Hdfc Report

ACKNOWLEDGEMENT

I am very grateful to Mr. Manoj Kapoor (Branch Manager) HDFC Bank Ltd. Meerut for providing me an opportunity to work in great environment and gain a practical experience. I express my deep gratitude to my faculty member particularly Prof. Sunil kumar Tyagi under whose guidance and supervision project report has been prepared. They have helped me at every level where ever required. I have benefited a lot from the constructive criticism and suggestionsgiven to me by him. Last but not the least; I would like to thank my institute, I.T.S Ghaziabad and all my faculty members who have given me all the guidance and knowledge, necessary to complete my training.

SHARADAGARWAL

PREFACE

In today’s corporate and competitive world, I find that HDFC Bank LTD. has the good growth and potential as compared to the other bank. HDFC Bank LTD. has given me the opportunity to work and get experience in a highly competitive and enhancing sector. The success story of good market share of different banks depends upon the availability of the product and services near to the customer. If HDFC Bank Ltd is able to provide third party payment and ATM facilities they can capture big market as compared to the other banks.

2

Contents

1. Acknowledgement------------------------------1 2. Preface--------------------------------------------2 3. Introduction--------------------------------------4 4. Types of current accounts---------------------26 5. Scope of the study------------------------------43 6. Objective of the study-------------------------45 7. Limitation of the study----------------------- 47 8. Research Methodology---------------------- 49 9. Presentation & analysis of data--------------52

10. Finding of the study--------------------------621 11. SWOT analysis--------------------------------63 12. Suggestions -----------------------------------67 13. Conclusion------------------------------------70 14. Bibliography--------------------------------- 72 15. Questionnaire------------------------------- 74

3

INTRODUCTION

CHAPTER 1 4

Industry Profile

Introduction of Bank A bank is an institution that provides financial service, particularly taking deposits and extending credit. Currently the term bank is generally understood as an institution that holds a banking license. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Banks have a long history, and have influenced economies and politics for centuries. The word bank is derived from the Italian word banca, which is derived from German language and means bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to an out-of-business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table.

Traditionally, a bank generates profits from transaction fees on financial services and from the interest it charges for lending. In recent history, with historically low interest rates limiting banks' ability to earn money

5

by lending deposited funds, much of a bank's income is provided by overdraft fees and riskier investments.

Services typically offered by banks: Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include: • Taking deposits from the general public and issuing checking and savings accounts • Making loans to individuals and businesses • Cashing cheques • Facilitating money transactions such as wire transfers and cashiers checks • Issuing credit cards, ATM, and debit cards • Storing valuables, particularly in a safe deposit box

Types of Bank Banks' activities can be characterized as retail banking, dealing direct with individuals and small businesses, and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by the Government, or are non-profit making In some jurisdictions retail and investment activities are, or have been, separated by law.

6

Central banks are non-commercial bodies or government agencies often charged with controlling interest rates and money supply across the whole economy. They act as Lender of last resort in event of a crisis.

Current scenario Currently (2006), overall banking in India is considered as fairly mature in terms of supply, product range and reach- even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared 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-without any stated exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector, the demand for banking services-especially retail banking, mortgages and investment services are expected to be strong. M&As, takeovers, asset sales and much more action (as it is unravelling in China) will happen on this front in India. Recently (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. 7

Banking Sector The world of banking has assumed a new dimension at the dawn of the 21st century with the advent of tech banking, thereby lending the industry a stamp of universality. In general, banking may be classified as retail and corporate banking. Retail banking, which is designed to meet the requirements of individual customers and encourage their savings, includes payment of utility bills, consumer loans, credit cards, checking account balances, ATMs, transferring funds between accounts and the like. Corporate banking, on the other hand, caters to the needs of corporate customers like bills discounting, opening letters of credit and managing cash. The Indian banking scene has changed drastically with the private sector making inroads in an area hitherto dominated by large public sector banks. Growing disinvestments is likely to impact the banking industry as well. There is every possibility of privatization of public sector banks, leading to greater operational autonomy. The development of the Indian banking sector has been accompanied by the introduction of new norms such as Income Recognition and Capital Adequacy, by the government. The latter implies that banks can lend on the basis of their respective capital base. These norms have caused banks to construct equity on their own, before going in for debt. Disinter mediation is a real threat for banks. Of late, banks are adopting the EVA (Economic Value Added) concept wherein revenues are viewed in the context of the risk associated with them. The new world order has ensured "Survival of the Fittest". New services are the order of the day, in order to stay ahead in the rat race. 8

