Project on HDFC Bank | Debit Card | Banks
members of HDFC Bank and my colleagues who gave me fruitful information to finish my project. EXECUTIVE SUMMARY In accor...
A Project Report ON
“Identify the current account holder costumer’s perception of in JAIPUR city”
Under the supervision of: -
Submitted by: -
Dr. Amit Gupta
ACKNOWLEDGEMENT It is always acknowledged so precious a debt as that of learning. It is the only debt that is difficult to reply through gratitude. It is indeed a great opportunity for me to pen down a few lines about people to whom my acknowledgement acknowledgement is due. It is my deepest sense of gratitude that I wish place on record my sincere thanks to Dr. Amit Gupta (Project guide) for providing me this opportunity to complete my project work in Marketing Management. I would also like to thanks all those who could not find a separate name but has help me directly or indirectly. Last but not the least I would like to thanks my faculty members at Centurion Institute of Professional Studies who gave me the useful tips and opened a whole New World of Knowledge for me. Lastly, I would like to thank all the members of HDFC of HDFC Bank and my colleagues who gave me fruitful information to finish my project.
EXECUTIVE SUMMARY In accordance with the resource project the topic chosen identify the corporate target market (current account) and Costumers perception of in
In this research the beginning of the project is the assistance of various tools, techniques and information belong to the subject. This research has been identified that there are no dependent and in depended various which effecting the topic and problem relatively. The problem identified the corporate target market (current account) and Costume Costumers rs percept perception ion in JAIPUR JAIPUR city and effect effect a partic particula ular r consumer has been described in this research.. Henc Hencee to obse observ rvee the the probl problem em rela relate ted d respon response se acco accordi rding ng to the the questionnaire many of the person queered. It is close ended question asked so the respondent field for the cognizance which is beneficial for me and company.
OBJECTIVE Different objective behind conducting this projecto
Identifying Customer satisfactions.
Customer Orientation towards Features available in HDFC Bank Current Bank Current Account products.
Listing of the product preferences in Current Account.
Recommendation on Market potential For HDFC Bank in Current Account.
Content table S. No.
Contents Introduction of project………………………..
Banking sector introduction………………………
List of company products………………
Data collection & Data analysis…………………… Findings…………………………………………….
Recommendation and Suggestion …………………
Limitation of study…………………………………
❋ INTRODUCTION The project was carried out for understanding the customer behavior in Current Account of HDFC Bank JAIPUR branch and its market potential. HDFC Bank was established in the year 1994, they are old player in banking sector, The bank has two principle client segments –customer and asset management.The bank follows values such as – Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering considering here is- Corporate banking. The product out of which have chosen for research is Current Accounts.This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and an d awaren awareness ess by promotio promotion n and also identi identifyi fying ng the
the market market potent potential ial of the
product offered by the HDFC bank .
❋ ABOUT THE PROJECT The project was carried out in Jaipur city with an objective of knowing satisfaction level of customer with with bank services and do customers are aware aware about the different types of Current Account with various schemes, Services and different offers provide by the bank. The total sample size taken was one thousand (100) from various market of the Jaipur. The research shows that the market potential for the bank is very good and so many customers are not aware of the services provided by the bank which are not provided by other banks. On the other hand we have also the existing customers of HDFC Bank who are satisfied with the working style of bank, but want continuous updates about the new service schemes and other products of bank. They want that bank should do promotional activity as – Advertising. So that they can be updated while seating at home. The researcher used the method of questionnaire to know all feedback which is listed above.
Banking sector profile Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. Madras. The presidency banks were established under charters from the British East India Company. Company. They Th ey merg mergeed in 1925 1925 to for form the the Im Impe peri rial al Ba Bank nk of Ind India ia,, whic which, h, up upon on Indi India' a'ss independence,, became the State Bank of India. independence India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, Empire, and due to which banking activity took roots there and prospered.
EARLY HISTORY The first fully Indian owned bank was the Allahabad Bank , established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. At the time of the American Civil War, War , a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time to fina financ ncee indu indust stry ry,, incl includ udin ing g specu specula lati tive ve trad tradin ing g in cott cotton on.. With With larg largee expo exposur suree to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Structure of the organized banking sector in India. Numbers of banks are in brackets.
At this this time, time, the Indian econom economy y was was passin passing g thr throug ough h a relati relative ve per period iod of stabili stability. ty. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very smal smalll bank bankss oper operat ated ed by India Indians ns,, and and most most of them them were were owne owned d and and oper operat ated ed by particular communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint Indian joint stock banks. stock banks. All these banks operated in different segments of the econom economy. y. The exchan exchange ge banks, banks, mostly mostly owned owned by Eur Europe opeans ans,, concen concentra trated ted on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked lacked the experience experience and maturity maturity to compete compete with the presidency presidency and exchange exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." compartments." By the 1900s, 1900s, the market market expand expanded ed with with the establis establishme hment nt of banks banks such such as Punjab National Bank , in 1895 in Lahore and Bank of India, India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present present such as Bank of India, India, Corporation Bank , Indian Bank , Bank of Baroda, Baroda, Canara Bank and Bank and Central Bank of India. India.
