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A

PROJECT REPORT

ON

CHARACTER ETHICS AND BUSINESS VALUES

IN CONTEXT OF HDFC BANK

SUBMITTED BY:

KAMAL KANT SAINIENROLMENT NO : 04611301710

BBA II YR (3 rd SEMESTER)

In partial fulfillment of the requirementsFor the reward of the degree

OF

BACHELOR OF BUSSINESS ADMINISTRATION

Under the supervision of

MISS CHITRA KHARI

BERI INSTITUTE OF TECHNOLOGY, TRAINING ANDRESEARCH

TIKRI KALAN, DELHI

(Affiliated to Guru Gobind Singh Indraprastha university )


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CERTIFICATE

Certificate that this project report titled character ethics and business values is the

bonfide work of Mr. Kamal Kant Saini who carried out the research under my

supervision. Certified further that to the best of my knowledge the work report here in

does not form part of any other project report or dissertation on the basis of which degree

or award was confirmed on an earlier occasion on this or any other candidate.

Miss. CHITRA KHARI

( )


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PREFACE

Initial in the one module of the project, which is allotted to me, CHARACTER

ETHICS AND BUSINESS VALUES is covered in this project report.

The report contains very nice and well arranged topics related to the subject

CHARACTER ETHICS AND BUSINESS VALUES. The main contents of this project

describes that That what are ethics, Code of Ethics, Business Ethics and many other

topics which is countable in the CHARACTER ETHICS AND BUSINESS VALUES.

The project report also contains a description of Business Ethics which is very

important for an organization to work fairly in an environment.

Overall this reports my work like a guide for the subject CHARACTER ETHICS AND

BUSINESS VALUES.


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ACKNOWLEDGEMENT

I would like to take this opportunity to sincerely thank Miss. Chitra khari for her valuablesupport, guidance and suggestion. Under his able to accomplish my project with

confidence. I would also like to thanks my friends and my siblings who directly or indirectly helped me in my project. I would also like to sincerely thank our Beri InstituteOf Technology Training And Research. Where, I spared my time to have access to wideinformation on internet.

DATE:

PLACE:


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OBJECTIVE OF STUDY

The main objectives of the project were: To gain more information about values and character ethics

To know the importance of values in business.

To study and evaluate human conduct in the light of moral principles.

To collect information about the involvement of ethics in human activities

including business.


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CONTENTSCERTIFICATE..(ii)

PREFACE...(iii)

ANCKNOWLEDGEMENT..(iv)

CHAPTER - 2

CONCEPTUAL DISCUSSION

CHAPTER 4

DATA ANALYSIS AND FINDINGS

CHAPTER-5

SUGGESTION AND CONCLUSIONS

BIBLIOGRAPHY

CHAPTER -1

INTRODUCTION

a.) INDUSTRIAL

REVIEW

b.) COMPANEY PROFILE

c.) SWOT ANALYSIS

d.) COMPETITOR

ANALYSIS

CHAPTER - 3

a.) RESEARCHMETHODOLOGY


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INDUSTRIAL REVIEW


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HDFC bank was among the few private banks to have started their operations in 1994

after the government of India allowed new private banks to emerge in Indian banking

sector. Housing development and Finance Corporation of India has been credited with

being one of the best financial bank in India with the track record of giving the best

financial advice to its customers and offering the best products and services in banking

area. Due to its impeccable service offered to the customer as per their demand and

convenience, HDFC bank has become one of the leading banks in India offering

customer service. In fact customers credit it for being one of the finest in customer

service leading to easy and convenient banking. With its experience in the financial

markets, a strong market reputation, large shareholder base and unique consumer

franchise, HDFC has positioned itself as being the bank that cares for the customers.

HDFC Bank provides a variety of wholesale, retail, and depository financial services

through more than 1,400 branches and some 3,000 ATMs throughout India. Established

by the Housing Development Finance Corporation in 1994, the bank offers deposit

accounts, loans, credit cards, insurance, investments, and related services. HDFC Bank

targets individual customers in the middle and upper-class, as well as trusts, small

businesses.

COMPANY PROFILE

HDFC bank is a leading private sector bank and financial services company in India. The

bank aspires to be the preferred provider of financial services to upper- and middle-


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income individuals and leading corporations in India. The strategy of the bank over the

years have been to provide a comprehensive range of financial products and services for

the customers through multiple distribution channels, with high quality service and

superior execution of the services offered. The bank principally deals into mainly three

business activities which can be categorized as: retail banking, wholesale banking and

treasury operations.

The bank has achieved tremendous growth since it started its operations in January 1995.

