Sumit Agarwal (12-03-2020)

SUMMER INTERNSHIP
PROPOSAL
Submitted to: Submitted By:

Prof. R. Venkataraman Sumit Agarwal
19BSP2940
Contact-7017283070
SIP PROPOSAL
1. SIP PROPOSED: A STUDY ON – “Opportunities and challenges of digitization

in SME (small medium enterprises) business in Delhi NCR”.
2. DESCRIPTION OF SIP:
HDFC BANK INTRODUCING DIGITIZATION FOR SME BUSINESSES.

HDFC Bank is turning aggressive in the SME space that’s crying for funds with state-
run banks deserting them due to mounting bad loans. The private sector lender has
launched an SME bank which will provide full-fledged digital banking service to
small and medium sector enterprises.
SMEs will now be able to avail banking facilities such as forward currency outward
remittances, import bill under collection, besides viewing credit lines with the bank
and outstanding amount. Businesses will also be able to upload stock statements,
insurance financials online without the hassle of visiting a branch. The bank, which
holds 7% of the total SME lending market share, is expecting it to grow at 30% every
year. HDFC Bank currently works with over 100 thousand SMEs, and plans to
convert 60% of their total transactions digital in the next one year. On an average, a
single SME uses 200-300 cheque leaves every month, as per the bank.
There are over 3.6 crore SMEs in the country which contribute over 8% to India’s
GDP. The SME sector which employs over 8 crore people contributes 45% to India’s
manufacturing output and 40% to the country’s exports, data from SME Chamber of
India showed. Despite this, many SMEs still remain unbanked. “The challenge
remains that how we make aware a client that such a proposition exists. But we have
significantly cut the need for an SME to walk into a bank branch with a business
proposal
THE PURPOSE OF THIS SUMMER INTERNSHIP PROGRAM
 This summer internship program is all about gaining the knowledge of the department
EEG (emerging enterprises group) in which currently I’m being assigned to do a
project.
 EEG in HDFC BANK LTD deals with the SME and provide the various working
capital facilities to the SME customers.
 Working Capital facilities includes (Cash Credit, Overdraft against Property, Export
Packing Credit, Term Loans, LC Bill Discounting, Bank Guarantee).
 Few basic criteria of these working facilities are: -
1. The annual turnover of a business should be minimum 60 lakh and above.
2. Net worth of the company or firm should be good.
3. Banking history of the firm should be good.
 So, during this summer internship I am working as a project trainee under EEG at
HDFC Bank, Zonal office, Sector 53 Gurgaon. The company guide assigned to me is
Mr. Arvind Bhardwaj who is territory head of the EEG department and my faculty
guide is Prof. R. Venkataraman. Under the guidance of Mr. Arvind Bhardwaj, I’m
doing a project “Opportunities and challenges of digitization in SME (small medium
enterprises) business in Delhi NCR”
 HDFC Bank is the first bank in India to introduce the digitization in working capital
for SME which will help the customer to avail the working capital facility in very less
time. The whole process will become time efficient and customer friendly with the
help of digitization.
 Currently the process for providing the working capital facility takes around 6-7 days
for approval from the department as it requires lot of paper work. To make the process
shorter the bank turns toward digitization in which the clients provide only few
documents i.e. (balance sheet, sales data, client profile or KYC etc.) and the credit
department directly take the decision within 3 hours that whether they can provide the
working capital or not.
 This will be the fastest process in India to provide the working capital facility in 3
hours. So, during this internship I am working with the bank and gaining the
knowledge about this process of digitization and analyzing the various opportunities
and challenges which are being faced by the ground teams of the bank with the help
of data provided by the bank.
3. OBJECTIVE:
1. To know about HDFC bank.

2. To develop an understanding of the lending policy of the EEG Unit of HDFC
Bank.
3. To know various types of working capital facilities provided by bank.
4. To understand the various factors considered in analysing the financial needs
of the clients of the bank.
5. To determine what are the opportunities of digitization in SME business.
6. To analyse the challenges faced by the ground teams in the process of
digitization in Delhi NCR.
4. METHODOLOGY:
For the execution of project. I will be going through the data which will be provided by
the company.
PRIMARY DATA:
1. Personal discussion with zonal head and territory head of the Emerging
Enterprises Group.
2. Personal interviews with different relationship managers by visiting different
branch.
SECONDARY DATA:
1. Different files and documents provided by the bank.
5. SCHEDULE: The schedule goes like: -
 Week 1-2 – Study the basic of banking and various terms used in banking.
 Week 3-4 – Understanding the different services provided by the banks and
the eligibility criteria for the same.
 Week 5-6 - Understanding the process involved in providing the different
working capital facilities to the SME Customers.
 Week 7-8 – Understanding the working of different department of the bank.
 Week 8 – Preparing a Questionnaire which will be used during EEG meeting
with RM.
 Week 9-11 - Visiting the different branch and meeting the different
relationship managers of EEG who are sourcing SME business in Delhi NCR.
 Week 12 – Collecting the data through the sources.
 Week 13-14 – Analyzing the data and make the findings and conclusion.
The above schedule is subject to change on company decisions.
6. LIMITATION:
1. The data collected mainly depends on secondary sources.

2. Time constraint is also one of the limitations in assessing all data.
3. As per the company’s policy some data are confidential to company so little
modification in data for project purpose is used.
4. Data from different sources may be inconsistent which may create problem in
making the report.
Faculty guide – Prof. R. Venkataraman

Company Guide – Mr. Arvind Bhardwaj
Date: 12-03-2020

Sumit Agarwal (12-03-2020)

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SUMMER INTERNSHIP

Submitted to: Submitted By:

1. SIP PROPOSED: A STUDY ON – “Opportunities and challenges of digitization

HDFC BANK INTRODUCING DIGITIZATION FOR SME BUSINESSES.

1. To know about HDFC bank.

The above schedule is subject to change on company decisions.

1. The data collected mainly depends on secondary sources.

Faculty guide – Prof. R. Venkataraman

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