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TABLE OF CONTENTS

1. History of the organization and objective 2. Organization structure 3. Financial performance & Position 4. Personnel 5. Production 6. Marketing 7. Strength & weakness of organization 8. Suggestion 9. Any other point observed Chapter :- Introduction Chapter :- 2 Methodology Introduction of the project 1. The study and its objectives 2. The samples 3. The tools Chapter 3 Result And Discussion Chapter 4:- suggestion and discussion Chapter :5 conclusion References Annexure

History of the organization and objective

History of the organization and objective


Hdfc Bank in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Hdfc Bank , which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. In 1934 RBI came into effectiveness and became banker for banks. The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them. Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960. RBI (Reserve Bank Of India) The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 2,20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following:

To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.

ORGANIZATION STRUCTURE
THE ORGANIZATION:
HDFC Bank 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 from Housing Development Finance Corporation Limited (Bank), in 1994 during the period of liberalization of the banking sector in India.HDFC India was incorporated in August 1994 in the name of HDFC Bank Limited.HDFC India commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC India deals in varieties of products like home loan, standard life insurance, mutual fund, securities, credit cards, etc. HDFC has branch offices in all major cities in India like Calcutta, Chennai, Delhi, Bangalore, Hyderabad, and Ahmedabad apart from HDFC Mumbai Headquarter HDFC India :

'Trade Star', 2nd floor, 'A' Wing, Junction of Kondivita and M.V. Road, Andheri-Kurla Road, Andheri (East), Mumbai - 400 059. Tsel: (Board) 2822 0055 / 55516666 (Fax) : 2822 9998 / 2822 2414 Network : More than 468 branches over 212 cities across the country ATMs : The ATMs of HDFC India can be accessed by all domestic and international Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. Authorized capital: Rs. 450 crore

Paid-up capital: Rs. 282 crore

Equity: Holds 24.2%

listing: HDFC India has been listed on 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"

Organizational Structure
Chairperson (JagdishCapoor)

Managing Director (AdityaPuri) Executive director (Harish Engineer ) Executive director (PareshSukthankar)

Director (KekiMi stry)

Director (C.M Vasudev)

Director (PanditPala nde)

Director (Vineet Jain)

Director (ArvindPan de)

Director (Gautam Divan)

VISION STATEMENT
The vision of the Chairman and Board of Directors of the bank is to develop the bank into a much stronger bank with the higher level of modernization to handle the business volume in excess of Rs.10, 350 Crores and a profit level of more than Rs. 110 Crores by the end of March 31, 2007. Noble thoughts and high ideas of the team of management charged with dynamic spirit of action will take the bank to a greater height, achieving growth in strength and exhibit the bank as a model bank in the Banking industry. The bank has set itself a high standard, be it in operation, customer service or compliance to regulation.Technology up gradation and march towards Hi-Tech and Cyber Banking are the current mission of the bank.

MISSION STATEMENT
Our mission is to be a World Class Indian Bank, benchmarking ourselves against international standards and best practices in terms of product 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 Banks risk appetite. We are committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank has been recognized as a Best Bank in India' in the magazines, as well as surveys year on year.

