore, stated a

release issued here today. Major Growth Events for the FY – 07 During Q4 FY07, the

company signed the following major contracts

(a) Contract with GE Energy to provide geospatial data management services for Swiss

COM Fix net over a period of three and half years and

(b) Contract with Los Angeles County to provide Digital Aerial Imagery Services to 26

State and Local Governments Consortium within the County.

InfoTech launched several new service offerings in both UTG and EMI verticals during

the year. These include piping and instrumentation (UTG); and marine vertical practice,

40
interiors and seating, signalling and interlocking, aerospace structures, and validation

and verification (EMI).

Substantial new client additions and long-term relationships with existing marquee

clients to boost future revenue growth

uring FY07, the company set up dedicated design centres for major clients including

Hamilton Sundstrand, Alston Transportation, Boeing, Airbus, KPN Telecom etc.,

strengthening several long-term relationships. 40 new clients were added during

FY2007, 19 in the UTG vertical and 21 in EMI vertical. Of these, 10 new clients were

added during Q4FY07; 6 in UTG and 4 in EMI. Significant ramp-up of critical mass

InfoTech expanded its human resources by 1,546 and employed 3,978 associates at

the close of FY07 from 2,432 associates in FY05.Majority of the hiring were focused

on lower experience resource, resulting in reduction in employee cost as a proportion of

revenue from 47.2% in FY05 to 46.8% in FY07. Average utilization rate was fairly

constant at 75% levels Y-o-Y.

41
Recommendations
In the field of the Corporate Accounts most organizations prefer to choose one of the

three banks; HDFC, ICICI and Citibank though there are around 10 banks that provide

the service. Around 71% of the corporate houses prefer to bank with one of these three

banks.

INDUSTRY ANALYSIS:

Satisfaction:

Around 90% of the organizations are satisfied with the bank where they are having the

corporate accounts for their employees. But 70% of the organisations expect better

services from the bank. This shows that though the organizations are continuing to

deposit the salary in the current bank if good offer comes their way they would be more

than happy to take the opportunity and make the switch to the new bank.

42
Move from One to the Other

Most of the banks have not changed the bank in the past. There are 25% of the

organizations that are satisfied with the products and services that they receive from

their bank and prefer to continue rather than changing to a new bank even if they are

providing better products and services.

78% of banks have not changed the bank in the past but of the 78 around 68% of them

say that they desire to change the bank in future, if they are offered with better products

and services by other banks. This shows that the organizations are not hesitant to

change the bank. They want the best possible alternative available to them.

Relationship

Most of the organizations have good relationship with their bank. Only around 13% of

the organizations are not happy with the relationship that they share with their bank.

But an important thing to notice here is, of the balance 87%, around 45% of the

organizations say that they are satisfied with the banks but they are not standing up to

say that they share a good or excellent relationship with the bank that handles the

corporate accounts for their employees. These organizations are therefore an

opportunity for other banks.

Responsiveness

57% of the corporate houses say that they have a satisfactory customer responsive bank.

32% of them say that they have a good customer responsive bank and only 16 of the

135 i.e. 12% say that the customer responsiveness of their bank is bad.

This is the most important factor that determines the time for the relationships between

the bank and the organization. It comes up as, the organization has to interact with the

43
bank only for opening of the account of new employees and that is the most important

thing that they consider for their relationship with the bank.

After Change – Where?

Of the 53 banks that are contemplating to change the bank 29 of them do not have any

preference as to which bank they desire to go to. This means that 55% of the corporate

houses do not differentiate much between the various banks providing corporate

accounts. This can even mean that they are considering more than two banks for change

and are not able to shortlist one or two from all the available banks providing the

service.

FOR HDFC

Satisfaction

Of the 35 Organisations that are having their Accounts with HDFC 30 of them are

satisfied with the services that they receive from HDFC Bank. But out of the 30, 22

expect better Products and services from HDFC. This shows that they put HDFC in the

top performer’s category and expect the bank to be the first to come up with newer

ideas and provide the best to their customers. This may also mean that they are

observing improvements in the products and services of other banks and not seeing

sufficient improvement with their bank. There are 5 organisations that are not satisfied

with the services that they receive and desire better services from HDFC.

