HDFC Bank Report

HDFC Bank
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Sustainability
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Operational
Excellence
Product Leadership
2016 Summer Internship Report

On
HNW Scoping and Market
Survey of Middle Segment
Traders
Submitted by
Indra Mani Tripathi
MBA UBS( 2015-2017)
DECLARATION
I undersigned INDRA MANI TRIPATHI student of MBA declare that I have done
the project on HNW Scoping and Market Survey has been personally done by me
under the guidance of Mr. GAGAN SHARDA (Branch Manager, HDFC Bank) in
partial fulfillment of MBA Program- during academic year-2015-17. All the data
represented in this project is true & correct to the best of my knowledge & belief.
I also declare that this project report is my own preparation and not copied from
anywhere else.
Date 06-07-2016
Signature
INDRA MANI TRIPATHI
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, thanks and regards
towards all of those who have directly or indirectly helped me in the successful
completion of this project.
I present my sincere thanks to Mrs. Bharti Soni (Head HR, HDFC Bank) who allowed
me to take training at HDFC BANK.
I would also like to thank HDFC bank Staff for their wonderful support & inspirable
guiding.
I am grateful to all faculty members of UBS, Chandigarh and my friends who have
helped me in the successful completion of this project.
Last but not the least I am indebted to my parents and family who provided me their
time, support and inspiration needed to prepare this report.
Date: 06-07-2016
Place: CHANDIGARH
Signature
Contents
1. Introduction
1.1 History of Banking1
1.2 Mission, Vision & Business Strategy...6
1.3 Board of Directors and Business Heads....7
1.4 Awards...9
1.5 Integrated financial Service..10
1.6 Business Statement...10
1.7 Objective of Study ...12
1.8 Problem Definition12
1.9 Importance of Study..13
2. HDFC Bank Products for middle segment traders..14
3. Review of Literature.22
4. Research Methodology
4.1 Research Design.26
4.2 Sample26
4.3 Sampling.26
4.4 Data Collection...26
4.5 Data Analysis..26
5. Analysis
5.1 Descriptive Analysis...28
5.2 Inferential Analysis.36
6. Findings
6.1 Conclusion..40
6.2 Managerial Implication...41
6.3 Limitation...42
References......43
Annexure44
Introduction
1.1 History of Banking
Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700s
and 1800s, with many banks created to deal with increasing trade.
The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which
extended throughout Europe, Asia and Africa.
Modern banking began in Venice. The word bank comes from the Italian word ban
co, meaning bench, because moneylenders worked on benches in market places. The
bank of Venice was established in 1171 to help the government raise finance for a
war.
At the same time, in England merchant started to ask goldsmiths to hold gold and
silver in their safes in return for a fee. Receipts given to the Merchant were sometimes
used to buy or sell, with the metal itself staying under lock and key. The goldsmith
realized that they could lend out some of the gold and silver that they had and charge
interest, as not all of the merchants would ask for the gold and silver back at the same
time. Eventually, instead of charging the merchants, the goldsmiths paid them to
deposit their gold and silver.
The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900s round the world,
banks merged into larger and fewer groups and expanded into other country.
Banking Structure in India
In todays dynamic world banks are inevitable for the development of a country.
Banks play a pivotal role in enhancing each and every sector. They have helped bring
a draw of development on the worlds horizon and developing country like India is no
exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle
for moving finance from those who have surplus money to (however temporarily)
those who have deficit. In everyday branch terms the banks channel funds from
depositors whose accounts are in credit to borrowers who are in debit.
HDFC Bank: Market Survey
Page 1
Without the intermediary of the banks both their depositors and their borrowers would
have to contact each other directly. This can and does happen of course. This is what
has lead to the very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money.
But a substantially high rate of interest was charged which made borrowing of money
out of the reach of the majority of the people so there arose a need for a financial
intermediate.
The Bank have developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to each
other, the objective being to lend money, which is the profitable activity of the three.
Taking deposits generates funds for lending and money transfer services are necessary
for the attention of deposits. The Bank have introduced progressively more
sophisticated versions of these services and have diversified introduction in numerable
areas of activity not directly relating to this traditional trinity.
Page 2
Indian Banking System

Reserve Bank of India
Non-Schedule
Banks
Schedule Banks
State co-op
Banks
Central co-op
Banks and
Primary Cr.
Societies
Commercial
Banks
Indian
Public Sector
Banks
State Bank of
India and its
Subsidiaries
Commercial Banks
Foreign
Private Sector
Banks
Other Nationalized
Banks
HDFC,
ICICI etc.
Regional Rural
Banks
Page 3
Indian Banking Industry Analysis

The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year 1991,
from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have
been swift. All most all the sector operating in the economy was affected and banking
sector is no exception to this. Thus the whole of the banking system in the country has
undergone a radical change. Let us see how banking has evolved in the past 57 years
of independence.
After independence in 1947 and proclamation in 1950 the country set about drawing
its road map for the future public ownership of banks was seen inevitable and SBI was
created in 1955 to spearhead the expansion of banking into rural India and speed up
the process of magnetization.
Political compulsions brought about nationalization of bank in 1969 and lobbying by
bank employees and their unions added to the list of nationalized banks a few years
later.
Slowly the unions grew in strength, while bank management stagnated. The casualty
was to the customer service declined, complaints increased and bank management was
unable to item the rot.
In the meantime, technology was becoming a global phenomenon lacking a vision of
the future and the banks erred badly in opposing the technology up gradation of
banks. They mistakenly believed the technology would lead to retrenchment and
eventually the marginalization of unions.
The problem faced by the banking industry soon surfaced in their balance sheets. But
the prevailing accounting practices unable banks to dodge the issue.
The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and
capital adequacy ratio become mandatory. The cumulative impact of all these changes
has been on the concept of state ownership in banks. It is increasingly becoming clear
that the state ownership in bank is no longer sustainable.
The amendment of banking regulation act in 1993 saw the entry of new private sector
banks and foreign banks.
Page 4
About HDFC Bank

HDFC BANK LTD 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.
If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and
Chairman-Emeritus, of HDFC Group. HDFC BANK LTD was amongst the first
to set up a bank in the private sector. The bank was incorporated on 30th August 1994
in the name of HDFC Bank Limited, with its registered office in Mumbai. It
commenced operations as a Scheduled Commercial Bank on 16th January 1995. The
bank has grown consistently and is now amongst the leading players in the industry
.
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 In a milestone transaction in the Indian
banking industry, Times Bank was merged with HDFC Bank Ltd., effective February
26, 2000. The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository Shares (
ADS ) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'
and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange.
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and
regulatory approval process. As per the scheme of amalgamation, shareholders of
CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.
The merged entity now holds a strong deposit base of around Rs. 1,22,000 Crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to
HDFC Bank in terms of increased branch network, geographic reach, and customer
base, and a bigger pool of skilled manpower.
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. This was the
first merger of two private banks in the New Generation Private Sector Banks. 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
Page 5
1.2 Mission, Vision and Business Strategy

I.
II.
III.
IV.
Mission
World Class Indian Bank
Benchmarking against international standards.
To build sound customer franchises across distinct businesses
Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance
Vision Statement
The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business philosophy
is based on four core values such as:1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC 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 requirements. The HDFC Bank plus and the investment advisory services
programs have been designed keeping in mind needs of customers who seeks distinct
financial solutions, information and advice on various investment avenues.
Business Strategy
I.
Increasing market share in Indias expanding banking
II.
Delivering high quality customer service
III.
Maintaining current high standards for asset quality through disciplined credit
risk management
IV.
Develop innovative products and services that attract targeted customers
and address inefficiencies in the Indian financial sector.
Page 6
1.3 Board of Directors and Business Heads
Mrs. Shyamala Gopinath Chairperson
Mrs. Shyamala Gopinath holds a Master's Degree in Commerce and is a CAIIB.

