UNIVERSAL BANKING HDFC

Abstract:

Advanced displaying are moving in India at a smart pace. Different Indian affiliations are
utilizing advanced showing for advantage. The accomplishment of showing effort cannot be
exclusively polished via mechanized progressing in a manner of speaking. Or then again
potentially for the achievement of any showing effort, it ought to absolutely bridle the
constraints of different publicizing techniques accessible inside both the standard and current
progressing. New associations who utilize modernized showing customarily got fizzled. This
assessment shows shields to be taken for sensible execution of bleeding-edge rising to tie
down giant potential to increment in deals.
 CHAPTER I
INTRODUCTION

Universal banking is a system in which banks provide a wide variety of comprehensive

financial services, including those tailored to retail, commercial, and investment services.
Universal banking is common in some European countries, including Switzerland.

Under this type of banking a bank will deal with working capital requirement as well as term
loans for development activities. They will be dealing with individual customer as well as big
corporate customers. They will have expanded lines of business activities combining the
functions of traditional deposit taking, modern financial services, selling long -term saving
products, insurance cover, investment banking etc.

Banking is an industry that handles cash, credit, and other financial transactions. Banks
provide a Safe place to Store extra cash and credit. They offer savings accounts, Certificates
of Deposit, and checking accounts. Banks use these deposits to make loans. These loans
include home mortgages, business loans, and car loans.

A Bank is a financial institution licensed to receive deposits and make loans. Two of the most
common types of banks are commercial/retail and investment banks. Depending on type, a
bank may also provide various financial services ranging from providing safe deposit boxes
and currency exchange to retirement and wealth management.
Objective of Study
The title of the task is Thing Penetration and Digitalization & Under this, I need to do a
market audit and investigating bank things utilized by existing and potential customers in the
creator and seller segment.

Following are the rule objectives of our assessment

 Collect subtleties by techniques for the review of creators, delegates, and merchants in our
catchment area.

 Competition appraisal Market Share and proposition to get more market.

 Analysis of working capital and it is use in the banking industry.

 Credit cards utilize models and proposals for broadening their market share.

 Lead Generation for working capital POS machines.

 Create care about chiller and Payzapp

Problem Definition
Coming up next are some critical terms in the task which should be comprehended before
portraying about the evaluation.

 Manufacturer and Trader.

The catchment zone is arranged 8, phase 9, phase 10 current region. The business might be in
sole property IP or connection. There are around 100+ makers and merchants in blending
these parts.
 Market Survey
The market overview was produced for the sellers through a genuine conversation with them.
The truth was on an amazingly basic level to find who is there with the bank, who is not,
what are the standard reasons of them using evident cash related deferred result of either
HDFC bank or whatever other banks, what are their satisfaction level with the chief bank on
different parameters so the potential clients can be secured through the parameter with which
they Do not feel flawless with a key bank.
 Competitors
The contender’s assessment of different parameters was finished by the audit of their
customers. In the event that we talk about Mohali present day locale, by, at that point, it is
one of the most settled and most unmistakable mechanical spots of Mohali having stores of
dispute in banking being the basic center feature.

Need for the Study

The appraisal would attempt to hurl a couple of bits of information into the present
affiliations gave by the banks, insistences and the genuine help nature of the bank. The results
of the evaluation would have the decision to see the lacunae in the structure and thusly give
key zones where improvement is required for better execution and accomplishment degree.
In the extended lengths of amazing competition, certain help is the significant differentiator
left before the banks pull in, hold and help out the customers. Better assistance quality
engages a firm than kept itself from it is restriction, increment a possible high ground, and
improve adequacy.

RESEARCH METHODOLOGY

Research Design
As the assessment is for business parts survey of aftereffects of HDFC Bank so our
evaluation arrangement is exploratory. At the present time having a couple of data about the
creator and vendors as they use currently a/c, POS, limits, etc. Regardless, there is still
nonappearance of satisfaction as for various factors, so this assessment will find what are
they and in what limit can
be they continue on.

Sample Size
The catchment zone is orchestrated 8 stages 9 stages 10 mechanical regions. The business
might be in sole property IP or affiliation. There are around 100+ maker and merchants in
joining these regions, in any case by virtue of different destinations the model size got
constrained to 97 allegorically.

Sampling technique
There was a destined case of stage 8, plan 9, and mastermind 10 mechanical zone. So from a
general viewpoint, I guaranteed about the whole market of these two divisions, yet the model
found a superior to normal pace 97 considering the unavailability of information.

Data Collection
There was a sensible filtered through party framework reliant on an investigation (in
annexure) by visiting shop-to-shop. The examination was set up by guides help and with
unequivocal references, done earlier. So all the data assembled is basic data. This information
was given either by shippers themselves or by the individual who manages the shops record
and budgetary Articleivities.
Data Analysis
The data assessment has been done in basically two phases.

Illustrative Analysis-In this in a general sense the grungy data has been bankrupt down which
was expanded subject to contemplates. It just hives a few outlines. Tables and diagrams and
their clear interpretation.

Limitations

HDFC Bank offers an amazing level of working capital workplaces at the gateway step. It
offers moderate, obliging cash related systems that are of focal imperativeness in running a
capable endeavor.

CHAPTER II
REVIEW OF LITERATURE

Appraisal of customer lead is an essential obligation to sort out driving structures. Customer
direct controls in show division, one of the noteworthy gadgets in bank publicizing. The
prompt bits of a bank customer is given less hugeness in the cash related assessment of bank
things. It cannot be ousted that the customer makes the excitement for things and any change
in these necessities would influence the intrigue moreover. Customers have different
penchants and a purchase decision is influenced coming about to considering the level of
affiliations offered by the banks. These blends may be related to the psychological
complexities among individuals on perspectives, for instance, way, focuses, social class
needs, culture, etc. This can be thought shockingly with the help of quantifiable considering
bases on customer lead and their affinity plans.

Customer lead is influenced by three systems of sections, viz., outside parts, inside portions,
and the client methodology. Culture, occupation, social class, and geographic zone are factors
that remotely impact customers. Culture is a mix of feelings, points of view, and systems for
completing things by the reasonably homogenous blueprint of people. 23 Culture explains
how and why people carry on as they do and furthermore transcends to their buying conduct.
Course, youth, requesting notions, and living conditions are the parts that would deal with
everything the lifestyle of a person. Foundation of private banks in India can be, as it were,
credited to the necessities of express social or open gatherings. Without a doubt, even now a
couple of banks bear just on this bit of customer lead, regardless, beginning late they have
gotten a handle on the need augmenting plainly. Breaking the objectives of their little
segments. In the United Kingdom, at any rate, two or three hundred little bank workplaces
exist. Just to oblige the necessities of various ethnic social affairs & quot ; This perspective
fills in as a key factor in the abroad market progress of Banks.

A key disconnecting estimation in banking is the social class to which a customer has a spot.
It impacts the usage model and viewpoint to the crediting instruments and stores. People
having instigated direction and budgetary status have a more perfect manner towards credit
things than others. They will when everything is said in done utilize things like charge cards
altogether more as typically as could reasonably be ordinary. ‘Attitude to saving in like way
shows plans across different social classes. People having a spot with lower strata of the
general masses will when everything is said in done see experience records or bank stores as
a conspicuous security shield. This may be an eventual outcome of the way that plan gets
ready people to consider various decisions and in this manner update their purchase
decisions. In any case. Every so often direct characteristics may obscuration such effects.

