AMITY UNIVERSITY UTTAR PRADESH NOIDA

AMITY SCHOOL OF BUSINESS

Summer Internship Project Report

on

“A Study of the Services and the Marketing Strategy provided by the

HDFC Bank”.

(HDFC BANK)

Name of the student: SANJARI MEHTA

Enrolment Number: A3923016009

Class Roll Number: 26

Course: BBA+MBA (DUAL DEGREE)

Batch- 2016-2020

Faculty Supervisor: Dr. Ruchi Jain

 DECLARATION BY STUDENT

This is to certify that I, Sanjari Mehta, a student of BBA+MBA of 2016 -2020 Batch, Amity
School of Business, Amity University Uttar Pradesh, Noida has worked under the guidance
and supervision of Dr. Ruchi Jain for NTCC Summer Internship.
This report has the requisite standard for the partial fulfillment of the Under Graduate Degree
in Business Administration BBA+MBA (dual degree). To the best of my knowledge no part of
this report has been reproduced from any other report and the contents are based on original
research.
I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the
report.

Signature (Student)
 DECLARATION BY FACULTY SUPERVISOR

This is to certify that Ms. Sanjari Mehta, Enrollment No. A3923016009, a student of BBA +
MBA (Dual Degree) in, 2016 -2020 Batch, Amity School of Business, Amity University Uttar
Pradesh, Noida has worked under my guidance and supervision for the duration of NTCC
Project.
The report being submitted incorporates original work and research and is being submitted as
a partial fulfillment for the Under Graduate Degree in Business Administration (BBA+ MBA
Dual Degree).

Signature:
Name of Faculty Supervisor: Dr. Ruchi Jain
 1. INTRODUCTION

1.1 Introduction about the Summer Internship

The project is based on the services and marketing strategy of the HDFC Bank. Hence, I have
decided to take an exposure of banking sector by taking practical training at HDFC Bank which
is one of the reputed market leading private banks.

The aim of HDFC Bank is customization & people cantered banking. Customized banking
system can be achieved by provided what customer actually wants. So we want to check
whether the Bank is successful or not. As a part of this study I have decided to prepare a project
report on “A Study of the Services and the Marketing Strategy provided by the HDFC Bank”.

 It gives the detail view of the regulatory framework for the HDFC Bank 

 The focus shifts to various products of HDFC Bank to cater to the needs such as client
query, prioritization, client calling etc.

 The next phase is to look up the investment in growth of the client and their account
openin

1.2 Introduction to the Organization

The Housing Development Finance Corporation Limited (HDFC) was one of the first banks to
get approved by RBI for setting up a bank in the pvt. sector, as part of the RBI's liberalization of
the Industry of Indian Banking in 1994. The bank had been incorporated in August’1994 with
the name of 'HDFC Bank Limited', having its registered office in Mumbai, India. The bank
started commencing corporations as a Scheduled Commercial Bank in January 1995. India’s
main housing finance company is said to be the “HDFC Bank”. The bank enjoys a flawless track
record in India and also in the global markets. The bank has always tried to remain the market
leader in mortgages by maintaining a healthy and consistent growth in all of its operations since
its inception. It has an outstanding loan portfolio which tends to cover about a million dwelling
units. HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities. HDFC
was preferably positioned in order to promote a bank in the environment of India. This could
take place with its large experience in the financial markets, unique consumer franchise, large
shareholder base and also a strong market reputation.

HDFC Bank began operations in 1995 with a simple mission to be a “World Class Indian
Bank.” It realized that only a single minded focus on product quality and service
excellence would help us get there. Today, the Bank is proud to say that it is well on its
way towards that goal.

1.3 COMPANY PROFILE

COMPANY HISTORY:
The Housing Development Finance Corporation Limited (HDFC) was one of the first banks to
get approved by RBI for setting up a bank in the pvt. sector, as part of the RBI's liberalization of
the Industry of Indian Banking in 1994. The bank had been incorporated in August’1994 with
the name of 'HDFC Bank Limited', having its registered office in Mumbai, India. The bank
started commencing corporations as a Scheduled Commercial Bank in January 1995.

PROMOTER
HDFC Bank, known to be the main housing finance company in India, enjoys a flawless track
record in India and also in the global markets. The bank has always tried to remain the market
leader in mortgages by maintaining a healthy and consistent growth in all of its operations since
its inception. It has an outstanding loan portfolio which tends to cover about a million dwelling
units. HDFC has developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit facilities. HDFC
was preferably positioned in order to promote a bank in the environment of India. This could
take place with its large experience in the financial markets, unique consumer franchise, large
shareholder base and also a strong market reputation.