Mrs. Gopinath has over 39 years of experience in financial sector policy
formulation in different capacities at RBI. As Deputy Governor of RBI for seven
years and member of the Board, Mrs. Gopinath had been guiding and influencing
the national policies in the diverse areas of financial sector regulation and
supervision, development and regulation of financial markets, capital account
management, management of government borrowings, forex reserves management
and payment and settlement systems.
Mrs. Gopinath is a member of the following Committees of the Board of the Bank:
Audit Committee (Chairperson)
Nomination and Remuneration Committee
Risk Policy and Monitoring Committee
Customer Service Committee (Chairperson)
Fraud Monitoring Committee (Chairperson)
Mr. Aditya Puri - Managing Director
Mr. Aditya Puri holds a Bachelor's degree in Commerce from Punjab University
and is an Associate Member of the Institute of Chartered Accountants of India.
Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank,
Malaysia
.
Mr. Puri has been the Managing Director of the Bank since September 1994. Mr.
Puri has nearly 40 years of experience in the banking sector in India and abroad.
Mr. Puri has provided outstanding leadership as the Managing Director and has
contributed significantly to enable the Bank scale phenomenal heights under his
stewardship. The numerous awards won by Mr. Puri and the Bank are a testimony
Page 7
to the tremendous credibility that Mr. Puri has built for himself and the Bank over
years.
Mr. Puri is a member of the following Committees of the Board of the Bank:
Stakeholders' Relationship Committee
Corporate Social Responsibility Committee
Risk Policy and Monitoring Committee
Credit Approval Committee
Customer Service Committee
Fraud Monitoring Committee
Premises Committee
A N Roy
Director
Bobby Parikh
Director
Kaizad Bharucha
Executive Director
Keki Mistry
Director
Malay Patel
Director
Paresh Sukthankar
Deputy Managing Director
Partho Datta
Director
Renu Karnad
Director
Sanjay Dongre
Exe. Vice President (Legal) & Co. Secretary
Sanjay Dongre
Secretary
Sashidhar Jagdishan
Chief Financial Officer
Umesh Chandra Sarangi
Additional Director
Page 8
1.4 Awards
Dun & Bradstreet Corporate Awards HDFC Bank wins Dun &
Bradstreet Corporate Award
2016
2016 in the Banking sector
Profitability:
Rank
1
The Financial Express India's Best Efficiency:
Rank
1
Banks Awards 2015
- Strength & Soundness: Rank 1
Outlook Money Awards 2015
Pension Fund Regulatory and - Best Performing Bank Development Authority awards for Maximum APY Subscribers
- Best Performing Bank in the
Atal Pension Yojana
Private sector Banks category
- Best Performing Bank : Atal
Pension Yojana Carnivals in
Private Sector Banks
Business Today
KPMG India's Best Banks 2015

Awards
Barron's World's Top 30 CEOs
Mr. Aditya Puri in Barron's Top

30 Global CEOs for 2nd year
IBA Awards
HDFC Bank wins prestigious IBA

Banking Technology Awards
Business Today
Best Companies to Work for in

India
NABARD Award
Best Bank in JLG-Bank Linkage

programme in Assam
Business Today - KPMG India's Best HDFC Bank wins Bank of the
year and Best Digital Banking
Bank
Initiative awards
NABARD Award - The Best Bank HDFC Bank wins NABARD

in SHG Credit Linkage in Tamil Award
Nadu
- Best Bank of the year : Runner

up
- Winner : Institutional Financial
Distributor of the year
Page 9
1.5 Integrated Financial Services
1.6 Business Statement

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 agri-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
Page 10
leading Indian corporate including multinationals, companies from the domestic

business houses and prime public sector companies. It is recognized 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 Master card 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-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments.
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
liberalization of the financial markets in India, corporate 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.
Page 11
1.7 Objective of Study

The title of the project is High Net worth scoping and market survey. Under this
I have to do a market survey and scoping for bank products used by existing and
potential HNW clients in the middle segment traders of sector 22 and 35 of
Chandigarh.
Following are the main objectives of our study
Market survey for products being provided to existing HNW clients in the
middle segment traders
Market survey for products being provided by competitors to potential HNW
clients in middle segment traders
Comparative analysis of clients satisfaction with products provided by HDFC
bank and competitors
1.8 Problem Definition

The following are some important terms in the project which need to be understood
before describing about the research.
Middle Segment Traders

The traders who deal in retail business or wholesale business but having a Shop-cumoffice in sector 22 and 35 was classified as middle segment traders. The business may
be in sole propertiership or partnership. There are around 1000+ middle segment
traders in combining these sectors.
Market Survey
The market survey was done for the traders through a proper conversation with them.
The aim was basically to find out who are there with the bank, who are not, what are
the main reasons of them using different banking product of either HDFC bank or any
other bank, what are their satisfaction level with the primary bank on different
parameters so that the potential clients can be targeted through the parameter with
which they dont feel satisfactory with primary bank.
Competitors
The competitors analysis on various parameters was done according to the survey of
there clients. If we talk about sector 22 and 35, then its one of the oldest and biggest
market place of Chandigarh having a lots of competition in banking being the major
focus market.In sector 35 there are 5 private sector banks and 7 public sector banks.
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1.9 Importance of Study

The study would try to throw some insights into the existing services provided by the
banks, perceptions and the actual service quality of the bank. The results of the study
would be able to recognize the lacunae in the system and thus provide key areas
where improvement is required for better performance and success ratio. In the days
of intense competition, superior service is the only differentiator left before the banks
to attract, retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive
advantage, and enhance efficiency.
Page 13
HDFC Bank products for Middle Segment Traders

