Cip Report (HDFC Bank)

INDUS BUSINESS ACADEMY
Lakshmipura, Thataguni Post,

Kanakapura Main Road,
Bengaluru 560 062, INDIA
www.iba.ac.in
“To understand the B2B user segment of HDFC merchant

establishment business and its penetration level along with
HDFC managed programs at Puttenahalli Branch, Bangalore”
A Project Report for the partial fulfilment of the requirement for

Post-Graduate Diploma in Management
Subject: Corporate Internship Program
Under the Guidance

of
Prof. J. B. Shetty Shri. Deepak Mahapatra
Professor& Industry Mentor
Faculty Mentor AVP &Branch Manager,
Indus Business Academy HDFC Bank ltd.
Bangalore Puttenahalli Branch, Bangalore
Submitted by
N Akhaya Kumar Dora- FPB1719/027
Indus Business Academy, Bengaluru, India
Mobile: +91 9777840815 Email: nakhayakd@gmail.com
Property of IBA, all rights reserved

DIRECTOR’S CERTIFICATE
This is to certify that Mr N Akhaya Kumar Dora (FPB1719/027) student of

Post Graduate Diploma in Management at Indus Business Academy, Bengaluru has
done a Corporate Internship Program at HDFC Bank, Puttenahalli Branch,
Bangalore.
He has submitted his Corporate Internship Report entitled “To Understand

the B2B User Segment of HDFC Merchant Establishment Business and Its
Penetration Level along with HDFC Managed Programs at Puttenahalli
Branch, Bangalore” in partial fulfilment of the requirement for the “Corporate
Internship Program (CIP)” for 60 days (during 16th April 2018 to 16th Jun. 2018) of
PGDM at Indus Business Academy, Bengaluru.
To the best of my knowledge, this report has not been previously submitted
as part of another Post-Graduate Degree / Diploma or similar titles of any other
Business School or Management Institution or University.
(Dr. Subhash Sharma)

Dean
Indus Business Academy
Bangalore – 560082, INDIA
GUIDE’S CERTIFICATE
This is to certify that Mr N Akhaya Kumar Dora (FPB1719/027) is a bona fide

student of Indus Business Academy (IBA), Bengaluru and he is presently pursuing
Post Graduate Diploma in Management (PGDM) at this institute.
He has submitted his Corporate Internship Project report entitled “To

Understand the B2B User Segment of HDFC Merchant Establishment
Business and Its Penetration Level along with HDFC Managed Programs at
Puttenahalli Branch, Bangalore” in partial fulfilment of the requirement for the
“Corporate Internship Program (CIP)” for 60 Days (during 16th April 2018 to
16thJune. 2018) of PGDM at Indus Business Academy, Bengaluru.
To the best of my knowledge, this report has not been previously submitted
as part of another Post-Graduate Degree /Diploma or similar titles of any other
Business School or Management Institution or University.
(Prof J.B.Shetty)
Professor and Faculty Guide
Date: ………………….
STUDENT’S DECLARATION
I, Mr N Akhaya Kumar Dora am a bona fide student of Indus Business

Academy (IBA), Bengaluru and presently pursuing PGDM, 2017-19 Batch and
hereby declare that the Corporate Internship Project report entitled “To Understand
the B2B User Segment of HDFC Merchant Establishment Business and Its
Penetration Level along with HDFC Managed Programs at Puttenahalli
Branch, Bangalore” submitted in partial fulfilment of the requirements for the
degree of Post Graduate Diploma in Management at Indus Business Academy,
Bengaluru.
This is my ORIGINAL WORK and the findings and conclusions of this report
are based on my personal study and experience during Corporate Internship
assignment, which are not submitted anywhere else for award of any other post
graduate degree / diploma / fellowship / any other similar title in any other Business
School or Management Institution or University.
(N Akhaya Kumar Dora)