Banks are now foraying into net banking, securities, consumer finance, housing finance, treasury market, merchant banking and insurance.

Industry Highlights: {1} Western region is the leader in bank credit (Rs.61, 980 crores) as well as deposits (Rs.101, 421 crores). {2} RBI is on an interest-cutting spree, trying to promote cheap borrowing in India. {3} Banks are diversifying into non-traditional operational areas. {4} Disinvestments and Disinter mediation are likely to impact the industry greatly. {5} With an improvement in the Indian economy, new private banks are likely to gain from better credit off-take, greater profitability and lesser problems of NPAs. {6} Multiple channels (ATM, phone, mobile branch and the Net) are becoming the order of the day. With banks becoming increasingly techsavvy, first-move advantage is very vital. {7} Strategic ventures and revenue-sharing alliances hold the key for survival and growth.

9

Structure of the organized banking sector India

Private Sector Blooms: 10

Corporate governance and self-regulation are the ground rules for the private sector. Government interference is not preferred. While some private banks such as ING Vysya Bank, ICICI Bank, UTI Bank and IDBI Bank have financial institutions backing them, others are opting for foreign partnerships for technology and monetary resources. Private banks have emerged relatively strong, with about 60% growth reported in net profits in the year ended March 2000. With a net profit of Rs.120 crores (+46%), HDFC was the clear leader. IDBI Bank, however took the cake by doubling its net profit, which reached Rs.60.99 crores in March 2000.The jump in profits can mainly be attributed to nontraditional sectors such as commission, exchange, brokerage, and profit on sale of investments. The Indian banking industry, which has Reserve Bank of India as its regulatory authority, is a mix of the public sector, private sector, and foreign banks. The private sector banks are again split into old banks and new banks.

Scheduled Banks: Scheduled commercial banks are those that come under the purview of the Second Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are included under this schedule are those that satisfy the criteria laid down vide section 42 (60 of the Act). Some cooperative banks come under the category of scheduled commercial banks though not all co-operative banks.

11

Public Sector Banks: Public sector banks are those in which the Government of India or the RBI is a majority shareholder. These banks include the State Bank of India (SBI) and its subsidiaries, other nationalized banks, and Regional Rural Banks (RRBs). Over 70% of the aggregate branches in India are those of the public sector banks. Some of the leading banks in this segment include Allahabad Bank, Canara Bank, Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India, Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena Bank and Corporation Bank.

Private Sector Banks: Private Banks are essentially comprised of two types: the old and the new. The old private sector banks comprise those, which were operating before Banking Nationalization Act was passed in 1969. On account of their small size, and regional operations, these banks were not nationalized. These banks face intense rivalry from the new private banks and the foreign banks. The banks that are included in this segment include: Bank of Madura Ltd. (now a part of ICICI Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd., Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi Bank Ltd., The Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and Vysya Bank. The new private sector banks were established when the Banking Regulation Act was amended in 1993. Financial institutions promoted several of these banks. After the

12

initial licenses, the RBI has granted no more licenses. These banks are gearing up to face the foreign banks by focusing on service and technology. Currently, these banks are on an expansion spree, spreading into semi-urban areas and satellite towns. The leading banks that are included in this segment include Bank of Punjab Ltd., Centurion Bank Ltd., Global Trust Bank Ltd., HDFC Bank Ltd., ICICI Banking Corporation Ltd., IDBI Bank Ltd., IndusInd Bank Ltd. and UTI Bank Ltd.