2.1 Current Accounts
HDFC Bank Current Account gives the power of inter-city banking with a single
account and access to more than cities. From special cheques that get treated at par
with local ones in any city where 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, banks
priority services have become the benchmark for banking efficiency.
Now, with an HDFC Bank Current Account, experience the freedom of multi-city
banking. Person can have the power of multi-location access to his account from any
of our 761 branches in 327 cities. Not only that, he can do most of his banking
transactions from the comfort of his office or home without stepping out.
There are various kinds of current account in this bank like: Plus current account
HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities. Plus Current Account requires maintaining an
average quarterly balance of Rs. 100,000.
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 power of intercity banking with a single account.
From special cheques that get treated at par with local ones in any city where bank
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, banks priority
services have become the benchmark for banking efficiency. Trade Current Account
requires maintaining an average quarterly balance of Rs. 40,000.
Premium current account
Business needs a partner who can manage finances while concentrate on growing
business. Form this account customer can avail benefits of inter-city banking account
that 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.
Page 14
A Current Account with the benefits of accessing account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and through
the ATM.
Regular current account
A Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, customer can access 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 account. Regular Current Account requires to maintain an average
quarterly balance of only Rs. 10,000.
With a vast network of branches in cities all over the country, and access to a
multitude of ATM's, customer can keep track of all transactions anytime.
Reimbursement Current Account
No more paperwork, no more receipts to keep track of - a hassle-free account that
allows deposit the reimbursements receive from company/organization on a monthly
basis.
To open this account a person has to follow these processes:
Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person).
Mention Salary Account number and Debit Card number on the AOD so that Debit
card can be linked to both, Salary Account as well as new Reimbursement Account.
Request company to directly credit cash payments to the Reimbursement Account.
RFC Domestic Account

Full name of this account is Resident foreign currency account.
Have you accumulated foreign currency from travelling abroad frequently? Received
gifts from relatives in foreign currency? Or earned it by any other means as approved
by the Reserve Bank of India?
If so, open Resident Foreign Currency Domestic Account and manage foreign
currency efficiently. Person can choose to set up your account either in US Dollar,
Great Britain Pound or Euro.
To open this accounts a person as to follow this process: Choose the currency in which person wish to operate. Open account with an initial
amount as per the following-US Dollar = 250 Great Britain Pound = 200 Euro = 250
and maintain an Average Quarterly Balance of the same amount.
Page 15
Flexi current account

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

The top position is always the desirable position. With the Apex current account, take
business to a new high. On maintaining an average quarterly balance of Rs. 10 lakhs,
this account makes sure person make the most of every business opportunities coming
his way. Unlimited, free, anywhere Banking experience at the APEX is reserved for
person who joints this.
.
Max current account
Maximum benefits and minimum hassles for customer with Max Current Account
with a Rs. 5 lakhs average quarterly balance requirement, bank present to world of
privileges that helps business expand and grow. Features like maximum free
transaction limits including other beneficial features on this current account truly
enhances business potential to the Maximum.
2.2 Limits
HDFC Bank offers a unique range of working capital facilities at door-step. It offers
affordable, convenient financial solutions which are of paramount importance in
running an efficient enterprise.
Types of Working Capital / Limit
Cash Credit / Overdraft- HDFC Bank offers Cash Credit / Overdraft
facilities to various segments of customers for their working capital
requirements. This is a fund based facility to help fund business inventory
(raw materials and finished goods) and receivables (debtors).
Letter of Credit (LC) - HDFC bank offer import financing through Letters of
Credit, which are well accepted globally and supported by a strong trade
finance set up. It is direct members of SWIFT and has correspondent banking
Page 16
arrangements with more than 450 banks worldwide. It also structure complex
Letters of Credit.
Bank Guarantee (BG) - Bank Guarantees are necessary for certain business
obligations. At HDFC Bank, Bank Guarantees are issued on customers behalf
under any business contract.
Packing Credit (PC)- Packing Credit is offered to exporters to help them
finance the purchase and import of raw materials, and the processing and
packing of the goods meant for export.
Post Shipment Finance
Bill Discounting
Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises,
Retailers, Stockist, Distributors, Merchant Establishments,Departmental Stores,
Supermarkets, Restaurants, Multi Brand Outlets etc.
2.3 POS
In the technical world people are trying to keep as much less cash with themselves as
they can. So point-of-sales or swapping machines are a basic requirements for every
trader.
2.4 Other HDFC Bank products

Fix deposits service
Long-term investments form the chunk of everybody's future plans. An alternative to
simply applying for loans, fixed deposits allow to borrow from own funds for a
limited period, thus fulfilling needs as well as keeping savings secure.
People can invest his/her money into either in security market or gold or mutual fund
or into a fix deposits. People always go to that way where he/she can get more
benefits and minimum risks. So, for this purpose he has a better chance to deposits
money in to the fix deposit.
If people believe in long-term investments and wish to earn higher interests on his/her
savings, now is the time to invest money in HDFC bank Fixed Deposit. Get up to
9.75% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens.
What's more NO PENALTY if withdraw part of the FD in times of need. Flexibility,
Security and High Returns all bundled into one offering.
Regular fix deposit
As per the rules and regulation of the bank a person can deposit their money in to a fix
deposit in the bank and can get the benefits of these facilities.
Page 17
Five year tax saving fix deposit