Over the last five years it has expanded operations from 231 branches and 732 ATMs in

122 cities to 1,412 branches and 2,890 ATMs in 527 cities in India as on December 31,

2008. Additionally the Bank has a branch in Bahrain and representative offices in the

U.A.E and Kenya. During the five years, banks customer base grew from 3.40 million

customers to over 17 million customers. As with time the HDFC bank expanded itsgeographical reach and market penetration, with this the banks assets also increased, and

it grew from Rs. 30,424 crore as of March 31, 2003 to Rs. 183,185 crore as of December

31, 2008. The net income also recorded an increase from Rs. 388 crore for the fiscal year

2003 to Rs. 1,590 crore for the fiscal year 2008 at a compounded annual growth rate of

32.60%.

Notwithstanding the pace of growth, the bank has maintained a strong balance sheet and

a low cost of funds. As of December 31, 2008 net non-performing assets constituted

0.6% of net advances. The average non-interest bearing current accounts and low-interest

savings accounts represented 51.70% of total deposits for fiscal 2008. These low-cost

deposits, which include the cash float associated with banks transactional services, led to

an average cost of funds including equity for fiscal 2008 of 4.10%.

HDFC bank is a part of the HDFC group of companies founded by our principal

shareholder, Housing Development Finance Corporation Limited (HDFC Limited),

which is a public limited company established under the laws of India. HDFC Limited

and its subsidiaries owned 19.38% of banks outstanding equity shares as of February 06,

2009.

The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial

Services


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Limited (HDBFS). HSL is primarily in the business of providing brokerage services

through the internet and other channels. HDBFS is a non-deposit taking non-bank finance

company (NBFC), for the establishment of which the Bank received Reserve Bank of

India (RBI) approval during the fiscal year 2008.

HDFC bank is a commercial bank of India, promoted by the housing development

finance corporation, a premier housing finance company of India. The company

headquarters are situated in Mumbai and has around all the branches in 528 cities which

are all linked on an online real- time basis. HDFC bank is a type of public company and

was founded by Mr. Deepak Parekh. The bank has approximately 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.

The chairman of HDFC is Mr. Jagdish capoor and Mr. Aditya Puri serves as the company

managing director. They have been responsible for making the company peoples

company with their efforts. The company revenue in 2009 Rs. 197.5 billion and its profit

has been Rs. 2.24 billion. The company now has total assets of Rs. 1.8 trillion and has

52,687 employees currently working with HDFC. The bank has about 570,000

shareholders. The shares are listed on 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'.

Acquisitions and Mergers

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

by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000.

This was the first merger of two private banks in India. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of India,shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of

Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more

than 1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,


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22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the

combined entity is over Rs. 1, 63,000 crore. The amalgamation added significant value to

HDFC Bank in terms of increased branch network, geographic reach, and customer base,

and a bigger pool of skilled manpower. The mergers can be termed as a quest for growth

in the Indian banking environment.

Board committees

The Board has constituted committees of Directors to take informed decisions in the best

interest of the Bank. These committees monitor the activities falling within their terms of

reference. Various committees of the Board were reconstituted during the year due to

induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are

as follows: The Board's Committees are as follows:

Audit and Compliance Committee

Compensation Committee

Investors' Grievance (SHARE) Committee

Risk Monitoring Committee

Credit Approval Committee

The Premises Committee

Nomination Committee

Fraud Monitoring Committee

Compensation Committee

The Compensation Committee reviews the overall compensation structure and policies of

the Bank with a view to attract, retain and motivate employees, consider grant of stock

options to employees, reviewing compensation levels of the Bank's employees vis--vis

other banks and industry in general. The Bank's compensation policy is to provide a fair

and consistent basis for motivating and rewarding employees appropriately according to

their job / role size, performance, contribution, skill and competence. The Committee met3 (three) times during the year.

The Premises Committee

The Premises Committee approves purchases and leasing of premises for the use of

Bank's branches, back offices, ATMs and residence of executives in accordance with the


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guidelines laid down by the Board. The Committee is chaired by Mrs. Renu Karnad. The

Committee met 4 (four) times during the year.

Fraud Monitoring Committee

Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud

Monitoring Committee, exclusively dedicated to the monitoring and following up of

cases of fraud amounting to Rs.1 crore and above. The objective of this Committee is the

effective detection of frauds and immediate reporting thereof to regulatory and

enforcement agencies and actions taken against the perpetrators of frauds.

Customer Service Committee

Committee monitors the quality of services rendered to the customers and also ensures

implementation of directives received from RBI in this regard. The terms of reference of

the Committee are to formulate comprehensive deposit policy incorporating the issues

arising out of death of a depositor for operations of his account, the product approval

process, and the annual survey of depositor satisfaction and the triennial audit of such

services. The Committee met 4 (four) times during the year.

Corporate governance

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

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

organizational efficiency. This Corporate Governance Policy, therefore, is established to

provide a direction and framework for managing and monitoring the bank in accordance

with the principles of good corporate governance.

Code of corporate governance

The Bank believes in adopting and adhering to best recognized corporate governance

practices and continuously benchmarking itself against each such practice. The Bank

understands and respects its fiduciary role and responsibility to shareholders and strives

hard to meet their expectations. The Bank believes that best board practices, transparentdisclosures and shareholder empowerment are necessary for creating shareholder value.

