Objectives

Before doing something it is very necessary that one should be clear with what actually
he/she wants to achieve. This can be possible only when she/he is clear with the objectives
of the study. Objectives give us the path, which leads to the accomplishment of the goals.
Taking this thing into consideration the different objectives are set, which are as follows:

 To study the vast concept of Bank marketing, 7P’s of bank marketing mix and its
importance in today’s highly competitive environment.

 To study how Bank marketing strategies help banks to achieve customer satisfaction and
gain a competitive advantage among other players.

 To compare and analyze all the bank marketing activities of Industrial Credit and
Investment Corporation of India(ICICI) and (HDFC).

1
 OVERVIEW OF THE BANKING INDUSTRY:

Banking in India originated in the last decades of the 18th century. The oldest bank in existence
in India is the State Bank of India, a government-owned bank that traces its origins back to June
1806 and that is the largest commercial bank in the country. Central banking is the responsibility
of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the
then Imperial Bank of India, relegating it to commercial banking functions. After India's
independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the
government nationalized the 14 largest commercial banks; the Government nationalized the six
next largest in 1980. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public
sector banks (that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges) and 31
foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs.
According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75
percent of total assets of the banking industry, with the private and foreign banks holding 18.2%
and 6.5% respectively.

Early History:
Banking 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 the Bank of Hindustan, both of which are now
defunct. The oldest bank in existence in India is the State Bank of India, which originated in the
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 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India. Indian merchants in Calcutta established the
Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49.
The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock

2
bank in India. When the American Civil War 7 stopped the supply of cotton to Lancashire from
the Confederate States, promoters opened banks to finance trading in Indian cotton. With large
exposure to speculative ventures, most of the banks opened in India during that period failed. The
depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in
India remained the exclusive domain of Europeans for next several decades until the beginning of
the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire D’Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in
1862; Branches in Madras and Pondicherry, then a French colony, followed. Calcutta was the
most active trading port in India, mainly due to the trade of the British Empire, and so became a
banking center. Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the
social, industrial and other infrastructure had improved. Indians had established small banks, most
of which served particular ethnic and religious communities. The presidency banks dominated
banking in India but there were also some exchange banks and a number of Indian joint stock
banks. All these banks operated in different segments of the economy. The exchange banks,
mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks
were generally under capitalized and lacked the experience and maturity to compete with the
presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by
solid wooden bulkheads into separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks such as Punjab National
Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded
under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders
like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired
local businessmen and political figures to found banks of and for the Indian community.
A number of banks established then have survived to the present such as Bank of India,
Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The
fervor of Swadeshi movement leads to establishing of many private banks in Dakshina Kannada
8 and Udupi district which were unified earlier and known by the name South Canara (South

3
Kanara) district. Four nationalized banks started in this district and also a leading private sector
bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

From World War I to Independence:

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

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

• In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India.
• In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."
• The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
Common directors.

4
However, despite these provisions, control and regulations, banks in India except the State Bank
of India, continued to be owned and operated by private persons. This changed with the
nationalization of major banks in India on 19 July, 1969.

Nationalization:
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large employer, and a
debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, then
Prime Minister of India expressed the intention of the GOI in the annual conference of the
All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The
paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the
GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as
a "masterstroke of political sagacity.” Within two weeks of the issue of the ordinance, the 10
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more
commercial banks followed in 1980. The stated reason for the nationalization was to give the
government more control of credit delivery. With the second dose of nationalization, the GOI
controlled around 91% of the banking business of India. Later on, in the year 1993, the
government merged New Bank of India with Punjab National Bank. It was the only merger
between nationalized banks and resulted in the reduction of the number of nationalized banks
from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%,
closer to the average growth rate of the Indian economy. The nationalized banks were credited by
some; including Home minister P. Chidambaram, to have helped the Indian economy withstand
the global financial crisis of 2007-2009.

Liberalization:
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,

5
Licensing a small number of private banks. These came to be known as New Generation
techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be set
up), which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-named as
Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has seen rapid growth with
Strong contribution from all the three sectors of banks, namely, government banks, private banks
And foreign banks. The next stage for the Indian banking has been setup with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may
be given voting rights which could exceed the present cap of 10%,at present it has gone up to
49% with some restrictions. The new policy shook the Banking sector in India completely.
Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4)
of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working
for traditional banks. All this led to the retail boom in India. People not just demanded more from
their banks but also received more.11Currently (2007), banking in India is generally fairly mature
in terms of supply, product range and reach-even though reach in rural India still remains a
challenge for the private sector and foreign banks. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. The Reserve Bank of India is an
autonomous body, with minimal pressure from the government. The stated policy of the Bank on
the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly
been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its
services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M&As, takeovers, and asset
sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years

6
critics have charged that the non-government owned banks are too aggressive in their loan
recovery efforts in connection with housing, vehicle and personal loans. There are press reports
that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

Introduction to Bank Marketing

We define bank marketing as follows: “Bank marketing is the aggregate of functions, directed at
providing services to satisfy customers’ financial (and other related) needs and wants, more
effectively and efficiently that the competitors keeping in view the organizational objectives of
the bank”. This aggregate of functions is the sum total of all individual activities consisting of an
integrated effort to discover, create, arouse and satisfy customer needs. This means, without
exception, that each individual working in the bank is a marketing person who contributes to the
total satisfaction to customers and the bank should ultimately develop customer orientation
among all the personnel of the bank. Different banks offer different benefits by offering various
schemes which can take care of the wants of the customers.

Marketing helps in achieving the organizational objectives of the bank. Indian banks have duel
organizational objective – commercial objective to make profit and social objective which is a
developmental role, particularly in the rural area.

Marketing concept is essentially about the following few thing which contribute towards banks’
success:

1) The bank cannot exist without the customers.

2) The purpose of the bank is to create, win, and keep a customer.
3) The customer is and should be the central focus of everything the banks does.
4) It is also a way of organizing the bank. The starting point for organizational design should
be the customer and the bank should ensure that the services are performed and delivered
in the most effective way. Service facilities also should be designed for customers’
convenience.