Move from one to the other

Of the 35 organisations, 32 organisations have not changed the bank since starting the

corporate account. This shows that HDFC Bank was able to cater to the needs of all the

44
organizations in time, and therefore they have stayed along with the bank. There are 17

organisations that are contemplating change of bank from HDFC to other banks in case

there are good products and services being provided by them. This is less than 50% of

the banks and pretty much in tandem with the industry norm. Considering that HDFC is

one of the top three banks providing corporate accounts this number needs to be

brought down to improve the efficiency and effectiveness of the bank.

Relationship

Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are

not happy with the relationship that they share with HDFC. Of the 35, 13 say that they

share a satisfactory relationship with the Bank and that comes to around 37% of the

organisations. This is a huge figure in the terms that the relationship can swing in either

directions and HDFC needs to keep a close eye on these organizations and cater to their

needs in time to ensure a longer relationship with these firms and to avoid cost of

acquiring additional new customers every time.

Responsiveness

Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are

not happy with the customer responsiveness of HDFC bank. Of the 35 Organisations

there are 13 say that they have good customer responsiveness from the bank; which

means that 18 say that they are satisfied with the banks customer responsiveness. This

figure is huge in terms of the industry norms and HDFC bank needs to take a closer

look at the needs of these organizations. Few complaints received were with respect to

the lead time, and the follow up with the organizations.

45
After Change – Where?

56% of the organizations are undecided about the change of bank that they may have in

future. This means that they are not considering change with as an only option. These

organizations could have a longer relationship with the bank if their needs are

understood properly and met in time. It can be said that it is the point of contact with the

organizations that could be considered as the most important factor that decides, the

way the organizations see the relationship with their bank

46
DATA ANALYSIS
INTRODUCUION:

Data analysis and interpretation plays an important role in turning quantity of paper into

defensible, actionable sets of conclusions and reports. It is actually a set of method and

technique that can be used to obtain information and insights from data.

It can lead the researcher to information and insights that would not be available. It can

help to avoid erroneous judgments and conclusion. It can provide a background to help

interpret and understand analysis conducted by others. Knowledge of power of data

analysis techniques can constructively influence research objectives and research

design.

47
DATA TABLE NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS

INCLUDING HDFC BANK LTD

PERCENTAGE OF
BANK NAME NO. OF RESPONDENTS
RESPONDENTS
HDFC 22 22%
ICICI 25 25%
UTI 14 14%
CO-OPERATIVES 9 9%
OTHERS 8 8%
POTENTIAL MARKET 22 22%
TOTAL 100 100%

INTERPRETATION

i. ICICI Bank Ltd scores top position in market coverage of corporate salary

account in Pune Region

ii. HDFC Bank gets a second position

iii. The amount of potential market is as high as the market share of HDFC

Bank i.e. 22%

48
GRAPH NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS

POTENTIAL
MARKET ICICI
22% 25%

OTHERS
8%

HDFC
CO
UTI 22%
OPERATIVES
9% 14%

ICICI HDFC
UTI CO OPERATIVES
OTHERS POTENTIAL MARKET

49
TABLE NO 2

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD

PARAMETERS OF BANK SELECTION PERCENTAGE OF CUSTOMER CHOICE

BRAND NAME 23.60%


PERVIOUS EXPERIENCE 22.40%
RELIABILITY 22.10%
EASY ACCESS 19.80%
COMPANY POLICY 14.10%

INTERPRETATION

i. Brand Name of a bank has the greatest impact on the customer in regards

with Bank Selection Parameters. (24%)

ii. Pervious Experience and Reliability about the bank get aequal score of 22%

each.

iii. Followed by Easy Access (20%)

iv. Company (Applicant company) policy (14%)

50
GRAPH NO 2

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD

CUSTOMER CHOICE(%)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
PreviousReliability Easy Company
Brand
Access Policy
Name Experience