In 2006, it was announced for the first time that Bank fixed deposits booked by an
Individual/HUF for 5 years & up to Rs. 1,00,000/- will be allowed exemption under
Sec 80C of the Income Tax Act,1961 subject to necessary declarations taken from the
Customer.
Super saver facility
Customer can enjoy a high rate of interest along with the liquidity of a Savings
Account by opting for a Super Saver Facility on his or her savings account. Avail of
an overdraft facility of up to 75% of the value of his or her Fixed Deposit.
Sweep-in facility
Do you wish to avoid taking overdrafts, and still take advantage of your Fixed
Deposits? Then what you need is a Sweep-In Facility on savings account. Link Fixed
Deposit to Savings or Current Account and use it to fall back on in case of
emergencies. A deficit in Savings or Current Account is taken care of by using up an
exact value from Fixed Deposit. Since deposits are broken down in units of Re 1/-,
customer will lose interest only for the actual amount that has been withdrawn.
Demat account service
Nowadays share market is becoming is the main occupation of the person. So to
avoid faulty processes demat account is really most important for the share market
and for the safety of shares it is most important.
HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lac demat accounts.
HDFC Bank Demat services offers a secure and convenient way to keep track of
securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with -National Securities Depositories
Limited (NSDL) and Central Depository Services Limited (CDSL).
Safe deposit locker
A Safe Deposit Locker with HDFC Bank is the solution to persons fear. Located at
select branches in cities all over the country, banks lockers ensure the safe keeping of
valuables.
Eligibility
An individual (not minor), firms, limited company, associations, clubs, trusts,
societies, etc may hire a locker.
Loan Services
In todays competitive world every thing happens only with the help of money or
through the money every person need money. But some time a person has not cash on
hand at that time he needs lone either from any friend or from any financial institute.
Lone dose not mean that only lower class person needs it but also upper class person it
is needed.
Page 18
As per the requirement of the every person there are much type of loans are there in
the HDFC bank.
Personal loan
A person has so many dreams but some time due to scarcity of money a dream cant
be satisfy. So, here one solution for that person this is personal loan. From this he/she
can fulfill their needs or requirement. It can be any thing either a dream of vacation or
son/daughters admission to college or any wedding, so personal loan can be helpful
in this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast, same
over here any person want to get a personal loan with the nominal documents he can
get the loan.
Home loan
HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of
experience, a dedicated team of experts and a complete package to meet all housing
finance needs, HDFC Home Loans, help people realize dream.
Vehicles loan
Nowadays the life is being so fast, time value is becoming more important so to
reach at the destination of any business related occasion or for a boy to reach college
or any where at the fix time there are so many requirement of vehicles. But every
people have no capacity to purchase vehicles with cash so for that here in the HDFC
bank vehicles loan is available. There are many types of vehicles loan.
Types of vehicles loan:
Two wheeler loans.
New car loan.
Used car loan.
Tractor loan (for agree culture business).
Commercial vehicle loan.
So, as per the requirement of the person there are these types of loans are available
this are at the chip rate and hassel free from more documentation and other procedure.
And commercial businessman can get the benefits of the commercial vehicles loans.
Thus as per the need of different people there are vehicle loans available. And also
terms and condition are different as per the requirement.
Express loan plus
Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs.
The procedure is simple, documentation is minimal and approval is quick. It is helpful
to person in repairing of house, School admission or also in the family holiday.
Page 19
Card Services
In todays competitive and fast time card services providing by the banks are
really very important to every person and every business needs or to take meal in to
the hotel or to purchase jewellery from the jewellery shops cards are playing good role
in the banking sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, or budgeting his
expenditure, he will find a card that suits him.
Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams.
Some dreams can't wait. If there's something person has always wanted. If a person
wanted fulfill his wants he can get benefits from the HDFC banks credit cards
facilities. different types of credit
Classic cards
Silver Credit Card.
Value plus Credit Card.
Health Plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard
Commercial Cards
Corporate Credit Card
Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.
Types of debit card: Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Easy Shop International Business Debit Card
Easy Shop Woman's Advantage Debit Card
Easy Shop NRO Debit Card
Page 20
Kisan Card
Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.
ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card
Payment Services
Nowadays life of a person become very stressful and he/she becoming busy with their
own business, but they have to payment for something so for that reason banks
payment services become started. With HDFC Bank's payment services, person can
bid goodbye to queues and paper work. Banks range of payment options make it easy
for pay for a variety of utilities and services.
Verified By Visa
Do you want to be worry free for your online purchases. Now you can shop securely
online with your existing Visa Debit/Credit card.
Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What
more, you can now use your HDFC Bank Debit Card also for online purchases.
Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the
art POS Machines or through your website and experience hassle free payment
acceptance.
Prepaid Mobile Refill
If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile
Phone with this service.
Page 21
Review of Literature
Analysis of customer behaviour is an essential input in planning marketing strategies.
Consumer behaviour guides in market segmentation, one of the important tools in
bank marketing. The behavioural aspects of a bank customer are given less
importance in the financial analysis of bank products. It cannot be ignored that it is the
customer who creates the demand for products and any change in these needs would
affect the demand also. Customers have different preferences and a purchase decision
is effected after considering the range of services offered by the banks. These
variations may be related to the psychological differences among individuals on
aspects such as attitude, motives, social class needs, culture, etc. This can be studied
only with the help of market research studies on customer behaviour and their
preference patterns.
Customer behaviour is influenced by three sets of factors, viz., external factors,
internal factors, and the consumer process. Culture, occupation, social class and
geographic location are factors which externally influence customers. Culture is a mix
of beliefs, attitudes, and ways of doing things by reasonably homogenous set of
people. 23 Culture explains how and why people behave as they do and also
transcends to their buying behaviour. Education, upbringing, religious beliefs, and
living conditions are the factors that would shape up the culture of a person. Origin of
private banks in India can be largely attributed to the needs of specific cultural or
communal groups. Even now some banks survive only on this aspect of customer
behaviour, though, of late they have realised the need expanding outwardly. breaking
the boundaries of their small segments. In the United Kingdom, not less than several
hundred small bank branches exist. just to cater to the needs of various ethnic groups.
This aspect serves as a key factor in the overseas market development of Banks.
A key segmenting dimension in banking is the social class to which a customer
belongs. It influences the usage pattern and attitude to the lending instruments and
deposits. People having higher education and socio-economic status have more
favorable attitude towards credit products than others. They tend to use products like
credit cards more frequently. ' Attitude to saving also shows variations across
different social classes. People belonging to lower strata of the society tend to
perceive savings accounts or bank deposits as a tangible security shield. This may be
due to the fact that education equips people to evaluate the options and thus optimise
their purchase decisions. However. sometimes-behavioural characteristics might
overshadow such influences. Some of the observations that may find application in
developing marketing strategies for segmentation based on social classes are given
below.
Different social classes exist and target marketing would enable banks to tap
the potential in such segments Income need not be the most determinant factor
in segmentation. Psychological differences largely remain unexplored in the
Indian markets. In the financial products marketing, the opinion of reference
groups has considerable influence on customer's choices. A customer is more
Page 22
likely to share the attitude of his or her reference group. If information

obtained by a customer contradicts with what the reference groups believes in,
the customer will also develop unfavourable attitude towards the product.
Marketing people can identify suitable reference groups to build up favourable
image and opinion. This is especially true in marketing to retail segments
which often look for reliable sources of information. The over dependence of
customers on image in the services industry can be best explained by the
problem of credibility of information sources and the intangible nature of the
service. In the case of banks, studies have shown that customer choice is
largely decided by the opinion of peers, parents and relatives.
Family plays an important role in the choice of a bank. Youngsters tend to
choose the banks of their parents. Martineau (1958) conducted a study among
students opening account for the first time in their life and found that parental
influence ranked second to 'location_ of banks in their choice of bank.
Product needs also vary across different life cycle stages of a family
Rajashekar and Paul(1999) have found the relative importance of the choice
criteria across life cycle segments. 3 Individuals in the bachelor stage (young.
single people not living at home) emphasise the importance of such criteria as
'nearness to home. overall quality of service.
Reputation. ease of qualifying for free checking accounts by maintaining a
minimum balance, and fast service and being able to obtain all financial
services at one location For newly married couples (with children under 6
yearstermed as full nest I), attributes such as 'location', reputation,
availability of mortgage loans, low interest rates on loans and good
financial advices were found to be the important choice criteria. For older
couples, 'location', good financial advice, experienced personnel, safety of
funds, paying highest rates on savings and overall quality of services were
important. The study revealed interesting attitudinal pattern among members
of different life cycle stages. Those in the bachelor stage are ambitious as their
goal is to double their money in the future and they appear to be less loyal to
their financial institutions as it makes no difference to them whether they deal
with a local bank or a new bank. Meanwhile, members of full nest I and II
stages have great desire to provide money needed by their children to go to
college, invest in a safe avenue with steady returns and offering convenience
and are bargain oriented. Older members are more value oriented than empty
nest 1 counter parts. The findings clearly suggest that bankers have
opportunity in targeting the different groups with suitable market mix
variables particularly with respect to product, pricing and location strategy.
Psychological Influences- Aspects such as motivations. perceptions. attitudes
and beliefs are the psychological influences. Influences of these factors may
not be obviously pronounced in the case of choice behaviours. But it may
Page 23
influence the customer satisfaction deregulation and service quality

