A PROJECT REPORT ON

CORPORATE IDENTIFICATIO AND COMPETITION ANALYSIS

FOR

SUBMITTED BY PUSHKAR KUMAR ROLL NO. 08

TO

A.N.S.COLLEGE,BARH

CERTIFICATE This is to certify that PUSHKAR KUMAR pursuing BBA from A.N.S.COLLEGE,BARH has undergone management training for the duration 60 days. His project titled Corporate Identification and Competition Analysis Their Satisfaction level undertaken at HDFC Bank., PATNA is a bonafide work carried out in partial fulfillment of BBA in Business Administration from University of M.U,BODH-GAYA.

We wish him all the best.

Internal Guide ALOK KUMAR

Director DR.MADAN MURARI

DECLARATION

I, PUSHKAR KUMAR, hereby declare that the project entitled Corporate Idendification and Compettition Analysis Market Research on Current Account, With Reference to HDFC Bank LTD. has been personally done by me under the guidance of ALOK KUMAR in partial fulfillment of BBA during academic year-2010-13. All the data represented in this project is true & correct to the best of my knowledge & belief. This work has not been submitted for any other degree / diploma exam elsewhere.

DATE: -

PUSHKAR KUMAR

ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training.

At the outset I would like to take this opportunity to gratefully acknowledge the very kind and patient guidance I have received from my project guide Mr. Atul Malviya. Without his critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition, my internal guide Prof ALOK KUMAR Faculty A.N.S.COLLEGE,BARH, has critically evaluated my each step in developing this project report. I would like to extend my gratitude towards Dr.MADAN MURARI, Director, A.N.S.COLLEGE,BARH, for her technical and moral support required for the realization of this project report. Lastly, I would like to thank all the members of HDFC Bank and my colleagues who gave me fruitful information to finish my project.

PUSHKAR KUMAR

PREFACE
Summer Training is business organization in fuse among student a sense of critical analysis of the real managerial situation to which they are exposed. This gins them an opportunity to apply their conceptual theoretical & imaginative skills in a real life situations and to evaluate the results there of. HDFC is a name renowned not only in Housing but also in Banking and Insurance sector. HDFC Bank is now a brand image in private banking sector. While my two month project, I visited specialized area to find market potential of HDFC Bank on the presence of other public sectors as well as private sectors. Practical training through experts of HDFC Bank gave me actual input to fulfill my real aim. This report is the written account of what I learnt experienced during my training. I wish those going through it will not only find it real but also get useful information.

EXECUTIVE SUMMARY
Title of the ProjectCorporate Identification and Competition Analysis

Different objective behind conducting this projecto Identifying Target Customer.

o Customer Orientation towards Features available in HDFC Bank Current Account

products.
o Listing of the product preferences in Current Account. o Recommendation on Market potential For HDFC Bank in Current Account.

INTRODUCTION
The project was carried out for understanding the customer behavior in Current Account of HDFC Bank Pune branch and its market potential. HDFC Bank was established in the year 1994, they are old player in banking sector, The bank has two principle client segments customer and asset management. The bank follows values such as Integrity, teamwork, respect, professionalism, & Mission. The segment of bank we are considering here is- Corporate banking. The product out of which have chosen for research is Current Accounts. This research helps us in finding out the customers view regarding the product and Services offered by the HDFC bank and awareness by promotion and also identifying the the market potential of the product offered by the HDFC bank .

 ABOUT THE PROJECT

The project was carried out in Pune city with an objective of knowing satisfaction level of customer with bank services and do customers are aware about the different types of Current Account with various schemes, Services and different offers provide by the bank. The total sample size taken was one thousand (1000) from various market of the Pune. The research shows that the market potential for the bank is very good and so many customers are not aware of the services provided by the bank which are not provided by other banks. On the other hand we have also the existing customers of HDFC Bank who are satisfied with the working style of bank, but want continuous updates about the new service schemes and other products of bank. They want that bank should do promotional activity as Advertising. So that they can be updated while seating at home. The researcher used the method of questionnaire to know all feedback which is listed above.

