project training and development hdfc bank
TRANSCRIPT
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PREFACE
This project as the name customer Preference towards saving account of HDFC bank
is made after studying the features of the banks saving account and getting a
questionnaire filled from people take as sample on based on different aspects. They had
been asked questions regarding their saving accounts in which bank, which way did they
happen to know about the saving bank account of the bank to know the effectiveness of
promotion techniques and finally their up to mark knowledge and awareness regarding
different aspects of the saving bank account. Afterwards a conclusion is formulated
according to the findings as had regarding the above mentioned. At the end some
recommendations are made as found suitable.
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ACKNOWLEDGEMENT
I am indebted to HDFC bank and want to convey my sincere gratitude to HDFC BANK
for providing me an opportunity to work with the bank and giving necessary directions on
doing this project to the best of my abilities.
I am thankful to our reverent principal Mr. Bhushan Kumar Sharma for the college
infrastructure and the appropriate ambiance in our college premises.
And then I would like to thank all the faculty members of GGDSD College Chandigarh,
especially Mrs. Monika Sachdeva who gave me the useful tips and suggestions regarding
the project and Ms Savita Sindhu for imparting her valuable guidance to me.
I am highly indebted to Ms. Nidhi Garg , Branch Manager and company project guide,
who has provided me with the necessary information and also for the support extended
out to me in the completion of this report and his valuable suggestion and comments on
bringing out this report in the best way possible.
(Avni )
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DECLARATION
I, Avni, do here by declare that this project work entitled, Customer Preference towardssaving account of HDFC bank is a record of project work carried by me under the
supervision of Ms. Savita Sindhu, (Lecturer, GGDSD college Chandigarh) at HDFC
Bank Khanna Branch in the partial fulfillment of the requirement of BBA program of the
GGDSD COLLEGE, CHANDIGARH (Punjab).
Guide: (Avni)
Ms. Savita Sindhu
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INDEX
CHAPTER 1 INTRODUCTION 6-91.1 Industry Profile
a. Origin and Development of the industry
b. Growth and Present Status of the industry
c. Future of the industry
CHAPTER 2 PROFILE OF THE ORGANISATION 11-18
2.1 Origin of the Organization
2.2 Growth and Development of the Organization
2.3 Present Status of the Organization
2.4 Functional Departments of the Organization
2.5 Organization Structure
2.6 Product and Service Profile of the Organization Competitors
2.7 Savings Account
CHAPTER 3 RESEARCH METHODOLOGY 20-21
3.1 Statement of Research Problem
3.2 Research Objectives
3.3 Types of Data
3.4 Size of Sample
3.5 Limitations of study
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 23-32
CHAPTER 5 FINDINGS AND RECOMMENDATIONS 34-35
5.1 Findings of the study
5.2 Recommendations
CHAPTER 6 CONCLUSION 37
BIBLOGRAPHY 39
ANNEXURE 41-42
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CHAPTER 1INTRODUCTION
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1.1 INDUSTRY PROFILE:
a.) Origin and development of the industry:
Banking in India originated in the first decade of 18th century. The first banks were The
General Bank of India, which started in 1786, and Bank of Hindustan, both of which are
now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in the, The Bank of Bengal in Calcutta in June 1806. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The
presidency banks were established under charters from the British East India Company.
They merged in 1925 to form theImperial Bank of India, which, upon India's independence,
became the State Bank of India. For many years the Presidency banks acted as quasi-central
banks, as did their successors. TheReserve Bank of India formally took on the responsibility
of regulating the Indian banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.
Liberalization in the 1990s:
In the early 1990s, the thenNarasimha Raogovernment embarked on a policy
ofliberalization, licensing a small number of private banks. These came to be known
as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce,UTI Bank(since renamed Axis Bank),ICICI Bankand HDFC Bank. This move,
along with the rapid growth in the economy of India, revitalized the banking sector in India,
which has seen rapid growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to 74%
with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were
used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new
wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.
All this led to the retail boom in India. People not just demanded more from their banks but
also received more.