The Bank has infused the philosophy of corporate governance into all its activities. The

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

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


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

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

spirit.

Progress

The Banks staffing needs continued to increase during the year particularly in the retail

banking businesses in line with the business growth. Total number of employees

increased from 14878 as of March31, 2006 to 21477 as of March 31, 2007. The Bank

continues to focus on training its employees on a continuing basis, both on the job and

through training programs conducted by internal and external faculty. The Bank has

consistently believed that broader employee ownership of its shares has a positive impact

on its performance and employee motivation. The Banks employee stock option scheme

so far covers around 9000 employees.

HDFC Bank has demonstrated very consistent delivery of performance over the last so

many years and has already notched up its place as the one of the largest private sector

bank in the country and the growth momentum is expected to continue. The bank has

stepped up to retail customer acquisition with deposit accounts increasing from 6.2

million to 8.7 million and total cards issued (debit and credit cards) increasing from 7

million to 9.2 million (approx). Not only the retail banking of HDFC is blooming day by

day but its services offered in wholesale banking has also given tremendous growth to the

bank. The online banking system i.e. net banking has been an eye attraction for the

customers as it gives them fast and convenient banking. As already mentioned about its

growing distribution network the bank is continually planning for expansion of the

branches of the bank. Customers are efficiently serviced through telephone banking also.

The Bank's expansion plans take into account the need to have a presence in all major

industrial and commercial centers 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


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centers where the NSE/BSE has a strong and active member base. With the excellent

distribution network HDFC aspires to have as strong position in the market and with the

customers.

HDFC bank has always aspired to become a world class bank and has been trying toadopt an efficient and effective approach to understand the ever changing customer

demands and to offer them superior service. HDFC thus has been marketing itself with

the tagline saying we understand your world.

Now if one observes the revenue earned by HDFC during last year than it can be said that

revenue growth was driven principally by an increase in net income. The other income

(non interest revenue) increased primarily due to fees and commissions , profit/ (loss) on

revaluation / sale of investment and income from foreign exchange and derivates income.

Operating (non-interest) expenses increased due to higher infrastructure and staffing

expenses in relation to the expansion in the branch network, and growth in the retail loan

and credit card businesses.

net income69%

fee income18%

forex income9%

treasury and otheroperating income

4%

net revenue breakdown FY09

Figure- HDFC bank revenue breakdown

Awards and achievements


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HDFC has earned several awards for its growth and progressive services offered to the

customers. A few are listed below:

Corporate best bank award Dun and Bradstreet American Express corporate

best bank award 2007 Best Bank Award in the private sector category- outlook money and NDTV profit

Best Retail Bank in India The Asian banker excellence in retail financial

services awards.

Euromoney Awards 2009 -'Best Bank in India'

Economic Times Brand Equity & Nielsen Research annual survey 2009 Most

Trusted Brand - Runner Up Asia Money 2009 Awards - 'Best Domestic Bank in India'

IBA Banking Technology Awards 2009-'Best IT Governance Award - Runner up'

Global Finance Award -'Best Trade Finance Bank in India for 2009

COMPETITIVE ANALYSIS

ICICI bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$

81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for

the year ended March 31, 2010. The Bank has a network of 2,009 branches and about

5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of

banking products and financial services to corporate and retail customers through a

variety of delivery channels and through its specialized subsidiaries in the areas of

investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches

in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International Finance Centre and representative offices in United Arab Emirates, China,

South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has


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established branches in Belgium and Germany. The bank has a presence in around 18

countries across the globe. They offer a wide gamut of retail products to its retail

customers and as well as other banking products related to the corporate segment. These

include ICICI personal loan, ICICI home loan, ICICI car loan, ICICI credit cards, ICICI

LAP etc. They also offer financial services that span asset management, venture capital,

investment banking, life and non-life insurance. ICICI equity shares find a place in the

Bombay Stock Exchange and National Stock Exchange in India with its American

depositary receipts listed in the New York Stock Exchange. ICICI Bank is one of the

most popular banks in recent times with its presence felt through a huge network of 1,495

branches and 4,816 ATMs across the country, with profits running into 8.8 billion in the

quarter ended June 2009. The bank also has a presence in around 18 countries across the

globe. They offer a wide gamut of retail products to its retail customers and as well asother banking products related to the corporate segment.

Milestones

In 1999, ICICI become the first Indian company and the first bank or financialinstitution from non-Japan Asia to be listed on the NYSE.

Merger of ICICI Bank with Bank of Madura Limited in fiscal 2001 and 2002.

In October 2001, ICICI Personal Financial Services and ICICI Capital Services

wholly owned by ICICI Limited were allowed to be merged with ICICI Bank,

which was formally approved by the RBI in April 2002.

