Ajinkya Hdfc Sip Report.docx

SUMMER PROJECT REPORT

“Segmentation and Penetration” Submitted to: Dr. Ambedkar Institute of Management Studies & Research, Deeksha Bhoomi, Nagpur Submitted by: Mr. Ajinkya Sudhir Belkhede Company Guide: Mr. Mohammed Imran Faculty Guide: Prof. Sushant Waghmare

August 2018

CERTIFICATE This is to certify that the investigation described in this report titled “Segmentation and Penetration” has been carried out by Mr. Ajinkya Sudhir Belkhede during the summer internship project. The study was done in the organisation, HDFC Bank, in partial fulfillment of the requirement for the degree of Master of Business Administration of R. T. M. Nagpur University, Nagpur. This work is the own work of the candidate, complete in all respects and is of sufficiently high standard to warrant its submission to the said degree. The assistance and resources used for this work are duly acknowledged.

Dr. Sudhir S. Fulzele (Director)

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CERTIFICATE

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ACKNOWLEDGEMENT It is a matter of pride and privilege for me to have done a summer internship project in “HDFC Bank” and I am sincerely thankful to them for providing this opportunity to me. I am thankful to “Mr. Mohammed Imran” for guiding me through this project and continuously encouraging me. It would not have been possible to complete this project without his / her support.

I am also thankful to all the faculty members of Dr. Ambedkar Institute of Management Studies & Research and particularly my mentor “Prof. Sushant Waghmare” for helping me during the project.

Finally, I am grateful to my family and friends for their unending support.

(Name and Signature of the Student)

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Index Sr. No.

CONTENTS

Page No

PART 1 1) 1.1 1.2 1.3 1.4 1.5 1.6 2) 2.1 2.2 2.3 2.4 A) R1 R1.1

R2

3) 3.1 3.2 B) C) D)

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Company Profile Brief History Management Structure Achievements, Awards and Latest Developments Products & Services Offered Performance & Market Share SWOT Analysis Sector Overview Sector Size and Major Players Regulations and Regulatory Bodies Problems Faced by the Sector Future Potential of the Sector PART 2 Actual Work Done Week 1-2 Retail Sector Week 3-4 Health Care sector Week 5-6 Education Sector Week 7 Entertainment Sector Week 8 Analysis of Banking Approach for the Customer (Secondary Research) Lead Generation and Sales Overall Leads Generation Throughout all the Sectors Sales in Operating Area Findings and Suggestions Conclusion Bibliography

6 8 9 10 12 13 14 15 20 22

26 27 28 29 30

33 34 35 36 37

PART 1 1)COMPANY PROFILE

1.1 BRIEF HISTORY HDFC Bank Limited is an Indian banking and financial services company. In 1994 HDFC Bank was incorporated, with its registered office in Mumbai, India, its first corporate office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union Finance Minister, Manmohan Singh. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. As of March 31, 2018, the Bank's distribution network was at 4,787 branches across 2,691 cities. All branches are linked online on a real-time basis. Customers across India are also serviced through multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. Being a clearing / settlement bank to various leading stock exchanges, the Bank has branches in center’s where the NSE / BSE have a strong and active member base. The Bank also has a network of 12,635 ATMs across India. HDFC Bank's ATM network can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders. Times Bank Limited (owned by Bennett, Coleman &Co./The Times Group) was merged with HDFC Bank Ltd, on February 26, 2000. This was the first merger of two private banks in India. On May 23, 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the Master Card Maestro debit card as well. Moreover, it is also declared as the largest bank in India by Market Capitalization in February 2017.

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Vision The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank’s business philosophy is based on four core values such as: 1. Operational excellence 2. Customer focus 3. Product leadership 4. People The objective of the bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all customer requirements. The bank’s vision is to be the customer driven best managed enterprise that enjoys market leadership in providing housing related finance.

Mission To provide a package of attractive financial services for housing purposes through a competent and motivated team of employees using the state of the art technology to maintain financial stability and growth of the organization whilst contributing to the national goal of providing decent housing to all.