Customer Satisfaction
Customer dedication is consistently changing into a corporate objective as a normally
extending number of affiliations attempt quality in their thing and services(Bitner and
Hubbert, 1994,98). There is an over the top conflict in the market to get the clients. From this
time forward the general pioneers cannot think of battle in the market, just with the value
factor alone. They understood that the purchasers steadfastness is the most important factor to
change into thebusiness chief. The constraint of the firm to stay in the business is basic to
influence the clientsconflict since the client is the establishment of the business. For instance
The retailer Tesco concentrating on the client, oversaw itself to fabricate it is bit of the
general business and effectiveness by changing into the market manager in the altogether
certifiable and cost-quick market place(Cook, 2002, p. 4). Today the clients were logically
educated and particularly taught. They wont be included from their hankering. They have a
wide degree of choice to pick the thing and associations. To accomplish the total fulfillment
from a thing and associations the client makes dynamic appraisal between various things and
associations. The clients hankering rises a little bit at a time when they start to utilize a
common association. Hence the association experience issues to keep up the raised level of
client commitment dependably. The certifiable market power the firm to raise it is purchaser
immovability dependably.

Client faithfulness is the degree of how the necessities and reactions are teamed up and given
to outperform wants client needs. It must be drilled if the client has a general decent
relationship with the provider. In the present real business center, client devotion is an
imperative showcase model and a significant differentiator of business frameworks.
Henceforth, the more is client relentlessness; more is the business and the holding with a
client. Customer reliability is a touchof a clients experience that uncovered a providers
immediate on the clients yearning. It additionally relies on how suitably it is coordinated and
how quickly benefits are given. This fulfillment could be identified with different business
focuses like publicizing, thing producing, building, nature of things and associations,
reactions clients issues and questions, finishing of the undertaking, post-development
associations, battle the board, and so on. Buyer loyalty is the general center of the impression
of the provider by the clients. This impression which a client makes concerning provider is
the aggregate of the entire framework he experiences, honestly from giving provider before
doing any raising to post development choices and advantages and managing solicitations or
battles post transport. During this framework the client goes over workplace of different
divisions and the sort of approach associated with the connection. This desires the client to
make a solid conclusion about the provider which at long last outcomes in fulfillment or
frustration. The clients observation on the provider engages the client to pick among the
provider on the reason for cash respect and how well the passed on things suit all the
necessities. The providers associations never decrease after the development as client scans
for high qualities post displaying associations that could assist them with utilizing and re-
attempt the passed on thing even more proficiently. In the event that he is content with the
post advancing associations, by then there are commendable open doors for a provider to
hold the clients to improve repeated buys and make mind-boggling business benefits.

In the present money related condition clearly banks increase high ground by rendering fit
help and right now client relationship. More accentuation on making faithful clients is the
need imperative. It is essential for all players in the money related help industry to understand
then necessities of the client and modify associations dependent on their requirements. This
right now clears a path for accomplishing client endurance to a more noteworthy degree. The
estimation of the equivalent is a basic factor in banking part. Right now, (Communication and
Technology) period, the system for direct compensation, online money related associations
have gotten respect.
Legitimately a day, clients need adaptable broadened lengths of Articleivity, customization,
and straightforwardness. Considering expanded market rivalry, clients surrender rates are
higher. Thusly, examine association quality and fulfillment of clients in the banking part is
viewed as enormous.
As of now, the specialists have concentrated on association quality and customer
commitment making that has been getting fundamental ideas over the range of the most
recent couple of years. This examination paper is depicted in two spread unequivocally
Quality of Service and fulfillment of clients in banks across different nations.

Consumer Perception
Grouped social classes exist and target hoisting would empower banks to tap the potential in
such fragments Income need not be the most determinant factor in the division. Mental
separations, taking everything into account, stay unexplored in the Indian markets. In the
budgetary things displaying, the evaluation of reference groups has a wide impact on the
client& decisions. A client is more

Committed to sharing the mentality of their reference gathering. In the event that data got by
a client repudiates with what the reference packs have faith in, the client will in like way
make a horrible attitude towards the thing. Propelling individuals can perceive fitting
reference social affairs to develop incredible picture and end. This is particularly significant
in elevating to retail areas which from time to time search for dependable wellsprings of data.
The over-reliance of clients on a picture in the associations business can be best clarified by
the issue of authenticity of data sources and the impalpable idea of the association. Due to
banks, it takes a gander at have shown that client decision is, figuratively speaking, picked by
the assessment of accomplices, guards and family members.

The family anticipate a basic movement in the decision of a bank. Youngsters will all things
considered pick the banks of their kin. Martineau (1958) composed an evaluation among
understudies opening record uncommon for their life and found that parental impact arranged
second to location_ of banks; in their decision of the bank.

A thing needs correspondingly fluctuate across various life cycle times of a family
Rajashekar and Paul (1999) have discovered the general importance of the decision criteria
across life cycle territories. 3 Individuals in the single man sort out (vigorous. single
individuals not living at home) underscore the significance of such criteria as Proximity to
home Everything thought about the nature of association. Notoriety&#39 straightforwardness
of meeting all essentials futile money related records by keeping up base equity, and quick
help and having the choice to get every single budgetary assistance at one area For starting
late wedded couples (with kids under 6 years—named as a full home I), properties, for
example, domain, notoriety, accessibility of home development propels, low development
costs on credits and sufficient money related advice were seen as the tremendous decision
criteria. For progressively arranged couples, an area, amazing money related intrigue,
experienced work influence, flourishing of advantages, paying most raised rates on
hypothesis resources and everything considered nature of associations were basic. The
evaluation uncovered a captivating attitudinal model among individuals from various life
cycle stages. Those in the lone official orchestrate are objective arranged as they will
probably twofold their cash later on and they emanate an impression of being less committed
to their budgetary foundations as it has no effect on them whether they manage a nearby bank
or another bank. By then, individuals from full home I and II stages need to give cash
required by their kids to take off to class, put resources into a protected road with
unsurprising returns and offering comfort and are deal coordinated. More arranged
individuals are more worth composed than void home 1 accessories. The divulgences
unmistakably recommend that specialists have an opportunity in focusing on the distinctive
social events with legitimate market blend factors especially concerning things, regarding and
locale framework.

Mental Influences-Aspects, for example, inspirations. Perceptions. Attitudes and emotions

are mental impacts. The impacts of these portions may not be clearly articulated in light of
decision rehearses. In any case, it might influence the clients commitment deregulation and
association quality needs to express client parts.

The Consume Process and Loyalty-Consumer buy choices are made thoughtlessly, at any
rate, certain extraordinary points may influence the decision of cash related foundations when
everything is said in done. The decision to express financial things may fuse an amazing

procedure including various stages, for example, getting mindful of the need, and checking
for choices, an examination of the choices, the decision of a thing and post-purchase
assessment. At each stage, their data needs may in like way change. Understanding the data
needs of clients at these various stages is in this manner fundamental for arranging showing
exchanges. In any case it has been seen that clients do not routinely scan for the better
subtleties of plans and associations through observe. Most of the data required are
disregarded the counter by bank staff. Counter staff ought to have unprecedented thing
information and social abilities to acknowledge this commitment. The post buy sort out is
likewise colossal as in a bank staff ought to have the decision to offer certification to the
clients about the focal points and brace their buy choice in order to guarantee the duty of the
client.

Banks in India everything considered recognizing unprecedented assistance by clients.

Despite the presence of different new plans, bank stores regardless of everything reign
amazing quality in the family unit spare stores. This obviously outlines the unquestionable
nature of banks among ordinary occupants. Uncommonly, things like National Savings
Certif1cates(NSC), Unit Trust of India schemes(UTI, and so on, in any case, pass on logically
important yields, have not been otherwise called bank stores. Several banks are pat. - cited by
clients independent of the association quality levels they keep up. These are a few
perspectives that make one test into the reasons for client devotion in the banking industry.
From the point of view of monetary authorities guaranteeing clients, commitment is basic for
going with reasons.
Client turnover is over the top to banks as dealing with is tedious and work concentrated,
which, thusly, impacts their profitability moreover.