K.V. Kamath is the Chairman of the ICICI group. Chanda D. Kochhar, the

Managing Director & CEO of ICICI Bank was recently named in Forbes list of the Worlds 100 Most Powerful Women and ranked in the top 20 of the list

compiled by Forbes, sharing the honor with Sonia Gandhi, Congress President

who ranked 13 th.


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ICICI bank retail products

Accounts and deposits

Savings account

ICICI bank savings account offers the customers following features:-

Debit-cum-ATM Card

Money Multiplier Facility

Internet Banking

Customer Care

Mobile Banking

Standing Instructions Nomination facility

DD Call and Collect

Debit-cum-ATM Card - With ICICI Bank Savings Account the customers will get a

debit card that one can use to withdraw cash from any ATM. Customers may also use

their debit card to directly make purchases through a Visa/MasterCard POS (Point of Sale) machine available at most stores, according to the bank this will help customers

access their money from anywhere. The ICICI Bank International debit card is a debit-

cum-ATM card providing customers with the convenience of acceptance at merchant

establishments and cash withdrawals at ATMs. If the customers want to withdraw cash

from their ICICI Bank Savings account, they can walk into any bank's ATM and use their

ICICI Bank ATM-cum-Debit card for free. The above benefit is available free of cost for

the first 5 transaction per month upto Rs 10,000 per transaction.

Money Multiplier Facility- The Money Multiplier feature gives customer the liquidity of

a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by

creating a Fixed Deposit linked to customers Savings Account providing them the

following facilities.


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Maximum returns According to the bank the customers money is never idle.

Creation of a linked FD ensures higher rate of interest on their Savings Bank

Deposits. One can issue instructions through any channel such as the ICICI Bank

Branch, ICICI Bank Phone Banking and ICICI Bank's Internet Banking for

creation of Fixed Deposit(s) from the surplus funds in your Savings Bank

Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be

created in multiples of Rs. 5,000 for tenure of one year or more as instructed by

the customer.

Maximum Liquidity The customers can withdraw the funds from their savings

account through any channel such as the ICICI Bank ATM, ICICI Bank Internet

Banking or by issuing a cheque etc. All linked Fixed Deposits will be enabled for

automatic Reverse Sweep in multiples of Rs. 5000 on a Last-In-First-Out (LIFO)

basis when the balance in the Savings Account falls below Rs.10, 000. The

amount reverse swept will earn interest rates at the applicable rate for the period

that the deposit was held with the Bank. The remaining amount will continue to

earn higher interest at the original rate applicable to the fixed deposit.

Auto Renewal - Under this facility, when their deposits fall due, the bank will

automatically renew the principal and accrued interest for the same tenure as theoriginal deposit .

Internet Banking -For internet banking the customers need to log in with their user ID

and password and make banking a hassle-free routine. It is offered free of cost.

Customer Care The bank has 24-hour Customer Care service always available to

answer any query or take their instructions.

Mobile Banking The customers have an option of mobile banking through which they

can do Transferring of funds or getting to know their balance.

Standing Instructions - ICICI Bank accepts and supports Standing Instructions.

According to them the customers don't have to worry about the chore of carrying out a


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routine transaction. They can just set up a Standing Instruction and then the bank will

manage.

Nomination Facility The customers may nominate a person as beneficiary to their

account proceeds. Nomination facility available for bank deposits.

There can be only one Nominee for a deposit account whether held singly or

jointly.

A person legally empowered to operate a minor's account can file a nomination on

behalf of the minor.

Applicants can make nomination by filling up the Form prescribed under the

Banking Companies (Nomination) Rules 1985

The nomination details can be changed during the subsistence of the account

relationship by filling up the Form prescribed under the Banking Companies

(Nomination) Rules 1985.

DD Call and Collect according to the bank the customers need to wait in bank to

collect DD they can do so on the way to the branch, by just calling Customer Care and

providing them details of the DD to be prepared and collect it ready and signed at the

branch .

Salary accounts

ICICI Bank Salary Account is a benefit-rich payroll account for Employers and

Employees. As an organization, one can opt for Salary Accounts to enable easy

disbursements of salaries and to have access to other benefits too. According to the bank

with ICICI Bank Salary Accounts employees will enjoy the convenience of having the

largest network of ATMs, free 24 hour phone banking and free internet banking. What

the customers would require to do is to send ICICI Bank an advice (in form of a


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cheque/debit instruction, ecs, etc) for the total salary amount along with the salary details

of the designated employees in a soft and hard copy format and bank will credit the

respective employees' accounts as per the companys statement of advice.

ICICI Bank Salary Accounts has the benefits of reduce paper work and saves remittance

costs and also the employees receive instant credit of salaries. Besides all of the above,

employees will automatically become ICICI Bank account holders with special benefits

and privileges of 8-8 banking, Investment advisory and much more. ICICI Bank also has

a special offering: Defense Banking Services designed exclusively for the armed forces.

Fixed deposits

The ICICI bank fixed deposits offer following advantages:-

Wide range of tenures.