RESEARCH METHODOLOGY Data source Primary Data: - It is collected through questionnaire, direct observation of customer, interview e.t.c. Sampling Plan Sampling Unit: -Self employed business man, Shop Owner Sampling size: - 1000 units. Sampling Technique: -Market Allocation. Data collection tools The questionnaires consisted of Multiple choice questions and

 Open ended questions

CONTENT 1. Introduction.
1.1 Introduction of the Sector 1.2 Introduction of the Company 1.3 List of Company Products

2. Research Objectives,.
3. Research Methodology

4. Limitations . 5. Data Collection................................................................................ 6. Data Analysis.. 7. Finding and Observation 8. Conclusion. 9. Recommendation 10. Bibliography 11. Annexure

 Questionnaire

COMPANY PROFILE

COMPLETE NAME OF THE COMPANY The Housing Development Finance Corporation Limited (HDFC Bank Ltd.) BUSINESS OBJECTIVE
The primary objective of HDFC 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. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

ORGANISATIONAL GOALS
HDFC's main goals are to (a) develop close relationships with individual households, (b) maintain its position as the premier housing finance institution in the country, (c) transform ideas into viable and creative solutions, (d) provide consistently high returns to shareholders, and (e) to grow through diversification by leveraging off the existing client base

SLOGAN We Understand Your World HISTORICAL DEVELOPMENT OF THE COMPANY-

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of ' HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

BUSINESS FOCUS
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

CAPITAL STRUCTURE
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB".

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DISTRIBUTION NETWORK

HDFC BANK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 761 branches spread over 327 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

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March 2010 Citied Branches ATMs 228 535 1323

March 2011 316 684 1605

March 2012 327 1229 2400

The Bank also has a network of about over

1977 networked ATMs across these

cities. Moreover, HDFC Bank 's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

TIMESBANK AMALGAMATION
In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

MANAGEMENT

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Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multibranch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

Centralized Processing Units Electronic Processing Straight Through

Derived Economies of Scale Reduced Transaction Cost Improve cost efficiency, Cross sell

Data Warehousing , CRM

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Innovative Technology Application

Provide products

new

or

superior

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer.

2009
Branches 43% ATM 40% Phone Banking 14% Internet 2% Mobile 1%

2011

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Branches 17% ATM 45% Phone Banking 12% Internet 25% Mobile 1%

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

BUSINESS MIX

Retail

Wholesale

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HDFC Bank is a consistent player in the private sector bank and have a
well balanced product and business mix in the Indian as well as overseas markets.

Customer segments (retail & wholesale) account for 84% of Net revenues ( FY 2008) Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments.

SEGMENTS HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agro-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates

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including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-ofsale (POS) terminals for debit / credit cards acceptance at merchant establishments.

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Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio

HDFC BANK PRODUCT AND CUSTOMER SEGMENT PERSONAL BANKING

Loan Product Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business Deposit Product Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers Investment & Insurance Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar

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banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan Cards Payment Services NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax Access To Bank NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch Network

Credit Card Debit Card Prepaid Card

-------------------------------Forex Services ------------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines

WHOLESALE BANKING
Corporate Small and Medium Enterprises Financial Institutions and Trusts

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 Funded Services Non Funded Services Value Added Services Internet Banking

Funded Services Non Funded Services Specialized Services Value added services Internet Banking

BANKS Clearing SubMembership RTGS submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts

NRI SERVICES
Accounts & Deposits Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Remittances North America UK Europe South East Asia Middle East Africa Others

Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs Investment & Insurances Mutual Funds Insurance Private Banking Loans Home Loans Loans Against Securities Loans Against Deposits

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 Portfolio Investment Scheme Payment Services NetSafe BillPay InstaPay DirectPay Visa Money Online Donation

Gold Credit Card Access To Bank NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network

BUSINESS STRATEGY
HDFC BANK mission is to be "a World Class Indian Bank", benchmarking international standards and best practices in terms of product

themselves against

offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. good relation with the customers is the main and prime objective of the bank. Continue to develop new product and technology is the main business strategy of the bank. Maintain

HDFC BANK business strategy emphasizes the following :

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Increase market share in Indias expanding banking quantity and delivering high quality customer service.

and Financial services

industry by following a disciplined growth strategy focusing on quality and not on Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

HUMAN RESOURCE
The Banks staffing needs continued to increase during the year particularly in the retail banking businesses in line with the business growth. Total number of employees increased from 14878 as of March31,2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its employees on a continuing basis, both on the job and through training programs conducted by internal and external faculty. The Bank has consistently believed that broader employee ownership of its shares has a positive impact on its performance and employee motivation. The Banks employee stock option scheme so far covers around 9000 employees.