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1.2 MANAGEMENT STRUCTURE HDFC Bank's Board of Directors comprises eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC Ltd. are also on the Board. Various businesses and functions in the Bank are headed by senior executives with work experience in India and abroad. They report to the Managing Director. The Bank is focused on recruiting and retaining the best talent in the industry as it believes that its people are a competitive strength. Aditya Puri Paresh Sukthankar Kaizad Bharucha Abhay Aima Arvind Kapil Ashima Bhat Ashish Parthasarthy Ashok Khanna Bhavesh Zaveri Chakrapani V Jimmy Tata Munish Mittal Navin Puri Neil Francisco Nirav Shah Nitin Chugh Parag Rao Philip Mathew Rajesh Kumar Rakesh Singh Ravi Narayanan Rahul Shukla Sashi Jagdhishan

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Managing Director Deputy Managing Director Executive Director Group Head - Equities, Private Banking, Third Party Products, NRI & International Consumer Business Group Head - Unsecured Loans, Home, and Mortgage Loans Group Head - Finance, Administration & Infrastructure Treasurer Group Head- Vehicle Loans Country Head - Wholesale Banking Operations and Cash Management Products Country Head - Wholesale Banking Operations and Cash Management Products Chief Risk Officer Chief Information Officer Country Head - Branch Banking Group Head - Underwriting and Risk Intelligence and Control Country Head - Emerging Corporates Group, Infrastructure Finance Group & Rural Banking Group Country Head - Digital Banking Country Head - Card Payment Products, Merchant Acquiring Services and Marketing Chief People Officer Group Head, Co-Head - Retail Risk Group Head - Investment Banking, Private Banking, Capital Markets and Financial Institutions Country Head - Branch Banking & Retail Trade Forex Group Head - Corporate Banking & Business Banking at HDFC Bank Chief Financial Officer

1.3 ACHIEVEMENTS, AWARDS AND LATEST DEVELOPMENTS 2018 NASSCOM

AI

Game

Changer Innovative Application in AI - Virtual Agent Engine

Awards 2018

Institutional Investor 2018 All-Asia -Best IR Professional: 2nd Rank among banks in Asia (ex-Japan)

Executive Team - Survey

-Best CEO: 2nd Rank - Best CFO: 1st Rank -Best IR Company: 3rd Rank BrandZ's Top 100 Global Brands HDFC Bank featured for the fourth time in the BrandZ's Top 100 Global Brands List

List

14th Visa Asia Pacific Security India and South Asia Champion Security Award 2018

Summit National

Payments

Excellence HDFC Bank wins NPCI National Payments

Awards 2018

Excellence Awards

Barron's World's Top 30 CEOs

Mr. Aditya Puri in Barron's Top 30 Global CEOs for 4th year - Growth Leaders Category

Dun & Bradstreet Corporate Award Best Bank 2018 Federation

of

Indian

Export Best Bank: Export Finance - Non MSME

Organization (FIEO) Business Today Best Bank Awards

-Best Bank of the Year -Best in Innovation -Best Large Bank -Fastest Growing Large Bank

Dun & Bradstreet BFSI Awards 2018 India's Leading Bank - Private sector Euro money Private Banking and - Net-worth-specific services (High Net Worth Wealth Management survey 2018

Clients US $ 5-30 MN) -Asset Management

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1.4 PRODUCTS & SERVICES OFFERED

Products HDFC Bank caters to the banking requirements of every individual by offering a host of products and services. The following products and services are offered by the bank under its Retail Banking Solution:

Accounts & Deposits Under this head, the HDFC Bank offers a range of accounts and deposit accounts to meet everybody’s requirements be it a simple saving account or a salary account, a current account or a premier account, a fixed deposit account or a recurring deposit account, all types of accounts are available with the HDFC bank.

HDFC Bank Savings Account Everyone needs a savings account to store away the surplus cash. The bank offers savings accounts under various types starting from basic accounts to premium accounts with variety of features. The interest rates on the Savings Account are 4% p.a. which is calculated daily on the end of day balance. 10 | P a g e

HDFC Bank Salary Accounts The bank offers multiple types of salary accounts to suit the needs of all types of corporates. The salary accounts offer various features to the accountholders like free insurance coverage. The following types of loans are available with the bank: • Personal Loan • Home Loan • Two-Wheeler Loan • Loan against Assets • Government Sponsored Programs • Business Loan • Car Loan • Gold Loan • Educational Loan • Rural Loan

Current Accounts Current accounts are required by businessmen and professionals who have regular transactions through the bank. The account deals mainly in liquid deposits and allows unlimited number of transactions every day like funds being withdrawn or cheques being written against the account without worrying about the balance in the account. Professionals, traders, SME businessmen, agricultural businesses can avail various benefits like fund transfers between all HDFC Accounts, free local collections through cheque and fund transfers as well as easy inter-city banking.