FROM WORLD WAR I TO INDEPENDENCE The period during the First World War (1914-1918) through the end of the Second World War (193 (19399-19 1945 45), ), and and two two year yearss ther therea eaft fter er un unti till the the independence of Indi India a were were challengin challenging g for Indian banking. The years of the First World War were turbulent, turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect
boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
Number of banks that failed
Authorized capital (Rs. Lakhs)
Paid-up Capital (Rs. Lakhs)
POST-INDEPENDENCE The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,, paralyzing banking activities for months. India's independence marked the end of Bengal a regime of the Laissez-faire for the Indian banking. The Gove Governmen rnmentt of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. economy. This resulted into into greate greaterr involv involveme ement nt of the state state in differ different ent segmen segments ts of the econom economy y includ including ing banking and finance. The major steps to regulate banking included:
In 1948 1948,, the the Re Rese serv rvee Ba Bank nk of Ind India ia,, Indi India' a'ss cent centra rall bank bankin ing g auth author orit ity, y, was was nationalized, and it became an institution owned by the Government of India. I ndia.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.
However, despite these provisions, control and regulations, banks in India except the State Bank of India, India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July, 1969.
NATIONALISATION By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi,, the-then Prime Minister of India expressed the intention of the GOI in the annual Gandhi conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July of July 19, 19, 1969 1969.. Jayaprakash Narayan, Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquition and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking
business of India. Later on, in the year 1993, one of the nationalised banks, namely, New Bank of India was merged with Punjab National Bank. It was the first and only merger of a Nationalised Bank into a Nationalised Bank, resulting in the reducing the number of Nationalised Banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.
LIBERALISATION In the the earl early y 1990 1990ss the the then then Na Narsi rsimha mha Rao gove govern rnme ment nt emba embark rked ed on a poli policy cy of liberalisation and gave licences to a small number of private banks, which came to be known as New Generation tech-savvy banks, banks, which included banks such as Global Trust Bank (the first of such new generation banks to be set up)which later amalgamated with Oriental Bank of Commerce,UTI Commerce, UTI Bank (now (now re-named as Axis Bank ), ), ICICI Bank and HDFC Bank . This move, along with the rapid growth in the economy of India, India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more.
Currently Currently (2007), banking in India is generally generally fairly mature in terms terms of supply, product product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With With the the grow growth th in the the India Indian n econ econom omy y expe expect cted ed to be stro strong ng for for qu quit itee some some time time-especially in its services sector-the demand for banking services, especially retail banking, banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs ATMs.. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively Introduction of many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put pu t to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.
COMPLETE NAME OF THE COMPANY– The Housing Development Finance Corporation Limited (HDFC ( HDFC Bank Ltd.) BUSINESS OBJECTIVE The primary objective of HDFC 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 resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
ORGANISATIONAL GOALS HDFC's HDFC 's main goals are to (a) Develop close relationships with individual households, (b) Maintain its position as the premier housing finance institution institution in the country, (c) Transform ideas into viable and creative solutions, (d) Provide consistently high returns to shareholders, shareholders, and (e) To grow through diversification diversification by leveraging off the existing client base
SLOGAN “We Understand Your World”
HISTORICAL DEVELOPMENT OF THE COMPANYThee Hous Th Housin ing g Deve Develo lopm pmen entt Fina Financ ncee Corp Corpor orat atio ion n Limi Limite ted d ( HDFC HDFC)) w a s amongst the first to receive an 'in principle' approval from the Reserve Bank of I nd nd ia ia ( RB RB I ) t o s et et u p a b an an k i n t h e p ri ri v at at e s e ct ct or or , a s p ar ar t o f t h e R B I' I' s liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 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.
BUSINESS FOCUS HDFC is India's premier housing finance company and enjoys an impeccable impeccable track record in India as well as in international markets. Since its inception in 1977, 1977, the Corpor Corporati ation on has mainta maintaine ined d a consis consisten tentt and health healthy y growth growth in its 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 reta retail il mort mortga gage ge loan loanss to diff differ eren entt mark market et segm segmen ents ts and and also also has has a larg largee corporate client base for its housing related credit facilities. With its experience in the financia financiall markets, markets, a strong strong market market repu reputati tation, on, large large sharehol shareholder der base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
CAPITAL STRUCTURE 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 Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Institutional Investors (FIIs) and the bank has about 190,000 shareholders. 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".
HDFC BANK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
761 branches spread over
327 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 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
1977 networked ATMs across these
cities. Moreover, HDFC Bank 's ' s ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
TIMESBANK AMALGAMATION In a milestone milestone transaction transaction in the Indian banking banking industry, industry, Times Bank Limited Limited (another (another new 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, expa expand nded ed geog geogra raph phic ic reac reach, h, en enha hanc nced ed cu custo stome merr base base,, skil skille led d manp manpow ower er and and the the opportunity to cross-sell and leverage alternative delivery channels.
MANAGEMENT Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has 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 team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multibranch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).
Centralized Processing Units Electronic Processing
Derived Economies of Scale Through
Data Warehousing , CRM
Reduced Transaction Cost
Improve cost efficiency, Cross sell Provide new or superior products
Innovative Technology Application
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 s calable and robust systems which ensure that our clients always get the finest services we offer.
Branches 43% ATM 40% Phone Banking 14% Internet 2% Mobile 1%
2005 Branches 17% ATM 45% Phone Banking 12% Internet 25% Mobile 1%
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 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.
consistent player player in the private private sector bank bank and have a HDFC Bank is a consistent well balanced product and business mix in the Indian as well as overseas markets.