CREDIT RATING
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit program has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible

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investment risk". CARE has also rated the bank's Certificate of Deposit (CD) program "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Bank's deposit program, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments

CORPORATE GOVERNANCE RATING

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

RECENT DEVELOPMENT

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The Reserve Bank of India has approved the scheme of amalgamation of Centurion

Bank of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23, 2008.All the branches of Centurion Bank of Punjab will function as branches of HDFC Bank
with effect from May 23, 2008. With RBIs approval, all requisite statutory and regulatory approvals for the merger have been obtained.

The combined entity would have a nationwide network of 1167 branches; a strong deposit base of around Rs.1,22,000 crores and net advances of around Rs.89,000 crores. The balance sheet size ofthe combined entity would be over Rs.1, 63,000 crores.

Merger with Centurion Bank of Punjab Limited

On March 27, 2008, the shareholders of the Bank accorded their consent to a scheme of amalgamation of Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity share of Rs.10/- each of HDFC Bank Limited for every 29 equity shares of Re. 1/- each held in Centurion

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Bank of Punjab Limited. This is subject to receipt of Approvals from the Reserve Bank of India, stock exchanges and Other requisite statutory and regulatory authorities. The shareholders Also accorded their consent to issue equity shares and/or warrants convertible into equity shares at the rate of Rs.1,530.13 each to HDFC Limited and/or other promoter group companies on preferential basis, subject to final regulatory approvals in this regard. The Shareholders of the Bank have also approved an increase in the authorized capital from Rs.450 crores to Rs.550 crores.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank is one of India's premier banks providing a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities using multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking. Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments. The bank's competitive strength clearly lies in the use of technology and the ability to deliver world-class service with rapid response time. Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality.As on March 31, 2008, the Bank had a network of 761 branches and 1,977 ATMs in 327 cities. For the year ended March 31, 2008, the Bank reported a net profit of INR 15.90 billion (Rs.1590.2crore), up 39.3%, over the corresponding year ended March 31, 2007. As of March 31, 2008 total deposits were INR 1007.69 billion,(Rs.100,769 crore) up 47.5% over the corresponding year ended March 31, 2007. Total balance sheet size too grew by 46.0% to INR 1,331.77 billion (133177 crore). Leading Indian and international Publications have recognized the bank for its performance and quality.

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Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds, life and general insurance and has established a leadership 'position'. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to Overseas Indians. On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab now operates on a strong nationwide franchise of 404 branches and 452 ATMs in 190 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Banks shares are also listed on the Luxembourg Stock Exchange.

Awards and Achievements - Banking Services

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal.

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It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally.

2007 One of India's "Most Innovative Companies"

Business Today-Monitor Group survey

'Corporate Best Bank' Award

Dun & Bradstreet American Express Corporate Best Bank Award 2007

'Best Corporate Social Responsibility Practice' Award

The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007

Best Bank Award in the Private sector category.

Outlook Money & NDTV Profit

2006

Best Bank in India.

Business Today

One of Asia Pacific's Best 50 companies.

Forbes Magazine

2005

Best Domestic Commercial Bank

Asiamoney Awards

"Most Customer Responsive Company - Banking and Financial Services

Economic Times - Avaya Global Connect Customer Responsiveness Awards

2004

One of India's Most Respected Companies

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Business World

Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe
Forbes Global

There have been some other proud moments as well:

o London-based Euro money magazine gave us the award for "Best Bank - India"

in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002
o Asia money magazine has named us "Best Commercial Bank in India 2002". o Leading Indian business magazine Business India named us "India's Best Bank"

in 2000.