7
 5) Ultimate aim of a bank is to deliver total satisfaction to the customer.
6) Customer satisfaction is affected by the performance of all the personal of the bank.

Market Research in Indian banks

After enquiring with few public and private sector banks whether they had undertaken any market
research studies. The following areas of market research were considered for the study:

(a) New service development,

(b) New service product acceptance,
(c) Research and development of existing financial service,
(d) Bank images study,
(e) Measuring bank’s advertising effectiveness,
(f) Measurement of market potentials,
(g) Market research of competitive service products,
(h) Customer’s opinion study,
(i) Customer profile study, and

(j) Market share analysis.

Marketing Concepts- and its application to banking

When we apply marketing to the banking industry, the bank marketing strategy can be said to
include the following:

i. A very clear definition of target customers.

ii. The Development of marketing mix to satisfy customers at a profit for the bank.

8
 iii. Planning for each of the ‘source’ markets and each of the ‘user’ markets (A bank needs to
be doubly market – oriented – it has to attract funds as well as users of funds and
services).
iv. Organization and Administration.

COMPANY PROFILE OF ICICI BANK

____________________________________________________

INTRODUCTION:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82
billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year ended
September 30, 2008. The Bank has a network of about 1,400 branches and 4,530 ATMs in India
and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and nonlife
insurance, venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United
Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are
listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New
York Stock Exchange (NYSE).

9
History:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all
stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors
in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing to
Indian businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries and affiliate
like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. After consideration of various
corporate structuring alternatives in the context of the emerging competitive scenario in the
Indian banking industry, and the move towards universal banking, the managements of ICICI and
ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of
ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of

10
Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the
ICICI group's financing and banking operations, both wholesale and retail, have been integrated
in a single entity.
ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees. ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of
India) is India's largest private sector bank in market capitalization and second largest overall in
terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a
network of over 1,399 branches, 22 regional offices and 49 regional processing centers, about
4,485 ATMs (at the end of September 2008), and 24 million customers (at the end of July 2007).
ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset management.
(These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India. ICICI
Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai
and the National Stock Exchange of India Limited, and its ADRs on the New York Stock
Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet among
Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives
offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned
subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative
offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab
Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in
particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in
total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. 1955: The
Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the
initiative of World Bank, the Government of India and representatives of Indian industry, with the
objective of creating a development financial institution for providing medium-term and long-
term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar is elected as the first
Chairman of ICICI Limited. ICICI emerges as the major source of foreign currency loans to

11
Indian industry. Besides funding from World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international markets.

CORPORATE PROFILE
____________________________________________________

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,016 branches and about 5,219 ATMs in
India and presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United
Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK
subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New
York Stock Exchange (NYSE).

12
MORE THAN 20 COUNTRIES ARE INVOLVEDIN ICICI BANKING.

13
 SERVICES GIVEN BY ICICI BANK

ICICI gives;
Personal Banking:
• Deposits
• Loans
• Cards
• Investments
• Insurance
• Demat services
• Wealth management

NRI Banking:
• Money Transfer
• Bank accounts
• Investments
• Property Solutions
• Insurance
• Loans

Business Banking:

• Corporate net banking

• Cash Management
• Trade services
• Frontline
• SME services
• Online taxes

• Custodial services

14
 BOARD OF DIRECTORS
Name Designation
K V Kamath Chairman
Homi R Khusrokhan Director
M S Ramachandran Director
M K Sharma Director
V Prem Watsa Director
Sandeep Bakhshi Deputy Managing Director
K Ramkumar Executive Director

Sridar Iyengar Director

Anup K Pujari Director
Tushaar Shah Non Executive Director
V Sridar Director
Chanda D Kochhar Managing Director & CEO
N S Kannan Executive Director & CFO
Rajiv Sabharwal Executive Director

15
 VISION AND MISSION OF ICICI BANK

Vision:

To be the leading provider of financial services in India and a major global bank.

Mission:

We will leverage our people, technology, speed and financial capital to:

• Be the banker of first choice for our customers by delivering high quality, world-class
products and services.

• Expand the frontiers of our business globally.

• Play a proactive role in the full realisation of India’s potential.

• Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.

• Maintain high standards of governance and ethics.

• Contribute positively to the various countries and markets in which we operate.

• Create value for our stakeholders.

16
 AWARDS AND ACHIEVEMENTS OF ICICI BANK

• For the sixth time in a row, ICICI Bank has received the Most Preferred Auto Loan Brand
in the Financials Services category at the CNBC Consumer Awards

• ICICI Bank has won Gold in the Readers Digest Trusted Brands 2010 Consumer award in
the Finance category for a) Best Bank and b) Best Credit Card Issuing Bank

• ICICI Bank won the Best Trade Finance Bank and Best Foreign Exchange Bank, India at
the Finance Asia Country Awards for Achievement, Hong Kong

• ICICI Bank won the Best Local Bank by Trade and Forfaiting Review, UK

• ICICI Bank received the Best Trade Finance Bank in India by The Asset Triple A Award,
Hong Kong

• ICICI Bank was awarded the Best Trade Finance Bank in South Asia by GTR (Global
Trade Review), UK

• ICICI Bank amongst the top 3 to receive the FE- EVI Green Business Leaders Award, in
the banking industry

• ICICI Bank wins the Asian Banker Award for Best Banking Security System

• ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable
global brand by Brand Z Top 100 Global Brands Report.

• ICICI Bank has been ranked 1st in the term money category, from a list of 38 leading
Banks by the German magazine, Euro. Since commencement of business two years ago in
the German market, this is the 5th certification/award including 2 certifications from
Stiftung warrenttest (for Savings and Term Deposits) and three "Best Bank" rankings by
Euro magazine.

• Forbes' 2000 most powerful listed companies' survey ranked ICICI Bank 4th among the
Indian companies and 282nd globally.