Customer segments segments (retail (retail & wholesale) account for 84% of Net revenues revenues ( FY 2008)
Higher retail revenues partly offset by higher operating and credit costs.
Equally well positioned to grow both segments.
SEGMENTS 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:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agro-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 corporates 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/he his/herr banki banking ng req requir uireme ements nts.. The produc products ts are backed backed by world world-cl -class ass servic servicee and delive delivere red d to the customers customers thr throug ough h the growi growing ng branch branch net networ work, k, as well well as thr throug ough h altern alternati ative ve delive delivery ry channe channels ls like like ATMs, ATMs, Phone Phone Bankin Banking, g, Net Net Banki Banking ng and Mobile 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 nee ds of custom customer erss who seek seek distinc distinctt financ financial ial soluti solutions ons,, inform informati ation on and advic advicee on variou variouss invest investmen mentt avenue avenues. s. The Bank also also has a wide wide array array of ret retail ail loan produc products ts 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-ofsale (POS) terminals for debit / credit cards acceptance at merchant establishments.
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, corporates need more sophisticated risk manage managemen mentt inform informati ation, on, advice advice and produc productt struct structure ures. s. The These se and fine fine pricin pricing g on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio
HDFC BANK PRODUCT BANK PRODUCT AND CUSTOMER SEGMENT PERSONAL BANKING
Auto Loan Loan Against Security Loan Against Property Personal loan
• • • • •
Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers
Investment & Insurance
• • • • •
Mutual Fund Bonds Knowledge Centre Insurance Gener eneral al and and Heal ealth Insurance
• • •
Credit card 2-wheeler loan Commercial vehicles finance Home loans Reta Retail il busi busine ness ss banking Tractor loan Workin Working g Capita Capitall Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards
• • •
Credit Card Debit Card Prepaid Card
• • • • • •
------------------------------Forex Services ------------------------------Product & Services Trade Services Forex service Branch Locater RBI Guidelines
NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer e–Monies Electr Electroni onicc Funds Funds Transfer Onli Online ne Paym Paymen entt of Direct Tax
Equity and Derivatives Mudra Gold Bar
Access To Bank
NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch Network • • •
• • • •
Funded Services Non Funded Services Value alue Adde Added d Services Internet Banking
Small and Medium Enterprises • • • • •
Financial Institutions and Trusts
Funded Services Non Funded Services Specialized Services Value added services Internet Banking
• • • • •
BANKS Clearing SubMembership RTGS – submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts
NRI SERVICES Accounts & Deposits • • • • •
Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians
Remittances • • • • • • •
North America UK Europe South East Asia Middle East Africa Others Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs Investment & Insurances • • • •
Mutual Funds Insurance Private Banking Portfolio Investment Scheme
Loans • • • •
Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card
Payment Services • • • • • •
NetSafe BillPay InstaPay DirectPay Visa Money Online Donation
Access To Bank • • • • • • •
NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network
BUSINESS STRATEGY HDFC HDFC
missio mission n
themselves themselves against against
be be "a World Class Indian Bank" , benchmarking
internatio international nal standards standards and best practices practices in terms of product product
offerings, offerings, technology, technology, service service levels, levels, risk management management and
audit & compliance compliance..
objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target target retail and wholesale wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. appetite. Bank is committed committed to do this while while ensuring ensuring the highest highest levels levels of of ethical ethical standards, standards, professiona professionall integrity, integrity, corporate corporate governance governance and regulatory regulatory complianc compliance. e.
Continue Continue to
develop new product and technology is the main main business strategy of the bank. bank. Maintain good relation with the customers is the main and prime objective of the bank.
HDFC BANK business BANK business strategy emphasizes 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. •
Levera Leverage ge our tec techno hnolog logy y platfo platform rm and open open scalea scaleable ble systems systems to delive deliverr
products to more customers and to control operating costs. •
Maintain current high standards for asset quality through disciplined credit risk management.
innovative products and services that attract the targeted customers
and address inefficiencies in the Indian financial financial sector. •
Continue to develop products and and services that reduce reduce bank’s cost of funds.
Focus on high earnings growth with low volatility.
HUMAN RESOURCE The Bank’s Bank’s staffing staffing needs continued continued to increase increase during the year particular particularly ly in the retail banking businesses in line with the business growth. Total number of employees increased increased from
as of March31,2 March31,2006 006 to 21477 as of March March 31, 2007. The Bank
continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Bank’s employee stock option scheme so far covers around 9000 employees.
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Depo Deposi sitt pr prog ogra ram m has has be been en rate rated d 'CAR 'CARE E AAA AAA (FD) (FD)'' [T [Tri ripl plee A] by CARE CARE,, whic which h repr repres esen ents ts inst instru rume ment ntss cons consid ider ered ed to be "of "of the the be best st qu qual alit ity, y, carr carryi ying ng ne negl glig igib ible le investment risk". CARE has also rated the bank's Certificate of Deposit (CD) program "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 "tAAA ( ind )" rating to the Bank's deposit program, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRIS CRISIL IL has has assi assign gned ed the the rati rating ng "AAA "AAA / Stab Stable le" " for for the the Bank Bank's 's Perp Perpet etua uall Debt Debt programme and Upper Tier II Bond issue. 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 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 wealth cre creati ation on for all its stakeh stakehold olders ers while while adopti adopting ng sound sound corpor corporate ate govern governanc ancee practices is the highest.