Financial Performance & Position


Progress has a new address and that is India. The economic growth coupled with the robust gains in stock markets has brought with it prosperity and wealth in the hands of Indians. The number of millionaires in India has crossed the 100,000-mark. Salaries in India have witnessed a 13- 14 per cent growth, higher than that seen in China and other South East Asian countries. This means there is more money in the hands of the people that needs to be managed well, says Pralay Mondal, country head, retails assets and credit cards, HDFC Bank. This increase in wealth is fuelling the growth of the retail banking sector. The boom in the financial services market has led to the creation of vast armies of sales persons called direct sales agents (DSAs) for marketing the varied products. Another strategy used by some banks is to tap into their own large base of depositors who are offered multiple products depending on their needs.This helps to lower acquisition costs, lower default rates and higher deposits being held in banks by the customer. Banks are now targeting the rural consumers too. Banks are also offering micro-finance in order to fulfill their social obligations. If retail banking is a buzzword in India today, the reason is not far to see. After all, margins in retail banking are higher than corporate banking and the growth too is faster. Several banks that were not very active in retail banking are now eyeing this sector. Just the person retail bankers had been looking for banking sector has tremendous potential for growth. According to the PwC report, total domestic credit in India was around $400 billion compared to Chinas $ 2.8 trillion. But the new banks will have to compete with existing banks including nationalized ones, private sector banks, foreign banks, smaller institutions including co-operative banks and in some areas with non-banking finance companies too. The Indian banking system has come a long way since 1786 when the first bank was set up in India. In the pre- Independence days, initially banks were set up as private institutions with mostly European shareholders. Post-independence, most of the banks were nationalized in 1969. In the 1990s, following economic reforms, the banking sector was also liberalized. The entry of private banks and increasing competition resulted in nationalized banks becoming more

efficient and turning aggressive in the market place. The introduction of automated teller machines (ATMs), phone banking and internet banking by most banks has bid adieu to the serpentine queues seen earlier. 4.2) OLD AND NEW PLAYERS State Bank of India (SBI), a nationalized bank, is the largest bank in the country. The other major players are Allahabad Bank, Punjab National Bank, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, and Indian Bank, institutions that were set up in the early 1900s as private banks but were nationalized subsequently. Leading private sector banks like ICICI Bank and HDFC Bank leveraged technology to provide more efficient services, thus stealing a march over the older, nationalized banks. There exist many smaller banks such as co-operative banks that operate at the local level. Citibank and Standard Chartered Bank are among the biggest foreign banks in India; others include HSBC and Deutsche Bank. Other than the pure banking operations, many foreign banks also have other interests. For instance, Citi Financial is the largest NBFC in the country, with a network of 450 branches in 180 cities while French Bank SocieteGenerale, apart from banking activities, also has interests in a BPO SG Global Solution Centre in Bangalore and a car fleet management company ALD which has a presence in Mumbai, Delhi, Bangalore and Hyderabad. Eric Dhoste, chief executive and group country head, India, SocieteGenerale, says that the group employs more than 1,000 employees in India across all activities. There are many NBFCs in India that are hoping to metamorphose into banks, just as Kotak Mahindra Finance, formerly an NBFC, converted into Kotak Bank. GE Money has used the partnership route to grow its business in India. It is number two in the credit cards business and serves 3.3 million card customers with joint venture partner, State Bank of India in technology, markets and funds. A fast developing country like India also needs good infrastructure to sustain economic growth, leading to opportunities in the areas of infrastructure / project finance. Incidentally, the government too is keen to ensure that credit growth moves into the productive side, that is, industry and the rural economy. Thanks to the RBI, the Indian banking sector remains on track. When inflation threatened to derail the growth story, it enforced strict norms that helped to rein in inflation. The level of non performing assets (NPA) in Indian banks too is in keeping with internationally acceptable levels and is lower than in some South East Asian countries.

In anticipation of the growth in the coming years, existing players in India are drawing up major expansion plans. The Tatas are said to have lined up a massive investment of over a billion dollars over the next three to four years through a new company, Tata Capital. Anil Ambani wants Reliance Capital, one of the fastest growing financial sector companies, to be among the top three financial services companies, including banks, in the country. It plans to increase its employee strength from current 11,000 to 50,000 over the next two years. Due to regulatory restrictions, foreign banks can only grow organically today.

Personnel
Features & Benefits Maximum transactional benefits with faster mobilization of funds Average quarterly balance requirement of Rs. 10,00,000/Access to more than 761 branches Huge cost savings in inter-city transactions for payable-at-par cheque issuance, funds transfers, NEFT, RTGS or Demand Draft / Pay Order Faster collection of outstation cheques Free Intercity Cheque Collection & Payments within HDFC Bank Network (excluding Dame). Free Account to Account funds transfer between HDFC Bank accounts. Free payment and collection through RTGS Free payment and collection using NEFT (through Net Banking) Free Demand Drafts which can be issued from any HDFC Bank branch Free Pay Orders which can be issued from any HDFC Bank branch Convenience to withdraw and deposit cash at all our branches* Free Cash Deposit uptoRs. 100 laces per month across all home branches (subject to a maximum of 50 transactions per month and a per day limit of Rs.1,00,000/- on cash deposit at a non-home branch) Choice of local / Payable at Par Cheques. 500 leaves free per month Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance and transaction details, find out the status of your cheque or stop cheque payment.