17
• ICICI Bank was awarded The Asian Banker Achievement Award 2009 for Cash
Management in India.

• The Economic Times-Corporate Dossier Annual Survey of India Inc's Most Powerful
CEOs featured Ms Chanda Kochhar, MD and CEO, as the most powerful women CEO in
India. She was ranked 13th in the overall power list.

• ICICI Group Global Private Clients (GPC) has won the coveted 'Euromoney Private
Banking Award 2010' for Best Bank in the Super-Affluent Category (USD 500,000 to
USD 1 million) - India. The other categories in which GPC picked up awards were:

o Fixed Income Portfolio Management

o Lending/Financing Solutions

o Precious Metals Investment

o Private Equity Investment

o Specialized Services - Entrepreneurs

o FX/Rates Derivatives Supplier

• ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009

• ICICI Bank won the second prize in the Six Sigma Excellence Awards, conducted by
Indian Statistical institute, Bangalore for "Improving Sales for TV Banking business"

• Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the "Padma Bhushan"

18
 SUBSIDIARY COMPANIES

On March 31, 2010, ICICI Bank had 17 subsidiaries as listed in the

Following table:

Domestic Subsidiaries International Subsidiaries

ICICI Prudential Life Insurance ICICI Bank UK PLC

Company Limited

ICICI Lombard General Insurance ICICI Bank Canada

Company Limited

ICICI Prudential Asset Management ICICI Bank Eurasia Limited

Company Limited Liability Company

ICICI Prudential Trust Limited ICICI Securities Holdings Inc.2

ICICI Securities Limited ICICI Securities Inc.3

ICICI Securities Primary

Dealership ICICI International Limited

Limited

ICICI Venture Funds Management

Company Limited

ICICI Home Finance Company Limited

19
ICICI Investment Management

Company Limited

ICICI Trusteeship Services Limited

ICICI Prudential Pension Funds

Management Company Limited1

1. Subsidiary of ICICI Prudential Life Insurance Company Limited.

2. Subsidiary of ICICI Securities Limited.

3. Subsidiary of ICICI Securities Holdings Inc.

COMPANY PROFILE
OF
HDFC BANK
____________________________________________________

HISTORY
Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd,
was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by

20
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval
from RBI, for setting up a bank in the private sector. The bank was incorporated with the name
'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its
operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412
branches and over 3275 ATMs across India.

AMALGAMATIONS
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank
promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the
first two private banks in the New Generation Private Sector Banks to have gone through a
merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank.
With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were
Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crores.

MISSION AND BUSINESS STRATEGY

Mission is to be "a World Class Indian Bank", benchmarking 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 Bank's risk appetite.

21
Business strategy emphasizes the following:

 Increase the market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and not on
quantity and delivering high quality customer service.
 Leverage the technology platform and open scalable systems to deliver more products
to more customers and to control operating costs.
 Maintain current high standards for asset quality through disciplined credit risk
management.
 Develop innovative products and services that attract the targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop products and services that reduce the cost of funds.
 Focus on high earnings growth with low volatility.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1412 branches spread over 528 cities across India. All branches are linked on an online real-time
basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centres where its corporate customers are located as well as the need to build a strong
retail customer base for both deposits and loan products. Being a clearing/settlement bank to
various leading stock exchanges, the Bank has branches in the centre’s where the NSE/BSE have
a strong and active member base.

22
The Bank also has a network of about over 3295 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

MANAGEMENT
Mr. Jagdish Capoor is the chairman of bank and Mr. Aditya Puri is the managing director of
bank. The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior executives
representing HDFC are also on the Board. Senior banking professionals with substantial
experience in India and abroad head various businesses and functions and report to the Managing
Director. Given the professional expertise of the management team and the overall focus on
recruiting and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.

BUSINESSES
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 corporates 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. 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:

23
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 Bank.
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.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA. 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.

Treasury:
Within this business, the bank has three main product areas - Foreign Exchange, Local Currency
Money Market & Debt Securities, and Equities. 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.

AWARDS AND ACHIEVEMENTS

Euro money Awards 2009 'Best Bank in India'

Economic Times Brand Equity & Nielsen Most Trusted Brand - Runner Up
Research annual survey 2009

Asia Money 2009 Awards Best Domestic Bank in India'

IBA Banking Technology Awards 2009 'Best IT Governance Award - Runner up'

Global Finance Award 'Best Trade Finance Bank in India for 2009

24
 IDRBT Banking Technology Excellence ‘Best IT Governance and Value Delivery'
Award 2008

Asian Banker Excellence in Retail Financial 'Asian Banker Best Retail Bank in India Award
Services 2009 '

FINANCIAL RESULTS

For the quarter ended June 30, 2009, the Bank earned total income of Rs.5,136.8 crores, an
increase of Rs.921.6 crores over the corresponding quarter ended June 30, 2008. Net revenues
(net interest income plus other income) were Rs.2,899.2 crores for the quarter ended June 30,
2009, an increase of 25.1% over the corresponding quarter of the previous year. Interest earned
(net of loan origination costs and amortization of premia on investments held in the Held to
Maturity (HTM) category) increased from Rs.3,621.7 crores in the quarter ended June 30, 2008 to
Rs.4,093.1 crores in the quarter ended June 30, 2009. Net interest income (interest earned less
interest expended) for the quarter ended June 30, 2009 was Rs.1,855.6 crores, driven by average
asset growth of 10.5% and a net interest margin (NIM) of 4.1%. During the quarter, a portion of