RECENT DEVELOPMENT DEVELOPMENT
The Reserve Bank of India has approved the scheme of amalgamation of Centurion effect from May 23, 2008.All 2008.All the Bank of Punjab Ltd. with HDFC Bank Ltd Bank Ltd. with effect branches of Centurion Bank of Punjab will function as branches of HDFC Bank with effect from May 23, 2008. 2008. With RBI’s RBI’s approval, all requisite statutory and and regulatory approvals for the merger have been obtained. obtained.
The combined entity would have a nationwide network of
1167 branches; a strong
deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size ofthe combined entity would be over Rs.1, 63,000 crores.
Merger with Centurion Bank of Punjab Limited On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholder shareholderss of the Bank approved approved the issuance issuance of one equity share of Rs.10/Rs.10/- each of Limited for every every 29 equity equity shares shares of Re. 1/- each held in Centurion Centurion HDFC Bank Limited Bank of Punjab Limited. This is subject s ubject to receipt of Approvals from the Reserve Bank Bank of India, India, stock stock exchan exchanges ges and Oth Other er req requis uisite ite statut statutory ory and regula regulator tory y authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants warrants convertibl convertiblee into equity equity shares shares at the rate of Rs.1,530.1 Rs.1,530.13 3 each to HDFC Limited Limited and/or and/or other other promoter promoter group group compan companies ies on prefe preferenti rential al basis, basis, subject subject to final regula regulator tory y approv approvals als in this this regard regard.. The Shareh Sharehold olders ers of the Bank Bank have have also also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.
Promoted Promoted in 1995 by Housing Housing Developme Development nt
Corporatio Corporation n (HDFC), (HDFC), India's India's
leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial financial products products and and services services to its over 11 million million customers customers across across hundre hun dreds ds
of Indian Indian citie citiess using using multip multiple le distri distribut bution ion channels channels includ including ing a pan-Indi pan-India a
network of branches, ATMs, phone banking, net banking and mobile banking. Within a relativel relatively y short span of time, the bank has emerged as a leading leading player in retail retail banking, wholesale banking, and treasury operations, its three principal business segments. The bank's competitive strength clearly lies in the use of technology and the ability to deliver worldworld-cla class ss service service with rapid rapid response response time. time. Over Over the last 13 years, years, the bank bank successfully gained market share in its
target customer franchises while maintaining
healthy profitability and asset quality.As on March 31, 2008, the Bank had a network of 761 branch branches es and and 1,977 1,977 ATMs ATMs in 327 cities. cities. For the year year ended March March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the correspondi corresponding ng year ended
March March 31, 2007. As
March March 31, 2008 total total deposits
were INR 1007.69 1007.69 billion,(R billion,(Rs.100, s.100,769 769 crore) crore) up 47.5% over the correspondi corresponding ng year ended March 31, 2007. Total balance sheet size size too grew by 46.0% to INR 1,331.77 1,331.77 billion
(133177 (133177 crore). crore). Leading Leading Indian and internatio international nal Publicati Publications ons have recognize recognized d the bank for its performance and quality.
Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves serves individual individual consumers, consumers, small and medium medium businesses businesses and large corporati corporations ons with a full range of financial financial products products and services services for investing, investing, lendin lending g
and advice advice on financia financiall planni planning. ng. The bank offers offers its customer customerss an array of
wealth management products such as mutual funds, life and general insurance and has established established a
leadership leadership 'position' 'position'.. The bank is also a strong strong player player in foreign foreign
exchange exchange services, services, persona personall loans, loans, mortgage mortgagess and agricult agricultural ural loans. loans. Additi Additionall onally y the bank offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion Centurion Bank of Punjab merged with with Lord Krishna Bank (LKB), post obtaining all requisite requisite statutory statutory
This merger merger has
further furth er
strengthened the geographical reach of the Bank in major towns and cities across the country, country, especially especially in the State of Kerala, Kerala, in addition addition to its existing existing dominance dominance in the northern part of the country. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major major Indian Indian stock stock exchan exchanges ges,, the Luxembourg
shares shares are also listed listed on the
Awards and Achievements - Banking Services
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian realis ised ed that that only only a sing single le-m -min inde ded d focu focuss on pr prod oduc uctt qu qual alit ity y and and serv servic icee Bank". We real
excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.
2007 One of India's "Most Innovative Companies" Business Today-Monitor Group survey
'Corporate Best Bank' Award Dun & Bradstreet – American Express Corporate Best Bank Award 2007
'Best Corporate Social Responsibility Practice' Award The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007
Best Bank Award in the Private sector category. Outlook Money & NDTV Profit
Best Bank in India. Business Today
One of Asia Pacific's Best 50 companies. Forbes Magazine
Best Domestic Commercial Bank Asiamoney Awards
"Most Customer Responsive Company - Banking and Financial Services Economic Times - Avaya Global Connect Customer Responsiveness Awards
One of India's Most Respected Companies Companies Business World
Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe Forbes Global
There have been some other proud moments as well: o
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
Asia money magazine has named us "Best Commercial Bank in India 2002".
Leading Leading Indian business magazine magazine Business India named us "India's Best Bank" in 2000.