PRODUCT PROFILE
1. REGULAR CURRENT ACCOUNT Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, you can access your account anytime, anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in your account. Regular Current Account requires you to maintain an average quarterly balance of Rs10,000

With a vast network of branches in cities all over the country, and access to a multitude of ATM's, you can keep track of all your transactions anytime.

Features & Benefits


Convenient inter-city banking : Deposit your local cheque in one branch of a city and have it credited to your account at a branch in another city or make payments across HDFC Bank locations using PAP cheque facility at a nominal rate Free payments and collections through NEFT Free RTGS collection. RTGS payment @ Rs.100/- per transaction Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Payable at par cheque book at nominal price. Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep.

The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour Phone Banking, NetBanking and MobileBanking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment.

2. PREMIUM CURRENT ACCOUNT

Your business needs a partner who can manage your finances while you concentrate on growing your business. You can avail benefits of inter-city banking account with Premium Current Account, which requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs.25 Lacs per month. A Current Account with the benefits of accessing your account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM.Enter into a profitable relationship and access all the privileges flowing your way.

Features & Benefits


Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to Rs.25 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/ Free NEFT Transactions. Free RTGS collection. RTGS payment @ Rs.100/- per transaction. Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions. Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/and can be issued from any HDFC Bank Branch. 100 "At Par" cheque leaves free per month Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency. Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking to access your account.

3) TRADE CURRENT ACCOUNT

In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives you the power of intercity banking with a single account. From special cheques that get treated at par with local ones in any city where we have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lakhs per month, our priority services have become the benchmark for banking efficiency. Trade Current Account requires you to maintain an average quarterly balance of Rs. 40,000.

Features & Benefits


Free Account to account funds transfer between HDFC Bank accounts. Free RTGS/NEFT Transactions. Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch. Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to Rs.50 lacs per month. Convenience to withdraw & deposit cash at all our branches* 200 "At Par" cheque leaves per free month . Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment.

4. PLUS CURRENT ACCOUNT


In today's fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city banking with a single account and access to more than 327 cities. From special cheques that get treated at par with local ones in any city where we have a branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, our priority services have become the benchmark for banking efficiency. Plus Current Account requires you to maintain an average quarterly balance of Rs. 100,000. Read on to know the powerful plus points of the HDFC Bank Plus Current Account.

Features & Benefits


Free Account to account funds transfer between HDFC Bank accounts Free payment and collection through RTGS. Free payment and collection using NEFT (through Netbanking) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch.

Free anywhere collection & payment transactions (clearing) within HDFC Bank branch network (except Dahej), up to Rs.100 lacs per month.

Convenience to withdraw & deposit cash at all our branches* 300 "At Par" cheque leaves free per month. Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM!

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance & transaction details, find out the status of your cheque or stop cheque payment

5. FLEXI CUURENT ACCOUNT

Tired of static transaction limits during peak seasons? HDFC Bank Flexi Current Account is the answer to your changing banking needs during peak seasons. With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in your Current Account. So, during peak seasons, you get the benefit of higher transaction limits due to the higher average balances maintained in your account. Whats more, during lean seasons, you need not bother about maintaining huge balances to enjoy high transaction limits, which you anyway may not need. Flexi Current Account requires you to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000.