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PROFILES OF DIRECTORS

Mr. Jagdish Capoor Mr. Aditya Puri Mr. Keki M. Mistry Mr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pande Mr. Ashim Samanta Mr. C M Vasudev Mr. Gautam Divan

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 Dr. Pandit Palande Mr. Paresh Sukthankar Mr. Harish Engineer

BOARD COMMITTEE
The Board has constituted committees of Directors to take informed decisions in the best interest of the Bank. These committees monitor the activities falling within their terms of reference. Various committees of the Board were reconstituted during the year due to induction of additional Director namely; Mr. Pandit Palande. The Board's Committees are as follows:

The Board's Committees are as follows:

Audit and Compliance Committee Compensation Committee Investors' Grievance (SHARE) Committee Risk Monitoring Committee Credit Approval Committee The Premises Committee

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 Nomination Committee Fraud Monitoring Committee Customer Service Committee

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INDUSTRY PROFILE
Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. A couple of decades later, foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered.

EARLY HISTORY
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time to finance industry, including speculative trading in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

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Structure of the organized banking sector in India. Numbers of banks are in brackets.

At this time, the Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very

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small banks operated by Indians, and most of them were owned and operated by particular communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

FROM WORLD WAR I TO INDEPENDENCE

The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

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Years

Number of banks that failed 12 42 11 13 9 7 274 710 56 231 76 209

Authorized capital (Rs. Lakhs) 35 109 5 4 25 1

Paid-up Capital (Rs. Lakhs)

1913 1914 1915 1916 1917 1918

POST-INDEPENDENCE
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

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In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July, 1969.

NATIONALISATION
By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquition and Transfer of Undertaking) Bill, and it received the presidential approval on 9th August, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, one of the nationalised banks, namely, New Bank of India was merged with Punjab National Bank. It was the first and only merger of

36

a Nationalised Bank into a Nationalised Bank, resulting in the reducing the number of Nationalised Banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATION
In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as Global Trust Bank (the first of such new generation banks to be set up)which later amalgamated with Oriental Bank of Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more.

CURRENT SITUATION
Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private

37

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively Introduction of many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure

38

Current Account Product

39

Account Types

Regular

AQB

Rs.10,000/-

Trade

AQB

Rs.40,000/-

Plus

AQB

Rs.100,000/-

Premium

AQB

Rs.25,000/-

40

Account features
All services for all customers- the only difference is pricing Provide payment solutions to the customer Payment leads to balance build-up Promotes closed-user-group (CUG) Try to grab maximum share of customer business

41

Account features

Features

HDFC Bank PLUS

HDFC Bank TRADE

PREMIUM Current Account

REGULAR Current Account

821, 200, 205, 208, 219, 220, 250,835, 831, 813, 811, 229, 226

Product Codes

825, 221, 227, 232, 830, 819, 826,279*, 843*

824, 256, 832, 820, 810

823, 202, 206, 833, 814, 827

Average Quarterly Balance (AQB)

Rs.100,000/-

Rs.40,000/-

Rs.25,000/-

Rs.10,000/-

NonMaintenance Charges (per Qaurter)

Less than Rs.50,000 Rs.6,000 Rs.1,200/Rs.50,000 & above Rs.1,500 Rs.900/Rs.750/-

Mode of calculating AQB

Average of daily closing balances of each day spread over a period of three months.

42

Account features

Chequebook

Features

HDFC Bank PLUS

HDFC Bank TRADE

PREMIUM Current Account

REGULAR Current Account

Payable- atpar Cheque Book Charges (Issued by Bank)

Payable- atpar

Payable- atpar

Payable- atpar

300 cheque leaves Free per month. Charges Rs 2/- per leaf beyond 300 leaves

200 cheque leaves Free per month. Charges Rs 2/- per leaf beyond 200 leaves

100 cheque leaves Free per month. Charges Rs 2/- per leaf beyond 100 leaves

Charges Rs 2/- per leaf

43

Account features

Remittance Transactions
PREMIUM Current Account REGULAR Current Account

Features Local cheques/A/c to a/c funds transfer transactions at home branch location (Payment /Collection)

HDFC Bank PLUS

HDFC Bank TRADE

Free

Free

Free

Free

Anynhwere Transactions (except Dahej) A/c to A/c Fund Transfer within HDFC Bank anywhere transactions Payments & Collections at HDFC Bank Locations

Free

Free

Rs.15/- per transaction

Rs.15/- per transaction

Free up to Rs.100 lacs per month, beyond which charges @ Rs. 0.50/1000, min Rs. 25

Free up to Free up to Rs.50 lacs per Rs. 25 lacs month, beyond per month, which charges Charges at @ Rs. Rs.1.50/1000, 0.50/1000, min Rs. 25 min Rs. 25