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http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/British_East_India_Companyhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indian_independence_movementhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/India -
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Adoption of Banking Technology:
The IT revolution had a great impact in the Indian banking system. The use of computers
had led to introduction ofonline bankingin India. The use of the modern innovation and
computerisation of the banking sector of India has increased many fold after the economic
liberalisation of 1991 as the country's banking sector has been exposed to the world's
market. The Indian banks were finding it difficult to compete with the international banks in
terms of the customer service without the use of the information technology and computers.
The RBI set up a number of committees to define and coordinate banking
technology. These have included:
Committee on Mechanisation in the Banking Industry (1984): The major
recommendations of this committee was introducingMICRtechnology in all the
banks in the metropolis in India. This provided use of standardized cheque forms and
encoders.
Committee on Computerisation in Banks (1988): This emphasized that settlement
operation must be computerized in theclearing housesof RBI in Bhubaneshwar,
Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should
be National Clearing of inter-citychequesat Kolkata, Mumbai, Delhi, Chennai andMICR should be made Operational. It also focused on computerisation of branches
and increasing connectivity among branches through computers. It also suggested
modalities for implementing on-line banking.
Committee on Technology Issues relating toPayment systems,Cheque
ClearingandSecurities Settlementin the Banking Industry (1994)
b. Growth and present status of the Industry:
Currently (2012), banking in India is generally 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. In terms of quality of assets and capital adequacy, Indian banks
are considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government. The stated policy of the Bank on the Indian
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http://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/MICRhttp://en.wikipedia.org/wiki/MICRhttp://en.wikipedia.org/wiki/Clearing_house_(finance)http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Settlement_(finance)http://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/MICRhttp://en.wikipedia.org/wiki/Clearing_house_(finance)http://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Payment_systemhttp://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Clearing_(finance)http://en.wikipedia.org/wiki/Settlement_(finance) -
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Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been
true.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to
give a satisfactory service to customers. Phone banking and net banking is introduced. Theentire system became more convenient and swift. Time is given more importance than
money.
Indian banks, the dominant financial intermediaries in India, have made high-quality
progress over the last five years, as is evident from several factors, including annual credit
growth, profitability, and trend in gross non-performing assets (NPAs). While annual rate of
credit growth clocked 23% during the last five years, profitability (average Return on Net
Worth) was maintained at around 15% during the same period, while gross NPAs fell from
3.3% as on March 31, 2006 to 2.3% as on March 31, 2011.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake)after merger of New Bank of India in Punjab
National Bank in 1993, 29 private banks (these do not have government stake; they may be
publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined
network of 2,544 branches and 8,913ATMs. According to a report by ICRA Limited, a
rating agency, the public sector banks hold over 75 percent of total assets of the banking
industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
The Indian banking sector is a mixture of public, private and foreign ownerships. The
below table highlights top 10 banks which contributed 58% share of the total credit as on
March 31, 2011. The State bank of India has recorded highest market share. The Net Interest
Margin of HDFC Banks is 4.2% which is highest among others.
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Name of the Bank Credit Portfolio
(Rs. bn)
Market Share
(%)
NIM(%)
State Bank of India 7567 18 2.9
Punjab National Bank 2421 6 3.5
Bank of Baroda 2287 5 2.8
ICICI Bank 2164 5 2.3
Bank of India 2131 5 2.5
Canara Bank 2125 5 2.6
HDFC Bank 1600 4 4.2
IDBI Bank 1571 4 1.8
Axis Bank 1424 3 3.1
Central Bank of India 1297 3 2.7
Source: http://www.researchandmarkets.com/marketsharereports
c. Future of the Industry:
The burden of reporting and other regulatory requirements will fall heavily and
disproportionately on small banks unless remedial action is taken. Further advances in
information technology will permit the development of new products, BANK, and risk-
management techniques but may also pose important competitive and supervisory issues.
Non-bank entities will continue to offer bank-like products in competition with banks,
raising anew the question of whether banks are still special and, more fundamentally,
whether banks are sufficiently different from nonblank firms to justify the maintenance of a
safety net for banks. It is useful, therefore, to try to chart the course of the banking industry
in the next five to ten years and to consider what policy issues the industry and regulators
will face. The future-of-banking study addresses three broad questions:
1. What changes in the environment facing banking can be expected in the next five to ten
years?2. What are the prospects for different sectors of the banking industry in this anticipated
environment? Because the banking industry is not monolithic and different segments of the
industry have, to some degree, different opportunities and vulnerabilities.
