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PROJECT REPORT
ON
IDFC BANK

A
Project Report Submitted in Partial
Fulfillment of The Department of
Commerce

Under The Guidance Of:

Mr.Bibhudatta Das
(Guide Lecturer)

Submitted By:
SK ZAHIR HOSSAIN
College Roll No: 21MFC010
Exam Roll No:9721B010

BHADRAK AUTO COLLEGE, BHADRAK

2021-2022

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ACKNOWLEDGEMENT

It gives me immense pleasure to acknowledge my indebtedness

and deep since of gratitude to my respected guide Mr Bibhudatta
Das, Guide Lecturer of Commerce (Bhadrak Autonomous College
,Bhadrak) scholarly guidance valuable suggestions, sympathetic and
encouraging attitude help me to been possible know my part to
complete this piece of work. I am very much grateful to you.

I convey the thankfulness to other staff members of the

department education for the sympathetic attitude and king co-
operation.

l am also thankful to my friends, who rendered their valuable

time and extended help and co-operation investigator unit.

Student Signature
College Roll No: 21MFC010 SK ZAHIR HOSSAIN
Exam Roll No: 9721B010

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GUIDE CERTIFICATE

This is to certify that Mr. SK ZAHIR HOSSAIN, Bearing Roll No.

21MFC010, is a bonafide student of Bhadrak Autonomous College,
Bhadrak. She has successfully completed her project on the topic
"IDFC" under my guidance for the partial fulfillment of his M.Com
(F&C) Bhadrak Auto. College, Bhadrak, under Fakir Mohan
University.

Mr.Bibhudatta Das
Guide Lecturer
Department of Commerce,
Bhadrak (Auto)College,Bhadrak

Date:
Signature

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DECLARATION

I hereby declare that this project work entitled " IDFC ", is
submitted to Bhadrak Autonomous College, Bhadrak in partial
fulfillment of the requirements for the Degree Or Master of
Commerce (F&C) is my own and that it has not been submitted to
my university or institution or published at any time to the best of
my Knowledge.

SK ZAHIR HOSSAIN
College Roll No. 21MFC010
Exam Roll No:9721 B010
Bhadrak (Auto)College, Bhadrak

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ABOUT THE COMPANY

IDFC First Bank (formerly IDFC Bank) is an Indian banking company with headquarters
in Mumbai that forms part of IDFC, an integrated infrastructure finance company. The bank
started operations on 1 October 2015. IDFC FIRST received a universal banking license from
the Reserve Bank of India (RBI) in July 2015. On 6 November 2015, IDFC Bank was listed
on BSE and NSE.
In 2014, the Reserve Bank of India (RBI) granted an in-principle approval to IDFC Limited
to set up a new bank in the private sector. Following this, the IDFC Limited divested its
infrastructure finance assets and liabilities to a new entity - IDFC Bank. The bank was
launched through this demerger from IDFC Limited in November 2015.

IDFC Bank started operations in 19 October 2015 with 23 branches in Madhya Pradesh,
Delhi, Mumbai, Hyderabad, Bengaluru, Pune, Chennai, Ahmedabad and Kolkata. 15
branches are in settlements with a population of less than 10,000. IDFC bank has launched its
100th branch in Honnali, Karnataka in October 2017

In January 2018, Erstwhile IDFC Bank and Erstwhile Capital First announced a merger.
Shareholders of Erstwhile Capital First were to be issued 13.9 shares of the merged entity for
every 1 share of Erstwhile Capital First. Thus, IDFC FIRST Bank was founded as a new
entity by the merger of Erstwhile IDFC Bank and Erstwhile Capital First on December 18
2018.

IDFC FIRST Bank provides a range of financial solutions to individuals, small businesses
and corporate. The Bank offers savings and current accounts, NRI accounts, salary accounts,
demat accounts, fixed and recurring deposits, home and personal loans, small business loans,
forex products, payment solutions and wealth management services. IDFC FIRST Bank has a
nationwide presence and operates in the Retail Banking, Wholesale Banking and other
banking segments. Customers can choose where and how they want to bank: 260 branches,
140 ATMs and 454 rural business correspondent centers across the country, net banking,
mobile banking and 24/7 toll free Banker-on-Call service..

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MISSION AND VISION

• BACKGROUND

IDFC is the promoter of the IDFC FIRST BANK and is registered with Reserve Bank
of India as NBFC- investments. Beside banking, it also has investments in diverse
business such as asset management both public markets and private markets,
Institutional broking and Infrastructure debt Fund. All business are carried out through
independent subsidiaries. IDFC holds all these investments under IDFC holding
company (NOFCH). IDFC is a holding company of the group. IDFC and IDFC bank
are two listed entities of the group and the rest of the businesses are conducted
through unlisted subsidiaries.