Choice of investment plans.

Partial withdrawal permitted.

Safe custody of fixed deposit receipts.

Auto renewal possible.

Loan facility available.

Features

The customers can deposit any amount of money in Fixed Deposit for as long as

they wish between 15 days to 10 years. All fixed deposits come with a set choice

of investment plans. Fixed Rate Deposit accounts also provide Fixed Loans. Re-

investment Fixed Deposit rates do not change but works like a Recurring Debit

Account transaction. In other words, Re-investment Plans are compounded over

traditional deposits and hence are more lucrative over different time periods.

Other features include:

Minimum Balance


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Customers can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs

10,000.

Nomination

Nomination facility available for bank deposits.

There can be only one Nominee for a deposit account whether held singly or

jointly.

A person legally empowered to operate a minor's account can file a nomination on

behalf of the minor.

Applicants can make nomination by filling up the Form prescribed under the

Banking Companies (Nomination) Rules 1985.The nomination details can be changed during the subsistence of the account

relationship by filling up the Form prescribed under the Banking Companies

(Nomination) Rules 1985.

Choice of two investment plans:

Traditional

Interest payable monthly or quarterly as per your convenience

Maturity period ranges from 15 days to 10 years

Reinvestment

Interest is compounded quarterly and reinvested with principal amount

Maturity period ranges from 6 months to 10 years

Benefits


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Fixed Deposits at ICICI Bank comes with nomination facility. The bank also offers

online access to Fixed Deposits through their Internet Banking channel. Internet Banking

at ICICI Bank allows customers to connect to their Credit Card, Loan and their Fixed

Deposit with their savings account. In re-investment deposits, the interest is compounded

quarterly and reinvested with the principal. Traditional term deposits provide tax shelter

and shield you from factors affecting fixed deposits in India over longer periods of fixed

time.

All the facilities available with ICICI bank can be listed as follows.

Channels

ICICI Bank has the following channels through which it offers its products and services

to its customers.

Branches

ATMs

Internet Banking

Mobile Banking

Phone Banking

Products and services

ICICI Bank offers a host of products and services to its clients, which include Deposits,

Loans, Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.

Deposits

Following deposits are offered:

Savings Account Advantage Deposit


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Special Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Tax-Saver Fixed Deposit Young Stars Savings Account Child Education Plan Bank@Campus Salary Account Advantage Woman Savings Account EEFC Account Resident Foreign Currency (Domestic) Account Privilege Banking No Frills Account Rural Savings Account People's Savings Account Self Help Group Accounts Outward Remittance Freedom Savings Account Family Banking

Loans

ICICI Bank offers following loan facilities:

Home Loans Loan Against Property Personal Loans Car Loans


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Two Wheeler Loans Commercial Vehicle Loans Loans Against Securities Loan Against Gold Ornaments Pre-approved Loans

Cards

ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The

various cards offered by ICICI bank are as below:

Consumer Cards

Credit Cards

Travel Cards

Debit Cards

Commercial Cards

Corporate Cards

Prepaid CardsPurchase Cards

Distribution Cards

Business Cards

Axis bank

Axis Bank, previously known as UTI Bank, is one of the leading Banks of India along

with HDFC Bank and ICICI Bank. Established in 1994, it's the first of the new privatesector banks in India to start its operations, when Government of India opened the gate

for the private banks to flock into the Indian financial market. Though the bank started its

operation with the name UTI Bank, but later, in order to avoid ambiguities and confusion

with other discrete entities carrying the same name, it changed its name to its current


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form (Axis Bank) in April 2007. Axis Bank Limited recorded a total income of Rs.

13,745.04 crore as on the year ended March 31, 2009. It also made a net profit of Rs.

1,812.93 crore in the same financial year. Axis Bank offers a range of financial products

and services to its clients throughout the country. It also has special strength in retail and

corporate banking. Axis Bank offers following services:

Personal Banking Corporate Banking NRI Priority Banking

Personal banking

The Personal Banking of Axis Bank includes following services:

Accounts

Zero Balance Savings Account

Krishi Savings Account

Easy Access Savings Account

Prime Savings Account

Corporate Salary Account

Women's Savings Account

Demat Account

Senior Citizen's Account

Defence salary Account

Trust/NGO Savings Account

RFC(D) AccountAzzadi - No Frills

Pension Savings Account

Deposits


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Fixed Deposits

Recurring Deposits

Encash 24

Tax Saver Fixed Deposit

Loans

Home Loan

Car Loan

Personal Loan

Loan Against Shares

Loan Against Property

Loan Against Security

Study Loan

Consumer Loan

Cards

Credit Cards

Debit CardsPrepaid Cards

Payments

Bill Pay

Electronic Clearing Service

Tax Payments

Tax e-Payments Direct Tax Payments


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Pension Disbursement

Other Services

Mobile RefillLocker

Online Shopping

IPOS mart

E-Statement

Credit

Large Corporate

Working Capital Finance Term Loans Trade Services Structured Finance Supply Chain Management Overseas Transactions