Rural Accounts Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural accounts available: • Basic Savings Bank Deposit Accounts – Farmers • Kisan Club Savings Accounts

Loans HDFC bank is a leader in home loan sector and also offers various other kinds of loans at attractive interest rates for various needs of the individuals.

Credit Cards The bank has a wide range of credit cards for customers which promise special offers and privileges on dining, movies, lounge access of airports, etc. The cards also offer Reward Points on every spending made by the cardholder which can be redeemed for attractive offers.

Deposits Individuals who wish to save money for a longer term with a view to earn a higher rate of interest seek to invest money in term deposit accounts which guarantee higher interest rates. HDFC Bank also offers various types of deposit accounts promising high interest rates for customers seeking deposit accounts. 11 | P a g e

1.5 PERFORMANCE & MARKET SHARE

Net Income & Cash from Operations

Operating cash flow is a better metric of a company's financial health for two main reasons. Cash flow is harder to manipulate than net income (although it can be done to a certain degree). Second, "cash is king", a company that does not generate cash over the long term is on its deathbed. Investors can avoid a lot of bad investments if they analyze a company's operating cash flow. Net Income (Income Statement) and Cash from operations (Cash Flow Statement) should ideally be parallel. A consistently falling or negative operating Cash Flow(OCF) despite a rising net profit is a cause for concern because of aggressive accounting techniques or high working capital requirements. An ideal company has a higher operating cash flow than its net profit (income). 12 | P a g e

1.6 SWOT ANALYSIS Strengths:        

Right strategy for the right products. Superior customer service vs. competitors. Great Brand Image. Products have required accreditation. High degree of customer satisfaction. Good place to work Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field.

Weakness: –     

Some gaps in range for certain sectors. Customer service staff need training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff

Opportunities: –      

Profit margins will be good. Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques Provide added-value services.

Threats:      

Legislation could impact. Great risk involved Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors. Lack of infrastructure in rural areas could constrain investment High volume/low cost market is intensely competitive.

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2)SECTOR OVERVIEW 2.1Sector Size and Major Players Sector Size  As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised & well regulated. The financial and economic conditions in the country are far superior to any other country in the world. Credit, market and liquidity risk studies suggest that Indians banks are generally resilient and have withstood the global downturn well.  Indian banking industry has recently witnessed the roll out of innovative banking models like payments and small finance banks. RBI’s new measure can go a long way in helping the restructuring of the domestic banking industry.  The digital payments system in India has evolved the most among 25 countries with India’s Immediate Payment Service(IMPS) being the only system at level 5 in the Faster Payments Innovation Index(FPII).

Market Size 

The Indian banking system consists of 27 public sector banks, 22 private sector banks, 44 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative banks, in addition to cooperative credit institutions. Bank credit grew at 12.64 per cent year-on-year to Rs 85.511 lakh crore (US$ 1,326.78 billion) on May 11, 2018 from Rs 75.91 lakh crore (US$ 1,131.47) on May 12, 2017.

Major Players 1) HDFC Bank 2) State Bank of India 3) ICICI Bank Ltd 4) Axis Bank 5) Kotak Mahindra Bank 6) IndusInd Bank 7) Bank of Maharashtra 8) Yes Bank 9) Punjab National Bank 10)Canara Bank

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2.2 Regulations and Regulatory Bodies Regulatory Bodies 1)Reserve Bank of India (RBI):  Reserve Bank of India is the apex monetary Institution of India.  It is also called the Central Bank of India.  The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934  The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.  Though originally privately owned, since nationalization in 1949, the Reserve Bank of India is fully owned by the Government of India.  RBI is the financial regulator of all the financial institutions like public sector banks, private sector banks, RRBs, Cooperative banks and all type of non-banking financial companies.  The main function of RBI is to control the inflation of the country keeping in mind the growth of the country. 2)Securities and Exchange Board of India (SEBI):  SEBI also form a major part under the financial body of India.  This is a regulator associated with the security markets in Indian Territory.  Established in the year 1988, the SEBI Act came into power in the year 1992. 3)Insurance Regulatory and Development Authority of India (IRDAI):  The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India.  It was formed by an Act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements  It head-quarter is located in Hyderabad  It comprised of the Indian Parliamentary Act and was passed duly by the Indian government.  Insurance Regulatory and Development Authority of India is the regulator of all private sector insurance business and public-sector insurance business in India.  IRDA issues guidelines for various insurance companies.