• CORPORATE MISSION

Our mission is to create long term value for all stakeholders by being a dynamic and
customer center organization providing banking and other financial services through
our subsidiaries.

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We want to touch the lives of millions of Indian’s in a positive way by providing high
quality banking products and services to them, with particular focus on aspiring
consumers and entrepreneurs of new INDIA, using contemporary technologies.

• CORPORATE VISION

We want to create world best bank, right here in INDIA, for aspiring consumers and
entrepreneurs in INDIA.

To be a leading financial service provider- admired and respected for high corporate
governance, ethics and values.

To primarily support the growth of MSME’s in INDIA with debt capital through
technology, enabled platforms and processes.

To finance inspirations of the Indian consumers using new-age analytics and

technology solutions.

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• Values

1. Responsibility

We respect the fact that our investors have entrusted us with their capital, our
partners with their faith, our customers with their confidence and our
employees with their aspirations. We will measure our success of our
stakeholders and will work diligently to ensure that we fulfill our fiduciary
responsibility.

2. Integrity

We firmly believe that the difference between a good business and a good
organization is the integrity of its people. We will conduct ourselves ethically
and transparently in all our dealings both internal and external.

3. Leadership

We will maintain an environment which fosters creative and encourages

innovation. We believe that this will enable us to attract , retain and nurture
the best talent and develop the business and thought leaders of tomorrow.

4. Mutual Respect

We will build an organization which has a positive mindset. By conducting

every interaction with respect and consideration, we will create a self-
reinforcing culture of success.

5. Community

We believe that it is our responsibility to contribute to the environment in

which we operate. By investing in our community, we will not improve our
surroundings today, but also provide better opportunities for future
generations.

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DETAILED PRODUCTS/SERVICE LINE

• SAVINGS ACCOUNT

IDFC bank enables its customers to open a saving banks account through two modes:
online and offline. We have classified the savings account offered by IDFC bank into
online and offline channels.

1. ONLINE SAVINGS ACCOUNT

This savings account from IDFC bank is a digital savings bank account and can be
opened instantly online using AADHAR based e-KYC. You are not required to
furnish your physical documents and do not have to make a visit at your branch.

FEATURES AND BENEFITS:

The IDFC bank saving account comes loaded with various features and benefits to
make banking experience hassle free and something never witnessed before.

• Open your instantly using Aadhaar based eKYC.

• Free any bank any ATM transaction

• Get unlimited fund transfer

• Get a complementary VISA Signature Debit Card for life

• Earn upto 4% interest p.a. on daily end of day balance, paid quarterly

• 10% cashback on 1st POS transaction above Rs.1000

• No fuel surcharge

• Fantastic insurance offers : accident, lost card and purchase protection

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Eligibility Criteria:

All individuals residing in INDIA can open a savings account with IDFC bank.

Documents Required:

To apply for a savings account with IDFC bank, you should have a PAN Card, Aadhaar Card
and a mobile number linked with your aadhaar card, you can provide Aadhaar Enrolment
Number with any of the following documents:
• Passport
• Voter ID Card
• Permanent Driving License
• Job card issued by NREGA duly signed by any officer of the state government

FEE AND CHARGES

Average Monthly Requirement Rs. 25000

Debit Card Type Visa Signature
Cheque return- Deposited Rs.50
Cheque return- Issued Rs. 250
International ATM or POS transaction Free, only forex mark up 2% of the transaction
value is applicable
Re issue of cheque book Rs. 50 per cheque book
DD payable at branch locations Rs. 30
Replacement of Debit Card Rs. 100
Annual Debit Charges Rs. 100
ATM transactions charge at any ATM in India First 5 ATM transactions- free
6th transaction onwards
Rs.20 + taxes for every cash withdrawal
Rs.8 + taxes for any other transactions ( for eg.
Balance enquiry)

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2. OFFLINE SAVINGS ACCOUNT

• MINOR SAVINGS ACCOUNT

An IDFC bank savings account created specially for children below 18

years of age. This savings account helps introduce the basic principles of
money management to children. The features are:

▪ Get 4% per annum on daily end of day balance, paid quarterly

▪ Sweep out when u need

• SENIOR CITIZEN’S SAVINGS ACCOUNT

A saving account designed for senior citizens with the following features:

▪ Free doorstep banking

▪ Preferential rates on fixed deposits and recurring deposits

▪ Free VISA Signature Debit Card for life

▪ Preferential treatment at bank

• PRATHAM SAVINGS ACCOUNT (BSBDA)