Charges at Rs.1.50/1000, min Rs. 25

44

Bulk Transaction Charges

All transactions are subject to a maximum of 250 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anyhwere clearing and transfer transactions

All transactions are subject to a maximum of 150 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied.Include s all Local / Anyhwere clearing and transfer transactions

All transactions are subject to a maximum of 100 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied. Includes all Local / Anyhwere clearing and transfer transactions

All transactions are subject to a maximum of 100 transactions per month, beyond which charges @ Rs.5/- per transaction would be levied.Include s all Local / Anyhwere clearing and transfer transactions

45

Account features

Cash Txn: Deposit

Features

HDFC Bank PLUS Free upto Rs.10 lacs per month or 50 transactions which ever is lower, Deposit in excess of Rs.10 lacs or 50 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within homebranch city subject to limit of Rs.100,000/per day)

HDFC Bank TRADE Free upto Rs.5 lacs per month or 40 transactions which ever is lower, Deposit in excess of Rs.5 lacs or 40 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.50,000/per day

PREMIUM Current Account Free upto Rs.3 lacs per month or 25 transactions which ever is lower, Deposit in excess of Rs.3 lacs or 25 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.25,000/per day)

REGULAR Current Account Free upto Rs.2 lacs per month or 25 transactions which ever is lower, Deposit in excess of Rs.2 lacs or 25 transactions will be charged @ Rs.2/- per Rs.1,000/-, minimum Rs.50/-. (Cash deposit at non-home branches within home branch city subject to limit of Rs.10,000/per day)

Cash DepositHome Branch Location

46

Cash Deposit -Non Home location

Maximum Rs.100,000/per day. Charges @ Rs. 3/1000, min Rs. 50

Maximum Rs.50,000/per day. Charges @ Rs. 3/1000, min Rs. 50

Maximum Rs.25,000/per day. Charges @ Rs. 3/1000, min Rs. 50

Not Allowed

47

Transaction Limits
P r o d u c te p o s i H o or m e D t B ra n c R e g u l a Sr lef N o lim T h i r d p aN r o y l i m t

P r e m i u Sm e l f N o lim T h i r d p aN r o y l i m t

T r a d e S e lf N o lim T h i p da r t yN o l i m r

P lu s

S e lf N o lim T h i r d p aN r o y l i m t

C a s h D e p o s it N o -hn o m e b r a n c N o i-h o t m ee l o c a t i o h n h h s a m e c i t -c i (t Iyn ) t r (a I n t e r c i t y ) y i t M a x i m u m R s . 1 N0 o 0t 0a 0l l op we e d , r it d a y p e r a c c o u n t ( ir r e s p e c t iv e o f s e lf o r t h ir d p a r t y ) i t M a x i m u m R s . 2 M5 ,a0 x0 i m u m r R s . 2 0 p e c c i t d a y p e r a c c o u n pt e r d ar y a p e o u n t ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e o f s t h ir d p a r t y ) t h ir d p a r t y ) i t M a x i m u m R s . 5 M0 ,a0 x0 i m u m r R s . 5 0 p e i t d a y p e r a c c o u n pt e r d a y p e r a c c o ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e o f s t h ir d p a r t y ) t h ir d p a r t y ) i t M a x i m u m R s . 1 M0 0a ,x0 i m 0u m R s . 1 0 i t p e r d a y p e r a c c po eu r n dt a y p e r a c c o ( i r r e s p e c t i v e o f (s i re r lef so pr e c t i v e o f s t h ir d p a r t y ) t h ir d p a r t y )

48

Cash Deposit Charges

C a s h D e p o s it N o n-h o m e b ra n c h in th eN o n-h o m e lo c a tio n s a m e c ity (In traity ) -c (In te rc ity )