PROFILES OF DIRECTORS
Mr. Jagdish Capoor
Mr. Aditya Puri
Mr. Keki M. Mistry
Mr. Vineet Jain
Mrs. Renu Karnad
Mr. Arvind Pande
Mr. Ashim Samanta
Mr. C M Vasudev
Mr. Gautam Divan
Dr. Pandit Palande
Mr. Paresh Sukthankar
Mr. Harish Engineer
BOARD COMMITTEE The Board has constituted committees of Directors to take informed decisions in the best interest of the Bank. These committees monitor the activities falling within their terms of reference. Various committees of the Board were reconstituted during the year due to induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are as follows:
The Board's Committees are as follows:
Audit and Compliance Committee
Investors' Grievance (SHARE) Committee
Risk Monitoring Committee
Credit Approval Committee
The Premises Committee
Fraud Monitoring Committee
Customer Service Committee
HDFC bank branches in Jaipur
HDFC Bank Jaipur branch Address D - 54, Siddhi Vinayak, Ashok Marg, C Scheme, Jaipur - 302001 Rajasthan Tel 0141-2371215/2371919 Fax 0141-361949 ATM YES,Lockers YES Weekday : Monday to Friday, Timings : 9.30 am to 3.30 pm Weekend : Saturday, Timings : 9.30 am to 12.30 pm WeeklyOff : Sunday HDFC Bank Johari Bazar branch Address Shop # 85 - 86, Pandya Bhawan, Johari Bazar, Jaipur - 302003 Rajasthan Tel 0141-5172100/5172172 Fax 0141-5172111 ATM YES,Lockers NO Weekday : Monday to Friday, Timings : 11.00 am to 5.00 pm Weekend : Saturday, Timings : 11.00 am to 2.00 pm WeeklyOff : Sunday HDFC Bank Tonk Road Jaipur branch Address A-1, Shree Plaza, Lal Kothi, District Shopping Centre,
Tonk Road Jaipur - 302015 Rajasthan Tel 0141-5115507 Fax 0141-5115549 (Telefax) ATM YES,Lockers YES Weekday : Monday to Friday, Timings : 10.00 am to 4.00 pm Weekend : Saturday, Timings : 10.00 am to 1.00 pm WeeklyOff : Sunday HDFC Bank Vaishali Nagar branch Address 10 - B, Tarang Apartments, Gautam Marg, Near Amrapali Circle, Vaishali Nagar, Jaipur - 302021 Rajasthan Tel 0141-5110413/0141 – 5110412 Fax 0141-5110414 ATM YES,Lockers NO Weekday : Monday, Wednesday to Saturday, Timings : 9.30 am to 3.30 pm Weekend : Sunday, Timings : 10.30 am to 1.30 pm WeeklyOff : Tuesday HDFC Bank Vidyadhar Nagar branch Address Times Square, 10, Central Spine, Vidhadhar Nagar, Jaipur - 302023 Rajasthan Tel 0141 - 5170556 Fax 0141 - 5170555 ATM YES,Lockers NO Weekday : Monday to Friday, Timings : 9.30 am to 3.30 pm
Weekend : Saturday, Timings : 9.30 am to 12.30 pm WeeklyOff : Sunday
Current Account Product
Account features •
All services for all customers- the only difference is pricing
Provide payment solutions to the customer
Payment leads to balance build-up
Promotes closed-user-group (CUG)
Try to grab maximum share of customer business
HDFC Bank HDFC Bank PLUS TRADE
PREMIUM Current Account
REGULAR Current Account
825, 221, 227, 232, 830, 819, 826,279*, 843*
824, 256, 832, 820, 810
823, 202, 206, 833, 814, 827
821, 200, 205, 208, 219, 220, 250,835, 831, 813, 811, 229, 226
Average Quarterly Balance (AQB)
Less than Rs.50,000 Rs.6,000
NonMaintenanc e Charges (per Rs.50,000 & Qaurter) above Rs.1,500
Mode of calculating AQB
Average of daily closing balances of each day spread over a period of three months.