Pratham savings account from IDFC bank provides you multiple banking
services with the benefits and features mentioned below:

▪ Open your savings account instantly using aadhar number at an

IDFC micro ATM or branch near you

▪ Enjoy no stings attached zero balance account

▪ No hidden charges

▪ Access your account using multiple channels of banking- Branch,

ATM, micro ATM

▪ Male quick transactions at micro ATM

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• SHAKTI SAVINGS ACCOUNT

Shakti savings account is an account which comes with low minimum

balance and convenience to fulfill all banking needs. Following mentioned
are its features:

▪ A saving account with low minimum balance of Rs. 100

▪ Get Rs. 2 lakhs of online fraud cover and Rs. 1 lakh of personal
accidental insurance cover on debit card

• PARAM SAVINGS ACCOUNT

A simple savings account from IDFC bank which helps you in banking and
provides you with following features:

▪ Average quarterly balance of Rs. 1000

▪ Benefits include a Rs. 2lakhs of online fraud cover and Rs.1 lakh
of personal accident insurance cover

▪ Free debit cum ATM card ( yearly charges applicable)

• CUREENT ACCOUNT

Offers a wide range of current account that are best suited to carter to the
business needs ranging from Rs. 10000 to Rs. 1 lakhs average monthly
deposit limits.

• HOME LOAN

IDFC bank offers home loan from Rs. 5 lakhs to Rs. 5 crore on more than
57 countries at competitative interest rates.

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• PERSONAL LOAN

Offers personal loan to self employed and salaried individuals ranging

from Rs. 1 lakhs to Rs. 25 lakhs

• LOAN AGAINST PROPERTY

IDFC bank offers loan against property upto Rs. 5 crore wit repayment
tenure upto 65 years or retirement age.

• TWO WHEELER LOAN

IDFC bank offers two wheeler loan to salaried professional or self

employed individuals over 18 years of age with repayment tenure upto 5
years

• BUSINESS LOAN

IDFC bank offers business loan upto Rs. 40 lakhs with a repayment tenure
of upto 60 months

• VEHICLE LOAN

Offers commercial vehicle loan to proprietorships, partnerships,

companies upto 5 years .

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• FIXED DEPOSIT

IDFC bank offers fixed deposits with higher returns and no penalties for
senior citizens for early withdrawal

• RECURRING DEPOSIT

IDFC banks recurring deposit starts from Rs. 2000 per month with
minimum repayment tenure of 6 months

• DEBIT CARD

IDFC bank offers 5 types of debit cards with enhanced daily limits for
purchase and cash withdrawal

• SMS BANKING

SMS to 5676732 or 9389289960 from registered mobile number with the

number of transaction code for the service one wants to avail.

• MOBILE BANKING

Through mobile banking customers will be able to check account details,

mini statements, transfer funds, pay bills and lot more.

• NET BANKING

Through IDFC first net banking consumers can avail a variety of facilities
at the comfort of their own house.

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ORGANIZATIONAL STRUCTURE

NAME DESIGNATION

AASHISH KAMAT INDEPENDENT DIRECTOR

AJAY MAHAJAN HEAD

ANAND SINHA INDEPENDENT DIRECTOR

ANIDITA SINHARAY NON EXE. NON IND. DIRECTOR

BRINDA JAGIRDAR INDEPENDENT DIRECTOR

HEMANG RAJA INDEPENDENT DIRECTOR

PANKAJ SANKLECHA CHIEF FINANCIAL OFFICER

PRAVIR VOHRA INDEPENDENT DIRECTOR

RAJIV B LAL NON EXE. NON IND. DIRECTOR

SANJEEB CHAUDHARI INDEPENDENT DIRECTOR

SATISH GAIKWAD LEGAL HEAD AND COM. SECRATORY

SATISH GAIKWAD SECRATORY

SUNIL KAKAR NON EXE. NON IND. DIRECTOR

V VAIDYANATH CEO

V VAIDYANATH MANAGING DIRECTOR AND CEO

VISHAL MAHADEVIA NON EXE. NON IND. DIRECTOR

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THE PESTLE ANALYSIS

1) POLITICAL FACTORS:

The banking sector looks all powerful but it’s susceptible to a bigger giant:
the government. Government laws affect the state of the banking sector.
the government can intervene in the matters of banking whenever, leaving
the industry susceptible to political influence. This includes corruption
amongst the political parties, specific legislative laws such as labor law,
trade restrictions and political stability

2) ECONIMIC FACTORS:

The banking industry and the economy are tied. How income flows,
whether the economy is prospering or barely surviving during the times of
recessions, affects how much capital banks can access. Spending habits
and the reasons behind them affect when customer borrow or spend funds
at bank. Additionally, when inflation skyrockets, the bank experiences the
backlash. Inflation affects currency and its value and causes instability.
Foreign investors think twice before providing their funds when a
particular country’s currency value is high.