Features & Benefits Enjoy dynamic free limits on Intercity Payments, Collections & Funds Transfer as well as Cash Deposit at home location branches based on the AMB maintained* For example, you maintain an AMB of Rs.2,00,000/- in a particular month. Your dynamic free transaction limits for that month would be as per the following table:

Transaction Cash Deposit at Home Branch Location

Dynamic Free Limits* Rs. 24,00,000 in that particular month

Anywhere Payments, Collections & Funds Transfer Free up to Rs.1,00,00,000/- in that (except Dahej) particular month

Pay your vendors on a real time basis using Real Time Gross Settlement (RTGS) available across 23,000 Bank Branches*. Whats more, payments and collections through RTGS are completely free!

Make and receive remittances to & from your vendors & customers across 20,000 + Bank Branches of more than 50 Banks through Net Banking using National Electronic Fund Transfer (NEFT), Absolutely Free!

Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank Branch*

Convenience to withdraw and deposit cash at all our branches*. Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations as well as Outstation Cheque Collection at HDFC Bank Locations

InstaAlert service- receive updates on your account as and when the select transaction happens all this without visiting the Branch or ATM!

Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance and transaction details, find out the status of your cheque or stop cheque payment.

HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bankwill arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.

6. MAX CURRENT ACCOUNT

Presenting maximum benefits and minimum hassles for you with Max Current Account! With a Rs. 5 lakhs average quarterly balance requirement, we present to you a world of privileges that helps your business expand and grow. Features like maximum free transaction limits including other beneficial features on this current account truly enhances your business potential to the Maximum.

7. APEX CURRENT ACCOUNT

The top position is always the coveted position. With the Apex current account, take your business to a new high. On maintaining an average quarterly balance of Rs. 10 Lakh, account makes sure you make the most of every business opportunities coming your Unlimited, free, anywhere Banking experience at the APEX is reserved for you. this way.

Marketing
LITERATURE REVIEW 4.1) RETAIL BANKING: THE NEW BUZZWORD Progress has a new address and that is India. The economic growth coupled with the robust gains in stock markets has brought with it prosperity and wealth in the hands of Indians. The number of millionaires in India has crossed the 100,000-mark. Salaries in India have witnessed a 13- 14 per cent growth, higher than that seen in China and other South East Asian countries. This means there is more money in the hands of the people that needs to be managed well, says Pralay Mondal, country head, retails assets and credit cards, HDFC Bank. This increase in wealth is fuelling the growth of the retail banking sector. The boom in the financial services market has led to the creation of vast armies of sales persons called direct sales agents (DSAs) for marketing the varied products. Another strategy used by some banks is to tap into their own large base of depositors who are offered multiple products depending on their needs.This helps to lower acquisition costs, lower default rates and higher deposits being held in banks by the customer. Banks are now targeting the rural consumers too. Banks are also offering micro-finance in order to fulfill their social obligations. If retail banking is a buzzword in India today, the reason is not far to see. After all, margins in retail banking are higher than corporate banking and the growth too is faster. Several banks that were not very active in retail banking are now eyeing this sector. Just the person retail bankers had been looking for banking sector has tremendous potential for growth. According to the PwC report, total domestic credit in India was around $400 billion compared to Chinas $ 2.8 trillion. But the new banks will have to compete with existing banks including nationalized ones, private sector banks, foreign banks, smaller institutions including co-operative banks and in some areas with non-banking finance companies too. The Indian banking system has come a long way since 1786 when the first bank was set up in India. In the pre- Independence days, initially banks were set up as private institutions with

mostly European shareholders. Post-independence, most of the banks were nationalized in 1969. In the 1990s, following economic reforms, the banking sector was also liberalized. The entry of private banks and increasing competition resulted in nationalized banks becoming more efficient and turning aggressive in the market place. The introduction of automated teller machines (ATMs), phone banking and internet banking by most banks has bid adieu to the serpentine queues seen earlier.