Cheque Book Charges (Issued by Bank)
HDFC Bank HDFC Bank PLUS TRADE
PREMIUM Current Account
REGULAR Current Account
300 cheque leaves Free per month. Charges Rs 2/- per leaf beyond 300 leaves
200 cheque leaves Free per month. Charges Rs 2/- per leaf beyond 200 leaves
100 cheque leaves Free per month. Charges Rs Charges Rs 2/- per leaf 2/- per leaf beyond 100 leaves
Account features Features Local cheques/A/c to a/c funds transfer transaction s at home branch location (Payment /Collection)
HDFC Bank PLUS
HDFC Bank TRADE
PREMIUM Current Account
REGULAR Current Account
Anynhwere Transactions (except Dahej) A/c to A/c Fund Transfer within HDFC Bank - anywhere transaction s
Rs.15/- per transaction
Rs.15/- per transaction
Payments & Collections at HDFC Bank Locations
Free up to Rs.100 lacs per month, beyond which charges @ Rs. 0.50/1000, min Rs. 25
Free up to Rs.50 lacs per month, beyond which charges @ Rs. 0.50/1000, min Rs. 25
Free up to Rs. 25 lacs per month, Charges at Rs.1.50/100 0, min Rs. 25
Charges at Rs.1.50/1000 , min Rs. 25
All transaction s are subject to a maximum of 250 transaction s per month, beyond which Bulk charges @ Transaction Rs.5/- per Charges transaction would be levied. Includes all Local / Anyhwere clearing and transfer transaction s
All transactions are subject to a maximum of 150 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied.Includ es all Local / Anyhwere clearing and transfer transactions
All transactions are subject to a maximum of 100 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anyhwere clearing and transfer transactions
All transactions are subject to a maximum of 100 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied.Includ es all Local / Anyhwere clearing and transfer transactions
Cash Txn: Deposit
HDFC Bank PLUS
HDFC Bank TRADE
PREMIUM Current Account
REGULAR Current Account
Cash DepositHome Branch Location
Free upto Rs.10 lacs per month or 50 transactions which ever is lower, Deposit in excess of Rs.10 lacs or 50 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within homebranch city subject to limit of Rs.100,000/per day)
Free upto Rs.5 lacs per month or 40 transactions which ever is lower, Deposit in excess of Rs.5 lacs or 40 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.50,000/per day
Free upto Rs.3 lacs per month or 25 transactions which ever is lower, Deposit in excess of Rs.3 lacs or 25 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.25,000/per day)
Free upto Rs.2 lacs per month or 25 transactions which ever is lower, Deposit in excess of Rs.2 lacs or 25 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.10,000/per day)
Cash Deposit -Non Home location
Maximum Rs.100,000/per day. Charges @ Rs. 3/1000, min Rs. 50
Maximum Rs.50,000/per day. Charges @ Rs. 3/1000, min Rs. 50
Maximum Rs.25,000/per day. Charges @ Rs. 3/1000, min Rs. 50
Transaction Limits P r o d u cD t e p o s i Ht o o r m e B r a n c R e g u l a Sr lef N o lim T h i r d p aN r ot y l i m
P r e m i u Sm e l f N o lim T h i r d p aN r ot y l i m
T r a d e S e lf N o lim T h i pr da r t yN o l i m
P lu s
S e lf N o lim T h i r d p aN r ot y l i m
C a s h D e p o s it N o - hn o m e b r a n c Nh o i- hn o t mh ee l o c a h s a m e c i t -yc i (t I yn ) t r (a I n t e r c i t y ) i t M a x i m u m R s . 1 N0 o, 0t 0a 0l l op we er d it d a y p e r a c c o u n t ( ir r e s p e c t iv e o f s e lf o r t h ir d p a r t y ) i t M a x i m u m R s . 2 M5 ,a0 x 0 i m0 up me r R s i t d a y p e r a c c o u n pt e r d ar y a pc ec o u ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e t h ir d p a r t y ) t h ir d p a r t y ) i t M a x i m u m R s . 5 M0 ,a0 x 0 i m0 up me r R s i t d a y p e r a c c o u n pt e r d a y p e r a ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e t h ir d p a r t y ) t h ir d p a r t y ) i t M a x i m u m R s . 1 M0 0a ,x0 i m0 0u m R s i t p e r d a y p e r a c c po eu r n dt a y p e r a ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e t h ir d p a r t y ) t h ir d p a r t y )
Cash Deposit Charges
P ro d u c t
D e p o s ito r H o m e Branch
C a s h D e p o s it N o n-h o m e b r a n c h i n t h eN o n- h o m e l o c a t i o n s a m e c i ty t y ( I n tr t-city) ra (Intercity)
Self F r e e u p t o R s . 2 0 0 , 0 0 0 p e r m o n t h o r 2 5N o t a l lo lo w e d io n s p e r m o n t h . C h a r g e s Third party t r a n s a c t io R s . 2 / 1 0 0 0 , m i n R s . -5 0per / transa ction bey ond free limits. (Irrespective ( Irrespective of cash dep osited by se lf or third thir d party) P r e m i u m Self F r e e u p t o R s . 3 0 0 , 0 0 0 p e r m o n t h o r 2 5R s . 3 / 1 0 0 0 io n s p e r m o n t h . C h a r g e s (Irrespe (Ir respe ctive Third party t r a n s a c t io R s . 2 / 1 0 0 0 , m i n R s . -5 0per / transaction deposited by bey ond free limits. I r re r(e s p e c t i v e o f c a s h thir thirdd p arty) dep osited by se lf or third thir d party) Trade Self F r e e u p t o R s . 5 0 0 , 0 0 0 p e r m o n t h o r 4 0R s . 3 / 1 0 0 0 io n s p e r m o n t h . C h a r g e s (Irrespe (Ir respe ctive Third party t r a n s a c t io R s . 2 / 1 0 0 0 , m i n R s . -5 per 0 / transation c deposited by bey ond free limits. (Irrespective ( Irrespective of cash thir thirdd p arty) dep osited by se lf or third thir d party) Plus Self F r e e u p t o R s . 1 0 , 0 0 , 0 0 0 p e r m o n t h o r 4R0s . 3 / 1 0 0 0 io n s p e r m o n t h . C h a r g e s (Irrespe (Ir respe ctive Third party t r a n s a c t io R s . 2 / 1 0 0 , m i n R s . 5 -0 /per transaction deposited by bey ond free limits. (Irrespective ( Irrespective of cash thir thirdd p arty) dep osited by se lf or third thir d party)
of cash s elf or
of cash s elf or
of cash s elf or
Account features Features Cash Withdrawa l-Home Branch
Cash Txn: Withdrawal PREMIUM Current Account
REGULAR Current Account
Free at Home Branch
Free at Home Branch
Free at Home Branch
Free cash withdrawal s upto Rs.50,000/per day, beyond which charges @ Rs.2/1000, min Rs. 50/- (Only for incrementa l amount), Third party cash withdrawal allowed only up to maximum Rs. 50,000/per transaction .