expectations of specific customer segments.
The Consume. Frocess and Loyalty- Consumer purchase decisions are made
haphazardly, though certain dominant features might influence the choice of
financial institutions in general. Choice of specific financial products may
involve a decision making process consisting of different phases such as
getting aware of the need, searching for alternatives, evaluation of the options,
choice of a product and post-purchas evaluation. At each stage, their
information needs may also change. Understanding the information needs of
customers at these different phases is hence essential for planning marketing
communications. However. it has been observed that customers do not often
seek the finer details of schemes and services through the advertisements.
Most ofthe information required is passed over the counter by bank personnel.
Counter staff should have good product knowledge and communication skills
to take up this responsibility. The post purchase phase is also crucial in the
sense that a bank staff should be able to provide assurance to the customers
about the benefits and reinforce their purchase decision so as to ensure loyalty
of the customer.
Banks in India generally enjoy good patronage by customers. Despite the
introduction of many new schemes, bank deposit still reign superiority in the
household savings. This clearly illustrates popularity of banks among common
people. Interestingly, products like National Savings Certif1cates(NSC), Unit
Trust of India schemes(UTI), etc, though carry higher returns, have not been
as popular as bank deposits. Some banks are pat.-cnised by customers
irrespective of the service quality levels they maintain. These are a few aspects
that makes one to probe into the reasons of customer loyalty in banking
industry. From the perspective of bankers ensuring customer loyalty is
important for the following reasons.
Customer turnover is costly to banks as processing is time consuming

and labour intensive, which, in turn, affects their profitability too.
Existing customers may help in cross selling a bank's products and in
doing word-of-mouth advertising to potential customers. Fry (1973)
conducted a study among university graduates to identify banks
patronised by them at specified periods before. during. And after their
time at the university. Also questions pertaining to respondents
location, loan status, parents socio-economic classification, etc. were
included. The study made some important conclusions such as
If a person is non-mobile (stays in one place) the branch coverage has effect
on loyalty.
Page 24
Prior patronage increases the likelihood of loyalty in future.

Students tend to patronise the same bank as their parents.
Page 25
Research Methdology
4.1
Research Design
As the study is for markets survey of products of HDFC Bank so our research design
is exploratory. In this we are having some knowledge about the middle segment
traders as they use current a/c, POS, limits etc. But there are still lack of satisfaction
regarding various factors, so this study is going to find out what are they and how can
be they overcome.
4.2
Sample Size
Sector 22 & 35 markets are one of the biggest markets in terms of transaction and
area both. I have covered the whole market area of sector 22 & 35, but due to various
constraints the sample size got limited to 82 only.
4.3
Sampling technique
There was a predetermined sample of market 22 & 35. So basically I covered the
whole market of these two sectors, but the sample got to be only 82 due to
unavailability of information.
4.4
Data Collection
There was a proper structured interview method based on a questionnaire (in

annexure) by visiting shop-to-shop. The questionnaire was prepared by mentors help
and with some references, done earlier. So all the data collected is primary data.
These information was provided either by traders themselves or by the one who
manage shops account and financial activities.
4.5
Data Analysis
The data analysis has been done in basically two steps.

Descriptive Analysis- In this basically the raw data has been analysed which
was obtained based on questionnaires. It simply hives some graphs. Tables
and diagrams and there simple interpretation.
Page 26
Inferential Analysis- This is one of the major analytical part of study as it

gives all the managerial interpretation about the survey. It has been done on
the basis of following analytical techniques(i)
SWOT Analysis- A SWOT analysis is an organized list of

businesss greatest strengths, weaknesses, opportunities, and
threats. Strengths and weaknesses are internal to the company
(think: reputation, patents, location). We can change them over
time but not without some work. Opportunities and threats are
external (think: suppliers, competitors, prices)they are out there
in the market, happening whether we like it or not. We cant
change them.
(ii)
Perceptual Mapping- The mapping of different banks has been

done on the basis of satisfaction level provided by the customers of
that bank. The average of the different bank users have been used
on different parameters to obtain the perceptual data set. Then this
has been used to obtain the perceptual mapping of different banks
on the basis of two important parameters obtained through
analysis.
(iii)
Semantical differential Chart- Semantic differential is a type of a

rating scale designed to measure the connotative meaning of
objects, events, and concepts. The connotations are used to
derive the attitude towards the given object, event or concept.
Page 27
Analysis
5.1 Descriptive Analysis
In this there is a complete description of obtained result from the direct analysis of
questionnaires which are some basic business information and banking information.
Later on there is a satisfaction level analysis with the primary banks also.
5.1.1
Business Information
The average age of business in sector 22 and 35 is found to be approximately

14 years. This implies that trust on banking and banking experience with old
banks is major source of banking with any banks among these traders.
Business Type
Sole
Partnership
Private Ltd.
No. of Customers
54
21
7
Maximum no. of customers are having sole propertiorship of the business

which enables the decision making capability about banking decisions.
Annual Turnover
It can be seen from above pie graph that most of the traders lie in 50 lakh to 5 Crore
group, which is more than half (56%). It gives a clear indication that most of the
Page 28
traders lie in middle income group according to market of sec. 22& 35, which is an
elite market. There are more than 5 Crore annual Turnover traders also but in a lesser
amount, so focus should be on the middle one and tapping that group.
Dealing in
Most of the traders (82%) are involved in trading as there dealing. As it is a market
where customer dealing is most so trading is the one segment which is most
responded. The wholesale business are very less, and which are they were not
interested in giving any info as they deal in large no. of transactions and they did not
have any time
5.1.2
Banking Information Analysis
Primary Bank Info

Primary Bank
Page 29
This bar graph gives idea about the presense of HDFC Bank and the
competitors in market. It can be seen from the graph that HDFC Bank is
serving as primary bank with covering almost 25% of the market share. The
major competitor is ICICI Bank which is almost half ( approx. 13% ) of
market share. If we talk about the public sector banks then PNB is one of the
major competitors.
Major Banking with Primary Bank
Almost all the traders are having current a/c with there primary banks. Thi was
a multiple option question so that we can see that most no. of people who have
current a/c with there primary bank they do have POS of that bank also.
Reasons for selecting above Bank
Page 30
When asked about why do they have the particular bank as there primary bank
then efficient services is one of the major reason which was given by them.
Nearness to location and lesser service charges are also a factor ehich play an
important role. If we talk about efficient services and nearness to the location
then HDFC Bank beats other bank and this give a proper reasoning of its being
as primary bank.
Multiple Bank Info