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CHAPTER 2
PROFILE OF THE HDFCBANK
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2.1 ORIGIN OF HDFC:
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank
Ltd, was established in the year 1994 as a part of the liberalization of the Indian Banking
Industry by the Reserve Bank of India (RBI) And was incorporated on 30th august , 1994 .
It was one of the first banks to receive an in principle approval from RBI, for setting up a
bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited',
with its registered office in Mumbai. The following year, it started its operations as a
Scheduled Commercial Bank-HDFC Bank Limited. The Group operates through four
segments: Treasury, Retail Banking, Wholesale Banking and Other Banking Business. The
Treasury BANK segment consists of net interest earnings on investments portfolio of the
bank and gains or losses on investment operations. The Retail Banking segment serves
retail customers through a branch network and other delivery channels. This segment raises
deposits from customers and makes loans and provides advisory BANK to customers. The
Wholesale Banking segment provides loans and transaction BANK to corporate and
institutional customers. The Other Banking Operations segment provides BANK relating to
credit cards, debit cards, third party product distribution and primary dealership business
and other associated costs. Certificate of Commencement of Business was received on
10th October 1994 from RBI. The Bank transacts both traditional commercial banking as
well as investment banking.
2.2 Growth and Development of HDFC:
1994:
On 16.1.1995, 90, 79,930 No. of equity shares were allotted to jarring ton Pt. Ltd. Another
400, 00,000 equity shares were allotted on private placement basis to NatWest Group on
9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 The Bank opened its first
branch in Ramon House at Church gate, Mumbai on January 16th.
The Bank has created an efficient operating system using well tested state-of-the-art
software.
1995:
70 No. of equity shares issued to subscribers to the Memorandum &Articles of Association
on 30th August 1994. On the same date 500, 00,000 equity shares were allotted to HDFC
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promoters. 509, 20,000 shares were allotted to HDFC Employees Welfare Trust and HDFC
Bank Employees Welfare Trust on 22nd December,
1996:
HDFC Bank entered the banking consortia of over 50 corporates, including some leading
multinational companies, flagship companies of local business houses and strong public
sector companies.
HDFC Bank set up a state-of-the-art dealing room to handle all transactions possible in
Indian financial markets.
The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for
short term instruments indicating superior capacity for repayment.
2001:The Bank opened its first branch in Aurangabad. HDFC Standard Life Insurance entered
into a memorandum of understanding with the Chennai-based Indian Bank. The Bank
launched the international Maestro debit card in association with Master Card. HDFC Bank
launched its credit card in June through link-ups with MasterCard and Visa.LTtrade.com has
entered into a strategic tie-up with HDFC Bank to provide Net banking BANK to online
investors. Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have
joined the e-Cash Forum which has been set up by the Smart Card Forum of India. HDFCBank launched a new campaign for its savings account. HDFC Bank entered into a strategic
tie-up with Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small and
medium enterprises.
TodayHDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all
branches of the bank are linked on an online real-time basis. As of September 30, 2008 the
bank had total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has
reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual
earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09.
2012:
The Banks total income for the quarter ended December 31, 2012, was ` 10,506.5 crores as
against ` 8,622.6 crores for the quarter ended December 31, 2011. Net revenues (net interest
income plus other income) were at ` 5,597.7 crores for the quarter ended December 31,
2012, an increase of 23.4% over ` 4,536.0 crores for the corresponding quarter of the
previous year. Net interest income (interest earned less interest expended) for the quarter
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ended December 31, 2012,grew by 21.9% to ` 3,798.9 crores. This was driven by loan
growth of 24.3% and a net interest margin for the quarter of 4.1%.
The Banks total balance sheet size increased by 14.4% from ` 335,466 crores as of
December 31, 2011, to ` 383,729 crores as of December 31, 2012. Total net advances as ofDecember 31, 2012, were ` 241,493 crores, an increase of 24.3% over December 31, 2011.