Foreign Banks: The operations of foreign banks, though similar to that of other commercial Indian banks, are mainly confined to metropolitan areas. Foray of foreign banks depends on reciprocity, economic and political bilateral relations. An inter-departmental committee has been set up to endorse applications for entry and expansion. Foreign banks, in the wake of the liberalization era, are looking to expand and diversify. Some of the leading foreign banks that operate in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai Banking Corporation, Bank of America, Deutsche Bank, Development Bank of Singapore and Banque National De Paris.

13

Company Profile About us The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

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

14

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

Capital Structure The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

15

Distribution Network 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 ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

16

OUR TEAM

Mr. Kapoor was a Deputy Governor of the Reserve Bank of India.

Jagdish Kapoor

Chairman

Aditya Puri

Managing Director

Renu karnad

Director

Amla Samanta

Director

Anil Ahuja

Director

Arvind Pandey

Director

Vineet Jain

Additional Director

Sanjay B Dongre

Co. Secretary

17

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single- minded focus on product quality and service 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.

Awards and Achievements - Banking Services

Leading Indian business magazine Business India named us "India's Best Bank" in 2000. The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01 "Computerworld Honors Laureate" and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Asiamoney magazine has named us "Best Commercial Bank in India 2002".

18

London-based Euromoney 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

2006 Business Today

Best Bank in India.

Forbes

One of Asia Pacific's Best 50 companies.

Magazine Businessworld The

Best listed Bank of India.

Asset Best Domestic Bank.

Magazine's Triple

A

Country Awards Asiamoney

Best Local Cash Management Bank in Large and

Awards

Medium segments.

Euromoney

"Best Bank" in India.

Awards

2007

Business Today- One of India's "Most Innovative Companies" 19

Monitor Group survey Financial

Best Bank Award in the Private Sector category

Express-Ernst &

Young

Award Global

HR 'Employer Brand of the Year 2007 -2008' Award -

Excellence

First Runner up, & many more

Awards - Asia Pacific

HRM

Congress: Business Today 'Best Bank' Award Dun

& 'Corporate Best Bank' Award

Bradstreet

–

American Express Corporate Best Bank

Award

2007 The

Bombay 'Best Corporate Social Responsibility Practice'

Stock Exchange Award and

Nasscom

Foundation's Business

for

Social Responsibility Awards 2007 Outlook Money Best Bank Award in the Private sector category. & NDTV Profit 20

The Asian

Best Retail Bank in India

Banker Excellence

in

Retail Financial Services Awards Asian Banker

Our Managing Director Aditya Puri wins the Leadership Achievement Award for India

We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.

MISSION & STRATEGY Is to be a, “World Class Bank” - Benchmarking themselves against international standards and best practices in term of product offerings, technology, service level, risk management and audit and compliance. The business strategy emphasizes the following: 21

1. Increase the market share in India’s expanding banking industry. 2. Maintain current high standards for assets quality through disciplined credit risk management. 3. Focus on high earnings growth with low volatility. 4. Continue to develop products and services that reduce their cost of funds.

Corporate Governance

22

HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.

What is Current account? • A running account supporting unlimited withdrawals and deposits • A current account is meant for convenience and not to save money

Who needs a Current Account?

23

• Businessman •

Joint stock companies

• Institutions • Public authorities • Public corporations • Any business that has numerous banking transactions need a current account

Benefits of Current Account • Unlimited Withdrawal and Deposit •

Unlimited Cheque book

• Demand Drafts and Pay orders • Funds Transfer (Local or Anywhere) • Collection of Cheque Drafts • Statements, Advices, Daily statement bye-mail • Cash withdrawal and Deposits • MultiCity Cheque Facility • Anywhere Banking •

Cash Cheque Pickup

• Free Phone Banking • Free Mobile Banking

24

25

TYPES OF CURRENT ACCOUNTS

Types of Current accounts offered by HDFC BANK The HDFC Bank provides different kind of account with different features to choose the account which suited you and your business these accounts are:

26

1.

In today's fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city banking with a single account

and

access

to

more

than

327

cities.