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4)Pension Fund Regulatory and Development Authority (PFRDA)  Pension Fund regulatory is a pension related authority, which was established in the year 2003 by the Indian Government.  It is authorized by the Finance Ministry, and it helps in promoting income security of old age by regulating and also developing pension funds.  This group can also help in protecting the interest rate of the subscribers, associated with the schemes of pension money along with the related matters.  PFRDA is also responsible for the appointment of different other intermediate agencies like Pension Fund managers. 5)Forward Markets Commission:  It is the chief regulator of the commodity (MCX, UCX, NMCE etc) of the Indian future market  It’s headquarter is located in Mumbai  Working in collaboration with the Finance Ministry.  The main objective of this body is to advise the Central government on matters of the Forwards Contract Act, 1952. Other financial regulatory bodies: National Stock Exchange of India 

In the year 1991 Pherwani Committee recommended to establish National Stock Exchange (NSE) in India.  In 1992 the Government of India authorized IDBI for establishing this exchange.  In National Stock Exchange there is trading of equity shares, bonds and government securities.  National Stock Exchange has achieved world standards. ·Both MIBOR (Mumbai Inter Bank Offer Rate) and MIBID (Mumbai Inter Bank Bid Rate) are two new references rates of the National Stock Exchanges. These two new reference rates were launched on June 15, 1998 for the loans of interbank call money market. Bombay stock exchange of India: 

Bombay stock Exchange is one of the oldest stock exchanges in Asia was established in year 1875 in the name of “The Native Share and Stock Broker Association”.  BSE is located in Mumbai.  It got recognition in 1956 from the Government of India under Securities Contracts (Regulation) Act, 1956. Foreign Investment Promotion Board   

The Foreign Investment Promotion Board is a special agency in India dealing with the matters relating to Foreign Direct Investment. It was set up with a view to raise the volume of investment to the country. ·The objective of the board is to create a base in the country by which a larger volume of investment can be drawn to the country. On 18 February 2003, the board was transferred to the Department of Economic Affairs (DEA) Ministry of Finance.

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Regulations:

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Functions       

Monetary Authority Issuer of Currency Banker and Debt Manager to Government Banker's bank and supervisor Regulator of the Banking System Regulator and Supervisor of the Payment and Settlement Systems Developmental Role

Banker’s Bank & Supervisor        

The RBI holds a part of the cash reserves of banks, Lends them funds for short periods, and Provides them with centralized clearing and cheap and quick remittance facilities It provides the following functions: Payment and settlements of inter-bank obligations and fund transfer between banks. Deposit insurance service to the banks Cash reserve ratio (CRR) Acting as a lender of last resort

Regulator of the Banking System The bank’s regulatory functions relating to banks like  Covering their establishment (i.e. licensing),  Branch expansion,  Liquidity of their assets,  Management and methods of working,  Amalgamation, reconstruction and liquidation  The control by the bank is exercised through periodic inspection of banks and follow-up action and by calling for returns and other information from them.  Providing the regulation and supervision works like  Capital requirements,  Provisioning,  Onsite supervision,  Liquidity norms,  Asset quality settings,  Income recognition norms

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Instruments Used to Control Banks      

Cash Reserve Ratio (CRR) Statutory Liquidity Ratio (SLR) Repo Rate Reverse Repo Rate Open Market Operations Marginal Cost of Funds Lending Rate (MCLR)

Cash Reserve Ratio & Statutory Liquidity Ratio     

Every commercial bank has to keep certain minimum cash reserves with the RBI RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate. Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances Can increase or decrease the reserve requirement depending on whether it wants to affect a decrease or an increase in the money supply.

Open Market Operations & MCLR     

refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system Purchases inject money into the banking system and stimulate growth, while sales of securities do the opposite and contract the economy. The incremental cost of borrowing more money to fund additional asset purchases or investments. Marginal cost funds are the cost of funds one incurred at the boundary. That is the cost of funds one encountered the last fund borrowed. MCLR was brought in to attach the effects of repo Rate to the base rate of banks.