Existing clients may help in intentionally contributing a banks things and doing easygoing
publicizing to potential clients. Fry (1973) guided an assessment among school graduates to
see
banks destroyed by them at chose periods previously.
During. Similarly, after their time at the school. Also, questions relating to Respondents
locale, advance status, gatekeepers money related strategy, and so on were combined. The
evaluation made some critical terminations, for example, on the off chance that an individual
is non-versatile (remains in a solitary perceive) the branch thought has an influence on
perseverance.

Earlier assistance improves the probability of responsibility in the future. Understudies will
generally speak put down a similar bank as their kin.

IDV: Consumer Perception.

DV: Customer Satisfaction.
THEORITICAL REVIEW

Universal Banking : Meaning / Introduction Advantages and

Disadvantages
Meaning

Universal banking is a system in which banks provide a wide variety of comprehensive

financial services, including those tailored to retail, commercial, and investment services.
Universal banking is common in some European countries, including Switzerland.

Under this type of banking a bank will deal with working capital requirement as well as term
loans for development activities. They will be dealing with individual customer as well as big
corporate customers. They will have expanded lines of business activities combining the
functions of traditional deposit taking, modern financial services ,selling long -term saving
products, insurance cover , investment banking etc.

Advantages of Universal Banking

 Economics of scale: Universal banking results in greater economic efficiency in the

form of low cost, higher output and better products. In India, RBI is in favour of universal
banking because it results in economics of scale.

 Profitable Diversions: The banks can utilize its existing skill in single type of
financial services in offering other kinds by diversifying the activities. Therefore, it
involves lower cost in performing all types of financial functions by one unit instead of
other institution.

 Resources Utilization: A bank possesses all types of information about the existing
customers which can be utilized to perform other financial activities with the same
customer.

 Easy Marketing : A bank with established brand name can easily use its existing
branches and staff to sell the other financial products like insurance policies, mutual fund
plans without spending much effort on marketing.

 One-stop Shopping: One-stop shopping is beneficial for the bank and its customers as
it saves lot of transaction costs by increasing the speed of economic activities.
 Under one roof: Universal banking offers all financial products and services under
one roof. It saves transaction cost and time. It also increases the speed of work. Hence it
is beneficial to bank as well as customer.

 Investors trust: Universal banks hold equity shares of many companies .These

companies can easily get investors from public to invest in their business . This is due to
other investor have full confidence and faith in the universal banks.

Disadvantages of Universal Banking

 No Expertise in Long Term Lending: These are different types of long term loans
like project finance and infrastructure finance, having long gestation projects can not
properly handle by the single bank.

 Non-Performing Assets problem: One of the most serious problems faced by

universal banking is Non-performing Assets.

 Risk of Failure: The larger the banks, the greater the effects of their failure on the
system. The failure of a larger institution could have serious for the entire banking
system. If one universal bank were to collapse, it could lead to a systemic financial crisis.

 Concentration of Monopoly Power in the Hands of Few Banker: Universal

banking sometimes creates monopoly power in the hands of few large bankers. Such a
monopoly power in the hands of a few big bankers is a source of danger to the
community whose goal is a socialistic pattern of society.

 Bureaucratic and Inflexible: Universal banks tend to be bureaucratic and inflexible.

They tend to work primarily with large established customers and ignore or discourage
smaller and newly established businesses.

 Different Rules and regulations: In offers all financial product and services under
one roof. However ,all these products and services have to follow different rules and
regulation of RBI, SEBI, IRDA. This creates many problems because same bank has to
follow different rules and regulation for different products.
 Conflict of interest: Combining commercial and investment banking can result in
conflict of interest .some banks may give more importance to one types of banking and
less importance to another one.

What is factoring?definition,types & procedure.

Factoring is a financing arrangement that is typically used by small and medium-sized

businesses to help them maintain a steady cash flow. As every business owner understands,
cash flow is important to ensure the successful, continuous operation of their business. This is
why it’s important to know the different types of factoring.

In general, factoring means a company is turning over their invoices to a third party in return
for receiving a portion of those invoices in cash within a few business days. Primarily, there
are two types of factoring, recourse factoring and non-recourse factoring.

Types of Factoring

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Principles of Commercial Bank

Commercial banks follow certain principles to serve the maintain some principles which are
very important for banks to remain in the competition in modem days.

The bank which deals with money and money worth to earn prom is known as the commercial
bank.

Commercial banks must maintain some principles which are very important for banks to
remain in the competition in modem days.

9 principles that commercial banks follow;

 Principle of Liquidity
 Principle of Solvency

 Principle of Profitability

 Principle of Loan and Investment

 Principle of Saving

 Principle of services

 Principle of Secrecy

 Principle of Efficiency

 Principle of Location

Principle of Liquidity

A commercial bank offers two types of deposits

  Demand deposit which the bank has to repay on demand like a Savings Account and

 Time deposits which the bank has to repay after the expiry of a certain period

Further, on a daily basis, customers withdraw as well as deposit cash. therefore, all
commercial banks have to keep a certain amount of cash in their custody to meet the cash
Deposit of customers.

Liquidity means the ability of an asset to convert into cash within the short period.Paying the
deposited money on demand of Customer is called liquidity in case of banking business.

Principle of Solvency

Solvency means the financial capability or stability or Sufficient in capital of the bank.

To stay in these competitive market commercial banks must have sufficient capital. If the
funds are not sufficient the bank cannot run his business.

The main source of funds of the commercial bank is the deposited money by the depositors
through the different types of accounts.

Depositors keep cash in the bank, especially for safety. So commercial banks must ensure the
safety of deposited funds.
Principle of Profitability

The main objective of the commercial bank is to earn a profit.

To make the profit commercial bank have to invest by providing short-term loans, long -term
loans ,housing loan .business loan etc.before providing loan commercial banks have to
compensate a certain amount of money as liquidity.
 CHAPTER III

INDUSTRY PROFILE & COMPANY PROFILE

INDUSTRY PROFILE

INDIAN BANKING SECTOR

The Reserve Bank of India (RBI) is India's central bank. Though public sector banks
currently dominate the banking industry, numerous private and foreign banks exist. India's
government-owned banks dominate the market. Their performance has been mixed, with a
few being consistently profitable. Several public sector banks are being restructured, and in
some the government either already has or will reduce its ownership.

PRIVATE AND FOREIGN BANKS

The RBI has granted operating approval to a few privately owned domestic banks; of these
many commenced banking business. Foreign banks operate more than 150 branches in India.
The entry of foreign banks is based on reciprocity, economic and political bilateral relations.
An inter-departmental committee approves applications for entry and expansion.

CAPITAL ADEQUACY NORM

Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993,
while Indian banks with overseas branches had until March 1995 to meet that target. All other
banks had to do so by March 1996. The banking sector is to be used as a model for opening
up of India's insurance sector to private domestic and foreign participants, while keeping the
national insurance companies in operation.
BANKING

India has an extensive banking network, in both urban and rural areas. All large Indian banks
are nationalized, and all Indian financial institutions are in the public sector.

RBI BANKING

The Reserve Bank of India is the central banking institution. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India. It supervises and
administers exchange control and banking regulations, and administers the government's
monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign
banks operate in India with full banking Licenses. Several licenses for private banks have
been approved. Despite fairly broad banking coverage nationwide, the financial system
remains inaccessible to the poorest people in India.

INDIAN BANKING SYSTEM

The banking system has three tiers. These are the scheduled commercial banks; the regional
rural banks, which operate in rural areas, not covered by the scheduled banks; and the
cooperative and special purpose rural banks.