The mix of loans between the retail and wholesale segments was 53:47 as on December 31,
2012.Total deposits were at ` 284,119 crores, an increase of 22.2% over December 31, 2011.
Savings deposits grew 16.5% to ` 81,942 crores and current deposits grew 10.4% to ` 47,004
crores. The CASA ratio as at December 31, 2012, was 45.4%.
2.3 Present Status of the HDFC bank:
TECH-SAVVY:
HDFC Bank has always prided itself on a highly automated environment, be it in terms of
information technology or communication systems. All the braches of the bank boast of
online connectivity with the other, ensuring speedy funds transfer for the clients. At the
same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-
branch access to retail clients. The bank makes use of its up-to-date technology, along with
market position and expertise, to create a competitive advantage and build market share.
CAPITAL STRUCTURE:
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion), of
this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share, the
HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of the
equity and about 17.6% is held by the ADS Depository (in respect of the bank's American
Depository Shares (ADS) Issue). The bank has about 570,000 shareholders. Its shares find a
listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American
Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol
'HDB'.
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March 2010 March 2011 March 2012
Citied 779 996 1399
Branches 1,725 1,986 2,544
ATMs 4,232 5,471 8,913
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2.4 Functional Departments of HDFC Bank:The functional departments of the organization consist of the HR department, the
administrative department and the executive department. The HR department of the
organization consists of the people who employ the persons who they think would be able to
do justice with the job handled. The administrative department of the organization consists
of the director and the manager of the organization. They preside over the organization and
control all the operations of the organization such that the organization could run in a
smooth and effective manner. The executive department of the organization consists of the
various employees who execute the job undertaken by them. The employees consists of the
team leaders, the Corporate financial consultants, the telecallers, various staffs and junior
staffs who are the main structural framework of the organization. The organization thus runs
with the effective coordination of the HR department, the administrative department and the
executive department such that the supervisors of the organization preside over the
subordinate employees to give them directions about fulfilling their works most efficiently
and effectively. Technical Consultancy Department: The Technical Consultancy
Department is responsible for technical appraisal of industrial projects.
HR DEPARTMENT:
HDFC Human Resources department plans and direct for the employee population as well
as they are having the following functions as:-
Hiring
Promotions
Reassignments
Position classification and grading
Salary determination
Performance appraisal review and processing
Personnel data entry and records maintenance
Policy development
Work permitting immigration visa program
Workers compensation
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FINANCE DEPARTMENT:
The Finance Manager is responsible for all aspects of the accounting and financial
administration of the HDFC, the supervision of the implementation of the HDFC financial
policies, directives and procedures and the initiation of the financial plans within the
guidelines of HDFC The department contains several distinct sections, each of which is
responsible for a proportion of the activities taking place within the finance department.
MARKETING CONSULTANCY DEPARTMENT:
The Marketing Consultancy Department plays and important role within the Fund as it
studies and analyzes marketing information in order to build solid base for management
decisions. The division also assists projects sponsors in formulating solid marketing
strategies to improve their industries and strengthen their position in the local and
international markets.
RESEARCH DEPARTMENT:
The Research Department is having the capacity to act through four composing units i.e.,
the market research unit, economic studies unit, and statistical studies unit. It is the mission
of the division to provide support BANK for information and consultancy to the senior
management and division in the areas of economic, statistical and marketing information
and consultancy through data Interpretation, processing of economic and statistical data,
market research studies and publishing related periodical reports.
2.5 Organization Structure:
The organization structure of the company HDFC is such that it comprises of the
departments and the employees in the hierarchical order so that they are able to perform
their functions and duties smoothly and effectively doing their job in a manner in which it
should be done. The organization is headed by the administrative department which
coordinates and controls the executive department. The executive department is a link from
the top and the bottom comprising of the lower level employees such that they work
together to fulfill the common objective of getting business from the persons who get in
touch with them and see to it that they are provided with the best of the BANK which
constitute giving financial advise to providing Account to the customers. The lower level
employees and the corporate financial consultants work together to see to it that the database
for providing financial BANK to sufficient number of people is made .They work together
to see to it that this database is followed and worked upon such that more and more number
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of people get themselves avail the financial BANK of the organization. Team leaders who
form the part of the administrative department of the Organization make sure that the clients
that turn up for the financial BANK are dealt with most efficiently and effectively. Each
team lead has a team comprising only of both senior as well as junior market researchanalyst who aid the team lead in the entire market research process as it has been discussed
previously. This is the basic organizational structure followed by HDFC BANK.