Agri Business

Kisan Power Powertrac Commodity Power Contract Farming Arthia Power

SME Standard

SME Fast Track

Microfinance


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Priority banking

Following services are offered under this category:

Accounts

Resident

NRI

Deposits

Fixed Deposits

Recurring Deposits

Encash 24

Loans

Home Loan

Personal Loan

Loan Against Property

Loan Against Security

Car loans

Consumer Power

Study Power

Cards

Priority Debit Card

Credit Cards

Platinum Credit Card Gold Plus Credit Card Gold Credit Card Silver Credit Card


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Secured Credit Card eShop Card

Travel Currency Card

Remittance Card

Gift Card

Other Services

o Mobile Refill

o Locker

o Online Shopping

24 hour banking services

Following services are offered under 24 x 7 Banking:

Internet Banking

Mobile Banking

Savings Account NRI Account

Current Account

Phone Banking

Visa Money Transfer

Power Transfer

ATM

KOTAK MAHINDRA BANK


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Kotak Mahindra is among the leading financial organization of India, with a range

of financial services that caters to all customers' day to day requirements. Their

products spans from commercial banking, to stock broking, to mutual funds, to life

insurance, to investment banking diverse needs of individuals and corporate are

catered to. The Kotak group has a net worth of more than Rs. 6,799 crore with the

branches, franchisees, representative offices and satellite offices spread across

cities and towns in India. They also have global offices in New York, London, San

Francisco, Dubai, Mauritius and Singapore. The Kotak Group offers their services

to approximately 6.4 million customers.

The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital

Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pintoand Kotak & Company. A stake in the group was taken in by industrialists Harish

Mahindra and Anand Mahindra and this is the time when the company changed its

name to Kotak Mahindra Finance Limited.

Kotak Group Products & Services

1. Bank

2. Credit Cards

3. Life Insurance

4. Mutual Funds

5. Car Finance

6. Securities

7. Institutional Equities

8. Investment Banking

9. International Business10. Kotak Private Equity

11. Kotak Realty Fund

12. Wealth Management


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About Kotak Mahindra Bank

The flagship company of Kotak Mahindra Group, Kotak Mahindra Finance Ltd was

established in 1985. The same got converted into a bank - Kotak Mahindra Bank Ltd in

March 2003. Kotak Mahindra bank has presence in commercial vehicles, retail finance,

corporate banking, treasury and housing finance.

Services of Kotak Mahindra Bank

Deposit Accounts

Savings account Current Account Term Deposits

Loans

Personal Loans Home Loans Loan Against Property

Investment Services

Demat Mutual Fund Insurance Gold


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Convenience Banking

Net Banking Mobile Banking Phone Banking ATM Network

PUNJAB NATIONAL BANK

The Punjab National Bank or PNB is one of the well known commercial and banking

institutions in India. It is the second largest government owned and regulated

commercial bank in the country and offers specialized solutions and financial services

in a number of sectors. Around 37 million customers are served by the bank on an

average basis. The customized facilities and services make it a trusted name in the

domain of banking.

Growth of Punjab National Bank

Punjab National Bank was registered under the Indian Companies Act on 19 May in the

year 1894 and its first office was set up at Anarkali Bazaar in Lahore. Since then, the

bank has become a great name in the field of banking and is very much preferred by the

customers for the wide range of its services. Today, the bank has around 4,904 branches

in around 764 cities. Due to its facilities and services of high standards, Punjab National

Bank has also been the recipient of a number of prestigious awards. It has been adjusted

as the 248th biggest bank across the globe according to a recent survey made by Bankers

Almanac in London. The Economic Times has also listed the bank as 38th among the

premier 500 companies and the 9th among the most trusted brands in India. The total

asset value of the bank amounts to around US$60 billion. There is also a subsidiary of the


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PNB in the United Kingdom. In addition the bank also has branches in some other cities

like:

Kabul Honk Kong Oslo Shanghai Dubai

Services of Punjab National Bank

Punjab National Bank offers financial solutions and services in an array of sectors. All

these services that are offered keep pace with the changing market trends in order to

fulfill the needs and preferences of the customers. Some of the well known sectors on

which the main functions of the bank are based are:

Personal Banking Corporate Banking Agriculture finance services

Industrial finance services Trade financial services International banking services

PNB also has commercial relationship with more than 200 prestigious international banks

across the globe. It has the provisions of Rupee Drawing Arrangements with around 15

exchange companies in the UAE and 1 in Singapore. In case of the personal banking

segment, the bank offers customized solutions to take care of almost all financial needs of

the customers. Some of the well known services that are offered in the bank are:

Savings Fund Account Fixed Deposit scheme Current account Loan services


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Punjab National Bank is also a well known name in housing loan benefits. The bank

offers both short term and long term loans. The rates are also affordable and can be paid

within a particular time. The housing loans are given for a number of purposes such as:

Construction of a building Purchase of a new house or a flat Purchase of flat or house on a First Power of Attorney basis For the purpose of repair or renovation of a house or a building

The PNB Housing Finance sanctions around 80% of the cost of the project. However,

the maximum amount is around Rs 50 lakh. The maximum loan amount for the

purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a

period between 5 and 20 years before one becomes 65 years of age. The interest of the

loan is based on the reducing balance and the principal amount of the loan is also

based on the repaying capability of the borrower.