3) SOCIOCULTURE FACTORS:

Cultural influences, such as buying behaviors and necessities, affect how

people see and use banking options. People turn to banks for advice and
assistance for loans related to business, home, and academics. Consumers
seek knowledge from bank tellers regarding saving accounts, bank related
credit cards, investments, and more. Consumers desire a seamless banking
experience. And technology is developing to allow consumers to buy
products easier, without requiring assistance directly from banks.

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4) TECHNOLOGICAL FACTORS:

Once, it was expected to visit the local bank to make changes to financial
accounts. But not anymore, Technology is changing how consumers
handle their funds. Many banks offer a mobile app to witness accounts,
transfer funds, and pay bills on smart phones.

Smartphone’s can scan cheques, and the bank can process it from their
end, at their location. This change helps to save paper and the need to drive
directly to the branch to handle these affairs.

Debit cards are also changing. Chips have been implemented, requiring
users to insert their card into debit machines rather than swiping them.
Other countries, such as Canada, have implemented a “tap” option —
tapping the debit card onto the device, requiring no pin, for a transaction to
complete. These changes make it easier on the user to make purchases
without required intrusion from banks.

Even banks themselves are utilizing technology within the workplace.

Telecommunicating through virtual meetings is being embraced. It
replaces the need for in-person meetings.

5) LEGAL FACTORS:

The banking industry follows strict laws regarding privacy, consumer

laws, and trade structures to confirm frameworks within the industry. Such
structures are required for customers in the allocated country and for
international users.

6) ENVIRONMENTAL FACTORS:

With the use of technology — particularly with mobile banking apps —

the use for paper is being reduced. Additionally, the need to drive directly
to a branch to handle affairs is minimized as well. Many issues are taken
care of through mobile apps and online banking services. Consumers can
apply for credit cards online, buy cheques online, and have many of their
banking questions answered online or by phone. Thus, reducing individual
environmental footprints.

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THE SWOT ANALYSIS

1. Strengths of IDFC First Bank

• Growth in net profit with increasing profit margin (QoQ)

• Increasing profit for every quarter for past 3 quarters

• Company with zero promoter pledge

• Recent results: growth in operating profit with increase in operating profits

(YoY)

• Strong momentum: price above short, medium and long term moving
averages

2. Weakness of IDFC First Bank

• Red Flag: High Interest Payments Compared to Earnings

• Inefficient use of shareholder funds - ROE declining in the last 2 years

• Inefficient use of assets to generate profits - ROA declining in the last 2 years

• Red Flag: Downgrade by Credit Rating Agency

• Companies with High Debt

• Declining Net Cash Flow : Companies not able to generate net cash

• Book Value Per Share deteriorating for last 2 years

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3. Opportunities for IDFC First Bank

• Rising Delivery Percentage Compared to Previous Day and Month, Strong

Volume

• Stock with Low PE (PE < = 10)

• RSI indicating price strength

• Decrease in Provision in recent results

• Brokers upgraded recommendation or target price in the past three months

4. Threats for IDFC First Bank

• Increase in NPA in Recent Results

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PROBLEM STATEMENT: “A STUDY OF CUSTOMER SATISFACTION

OF IDFC FIRST BANK”
This Study will help us to understand the consumer’s satisfaction about banking
services and products. This study will help banks to understand, how a consumer
selects, organizes and interprets the Quality of service and product offered by banks.
The market is more aware and realistic about investment and returns from financial
products. In this background this study tries to analyse the customer satisfaction
towards banking services in general and IDFC FIRST BANK in particular.

LITERATURE REVIEW
CONSUMER RESEARCH IN DIFFERENT DISCIPLINES
A considerable body of literature exists on consumption, consumer behaviour and
consumer decision making process. Most of the consumer research focused on
adopter categories, habits, attitudes and intentions rather than on actually measuring
the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence
buying
behaviour.
The process can be depicted as follows: -
1. Need recognition- realization of the difference between the desired and the
current situation that serves as a trigger for entire process.
2. Search for information.
3. Pre purchase alternative evaluation.
4. Consumption (utilization of the procured option)
5. Post purchase alternative re-evaluation.
6. Divestment (disposal of the unconsumed product and it’s remnants)

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NEED FOR THE STUDY

The deeper the company understands of consumer’s needs and satisfaction, the earlier the
product or service is introduced ahead of competition, the greater the expected contribution
margin. Hence the study is very important. This study will help companies to customize the
service and product, according to the consumer’s need. This study will also help the
companies to understand the experience and expectations of the existing customers.