From special cheques that get treated at par with local ones in any city where we have a branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, our priority services have become the benchmark for banking efficiency. Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000.

Features & Benefits

27

Free Account to account funds transfer between HDFC Bank accounts Free payment and collection through RTGS. Free payment and collection using NEFT (through Netbanking) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection & payment transactions (clearing) within HDFC Bank branch network (except Dahej), up to Rs.100 lacs per month. Convenience to withdraw & deposit cash at all our branches* 300 "At Par" cheque leaves free per month. Register for Insta Alert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment. Eligibility & Documentation Resident Individuals. Hindu Undivided Families.

28

Sole Proprietorship Firms. Partnership firms. Limited companies. Trust Accounts. Association/ Clubs/ Societies. Foreign Institutional Investors. Foreign nationals residing in India.

All you need is to maintain an average balance of Rs. 1,00,000/- per quarter. (Non-maintenance of which entails a charge as per the following:) When the AQB is less than 1 lakh and upto Rs.50,000/-, there is a service charge

of

Rs.1,500/-

per

quarter.

When the is AQB less than Rs.50,000/-, there is a service charge of Rs.6,000/- per quarter

2.

29

In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives you the power of inter-city banking with a single account. From special cheques that get treated at par with local ones in any city where we have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lakhs per month, our priority services have become the benchmark for banking efficiency. Trade Current Account requires you to maintain an average

quarterly

balance

of

Rs.40,000.

Features & Benefits Free Account to account funds transfer between HDFC Bank accounts. Free RTGS/NEFT Transactions. Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch. Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection & payment within HDFC Bank branch

30

network (except Dahej), up to Rs.50 lacs per month. Convenience to withdraw & deposit cash at all our branches* 200 "At Par" cheque leaves per free month . Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment.

Eligibility & Documentation Resident Individuals. Hindu Undivided Families. Sole Proprietorship Firms. Partnership firms. Limited companies. Trust Accounts. Association/ Clubs/ Societies. Foreign Institutional Investors. Foreign nationals residing in India.

31

A minimum Average Quarterly Balance of Rs. 40,000/- is required to operate this account. Non-maintenance of the minimum balance entails a fee of Rs. 1200/-.

3.

Your business needs a partner who can manage your finances while you concentrate

on

growing

your

business.

You can avail benefits of inter-city banking account with Premium Current Account, that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city

32

clearing transactions across our network up to Rs.25 Lacs per month. A Current Account with the benefits of accessing your account from a large network of branches, and through direct access channels - the phone,

mobile,

Internet

and

through

the

ATM.

Enter into a profitable relationship and access all the privileges flowing your way.

Features & Benefits Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to Rs.25 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/Free NEFT Transactions. Free RTGS collection. RTGS payment @ Rs.100/- per transaction. Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions. Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at

33

nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . 100 "At Par" cheque leaves free per month Register for Insta Alert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy

facilities

like

24-hour

PhoneBanking,

NetBanking

and

MobileBanking to access your account.

Eligibility & Documentation Resident Individuals Hindu Undivided Families Sole Proprietorship Firms Partnership firms Limited companies Trust Accounts Association/ Clubs/ Societies Foreign Institutional Investors Foreign nationals residing in India

A minimum Average Quarterly Balance of Rs. 25,000/- is required to operate this account. Non-maintenance of the minimum balance entails a fee of Rs. 900/-. 34

4.

Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, you can access your account anytime, anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in your account. Regular Current Account requires you to maintain an average quarterly

balance

of

only

Rs.

10,000.

With a vast network of branches in cities all over the country, and access to a multitude of ATM's, you can keep track of all your transactions anytime.

35

Features & Benefits Convenient

inter-city

banking

:

Deposit your local cheques in one branch of a city and have it credited to your account at a branch in another city or make payments across HDFC Bank locations using PAP cheque facility at a nominal rate Free payments and collections through NEFT Free RTGS collection. RTGS payment @ Rs.100/- per transaction Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Payable at par cheque book at nominal price. Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. 36

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment.