2.6 Product and service profile of HDFC Bank:
HDFC Bank offers a bunch of products and services to meet every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises.
For individuals, the company has a range of accounts, investment, and pension scheme,
different types of loans and cards that assist the customers. The customers can choose thesuitable one from a range of products which will suit their life-stage and needs. For
organizations the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services, Mutual fund etc. These affordable
plans apart from providing long term value to the employees help in enhancing
Goodwill of the company: The products of the company are categorized into various
sections which are as follows:
Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
De-mat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards
Prepaid Cards
Investments & Insurance
Forex Services
Payment Services
Net Banking
Mobile Banking
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ATM
Phone Banking
NRI Banking
Rupee Savings AccountsRupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quick remit (North America, UK, Europe, and Southeast Asia)
India Link (Middle East, Africa)
Coequal Lock Box
In todays world many companies have emerged who have taken a serious note on the
importance of market research and he advantages of using it for the better growth and
development of the company. Hence, our competitors are those companys who are in the
market research and development field as well as the consultancies, since they also make
use of market research and business developers.
2.7 Savings Account:
REGULAR SAVINGS ACCOUNT:
Features Benefits
Wide network of branches and over
7300 ATMs, Convenience with net
banking and mobile banking, BillPay to
make all regular utility bill payments
International Debit Card, Personalised
cheques for enhanced security.
SAVINGSMAX ACCOUNT:
Features and benefits Special Privileges
Free International Debit Card, Free
unlimited Transactions
Accidental hospitalization cover- Rs. 1
lakh per annum, Daily cash allowance of
1000 for 15 days.
SENIOR CITIZENS ACCOUNT:
Features and benefits Special Privileges
Free lifetime EasyShop International Preferential Rates on FDs, Special
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Debit Card to the first holder, National
Electronic Fund Transfer,
Preference on Demat Accounts
BASIC SAVINGS BANK DEPOSIT ACCOUNT:
Features Benefits
Free IVR based phone banking, Four free
cash withdrawals available per month
Use NEFT fund transfer, Safe Deposit
Locker
LIMITED KYC ACCOUNT:
Features Benefits
Free IVR based phone banking, Free
Passbook available at branch
Zero initial balance to open account, Zero
balance account so no AQB to be
maintained
PENSION SAVINGS ACCOUNT:
Features and benefits Special Privileges
Zero Balance Account, Free International
Debit Card
Timely communication to the customers
on the receipt of pension payments
orders, no pension disbursal delays
SAVINGS PLUS ACCOUNT:
Features and benefits Special Privileges
Free lifetime International Debit Card,
intercity and multicity banking, 25% off
on locker rental
Transfer funds through NEFT, Special
relationship discount on purchase of gold
bars.
WOMENS SAVINGS ACCOUNT:
Features and benefits Special Privileges
Free unlimited transactions at all HDFC
banks ATMs & non HDFC banks
domestic ATMs by using only HDFC
bank debit card , easyshop womans
advantage debit card with transaction
limit of Rs 25000 per day for cash
withdrawal and shopping limit of Rs
40,000 per day.
Accidental death covers Rs 10 lakhs ,
accidental hospitalization covers Rs 1
lakh per annum , gold loan upto 1%
discount on interest rate .
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CHAPTER 3
RESEARCH
METHODOLOGY
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3.1 Statement of research problem:
PROBLEM DEFINITION:
Human Resource is not able to sort out the problem, that why the performance is not
coming even after giving the full marketing support. The communication technique and
dealing with the customers is also a problem to the sales executives.
3.2 Objectives of research project:
RESEARCH OBJECTIVES :
This study was undertaken:
1) To study the details of services provided by HDFC bank Standard regarding saving
bank account.
2) To analyze the factors that affect the customers decision regarding opening a saving
account.
3) To study the customer preferences and pen down recommendations to improvise the
banks business.