4.2) OLD AND NEW PLAYERS State Bank of India (SBI), a nationalized bank, is the largest bank in the country. The other major players are Allahabad Bank, Punjab National Bank, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, and Indian Bank, institutions that were set up in the early 1900s as private banks but were nationalized subsequently. Leading private sector banks like ICICI Bank and HDFC Bank leveraged technology to provide more efficient services, thus stealing a march over the older, nationalized banks. There exist many smaller banks such as co-operative banks that operate at the local level. Citibank and Standard Chartered Bank are among the biggest foreign banks in India; others include HSBC and Deutsche Bank. Other than the pure banking operations, many foreign banks also have other interests. For instance, Citi Financial is the largest NBFC in the country, with a network of 450 branches in 180 cities while French Bank SocieteGenerale, apart from banking activities, also has interests in a BPO SG Global Solution Centre in Bangalore and a car fleet management company ALD which has a presence in Mumbai, Delhi, Bangalore and Hyderabad. Eric Dhoste, chief executive and group country head, India, SocieteGenerale, says that the group employs more than 1,000 employees in India across all activities. There are many NBFCs in India that are hoping to metamorphose into banks, just as Kotak Mahindra Finance, formerly an NBFC, converted into Kotak Bank. GE Money has used the partnership route to grow its business in India. It is number two in the credit cards business and serves 3.3 million card customers with joint venture partner, State Bank of India in technology, markets and funds. A fast developing country like India also needs good infrastructure to sustain economic growth, leading to opportunities in the areas of infrastructure / project finance. Incidentally, the

government too is keen to ensure that credit growth moves into the productive side, that is, industry and the rural economy. Thanks to the RBI, the Indian banking sector remains on track. When inflation threatened to derail the growth story, it enforced strict norms that helped to rein in inflation. The level of non performing assets (NPA) in Indian banks too is in keeping with internationally acceptable levels and is lower than in some South East Asian countries. In anticipation of the growth in the coming years, existing players in India are drawing up major expansion plans. The Tatas are said to have lined up a massive investment of over a billion dollars over the next three to four years through a new company, Tata Capital. Anil Ambani wants Reliance Capital, one of the fastest growing financial sector companies, to be among the top three financial services companies, including banks, in the country. It plans to increase its employee strength from current 11,000 to 50,000 over the next two years. Due to regulatory restrictions, foreign banks can only grow organically today.

STRENGTH & WEAKNESS OF ORGANIZATION


STRENGTHS 1. HDFC is the strongest and most venerable play on Indian mortgages over the long term. The management of the bank is termed to be one of the best in the country. 2. HDFC has differentiated itself from its peers with its diversified network and revamped distribution strategy 3. HDFC has been highly proactive in passing on the cost and benefit to customers. 4. Besides the core business, HDFCs insurance, AMC, banking, BPO, and real estate private equity businesses are also growing at a rapid pace and the estimated value of its investments/subsidiaries explains ~30% of HDFCs market capitalization. 5. High degree of customer satisfaction. 6. Lower response time with efficient and effective service. 7. Dedicated workforce aiming at making a long-term career in the field. 8. Products have required accreditations. 9. Superior customer service vs. competitors 10. Large share of low-cost deposits, higher net interest margin 11. Better quality of assets, NPA of 0.4 per cent 12. Free float available, FIIs can buy its stock 13. Higher profitability WEAKNESSES 1. High dependence on individual loans. 2. Major stake held by American financial groups which are under stress due to economic slowdown. 3 .Customer service staff needs training. 4. Processes and systems, etc need to be better managed 5. Management cover insufficient. 6. Sectoral growth is constrained by low unemployment levels and competition for staff 7. Marginal international presence 8. No next line of leadership 9. Not very aggressive in M&A space, growing only organically 10. Possible takeover target

Suggestion
The study is useful to HDFC Bank because with the use of the report it can compare itself with other banks and also do some modifications in its services and charges so as to compete with the competitors in both short as well as long run. The study is useful for student as he gains knowledge about various services of bank, the working of the bank and also about the competitors of the bank, which plays an important role in the marketing and implementation of the strategy.

Chapter:-1 Introduction

INTRODUCTION

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 RBIs liberalization 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 as a scheduled Commercial Bank in January 1995.