Free cash withdrawal s upto Rs.25,000/per day, beyond which charges @ Rs.2/1000, min Rs. 50/- (Only for incrementa l amount), Third party cash withdrawal allowed only up to maximum Rs.50,000/per transaction .
Cash withdrawal s charges @ Rs.2/1000, min Rs. 50 Third party cash withdrawal allowed only up to maximum Rs. 50,000/per transaction .
HDFC Bank HDFC Bank PLUS TRADE Free at Home Branch
Free cash withdrawal s upto Rs.50,000/per day, beyond which charges @ Rs.2/1000, Cash min Rs.50/Withdrawa (Only for l-Non incrementa Home l amount), BranchThird party Intracity & cash Intracity withdrawal allowed only up to maximum Rs. 50,000/per transaction .
P lus C ur urrr ent Free Fr ee A/ A /c to t o A/ A/
Bank basically means business and in business collection of raw data allows the managers to see the real scenario and then take a decision as per the data obtained. There are several implications in this statement: •
The bank gets a clear picture of the ULIP Market scenario.
They can examine the available information in the form of data to make a decision
They can even get a clear picture of the scenario or potential of the Savings Account and ULIP’s of their banks in comparison to other banks.
The information can only be gathered by data collection and then analyzing the available data. Therefore, it can be said that the data collection is an important part of the project.
Data Raw numbers
The projected objectives were considered and as per the requirement a market survey was done. Procedure:
The procedure that followed can be enlisted as below: •
Reading about the product
Deciding on the objective to proceed.
Developing Survey instruments
Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire.
Finally analyzing the data of various Geographic areas and trying to study with the other players.
1. Gainin Gaining g knowle knowledge dge abou aboutt the the produc product: t: Reading about the product was the first step undertaken. This gave not only in depth knowledge about about what what is been been offe offere red d by othe otherr play player erss but also also prov proved ed usef useful ul whil whilee devel developi oping ng the the questionnaire. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below:
Research objectives are being
information objectives. objectives.
The Appropriate data collection methods have been determined
The information required by each objective is being determined.
Specific Questions/Scale Measurement format is developed.
Question/Scale Measurements is being evaluated.
The number of information needed is being determined.
The questionnaire and layout is being evaluated.
Revise the questionnaire layout if needed.
The Questionnaire format is being finalized.
2. Cust Custom omer er Surv Survey ey:: The people play an important part as a clear perception of people about the product can be estimated and known. Studying the need levels of the people regarding the Insurance product can be observed. It was very useful in knowing about abo ut the requirements of the people.
3. Referred Referred to to brochures brochures and websit websites es of competitor competitors: s: To understand the competitors product brochures and websites of various players were referred and a competitive analogy of all a ll the information is been made.
Research Design: A two stage Research was conducted:
1. Secondary Research: Data was collected from websites and catalogues to understand the product of the different players
2. Primary Research: A Primary Research was conducted: The questionnaire was prepared for the companies and following areas covered: •
Features offered by different banks
Reasons for their invesment
Desirable features of the product.
Sampling Plan: Elements: The target population of the study included the general population above the age of 21 yrs. It will further be based on Stratified Random Sampling.
Sample size: 100 people.
DATA COLLECTION The final draft of the questionnaire (see Appendix) was prepared on the basis of the observations from from the pilot study. study. These were then finally filled filled by 1000 customer, customer, for the conclusive study. Finally the data collected was fed into the data analysis software- SPSS, to be analyzed using statistical techniques. Types of Primary Data collected: •
Socioeconomic Characteristics: Characteristics:
socioeconomic characteristics are sometimes called “states of being” in that they represent the type of people. The factors on which we are working are occupa occupatio tion. n. Monthl Monthly y trans transect ection ion is also also an impor importan tantt param paramete eterr bu butt it is difficult to verify. Although the amount of money that business unit earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine. •
Through the questionnaire we have tried to get hold of business preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of businessmen.
Through the questionnaire we have tried to find the hidden need or want of busi bu sine ness ssme men n and and have have trie tried d to find find if thes thesee peop people le can can be tapp tapped ed as the the potential customer for HDFC Bank. •
Behavior: Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions.
Obtaining the Primary Data: The data collection was primarily done through communication. Comm Commun unic icat atio ion n invo involv lves es qu ques esti tion onin ing g resp respon onde dent ntss to secu secure re the the desi desire red d inform informati ation, on, using using a data data collec collectio tion n instru instrumen mentt called called que quest stion ionnai naire. re. The questions were in writing and so were the responses. Versatility:
It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details
Question 4 Monthly Transection
70% 60% 50% 05L- 20L 40%
20L - 40L 40L - Above
30% 20% 10% 0% 05L- 20L
20L - 40L
40L - Above
Question 5 Do you have a Current Account?