SCHEDULED AND NON SCHEDULED BANKS

There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200
regional rural banks; more than 350 central cooperative banks, 20 land development banks;
and a number of primary agricultural credit societies. In terms of business, the public sector
banks, namely the State Bank of India and the nationalized banks, dominate the banking
sector.

NEW GENERATION BANKING

 The liberalize policy of Government of India permitted entry to private sector in the banking,
the industry has witnessed the entry of nine new generation private banks. The major
differentiating parameter that distinguishes these banks from all the other banks in the Indian
banking is the level of service that is offered to the customer. Verify the focus has always
been centered on the customer – understanding his needs, preempting him and consequently
delighting him with various configurations of benefits and a wide portfolio of products and
services. These banks have generally been established by promoters of repute or by ‘high
value’ domestic financial institutions. The popularity of these banks can be gauged by the
fact that in a short span of time, these banks have gained considerable customer confidence
and consequently have shown impressive growth rates. Today, the private banks corner
almost four per cent share of the total share of deposits. Most of the banks in this category
are concentrated in the high-growth urban areas in metros (that account for approximately
70% of the total banking business). With efficiency being the major focus, these banks have
leveraged on their strengths and competencies viz. Management, operational efficiency and
flexibility, superior product positioning and higher employee productivity skills.

The private banks with their focused business and service portfolio have a reputation of being
niche players in the industry. A strategy that has allowed these banks to concentrate on few
reliable high net worth companies and individuals rather than cater to the mass market.
These well-chalked out integrates strategy plans have allowed most of these banks to deliver
superlative levels of personalized services. With the Reserve Bank of India allowing these
banks to operate 70% of their businesses in urban areas, this statutory requirement has
translated into lower deposit mobilization costs and higher margins relative to public sector
banks.

BUSINESS OF BANKING

Banking, in a traditional sense is the business of accepting deposits of money from public for
the purpose of lending and investment. These deposits can have a distinct feature of being
withdrawal by cheques, which no other financial institution can offer.

In addition to this banks also offer various other financial services which include:
 Issuing Demand Drafts & Travelers Cheques
 Collection of Cheques, Bills of exchange
 Safe Deposit Lockers
 Issuing Letters of Credit & Letters of Guarantee
 Sale and Purchase of Foreign Exchange
 Custodial Services
 Investment services

The business of banking is highly regulated since banks deal with money offered to them by
the public and ensuring the safety of this public money is one of the prime responsibilities of
any bank. That is why banks are expected to be prudent in their lending and investment
activities. The major regulations and acts that govern the banking business are:
 Banking Regulations Act
 Reserve Bank of India Act
 Foreign Exchange Regulation (Amendment) Act, 1993
 Indian Contract Act
 Negotiable Instruments Act

Banks lend money either for productive purposes to individuals, firms, corporates etc. or for
buying house property, cars and other consumer durable and for investment purposes to
individuals and others. However, banks do not finance any speculative activity. Lending is
risk taking. The risk should be covered by having prudent norms for lending. The depositors
of banks are also assured of safety of their money by deploying some percentage of deposits
in statutory reserves like SLR & CRR.
OVERVIEW OF BANKING INDUSTRY: THE INDUSTRY BASICS

Banks play a key role in the entire financial system by mobilizing deposits from households
spread across the nation and making these funds available for investment, either by lending or
buying securities. Today the banking industry has become an integral part of any nation’s
economic progress and is critical for the financial wellbeing of individuals, businesses,
nations, and the entire globe. In this article, we will provide an overview of key industry
concepts, main sectors, and key aspects of the banking industry’s business model and trends.

A bank is a financial institution that provides banking and other financial services to their
customers. Banks are a subset of the financial services industry and play an important role in
the global economies. They are a key player in stimulating economic growth. Banking is an
important undertaking. The movement of capital handled by banks allows economies to grow
and prosper. Businesses and governments need money to operate, and banks act as
intermediaries between the suppliers of funds and users of funds.

Banking Basics: The Law of Banking

Law of Banking teaserBanking law is based on a contractual agreement between the bank and
customer. The customer is any entity for which the bank agrees to conduct an account or
business. Given below are the generally accepted rights and obligations:

• The bank account balance is the financial position between the bank and the customer:
when the account is in credit, the bank owes the balance to the customer; when the account is
overdrawn, the customer owes the balance to the bank.

• The bank agrees to pay the customer's cheques up to the amount standing to the credit of the
customer's account, plus any agreed overdraft limit.
• The bank may not pay from the customer's account without a mandate from the customer,
example cheques drawn by the customer.

• The bank agrees to promptly collect the cheques deposited to the customer's account as the
customer's agent, and to credit the proceeds to the customer's account.

• The bank has a right to combine the customer's accounts, since each account is just an
aspect of the same credit relationship.

• The bank has a lien on cheques deposited to the customer's account, to the extent that the
customer is indebted to the bank.

• The bank must not disclose details of transactions through the customer's account—unless
the customer consents, there is a public duty to disclose, the bank's interests require it, or the
law demands it.

• The bank must not close a customer's account without reasonable notice, since cheques are
outstanding in the ordinary course of business for several days.

These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force within a particular jurisdiction
may also modify the above terms and/or create new rights, obligations or limitations relevant
to the bank-customer relationship.

Types of Banks: Commercial & Investment Banking

Types of Banking teaserThe banking industry can be divided into two categories
‘commercial-banking’ and ‘investment-banking’. Commercial banks play a key role in the
entire financial system by mobilizing deposits from households spread across the nation and
making these funds available for investment, either by lending or buying securities.
Investment Banks, on the other hand, raise capital (cash/money) for companies, which
companies need in order to grow and expand their businesses. Investment banks sell
securities to public investors in the form of stocks or bonds.

Distinctive types of banks are evolving to cater to various business demands, social needs,
and global complexities. These different banking institutions conduct their operations in a
different manner. However, on the basis of their functions, clientele served and products or
services offered, we can classify banks as follows:

 Retail Banks

 Commercial banks

 Investment Banks

 Cooperative banks

 Central banks

 Specialized banks

Business Model: Customer Profiles

Customer Profile Banking teaserBanks are large and complex organizations. Their clients
range from individuals and institutions, all the way up to the governments and central banks
of entire countries. This industry builds and maintains financial relationships with a variety of
customers ranging from individuals to governments to supply financial products and services.
Given below are the major classification of banking customers:

• Individual Consumers

• Small Businesses & Traders

• Farmers & Rural Consumers

• Corporates and Corporations

• Banks – Domestic & International

• Governments

• Institutional Investors

• Non-Profit Organizations

• International Clients

Business Model: Banking Products & Services

Products Services Banking teaser

The Banking sector offers several facilities to their customers including safeguarding their
money and valuables and providing them with numerous types of credit loans to meet their
many needs like home loans, consumer loans, personal loans, etc. Banks also provide
additional services like credit, and payment services, such as checking accounts, money
orders, and cashier's cheques. The banks also offer investment and insurance products. The
key operational activities are listed below:

Acceptance of Deposits

Lending of Funds

Clearing of Cheques

Remittance of Funds

Lockers & Safe Deposits

Bill Payment Services

Online Banking

Credit & Debit Cards

Overseas Banking Services

Wealth Management
Investment Banking

Social Objectives

Business Model: Functions of the Banking Industry

Functions Banking teaserThe banking industry is growing rapidly. It's estimated that the
assets of the 1,000 largest banks are worth almost $100 trillion USD. With the growth in the
industry, banks manage a diverse portfolio of functions. Bank provides various services and
offers many products. The following discussion explains the key functions of the bank:

 Provide security to the savings of customers by safeguarding it

 Offering interest on the deposits kept with it

 Control the supply of money and credit

 Arrange funds to the parties who need them by borrowing from parties who have surplus

 Encourage public confidence in the working of the financial system

 Increase savings speedily and efficiently

 Avoid focus of financial powers in the hands of a few individuals and institutions
 Set equal norms and conditions to all types of customers

Business Model: Dynamic Regulatory Environment

Regulations Banking teaserBanks operating in most of the countries are exposed to various
stringent regulations. Most governments enforce rules and procedures to govern their
operations and service offerings, and the manner in which they grow and expand their
facilities to better serve the public. A banker works within the financial system to provide
loans, accept deposits, and provide other services to their customers. They must do so within
a climate of extensive regulation, designed primarily to protect the public interests. The main
reasons why banks are heavily regulated are as follows:

• To protect the safety of the public's savings.