Eligibility & Documentation Resident Individuals. Hindu Undivided Families. Sole Proprietorship Firms. Partnership firms. Limited companies. Trust Accounts. Association/ Clubs/ Societies. Foreign Institutional Investors. Foreign nationals residing in India. All you need is to maintain an average balance of Rs.10,000/- per quarter. (Non-maintenance of this balance entails a nominal charge of Rs. 750/-).

5.

37

HDFC Bank Flexi Current Account is the answer to your changing banking needs during peak seasons. With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in your Current Account. So, during peak seasons, you get the benefit of higher transaction limits due to the higher average balances maintained in your account. What’s more, during lean seasons, you need not bother about maintaining huge balances to enjoy high transaction limits, which you anyway may not need. Flexi Current Account requires you to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000.

Features & Benefits Enjoy dynamic free limits on Intercity Payments, Collections & Funds

38

Transfer as well as Cash Deposit at home location branches based on the

AMB

maintained*

For example, you maintain an AMB of Rs.2,00,000/- in a particular month. Your dynamic free transaction limits for that month would be as per the following table: Transaction Cash Deposit at Home Branch Location Anywhere

Payments,

Collections

Funds Transfer (except Dahej)

Dynamic Free Limits* Rs. 24,00,000 in that particular month & Free up to Rs.1,00,00,000/in that particular month

Pay your vendors on a real time basis using Real Time Gross Settlement (RTGS) available across 23,000 Bank Branches*. What’s more, payments and collections through RTGS are completely free! Make and receive remittances to & from your vendors & customers across 20,000 + Bank Branches of more than 50 Banks through Net Banking using National Electronic Fund Transfer (NEFT), Absolutely Free! Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank Branch* Convenience to withdraw and deposit cash at all our branches*. Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations as well as Outstation Cheque Collection at HDFC Bank Locations InstaAlert service - receive updates on your account as and when the select transaction happens – all this without visiting the Branch or ATM! Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile

39

Banking that helps you check your balance and transaction details, find out the status of your cheque or stop cheque payment. HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

Eligibility & Documentation Resident Individuals Hindu Undivided Families Sole Proprietorship Firms Partnership Firms Limited Companies Trust Accounts Association/Clubs/Societies

40

All you need to do, is maintain an average monthly balance of Rs.75,000/- per month. (Non-maintenance of which entails a fees of Rs.1000/- per month)

41

SCOPE OF THE STUDY

CHAPTER 2 SCOPE OF THE STUDY

Market study is an essential process to develop the bank in collecting data , analyzing , reporting of the data to specific situation to any marketing activities that the bank facing with the increase in the competition and the development of various marketing activities. Modern marketing calls for 42

more than developing a good product, placing it attractively and making it accessible to target customers. Banks also need to communicate their present and potential customers to communicate their present organization, develop and effective strategy with the aim of creating awareness, developing knowledge, linking preference convictions among the organization’s target audience with a view to convert them into prospective buyers. This project report endeavors to study the—

Competitiveness of the HDFC BANK current account with other bank’s current account in MEERUT.

43

OBJECTIVE OF THE STUDY

CHAPTER 3 OBJECTIVE OF THE STUDY HDFC Bank's mission is to be a World Class Indian Bank .The Bank's aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of the banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the bank's risk appetite.

44

The bank aims to ensure the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Bank's business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. The objective of my study is basically confers upon the above mentioned requirement by the bank to make it compatible with other leading banks in West Delhi on the contrary to gain a practical exposure of the management theories in the field of marketing with combined aim of getting the degree of PGDM. The following are the prime objectives of my project work---

Awareness of HDFC BANK current account in Meerut Consumer behavior while adopting HDFC BANK current account Consumer perception about HDFC BANK current account in comparison with other leading bank’s current account in Meerut.

45

LIMITATION OF THE STUDY

CHAPTER 4 LIMITATION OF THE STUDY Almost all the necessary information was collected by me in support of this project report.

46

However there are some problems, which cannot escape from the limitation faced, felt or expressed by me, are as follows • Sample size taken was small because of time boundation.