Parameters for Bank Selection

51
TABLE NO 3

CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY

ACCOUNT

BASIC FACILITIES IN CS ACCOUNT PERCENTAGE OF RESPONDENTS

ZERO BALANCE 100%

ATM NETWORK 85%

NET BANKING 68%

BILL PAYMENT 34%

INTERNATIONAL DEBIT CARD 45%

INTERPRETATION

i. Zero Balance facility is a must have feature of salary account (100%)

ii. ATM Network facility get a second position with 85% of the respondents

opting for this option

iii. Net Banking facility is mostly opted by those employees who are from the

IT or Software Companies due to the nature of work culture and easy access

of net. (68%)

52
iv. International Debit Card facility is opted fro only when its given as an

additional feature and free of any hidden cost. This facility is generally

opted for the employees who are at a higher position. (45%)

v. Bill Payment facility is the least opted facility as it comes with some amount

of extra charges.(34%)

53
GRAPH NO 3

CUSTOMERS PRIME REQUIREMENT

IN CORPORATE SALARY ACCOUNT

100%
100%
85%
90%
80%
68%
70%
60%
45%
50%
40% 34%

30%
20%
10%
0%
1

ZERO BALANCE
ATM NETWORK
NET BANKING
BILL PAYMENT
INTERNATIONAL DEBIT CARD

54
TABLE NO 4

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF NET BANKING

EXCELLEN GOO FAI SATISFACTOR


BANK UNSATISFACTIORY
T D R Y
HDFC 73 8 12 5 2
ICICI 68 13 8 6 5
UTI 64 14 7 8 7
CO-

OPERATIVE 14 9 15 24 38

S
OTHERS 19 36 11 7 27

INTERPRETATION

i. Net Banking facility of HDFC Bank is rated as excellent by a majority of

respondents (73%).

ii. Followed by ICICI Bank,(68%) UTI Bank(64%)

iii. Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of

Baroda, etc are rated as good by 36% of the respondents.

iv. Co-Operative Banks are rated as satisfactory by 24% of the respondents.

v. Co-Operatives and other banks are rated as unsatisfactory by 38% and 27%

respectively.

55
vi. This dissatisfaction is largely due to lack of technical advancements and

capital.

56
GRAPH NO 4

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF NET BANKING

100% 2
5 5 7
90% 6
12 8
8 27
80% 7 38
8
13
70% 14 7

60% 11

50% 24

40%
73 36
68 64
30% 15

20% 9
10% 19
14
0% 0
S

FC

TI

S
P
IC
K

ER
-O
U
D
N

IC

CO

TH
BA

Series1 Series2 Series3 Series4


Series5 Series6

57
TABLE NO 5

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

EXCELLEN GOO FAI SATISFACTOR


BANK UNSATISFACTIORY
T D R Y
HDFC 9 13 27 36 15
ICICI 13 29 27 19 12
UTI 12 18 29 35 6
CO-

OPERATIVE 5 14 24 40 17

S
OTHERS 12 19 25 30 14

INTERPRETATION

i. ICICI Bank is rated as the excellent in facility of Phone and Mobile Banking

in comparison with the rest of the banks (13%)

ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated it as

satisfactory. This is mainly influenced by the perception about the bank and

previous encounter

iii. The services of all the banks is rated as fair by approximately 25%+

respondents for each bank.

58
GRAPH NO 5

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

59
100% 6
15 12 14
17
90%

80% 19 35
30
70% 36
40
60%
27
50%
29 25
40%
27
24
30% 29
18 19
20%
13
14
10% 13 12 12
9 5
0%
HDFC ICICI UTI CO-OPERATIVES OTHERS

excellent good fair satisfactory unsatisfactory

60
TABLE NO 6

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

EXCELLEN GOO FAI SATISFACTOR


BANK UNSATISFACTIORY
T D R Y
HDFC 75 9 5 7 4
ICICI 80 8 5 3 4
UTI 70 6 4 12 8
CO-

OPERATIVE 15 11 30 31 13

S
OTHERS 33 19 27 10 11

INTERPRETATION

i. ATM Network of ICICI Bank is rated excellent (80%). Followed by HDFC

Bank (75%).

ii. UTI Bank gets third position. (70%)

iii. Co-Operative Banks are rated as fair by 30% of the respondents and

satisfactory by 31% of the respondents.

iv. Other Banks are rated as excellent by 33% of the respondents and fair by

27% of the respondents.

v. 13% respondents rated co-operative banks as unsatisfactory.