• To control the supply of money and credit in order to achieve a nation's broad economic
goal.

• To ensure equal opportunity and fairness in the public's access to credit and other vital
financial services.

• To promote public confidence in the financial system, so that savings are made speedily and
efficiently.

• To avoid concentrations of financial power in the hands of a few individuals and

institutions.

• Provide the Government with credit, tax revenues, and other services.
• To help sectors of the economy that they have special credit needs for example Housing,
small business and agricultural loans, etc.

Current Industry Trends

Trends Banking teaserAs a variety of models for cooperation and integration among finance
industries have emerged, some of the traditional distinctions between banks, insurance
companies, and securities firms are fast diminishing. In spite of all these developments, banks
continue to maintain and perform their primary role—accepting deposits and lending funds
from these deposits. During recent times, technological advances have enabled banks to
extend their reach globally, and there is no longer a need for customers to visit bank branches
for every transaction, as most of the transactions can happen online.

The growth in cross-border activities has also increased the demand for banks that can
provide various services across borders to different nationalities. Despite these advances in
cross-border activities, the banking industry is nowhere near as globalized as some other
industries. There is no doubt that “Technology” is going to be a catalyst in that growth,
creating huge opportunities for professionals with a good understanding of the banking
industry domain.
History of Banking: Evolution of Banking as an Industry

Banking is one of the oldest industries and banking in the form that we know of began at
about 2000BC of the ancient world. It started with merchants making grain loans to farmers
and traders while carrying goods between cities. Since then, the banking industry has evolved
from a simplistic barter system and gift economies of earlier times to modern complex,
globalized, technology-driven, and internet-based e-banking model. In this article, we will
take you through the major events and developments in the history of the banking industry.

The History of Banking began at about 2000BC of the ancient world when merchants made
grain loans to farmers and traders started carrying goods between cities within the areas of
Assyria and Babylonia. The Code of Hammurabi, dating back to about 1772 BC, is one of the
oldest deciphered writings of significant length in the world that deals with matters of
contract and set the terms of a transaction. This code also included standardized procedures
for handling loans, interest, and guarantees.

Later on, in ancient Greece and during the Roman Empire, lenders based in temples made
loans and started accepting of deposits. Banking activities in Greece are more varied and
sophisticated than in any previous society. They took deposits, made loans, changed money
from one currency to another, and tested coins for weight and purity. They even engaged in
book transactions. Moneylenders can be found who will accept payment in one Greek city
and arrange for credit in another, avoiding the need for the customer to transport or transfer
large numbers of coins.

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance
Italy, to the rich cities in the north such as Florence, Venice, and Genoa. The development of
banking spread through Europe and a number of important innovations took place in
Amsterdam during the Dutch Republic in the 16th century and in London in the 17th century.
Some of the earlier systems that facilitated trading/exchange of goods were barter system and
gift economies.
Barter System:

The Barter system is an age-old method

that was adopted by people to exchange their services and goods. This system was used for
centuries, before the invention of money. People used to exchange goods or services for other
goods or services in return. The advantage of bartering is that it does not involve money. You
can buy an item in exchange for some other thing you currently have but don't want. The
barter system was one of the earliest forms of trading. It facilitated the exchange of goods and
services, as money was not invented in those times. The barter system has been in use
throughout the world for centuries. The invention of money did not result at the end of
bartering services.

Gift Economy:

A gift economy (or gift culture) is a society

where valuable goods and services are regularly given without any explicit agreement for
immediate or future rewards. The gifts are exchanged as per the prevailing informal customs,
rather than an explicit exchange of goods or services for money or some other commodity.
Gift economies were prevalent before the advent of market economies but gradually
disappeared as societies became more complex. Contrary to popular conception, there is no
evidence that societies relied primarily on barter before using the money for trade, Instead,
non-monetary societies operated largely along with the principles of gift economics and debt.
When barter did in fact occur, it was usually between complete strangers.

Banking in 20th Century:

During the 20th century, developments in

telecommunications and computing resulting in major changes to the way banks operated and
allowed them to dramatically increase in size and geographic spread. The Late-2000s
financial crisis saw significant numbers of bank failures, including some of the world's
largest banks. The following paragraph provides a snapshot of some developments in the
banking industry over the last century:

 The 1930s-1960s – The Great Depression:

During the Crash of 1929 preceding the Great Depression, banking and brokerage firms were
operating with margin requirements of mere ~10%. It meant that the brokerage firms would
lend $9 for every $1 an investor had deposited. When the market fell, brokers called in these
loans, which could not be paid back. Banks began to fail as debtors defaulted on debt and
depositors attempted to withdraw their deposits en masse, triggering multiple banking runs.
Government guarantees and Federal Reserve banking regulations to prevent such panics were
ineffective or not used. Bank failures led to the loss of billions of dollars in assets. After the
panic of 1929, and during the first 10 months of 1930, 744 US banks failed and in all, over
9,000 banks failed during the 1930s. The depression is said to be one of the factors leading to
World War II and the post-war recovery period saw governments taking on a more active and
larger role in banking, leading to increased regulation. In response to these many countries
significantly increased financial regulation and established regulatory agencies to oversee
banking operations and during the post-Second World War period two organizations were
created: The International Monetary Fund (IMF) and the World Bank.
 COMPANY PROFILE

Company Profile

Housing Development Finance Corporation Limited (HDFC Ltd.) was established in 1977
with the primary objective of meeting a social need of encouraging home ownership by
providing long-term finance to households. Over the last three decades, HDFC has turned the
concept of housing finance for the growing middle class in India into a world-class enterprise
with excellent reputation for professionalism, integrity and impeccable service.

A pioneer and leader in housing finance in India, since inception, HDFC has assisted more
than 39 Lakh customers to own a home of their own, through cumulative housing loan
approvals of over Rs. 3.73 trillion and disbursements of over Rs. 3.02 trillion as at March 31,
2011.

HDFC has a wide network of 304 offices (which includes 74 offices of HDFC's wholly
owned distribution company HDFC Sales Private Limited) catering to over 2,400 towns &
cities spread across the country. It also has offices in Dubai, London and Singapore and
service associates in the Middle East region, to provide housing loans and property advisory
services to Non-Resident Indians (NRI’s) and Persons of Indian Origin (PIO’s).

HDFC's unrelenting focus on Corporate Governance, high standards of ethics and clarity of
vision, percolate through the organization. Trust, Integrity, Transparency and Professional
Service are the important pillars of the brand HDFC and most importantly, people - both
employees and customers - are its brand ambassadors.

Customer satisfaction is the hallmark of all HDFC offerings. The first touch of HDFC's
personalized service begins as soon as a customer approaches HDFC, and over time it
progresses into a long and meaningful relationship. State-of-the-art information systems
supported by strong in-house training programs conducted at its specialized training centre in
Lonavla, have equipped HDFC to respond swiftly to the ever-changing customer needs and
thereby empower customers in making the right home buying decision. This is what sets
apart HDFC's customer service philosophy - 'With You, Right Through'.