BUSINESS FOCUS
Every organization has a mission to be completed, similarly HDFC too had a mission which
was to be a “World-Class” Indian Bank. Building consistent customer franchises across
different businesses was one of its objectives. This objective was built in a view that more and
more customers will prefer HDFC bank as their provider of services for the target retail and
also different segments of wholesale customers. There was also a mindset that fulfilling this
objective would lead to greater profitability. The bank maintains greatest level of professional
integrity, regularity compliance, ethical standards and also the corporate governance.
Four values which form the basis of business philosophy of HDFC Bank are:
 Operational excellence
 Customer focus
 Product leadership
 People

CAPITAL STRUCTURE
The bank has an authorized capital of about 5.5 billion whereas the paid up capital of the bank
is around 420 crores. 19.4% of the bank’s equity is held by the HDFC group, and equity about
17.6% is held by ADS depository, moreover, the foreign institutional investors hold up 28%
of the equity. The bank has 5 lakhs and 70,000 shareholders. The national stock exchange and
the stock exchange in Mumbai has the list of shares provided by the bank. New York Stock
Exchange lists the bank’s ADS shares under ‘HDB’ symbol.

DISTRIBUTION NETWORK
HDFC Bank headquartered is in Mumbai. At present, the bank has an attractive network which
consists of 1229 branches which have been spreaded across 444 cities in India. All of the
distinct branches have been linked to an online real-time basis. Telephone banking is another
technique used by the bank in 120 locations in order to serve its customers. The bank’s plan is
to expand its presence in various industrial and commercial centers where it could be able to
serve a lot of corporate customers. Nevertheless, another reason for expansion in the industrial
areas is to be able to build a strong retail customer base for both loan products and deposits.
As a settlement bank to several stock exchanges, the Bank has branches in the centers where
the NSE/BSE has an active and powerful member base. The Bank provides 2526 ATM
networks around these cities. ALso, ATM network provided by the bank can be used by all
domestic as well as international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and
American Express Credit/Charge cardholders.
 CHAPTER-2 REVIEW OF LITERATURE

Verghese (1983) evaluated the profits and profitability of Indian commercial banks during
the period 1970 to 1979. He measured the profitability of commercial banks in terms of gross
profit, net profit, operating margin,
gross yield on assets, spread and spread ratios. Trends of productivity in
24 terms of average deposits per employee, salaries and wages per unit of deposits and
advances, share of establishment expenses in total current operating expenses and net income
per employee has also been calculated.

Nayan (1985) conducted a study on the performance evaluation of commercial banks and
presented a performance evaluation model on the basis of important quantifiable parameters
of performance. The main findings were that the present system of ranking the banks on the
basis of aggregate deposits failed to reflect their overall achievements.

Chawla (1988) analyzed the development and growth of banking activities after
nationalization especially in the Punjab state during the period 1969- 83. The study found that
nationalization of major commercial banks in 1969 made a highly positive impact on deposit
mobilization, credit deployment and branch expansion in the state. Although inter-district
disparities continue to exist, yet a trend was noticed for reduction in these disparities.

Kaur (1991) studied the profits and profitability of 20 Public Sector Banks during the period
1976 to 1985. The researcher employed trend analysis, ratio analysis and regression analysis
for the study purpose taking 11 variables, which reflected different dimensions of banks’
operations, and hence, affected the banks’ profitability. The study was primarily based on the
secondary data.

U. C. Kulshrestha27 (1985) conducted a survey in the Western Region of Uttar Pradesh to

review the progress and working of the Lead Banks and concluded that the banks which were
assigned the lead role undoubtedly made considerable efforts in their lead districts in
conducting of economic surveys, preparing Credit Plans, branch expansion, deposit
mobilisation and credit deployment to priority sectors.
 CHAPTER 3: INDUSTRY REVIEW

2.1 SWOT ANALYSIS

 Strengths:
• Second largest pvt. Bank in India. (No. of branches: 2201, no. of ATM’s: 7110,
located in no. of cities in India: 1174)
• Serves through telephone banking in more than 800 locations.
• ATM card can be used by all domestic and international users. Hence, mostly
preferred card for online and shopping transactions.
• Customer satisfaction is at a high degree as compared to other pvt. Banks.
• Low attrition rate
• In pvt. Banking sector, HDFC is one of the best places for work.
• The bank has achieved many rewards. It has been recognized as the “ Best Bank”
by several financial rating institutions.
• Great set of financial advisors who guide customers about the right investments.
•
 Weakness:
• No strong coverage in rural areas. On the other hand, ICICI being its direct
competitor, has been expanding in the rural areas.
• Rural people are very loyal in terms of banking services, HDFC does not enjoy
the first mover advantage.
• ICICI does aggressive marketing, where as HDFC fails to make use of such
strategies.
• Focuses mostly on the high-end customers.
• Lack in performance of some bank products.
• Sometimes not able to reach to the market.
• Uncertainty of the investors lead to fluctuation in the share prices of HDFC