3.3 Research Design and Methodology:
TYPE OF DATA COLLECTED:
Data collected is of two types primary data and secondary data. Primary data is collectedfrom direct sources for a specific purpose. Secondary data is that which is collected by
indirect sources such as magazines, brochure, journals, newspapers etc.
Primary Data Source: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of
primary data was direct personal interview through a structured questionnaire.
Secondary Data Source: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the companys database and website of the
company.
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.
Sampling Units: Customers
Sample Technique: convenience sampling
Research Instrument: Structured Questionnaire.
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SCOPE OF THE STUDY:
1) Understand various saving accounts of the bank.
2) To consider the factors of customer for opening a saving accounts.
3) To understand the mode of transaction most frequently avail by the customer.
SAMPLE SIZE:
My sample size for this project was 100 respondents. Since it was not possible to cover the
whole universe in the available time period, it was necessary for me to take a sample size of
100 respondents.
TOOLS AND TECHNIQUES OF ANALYSIS :
1) Statistical tools used :
Percentage Analysis Method.
Pie charts
Tables
Bar graphs
2) Sampling Techniques used :
The non probability sampling techniques has been used by the researcher.
RESEARCH LIMITATIONS:Some of the limitations of the project are listed as below:
1. The time bound period is the major limitation in research projects.
2. As stipend, money was not given it was difficult to continue the project work.
3. The research is conducted in khanna city only.
4. To convince the people for a proper interviewing process is also difficult.
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CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
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DATA ANALYSIS
This study is based on the sample of 100 persons and most of the people who were
questioned were of 20 to 50 years of age. There were 55% males and 45% females
that were questioned. 55% were of income level 15-25 thousand, 35% of 25-40 and
10% of above 40 thousand.
Do you have a Saving Account?
Table 1.
Response No. of respondents %
Yes 97 97%
No 3 3%
Source : Compiled from Primary Data
Chart 1:
97%
3%
Yes No
Interpretation:
97% respondents have the saving accounts and only 3% do not have saving account. Thisshows that most of the people are interested in opening a saving account for themselves and
there lies a huge business of the bank in this field. Further the 3% people not having it serve
to be the future prospects of the bank.
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What is your Monthly Transaction in your account?
Table 2.
Monthly transactions No. of respondents % (percentage)
5-20 lakhs 28 28%
20-40 lakhs 59 59%
40 lakhs and above 13 13%
Total 100 100%
Source : Compiled from Primary Data
Chart 2.
Cha
Interpretation
59% respondents gave their answer in 20-40 lakhs transactions, 28% respondents gave their
answer in 05-20 lakhs transactions and 13% respondents gave their answer in 40 lakhs and
above transactions. This shows that maximum people have their transactions between 20 to
Interpretation:
59% respondents gave their answer in 20-40 lakhs transactions, 28% respondents gave their
answer in 05-20 lakhs transactions and 13% respondents gave their answer in 40 lakhs and
above transactions. This shows that maximum people have their transactions between 20 to
40 lakh.
24
0%
10%
20%
30%
40%
50%
60%
70%
05L- 20L 20L - 40L 40L - Above
05L- 20L
20L - 40L
40L - Above
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In which Bank do you have your account?
Table 3.
Name of banks No. of respondents %
Kotak mahindra 3 3%
HDFC 33 33%
Co-operative 28 28%
ICICI 5 5%
Others 31 31%
Source : Compiled from Primary Data
Interpretation:
28% have saving account in co-operative, 3% in kotak Mahindra, 33% in HDFC, 5% in
ICICI, and 31% in other or others. This shows that customers are going for government
bank rather than private banks from where there seems more competition.
Which factors do you consider for opening a Savings Account?
Table 4.
25
3%
33%
28%
5
31%Kotak Mahindra
HDFC
Corporative
ICICI
Others
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Response No. of respondents %
Minimum balance 15 15%
Accessibility 15 15%
Free cheque 13 13%
Others 57 57%
Source : Compiled from Primary Data
Chart 4.
Interpretation:
Respondents gave their answer as 15% consider accessibility, 15% Minimum balance, 13 %
Free cheque, and the rest 57% as others. This shows that banks should concentrate on
providing better accessibility facilities to the customers to attract them.