• Some of the respondents were reluctant to fill up the questionnaire

• The variety of accounts of different banks are different so there is some problem in comparison • The research study was limited to only one area.

• Biasness on the part of respondent • Time and money constraints

I tried to overcome on these limitations with my best & maximum efforts

47

RESEARCH METHODOLOGY

CHAPTER 5

RESEARCH METHODOLOGY TYPE: The type of research used in this study is descriptive research. Such

48

Researches include surveys, fact finding, and enquiry methods of different types. Descriptive research describes the state of affairs, as it exists at present. Here researcher has no control over the variables. He generally reports what has occurred or what may happen in future. Descriptive Research also termed as ex post facto research. Methods of research used in descriptive research are survey methods of all kinds. SAMPLING: The sampling method used is in this study is stratified random sample. Sometimes certain customers are more important than the rest of the customers. In such a case stratified random sampling is used. Under this method the samples are weighted in the basis of importance of various segments comprising the market. In other words stratified sampling is obtained by selecting a separate simple random sample from each population group category. Here the large population is first divided into some groups, classes according to some feature or variable. These groups or classes are called strata. From each strata a sample is selected in simple random manner like group “A” sample size is 100 units, group “B” sample size is 200 units and group “C” has sample size of 300 units and so on and the researcher may decide to tame up 20% from each sample size of each group. He finally selects 20 units from “A”, 40 units from “B” and 60 units from “C” and so on. Stratified random sampling is also known as proportional or quota sampling and basically deals with dividing the complete population into homogeneous subgroups and then taking a simple random sample from each subgroup. After that a sample size was determined according to the size of the market and sample was collected in simple random manner. A total of

49

100 samples were collected. Following is the distribution of sample collected:

DATA COLLECTION: Primary data was collected with the help of questionnaires. Questionnaires play a central role in the data collection process. A will designed questionnaire efficiently collects the required data with minimum number of error. It facilitates the coding and capture of data and it leads to an overall reduction in the cost and time associated with data collection and processing. In this study questionnaire used was comprised of both open and closed questions. Also contingency questions were used to reduce respondent frustration and increase the quality of information in the responses. Secondary data was taken from the company profile and product manual provided by the company

50

PRESENTATION AND ANALYSIS OF DATA

Occupation of Respondents

Valid

Businessman Joint Stock Companies Professional

Valid

Cumulative

Frequency Percent 37 37.0

Percent 37.0

Percent 37.0

27

27.0

27.0

64.0

20

20.0

20.0

84.0

51

others Total

16 100

16.0 100.0

16.0 100.0

100.0

16% 37%

B u s in e s s m a n Jo in t S to c k C o m p a n ie s P ro fe s s io n a l

20%

o th e rs 27%

In occupation according to research 16% respondent are others , 37% are businessmen , 27% are joint stock companies & 20% are professional

Type of account respondent maintain Cumulative Valid

saving A/c current A/c Fixed Deposits loan A/c Total

Frequency 20 37

Percent 20.0 37.0

Valid Percent 20.0 37.0

Percent 20.0 57.0

18

18.0

18.0

75.0

25 100

25.0 100.0

25.0 100.0

100.0

52

20%

25%

s aving A /c c urrent A /c F ix ed D epos its loan A /c 18%

37%

20% respondent use saving a/c , 37% respondent use current a/c , 18% fixed deposit & 25% having a loan a/c.

How many times a respondent transact in a day

Valid

Once

a

day twice in a day others Total

Valid

Cumulative

Frequency Percent

Percent

Percent

28

28.0

28.0

28.0

40

40.0

40.0

68.0

32 100

32.0 100.0

32.0 100.0

100.0

53

28%

32%

Once a day twice in a day others

40%

28% respondent normally transact once in a day , 40% are transact more than twice a day or others & 32% transact twice in a day

How do they transact

Valid

Through

ATM-

cum-Debit Card Personally going to Bank through cheque Total

Valid

Cumulative

Frequency

Percent

Percent

Percent

17

16.8

17.0

17.0

38

37.6

38.0

55.0

45 100

44.6 99.0

45.0 100.0

100.0

54

17% 45%

Through A TM -c um -D ebit C ard P ers onally going to B ank through c heque 38%

17% respondent transact through ATM-cum-Debit Card, 38% transact by personally going to bank & 45% respondent Transact through cheques.