HDFC's specialist team of over 1,600 trained and experienced professionals follows a 'single-
window concept' for providing smooth and value added services at all stages. The team
guides the customers right through the entire process of property purchase - be it property
search assistance, technical support prior to finalizing the property, legal advice on property
related documentation, personalized home loan counseling or providing tailor-made
repayment options to suit the customer's specific requirements.

HDFC's wide product range includes loans for purchase and construction of a residential unit,
purchase of land, home improvement loans, home extension loans, non-residential premises
loans for professionals and loan against property, while its flexible repayment options include
Step Up Repayment Facility (SURF) and Flexible Loan Installment Plan (FLIP).

HDFC also has a robust deposits mobilization program. HDFC has been able to mobilize
deposits from over 10 lakh depositors. Outstanding deposits grew from Rs. 1,458 crores in
March 1994 to Rs. 24,625 crores in March 2011. In addition, HDFC has received 'AAA'
rating for its Deposit products for highest safety from both CRISIL and ICRA for seventeen
consecutive years.

Over the years, HDFC has emerged as a financial conglomerate with its presence in the entire
gamut of financial services including banking, insurance (life and non-life), asset
management, real estate venture capital and more recently education loans.

Today, HDFC is recognized as one of the Best Managed Companies in India and is a model
housing finance company for developing countries with nascent housing finance markets.
HDFC has undertaken several consultancy assignments in various countries across Asia,
Africa and East Europe to support and establish their housing finance institutions.

At HDFC, 'Corporate Social Responsibility' has always been an evolving concept, akin to its
'learning by doing' philosophy. As part of its social objectives, HDFC has always endeavored
to contribute to economic development and social upliftment of the weaker sections of
society and has professionally nurtured each of its social initiative as an investment. HDFC
has undertaken development oriented work and supported several social initiatives in the
areas of education, child welfare, medical research, welfare for the elderly and the
handicapped among several others.

HDFC is how millions of Indian families spell the word 'Home' as the brand not only offers
Housing Finance, but also Total Housing Solutions.

The HDFC Advantage

 Pioneers of Housing Finance in India with over 34 years of lending experience.

 Widest range of home loan & deposit products.
 Vast network of over 304 interconnected offices which includes 3 international offices.
 Most experienced and empowered personnel to ensure smooth & easy processing.
 Online loan application facility at www.hdfc.com and across-the-counter services for new
deposits, renewals & repayments.
 Counselling and advisory services for acquiring a property.
 Flexible loan repayment options
 Free & safe document storage.

Housing Finance Sector

Against the milieu of rapid urbanization and a changing socio-economic scenario, the
demand for housing has grown explosively. The importance of the housing sector in the
economy can be illustrated by a few key statistics. According to the National Building
Organization (NBO), the total housing shortfall is estimated to be 19.4 million units, of which
12.76 million units is from rural areas and 6.64 million units from urban areas. The housing
industry is the second largest employment generator in the country.

Background
HDFC was incorporated in 1977 by Mr. Hasmukhbhai Parekh with the primary objective of
meeting a social need - that of promoting home ownership by providing long-term finance to
households. The launching of HDFC was meant to be one small step in dealing with the
availability of housing accommodation in India which was then virtually non-existent. HDFC
as a pioneer launched India's first specialized home loan company with an initial capital of
Rs. 100 million.

Business Objective of HDFC Ltd.

The primary objective is to enhance residential housing stock in the country through the
provision of housing finance in a systematic and professional manner, and to promote home
ownership. The aim is to increase the flow of resources to the housing sector by integrating
the housing finance sector with the overall domestic financial markets.

Organizational Goals:

 Develop close relationships with individual households.

 Maintain our position as the premier housing finance institution in the country.
 Transform ideas into viable and creative solutions.
 To grow through diversification by gaining leverage from our existing client base.
 To nurture the values and ethos of Brand HDFC through all its Subsidiaries and Associate
Companies.

Growth strategies:

 Increase the return on equity each year by 1 percentage point in order to maximise
shareholder value;
 Maintain gross Non-Performing Assets (NPA’s) below 1%;
 Consistently grow the loan book;
  Improve operational efficiency by consistently bringing down the cost to income ratio.

Organization & Management

HDFC is a professionally managed organization with a board of directors consisting of

eminent persons, professionals who represent various fields including finance, taxation,
construction and urban policy & development. The board primarily focuses on strategy
formulation, policy and control, designed to deliver increasing value to stakeholders.

Board of Directors
Details of the Board of Directors in terms of their directorships/memberships in committees
of public companies (excluding HDFC) as on July 8, 2011 are as under:

Sr. No. of No. of Committees***

Name of Director Category*
No. Directorship** Member Chairperson

Non Executive
1 Mr. Deepak S. Parekh 11 7 5
Chairman

2 Mr. Keshub Mahindra Vice Chairman 5 1 1

3 Mr. Shirish B. Patel Independent 1 0 0

4 Mr. B. S. Mehta Independent 14 9 5

5 Mr. D. M. Sukthankar Independent 3 1 1

6 Mr. D. N. Ghosh Independent 5 1 1

7 Dr. S. A. Dave Independent 7 6 0

8 Dr. Ram S. Tarneja Independent 11 6 1

9 Mr. N. M. Munjee Independent 13 9 4

10 Dr. Bimal Jalan Independent 0 0 0

11 Dr. J. J. Irani $ Non-executive 6 1 0

Executive
12 Mr.V.Srinivasa Rangan 9 5 0
Director

Managing
13 Ms. Renu Sud Karnad 13 5 3
Director

Vice Chairman
& Chief
14 Mr. Keki. M. Mistry 12 10 3
Executive
Officer

 
$ Dr. J. J. Irani was appointed as a special director under Articles 125 and 126 of the
Articles of Association of the Corporation w.e.f. January 18, 2008.

* All Independent directors have confirmed having met the criteria laid under Clause 49 (I)
(A) (iii) of the listing agreements relating to Corporate Governance.

** Directorships do not include alternate directorships, directorships of private limited

companies and of companies incorporated outside India.

*** In terms of Clause 49 (I) (C) (ii) of the Listing Agreements, a director cannot become a
member in more than 10 committees or act as Chairman of more than 5 committees across
all public companies in which he is a director. For this purpose, only Audit Committee and
Investors' Grievance Committee are required to be considered.

Excluding the directorships mentioned above, Mr. Deepak S. Parekh is an alternate director
in 4 companies.

HDFC has a staff strength of 1,607 (as on 31st March, 2011), which includes professionals
from the fields of finance, law, accountancy, engineering and marketing.

HDFC Consulting Services

HDFC is a unique example of a housing finance company which has demonstrated the
viability of market-oriented housing finance in a developing country. It is viewed as an
innovative institution and a market leader in the housing finance sector in India. The World
Bank considers HDFC a model private sector housing finance company in developing
countries and a provider of technical assistance for new and existing institutions, in India and
abroad. HDFC’s executives have undertaken consultancy assignments related to housing
finance and urban development on behalf of multilateral agencies all over the world.

HDFC has also served as consultant to international agencies such as World Bank, United
States’ Agency for International Development (USAID), Asian Development Bank, United
Nations’ Center for Human Settlements, Commonwealth Development Corporation (CDC)
and United Nations’ Development Program (UNDP). HDFC has also undertaken assignments
for the United Nations’ Capital Development Fund in Ethiopia, for the UNCHS in Nairobi,
for USAID in Russia and Bulgaria, and projects of the World Bank in Indonesia and Ghana.

At the national level, HDFC executives have played a key role in formulating national
housing policies and strategies. Recognizing HDFC’s expertise, the Government of India has
invited HDFC’s executives to join a number of committees and task forces related to housing
finance, urban development and capital markets.