Multiple Banking with
When asked about having the options in banking, again most of the
respondents were with HDFC Bank. This was so because one who is having
banking with a public sector bank, he must be having requirement of better
services also, so he will prefer to go with one of the private sector bank.
Page 31
Reasons for selecting above Banks
When asked about reason for selecting a particular bank as optional bank the
service charge and services were the one which was major. This was so becaus
if a person is banking with public sector bank then its his common perception
that cost is less but services are not good so he would go to an private sector
bank for the options, and vice-versa is true also.
Current Account information

Current A/c in
Current a/c needs for traders are like a saving account for an individual. So
sec. 22&35 are having HNW traders so probably they all have current a/c. It is
minimum in one bank and maximum upto 5 banks. Again HDFC Bank is a
Page 32
leader in current a/c among traders. Either they are having it primarily or as an
optional.
Factors important while taking current a/c- Charges on transaction was the
major factor (64.2%) while taking the decision regarding current a/c. The no.
of transaction/day (55%) was on the second importance. Location of branch
(30%) and updation of a/c details were another factors.
Limit information
Limit from
Very less no. of people was having limits from banks. As most of the business
were sole propriety so all the money invested in business were of traders only.
Limit is the one about types of limit, there charges and other factors are still
unknown to most of the traders. They still think public is better in taking up
limit due to their contacts or trust etc. reason.
Factor important while taking up limit In deciding up the limit the
important factor which comes to any of the trader or a common man mind is
the charges which would be imposed as interest. So this was major factor
(55%). The speedy processing (43%) and easier documentation (31%) are also
some important factor. The recommendation from friends, family etc are
(37%) are still in a majority. So there is need to understand that a banker can
give you better recommendation.
Page 33
POS Information
POS of which Bank
POS is an important aspect of todays technological world for the traders. And
HDFC Bank is a leader in having POS in market. Most no. of banks use
HDFC POS either as a primary one or for optional. Again ICICI is the one
which is a major competitor for HDFC in this also.
Factor important in having POS of any- When asked about the reason for
having POS of any particular bank then service quality (70%) is the main
reason, and HDFC Bank focuses on it so its a leader in tapping POS services.
Page 34
5.1.3
Satisfaction Analysis with Primary Bank
Services
Very much Dissatisfied

dissatisfied
your 0
2.5%
A. Responsiveness
to
enquiries
B. Fast processing of your loan 2.7%
applications
C. Personalized services
1.2%
D. Financial
guidance
counseling
E. Updating of a/c details
& 1.2%
SoSo
4.9%
Satisfied
Very much satisfied
87.7%
4.9%
1.3%
20%
62.7%
13.3%
1.2%
25.6
%
28%
67.1%
4.9%
61%
7.3%
29.3
%
10.1
%
19.5
%
57%
63.4%
6.1%
69.6%
17.4%
69.5%
8.5%
34.2%
6.3%
13.4
%
7.6%
8.5%
15.9
%
73.2%
9.8%
76.5%
11%
73.2%
9.9%
78%
8.5%
2.4%
1.2%
F. Assistance
in
cash
management
G. Fast collection/transaction of
funds
H. Flexibility
in
providing
services
I. Range of services offered
2.9%
1.2%
1.2%
1.3%
1.3%
1.2%
2.4%
J. Complaint service procedures

K. Assistance in providing info
L. Reliability in accounting
1.2%
2.4%
0
3.7%
0
2.4%
This was done basically to know the main reason and satisfaction level of a trader
with particular bank. This also gives idea about how the potential customers can be
tapped by focusing on a particular parameter. The above table gives basically
following interpretation Most no. of peoples (87.7%) are satisfied with the responsiveness of there
banks, which is a major service market factor.
Flexibility in providing info where satisfaction is just 40% is the one
parameter which needs to be get focused for tapping the potential customers.
Assistance in providing info ,where people are enjoying a good satisfaction
level is the one which is need of hour. The advertising tools, managers visit
and other factors are playing a major role in technological world.
Page 35
5.1.4
The traders who are having HDFC Bank as primary bank approx. 45% of
them having current a/c in other banks also.
No. of transactions/day is important for almost 75% of HDFC customers.
No customer who are having primary bank is having limit from HDFC
Bank. They are mostly having limits from public sector banks due to lower
rate of interest.
100% customers who are having HDFC as primary is having POS of
HDFC Bank.
Speed of transaction is important for around 50% of people who are
having HDFC as primary Bank
The overall satisfaction with HDFC Bank products is around 4 when
having HDFC Bank as primary Bank.
5.1.5
HDFC Bank Product and Satisfaction Analysis
Other Bank Product and Satisfaction Analysis
The traders who are having other bank as primary one approx. 33% are
having current a/c in HDFC Bank also.
Here again No. of transactions/day is the major reason when we see there
reasons for having HDFC Banks current a/c.
Approx. 12.5% traders are having limit with HDFC Bank if its not there
primary Bank.
The major reason is easier documentation and better financial guidance in
having HDFC limit.
More than 50% traders who are not having HDFC Bank as there primary
Bank is having its POS.
The average satisfaction level with other banks customer with there bank
is found to be 3.75.
5.2 Inferential Analysis
(I)
SWOT Analysis
Strengths
* HDFC bank holds strong position on CRM part, they have professional, dedicated
and well-trained employees.
* HDFC bank offers a wide range of banking and financial products and financial
services to corporate and retail customers through a variety of delivery channels such
Page 36
as ATMs, Internet-banking, mobile-banking, etc. The area could be Investment

management banking, life and non-life insurance, venture capital and asset
management, retail loans such as home loans, personal loans, educational loans, car
loans, consumer durable loans, credit cards, etc.
* HDFC bank focuses on customization of products that are designed to meet the
specific needs of customers.
* Most of the branches of HDFC bank are fully computerized and support corebanking solutions and the infrastructure of these banks is also very strong, the
branches of these banks are well equipped.
* HDFC bank supports an efficient payment system and most of the banks are free
from bureaucratic work environment.
* In contrast to their public sector counter parts, operational efficiency is maintained
at their highest level because HDFC bank provides a smooth working environment to
their employees.
* HDFC bank has commenced with a strong financial position, without having to
pursue NPAs.
Weaknesses
* The coverage market area of HDFC bank is very limited. Most of the banks are
situated in metropolitan cities.
* The major challenge that HDFC bank has to face is lack of trust and belief shown
by the Indian population, as compared to public sector banks. This perception is
mainly due to the absence of government security and few years of working in this
field.
* The employee turnover appears to be on the higher side as the customer doesnt get
that emotional attachment with all the managers.
Opportunities
* HDFC bank does not have bureaucratic environment and therefore, enjoy a high
level of autonomy, facilitates faster decision making.
* Efficient employees and good working conditions enable HDFC bank to reduce the
operating cost of the functions and increase return on investments.
* With higher automation to work, HDFC can innovate new products (customized
products) and services and achieve high customer satisfaction.
* With responsive organizational structure, HDFC bank is better equipped to solve
customer problems and provide enhanced customer services.
* HDFC bank is majorly situated only in urban areas so the market expansion in rural
areas provides a major opportunity to these banks.
* With full computerization, HDFC offer cost effective services like ATMs,
Electronic Fund Transfer, I-banking, etc.
Page 37
Threats
* Expansion of foreign banks in India poses tough competition.
* The failure of a private sector bank (Global Trust Bank) and the frequent
announcements of takeover/merger and acquisition by public and old private sector
banks give a picture of unstability to HDFC bank in India.
* It is true that the share of HDFC bank is increasing, but to sustain the Indian public
sector banks are recharged with new technology, efficient distribution network and
skilled human resource pool and with high market share will overshadow the private
sector banks.
(II)
Perceptual Mapping
Current A/c
satisfaction
HDFC
HDFC
YES
PNB
YES
0
Overall
Satisfaction
ICICI
3
PNB
KMB
Others
ICICI
3
4
5
SBI
6
IndusInd
Others
UBI
AXIS
SBI
This map is basically used for competitors analysis. As current a/c is the one which is
used by all the traders, so there satisfaction level on scale of 1-5 was noted down. The
overall satisfaction level has been calculated by taking average of particular banks
satisfaction level with customers satisfaction at various parameters. This gives the
basic idea of satisfaction level of the customers with different banks.
Now in perceptual mapping by analysing above graph we get following Here as observed HDFC bank is leader among banks on satisfaction level.
The main competitors among satisfaction level is mainly other categories
which basically contains public sector banks.
If we talk about private sector bank then YES bank is major competitor in
providing satisfaction level.
The size of bubble denotes the market share of the bank. As it can be observed
that HDFC is having highest market share followed by ICICI bank.
Page 38
(III)
Semantic Differential Chart