Repo & Reserve Repo Rate   

Repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds. Repo rate is used by monetary authorities to control inflation. Reverse repo rate is the rate at which RBI borrows money from commercial banks within the country. An increase in the reverse repo rate will decrease the money supply and vice-versa

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2.3PROBLEMS FACED BY THE SECTOR  Bad loans At nearly Rs10 lakh crore, India’s pile of bad loans is bigger than the gross domestic products of at least 137 countries. But so far, the RBI’s attempts to reduce Non-Performing Assets (NPAs) in the banking sector have yielded little result. The share of gross NPAs in India could inch up to 10.2% by March 2018, from 9.6% in March 2017, according to the FSR. In September 2016, gross NPAs were at 9.2%. Currently, the worst-hit are the state-owned banks, which dominate the Indian banking system. In March 2017, the average bad loans of PSBs stood at 75% of their net worth. These bad loans are squeezing banks’ profitability and capital positions, threatening the health of some of India’s biggest banks. In the report, the RBI cautioned that the situation could get worse with any unforeseen stress in the economy.

 Cyber threats An estimated 95% of transactions in India are paid for in cash but with the growing penetration of computers and smartphones, and increasing access to the internet, Indians are taking to digital channels for their banking needs. Cybercrime is becoming a greater threat as a result. The FSR labelled cyber-attacks as a high-risk zone for India’s banking sector. The RBI classifies bank fraud as transactions involving any cheating, negligence, misappropriation of funds, or forged documents. “Not only simple attacks using phishing, vishing and social engineering, but also increasingly audacious attacks by organised gangs with or without backing by state players have come to light,” the RBI said. The RBI recommended that banks invest in preventive software and frequently assess the risks at hand, not just for in-house operations but also for the external vendors that the lenders employ.

 Bank fraud Another pressing concern for the banking regulator is the increased number of fraudulent transactions at Indian banks. What’s adding to the concerns is that banks often seem reluctant to report these cases. “Almost all corporate loan-related fraud cases get seasoned for two to three years as NPAs before they are reported as fraud,” the RBI said in the report. In the last five years, the volume of bank fraud has increased by 19.6% to 5,064 cases.

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 Impact of digitization on customers The shift from branch counter to e-channels has indeed enhanced customer service and convenience. The dream of anytime, anywhere banking is a reality now. With facilities like mobile alerts, customers get real time information about transactions in their accounts. However, customers’ experience in resolving their problems through interactive voice response systems/call centres has not been satisfactory in most cases. The warmth and human touch is missing in these mechanical media, leaving many a customer to contemplate the benefits of talking to the good old banker. Also, in the absence of channel integration, customers are unable to get identical information about their accounts across the channels. The silver lining for customer is that they can shift to competitor’s banks easily if they are not satisfied with the services from the present bank.

 Innovation and Branding the Product Expert has given opinion that innovation is the key to the future sustained growth of the banking industry. However, innovation cannot be limited to products and brand alone. Successful financial service players are required to embed innovation in every aspect of their functioning, ranging from products and processes to even people, system and business partners. However, product innovation would also be important and such innovative products would need to be tailor-made for different customer segments, e.g. products could be specific to age groups, regions and so on. However, moving further ahead to integrated innovation in its functioning, a bank needs to develop a clear vision on the various parameters of innovation. Subsequently, the organization structure needs to be realigned around this vision through engagement of employee and finetuning of the technological infrastructure.

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2.4 FUTURE POTENTIAL OF THE SECTOR The Indian economy is on the brink of a major transformation, with several policy initiatives set to be implemented shortly. Positive business sentiments, improved consumer confidence and more controlled inflation are likely to prop-up the country’s the economic growth. Enhanced spending on infrastructure, speedy implementation of projects and continuation of reforms are expected to provide further impetus to growth. All these factors suggest that India’s banking sector is also poised for robust growth as the rapidly growing business would turn to banks for their credit needs. Also, the advancements in technology have brought the mobile and internet banking services to the fore. The banking sector is laying greater emphasis on providing improved services to their clients and also upgrading their technology infrastructure, in order to enhance the customer’s overall experience as well as give banks a competitive edge. Many banks, including HDFC, ICICI and AXIS are exploring the option to launch contact-less credit and debit cards in the market shortly. The cards, which use near field communication (NFC) mechanism, will allow customers to transact without having to insert or swipe.