25
the bank’s surplus liquidity was parked in short-term money market instruments and liquid
mutual funds. Most of this interest income was tax-free. Adjusted for the corresponding offset of
a lower tax rate, the NIM was stable at around 4.2%.
Other income (non-interest revenue) registered strong growth of 75.9% from Rs.593.4 crores for
the quarter ended June 30, 2008 to Rs.1,043.7 crores for the quarter ended June 30, 2009. The
largest contributor to ‘Other Income’ for the quarter was fees and commissions of Rs.649.3
crores, up 27.0% over the corresponding quarter ended June 30, 2008. The other two major
components of other income were foreign exchange/derivatives revenues of Rs.137.8 crores and
profit/ (loss) on revaluation/sale of investments of Rs.256.0 crores, as against Rs.157.4 crores and
Rs.(77.6) crores respectively, for the quarter ended June 30, 2008. Operating expenses for the
quarter ended June 30, 2009 were Rs.1,380.6 crores, against Rs.1,289.4 crores for the
corresponding quarter ended June 30, 2008, and against Rs.1,396.2 crores for the preceding
quarter ended March, 2009. The core cost to income ratio for the quarter was therefore at 52.2%
as against 53.8% in the quarter ended June 30, 2008. The Operating Profit for the quarter ended
June 30, 2009 grew by 47.8% to Rs.1,518.7 crores over the corresponding quarter of the previous
year. Provisions (other than tax) and contingencies for the quarter were Rs.658.8 crores as against
Rs.657.4 crores in the March 31, 2009 quarter. After providing Rs.253.7 crores for taxation, the
Bank earned a Net Profit of Rs.606.1 crores, an increase of 30.5% over the corresponding quarter
ended June 30, 2000.

Literature Review

1. Introduction

Bank marketing in general and Customer Relationship Management (CRM) in particular are of
vital importance for Indian banks, particularly in the current context when banks are facing
tough competition from other agencies, both local and foreign, that offer value-added services.

Bank Marketing: A Two Pronged Approach

26
- by Dr. (Mrs.) Varsha Varde *

Thus, bank marketing concept, whether "collective" approach or "selective" approach, is a

fundamental recognition of the fact that banks need customer oriented approach. In other
words, bank marketing is the design and delivery of customer needed services worked out by
keeping in view the corporate objectives of the bank and environmental constraints.
The following chart gives an overview of the Two Pronged Approach to Bank Marketing.

27
Various components of the above chart are further elaborated in the

28
 sections which follow.

Principal Aspects of Bank Marketing

3.1 Customer Oriented Services

Services offered by the banks are to be worked out in such a manner that they fulfil the needs of
the customers.

Traditionally, bankers have been accustomed to think in terms of what banks can offer and not
what customers want. However, bank marketing concept requires them to change this
orientation, and start working out schemes and services by keeping changing customer needs as
the focus of their new and novel products. In order to design and deliver customer needed
services, the banks must learn to seek information about the existing and potential customers, and
their perceived and latent needs on a regular and systematic basis.

3.2 Design & Delivery of Such Services

The word design implies that good marketing services need to be properly designed and
painstakingly crafted so as to suit a particular well-defined group of clients. They do not just
emerge effortlessly. Moreover, such properly designed services must be properly traded. In fact,
poor delivery of smartly designed services is just as bad as smart delivery of poorly designed
services. The quality of delivery is to be ensured not only through focussed advertisement, but
also through proper customer services offered at the bank's retail outlets. Customer satisfaction is
a dynamic process and it is necessary to keep pace with rising expectations of the customers.
Further, the development of IT and spread of Internet are opening up newer mechanisms of
customer contact and services.

3.3 Corporate Objectives of the Bank

29
The corporate objectives of the bank are to be worked out within the broad framework of the
national policy. The corporate objective are of two types, Short Term and Long Term.

The Short Term Objectives could be of the type: -

a) increasing profitability of the bank next year,

b) widening customer base by offering new services,
c) increasing growth rate of credit next year, etc.

Dr. (Mrs.) Varsha Varde is M.Sc. & Ph.D. in Statistics, and has been in the field of academics,
projects and consultancy for over 35 years. She has handled various research and training
assignments, and has to her credit a number of published papers and books.

The Long Term Objectives could be: -

a)to rise to number one position in five years,

b) to become the universal bank over the period of next 3 years, etc.

Once the corporate objectives are clearly spelt out, various schemes can be designed to fulfil the
needs of the customers within the framework of the chosen corporate objectives. Further, the
resources made available for systematic marketing efforts are also constrained by policies, vision
and attitudes of the management.

3.4 Environmental & Other Constraints

Environmental and other constraints play an important role in bank marketing decisions.
Generally, the environmental constraints fall into four categories: Economic, Cultural, Legal
and Political.

A thorough understanding of local and national economy is essential for taking effective
decisions about what product to be offered, where it is to be offered, at what price it is to be
offered, and how it is to be offered?

30
Banking schemes which are suitable for a developed economy might not be suitable for a
developing economy. It is essential to have intimate knowledge of income pattern of potential
customers, population growth, nature of industrial and trading activities, extent of agricultural
development, employment levels, wage structures, and other relevant factors, in order to make
decisions about services to be offered.

The cultural environment in which the bank operates also has a bearing on bank marketing
decisions. This includes attitude of local people about saving, borrowing and spending, and also
their traditions and values. The schemes suited for urban sector would be different from those
suited for rural sector.

Legal and political environment mainly constrains the decisions about the price of product to be
offered and the place for offering the product. For example, price of deposits and various types of
advances is constrained by the interest rate policies of the regulators.

Thus, the knowledge of environmental constraints is an essential factor in the designing and
delivery of various types of customer-oriented schemes and services.

4. Marketing Strategy

The marketing strategy consists of a very clear definition of prospective customers and their
needs and the creation of marketing mix to satisfy them. A recent development in

this regard is Customer Relationship Management (CRM). It is a business strategy to learn more
and more about customer behaviour in order to create long term and sustainable relationship
with them. It is a comprehensive process of acquiring and retaining selective customers to
generate value for the bank and its customers.

Under CRM, acquisition of customers is done through personal visits, media advertisement or
word of mouth from existing customers. Customer retention is carried out through data
warehousing and mining tools, customer service and call services, and improved customer value
is obtained through cross-selling and upselling to the retained customers.