P ro d u c t R e g u la r

D e p o s ito r H o m e B ra n c h

S e lf F re e u p to R s . 2 0 0 ,0 0 0 p e r m o n th o r 2 5N o t a llo w e d T h ird p a rty tra n s a c tio n s p e r m o n th . C h a rg e s R s .2 /1 0 0 0 , m in R s . - 0 / r tra n sc tio n 5pe a b e y o n d fre e lim its . (Irre s p e c tiv e o f c a s h d e p o s ite d b y s e lf o r th ird p a rty ) P re m iu m S e lf F re e u p to R s . 3 0 0 ,0 0 0 p e r m o n th o r 2 5R s . 3 /1 0 0 0 (Irre s p e c tiv e o f c a s h T h ird p a rty tra n s a c tio n s p e r m o n th . C h a rg e s R s .2 /1 0 0 0 , m in R s . - 0 / r tra n s a c tio n 5pe d e p o s ite d b y s e lf o r b e y o n d fre e lim its . ( s p e c tiv e o f c a s h th ird p a rty ) Irre d e p o s ite d b y s e lf o r th ird p a rty ) T ra d e S e lf F re e u p to R s . 5 0 0 ,0 0 0 p e r m o n th o r 4 0R s . 3 /1 0 0 0 (Irre s p e c tiv e o f c a s h T h ird p a rty tra n s a c tio n s p e r m o n th . C h a rg e s R s .2 /1 0 0 0 , m in R s . - 0 / r tra n s atio n 5pe c d e p o s ite d b y s e lf o r b e y o n d fre e lim its . (Irre s p e c tiv e o f c a s h th ird p a rty ) d e p o s ite d b y s e lf o r th ird p a rty ) P lu s S e lf F re e u p to R s . 1 0 ,0 0 ,0 0 0 p e r m o n th o r 4 0s . 3 /1 0 0 0 R (Irre s p e c tiv e o f c a s h T h ird p a rty tra n s a c tio n s p e r m o n th . C h a rg e s R s .2 /1 0 0 , m in R s . 5 - / e r tra n s a c tio n 0p d e p o s ite d b y s e lf o r b e y o n d fre e lim its . (Irre s p e c tiv e o f c a s h th ird p a rty ) d e p o s ite d b y s e lf o r th ird p a rty )

49

Account features
Features Cash WithdrawalHome Branch HDFC Bank PLUS Free at Home Branch Free cash withdrawals upto Rs.50,000/per day, beyond which charges @ Rs.2/1000, min Rs.50/(Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs. 50,000/per transaction.

Cash Txn: Withdrawal

HDFC Bank TRADE Free at Home Branch Free cash withdrawals upto Rs.50,000/per day, beyond which charges @ Rs.2/1000, min Rs. 50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs. 50,000/per transaction. PREMIUM Current Account Free at Home Branch Free cash withdrawals upto Rs.25,000/per day, beyond which charges @ Rs.2/1000, min Rs. 50/- (Only for incremental amount), Third party cash withdrawal allowed only up to maximum Rs.50,000/per transaction. REGULAR Current Account Free at Home Branch

Cash WithdrawalNon Home BranchIntracity & Intracity

Cash withdrawals charges @ Rs.2/1000, min Rs. 50 Third party cash withdrawal allowed only up to maximum Rs. 50,000/per transaction.

50

51

Competitive Advantage

Competitive Advantage
Plus Current Account Trade Current Account Premium Current Account Regular Current Account Free A/c to A/c Fund Free A/c to A/c Fund Transfer Transfer Free RTGS Free RTGS Cheaper A/c to A/c Fund Cheaper A/c to A/c Fund Transfer Transfer Cheaper RTGS payment / Cheaper RTGS payment / Collection Free Collection Free Cheaper DD/MC - Flat charges Free NEFT payment/Collections Cheaper DD/MC - Flat charges Free NEFT payment/Collections

Free DD/MC

Free DD/MC

Free NEFT payment/Collections

Free NEFT payment/Collections

Free Anywhere Free Anywhere Free Anywhere PAP cheque book Payment/Collection of Payment/Collection of Payment/Collection of Rs. Rs. 100 Lacs pm Rs. 50 Lacs pm 25 Lacs pm 300 cheque leaves free 200 cheque leaves free100 cheque leaves free per Convenience to W ithdraw per month per month month Cash from all branches Convenience to Convenience to Deposit Convenience to Deposit & Business Debit Card Deposit & W ithdraw & W ithdraw Cash from W ithdraw Cash from all Cash from all all branches branches branches Faster Collection of Faster Collection of Faster Collection of Faster Collection of Outstation cheques Outstation cheques Outstation cheques through Outstation cheques through through CMS through CMS CMS CMS Business Debit Card Business Debit Card Business Debit Card
52

RESEARCH METHODOLOGY
Bank basically means business and in business collection of raw data allows the managers to see the real scenario and then take a decision as per the data obtained. There are several implications in this statement: The bank gets a clear picture of the ULIP Market scenario. They can examine the available information in the form of data to make a decision They can even get a clear picture of the scenario or potential of the Savings Account and ULIPs of their banks in comparison to other banks. The information can only be gathered by data collection and then analyzing the available data. Therefore, it can be said that the data collection is an important part of the project.