 Opportunities:
• Its likely to increase the profitability as the bank has a better parameters of quality
of assets as compared to the govt. banks.
• The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts
• Bad debts portfolio of HDFC bank has been improved with time and also it tries
to recover its bad debts more quickly than the govt. banks.
• There is a large scope for strategic alliances and acquisitions because of having a
strong financial position in the market.
  Threats:
• Due to slight variation in the non-performing assets of the bank, the risk factor
has been increased which might affect the financial health of the bank.
• Increase of non-banking financial companies and new age banks.
• Unable to expand like ICICI Bank
• The government banks are trying to modernize to compete with private banks
RBI has opened up to 74% for foreign banks to invest in Indian market.

2.2 MARRKETING STRATEGY

Segmentation, Targeting & Positioning:

HDFC has segmented the customers on the basis of income group like formulating the structure
of Classic, preferred and imperial and also using customer financial needs to segment the
market like those of in need of general banking services (Retail & corporate banking) and those
customers who are HNI’s and are in need on investment advisory services.

Bank has the majority of its customer base who are tech-savvy, Young and are more inclined
to products coupled with technology. Product & services offered by the company are targeted
to salaried class, entrepreneurs, and High net worth Individuals (HNI’s).

Bank has positioned itself as a preferred provider of financial services by incorporating

technological advancement in its core businesses.

Marketing Mix:

 Product:
HDFC Bank is one of the leading banks in India. HDFC offers a wide range of products
in its marketing mix strategy, namely in personal and enterprise sector. The various
services offered by HDFC Bank are summarized as follows. Accounts and deposits
which covers savings accounts, salary accounts, current accounts, deposits, safe deposit
lockers, rural accounts and pension accounts. HDFC Bank offers loans to meet the
diverse needs and it cover personal loans, car loans, business loans etc. HDFC offers
cards which includes credit cards, debit cards, prepaid cards, credit card reward
programs and loan on credit card. Demat options for investors which includes demat
account, 2 in 1 account, 3 in 1 account and investment assist. Investment options
covering Invest Track, investment products, investment advisory group reports, PPF
(public provident fund) and sukanya samriddhi account are provided to HDFC
customers. Insurances for various options like life, health, motor insurance, travel,
home, two wheeler and student travel-suraksha. Forex includes travel solutions,
remittance products, other forex services for help and purchase. HDFC Bank also
includes online payment options like Pay bills and shop online, Fund transfer options,
bill payments, tax payment, donate online etc. The premier options include Direct
equity, Mutual funds, Fixed income products, Insurance, Private equity funds,
Structured products and Estate planning.

 Price:
HDFC Bank follows a competitive pricing strategy in its marketing mix but maintains
a premium level at the same time. It is clearly visible that it enjoys maximum market
capital in terms of shares in India. The other domestic competitors are either PSUs or
national bank, HDFC Bank is always priced higher in terms of minimum cap required
to open a new account. RBI controls and regulates the pricing policies, like for any other
bank in India.

 Promotion:
HDFC Bank focuses a lot on the promotional strategy in its marketing mix. HDFC is
involved in large number of CSR activities for sustainable livelihood, financial literacy,
education, training and community initiatives. HDFC has always made its presence feel
in the media through advertisements, hoardings, posters, ads in newspapers, magazines,
promotional events, sponsorships, etc. HDFC also has shareholdings in corporate
bodies, mutual funds, financial institutions, etc. which creates a sense of value and trust
amongst the shareholders and customers towards this particular brand.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of HDFC Bank:

 People:
HDFC Bank gives strong importance on its people i.e. customers and employees.
Through its multi demographic culture it is clearly visible that HDFC believes in
diversity and inclusion. In India it has spread its offices geographically in every state,
to spread awareness to the maximum number of people. With the help of this advanced
technology, HDFC bank employees will be highly satisfied and they will always get
competitive edge over others.

 Physical Evidence:
HDFC provides best in house facilities with up to date infrastructure and global
environment in all its offices. The complete setup helps the employees to experience
the best work environment so that they perform as per the organization’s expectations.
 HDFC offices, branches, credit cards, website etc are all the physical evidence of the
brand.