Regn No: FPB1719/027
Batch: 2017-19 Corporate Internship Report N. Akhaya Ku. Dora FPB1719/027
ACKNOWLEDGEMENT
It is really a matter of pleasure for me to get an opportunity to thank all the

persons who contributed directly or indirectly for the successful completion of the
project report, “To Understand the B2B User Segment of HDFC Merchant
Establishment Business and Its Penetration Level along with HDFC
Managed Programs at Puttenahalli Branch, Bangalore”.
I am highly indebted to the entire Team of HDFC Bank Ltd, for their
guidance, moral support and constant supervision throughout.
I take this opportunity to extend my sincere thanks to Mr. Manish Jain, CEO,
Dr. Subhash Sharma, Director and Prof. Suresh Chandra, Coordinator for offering
a unique platform to earn practical exposure.
I wish to express my gratitude to the AVP and Branch Manager Mr. Deepak
Mahapatra of HDFC Bank, Puttenahalli Branch, Bangalore for giving mean
opportunity to be a part of their esteem organization and enhance my knowledge by
granting permission to do a Corporate Internship Program. I am thankful to them, for
their support and encouragement throughout the tenure of the project. Also I am
thankful to my faculty guide Prof.J.B.Shetty from Indus Business Academy,
Bangalore, for being a source of support during this training period.
(N Akhaya Kumar Dora)

Regn No: FPB1719/027
Date: ………………….
Indus Business Academy Page | i

For Academic Purpose Only
TABLE OF CONTENTS
ACKNOWLEDGEMENT............................................................................................. i
TABLE OF CONTENTS ............................................................................................ ii
LIST OF TABLES .................................................................................................... iv
LIST OF FIGURES .................................................................................................... v
ABSTRACT .......................................................................................................... vi
CHAPTER 1 - INDUSTRY PROFILE......................................................................... 1

1.1 PORTER’S FIVE FORCES MODEL .................................................................. 1
1.2 INDUSTRY ANALYSIS OF HDFC BANK ........................................................... 2
1.3 COMPANY PROFILE ..................................................................................... 3
1.3.1 History .......................................................................................... 4
1.3.2 Milestones .................................................................................... 8
1.3.3 Mission ......................................................................................... 9
1.3.4 Promoter....................................................................................... 9
1.3.5 Business Philosophy................................................................... 10
1.3.7 Wholesale Banking ..................................................................... 10
1.3.8 Retail Banking ............................................................................ 10
1.3.9 Capital Structure ......................................................................... 11
1.3.10 Business Focus .......................................................................... 11
1.3.11 Distribution Network.................................................................... 12
1.3.12 Management .............................................................................. 12
1.3.13 Technology ................................................................................... 14
1.3.14 Awards and Achievements – Banking Services .......................... 14
1.4 PRODUCT PROFILE .................................................................................... 16
1.5 HDFC BANK’S MERCHANT ESTABLISHMENT OPERATION ............................. 16
1.6 SWOT ANALYSIS ...................................................................................... 31
1.7 ORGANIZATION CHART OF FINANCE FUNCTION IN BANK ............................... 33
1.8 ORGANISATION STRUCTURE OF BRANCH .................................................... 34
1.9 BUSINESS PROFILE ................................................................................... 34
1.10 FUNCTION OF THE BANK ............................................................................ 51
1.11 ROLES OF MANAGED RESOURCES.............................................................. 52
1.12 RETAIL BANKING PRODUCTS AND SERVICES ............................................... 63
Indus Business Academy Page | ii

CHAPTER – 2 PROBLEM DEFINITION AND KEY RESULT AREAS .................... 66

2.1 PROBLEM DEFINITION ................................................................................ 66
2.2 KEY RESULT AREAS .................................................................................. 66
CHAPTER – 3 ANALYSIS AND INTERPRETATION .............................................. 69

3.1 RESEARCH METHODOLOGY ....................................................................... 69
3.1.1 Background of the Problem ........................................................ 69
3.1.2 Statement of the Problem ........................................................... 69
3.1.3 Objective of the Study................................................................. 70
3.1.4 Methodology ............................................................................... 71
3.1.5 Research Design ........................................................................ 71
3.1.6 Actual Collection of Data ............................................................ 72
3.1.7 Technique for Analysis ............................................................... 72
3.1.8 Field Work .................................................................................. 73
3.2 FINANCIAL PERFORMANCE ......................................................................... 74
CHAPTER 4 – FINDINGS, SUGGESTIONS AND CONCLUSION .......................... 94

4.1 FINDINGS .................................................................................................. 94
4.2 SUGGESTIONS .......................................................................................... 96
4.3 CONCLUSION ............................................................................................ 97
4.4 IMPLICATIONS ........................................................................................... 98
BIBLIOGRAPHY ..................................................................................................... 99
ANNEXURE ....................................................................................................... 100
Indus Business Academy Page | iii