Data Raw numbers

Information

The projected objectives were considered and as per the requirement a market survey was done. Procedure: The procedure that followed can be enlisted as below: Reading about the product Deciding on the objective to proceed. Developing Survey instruments Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire. Finally analyzing the data of various Geographic areas and trying to study with the other players.

53

Process adopted: 1.Gaining knowledge about the product: Reading about the product was the first step undertaken. This gave not only in depth knowledge about what is been offered by other players but also proved useful while developing the questionnaire. Steps in the Development of the Survey Instruments The main instruments required for survey was a well-developed questionnaire. The questionnaire development took place in a series of steps as described below:

Step 1

Research

objectives

are

being

transformed into information objectives.

Step 2

The Appropriate data collection methods have been determined

Step 3

The information required by each objective is being determined.

Step 4

Specific Questions/Scale Measurement format is developed.

Step 5

Question/Scale Measurements is being evaluated.

Step 6

Research

objectives

are

being

transformed into information objectives.

54

Step 7

The number of information needed is being determined.

Step 8 Step 9 Step 10

The questionnaire and layout is being evaluated.

Revise the questionnaire layout if needed.

The Questionnaire format is being finalized.

2.Customer Survey: The people play an important part as a clear perception of people about the product can be estimated and known. Studying the need levels of the people regarding the Insurance product can be observed. It was very useful in knowing about the requirements of the people.

3.Referred to brochures and websites of competitors: To understand the competitors product brochures and websites of various players were referred and a competitive analogy of all the information is been made.

55

Research Design: A two stage Research was conducted:

1. Secondary Research: Data was collected from websites and catalogues to understand the product of the different players

2. Primary Research: A Primary Research was conducted: The questionnaire was prepared for the companies and following areas covered: competing banks Features offered by different banks Consumer profile Satisfaction level Reasons for their invesment Desirable features of the product.

Sampling Plan: Elements: The target population of the study included the general population above the age of 21 yrs. It will further be based on Stratified Random Sampling.

Sample size: 100 people.

56

DATA COLLECTION

57

The final draft of the questionnaire (see Appendix) was prepared on the basis of the observations from the pilot study. These were then finally filled by 1000 customer, for the conclusive study. Finally the data collected was fed into the data analysis software- SPSS, to be analyzed using statistical techniques. Types of Primary Data collected: Socioeconomic Characteristics: socioeconomic characteristics are sometimes called states of being in that they represent the type of people. The factors on which we are working are occupation. Monthly transection is also an important parameter but it is difficult to verify. Although the amount of money that business unit earns in a month is an absolute, not a relative quantity but it is a sensitive topic in our society and it is difficult to determine. Attitudes/Opinions: Through the questionnaire we have tried to get hold of business preference, inclination and requirement. Attitude is an important notion in the marketing literature, since it is generally thought that the attitudes are related to the behavior of businessmen.

Motivation: Through the questionnaire we have tried to find the hidden need or want of businessmen and have tried to find if these people can be tapped as the potential customer for HDFC Bank.

58

 Behavior: Behavior concerns what subjects have done or are doing. Through the questionnaire we have tried to find out the behavior of the individuals regarding the product and their responses. If the responses are favorable then the person can be said to be our potential customer. The primary data serves as an important tool to measure the behavioral trend of the customer. It helps in answering some of the vital Questions. Obtaining the Primary Data: The data collection was primarily done through communication. Communication involves questioning respondents to secure the desired information, using a data collection instrument called questionnaire. The questions were in writing and so were the responses. Versatility:

It is the ability of a technique to collect the information on the many types of primary data of interest to marketers. It has also been found that some of the people do not answer truthfully to all the questions especially in the case of the personal details

59

DATA ANALYSIS

60

Question 4
Monthly Transection

70% 60% 50% 40% 30% 20% 10% 0% 05L- 20L 20L - 40L 40L - Above 05L- 20L 20L - 40L 40L - Above

61

Question 5 Do you have a Current Account?