Which mode of transaction do you avail of frequently?
Table 5.
Response No. of response %
26
0
10
20
30
40
50
60
minbalan
ce
accesibility
freecheque
others
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Pay order 12 12
DD 22 22
Cheque 76 76
Total 100 100
Source : Compiled from Primary Data
Chart 5.
Cheque, 76%
DD, 32%
Pay Order, 12%
Cheque DD Pay Order
Interpretation:
12% Response in pay order, 32% like DD, and 76 % costumer want from cheque mode.
Here we see that maximum people go for transaction through cheques. These are mainly
those people that belong to business class and make transactions for that purpose.
Which types of transaction do you make?
Table 6.
Response No. of respondents %
Intercity 33 33
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Outside city 15 15
Both 52 52
Total 100 100
Source : Compiled from Primary Data
Chart 6.
Interpretation:
33% account holder transaction intercity, 52 % Both, and 15% outside city. This shows that
maximum people today go for both intercity and outside city transactions therefore schemes
should be laid down keeping in mind convenience of the customers.
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intercity
outside city
both
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Does your bank assist you in case of any problem?
Table 7.
Response No. of respondents %
Yes 90 90
No 10 10
Total 100 100
Source : Compiled from Primary Data
Chart 7.
90%
10%
Yes No
Interpretation:
90% say yes bank assists them in case of any problem, only 10% say no. this shows that
customer satisfaction is still not achieved 100% and there is room for improvement in this
segment. The bank should look for ways to improvise on this matter as this is of utmost
importance.
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Do you want to open a saving account in HDFC bank?
Table 8.
Response No. of respondents %Yes 80 80%
No 15 15%
Will think later 5 5%
Source : Compiled from Primary Data
Chart 8.
Interpretation.
80% of the respondents say they want to open a saving account in HDFC bank. 15% say
they do not want to open a saving account in it while the rest 5% say they would think later.
Of the large number of people that say that they want to open an account in HDFC not all of
them are account in HDFC, hence it should be found out what are problems and issues they
are facing and should be worked upon. This can effectively help increase the customer base.
Do you know clearly about HDFC savings account?
30
0
10
20
30
40
50
6070
80
yes no think later
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Table 9.
Response No. of respondents %
Yes 35 35%
No 60 60%
Cant say 5 5%Source : Compiled from Primary Data
Chart 9.
Interpretation.
35% of the people say that they know clearly about saving bank account, 60% say that they
dont while 5% of them say that they cant say. Of the large number of people that say that
they dont know clearly of the HDFC savings account, there are some who dont have their
accounts in HDFC while some do have their accounts and yet lack in some aspects. The
bank should work upon informing and explaining its special features in this area in a better
way.
31
0
10
20
30
40
50
60
yes no cant say
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If yes, how did you come to know about it?
Table 10.
Response No. of respondents %
Advertisement 22 22%
Website 12 12%
Friends 35 35%
Others 31 31%
Source : Compiled from Primary Data
Chart 10.
0
510
1520
25
3035
40
advertise
ment
website
friends
others
Interpretation.
22% of the respondents say they came to know about it through advertisement, 12% of them
got to know about it through website, 35% of them came to know about it by friends and the
rest responded they came to know about it through some sources other than these. This
shows that maximum promotion is through word of mouth, and almost equally through
advertisements, however in small cities like this website promotion is not very effective.
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CHAPTER 5
FINDINGS AND
RECOMMENDATIONS
5.1FINDINGS OF THE STUDY
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From the above study we have found that:-
1. Most of the respondents almost 97% respondents have the saving accounts while few
of them who dont have it serve to be the untapped market that can be swept.
2. It can be seen here that most of the people have a monthly transaction of 20 to 40lakh in their saving account while some of them come under the category of those
who have a transaction of less than 20 lakh.
3. It is that one third of the people have their accounts in the HDFC bank while just
few of them have their account in ICICI bank, the other private sector bank.
4. Most of the consider main factor while opening a saving bank account is minimum
balance while some say accessibility and free cheque too.
5. Most of the people find cheque as the most preferable mode of transaction while
some of them do go for DD and pay order too. It largely depends
6. Most of the people say that they deal frequently in both kinds of transactions- inter
city and outside city.