61
GRAPH NO 6

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

100% 4 4
3 8 11
7 13
90% 5
5 12
8 10
80% 9 4
6 31
70%
27
60%

50%

30 19
40% 80
75
70
30%

20% 11
33
10%
15
0%
HDFC ICICI UTI CO-OP OTHERS

EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY

62
TABLE NO 7

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

EXCELLEN GOO FAI SATISFACTOR


BANK UNSATISFACTIORY
T D R Y
HDFC 45 8 22 7 18
ICICI 53 8 19 9 11
UTI 47 16 26 11 10
CO-

OPERATIVE 35 11 31 16 7

S
OTHERS 29 18 21 21 11

INTERPREATATION

i. The sales executives of any Bank are the biggest source of communication.

As they are the back bone of any organization.

ii. The networking and customer contact is best done by ICICI Bank’s

followed by UTI Bank and HDFC Bank.

63
GRAPH NO 7

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

100%
10 7
11 11
90% 18
9 11 16
80% 7 21

70% 19
26
22
60% 31
8 21

50% 8 6

40% 11
18

30%
53
45 47
20%
35
29
10%

0%
HDFC ICICI UTI CO-OP OTHERS

EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY

64
TABLE NO 8

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER

INTO A LOYAL CUSTOMER

Elements No of Respondents % of Respondents

Personal Touch 75 75%


Ensuring Customer
37.5 37.5%
Security
Offering Customized
37.5 37.5%
Products
Innovative Products 37.5 37.5%
Better Service Pre &Post
93.75 93.75%
Banking

INTERPRETATION

Customer Retention and Customer Satisfaction are inexorably inter - linked. While

consumers may be happy to make payments and interact with their bank through

convenient – and cheaper – banking channels, they still expect high standards of

service. A consistent service reflects the bank’s brand and image across all channels.

93.75 per cent of respondent banks informed that superior service pre and post banking

has been one of the essential factors rated high by their customers. 75 per cent of

respondent banks felt that Personal touch in the dealings has helped them in winning

customers.

65
GRAPH NO 9

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A

LOYAL CUSTOMER

Ensuring Customer
Security 37.5%

Personal Touch 75%

Offering Customized
Products 37.5%

Better service pre Being a leader in


and post banking offering innovative
93.75% products from time
from time 37.5%

66
TABLE NO 9

TABLE OF CUSTOMER’S PREFERRED BANK

BANKS % OF RESPONDENTS

HDFC BANK 24%

ICICI BANK 29%


UIT BANK 10%
CO-OPERATIVE BANKS 13%
BANK OF MAHARASHTRA 10%
KOTAK MAHINDRA 8%

INTERPRETATION

i. ICICI Bank is the most preferred bank in the market by the customer. (29%)

ii. HDFC Bank is the second most preferred bank. (24%)

iii. Co-operative Banks are the third most preferred banks. (13%)

iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.

v. Kotak Mahindra Bank is the least preferred bank as per the respondents in

regard with Corporate Salary Account.

67
GRAPH NO 10

CUSTOMER’S PREFERRED BANK

PERCENTAGE OF RESPONDENTS
29
24
13
10 10 8

MAHINDRA
MAHARASHTR
ICICI

UTI
HDFC

CO-OP

KOTAK
BANK OF

PERCENTAGE OF ESPONDENTS

68
TABLE NO 11

CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC

BANK LTD

Elements % of Respondents
Yes 83%
No 17%

INTERPRETATION

i. 83% of the respondents where happy with the service quality of offered by

HDFC Bank

GRAPH NO11

CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC

BANK LTD

% OF RESPONDENTS

17%

83%

YES NO

69
TABLE NO 12

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

CRITERIA % OF RESPONDENTS

Yes 26%

No 74%

INETRPREATATION

ii. Even though 74% of the respondents are unsatisfied with the documentation in

the account opening procedure however in terms with Global Banking HDFC

Bank is one of the major contributor for putting India on No.1 position in

regards with Regulatory Systems.