Familiar with HDFC current account Cumulative Valid

yes no Total

Frequency 78 22 100

Percent 77.2 21.8 99.0

55

Valid Percent Percent 78.0 78.0 22.0 100.0 100.0

2 2%

y es no

78%

78% respondent familiar with HDFC current account & 22% respondent not familiar.

Aware about five type of HDFC current a/c Cumulative Valid

yes no Total

Frequency 66 34 100

Percent 66.0 34.0 100.0

56

Valid Percent 66.0 34.0 100.0

Percent 66.0 100.0

34% yes no 66%

66% respondent are aware about five types of current a/c & 38% are not known about this.

Which account you have Cumulative Valid

plus flexi primium regular trade Total

Frequency 11 13 30 21 25 100

Percent 11.0 13.0 30.0 21.0 25.0 100.0

57

Valid Percent 11.0 13.0 30.0 21.0 25.0 100.0

Percent 11.0 24.0 54.0 75.0 100.0

11%

25%

13%

p lu s fle x i p rim iu m re g u la r tra d e

21%

30%

Satisfied with HDFC Cumulative Valid

yes no Total

Frequency 70 30 100

Percent 70.0 30.0 100.0

58

Valid Percent 70.0 30.0 100.0

Percent 70.0 100.0

3 0%

y es no

70 %

70% respondent are satisfied with HDFC Bank & 30% respondent are not satisfied with HDFC Bank.

59

FINDINGS OF THE STUDY

CHAPTER 6 Findings Of The Study •

In occupation according to research 16% respondent are others , 37% are businessmen , 27% are joint stock companies & 20% are professional

60

• 20% respondent use saving a/c , 37% respondent use current a/c , 18% fixed deposit & 25% having a loan a/c. •

28% respondent normally transact once in a day , 40% are transact more than twice a day or others & 32% transact twice in a day.

• 17% respondent transact through ATM-cum-Debit Card, 38% transact by personally going to bank & 45% respondent Transact through cheques. •

78% respondent familiar with HDFC current account & 22% respondent not familiar.

• 66% respondent are aware about five types of current a/c & 38% are not known about this. • 70% respondent are satisfied with HDFC Bank & 30% respondent are not satisfied with HDFC Bank.

61

SWOT ANALYSIS

SWOT ANALYSIS - HDFC BANK Strengths •

Interest rate of 4% on ordinary savings account

62

•

Overdraft facility of up to 75% against fixed deposits with the bank

•

Strong sales and marketing team

•

Provides foreign exchange facilities to its customers and in general

•

Provides car and education loans apart from others

•

In excess of 40000 accounts currently maintained with it inclusive of

• Current accounts and fixed deposits • Oldest private bank in India with over 7 years of presence •

Often confused to be a nationalized bank by people

Weaknesses

• No maximum upper limit for requesting a demand draft and High minimum charges for not maintaining AQB • Limited banking hours on weekdays and weekends • Closure on holidays and Sunday

Opportunities • Open up extension counters at suitable and desired locations •

Develop a bonding with customers by introducing schemes for old 63

• Good customers and recognizing their association with the bank • Increase the number of ATMs

Threats • Frequent ATM disorders and excessive rush at ATMs • Rush and chaos at the branch and delay in service mostly in the morning hours • Extended banking hours of Private/Multinational banks and 365 day • Banking concept of multinational banks • Lower interest on fixed deposits as compared to other banks

COMPARITIVE CHART OF CURRENT ACCOUNTS OF EXISTING BANKS Name of bank Facilities

ICICI

ING Vysya

64

HDF C

SBI

PNB

Roaming current Account No. Branches in India Free Financial Advisory Services Free SMS Alert