Semantic Differential Chart
Responsiveness to your enqueries

Personalized Services
Financial guidance & counselling
Fast processing of your loan application
Descriptors
Updating of a/c details
JINENDER JAIN
Assistance in cash management
RAJESH
Fast collection/transactions of funds
JOHN MICROSOFT RESELLER

MEHR SONS
Flexibility in providing services
RAMA STORES
Range of services offered
Complaint service procedures
Assistance in providing info
Reliability in providing info
2.5
3.5
4.5
Values
This analysis is basically done exclusively for HDFC Bank customers. For this first a
sample of 5 were chosen from 21 who are having HDFC as there primary bank. After
this according to their satisfaction level on various parameters semantic differential
chart has been prepared using excel.
The above chart can be interpreted in following points Range of services offered is the one parameter on which 4 out of 5 have given 5
point to HDFC Bank. So range of services offered is the most satisfactory thing
among customers.
Financial guidance and counselling, fast processing of loan request, assistance
in cash management, flexibility in providing services and complaint service
procedures are the parameter where there 3 different opinion exist, which is due
to the fact that person caring is needed in all these parameters. So there is need
to evaluate a customer carefully and providing them all the personal
information related to wealth.
There is not any two cases in which all the reply are same in respect to all the
parameters. This is showing lack of standardization of services provided to
customers which need to be take care of.
Page 39
Findings
1.1 Conclusion
We can draw following conclusion from all the analysis and study implemented From the business information it is very evident that most of the traders deal
in trading so POS, EMI options etc. are the major product in which they may
be interested.
The majority of turnover group is 50 Lakhs to 5 Crore group. So there should
be also a consideration of providing them information as to where to invest
their money in bank, for how much time, how this can benefit there business.
And also there should be persuasion to mould them majorly towards HDFC
Bank instead of let them banking with multiple banks.
In the banking information, first section was for primary bank. Here around
25% of the sample is having primary bank as HDFC Bank, which is a very
less in competitive terms, as here HDFC has one of the oldest branch. Still
there are various factors due to which traders are banking with most of the
public sector banks. All the traders were having current a/c with their primary
banks, but still very less are having limits from there bank, either it be HDFC
or any other bank.
When asked about the reason for having a particular bank, people who are
having public sector bank they said either he knows someone in banks or the
trust level is very high with them but none of them said that I am getting very
good service so that I am with a particular public sector bank. So still there is
the trust lack among peoples regarding HDFC Bank, which is a major reason
for lacking behind to grab the market share.
When it comes to multiple banking people who are not having HDFC Bank as
their primary bank most of them are either having a HDFC Bank POS or some
lesser amount current account but not limits. When asked about reasons for
having multiple accounts there were two type of conclusion drawn- first, if
that person is having public sector bank then he is having multiple banking
with private sector bank due to better services and second, if he is having
private sector bank as primary bank then the cost or service charge is the
reason of having multiple bank accounts. So focus should be paid towards
balancing cost and service.
Page 40
If we talk about current a/c then HDFC bank is again a leader but people are
having multiple current a/c. They dont have trust on service facility of one
bank. The service charge, nearness to locations etc are the major factor in
dealing with current a/c with any bank. No. of transactions are the important
factor only for the traders who are having an annual turnover of above 1 crore.
Limit is the one which is still undiscovered in market and very few traders
show interest in talking about limits. This is due to lack of information about
types of loans, charges etc. People are having still conservative thinking that
public sector bank provide loans at very less cost. So these are the still
misconceptions about HDFC Bank limits among traders.
Now if we talk of POS, then HDFC Bank is a giant leader. It covers almost
3/4th of the traders segment in market. The main reason provided by traders
was that they want to have some multiple options. HDFC Bank services of
POS were also one of the reasons for preferring its POS.
Satisfaction level analysis was done to understand the potential customer and
existing customer satisfaction with HDFC Bank and its competitors. It was
basically done on satisfaction experience of traders with their primary banks
based on various parameters. The main conclusion which derived from above
satisfaction analysis was that HDFC Bank was at a way high satisfactory level
than other banks. The public sector banks are having a so-so level when we
get the information about their personalized services, info providing etc. ICICI
Bank is the one whose customer base satisfaction level is not so good, so they
are the one who can be tapped as potential customer.
1.2 Managerial Implications

The trust level among traders for private sector bank is very less. So HDFC
Bank should be the first in private sector to have some day-to-day meets with
traders. They should be provided with some constructive thinking for their
business regarding banking and provide them relevant information.
Cost is the one factor which is reason for considering public sector banks, for
solving these traders should be informed what the services extra to public
sector bank HDFC Bank is providing if it is having a higher cost. The traders
should be informed about all type of charges and then the services provided in
response to that charge.
The money deduction without informing is a major problem causing
dissatisfaction with any bank. HDFC should try to use technology in that term
and they should have a proper receipt system if any charge for any service is
cut and instant message should be delivered to traders phone with e-reciepts.
Page 41
Multiple banking can be also taken as a challange. Traders should be informed

personally about paying more charges by having multiple banking by
personalized ways, so they can get attracted towards banks relationship easily.
Limit is the one product which is still undiscovered in market by major banks.
EMI options, working capital etc. are also about people dont have information.
There can be a day in bank in which all the sales officers should be available
just for giving consultation for free especially for traders. It can be named as
financial health consultation camp. It should can be organised in middle of a
market.
There is need of standardization in providing services and in dealing with

customers. There should be a proper protocol while dealing with a specific set
of customer.
I n having a market survey there should be some incentive or lucky draw type
plan for the surveyee. It motivates them to participate in survey actively.
1.3 Limitations
This study was limited to only sector 22 & 35 markets. These are one of the
largest market in Chandigarh and crowded one. So this study may have some
constraints in applying it for other markets.
The unavailability of owners was a major limitation. So the information was
provided by accountant, manager or workers. So authenticity of some
information may vary.
Information about the products were also a limitation as traders were not able
to explain why they are having specific product from specific bank.
Page 42
References
1. 'SERVQUAL: A Multiple-Items Scale For Measuring Consumer Perceptions Of