Promoter HDFC Bank is Indias 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 a 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 bank in the Indian environment. Business Focus HDFC Banks mission is to be a world class Indian Bank. The banks aim is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services in the segment that the Bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite. Capital Structure The authorized capital of HDFC Bank is Rs.450crore (Rs.45 Billion). The paid up capital is Rs.282crore (Rs.28.2 Billion). The HDFC group holds 24.4% of the banks equity while about 13.2% of the equity is held by the depository in respect of the banks issue of American Depository shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF) and Indocean Financial Holding Ltd, Mauritius (IFHL), both fund advised by J. P. Morgan Partner, formerly Chase Capital Partners, together hold about 5.5% of the banks equity.

Times Bank Amalgamation As 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. Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over cities across the country. All branches are linked on an online real-time basis. Customers in 80 locations are also serviced through Phone Banking. The Banks expansion plans take into account the need to have presence in all major industrial and commercial centers where its corporate customer are located as well as the need to build a strong retail customer base for both deposits and loan products. Management Mr.Jagdish Kapoor took over as the banks Chairman in July 2001. Prior to this Mr. Kapoor was the 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 Citibanks operations in Malaysia. The Banks board of Director is composed of eminent individual with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Technology HDFC Bank operates in a highly automated environment in term of information technology and communication systems. All the banks branches have connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). Business Profile HDFC bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional branch banking on the retail side. The bank has three key business areas: -

A) Wholesale Banking Services:The banks target market is primarily large. It covers blue-chips manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the bank provides a wide range of commercial and transactional banking services, included working capital finance, trade services, transactional services, cash management, etc.

B) 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 step window for all his/her banking requirements. The products are backed by world-class services 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. C) Treasury Operations:Within this business, the bank has three main product areas Foreign Exchange and Derivatives, Loan Currency Money Market & Debt Securities and Equities.

With the liberalization of the financial market in India, corporate need more sophisticated risk management information, advice and product structure. Rating HDFC Bank has its deposit programs rated by two rating agencies Credit Analysis & Research Limited (CARE) Fitch Rating India Private Limited.

Corporate government Rating The Bank was one of the first fort companies which subjected itself to corporate governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). Awards and Accolades Over the years, HDFC Bank has received recognition and awards from various leading organization and publication, both national and international. HDFC Bank was selected as the Best Bank-India 1999, Best Domestic Bank India 2000, Best Bank India 2001, Best

Bank 2002 by Euro money, Best Domestic Commercial Bank India 1999, Best Domestic Commercial Bank 2000, Best Domestic Commercial Bank India 2001and Best Domestic Commercial Bank India 1999, Best Local bank In India 2002, Best Local bank In India 2003 by Finance Asia. In the October 2000 issue, Forbes Global selected HDFC Bank amongst the top 20 in the Forbes listing of the worlds best small companies. Closer home, HDFC Bank was selected for The Economic Times Award Corporate Excellence for Emerging Company of the Year 2000-01 and as Business Indias Best Bank for the year 2000. For its use of information technology the bank has been recognized as a Computer world honors Laureate and awarded the 21st Century Achievement Award in 2002 for the Finance, Insurance & real Estate Category by computer world, Inc., USA. HDFC bank was awarded the Best IT User award 2003 (Category: Banking) as per of the IT User Awards 2003 conferred by economictimes.com &Nasscom. HDFC Bank is one of Forbes Global "Best Under a Billion In its issue dated October 27th, 2003, Forbes Global magazine has named HDFC Bank as one of the "Best under a Billion, 200 Best Small Companies for 2003". These 200 successful companies outside the US were selected from some 19,000 companies from Asia & Europe with annual sales below US$1 billion, based on profitability, earnings and sales growth. Forbes Global also talked to fund managers, analysts and industry watchers to spot these 200 best companies with brief operating histories but promising futures. HDFC Bank named Best Bank in India for 2003 HDFC Bank, one of Indias leading private sector banks, has been named the Best Bank in India for the year 2003 in a survey conducted by KPMG and leading business magazine, Business Today.