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PART 2 A) ACTUAL WORK DONE Objectives of the Project:         

To segment the market in operating area viz. Education, Entertainment, Health Care and Retail. To collect data with respect to current and saving accounts of the segmented market. Understand the requirements of the client. To generate leads for various products with HDFC Bank. To convert the generated leads within the tenure. Understanding Market potential by relevant application for various Banking products and services offered by HDFC Bank. Market opportunities for existing Banking products in the operating area. Understanding of competition in the current market. Gathering customer feedback from existing and new customer regarding Banking experience.

Research Methodology:    

Field visit to understand market dynamics of various types of customers in operating area and nearby places. Contact businessman and owners to generate a lead for Banking product and service which can facilitate customer acquisition and subsequent sales. Contact existing customers to assess viability and scope for improvement in the existing banking scenario with a wide range of products offered by HDFC bank. Generating leads by visiting customer’s workplace and doing market research in the operating area.

Data Collection Tool Used: There were several approaches for data collection. The primary source for data collection was through:  Questionnaire Questionnaire: Questionnaire is the method of data collection which is very popular especially in big cities. Different modes of question are put on the paper and the particular universe, on which the research is conducted, are asked to fill their responses

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Scoping Identification: HDFC Bank branch was located in a highly dense area with many residential complexes and SMEs operated within the market. To target the segment in the catchment area, we needed to understand the Market segments which are available in the area where HDFC Bank’s market share can improve. Most of the catchment area were located in 5 km radius around the branch office. All the small enterprises were targeted where there is an opportunity for new business. Based on the identifying process, we could establish the STP of HDFC Bank Pusad Branch. The following segment where identified for further scoping:    

Retail (Grocery/ Stationary/ Furniture Stores) Health-Care (Doctors/ Clinics/ Chemists) Education (Coaching classes/ Institutes) Entertainment (Food & Beverages, Cinema, Events)

Segment: Health, Education, Food & Beverages and Retail. Target: Doctors, Business Holders, SMEs etc. Positioning: Customer-centric services to serve better and faster. Sample Size: R1. Interviewed 153 Retailers, Doctors, Chemists, Restaurant Owners, etc. R2. Received 167 responses from secondary research conducted through Questionnaire

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Market Capitalization in the current operating market: To understand the current demographics and local understanding about the HDFC Bank, I went for the field visit, interviewed 153 people of various sectors who were using services of the various banks as given below: Sr. BANK No. 1

HDFC

RETAIL HEALTH SECTOR CARE SECTOR 8 4

2

SBI

7

5

4

2

18

3

AXIS

5

3

5

1

14

4

3

1

0

2

6

5

INDIAN OVERSEAS ICICI

4

1

2

5

12

6

BOI

2

2

0

3

7

7

BOM

4

1

1

3

9

8

SYNDICATE

1

0

0

1

2

9

UNION

2

1

1

4

8

10

2

1

1

1

5

4

1

2

4

11

12

KOTAK MAHINDRA COOPERATIVE INDUSLND

1

0

0

2

3

13

ALLAHABAD 2

1

0

3

6

14

PNB

3

2

1

4

10

15

CANARA

4

2

1

5

12

16

IDBI

3

2

2

1

8

11

GRAND TOTAL

EDUCATION ENTERTAINMENT TOTAL SECTOR SECTOR 3

7

22

153

Overall, HDFC Bank and SBI have a good presence in the current market followed by AXIS Bank, and ICICI Bank and CANARA Bank. Then we had a detailed analysis of every sector in which we explored and identified opportunity. Through the scoping, some segments generated leads for further sales. These leads were passed onto the Branch Manager to convert the sales.

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WEEK 1-2

R1.1 RETAIL SECTOR In Retail segment, the basic financial product requirement of the customers was swiping machine to carry their daily customer transactions and current accounts. Retail segment had no bias towards any bank. There was requirement regarding Loans and other Banking products.

Retail sector banks wise distribution: RETAIL

9 8 7

6 5 4 3 2 1 0 HDFC

SBI

RETAIL AXIS

ICICI

CANARA

OTHERS

During the market research we came to know that, ICICI Bank and Canara Bank were having the same market share in the operating area. The HDFC Bank was having the highest market share followed by SBI and Axis. The retail sector captured the highest number of leads which were passed on to the Branch Manager for further sales.