LIST OF TABLES
Table 3.1 Constitution of Firm .................................................................................. 77

Table 3.2 Merchants held with current banker ......................................................... 78
Table 3.3 Facilities enjoyed with current banker ...................................................... 81
Table 3.4 Merchants Annual turnover ...................................................................... 85
Table 3.5 Merchants held with parallel banker ......................................................... 87
Table 3.6 Charges of Credit Card on EDC Machine ................................................ 90
Table 3.7 Merchants relationship with HDFC Bank .................................................. 91
Table 3.8 Merchants Positive response towards HDFC Bank .................................. 92
Indus Business Academy Page | iv

LIST OF FIGURES
Fig. 3.1 HDFC Bank Key Parameters Quarter ended Mar18 ................................... 74
Fig. 3.2 Constitution of Firm..................................................................................... 77
Fig. 3.3 Categories of Bank ..................................................................................... 79
Fig. 3.4 Facilities enjoyed with current banker ......................................................... 82
Fig. 3.5 Merchants Annual turnover ......................................................................... 86
Fig. 3.6 Merchants held with parallel banker ............................................................ 88
Fig. 3.7 Charges of Credit Card on EDC Machine ................................................... 90
Fig. 3.8 Merchants relationship with HDFC Bank ..................................................... 91
Fig. 3.9 Merchants Positive response towards HDFC Bank ..................................... 92
Indus Business Academy Page | v

ABSTRACT
The growth of the banking industry is imperative for the economic

development of the country. Banks have become customer – centric and customer
relationship management has become a key component of the service provided by
the banking sector. The HDFC Corporation Limited was amongst the first to receive
an ‘in-principle’ approval from the Reserve Bank of India. HDFC Bank started
Electronic Data Capture (EDC) Service in Bangalore on January 2002.
The study was done in and around Puttenahalli catchment area, Bangalore
with a sample size of 200 merchants. It was done to find out the HDFC EDC machine
penetration level and make recommendations to improve the level by conducting
research. The research has made to find out the increase shareholding or share
percentage of market, cross sell other banking products along with acquiring
merchant, target segmented business as per the master initiative program of HDFC
Bank, i.e. Education segment, Healthcare, Localised segment, Top customers of
competition, Entertainment Segment, Association/Trust and Government Segments
and to ensure that HDFC Bank have maximum customers with EDC machines from
various B2B segments basis their potential and credibility and to ensure that
merchant initiative adds value towards CASA numbers and overall liability value to
the HDFC Bank/Branch.
The data collected through the questionnaires created for customer profiling
(Padhyatra) and were tabulated and analyse meaningfully.
Finally, recommendations have been given in order to promote sales of EDC

machine in Puttenahalli catchment area.
Indus Business Academy Page | vi

CHAPTER 1 - INDUSTRY PROFILE
1.1 Porter’s Five Forces Model
Porter’s five forces analysis is a framework for industry analysis and business
strategy development formed by Michael E. Porter of Harvard Business School in
1979. It draws upon industrial organisation (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. An unattractive
industry is one in which the combination of these five forces acts to drive down
overall profitability. A very unattractive industry would be one approaching “pure
competition”, in which available profits for all firms are driven to normal profit.
Three of Porter’s five forces refer to competition from external sources. The
remainder are internal threats.
HDFC consist of those forces close to a company that affect its ability to
serve its customers and make a profit. A change in any of the forces normally
requires a business unit to re-assess the marketplace given the overall change in
industry information.
Indus Business Academy Page | 1

1.2 Industry Analysis of HDFC Bank
FIVE FORCE HIGH/MEDIUM/LOW REMARK

For any new entrants permission
should be granted from RBI, and it is
Threat of new
Low not easy to have the permission. There
entrants
was many political and legal issue. And
the early investment was very high.
Customer can switch to any other bank
very easily if service was not good
because switching cost is low. But most
Bargaining power
Medium of time customers are having their
of customers
account in most of the bank and they
know that every bank provide similarly
the same service.
Bargaining power In Banking industry there is no such
Low
of suppliers supplier.
Because there are many public and
private bank. And also the post office
provide some of the services, many
Threat of private firm provide easy loan scheme
High
substitutes to attract the customers. People also
started investing their money instead of
saving them like stock market, mutual
funds, property, etc.
There are large numbers of public and
private bank and market growth rate
Degree of Rivalry High was also high. The switching cost was
also very low and the services provide
by all the bank was same.