Social Initiatives

Today, more than ever there is an increasing necessity for the business sector to include
'socially responsible actions' as a part of their organizations agenda. However, at HDFC this
commitment was embraced in its nascent years and has since grown in leaps and bounds.
Right from its inception years, HDFC has made consistent efforts towards social upliftment
by maintaining an active Social Initiatives portfolio. It is only fair to deduce that the credit for
crossing the confines of a mere profit making entity to embracing interrelated social concerns
rests on the vision and leadership of our founder Chairman Mr. H. T. Parekh.

Awards & Accolades

2020

 India's Best Bank : Euromoney Awards

2019

 Best Bank: New Private Sector – FE Best Bank awards

 Winner in Innovation and Inclusiveness in Priority Sector Lending – 11th Inclusive
Finance India Awards (IFI) 2019
 Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC Bank was
featured for the 6th consecutive year.
 Among The Most Honored Company List, Institutional Investor All-Asia (ex-Japan)
Executive Team 2019 survey
 India’s Best Bank, Euromoney Awards for Excellence 2019
 Bank of the Year and Best Large Bank, Business Today – Money Today Financial
Awards 2019
 Best Bank in India 2019, by Global magazine FinanceAsia. [38]
 Ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands [39] HDFC Bank was
featured BrandZ Top 100 Most Valuable Global Brands 2019 for the 5th consecutive year.
The Bank's brand value has gone up from $20.87 billion in 2018 to $22.70 billion in 2019.
 Best Large Bank & Fastest Growing Large Bank in 2019, by Business World Magna
Awards[40]

2016[edit]

 Best Banking Performer, India in 2016 by Global Brands Magazine Award.[41]

 Best Performing Branch in Microfinance among private sector banks by NABARD, 2016,
Award for Best Performance in Microfinance [42]
 KPMG study of India's Best Banks, Bank of the year & best digital banking initiative award
2016[43]
 BrandZ Rankings, Most Valued brand in India for third successive year [44]
 FinanceAsia poll on Asia's Best Companies 2015, Best managed public company – India [45]
 J. P. Morgan Quality Recognition Award, Best in class straight through processing rates

Mr. Deepak Parekh awarded Ernst &Young's Lifetime Achievement Award for his
exceptional contribution in developing India's Financial Services Sector

Mr. Deepak Parekh Awarded "the Most Inspiring Business leader" by NDTV Profit
Best CFO in the financial sector for 2010 by ICAI. (Feb '11)
Mr. VS Rangan, Executive Director, HDFC has been awarded the "Best CFO in the financial
sector" for 2010 by ICAI.

Verve Power List 2010 (June '10) Ms. Renu Sud Karnad featured in Verve magazine's list of
50 power women.

FinanceAsia's List of Asia's Best Managed Companies (April '10) HDFC featured in
FinanceAsia magazine's list of Asia's Best Managed Companies.

ET - Corporate Dossier List of India Inc's Most Powerful Women leaders (Apr '10) Ms. Renu
Sud Karnad featured among the list of top 15 powerful women CEOs.

Reader's Digest - India's Most Trusted 2009 (Mar '10)Mr. Deepak Parekh voted among
India's Most Trusted by people across India in a poll conducted by Reader's Digest on a list of
100 public figures.

India Today Power List 2010 (Mar '10) Mr. Deepak Parekh featured in India Today's list of
50 Power People.

Times of India - Crest List of 100 Powerful Women (Mar '10) Ms. Renu Sud Karnad featured
in the business category among the List of 100 Powerful Women by TOI - Crest.

Dun & Bradstreet - Rolta Corporate Awards 2009 (Mar '10) HDFC selected for the fourth
consecutive year as the 'Top Indian Company' for the 'Financial Institutions/Non-Banking
Financial Companies/Financial Services' sector at the Dun & Bradstreet - Rolta Corporate
Awards 2009.

Institute of Chartered Accountants in England and Wales (ICAEW) Award (Feb '10) Mr.
Deepak Parekh pronounced as the first international recipient of the 'Outstanding
Achievement Award' by ICAEW.

Confederation of Real Estate Developers Associations of India (CREDAI) Award (Feb '10)
Mr. Deepak Parekh awarded the 'Lifetime Achievement Award' by CREDAI for his
contribution to the Real Estate Industry at Natcon 2010 in Dubai.
Certificate for commitment to TQM CII-EXIM Bank Commendation Cert. for commitment
to TQM - 2000.

Best Managed Company and Asia Pacific region's India's Second Best Managed Company
and Asia Pacific region's 18th, by AsiaMoney magazine – 2000.

Future

HDFC has always been market-oriented and dynamic with respect to resource mobilization as
well as its lending program. This renders it more than capable to meet the new challenges that
have emerged. Over the years, HDFC has developed a vast client base of borrowers,
depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client
base for future growth. Internal systems have been developed to be robust and agile, to take
into account changes in the volatile external environment.

HDFC has developed a network of institutions through partnerships with some of the best
institutions in the world, for providing specialized financial services. Each institution is being
fine-tuned for a specific market, while offering the entire HDFC customer base the highest
standards of quality in product design, facilities and service.

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
Out of the Data Collected from 97 respondents, we found that 37 of them were having HDFC
Bank as their PRIMARY BANK. Over a piece of the bit of the pie was gotten by HDFC,
Canara and ICICI Bank Family Accounts

Out of the Manufacturers and merchants with HDFC as Primary Bank, Approximately 70
percent of them have records with HDFC. This correct now HDFC bank has remarkable
Credibility with it is present clients.

Factors for choosing Primary Bank

24 Percent of the model picked a zone as the most significant factor while picking a bank. 29
of the model picked a territory as second regularly noteworthy. Thusly it might be normal
that district is a tremendous factor while picking a bank. So standard transparency of
branches will
help in creating customers.

30 Percent of the model picked region as the most essential factor while picking a bank. 28 of
the model picked a zone as second normally gigantic. Subsequently, it might be contemplated
that admirable customer administration is an essential factor while picking a bank.
23 percent of individuals have chosen Reputation and corporate Image as their first factor for
picking an essential bank.

15 percent of individuals have chosen Reputation and corporate Image as their first factor for
picking a central bank.
16 percent of individuals have chosen Reputation and corporate Image as their first factor for
picking an essential bank.

9 percent of individuals have picked Interest rates as their first factor for picking a
fundamental
bank.

Awareness about Payzapp/Chillr

Just 22 percent of the model contemplates Payzapp and chillr

Awareness about Smart Hub
Just 12 percent of test contemplates Smart Hub

Factors for Switching Bank

1: Minimum Balance Requirement

2: Customer Service Level
3: Customized Banking Services
4: Interest Rates on Savings and Fixed Deposits
5: Mobile and Internet Platforms
6: Minimum Service Charges
7: Interest rates on Loans
8: Perks for new clients and expanded length clients
As saw from the above Pie Chart it is seen that 22 percent of the customers have picked
tendencies for new clients and noteworthy parcel clients as the most gigantic factor for
changing to another bank.
Speculation of the Study:
H1: Consumer Perception fundamentally impacts customer unwavering quality.
H2: Product and Services has an essential relationship with purchaser commitment.
H3: Customer Interest has an essential relationship with the client resolute quality.
H4: Working Capital Provision has a mammoth relationship with customer loyalty.
H5: Forex Services has an essential relationship with customs duty.
H6: Interest Rates have a fundamental relationship with customer dependability.
Data Analysis:
The going with Data evaluation is performed reliant on the information filled in the
investigations. There are differing mechanical congregations of information assessment that
cause the inspector to unwind information into authoritative outcomes. Different contraptions
have been utilized to isolate the information and for the testing of the Hypothesis.
Checking the Normality of the data collected:
Normality test was applied.