Service Quality, Journal of kcrailing, o.64 (Spring 1988).
2. Ramesha, K., 'Banking Expectations and Bank Selection, IBA Bulletin, Vol.21,
No. 9, 1999.
3. Roy, Ghosh D., Customer Knowledge
Significance, Vinimaya, Vol. II, No. 1,1999.
Management:
Branch
Level
4. Rust, R.T. and A.J.Zahorik, Customer Satisfaction, Customer Retention and

Market Share, Journal of Retailing, Vol.69, 1993.
5. Rust R.T., A.J.Zahorik, and T.L Keiningham, Return on Quality: Measuring the
Financial Impact of your Companys Quest for Quality, Probus, Chicago,
I1linious,1994.
6. Mattila, Anna S., The role of culture in the Service Evaluation Process, Journal
of Service Research, Vol. 1, No 3, pp. 50-61, 1999.
7. Morgan R.M and S.D Hunt, The Commitment-Trust Theory of Relationship
Marketing, Journal of Marketing, Vol.58, 1994.
8. Nagadevara, \/.,and S. Jagadeesh, Total Branch Automation Customer
Perceptions, IBA Bulletin, Special issue, March 1997.
9. Nicholls, J. A. F., S. Roslow, J. Tsolikis, Time is Central, International Journal
ofBank Marketing, Vol.11, No.5,1993.
10. Lepak. Greg M., ' Bayesian approach for analysing the services of banking
institutions, The Journal of Consumer Affairs: Vol 32., No.1, Summer 1998
Page 43
Annexure
Questionnaire
A. BUSINESS INFO
1. Ownership
Sole Proprietary
Private Ltd.
Partnership
50 Lakhs- 5 Crore
5 Crore above
2. Annual turnover
0-50 Lakhs
3. Nature
Trading
Business Retail
Service
Export Oriented
Others
4. No. of years in Business........................

B. BANKING INFO
1. (a) Which is the primary bank for most of your business?
HDFC
SBI
ICICI AXIS YES
IndusInd Kotak Mahindra Bank
PNB
UBI
Others
(b) Major banking with the primary bankCurrent A/c
Limit
POS
EMI
options
Working
Capital
Cards
Insurance
Others
(c) Reasons for selecting the above bank

Prompt/efficient service
Lesser service charges/ Rate of interest
Nearness to your location
High image of the banks
Wide branch network
Any others
2. (a) With which other banks do you associate with your business purpose(multiple)
HDFC
SBI
ICICI AXIS YES
PNB
UBI
Others
(b)Reasons for selecting above banksPrompt/efficient service

Lesser service charges/Rate of interest
Nearness to your location
High image of the banks
Wide branch network
Any others
Page 44
3. How do you rate the services of your primary bank with respect to the following-
Services
Very much
dissatisfied
Dissatisfie
d
SoSo
Satisfied
Very much satisfied
A. Responsiveness to your
enquiries
B. Fast processing of your loan
applications
C. Personalized services
D. Financial guidance &
counseling
E. Updating of a/c details
F. Assistance in cash
management
G. Fast collection/transaction of
funds
H. Flexibility in providing
services
I. Range of services offered
J. Complaint service procedures
K. Assistance in providing info
L. Reliability in accounting
4. (a) Have you taken any limit from any bank ( )Yes
If Yes, then from which bankHDFC
SBI
ICICI AXIS YES
( )No
PNB
UBI
Others
(b) Reasons for taking limit from above bankReasons
Very much
important
Somewhat
important
Not important
Lower interest rates

Good financial advice by the
bank
Has borrowed before from the
bank
Speedy processing
Someone recommended
Easier documentation
5. Which bank current a/c do you useHDFC
SBI
ICICI AXIS YES
PNB
UBI
Others
(a) Current A/c satisfaction (on a scale of 1-5)

(b) Reasons for using current a/c from above bank(s)Reasons
Very much
important
Somewhat
important
Not important
No. of transactions/day
Page 45
Charges on transaction
Location of branch
Updating a/c details
Name
Contact No
.
Page 46

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HDFC Bank

We Understand Your World

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INDRA MANI TRIPATHI

HDFC Bank: Market Survey

HDFC Bank: Market Survey

Indian Banking System

HDFC Bank: Market Survey

Indian Banking Industry Analysis

HDFC Bank: Market Survey

About HDFC Bank

1.2 Mission, Vision and Business Strategy

HDFC Bank: Market Survey

1.3 Board of Directors and Business Heads

Mrs. Shyamala Gopinath Chairperson

Mrs. Shyamala Gopinath holds a Master's Degree in Commerce and is a CAIIB.

Mr. Aditya Puri - Managing Director

HDFC Bank: Market Survey

Deputy Managing Director

Exe. Vice President (Legal) & Co. Secretary

Chief Financial Officer

Umesh Chandra Sarangi

HDFC Bank: Market Survey

Outlook Money Awards 2015

KPMG India's Best Banks 2015

Barron's World's Top 30 CEOs

Mr. Aditya Puri in Barron's Top

HDFC Bank wins prestigious IBA

Best Companies to Work for in

Best Bank in JLG-Bank Linkage

NABARD Award - The Best Bank HDFC Bank wins NABARD

HDFC Bank: Market Survey

- Best Bank of the year : Runner

1.5 Integrated Financial Services

1.6 Business Statement

HDFC Bank: Market Survey

leading Indian corporate including multinationals, companies from the domestic

Retail Banking Services:

HDFC Bank: Market Survey

1.7 Objective of Study

1.8 Problem Definition

Middle Segment Traders

HDFC Bank: Market Survey

1.9 Importance of Study

HDFC Bank: Market Survey

HDFC Bank products for Middle Segment Traders

Trade current account

HDFC Bank: Market Survey

RFC Domestic Account

HDFC Bank: Market Survey

Flexi current account

Apex current account

HDFC Bank: Market Survey

2.4 Other HDFC Bank products

HDFC Bank: Market Survey

Five year tax saving fix deposit

HDFC Bank: Market Survey

HDFC Bank: Market Survey

HDFC Bank: Market Survey

likely to share the attitude of his or her reference group. If information

HDFC Bank: Market Survey

influence the customer satisfaction deregulation and service quality

Customer turnover is costly to banks as processing is time consuming