Challenges in Retail Sector: 

Majority of the transactions are carried by Cash hence no requirement for POS



In an alternative scenario, retailers are using Digital wallets to accept payments from customer like BHIM, Paytm, Tez, PhonePe, etc.



Concerns with Minimum account maintenance balance.

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WEEK 3-4 R1.2 HEALTHCARE SECTOR To understand the health segment in detail, initially, we understood what kind of products should be bundled together or what kind of offers are most suitable for doctors, chemists, physiotherapists etc.

Health Care sector banks wise distribution: HEALTHCARE 6 5 4 3 2

1 0 HDFC

SBI

AXIS

ICICI

CANARA

OTHERS

HEALTHCARE

In the health care sector SBI was holding the highest market share followed by HDFC. There were few co-operative Banks as well holding market share. ICICI bank was having the lowest market share in this sector.

Challenges in Health Sector: 

Customer satisfaction with existing banks due to long relations and personal relations.



Some banks had lesser POS charges compared to HDFC Bank.



Some chemists were having trust issues with private banks.

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WEEK 5-6 R1.3 EDUCATION SECTOR In Education segment, the basic financial product requirement of the customers was simple current account. Education segment had no bias towards any bank. There was no major need in education segment as the transactions are the mostly small amount and they do not prefer swipe machines.

Education banks wise distribution:

EDUCATION 6 5 4 3 2 1 0 HDFC

SBI

AXIS

ICICI

CANARA

OTHERS

EDUCATION

During the market research we came to know that Axis Bank has the highest holding of market share followed by SBI. Canara Bank was having the lowest market share. HDFC bank was doing averagely in this sector.

Challenges in Education Sector: 

Most of the institutions haven’t opted for accepting the fees via digital transactions.



Almost no requirements for POS machines as major transaction was handled by cash.



Unavailability of the concerned person as the owner of the institute was handling multiple businesses.

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WEEK 7: R1.4 ENTERTAINMENT SECTOR In Entertainment segment, the basic financial product requirement of the customers was swiping machine to carry their daily customer transactions. Entertainment segment had no bias towards any bank. There was no major requirement regarding Loans and other Banking products.

Entertainment sector banks wise distribution: ENTERTAINMENT 8 7 6 5 4 3 2 1 0 HDFC

SBI

AXIS

ICICI

CANARA

OTHERS

ENTERTAINMENT

In market research in entertainment sector I came to know that, this sector is dominated by HDFC Bank. ICICI Bank and Canara bank were having the same market share. Axis Bank was having the lowest market share in this sector.

Challenges in Entertainment Sector: 

Don’t want to switch as they don’t want any hassle and they’re fine with current bank.



Concerned with the minimum account maintenance balance.

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WEEK 8: R.2: Analysis of banking approach for the customer (Secondary Research) To understand the basic behaviour towards Banking, and as to how they respond to the banking products at the different age of time. We created a questionnaire to record their responses. There was a total of 167 responses captured, which includes various age groups and mix wide demographics.

The key findings are listed below: Analysis of banking approach for the customer:

Preferred way of Banking 2% 4%

Branch Banking

Internet Banking

24%

32%

Mobile Banking ATM Services E-Lobby

11% 27%

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E-Wallets

Reasons for Banking:

8%

Primary Reason for Banking Savings Account 41%

22% 29%

6%

Current Account Salary Account

Secondary Reason for Banking Investments 22%

35%

14% 23%

Loans Insurance

Moreover, upon asking about digitalization in Banking, 57.5% of people responded that Digitalization will disrupt the traditional way of banking, while only 16% of people responded that Branch Banking will remain popular. At the same time, 26.5% people are thinking that there will be a balance between online and offline banking.