1.3 Company Profile
The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector, as part of the RBI’s liberalisation of the
Indian Banking Industry in 1994.The Bank was incorporated in August 1994 in the
name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
HDFC Bank comprises of a dynamic and enthusiastic team determined to

accomplish the vision of becoming a World-class Indian bank. HDFC Bank’s
business philosophy is based on four core values – Customer Focus, Operational
Excellence, Product Leadership and People. HDFC employees believe that the
ultimate identity and success of their bank will reside in the exceptional quality of
people and their extraordinary efforts. HDFC are committed to hiring, developing,
motivating and retaining the best people in the industry.
HDFC is India’s premier housing financial 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
in its covers well over a million dwelling unit’s .HDFC has developed significant
expertise in retail mortgage loans to different market segment and also has a large
corporate client base for its housing related credit facilities. With its experience in the
financial markets. A strong market positioned to promote a bank in the Indian
environment HDFC Limited founded in 1997 by Ravi Maurya and Hansmukhbhai
Parekh, is an Indian NBFS focusing on home loans. HDFC operates through almost
450 locations throughout the country with its corporate headquarters in Mumbai,
India. HDFC also has an international office in Dubai, UAE with service associates in
Kuwait. HDFC is the largest housing company in India for the last 27 years. HDFC
was amongst the first to receive an in principal approval from RBI to set up a bank in
the private sector, as a part of the RBI’s liberalization of the Indian banking industry.
It was incorporated on 30th august 1994 in the name of ‘HDFC Bank Limited’, with its
registration office in Mumbai.

1.3.1 History
HDFC was incorporated in 1977 with the primary objective of meeting a social
need- that of promoting home ownership by providing long term finance to
households for their housing needs. HDFC was promoted with an initial share capital
of Rs 100 million. Against for housing has grown explosively. The importance of the
housing sector in the economy can be illustrated by a few key statistics.
According to the National Building Organisation (NBO), the total demand for
housing is estimated at 2 million units per year and the total housing shortfall is
estimated to be 19.4 million units, of which 12.76 million units is from rural areas and
6.64 million units from urban areas. The housing industry is the second largest
employment generator in the country. It is estimated that the budgeted 2 million units
would lead to the creation of an additional 10 million man–years of direct employment
and another 15 million man –years of indirect employment.
Banking system occupies an important place in a nation’s economy. A

Banking institution is indispensable in a modern society. It plays a pivotal role in the
economic development of a country and forms the core of the money market in an
advanced country. Banking was primarily the business of dealing in money and
instruments of credit. Banks were traditionally differentiated from other financial
institutions by their principal functions of
Accepting deposits- subject to withdrawal or transfer by check- and making

loans.
A simple form of banking was practiced by the ancient temples of Egypt,

Babylonia, and Greece, which loaned at high rates of interest the gold and silver
deposited for safekeeping. Private banking existed by 600 B.C. and was considerably
developed by the Greeks, Romans, and Byzantines. The forerunners of modern
banks were frequently chartered for a specific purpose, e.g., The Bank of Venice
(1171) and the Bank of England (1694), in connection with Loans to the government.
The bank of Amsterdam (1609), to receive Deposits of Gold and silver

INDIAN BANKING SYSTEM

Banks in India were started on the British pattern in the beginning of the 19th
Century. In those days, all the banks were joint stock banks and a large number of
them were small and weak. At the time of the Second World War, about 1500 joint
stock banks were operating in un-divided India, out of which over 1400 were not
scheduled banks. Quite a few of them were managed by bad and dishonest
management and naturally they were a number of banks failures. Hence the
Government has to step to the Banking
Companies Act, 1949 (which was subsequently renamed as banking

regulation act) was enacted which led to gradual elimination of weak bank that were
not in a position to fulfill the various requirements of the Act. In order to strengthen
the weak units and revive public confidence in the banking system a new section 45
was inserted in the banking regulation act in September 1960, empowering the
government of India to compulsorily amalgamate weak units with stronger ones on
the recommendations of RBI.
RBI was empowered in 1960, to force compulsory merger of weak banks with
the stronger ones. The total number of banks was thus reduced from 566 in 1951 to
85 in 1969. In July 1969, Government Nationalized 14 banks having deposit of Rest.
50 cores and above.
In 1980, Government acquired 6 more banks with deposits of more than Rest.
200cores. Nationalization of banks was to make them play the role of catalytic agents
for economic growth. The Narasimha committee report suggested wide ranging
reforms for the banking sector in 1992 to introduce internationally accepted banking
Practices. The Amendment of Banking Regulation Act in 1993 saw the entry of new
private sector banks.
DEVELOPMENT OF MODERN BANKING:

For the history of modern banking in India, a reference to the English agency
houses in the days of the east India Company would be necessary. These agency
houses with almost no capital of their own and depending entirely on deposits were
in fact trading firms carrying on banking as a part of their business. Such a
combination of trading with banking had necessarily to be fatal.

No wonder, therefore that almost all such agency houses vanished from the
scene in the crisis of 1829-1832.In the first half of the 19th century, the east India
company established 3 banks-the bank of Bengal in 1809, the bank of Bombay in
1840 and the bank of madras in 1843. The 3 banks are also known as presidency
banks were independent units and functioned as well.
It was however considered that it would be in the interest of these banks and
the country that they should amalgamate. In 1920 was passed the imperial Bank of
India was established in 1921. The Bank was authorized to hold government
balances and manage and public debt. It was not, however given power to issue
notes .the branches of the bank were to work as clearing houses. It was mainly a
commercial bank competing with other banks .the Imperial Bank of India was
nationalized in 1955, by the state bank of India act.
RBI BANKING
The reserve Bank of India is the Central banking institution in India. It is the
sole authority for issuing Bank notes and the supervisory body for banking operations
in India. It supervises and administers exchange control and banking regulations and
administers the government’s monetary policy.
It is also responsible for granting licenses for new bank branches. 25 Foreign
banks operate in India with full banking licenses. Several licenses for private banks
have been approved. Despite fairly broad banking coverage nationwide, the financial
system remains in accessible to the poorest people in India.
GOVERNMENT AND RBI REGULATIONS:

All commercial banks face stiff restrictions on the use of both their assets and
liabilities. 40% of the loans must directed to “Priority Sectors” and the high liquidity
ratio and cash reserve requirements severely limit the availability of deposits for
lending. The RBI requires that domestic Indian banks make 40% of their loans at
concessional rates to priority sectors selected by the government. These sectors
consist largely of agriculture, Exporters and small businesses.
Since July 1993, foreign banks have been required to make 32% of their
loans to these priority sectors. Within the target of 32% two sub-targets for loans to
the small-scale sector (minimum of 10%) and exports (minimum of 12%) have been
fixed. Banking regulation act of India, 1949 defines banking as “Accepting, for the
purpose of lending of deposits of money from the public repayable on demand or

other wise and withdrawal by cheque, draft, and order or otherwise”. Most of the
activities a bank performs are derived from the above definition.
In addition, banks are allowed to perform certain activities that are ancillary to
this business of accepting deposits and lending. A bank’s relationship with the public,
therefore, revolves around accepting deposits and lending money. Another activity
that is assuming increasing importance is transfer of money- both domestic and
foreign- form one place to another. This activity is generally known as “remittance
business” in banking parlance.
The so-called forex (foreign exchange) business is largely a part of remittance

albeit it involves buying and selling of foreign currencies. The law governing Banking
Activities in India is called “Negotiable Instruments Act 1881”. The Banking activities
can be classified as:
 Accepting Deposits from public/ others (Deposits)
 Lending money to public (Loans).
 Transferring money from one place to another (Remittance).
 Acting as Trustees.
 Acting as Intermediaries.
 Keeping valuables in safe custody.
 Collection Business.
 Government Business.
Banking segment in India functions under the umbrella of Reserve Bank of

India – the regulatory, Central Bank. This segment broadly Consist of:
 Commercial Banks
 Co-operative Banks
COMMERCIAL BANKS:
Amongst the banking institutions in the organized sector, the commercial
banks are the oldest institutions having a wide network of branches, commanding
utmost public confidence and having the lion shares in the total banking operations.
Initially they were established as corporate bodies with share holdings by private
individuals, but subsequently there has been a drift towards central ownership and
control.