GRAPH NO 12

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

70
% OF RESPONDENTS

YES
26%

NO
74%

YES NO

71
TABLE NO 13

THE MOST EFFECTIVE MEANS OF COMMUNICATION

Elements % Of Respondents
SALES FORCE 53%
TELE MARKETING 15.8%
WORD OF MOUTH 11.3%
NEWSPAPER 9.7%
TV 6.2%
PUBLIC RELATION 4%

INTERPRETATION

i. The banks employees are rated as the most effective source of communication

(53%)

ii. Tele marketing is second most effective means of communication (15.8%)

iii. Peers group and positive as well as negative word of mouth publicity is an

effective source of communication. (11.3%)

iv. With Newspapers, Television, and Public Relations following each other.

72
GRAPH NO 13

THE MOST EFFECTIVE MEANS OF COMMUNICATION

% OF RESPONDENTS

60
53
50

40

30

20
15.8
11.3 9.7
10
6.2
4
0 SALES TELE WORD OF NEWSPAPER TV PUBLIC
FORCE MARKETING MOUTH RELATION

% OF RESPONDENTS

73
TABLE NO 14

Strengthens and weakness of HDFC Bank Score Card

Parameters Score
Regulatory System 5
Technology Advancements 6
Credit Quality 5
Diversification of market beyond big
4
cities
Size of Bank 5
Banking Infrastructure 4
Labor Inflexibilities 3

INTERPRETATION

i. The Indian banking sector has scored over its counterparts not only in

developing but also even in developed world such as Japan, Singapore and

Australia on significant parameters.

ii. Technology has given birth to a new era in banking. Technology can be the key

differentiator between two banks and a major factor to attain competitive edge.

Though slow in the beginning, HDFC Bank seem to have paced up in adoption

of advanced technology.

iii. While enhancement of credit is an important function of the Banks, it is equally

imperative to keep a check on the quality of credit to ensure good health of the

banking system and effective functioning of market for distressed assets.

74
iv. One of the key fundamentals of banking sector – Credit Quality too has been

rated fairly well in comparison with other Banks.

v. Even though HDFC Bank is a big player in Indian Banking sector still it is not

yet penetrated in the rural areas of India to a very great extend.

vi. HDFC Bank as earlier said is a large player in the Indian Banking Sector,

however when it comes to banking infrastructure it is one of its weak and so

labour inflexibilities.

GRAPH NO 14

Strengthens and weakness of HDFC Bank Score Card

75
STRENGTHS AND WEAKNESS OF HDFC
BANK Score

Labor Inflexibilities 3

Banking Infrastructure 4

Size of Bank 5

Diversification of market beyond big cities 4

Credit Quality 5

Technology Advancement 6

Regulatory Systems 5

0 2 4 6 8

STRENGTHS AND WEAKNESS OF HDFC BANK Score

FINDINGS

As stated earlier there are main two types of consumers in this field and they are:

1 Small Business consumers

2. Big Business consumers

WAYS TO COMPETE (FINDINGS)

76
Now all are competing with each other on the basis of different strategies or

combination of one or more strategies. But if we try to summarize the strategies then we

will find that most of these are common and including all these are not more than the

followings: -

i. QUALITY SERVICE:

Quality Service is the most important strategy used to compete in this market because

customers is no more centric only in India, they need better quality in the service

provided to them. The policy of ONE PIONT CONTACT should be followed by

HDFC Bank.

ii. ADVERTISEMENTS:

Only ICICI BANK and UTI BANK are countering HDFC BANK in market through

advertisements. Others are not even bothering on doing advertisements.

iii. PERFORMANCE:

HDFC Bank lacks on the prompt action where as others are a bit ahead in this line.

HDFC Bank takes nearly 8 10 days to open a salary account for tie customer company.

This is mainly because HDFC bank follows the guidelines of RBI and the required

number of documents for account opening in a bit regress. But when it comes to service

performance customers are happy.

iv. DIFFERENT SCHEMES:

Some additional facilities should be provided to large companies in order increase

Brand Value as well as bring customer loyalty.

77
v. POTENTIAL MARKET:

The current account holders should be contacted as there is less amount of

documentation and lesser time is spend in convincing the customer about HDFC Bank

firstly and secondly about Salary Account.