Question 6 With Which Bank
Kotak Mahindra Mahindra Bank, 3% HDFC, 33% Co- Operative Operative Bank, 48% ICICI, 5% Nationalized, 31%
HD FC FC
IC IC IC I
Nati on onali ze zed
C oo- Operati ve ve B an ank
Kotak Mahi nd ndra B an ank
Question 7 Which Factors do you consider for opening a Current Account 1200 1000 800 600 400 200 0
r t s d p g g t y s i u e c e i d e a r l u e o k u q i r n k i n k i n q c C p b e a o i n n i l e t e h i a P h b D s s C a y B a B a t B h P u e e c e / e r e C D e s l e m q i c e D a P u N b A t D C o h e F r i m A C M i n M
T E F N
S T G R
Question 8 Which mode of transaction do you avail frequently?
Pay Order, 12%
Pay Or Order
Question 9 Which types of transaction do you made
Inter city, 33% Both, 52% 15% Outside City ,
Question 10 your bank assist you in case of any problem
Almost all the Banks offer similar features and facilities with their Savi Saving ngss acco accoun unts ts,, th ther eref efor oree for for exis existi ting ng cu cust stom omer erss of Curr Curren entt Account of any Bank to shift to another Bank; this is very rarely the criteria or reason.
The level of service in terms of delivering whatever is promised, fast response in case of problems, is the most important benefit that the customers seek, from the Bank they have a Current Account with.
Network reach and visibility of a Bank is a very important criterion for the custom customer er while while openin opening g a Curre Current nt Accou Account. nt. We can also also conclude from our analysis that network reach in terms of Branches and ATMs ATMs is is directl directly y proportio proportional nal
to the market market share share in case case of
Private Players. 4.
In case of a new customer, if a bank approaches it first for opening a Curr Curren entt Acco Accoun untt with with th them em,, th then en th ther eree is a good good ch chan ance ce for for th thee bank of getting many future businesses and cross sales from the deal.
5. Aggres Aggressiv sivee Marke Marketin ting g is the key key to incre increasi asing ng the market market share in this area, since the market has a lot of potential both in terms of untapped market .
RECOMMENDATIONS RECOMMENDATI ONS & SUGGESTIONS
Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customer’s product selection convenient.
2. Contra Contract ct Sales Sales Execut Executive ive (CSE) (CSE) should should rec recomm ommend end right produc productt to the right customer so as to ensure a high degree of satisfaction among the customer.
3. The bank needs needs to make people people aware aware about there there products products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of thee pe th peop ople le did did not not even even know know abou aboutt th thee conc concep ept, t, be bene nefi fits ts and and features of its saving accounts.
Thee bank Th ank shou shoulld also also tar target get smal smalll bu bussines inesss unit nit for whom hom maintenance of the AQB is not a problem as this segment is not much penetrated.
Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this
service what ever the reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks .
6. Quality of service has been rated highly important by all demofi demofigur gureic eic factor factorss as a reason reason for bankin banking g with with a partic particula ularr bank, Standard Chartered needs to improve the services provided to its existing customers before attracting more in the future and use use word word of mout mouth h as a pr prom omot otio iona nall tool tool to incr increa ease se th thee sale saless potential of its savings account.
Some of the limitations of the project are listed as below:
The time bound period is the major limitation limitation in research projects. projects.
2. Due to the financ financial ial and time constra constraint intss a cluste clusterr analys analysis is of the population so as to get better results was not feasible. 3. The re researc search h conduct conduct in jaipur jaipur city only. only. 4. It was difficult difficult to break break the ice with the common common people people initially initially.. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc. 5. To conv convin ince ce th thee pe peop ople le for for a pr prop oper er inte interv rvie iewi wing ng pr proc oces esss is also also difficult. 6. Compilati Compilation on of data on competitor competitor analysis analysis was difficult difficult due to nonavailability of correct information.
7. The figures figures have have been taken taken as approxima approximations tions..
C 1. Name of Reaspondent_ Reaspondent_________ ________________ _______________ _______________ ________________ _______________ _______________ _____________ _____ 2. Contact Contact Person______ Person_____________ _______________ _______________ _______________ ________________ _______________ _______________ ______________ ______ 3. Contact Contact No._________ No.________________ _______________ ________________ _______________ _______________ ________________ _______________ _____________ ______ 4. Monthly Monthly Transaction_ Transaction_________ _______________ _______________ ________________ _______________ _______________ ________________ ______________ ______
5. Do you you Hav Havee Curr Current ent Acco Account unt?? (a) Yes (b) No 6. If Yes Which bankso ICICI HDFC o Kotak Mahindra Bank o o Nationalized Banks_____________________________________________________ o Co-Operative Banks____________________________________________________ 7
Which Which Factor Factorss do you you consid consider er for for openin opening g a Curren Currentt Account Account o o o o o o
Accessibility Minimum Balance DD/ Pay Order Free Cheque Debit Card Cash Deposit
o o o o o o
Cheque Pick up Net Banking Mobile Banking At Par Cheques NEFT RTGS
Whic Which h mode mode of tran transa sact ctio ion n do you you avai availl freq freque uent ntly ly?? (a) Cheque ( b) DD (c) Pay Order
Which type of transaction do you made (a) Inter city (b) Intra city
Does your bank assist assist you in case of any problem (a) Yes (b) No
11. What are the additional Benefits Be nefits do you expect from a Current Account? Acco unt? __________________________________________________________________________________ __________________________________________________________________________________