Up to late sixties commercial banks were mainly engaged in financing

organized trade, commerce and industry, but since they are actively participating in
financing agriculture, small business and borrowers also.
Progress of Commercial Banking in India

Banking in India on western lines had started from the beginning of 19th
century. The first joint stock bank was established at Calcutta by the name Bank of
Hindustan and was under European Management. But this bank failed at that time.
Then later The Bank of Bengal (1806), Bank of Bombay (1840), and Bank of Madras
(1843) were started with final participation of the Government.
These banks were called as the Presidency Banks and were given the right of
note issue in their respective regions. The first purely Indian Joint stock company
was the Oudh Commercial Bank which came into existence in 1889; it was followed
by the Punjab National Bank in 1894 and the Peoples Bank in 1901.
The Swadeshi Movement of 1905 gave great stipules to the starting of the
Indian banks. The Indian Banking system had gone through a series of crisis and
consequent bank failures. Its growth was quite slow during the first half of 19th
century.
But after independence, the Indian banking system recorded rapid progress;
this was due to planned economic growth, increase in money supply, and growth of
banking habit, control and guidance of Reserve Bank etc. The number of commercial
banks declined since 1950 due to the Reserve bank‘s policy of Amalgamation of
small banks with bigger banks, as a measure of strengthening the banking system.
The Indian Economy has been fast developing under the impact of economic
planning and the banking system was developing quite fast.
1.3.2 Milestones
 Acquired Times Bank in merger from Times of India Group (5-6% present
holding)
 HDFC was only 24.4%, rest owned by public and private equity investors JP
Morgan Chase (5-6%)
 Large Foreign Institutional Investors (in India) including Putnam, etc. (big vote
in Indian equity markets – (10-11%).
 Warburg Pincus has a significant holding in HDFC (its promoter having

identified housing as a priority area in the Ninth Five Year Plan (1997-2002),
the National Housing Policy has envisaged an investment target of Rs. 1500
billion for this sector. In order to achieve this investment target, the
Government needs to make low cost funds easily available and enforce legal
and regulatory reforms.
1.3.3 Mission
HDFC Bank’s mission is to be a “World-Class Indian Bank”. The Bank’s aim is

to build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services in the segments that the bank operates in and
to achieve healthy growth in profitability, consistent with the bank’s risk appetite. The
bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Bank’s Business Philosophy is based on
four core values: Operational Excellence, Customer Focus, Product Leadership and
People.
1.3.4 Promoter
 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, strong
market reputation, large shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
 HDFC (together with its fully owned subsidiary HDFC Investment Limited)
owns about 31 % of the equity. They had started with a strategic alliance with
the NatWest group in UK with 20% equity, which has divested later on. The
bank has also signed a memorandum of understanding for strategic business
collaboration with chase Manhattan Bank in Feb. 2, 1999.

1.3.5 Business Philosophy
 The mission of the HDFC Bank is to be world class Indian bank. This would
imply a bank that would meet various financial needs of its customers in a
convenient and cost effective manner at international standard of service. The
bank seeks to achieve the status of a “preferred organization” among its
major constituents- customers, shareholders, regulators, employees,
suppliers etc. while maintaining the highest level of integrity and corporate
governance.
 The business philosophy at HDFC bank is based on four core values:
operational excellence, customer focus, and product leadership and people
competitors. The Bank faces the strong competition in all of their principal
lines of business. Their primary competitors are large public sector banks,
other private sector banks, foreign banks and in some product areas, non-
banking financial institutions.
1.3.7 Wholesale Banking
 Principal competitors in wholesale banking are public and new private sector
banks as well as foreign banks. The large public sector banks have
traditionally been the market leaders in the commercial lending. Foreign
banks have focused primarily on serving the needs of multinational
companies and the Indian corporations with cross- border financing
requirements including trade, transactional and foreign exchange services,
while the large public sector banks have extensive branch networks and large
local currency funding capabilities.
1.3.8 Retail Banking
 In retail banking, their principal competitors are the large public sector banks,
which have much larger deposit bases and branch networks, other new
private sector banks and foreign banks in case of retail loan products. The
retail deposit shares of the foreign banks are quite small in comparison to the
public sector banks, and have also declined in the last five years, which we
attribute principally to the competition from new private sector banks.
However, some of the foreign banks have a significant presence among non-
resident Indians and also compete for non-branch based products such as