SCOPE OF THE STUDY

This study is limited to the consumers with in New Delhi city. The study will be able to
reveal the preferences, needs, satisfaction of the customers regarding the banking services, It
also help banks to know whether the existing products or services the are offering are really
satisfying the customers needs.

OBJECTIVE OF THE STUDY

• To have an insight into the attitudes and behaviours of customer.
• To find out the differences among perceived service and expected service.
• To produce an executive service report to upgrade service characteristics.
• To understand consumer’s preferences.
• To access the degree of satisfaction of the consumers

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RESEARCH METHODOLOGY
A descriptive study tries to discover answers to the questions who, what, when, where, and,
sometimes, how. The researcher attempts to describe or define a subject, often by creating a
profile of a group of problems, people, or events. Such studies may involve the collection of
data and the creation of a distribution of the number of times the researcher observes a single
event or characteristic (the research variable), or they may involve relating the interaction of
two or more variables. Organizations that maintain databases of their employees, customers,
and suppliers already have significant data to conduct descriptive studies using internal
information. Yet many firms that have such data files do not mine them regularly for the
decision making insight they might provide. Research simply means, “Search for
knowledge”. According to Roman and More, Research is “systematized effort to gain new
knowledge”. This descriptive study is popular in business research because of its versatility
across disciplines. In for-profit, not-for-profit and government organizations, descriptive
investigations have a broad appeal to the administrator and policy analyst for planning,
monitoring, and evaluating. In this context, how questions address issues such as quantity,
cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the
potential for drawing powerful inferences. A descriptive study, however, does not explain
why an event has occurred or why the variables interact the way they do.

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SAMPLE METHOD

Convenience sampling method is used for the survey of this project. It is a nonprobability
sample. This is the least reliable design but normally the cheapest and easiest to conduct. In
this method Researcher have the freedom to choose whomever they find, thus the name
convenience. Example includes informal pools of friends and neighbours or people
responding to a newspaper’s invitation for readers to state their position on some public issue.

SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 25
respondents were selected at random. All the 25 respondents were the customers of different
branches of IDFC FIRST BANK.

SAMPLING METHOD

A sample is a representative part of the population. In sampling technique, information is

collected only from a representative part of the universe and the conclusions are drawn on
that basis for the entire universe. A convenience sampling technique was used to collect data
from the respondents.

METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a
primary research instrument. Questionnaires were distributed to respondents and they were
asked to answer the questions given in the questionnaire. The questionnaires were used as an
instrumentation technique, because it is an important method of data collection. The success
of the questionnaire method in collecting the information depends largely on proper drafting.
So in the present study questions were arranged and interconnected logically. The structured
questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis
was done for each question’s response to reach into findings, suggestions and finally to the
conclusion about the topic.

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DATA COLLECTED:

Every decision poses unique needs for information, and relevant strategies can be developed
based on the information gathered through research. Research is the systematic objective and
exhaustive search for and study of facts relevant to the problem. Research design means the
framework of study that leads to the collection and analysis of data. It is a conceptual
structure with in which research is conducted. It facilitates smooth sailing of various research
operations to make the research as effective as possible.

PRIMARY DATA

Primary data are those collected by the investigator himself for the first time and thus they are
original in character, they are collected for a particular purpose. A well-structured
questionnaire was personally administrated to the selected sample to collect the primary data.

SECONDARY DATA

Secondary data are those, which have already been collected by some other persons for their
purpose and published. Secondary data are usually in the shape of finished products. Two
types of secondary data were collected for the preparation of the project work:

• Internal Data was generated from company’s brochures, manuals and annual reports

• External Data, on the other hand, was generated from magazines, research books, intranet
and internet (websites).

TYPE OF RESEARCH:

The present study is based on the type of research that is ‗analytical research ‘which includes
main purpose to analyse the different process, methodologies and procedures which have
been developed by RBI and IDFC FIRST BANK. Here researcher has the opportunity to
develop some new models and can do a lots of practical work on different types of models
which has been developed by RBI.

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LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that
some information might have been left out, however due care is taken to include all the
relevant information needed.

2. Sample size:

Due to time constraints the sample size was relatively small and would definitely have been
more representative if I had collected information from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend
to give misleading information.

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