 Process:
HDFC bank has several business processes like all other financial institutions. Through
the various social activities and best practices HDFC maintains a good relation with its
customers and investors, which in turn avoids a bad ‘word of mouth’. All these helps
the organization to grow in long term and motivates its employees to continue being
loyal to it and give their best throughout their tenure. The customers are also
successfully retained and new ones are attracted.

2.2 Business

Services offered by the company:

Personal Banking
• Accounts & Deposits
• Loans
• Cards
• Forex
• Investments & Insurance

NRI Banking
Accounts & Deposits
Remittances
Investments & Insurance Loans Payment Services

Wholesale Banking
Corporate
Small & Medium Enterprises
Financial Institutions & Trusts
Government Sector

HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments. Wholesale Banking Services The Bank's target market
ranges from large, blue- chip manufacturing companies in the Indian corporate
to small & mid-sized corporates and agri-based businesses. For these customers,
the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services,
cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate
customers. Based on its superior product delivery / service levels and strong
customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector
companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks. Retail Banking Services The objective of the
Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all
his/her banking requirements.

The products are backed by world- class service and delivered to customers
through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The
HDFC Bank Preferred program for high net worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers.

wqIt is also a leading provider of Depository Participant (DP) services for retail
customers, providing customers the facility to hold their investments in
electronic form. HDFC Bank was the first bank in India to launch an International
Debit Card in association with VISA (VISA Electron) and issues the Mastercard
Maestro debit card as well. The Bank launched its credit card business in late
2001. By March 2010, the bank had a total card base (debit and credit cards) of
over 14 million. The Bank is also one of the leading players in the “merchant
acquiring” business with over 90,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned
as a leader in various net based B2C opportunities including a wide range of
internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

3 RESEARCH METHODOLOGY
DATA COLLECTION
PRIMARY DATA
Primary data is the data which is collected by the researcher directly from his own observations
and experiences. Primary data can be collected either through experiment or through survey.
I have surveyed 50 customers and took their responses towards the customer satisfaction of the
HDFC bank and got to know their views towards products and services offered by them I have
used questionnaire in my report

SECONDARY DATA:

Secondary data are those data, which are already published. It may be useful for many other
people than the researcher who has published it. There are various sources of secondary data
collection. There are various sources of secondary data like research papers, periodicals,
encyclopedias, published researches, database companies etc. relations, prices etc.

Gathered information from different presentations and a software called KLAPP i.e. used by
the bank staff. I gathered the information from google and different sites like google, Wikipedia
etc.

SAMPLE SIZE

Survey done of 50 customers using questionnaire

RESEARCH DESIGN

Explanatory research is defined as an attempt to connect ideas to understand cause and

effect, meaning researchers want to explain what is going on. I have done exploratory
research in my project so as to understand the consumer behaviour.

SAMPLE DESIGN
The sampling design adopted for this study is probability proportional to size as it has
following advantages:
o It reduces the heavily expected non response of many smaller operators.
o It provides a simple sample selection rule that allows flexibility in using most up-to-date
data from a variety of sources, thus minimizing the sample size. The study involved finding
the responses of the customers of HDFC Bank in the Delhi/ NCR region specifically. For
that we administered the questionnaire to the customers of the bank.
 Data collection and analysis

All the analysis and findings of the project is based on the data which has been collected from
the survey of the market. The analysis of data is shown in pie charts and bar graphs. Analysis
of work is generally based on computation of various percentages.
 DATA ANALYSIS

Figure 1

Inference:

This shows that 56% of the respondents were between the age of 19-24.
20%% of them were between 25-36, and 24%% of them were above 37.
 Figure 2

Inference:
This is necessary to know that 48% of customers were students,
22% of them were in the service sector and 20% are doing
business. This means that customers with max mum responses are
the youth. This enhances the strategy of the bank in targeting the
youth.