7. Most of the people say that their bank does assist them in case of any problem hence
it shows high level of satisfaction and difficulty in capturing new market.
8. Most of the people when asked reply in affirmative to wanting to open a saving
account in HDFC bank. This includes both existing customers and the prospective
ones.
9. When asked whether the people knew clearly about HDFC banks saving account,
most of the people who are having an account in the bank replied in affirmative
while others denied to have known clearly. This indicates towards banks upcoming
responsibility to increase awareness among the people.
10. It is also seen that the two effective modes of advertisement in a small city are word
of mouth marketing and advertisement on televisions.
5.2 RECOMMENDATIONS
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1. Contract Sales Executive (CSE) should be trained to explain the product features
and its value added services to make customers product selection convenient.
2. Contract Sales Executive (CSE) should recommend right product to the right
customer so as to ensure a high degree of satisfaction among the customer.3. The bank needs to make people aware about there products and the basic benefits
they can derive out of it. And also the differential features of its savings account as
compared to other banks.70% of the people did not even know about the concept,
benefits and features of its saving accounts.
4. The bank should also target small business unit for whom maintenance of the AQB
is not a problem as this segment is not much penetrated.
5. Though the bank offers free doorstep banking once a day this fact is also not known
to many customers or they still do not trust this service what ever the reason the
bank can popularize this service to gain an edge over nationalized banks and Co-
operative Banks.
6. Quality of service has been rated highly important by all demofigureic factors as a
reason for banking with a particular bank, Standard Chartered needs to improve the
services provided to its existing customers before attracting more in the future and
use word of mouth as a promotional tool to increase the sales potential of its savings
account.
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CHAPTER 6
CONCLUSION
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CONCLUSION
Almost all the Banks offer similar features and facilities with their Savings accounts. Thereare certain reasons for existing customers of Saving Account of any Bank to shift to another
Bank. It is found that different people considered different reasons for opening a saving
account. Different people availed of different modes of transaction, the most common and
seemingly convenient being cheque. There are some people who say that their transactions
are confined to within the city only while some say they have transactions only out of the
city, but the maximum number of them have both kinds of transactions. It is good to see that
promotion through all ways is working effectively may it be advertisement, website or word
of mouth. However it is quite sad to know that when asked, most of the deny to be clearly
knowledgeable of the saving account regarding its requirement, facilities and other
propositions. This is the point where maximum focus should be laid. It has been found that
till now there is no such bank that has swept away the major share of market pie, if in the
coming future the bank lays down plans to spread awareness among the regarding its saving
account and its unique proposition, and executes them effectively it would be highly
beneficial for it.
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BIBLIOGRAPHY
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Books & authors:
Sontakki C.N. Marketing Management-Kalyani Publishers -3rd Revised Edition.
Kothari.C.R-Reseach Methodology- Methods & Techniques- Vikas Publishing- 2nd
Edition.
News Papers:
Times of India
Financial Express
Websites:
www.hdfcbank.com
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ANNEXURE
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QUESTIONNAIRE
Demographic Data:Name of Respondent
_________________________________
Contact No.
_______________________
Gender
Male
Female
Income group
XXXXXXXXXXXXXXXXXX
Questions:
Q1. Do you have saving Account?
Yes
No
Q2. What is your monthly transaction in your account?
5-20 lakhs
20-40 lakhs
40 lakhs and above
Q3. In which bank do you have your account?
ICICI
HDFC
Kotak Mahindra Bank
Nationalized
Other Banks
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Q4. Which Factors do you consider for opening a saving Account?
Accessibility
Minimum balance
Free cheque
Others
Q5. Which mode of transaction do you avail of frequently?
Cheque
DD
Pay Order
Q6. What types of transactions do you make?
Inter city
Outside city
Both
Q7. Does your bank assist you in case of any problem?
(a) Yes (b) No
Q8. Do you want to open a saving account in HDFC bank? yes
No
Will think later
Q9. Do you know clearly about HDFC savings account?
Yes
No
Cant say
Q10. If yes how did you come to know about it?
Advertisements
Websites
Friends
Others
Date___________________ Place__________________
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Signature___________________