31
4.1 Identification of Target Customers & their Needs

This is an important area in formulation of a marketing strategy. Unless the bank has clear idea
about the customers it wants to serve, it is not possible to work out products to satisfy their needs.
This identification process involves: -

 Finding out profile of present customers in terms of their education, occupation, income,
geographical location, population group, age, sex, marital status, products and services
they purchase, their habits, tastes and preferences, their businesses and future prospects,
etc.
 Finding out opinions of existing customers about the services provided by the bank and
their suggestions for improvement in present services and introduction of new services.
 Collecting such information from the persons who are not currently customers of the
bank.

All this can be done by conducting a survey of customers and non-customers of the bank.
Moreover, this process of seeking information about the market must form an integral part of the
system and must be done on a regular basis. The survey would give valuable information about
profiles and opinions of customers and non-customers of the bank, and it can be analysed to find
out the target group of the customers and their felt and latent needs.

The concept of data warehousing and data mining used in CRM helps in seeking information
about individual customers and their needs on a regular and systematic basis. Data warehousing
builds customer wise data by mapping it from various services

and products used by the customers such as deposits, credits, foreign exchange, e-business, safe
custody, lockers, bill collection, etc.

Data mining carries out various types of analysis on collected data to determine customer
behaviour with respect to product, price and distribution channels, and offers a holistic view of
every customer at a given point of time. The customer information gathered by the bank in their
day-to-day banking operations is often sufficient for effective data storage. However, many times,
it needs to be supported by data collected from outside sources and agencies.

32
Further, the Customer Relations Management focuses on customer classification by classifying
the customers into: a high value (a more profitable) customer and a low value (a less profitable)
customer. Once bank differentiates the customers in terms of their profitability and other traits, it
becomes easy for the banks to customize their services and products to maximize overall value of
their customer portfolio.

4.2 Marketing Mix

The second element in formulation of marketing strategy is development of proper marketing

mix, so as to satisfy the needs of the target group of customers. This would involve decisions
regarding product, place, price and promotion. Decisions about product would answer questions
about the design of the services offered to suit customer needs, the desirable hours for offering
such services, the attractive names of such services and so on. Various alternative ways to provide
the basic services might have to be worked out depending on the needs of the various target
groups.

Decisions about place should answer questions about location of the prospective customers and,
therefore, location for offering such services.

Decisions about price should answer questions about right price for services offered, worked out
by taking into consideration the cost of such services, competitor's charges and other factors.

Decision about promotion answers questions about communication with the customer. After
getting information on needs and location of the prospective customer and after designing
schemes to suit their needs, it is necessary to take decisions on making schemes known to the
prospective customers through proper communication media and through proper words, so as to
bring out the salient features of the scheme. Actual delivery of the schemes at the counters and at
the manager's desk also plays a vital role in determining the success of the scheme. Expectations
of the customers in post-reforms period have been changing very fast and customers have started
shifting loyalty to better banks. It is, therefore, all the more necessary to ensure that not only the
felt needs but also the latent needs of the customers are foreseen and satisfied.

33
A very good example of formulation of a market strategy under the "collective" approach is
development of the product, "Kisan Credit Cards". The target group identified for this were
farmers with the purpose of dispensation of agricultural and rural credit to them. Agricultural
credit cards and cash credit facilities which were niche-marketed and were exclusively preserved
for the privileged class of farmers were, thus, extended to the small and marginal farmers since
1999.

Keeping this need of target group in mind, the decision on product was made. This product
decision involved questions regarding types of needs to be covered, number of withdrawals and
repayments to be permitted, basis of determination of limits, validity period of the cards, its re-
scheduling, the name of the product, and so on. The place decision answered questions about the
location where the KCCs can be obtained. This involved all branches engaged in agricultural
lending. Price decision required answering questions on margins, collateral, interest rates to be
charged for different slabs, and so on. The promotion decisions answered questions regarding
mode of advertising the KCCs so that it becomes widely known. These methods included radio
and TV commercials and personal contacts by the employees of the bank apart from news paper
insertions.

An example of marketing strategy under "selective approach" is selecting a depositor with good
track record and offering him services for "car loan", "housing loan", etc., by personal contacts or
through tele-marketing or selecting a valuable borrower, keeping track of his interests and
offering him some surprise gifts to ensure manifold increase in his satisfaction. This approach
requires thinking ahead of time to find out what customers might need in future and fulfil these
needs.

5. Promotional Strategy for Bank Marketing

Even if a scheme is properly developed and designed to suit customer needs, it will not pick up,
unless it is properly marketed at all levels. Some of the strategies which would help banks in their
promotional efforts are given below: -

34
 To promote "Personal Selling", whether performed by counter clerk, bank officer or
customer service representatives of the bank.

 To ensure "Proper Knowledge and Awareness" of various schemes of the bank among the
employees of the bank.

 To make efforts so that the "Selling Attitude" becomes part of the "Corporate Culture" of
the bank.

 To impart "Sales and Product Training" including tele-banking and net-banking concepts
to employees of the bank. One of the ways of doing this is to organise periodical in-branch
departmental meetings of the employees addressed by Branch Managers / Departmental
Heads.

 To develop incentive programmes which reward good-customer oriented selling

behaviour. The incentives need not be necessarily in terms of a cash payment but several
other alternatives can also be thought of, e.g., if a particular employee brings certain
minimum amount of business to the bank, he/she should be eligible for certain special
leave or they can be made members of a special club called "Chairman's Club" for a
particular period. Several other such ways giving cashless incentives to the employees can
be worked out.

 To ensure conversion of the entire employees organization of the bank into a well-
informed, disciplined and professional force committed to the corporate values and
objectives.

 To make effective use of the large network of the retail outlets of the bank visited by a
large number of customers every day. A typical bank customer visits his/her branch two or
more times a month so one can imagine how many customer visits each branch will have
per year. The use of "In-bank Advertising" would, therefore, help a lot in marketing bank
services.