Chapter :- 2 Methodology

Methodology
METHODOLOGY OF STUDY: Research can be defined as a systemized effort to gain new knowledge. A research is carried out by different methodologies which have their own pros and cons. Research methodology is a way to solve research in study and solving research problems along with logic behind them are defined through research methodology. Thus while talking about research methodology we are not only talking of research methods but also consider the logic behind the methods. We are in context of our research studies and explain why it is being used a particular method or technique and why the others are not used. So that research result is capable of being evaluated either by researcher himself or by others.

RESEARCH METHOD: Research has its special significance in solving various operational and planning problems of business and industry. Research methodology is a way to systematically analyze the research problem. ASSUMPTIONS: 1. It has been assumed that sample of hundred represents the whole population. 2. The information given by the customer is unbiased.

COLLECTION OF DATA: This research is solely based on primary research done by means of questionnaires targeted to respondents who primarily belong to the business and service sector. During the entire research work data of around 100 respondents have been collected. The sample size is 100. a. Sampling Methods: A sample is the representative of the populations which will predict the behaviors of the whole universe b. The sampling size put under 2 categories: Probability Sampling and Non Probability Sampling.

EXECUTION OF PROJECT It is very essential in the research process to know the accuracy of the findings which depends on how systematically the study has been carried out so that it can make sense. We have executed the project after prior discussion with our guide and structured in the following steps: a. Preparation of a questionnaire. b. The focal point of the designing the questionnaire was to comprehend the current investment scenario with respect to tax planning part. c. This questionnaire was primarily aimed to respondents who belong to the service and business class people. d. The questionnaires were discussed through personal interface with the respondents.

LIMITATIONS OF STREAMLINING RESULTS:

Every work has its own limitations. Limitations are extent to which the process should not exceed. The following limitations for the project are:

1. Duration of project was not enough to make our conclusion on such a vast subject. A time constraint has also become a major limitation.

2. The sample size taken for drawing the conclusion was not sizeable.

3. Investor ignorance was faced during discussions with respondents.

4. As the topic is related with their income part so respondents were a bit towards disclosing their true feelings.

reluctant

CHAPTER 3

RESULT AND DISCUSSION

RESULT AND DISCUSSION


1. What is the type of your business?

Type Of Business Trading Manufacturing Service industry Others Total

No. of Customers 140 120 50 40 350

Interpretation: -

During the survey we found that most of them have trading business. 34% people are having manufacturing business. Very few people whom we surveyed are from service industry. So from this graph it is clear that trading and manufacturing is the main customer of our survey.

Q2. What is the annual turnover of the Business?

Annual turnover Below 36 lakhs 36 Lakhs 2 crore 2 crore 15 crore Above 15 crore Total

No. of Customers 185 150 10 5 350

Interpretation: -

It means the major numbers of customers are having their annual turnover between 2 crore to 15 crore i.e. 53 %, whereas only 1% customers are having their annual turnover above 15 crore.

Q3. Do you have any current Account with any bank?

Opinion Yes No Total

No. of Customers 345 5 350

Interpretation: -

During survey we found that most people who are in trading and manufacturing business generally preferred to have current account. 99 % people have current account. Some people who are not aware about banking services are not having current account.

Q4.Which Bank is you using currently?

Name of the Bank HDFC Bank SBI Bank ICICI Bank AXIS Bank Others Total

No. Of Customers 91 102 79 37 36 345

Interpretation: In my survey we found that most customers want to open current account in SBI Bank which is 30% and 26 % people says that they have their account with HDFC Bank and least percentage of other cooperative banks.

7. On what basis you have selected the Bank to open your current account?

Criteria AQB Annual Turnover Well-located Internet Banking Mobile Banking Various Charges Others

No. of Customers 120 135 55 40 25 65 20

Interpretation: As per the chart 29% customers decide to open current account as per there annual turnover and also they prefer AQB and Features & Benefits.

8. Are there any other facilities that you would like to have?

(a) Yes

(b) No

Criteria Yes No Total

No. of Customers 120 245 345

As per the chart 67% customers are happy with the services provided by banks and 33% are looking to add few more services like cash delivery and special desk to attend special customers.