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R2: Analysis of banking approach for the customer (Secondary Research) 1) Gender  Male  Female 2)Age Group  Below 18  18-25  26-39  40-59  60 and above 3)Occupation  Businessman  Salaried  Student  Other ______ 4)Area of Residence  Urban  Semi-urban  Rural 5) Which Bank are you currently associated with?  All Bank options were given including other option to write a name of bank. 6) Which Banking channel do you prefer the most?  Branch Banking  Internet Banking  Mobile Banking  ATM Banking  E-lobby (Automatic Facility for Cash Deposit, Withdrawal etc.) 7) What is your Primary reason for Banking?  Saving Account  Current Account  Salary Account 8) What is your Secondary reason for Banking?  Credit Card  Demat Account  POS (Point of Sale)/Swipe Machine  Insurance Services Loan (Home, Education, Personal etc.)  Investment Schemes (Mutual Funds, Locker, FD, RD, PPF)  Other ______ 9)When you open a new account (Saving/Current/Salary), which all services you expect to be delivered instantly?  Debit Cum ATM Card + Credentials (ATM PIN)  Internet Banking Credentials (User ID & Password)  Phone Banking Credentials (User ID & Password)  Cheque Book and Bank Pass Book

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3.1 Lead Generation Overall leads generation throughout all the sectors:

15%LEAD GENERATION

5%

RETAIL HEALTH CARE EDUCATION ENTERTAINMENT

25% 55%

The highest lead generation was in the Retail Sector followed by the Heath care Sector and Entertainment Sector. Overall, all the generated leads were given to the Branch Manager and Personal Banker. Proper sales pitch and follow-ups were carried by Bank officials.

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3.2SALES Sales in Operating Area:

Sales HDFC Axis

4.76% 17.93%

SBI

16.28%

BOB Union Bank 9.90%

3.96%

ICICI PNB

13.49% 3.17% 3.96% 4.76% 4.76% 4.76% 7.93% 4.34%

Induslnd Canara Syndicate CoOperative IDBI Others

The highest sales are of other banks i.e. Co-operative Banks, Private Sector Banks and few Public-Sector Banks followed by HDFC Bank, State Bank of India and Axis Bank.

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B) FINDINGS AND SUGGESTIONS: 1) Location Visibility 

During initial stages of scoping, many small enterprises did not know about the HDFC Bank’s location in the area.

2)Passbook Updating Machine  

Passbook Update Machines (PUMs) must be installed in the branch. It’s a self-service machine which reduced updating time. Also, it will allow customers to walk-in anytime and updated the passbook even after the office closes.

3)Home Service for senior citizen  Since most of the people who visit the branch are senior citizens, privilege services can be provided for senior citizens (Applicable for Classic customers). 4)To provide privilege cards if customer are associated with the banks for a very long time  If a customer is associated with the bank for more than 15-20 years, then certain charges can be reduced. Also, a customer can be given loyalty benefits. 5)Easier PayZapp/Chillr/HDFC Bank Net-Banking Interface  Chillr/PayZapp/HDFC Bank Net-Banking penetration is relatively lower compared to ATM, Mobile Banking and Internet Banking.  Most of the customer found its interface complex.  Tutorial videos can be floated to help customers get accustomed to the apps.  Internet Banking/Mobile Banking drive can also be initiated with a higher focus on teaching the customers to use these apps independently.

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C) CONCLUSION: This project gave me detailed insight into the world of Banking Services which are offered by the Banks. Having worked closely with Branch Manager and Relationship Managers, I got information on both the sales and services aspect of banking products. This helped in analysing, getting views and technicalities behind running any Banking services. Some of my key learning with respect to Banking was finding out what the needs of the customer when he/she starts up a business or is looking to expand his business during which how a customer can manage his finances. Moreover, understanding the requirements of a customer at different stages of life. These were just a few of the many insights that I gained while working on this project. Being an analytical person, I also enjoyed the huge amount of questionnaire which needs to do before finding out which products need to be pitched to the customer. Each of the recommendations which I suggested was also backed by data which I got from analysing various reports from various sources. Finally, I feel that this internship opportunity which I got with HDFC Bank will help me immensely in my career ahead. I will strive to use the learning’s from this stint in the best possible way. Also, I feel that this stint has helped me build a different frame of mind wherein I can now look at things differently from a business point of view. Earlier, I used to just view banking as a customer but now having worked in the industry for two months, I can have a deeper sense of understanding of the industry. I have also learned a lot from all my interactions with all the mentors of the company and hopefully, I can carry the wisdom and knowledge to make sensible, informative business decision ahead in my career.

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BIBLIOGRAPHY: 1) http://www.hdfcbank.com

2) http://www.investopedia.com 3) http://zafin.com 4) https://thefinancialbrand.com

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