35
  In this connection the bank may have to think of retail shopkeepers' strategy of exhibiting
their products in an attractive manner. This would include: -

(a) Careful physical layout of the branch and creation of inviting environment.
(b) Exhibition windows as found in many departmental stores displaying various
products of the bank in an attractive manner.
(c) Attractive table with glass box on top exhibiting literature on various products
offered by the bank to be kept at an appropriate location on the branch floor.
(d) Creative ideas to exhibit "intangible products" in "tangible manner", e.g., visual
images, small models / photographs of life style, customer could achieve with the
help of proper financial planning done through bank schemes.
(e) Creation and updating of literature on various schemes and services offered by
the bank and ensuring its availability at each branch.
(f) Specially designed in-branch video visuals exhibiting various products and
services of the bank.

 Public sector banks with a large network of branches have an excellent opportunity to
expand customer relationships and provide them with additional complementary services.
Personal contacts in any case are much better as compared to contacts through phones or
Internet.
 In Customer Relationship Management (CRM), results of data warehousing and mining
must be made available to all the concerned employees so that they have complete
knowledge about the value / profit each individual customer adds to the bank, their future
needs and ways and means to satisfy them.

6. Conclusion

In the current context of free market competitive environment, a two pronged approach is
required in the area of bank marketing: -

First is the "collective" approach to satisfy all the customers of the bank and develop a positive
image of the bank in terms of quality service and products. This could be achieved by introducing

36
a system of objective assessment of the standard of customer services / customer satisfaction so as
to identify deficient areas, find out causes for deficiencies and initiate corrective measures.

Second is the "selective" approach concentrating on select valuable customers through a

Customer Relationships Management (CRM) programme to detect the felt and latent needs of
such clients, to develop ways and means to satisfy them and to ensure that such clients are
retained by the bank on sustainable basis for improved customer value.

37
 RESEARCH METHODOLOGY
“Research comprises defining and redefining problems, formulating, hypothesis or suggested
solutions; collecting, organizing and evaluating data, making deductions and at last carefully testing
the conclusions to determine whether they fit the formulating hypothesis.”

There are the different steps that come under the research methodology these are as following

1. Identifying and defining problem/opportunity

2. Planning the research design
3. Selecting a research method
4. Selecting a sampling procedure

Types of data:
Data can be of two types:-

Primary data: In primary data collection, you collect the data yourself using methods such
as interviews and questionnaires. The key point here is that the data you collect is unique to you
and your research and, until you publish it, no one else can have access to it. There are many
methods of collecting primary data and the main methods include:

 Questionnaires
 Interviews
 Focus group interviews
 Observation

Secondary data: Secondary data is data that has already been collected by someone else for
a different purpose to yours. For example, this could mean using:

 Annual Financial Reports.

 Government statistics.
 Internet.

38
  Previous Studies done by others.

Application of the Techniques for the study

Sampling Technique: - Convenience and judgmental -sampling technique is used to collect

the data. Convenience Sampling is a technique in which Sample are selected on the basis of
pure choice of the investigator, convenient to his statistical investigation. Judgmental
sampling is used to collect the data according to the requirements of the investigator to fulfill
some particulars objectives.

Data Collection: - Data has been collected from both the Primary (Questionnaire and
personal meetings) and the secondary (Internet, Books, journals) sources.

Sample Size: - 200 customers (100 HDFC and 100 ICICI)

Area of data collection:- JALANDHAR

Tools and techniques used:- Chi Square test as a test of independence, Hypothesis
testing, Pie Charts, Bar graphs, Column graph, ranking, probability distribution, tables etc.

39
 Data Analysis

Frequency table for the demographic details of the ICICI

respondent’s
Table 3.1

AGE OF THE RESPONDENTS

Age Frequency Percent

25yrs-35yrs 23 23
36yrs- 45yrs 32 32
46yrs-55yrs 17 17
Above 55 yrs 28 28
Total 100 100
Interpretation:
From the above table 23% respondents are belonging to the age category of
25yrs-35yrs and 32% and 17% respondents are belonging to the category of
36yrs-45yrs and 46yrs-55yrs respectively. 28% respondents are belonging to
the category of above 55yrs.
Graph: 3.1

35
30
25
25yrs-35yrs
20
36yrs-45yrs
15 46yrs-55yrs
10 above 55 yrs
5
0
frequency

40
Table 3.2

GENDER OF THE RESPONDENTS

Frequency Percent
FEMALE 50 50
MALE 50 50
Total 100 100

Interpretation:
From the above table 50% respondents are belonging to the category of
female and the remaining 50% respondents are belonging to the category of
male.

Graph: 3.2

0%
0%

Male
Female
50% 50%

Table3.3

41
 EDUCATIONAL OUALIFICATION OF THE RESPONDENTS

Frequency Percentage
School 9 9
UG 29 29
PG 45 45
Professional course 10 10
M.phil/Phd 7 7
Total 100 100

Interpretation:
From the above table 9% of respondents are belonging to the category of school
and professional course. And 29.0% of respondents are belonging to the category of
UG. And 45% of respondents are belonging to the category of PG and 7% of
respondents are belonging to the category of M.phil/phd.
Graph 3.3:

Table 3.4:

OCCUPATION OF THE RESPONDENTS

42
Interpretation:
Frequency Percentage
Salaried persons 81 81
Professionals 4 4
Supervisors 4 4
Managerial 11 11
Total 100 100

From the above table 81% of respondents are falling under the category of salaried
person. And 4% of respondents are falling under the category of professionals and
supervisor. And 11% of respondents are belonging to the category of managerial.
Graph 3.4:

11%
4%
4%
salaried persons
professionals
supervisors
managerial

81%

Table 3.5

INCOME LEVEL OF THE RESPONDENTS

Frequency Percentage
Rs. 5000-15000 55 55
Rs. 15001-25000 26 26

43
 Rs. 25001- 35000 14 14
Above Rs 45000 5 5
Total 100 100

Interpretation:

From the above table 55% of respondents are falling under the income range
between Rs.5, 000-Rs.15, 000. And 26% are falling under the income range
between Rs.15, 001-Rs.25, 000. And 14% of respondents are falling under the
income range between Rs.25, 001-Rs.35, 000. And 5% of respondents are falling
under the income range between Above Rs.45, 000.