78
SUGGESTIONS
After talking to customers and staffs I suggest the following points to keep customers

happy

QUICK SERVICE: -

HDFC Bank must try to provide services as early as possible and reduce the time gap

between date promised and work performed so that customer must not get irritated.

PROPER CO-ORDINATION: -

Staffs of HDFC are still not comfortable with the queries of customers about their new

service, as they sometimes feel dumb to some of the questions. They must get proper

updating from the head office related to any changes or problems faced by the staffs.

PROPER ORGANISATION OF WORK: -

HDFC Bank needs to be more organized in terms with area division among the various

internal sales teams. The potential market should be followed up in order to get good

sales number.

QUALITY SERVICE: -

HDFC Bank customers generally have following complains:

Number of days has passed yet my account opening process is under process

I have not receive my personalized cheque book as it has been more than a month after

applying for it:

I have made a number of complaints but no one is hearing HDFC Bank has to resolve

them as early as possible because it affects the service quality very badly.

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Conclusions
MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY

ACCOUNT (CONCLUSION):

As a summer trainee in HDFC BANK, I would like to conclude my project work on

Marketing Strategies of HDFC Bank India Ltd. It was really very interesting interacting

with customers and have an insight into HDFC Banks brand image in their minds.

The main aim was to know the factors & attributes of brand, and services provided by

it, which companies look for in Corporate Salary Account. From the survey, overall

conclusion was that people are quite satisfied with HDFC Banks Corporate Salary

Account services.

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LIMITATIONS

i.) AREA LIMITATION: The study was limited to Pune city only. Hence findings may

differ from other parts of India where I have not visited

ii). NON-RESPONSE ERROR: It is almost impossible to obtain data from each &
every respondent covered in sample. There are always some respondents who refuse
to give information

iii). LIMITED SOURCE OF DATA COLLECTION: Sources of data for collection of

secondary data were limited

iv.) TIME CONSTRAINT: There was time constraint to this project. The project has to

be completed within 2 months.

v.) BUSY RESPONDENT: Many times respondents were so busy that they didn’t t

give reply. There were biased replies also.

vi.) OTHER REASONS: There were heavy rains during the period of survey. So there

was many times problem in conducting survey & transportation.

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Questionnaire

1. Company Name: ____________________________________________________

2. Industry

A) Electric and Electronics

B) Information Technology

C) Automobile

D) Pharmaceutical

E) Infrastructure

F) Telecommunication

g) Others: please specify ________________________________________

3. Contact Person: ___________________________________________________

4. Designation: ______________________________________________________

5. Contact Number: __________________________________________________

6. e- Mail id: ________________________________________________________

7. No. of Employees: _________________________________________________

8. Current Banker: ___________________________________________________

9. Total salary uploaded recently/ Avg. Salary of all employees:________________

10. Special offer provided from existing bank:

a) P.L. Rate: __________________________________________

b) H.L Rate: __________________________________________

c) Vehicle loan Rate: ___________________________________

d) Others: ____________________________________________

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11. Are you satisfied with existing Banker?

a) Yes b) No

12. Do you expect better products and services from your banker?

a) Yes b) No

13. How is the Relationship between you & your Bank?

a) Excellent

b) Good

c) Satisfactory

d) Unsatisfactory

14. Did you change your banker recently?

A) Yes b) No

15. If yes: From - ____________________________________________________

To - ______________________________________________________

16. How is Customer Responsiveness of your Bank?

a) Good

b) Satisfactory

C) Unsatisfactory

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17. Would you like to shift to other Bank, if provided better product &Services?

a) Yes b) No

18. Given options, which Bank, you would like to shift?

Please mention: _________________________________________________

Date -

Place –

Thank you Signature

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Bibliography
i. The Economic Times

ii. The Times of India

iii. www.economictimes.com

iv. www.hdfc.com

v. www.hdcbank.com

vi. www.indiabulls.com

vii. www.icicibank.com

viii. http://www.citibank.com/us/d.htm

ix. HDFC Annual Report 2006

x. 10 Years Highlights – (HDFC Bank website – Acrobat File)

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