auto loans and credit cards. They face significant competition primarily from
foreign banks. In provision of debit cards and also expect to face competition
from foreign banks when we begin offering credit cards. In mutual fund sales
and other investment related products, their principal competitors are brokers
and foreign private banks.
1.3.9 Capital Structure
 As on 31 March 2018 the authorized share capital of the Bank is Rs. 650
crore. The paid-up share capital of the Bank as on the said date is Rs
519,01,80,534 /- which is comprising of 259,50,90,267 equity shares of the
face value of Rs 2/- each. The HDFC Group holds 20.93 % of the Bank's
equity and about 18.23 % of the equity is held by the ADS / GDR Depositories
(in respect of the bank's American Depository Shares (ADS) and Global
Depository Receipts (GDR) Issues). 33.06 % of the equity is held by Foreign
Institutional Investors (FIIs) and the Bank has 5, 32,368 shareholders.
 The shares are listed on the BSE 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 under ISIN No US40415F2002.
1.3.10 Business Focus
 HDFC Bank's mission is to be a World Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale
customer segments, and to achieve healthy growth in profitability, consistent
with the bank's risk appetite.
 The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance.
HDFC Bank’s business philosophy is based on five core values: Operational
Excellence, Customer Focus, Product Leadership, People and Sustainability.

1.3.11 Distribution Network
 HDFC Bank is headquartered in Mumbai. As of March 31, 2018, the Bank's

distribution network was at 4,787 branches across 2,691 cities.
 All branches are linked online on a real-time basis. Customers across India
are also serviced through multiple delivery channels such as Phone Banking,
Net Banking, Mobile Banking, and SMS based 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 centres where the NSE /
BSE have a strong and active member base.
 The Bank also has a network of 12,635 ATMs across India. 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.
1.3.12 Management
 HDFC Bank's Board of Directors comprises eminent individuals with a wealth

of experience in public policy, administration, industry and commercial
banking. Senior executives representing HDFC Ltd. are also on the Board.
 Various businesses and functions in the Bank are headed by senior
executives with work experience in India and abroad. They report to the
Managing Director. The Bank is focussed on recruiting and retaining the best
talent in the industry as it believes that its people are a competitive strength.

Senior Management Team

Aditya Puri Managing Director
PareshSukthankar Deputy Managing Director
KaizadBharucha Executive Director
AbhayAima Group Head – Equities, Private Banking, Third Party
Products, NRI & International Consumer Business
ArvindKapil Group Head – Unsecured Loans
AshimaBhat Group Head – Finance, Administration &
Infrastructure
Ashish Parthasarthy Treasurer
Ashok Khanna Group Head – Vehicle Loans
BhaveshZaveri Country Head – Internal Audit and Chief of Integral
Vigilance
Jimmy Tata Chief Risk Officer
Munish Mittal Chief information Officer
NavinPuri Country Head – Branch Banking
Neil Francisco Group Head – Underwriting and Risk Intelligence and
Control
Nirav Shah Group Head- ECG & IFG
NitinChugh Country Head – Digital Banking
Parag Rao Country Head – Card Payment Products, Merchant
Acquiring Services and Marketing
Philip Mathew Chief People Officer
Rajesh Kumar Group Head, Co-Head- Retail Risk
Rakesh Singh Group Head- Investment Banking, Private Banking,
Capital Markets and Financial Institutions
Ravi Narayanan Country Head – Branch Banking & Retail Trade
Forex
SashiJagdhishan Chief Financial Officer

1.3.13 Technology
 HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank’s branches
have online connectivity, which enables the bank to offer speedy funds
transfer facilities to its customers. Multi-branch access is also provided to
retail customers through the branch network and Automated Teller Machines
(ATMs).
 The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world
class bank. In terms of core banking software, the Corporate Banking
business is supported by Oracle Flexcube, while the Retail Banking business
by Finware, both from i-flex Solutions Ltd. The systems are open, scalable
and web-enabled.
 The Bank has prioritised its engagement in technology and the internet as
one of its key goals and has already made significant progress in web-
enabling its core businesses. In each of its businesses, the Bank has
succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.
1.3.14 Awards and Achievements – Banking Services
 HDFC Bank began operations in 1995 with a simple mission: to be a "World-

class Indian Bank". HDFC Staff realised that only a single-minded focus on
product quality and service excellence would help them get there.
 It is extremely gratifying that Bank staff efforts towards providing customer
convenience have been appreciated both nationally and internationally.