Graph 3.5

60
50

40
30
Respondents
20
10
0
5000-15000 15001-25000 25001-35000 35001-45000

Table 3.6:
REASON TO CHOOSE THE SERVICE
Interpretation:
Frequency Percentage
Efficient customer service 46 46
Time saving 26 26
Transaction cost 10 10
Technology 5 5
More ATMs 44 13 13
100 100
From the above table 46% of respondents are saying that the reason to choose
ICICI is they are providing efficient customer service. And 26% of respondents are
saying that the reason to choose ICICI is they are reducing our waiting time. And
10% of respondents are saying that the reason to choose ICICI is Transaction costs.
And 5% of respondents are saying that the reason to choose ICICI is Technology.
And 13% of respondents are saying that the reason to choose ICICI is they are
provided more ATM facility.
Graph 3.6

50

40

30

20

10
0
efficient customer service time saving transaction cost technology more atms

Table 3.7

TYPE OF SERVICE PREFER THE MOST

Frequency Percentage
ATM service 62 62
Internet banking 10 10
Mobile banking 11 11
Core banking system 17 17
Total 100 100

Interpretation:

From the above table 62% of respondents prefer the ATM service. And 10% of
respondents are preferred the internet banking and mobile banking. And 11% of
respondents prefer the core banking system

Graph 3.7

45
 atmservice
internet banking
mobile banking
core bankingsystem

Table 3.8

AGE OF THE HDFC RESPONDENTS

Frequency Percentage
25-35 yrs 92 92
Above 55 yrs 8 8
Total 100 100

Interpretation:

From the above table 92% of respondents are falling under the age group of 25yrs-
35yrs. And 8% of respondents are falling under the group of above 55yrs.

Graph 3.8

46
 100

80

60

40

20

0
25-35 yrs above 55 yrs

Table 3.9

GENDER OF THE HDFC RESPONDENTS

Frequency Percentage
Female 40 40
Male 60 60
Total 100 100

Interpretation:

From the above table 40% of respondents are belonging to the female category and
60% of respondents are belonging to the male category.

Graph 3.9

47
 60
50
40
30
20
10
0
male female

Table 3.10

EDUCATIONAL LEVEL OF HDFC RESPONDENTS

Frequency Percentage
UG 7 7
PG 70 70
Professionals 20 20
M.phill/ Phd 3 3
Total 100 100

Interpretation:

From the above table 7% of respondents are belonging to the category of UG. And
70% of respondents are belonging to the category of PG. And 20% of respondents
are belonging to the category of professionals. And 3% of respondents are
belonging to the category of M.Phil/Ph.D.

Graph3.10:

48
 70
60
50
40
30
20
10
0
ug pg professionals M.phill/ Phd

Table 3.11

OCCUPATION OF THE HDFC RESPONDENTS

Frequency Percentage
Salaried person 76 76
Business man 10 10
Professionals 10 10
Managerial 4 4
Total 100 100

Interpretation:

From the above table 76% of respondents belong to the category of salaried person.
And 10% of respondents are belonging to the category of businessman and
professionals. And 4% of respondents are belonging to the category of managerial.

Graph 3.11

49
 80
70
60
50
40
30
20
10
0
salaried person business man professionals managerial

Table 3.12

INCOME LEVEL OF THE ICICI RESPONDENTS

Frequency Percentage
Rs. 5000-15000 54 54
Rs. 15001-25000 8 8
Rs. 25001- 35000 30 30
Above Rs 45000 8 8
Total 100 100

Interpretation:

From the above table 54% of respondents are falling under the income level of
Rs.5, 000-Rs.15, 000. And 8% of respondents are falling under the income level of
Rs.15, 001-Rs.25, 000 and Rs.35, 001-Rs.45, 000. And 30% of respondents are
falling under the income level of Rs.25, 001-Rs.35, 000. And 8% of respondents are
falling under the income level of above Rs.45, 000.

Graph 3.12

50
 60
50
40
30
20
10
0
5000-15000 15001-25000 25001-35000 above 45000

Table 3.13
REASON FOR CHOOSING HDFC SERVICES

Frequency
EFFICIENT 32
CUSTOMER SERVICE
EFFICIENT COMPLAINTS 30
HANDLING
TIME SAVING 22
TRANSACTION COSTS 9
TECHNOLOGY 5
RELIABLE 2
100

51
Graph 3.13

Reliable
2
Technology 5
Transaction cost 9
Time saving
22
Efficient complaintshandling 30
Efficient customer service 32

0 5 10 15 20 25 30 35

Interpretation:
From the above table 32% of respondents are saying that the reason to choose
HDFC is they are providing efficient customer service and efficient complaint
handling and 22% of respondents are saying that the reason to choose HDFC is they
are reducing our waiting time, technology and reliable and 9% respondents are
saying that the reason to choose HDFC is Transaction costs.

52
53
 Chi-Square Test -I
Hypothesis:
Ho: There is no significant relationship between the educational qualification of the
respondents and the reason to choose the service.

Ha: There is a significant relationship between the educational qualification of the

respondents and the reason to choose the service.

Value Df Asymp. Sig( 2

sided)
Pearson Chi- 8.739 16 .924
square

Interpretation:
From the above table the calculated chi-square statistic in this case is .924. Since the calculated
Chi-square is above 0.05. The null hypothesis is rejected and the alternate hypothesis is accepted.

So there is a significant relationship between the educational qualification of the respondents and
the reason to choose the service.

54
 Chi-Square Test - II
Hypothesis:

Ho: There is no significant relationship between the occupation of the

respondents and the type of service they prefer the most.