9. If you get a chance to switch from your existing bank, Will you switch?

(a) Yes

(b) No

Criteria Yes No Total

No. of Customers 92 253 345

Interpretation: -

As per the chart 73% customers are not willing to change their service providers and 27% are looking to change their service providers to get better services and features.

Chapter 4:Suggestion

SUGGESTIONS
Continuous interaction with the customers is necessary in order to continue with relationshipBuilding activities for long term prospective. The bank should come up withmore branches in other locations in GWALIOR city. The bank should open more ATM networks. To increase the number of customers HDFC Bank should also offer some products for small business. (For example- Zero balance savings and current account.) It is seen that most of the customers are not aware of products and servicesoffered by HDFC Bank. Thus HDFC Bank should pay some attention onAdvertisement. HDFC Bank has very less sales force than other banks, this is a reason that customers have lack of attention towardsHDFC Bank. This part can be improved by increasing the sales force. Account opening process in HDFC Bank is comparatively complicated andTimeconsuming in case of current accounts HDFC Bank should consider time factor as it is very important.

CHAPTER :5 CONCLUSION

CONCLUSION
HDFC Bank has a strong brand name in the GWALIOR city market. The people of GWALIOR city are good in investment part and most of them go for Fixed Deposits and Life Insurance rather investing in Mutual fund products. Thus there is a need to convert the people in mutual fund and credit cards for increasing profitability of bank. HDFC Bank has always sought profitable customers and generated profit from them and taken steps by converting the non-profitable customer to profitable customers. Customers can be pulled into profitability band when the customer is satisfied with the product and services which he is using. Customer satisfaction plays an important role as customers are satisfied they will look for some other product. At this state Relationship Manager is very important who can suggest the customer which product to use with reference to his need. They must maintain mutual relationship between the relationship manager and customer. CRM lead to better understanding of all aspects of customer behaviour regarding issues and benefits offered by a company and helps differentiate itself from others.

The project was full of learning and experiments and provides me with a great knowledge about banking sector. I have interacted with a lot of people personally during these two months. A study of Company profile and Product profile was done before starting my project which helps me a lot while interacting with the people. If the interviewer is not having adequate knowledge of the company and product profile then he will not be able to get the desired information from the respondent. During the course of time, I tried to get all the objective of the project to be fulfilled.

References

1) Information regarding HDFC bank is to be taken from www.hdfcbank.com 2) Information regarding govt. policy is to be taken from www. rbi.org.in Others materials a) The project of INDIA BANKING PROJECT 2010 by McKinney &company b) The project of The Indian Banking sectors, on road to progress by G.H.Deolakar(managing director of state bank of India)

Annexure
Sir/madam We are conducting market assessment of HDFC product with special reference to current account at Gwalior. We would like to include your opinion for this purpose. NAME OF THE COMPANY : . CONTACT PERSON DESIGNATION CONTACT NUMBER ADDRESS : . : . : .. : ............

1. What is the type of your Business? (a) Trading (c) Service Industry 2.What is the Annual Turnover of your Business? Annual Turnover: Rs .. 3. Do you have any current Account with any bank? (a) Yes 4.Which bank are you banking with? (a) HDFC Bank (c) Axis bank (e) Others (b) No (b) Manufacturing (d) Others

(b) (d)

SBI ICICI Bank

5. How satisfied are you with the services provided by the bank? a) Very satisfied b) Satisfied c) Somewhat satisfied d) Dissatisfied

6.Do you think that the bank caters all your banking needs? (a) Yes (b) No 7. On what basis you have selected the Bank to open your current account? (a) (b) (c) (d) (e) (f) (g) AQB Maintenance Charges Annual Turnover of the company Well-located Internet Banking Mobile Banking Various Charges Others..

8. Are there any other facilities that you would like to have? (a) Yes (b) No

If Yes, then mention. .. 9. If you get a chance to switch from your existing bank, Will you switch? (a) Yes (b) No

If Yes, then why.. .. We are grateful for your co-operation. Thanking you.

Date:

Signature:

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