Mutual funds of Punjab National Bank

The mutual funds of Punjab National Bank are covered under the Principal PNB Asset

Management Company. Some of the well known schemes of mutual funds are:

Principal Growth Scheme Principal balanced Fund Principal Income Fund Principal government Securities Fund Principal Income Fund Short Term Debt Principal Cash management Fund Principal Index Fund

Table showing analysis on different parameters:-

S.NO PARAMETE

RS

HDFC

BANK

ICICI

BANK

AXIS BANK KOTAK

MAHINDR

PUNJAB

AND


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A

BANK

NATIONA

L

BANK 1. BRANCHES 1412

(INDIA)

141(DELHI

)

2009

(INDIA)

109

( Delhi)

1700+

(INDIA)

78(DELHI)

245

(INDIA)

66(DELHI)

3850(IND

A)

213(DELH

I)2. ATMs 5219

(INDIA)

4055

(INDIA)

117approx.

(INDIA)

3. CHEQUE

DEPOSIT

BOX

YES YES YES YES YES

4. EASY

INTERNET

BANKING

YES YES YES YES YES

5. AVERAGE

QUARTERLY

BALANCESAVINGS

ACCOUNTVALUE

ADDED

SAVINGS

REGULAR-

Rs.10,000

(URBAN

/METRO)

Rs. 5,000

(SEMI

URBAN)

SAVINGS

MAX

ACCOUNT

Rs. 25,000

Rs. 10,000

(URBAN

/METRO)

Rs. 5000

(SEMI

URBAN)

ZERO

BALANCE-

Rs.5,500

EASY

ACCESS-

Rs. 5,000 in

metro or urban

centers,

Rs. 2,500 in

semi urban

centers and Rs.

1,000 in rural

ACE:

Rs.50,000

PRO:

Rs.20,000

EDGE:

RS.10,000

PNB

PRIDENT

SWEEP-

Rs.10,000

(URBAN

/METRO)

Rs. 5,000

(SEMI

URBAN)

TOTAL

FREEDO

M


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SENIOR

CITIZENS

Rs. 5000

NO

FRILLS-

NIL

KIDS

ADVANTA

GE

ACCOUNT

Rs. 5000

SUPER SAVINGS

ACCOUNT

Rs. 25000

centers.

PRIME

SAVINGS

ACCOUNT-

Rs 5,000 (urban

& metropolitan

branches) or Rs

2,500 (rural &

semi-urban

branches)

SAVINGS

FUND

SALARY

ACCOUN

T-

Rs. 0

6. RATE

APPLICABLE

ON SAVINGS

ACCOUNT

Saving A/c3.50% on

regular savingsaccount

Saving A/c3.50% and

interest paidHalf Yearly

3.50% andinterest paidQuarterly oneasy access

account

3.5% pa

3.50%

7. Gold debit card Yes yes yes Yes Yes8. Statement

charges

FreeQuarter

FreeQuarter

FreeQuarter

FreeQuarter

Free

monthly

9. 24 hour phone

banking

Yes yes yes Yes Yes

The following list of the fixed deposits that was created by interacting with the customers

as what they prefer most of the listed banks. The customers said that they are not aware

about the FDs of Kotak Mahindra bank and dont mind Punjab national bank as they trust

the bank with all of its products. The comparison is made on the basis of what customers

think was beneficial.


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FIXED DEPOSITS

Account

name

Bank

Name

Type of

account

Rate Minimum

balance/deposits

Interest paid

FixedDeposit

ICICI

BANK

FIXED

DEPOSITS

9.5% Rs.10,000 QUARTERLY

Regular Fixed

Deposit

HDFC

BANK

FIXED

DEPOSITS

8.75% RS. 10,000 QUARTERLY

FixedDeposit

AXIS

BANK

FIXED

DEPOSITS

2.50% RS. 10,000 QUARTERLY

ANALYSIS

When discussed with customers regarding their preference for the various Private Banks

the analysis from that was that ICICI Bank and HDFC are the two leading private banks

of the city. This is mainly because. These two banks are the first private banks which has opened their branches in the

city.

ICICI and HDFC brands name, play an important part in their success in the city

because people usually go through the name the company.