YES

YES

YES

NO

NO

1000

400

800

11000

4100

YES

YES

YES

NO

NO

YES

YES

YES

YES

YES

YES

YES

YES

NO

NO

YES

YES

YES

NO

NO

YES YES

YES YES

YES YES

NO YES

NO YES

Debit Cards

YES

YES

YES

YES

YES

Debit Card (Free of cost)

YES

YES

YES

YES

YES

Anywhere Banking facility Multi city Payments option Multi city cheque Books Internet Banking! Phone Banking

Any other free Facility

NO NO YES YES YES (Only in 300 (only in 150 Branches) Branches)

Free DD/ Pay order/ PAP- Cheques up to 2 crore p.m Free usage Free of other Insurance bank ATM NO NO NO policy 10 times p.m

65

SUGGESTIONS

SUGGESTIONS & RECOMMENDATIONS From investors point of view:--

66

 customer should ask the agents to give details of different account

schemes  customer should invest in those schemes which meets with its

investment objective and fulfils the requirements of the customer.  Customer should ask agents to make them aware about the performance of their investments

From company point of view:- Company should educate the agents/ salesman to take customer queries effectively  Company should set up customer care divisions where customer

can resolve their queries any time regarding any problem.  Company should recruit appropriate number of agents for urban, rural and semi urban areas. Company should make customer service faster.

 Company should choose appropriate channels of media like newspaper, television etc for marketing of products and services.  Company should also conduct seminars and also provide every minute information about the various products offered by the company  Company should developed, design separate schemes for rural, urban living people.  Company should strengthen its distribution channels and make it more effective by and should make a strong database about its customer. 67

68

CONCLUSION

CONCLUSION

69

We can conclude from the analysis that the HDFC Bank current account is not only developing product but also getting place in the minds of the prospective customers. The project has been a rewarding experience in more ways than one. Firstly, I have gained an insight into the working of the HDFC Bank current account. Secondly, I came to know about the problems and suggestions of the customers regarding the HDFC Bank current account, which will surely benefit the Bank in the long run. A part from these facts the following are some other important facts which can easily be inferred from the above comparison made

•

Costumer reaction about the HDFC Bank current account is quite interesting. The interesting reactions have come from the businessmen and professionals side. The total number of respondents surveyed are of the view that HDFC Bank is in it’s developing phase getting hold in the marketing of it’s current account in comparison with other leading bank’s current account.

•

The main competitions that HDFC Bank faces are from well established foreign and Indian banks viz;ICICI, STANDARD CHARTERED, CITIBANK, PNB, SBI.

•

The respondents are more positive about the HDFC Bank current account features.

70

BIBLIOGRAPHY

BIBLIOGRAPHY

71

Books • Phillip Kotler • Ramaswamy V.S., NamakumariS., Marketing Management • Kothari C.R., Research Methodology • Malhotra k. Naresh, Marketing Research • Saxena Rajan, Marketing Management • Gupta C.B., Marketing Management,

News papers • Times of India • Economic Times • Financial Times

Web sites • www.google.com • www.hdfcbank.com

72

QUESTIONNAIRE

QUESTIONNAIRE Consumer Survey 1. Name: 2. Sex: Male 

Female  73

3. Occupation: Businessman  Joint Stock Companies  Others

Professional 

4. Which type of Accounts you are currently maintaining: Savings A/c  Current A/c 

Fixed Deposits 

Loan A/c  How many times you normally transact in a week Once a day twice a day  others Specify------------------------------------------------------------------------------------------------------------------------------------------------5. How do you transact Through ATM-cum-Debit Card  Personally going to Bank  Through cheque  6. Are you familiar with HDFC Bank current account in Meerut

Yes 

No 

7. Are you aware of HDFC five types of current accounts Yes 

No

8. If yes, then have you ever avail any of the following type of current accounts Plus current account Premium current account  current account 

 Trade current account  Regular current account  Flexi

74

9. Are you satisfied with the facilities provided by HDFC current account in comparison with other banks Yes 

No 

10.Do you want to switch over to any other bank’s current account Yes  No

Thankyou

75