3%

97%

Yes

No

62

Question 6 With Which Bank

Kotak Mahindra Bank, 3% Co- Operative Bank, 48%

HDFC, 33%

ICICI, 5% Nationalized, 31%

HDFC

ICICI

Nationalized

Co- Operative Bank

Kotak Mahindra Bank

63

1000

1200

200

400

600

800

Question 7

M in im um bi lity

Ac ce ss i

Which Factors do you consider for opening a Current Account

64
NE FT RT G S

Ba la nc e DD /P ay or de Fr r ee C he qu es De bi tC ar d Ca sh De po Ch si t eq ue Pi ck up Ne tB an k in M g ob ile Ba nk in At g Pe rC he qu e

Question 8
Which mode of transaction do you avail frequently?

Pay Order, 12%

DD, 32%

Cheque, 76%

Cheque

DD

Pay Order

65

Question 8
Which types of transaction do you made

Inter city, 33% Both, 52% Intra City, 15%

66

Question 10
your bank assist you in case of any problem

10%

90%

Yes

No

67

CONCLUSIONS
1.

Almost all the Banks offer similar features and facilities with their Savings accounts, therefore for existing customers of Current Account of any Bank to shift to another Bank; this is very rarely the criteria or reason. The level of service in terms of delivering whatever is promised, fast response in case of problems, is the most important benefit that the customers seek, from the Bank they have a Current Account with. Network reach and visibility of a Bank is a very important criterion for the customer while opening a Current Account. We can also conclude from our analysis that network reach in terms of Branches and ATMs is directly proportional Private Players. In case of a new customer, if a bank approaches it first for opening a Current Account with them, then there is a good chance for the bank of getting many future businesses and cross sales from the deal. to the market share in case of

2.

3.

4.

68

5. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market .

69

RECOMMENDATIONS FOR INCREASING MARKET SHARE OF HDFC BANK

1.

Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to the right customer so as to ensure a high degree of satisfaction among the customer. 3. The bank needs to make people aware about there products and the basic benefits they can derive out of it. And also the differential features of its savings account as compared to other banks.70% of the people did not even know about the concept, benefits and features of its saving accounts. The bank should also target small business unit for whom maintenance of the AQB is not a problem as this segment is not much penetrated.

4.

70

5.

Though the bank offers free doorstep banking once a day this fact is also not known to many customers or they still do not trust this service what ever the reason the bank can popularize this service to gain an edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic factors as a reason for banking with a particular bank, Standard Chartered needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its savings account.

71

LIMITATIONS

Some of the limitations of the project are listed as below: 1. The time period of just 2 months was the major limitation. 2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible. 3. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc. 4. To convince the people for a proper interviewing process is also difficult. 5. Compilation of data on competitor analysis was difficult due to nonavailability of correct information. 6. The figures have been taken as approximations.

72

BIBLIOGRAPHY

www.hdfc.com www.hdfcbank.com www.google.co.in www.wikipedia.com

73

ANNEXURE

74

1. Name of Organization____________________________________________________________ 2. Contact Person_________________________________________________________________ 3. Contact No.____________________________________________________________________ 4. Monthly Transaction_____________________________________________________________ 5. Do you Have Current Account? (a) Yes (b) No 6. If Yes Which bankso ICICI o HDFC o Kotak Mahindra Bank o Nationalized Banks_____________________________________________________ o Co-Operative Banks____________________________________________________ 7 Which Factors do you consider for opening a Current Account o o o o o o 8 9 Accessibility Minimum Balance DD/ Pay Order Free Cheque Debit Card Cash Deposit o o o o o o Cheque Pick up Net Banking Mobile Banking At Par Cheques NEFT RTGS

Which mode of transaction do you avail frequently? (a) Cheque ( b) DD (c) Pay Order (c) Both

Which type of transaction do you made (a) Inter city (b) Intra city

10 Does your bank assist you in case of any problem (a) Yes (b) No 11. What are the additional Benefits do you expect from a Current Account? ___________________________________________________________________________________ _________________________________________________________________________________

75

Cur ren
Date___________________ Place__________________ Signature

76