Figure 3

Inference:
Large number of people having an account in HDFC Bank have adequate family income
(annually).
 Figure 4

Inference:
The study of 50 HDFC Bank respondents consisted of a majority of
customers who had been with the Bank for a reasonable amount of
time. This is good as these customers have had the opportunity to
properly access the service level of the Bank, and can compare their
experiences of HDFC Bank with banks they have previously and are
currently dealing with. Out of the total respondents 34%% have
been with the Bank for more than 2 years which shows that most
of the people are loyal to the bank. the rest 66%% have had the
opportunity to know about the strengths and weaknesses of the
Bank. This means now 18%% of the people, who have been with
the bank for less than 6 months, are being aware of the bank.
 Figure 5

Inference
If the Bank could get to know of that very compelling factor that
convinced the customer to open an account, then the Bank could
use this in its favor to attract more customers.36.7% of the
customers were attracted due to the brand name which is the
positive strategy of the bank and also recommended by family
because of the services prevailed to them.
1( ) very poor
2( ) poor
3( ) good
4( ) very good
5( ) excellent
Inference
This is really important as bank will get to know how are
they are feeding the customers. And wanted to know how
customers feel about the services. 36% of the customers
felt that the services are good, 42% felt that they are
very good and 18% felt that it is excellent. So, overall
the bank can get the idea that the services provided by
them are good.
Figure 6
Inference
This shows the perception about different products that bank offers
68% of the customers felt that products and services that are offered by
the bank are good. This means bank offers good services to keep their
customers happy.

Inference
36% of the customers want that bank should lower the minimum balance
in savings a/c and 24% of the customers want the account opening time to
be less and also want the company to perform demand survey at regular
intervals.
1() Very dissatisfied

2( ) Somewhat Dissatisfied

3() Neither satisfied or dissatisfied

4( ) Somewhat Satisfied

5() Very Satisfied

Inference

Banks should train their employees to maintain good relations and be cooperative with
the customers. From the results of the findings we can see that Kotak Mahindra Bank
has been successful in marinating a high level of customer satisfaction with the
employees. Only 4% of the total respondents included in the study were
dissatisfied. The number of respondents who were Very Satisfied represented
12%% of the total respondents while those who were Somewhat Satisfied were
21% of the total. The respondents who were Neither Satisfied nor Dissatisfied are
19% of the tota
Inference: According to this group of respondents the Range of
Products that are offered by Private sector Banks are much more
diverse than those offered by Government Banks. Also these
respondents felt that the Banks in the Private sector were much more
flexible than their Government counterparts when dealing with
customers were concerned. People consider the service level of
Private Banks much higher than Government Banks as 58% of
the respondents agree and only 3a few of the respondents
disagree.

Inference
With this the bank can get to know whether the customers will continue with the
services provided by the bank. This will be an important response as bank can get to
know their marketing strategy and can improve if needed. 87.5% of the respondents
agree that they will continue the service and only 12.5% of them disagree.
 Chapter 6- Conclusions, Recommendations and Limitations

6.1 CONCLUSION
HDFC Bank is one of the most Leading Bank in the country with its good
brand name, it provides a variety of products and services to different types of
customers. Customers who are more profitable to the Bank (High Value
Customers) are provided special facilities.
• It has been concluded that 87.5% of the customers have liked the services
offered by the bank are privileged using it. This has become advantage for
the bank in enhancing its services.
• Private banks serve more products than the government banks
• HDFC serve courageous staff as its banking staff is good.
• HDFC has good brand name and reputation.

6.2 Recommendations

• More services should be given to the old people.

• More banking hours should be ignited for customers.
• They can enhance the percent rate on different cards issued.
• Should advertise more in order to enhance more brand name.
• The can minimise the time for opening bank account.

6.3 SCOPE OF THE STUDY

• This study helps in finding out the satisfaction of most important resource that is
human resource related to HDFC Bank.
• This also helps in finding the effectiveness of human resource policies in
organization.
• The study provides knowledge of various products & investment services of HDFC
Bank.
• The study helps to learn of work culture of organization.

6.4 Limitations

• Time constraint.
• Biases and non-cooperation of the respondents.
• Geographical selectivity in study limiting to Gurgaon branch only.
• People were not interested in giving personal opinion.
• Employees were not easily sharing information.
Bibliography

 https://www.mbaskool.com/marketing-mix/services/17052-hdfc-bank.html
 https://www.scribd.com/doc/50124944/A-Project-Report-on-Custmer-
Satisfaction-Regarding-HDFC-BANK
 https://www.google.com/search?q=hdfc+bank&client=safari&channel=mac_bm
&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjSutLb7qvcAhUHtY8KHZ-
6AMAQ_AUIDCgD&biw=1199&bih=742#imgrc=AxiNCKnlWBh-7M
 https://en.wikipedia.org/wiki/HDFC_Bank
 https://www.marketing91.com/marketing-strategy-of-hdfc-bank/

Notes and Journals

 Kotak Mahindra Bank Policy Guidelines

 Bank Circulars

 Articles on MSME Banking by Ministry of Finance, Govt. of India