Ha: There is no significant relationship between the occupation of the

respondents and the type of service they prefer the most.

Value Df Asymp. Sig( 2

sided)
Pearson Chi- 13.186 9 .154
square

Interpretation:
From the above table the calculated chi-square statistic in this case is .154. Since the calculated
Chi-square is below 0.05. The null hypothesis is accepted and the alternate hypothesis is rejected.
So there is no significant relationship between the occupation of the respondents and the type of
service they prefer the most.

55
 Findings:

 Many of the respondents to choose the ICICI bank is because the bank
is providing more ATM facility to the customers.

 Many of the respondents are saying the reason to choose the services
of the ICICI bank is because they are good in efficient customer service.

 Income level of the respondents who are having an account in ICICI

bank falling under the income level of Rs. 5,000 – Rs.15.000 as we
know that there are more salaried persons and bank get there savings
or amount to be deposited on time.

 The age group of 36yrs – 45yrs respondents are mostly having an

account in ICICI bank as they are now more matured people, they can
decide weather they have to spend there money or save for the future.

 The both gender are equally having an account in ICICI bank as we

know that there are more educated customers.

 More than 50% of the respondents are aware of the many services
rendered by the ICICI bank. The few are deposit of cash in ATM, request
for cheque book in ATM, end of the day balance in mobile, etc.

 Sum of the respondents to choose the ICICI bank is because the bank is
more reliable to the customers.

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 Many of the respondents are saying the reason to choose the services
of the
ICICI bank is because they are good in efficient customer service and
efficient complaint handling.

 Income level of the respondents who are having an account in HDFC

bank
falling under the income level of Rs. 5,000 - Rs.15.000 and has low
savings ,as they belong to the age group of 25yrs - 35yrs respondents
mostly is having an account in HDFC bank as they are matured than the
other people more than 35yrs.

 The male gender is mostly having an account in HDFC bank as we get

to know that females are less aware .

 Many of the respondents are not aware of the services rendered by the
HDFC bank also. The few are withdrawing cash from ATM, doing online
transaction, end of the day checking balance on mobile, etc.

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 Recommendations:

 Since many of the respondents are not aware of there key services. The
bank has to take some initiatives.

 The bank can post a list of services that they are rendered to the
customers inside the bank premises and they can post demo of all
these services in their bank website.

 They can concentrate more on the respondents are falling under the
age group 25yrs – 35yrs.

 The HDFC bank can concentrate on customer complaints handling.

 The HDFC bank can concentrate on the female gender.

 The bank can also send a post to there customers by informing there
services and how to proceed with that and all details they can mention
it in the post.

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 Conclusions:

 Since both the banks are competing equally with each other.

 But ICICI bank is little bit below the line in customer complaints
handling when compared to HDFC bank.

 The HDFC bank is little bit below the line in concentrating on female
customers when to ICICI bank.

 Both male and females have 50%-50% of accounts and they were
dealing with the ICICI bank.

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 Questionnaire

Personal details
1. Name:
2. Age:
a) 25yrs- 35 yrs
b) 36 yrs - 45yrs
c) 46 – 55 yrs
d) Above 55yrs
3. Gender:
a) Male □
b) Female □
4. Educational Qualification:
a) Illiterate □ b) School □ c) UG □
d) PG □ e) Professional Course □ f) Others □
5. Occupation:
a) House wife □ b) Students □ c) Salaried person □
d) Business man □ e) Professionals □ f) Supervisor □
g) Managerial □ h) pensioner □
6. Income level:
a) Rs.5, 000 – Rs.15, 000 b) Rs.15, 001-Rs.25, 000

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c) Rs.25, 001- Rs.35, 000 d) Rs.35, 001-Rs.45, 000
e) Above Rs. 45,000

INFORMATION FROM RESPONDANTS

7. In which bank do you have an account?
a) ICICI bank □
b) HDFC bank □

8. What is the reason to choose the services of the bank?

a) Efficient customer service □ b) efficient complaints handling □
c) Time saving □ d) transaction costs □
e) Technology □ f) Others _________ please specify

9. What type of services do you prefer the most?

a) ATM service □ b) Internet Banking □
c) Mobile Banking □ d) Core banking system □
e) Others _____________ please specify

Customer service questionnaire

Please use the suitable numeric to give your responses for the following questions
-2=strongly disagree, -1= disagree, 0= neutral, 1= agree, 2 =strongly agree

ATM Service

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1 I am facing problems in withdrawing cash from ATM.
2 I am facing problems like insufficient cash in ATM.
3 ATM services are useful for me to deposit cash and cheques
4 ATM services are useful for me to request for cheque book
5 ATM services are useful for me to get the enquiry statement of my account.

Internet Banking
1 Internet banking helps me to transfer funds from the bank to the personalized transactions
2 Internet banking saves me time for the banking transactions
3 Internet banking helps me in bill payments
4 Internet banking secures the money transactions
5 Internet banking helps in online trading

Mobile banking
1 Mobile banking is useful for me to know the end of day account balance.
2 Mobile banking is useful for me to know the cheque details
3 Mobile banking is useful for me to know the Debit/credit above certain limit in my account.
4 Mobile banking is useful for me to stop inward/outward cheques.
5 Mobile banking is useful for my bill payments
6 Mobile banking helps me to know about the debit/credit details
7 Mobile banking provides me a support for ticketing, recharging mobiles etc.

Core Banking system

1 Core banking system helps me to transfer funds from different branches
2 Core banking system makes me convenient to know about the deposit details
3 Core banking system helps me to protect my personal information
4 Core banking system helps me for the ATM service transactions
5 Core banking system helps me for the internet banking transactions

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 Bibliography &References
www.hdfc.co.in

www.icicibank.com

www.bankmarketingpros.com

www.ezine@rticles.com

www.googlesearch.com

www.iupindia.org

www.ebscohostsearch.com

www.emeraldinsight.com

Marketing management I (In 2nd semester)

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