The difference lies within the few parameters that seem to differ with in the banking

structure of different banks especially public sector bank i.e. Punjab national bank and

private sector banks i.e. HDFC, ICICI, AXIS and KOTAK MAHINRDA bank. If one

closely observes there is not major difference between the services offered in these banks

what differs is their banking culture and how they offer their services. The factors which

distinguish are-

Business process re-engineering


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Proper and timely management of changes

Large number of transactions and changes

Internal commitment

Availability of adequate finance

Strategic Human Resources changes

PSU banks which are a dominating force in the Indian banking system have

lacked a proactive HR environment. However, much has changed with the

opening of other sectors and increased competition from newer banks in the

system. So Punjab national bank has undergone a drastic change with in time andhas been giving a serious competition to HDFC bank. There is a realization that

skill development is extremely important for staff retention as well as the quality

of manpower, and all banks whether HDFC or any other bank had in place a

system of continuous professional learning. A few banks like Kotak Mahindra

are time and again in the process of revamping their training processes and their

emphasis is being laid on hard as well as soft skills. Banks are keen to tie up with

external training agencies for in-house training. Now if one look at the retail

products offered at different banks then the savings account facility offered at

Punjab national bank finds more takers in the middle level earning group of

people like for example the total freedom savings account of PNB where there is

no need to maintain an average quarterly balance and even the fees that is

deducted for other accounts where the customers are not able to maintain average

balance is much less than HDFC, ICICI, AXIS and KOTAK MAHINDRA bank.

Kotak Mahindra bank seems to target customers of higher league as they dont

have many branches in Delhi as compared to HDFC, ICICI, and AXIS bank.

They have their own exclusive class of customers and they market their products

like that only. The current and savings account of Kotak Mahindra bank is

marketed with terms like the power to have an exclusive banking service. Now

HDFC bank has a very special way of treating its customers by giving them the


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convenience of imperia customer programme, classic customer programme and

preferred customer programme. This helps the banks in attracting more and more

customers for the retail products. This is referred as priority banking. The plus

current account of HDFC bank is preferred more by the customers the minimum

balance required to be paid is RS. 1, 00,000 and the interest paid are nil. Punjab

national bank actually has been able to develop a more trustworthy relation with

the customers since its a public bank and does not charge much for not

maintaining AQB. HDFC bank has been a leader clearly among the private banks

and has its own strong and loyal customer base ICICI bank has been giving a

close competition to HDFC bank as told by the customers. After the customers

were contacted Bank FD emerges out to be the most preferred option for the

clients to invest in the market after real estate. This is also dependant on variousreasons which are given as under:

o Easy loans available against the Bank Fixed Deposits.

o Clients can withdraw their money at almost any time giving them the

option of maintaining Liquidity.

o With all this Bank FD also provides a decent return concerned the

minimum of the risk in any of the available investment instruments.

o We have seen above in the analysis of nationalized vs. private banks thatnationalized banks are the more preferred ones, this also adds weight to

clients preferring Bank FDs due to trust build during all these years.

Then, next preferred option for the clients is Unit link plan/Insurance . Another thing

that was noted were that majority of clients preferred the short term fixed deposits as

their favorite option. Most of the clients use the ideal money which they have to meet the

uncertainty or short term requirement. Now if we talk about insurances the preference of

the people who had invested in the insurance sector, it is very clear that LIC is the leading

company in this field, because of many factors such as:-.


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LIC is leading in this field mainly, because it is the first mover in the insurance

sector and thereby had captured most of the market.

LIC had a very good network of agents, who can be seen as the back bone of the

company.

LIC had provided better service in the past which had made trust in the mind of

the people and for that reason they feel more comfortable.

HDFC and ICICI are the second in this field mainly because they had opened

their branches recently but have made progress in capturing a significant share of

the market and in the future the ratio is decrease, because there are many

opportunity to cash in by both the company .

The features that distinguish HDFC bank from other banks, according to the customers

are:-

1. The customers feel that services across different branches of the HDFC bank differs

since they have different branches for various departments for example Dwarka sector 22

which deals with visa services because of this the customer have an advantage of

convenience banking

2. Customers having long relationship with bank rely a lot on the investment services and

advices offered by the bank since bank through one or the other way try to give some

benefits to such customers, the bank named them as classic customers.

3. Customers call HDFC bank as friendly and reliable bank because of its CRM services

4. HDFC bank is also regarded as a leader in deploying technology in its services which

makes it different from other banks.


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bank sometimes, and the other reason is that most of the time the sales staff does not give

what they promise, their information generally differs from the bankers in the bank this

create a bad impression about the company.

In the banking sector Punjab national bank is the bank many customers prefer -

PNB is the most preferred bank because of its brand equity and also because it has an old

and loyal customer which has proved to be a great advantage.. There are several things

which favor them including:

The companys image in the mind of the people

The companys successful track record in providing life long services to its

customers

A very good agent base

Excellent relationship with clients

A large Part of the Market yet to be covered by Mutual Funds-

Large parts of the people do not know about the mutual funds investment and insurance

and other retail products schemes but they have the power of Money. These clients

should be cash in by the HDFC bank.

rescued document 12

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