A. Lilliefors Significance Correction

Mean estimations of gathered reactions for each piece was settled and utilized for applying
the
customariness test.
Since the model size < 2000, the Shapiro-Wilk test has been utilized for finding the
ordinariness
of the present information.
At this moment p-values are well above 0.05; thus the information possible is standard.
Therefore, parametric tests will be utilized for appraisal.
Testing the reliability of questionnaires
The scales are 77.8% dependable as indicated by Cronbachs alpha and it proposes that there
is
.778 likelihood that we are going to check customer devotion correctly.

Correlation:
HYPOTHESIS 1:

**. Correlation is significant at the 0.01 level (2-tailed).

H1: Consumer Perception out and out impacts purchaser steadfastness.
From the table, the p respect is .000 which is under .05 this proposes the affiliation is basic.
The relationship coefficient is 0.782 which proposes that there is a fantastically positive level
of
relationship be tween’s Service Quality and Customer Satisfaction.
Along these lines, the theory is perceived.

HYPOTHESIS 2:
H2: Product and Services has a significant impact on customer Satisfaction.
From table, the p respect is .000 which is under .05 this recommends the affiliation is
fundamental.
Relationship coefficient is 0.632 which recommends that there is a remarkably positive level
of
relationship be tween’s Service Quality and Customer Satisfaction.
HYPOTHESIS 1:

**. Correlation is significant at the 0.01 level (2-tailed).

H1: Consumer Perception all around impacts buyer dedication.
From the table, the p regard is .000 which is under .05 this suggests the relationship is basic.
The connection coefficient is 0.782 which prescribes that there is a basically positive degree
of
relationship be tween’s Service Quality and Customer Satisfaction.
Right now, the hypothesis is seen.

HYPOTHESIS 2:
H2: Product and Services has a significant impact on customer Satisfaction.

From the table, the p regard is .000 which is under .05 this translates the alliance is basic.
The relationship coefficient is 0.632 which translates that there is an astoundingly positive
degree of connection be tween’s Service Quality and Customer Satisfaction.
HYPOTHESIS 3:

**. Correlation is significant at the 0.01 level (2-tailed).

H3: Customer Interest generally impacts purchaser endurance.
From the table, the p respect is .000 which is under .05 this proposes the relationship is basic.
The relationship coefficient is 0.805 which proposes that there is a fundamentally positive
level
of relationship be tween’s Service Quality and Customer Satisfaction.

Right now, a theory is perceived.

HYPOTHESIS 4:
**. Correlation is significant at the 0.01 level (2-tailed).

H4: Working Capital Provisions on a very basic level impacts customer unwavering quality.
From the table, the p respect is .000 which is under .05 this construes the affiliation is
fundamental.
The affiliation coefficient is 0.625 which construes that there is an astoundingly positive level
of
association be tween’s Service Quality and Customer Satisfaction.
Consequently, the theory is perceived.
HYPOTHESIS 5:

**. Correlation is significant at the 0.01 level (2-tailed).

H5: Forex Services by and large impacts buyer steadfastness.
From table, the p respect is .000 which is under .05 this recommends the affiliation is critical.
Relationship coefficient is 0.683 which construes that there is an astoundingly positive level
of
relationship be tween’s Service Quality and Customer Satisfaction.
In this way, the theory is perceived.

HYPOTHESIS 6:

**. Correlation is significant at the 0.01 level (2-tailed).

H6: Interest Rates all things considered effects buyer unflinching quality.
From the table, the p regard is .000 which is under .05 this prescribes the association is
crucial.
The relationship coefficient is 0.697 which prescribes that there is a particularly positive
degree of connection be tween’s Service Quality and Customer Satisfaction.
In like manner, the hypothesis is seen.
Statistical Analysis
Since it will generally be speaking be seen that the keep cash with most raised survey regards
is ICICI, HDFC, and SBI. HDFC stood second on the Top of the mind test. Top of the mind
tests prompts the survey estimation of a brand. Generally translates what does ring a bell
when they thought about the word bank. In the creator piece, HDFC stayed on the third
position, which proposes HDFC is not that Staggering during the zones thought about. In the
specialists; region HDFC stayed on the fundamental position. It prescribes among shippers
HDFC is the most inspected brand i.e. it is particularly prominent with the administrators
related in the plan.
 CHAPTER V
FINDINGS SUGGESTIONS AND CONCLUSION

RECOMMENDATIONS

Customer Perception has a positive relationship with Customer Satisfaction, right now ought
to use demonstrating methods to drive a not too horrible picture as exhibited by the customer
this will create the purchaser duty, right now with expanding bit of the general business.

Customer Interest has a positive relationship with Customer Satisfaction, therefore bank
ought to use lifting techniques to prompt an OK picture as per the customer this will make the
buyer dedication, consequently helping with creating a bit of the pie.

The Top of Mind survey on the social occasion is foolishly low for instance 3 positions. So
HDFC Bank should center to the amassing division to widen care and extension it bit of the
general business among this part.

In the money related information, the first space was for a fundamental bank. Here around
25% of the model is having crucial banks like HDFC Bank, which is especially less in
affirmed terms, as here HDFC has one of the most masterminded branches. Still, there are
various parts thinking about which specialists are dealing with a record with most by a wide
edge of the open division banks. All the sellers were having current a/c with their crucial
banks, yet at the same time particularly less are having limits starting there bank, perhaps it is
HDFC or some other bank. 

Exactly when drawn nearer about the reason for having a particular bank, people who are
having open portion bank they said it is conceivable that he understands someone in banks or
the trust level is unbelievably high with them yet none of them said that I am getting
normally unfathomable help so I am with a particularly open part bank. So still there is the
trust need among social solicitations concerning HDFC Bank, which is a fundamental
clarification for lacking behind to get the bit of the pie.
Managerial Implications

The trust level among administrators for private area banks is especially less. So HDFC Bank
should be the first in private fragment to have soon to-day meets with dealers. They should be
outfitted with some supportive assurance for their business concerning banking and give them
enormous information. Cost is the one factor which is a reason for considering open piece
banks, for revealing these merchants should be demonstrated what the affiliations extra to
open part bank HDFC Bank is

giving if it is having a continuously basic cost. The vendors should be demonstrated

essentially all kinds of charges and a brief time span later the affiliations gave pondering that
charge. The money finding without asking is a basic issue causing disappointment with any
bank. HDFC should endeavor to use improvement in that term and they should have a
credible receipt structure if any charge for any help is sliced and a message should be given
to venders phones with e-receipts.

Multiple banking can be likewise taken as a challenge. Vendors should be enlightened in a

short time regarding paying more charges by having indisputable banking by adjusted ways,
so they can get pulled in towards the banks relationship no issue in any capacity whatsoever.
The limit is the one thing which is so far new in a show by huge banks. EMI decisions,
working capital, etc. are other than about people do not have information. There can be a day
in a bank wherein all the business masters should be open just for offering meetings
boundlessly especially for agents. It might be named as Cash related achievement
conversation camp. It should be separated through in purpose of a combination of a market.
There is a need for an organization in offering sorts of help and in directing customers. There
should be a trustworthy show while dealing with a specific course of Article ion of the
customer.
CONCLUSION

The principles of universal banking is a desirable goal and some progress has already been
made by permitting banks to diversify into investments and long-term financing and the
DFI’s to lend for working capital, etc. However, banks have certain special characteristics
and as such any dilution of RBI’s prudential and supervisory norms for conduct of banking
business would be inadvisable. Further, any conglomerate, in which a bank is present, should
be subject to a consolidated approach to supervision and regulation.

These are the factors which forces a bank to be a UNIVERSAL BANK.

 Current technology
 Regulation
 Changing needs of customers
 Competition and
 The strategic objectives of potential new competitors

Today the technology needs and demands of the people demand from a bank the solution to
all of their problems under one roof. That is why banking is emerging into UNIVERSAL
BANKING.