Some Important awards that the Bank won:

 2018
Business Today Best Bank Awards Bank of the year
Best in Innovation
Best Large Bank
Fastest Growing Large Bank
Dun & Bradstreet BFSI Awards India’s Leading Bank – Private sector
Euromoney Private Banking and Wealth Net Worth Specific Services
Management survey 2018
 2017
Business India 19th Best Bank survey Best Bank for the year 2017
Fortune HDFC Bank MD Aditya Puri on Fortune
Business Person of the year list.
Forbes Asia’s 13th Fab 50 Companies HDFC Bank in Forbes Asia’s Top 50
List List
BrandZ Top 50 Most Valuable Indian Ranked India’s Most Valuable Brand
Brands for 4th year in a row
CNBC TV 18 Financial Advisor Awards Best Performing Bank – Private Sector
2016-17
 2016
Institutional Investor All-Asia Mr. Aditya Puri ranked Best CEO- HDFC
Executive Team ranking 2016 Bank ranked Best Company in Banks
sector of Asia ex-Japan
CNBC-TV18 India Business Leader Outstanding Business Leader of the year
Awards (IBLA) 2015-16
Cisco-CNBC TV 18 Digitizing India Award for Innovations in the Financial
Awards Industry & Digital Banking
Business Today KPMG India’s Best Banks 2015 Awards
NABARD Award – The Best Bank in HDFC Bank wins NABARD Award
SHG Credit Linkage in Tamil Nadu
Business Today Best Companies to work for in India
Outlook Money Awards 2015 Best Bank of the year: Runner up
Winner: Institutional Financial Distributor
of the year

 2015
National Payments Excellence Awards HDFC Bank wins NPCI National
2015 Payments Excellence Awards
Finance Asia Awards Best Equity Deal in Asia Award
IDC Insights Award 2015 Excellence in Customer Experience
Lean Sigma project competition Best Case Study Award
J.P.Morgan Quality Recognition Award Best in class straight Through
Processing Rates
1.4 Product Profile
EDC machines (Electronic Data Capture), which the merchant or the shopkeeper
should have if the retailer accepts credit cards. These machines are connected by
the normal telephone lines to the banks server, which have a database of the
cardholder. From this database it checks whether a particular person is eligible to
purchases that thing. If yes, it sends the approval to EDC terminal installed at
merchant shop. All this happens in couple of seconds. Then the purchases cycle get
over by just a swipe of a card. And the amount immediately gets credited in
merchants account in the bank automatically.
1.5 HDFC Bank’s Merchant Establishment Operation
 HDFC Bank presents the most powerful Merchant Services programme that
enables Merchant Establishment to accept both Credit and Debit card
payments in the most efficient manner.
 HDFC Bank understands business needs and has tailor-made offering to

facilitate smooth running of business. Credit and Debit cards have become
the most preferred mode of payment by customers at Merchant
Establishment.
 Merchant Services programme enables to accept all major Credit and Debit
cards issued in India and abroad. HDFC’s full range of Merchant Services
programme comprises of a Merchant Current Account, EDC terminals to
facilitate online acceptance of Current Account, EDC terminals to facilitate
online acceptance of Credit and Debit cards and electronic settlement of card
transactions.
Competitive Profile Matrix (Base on Key Success factors)

HDFC Bank has revised its deposit rates. The rates have been changed for
maturities ranging from six months 17 days to eight years. The bank is also offering a
maximum of 8.75% interest on its retail term deposits.
ICICI Bank, the largest private sector lender in the country, pared deposit
rates by 50 basis points. The lender has cut rates across maturities ranging from 91
days to less than five years. It now offers a maximum 7.50% interest on retail deposit
compared to 9.25% earlier.
Axis Bank has also reduced its deposit rates by at least 25 basis points.
State Bank of India (SBI), the largest commercial bank in the country had
pared its deposit rates by 50-100 basis points. Analysis expect other state-run and
private banks to mirror this move.
The net interest margin of banks has been under stress as the increase in
cost of deposits has outpaced the rise in yield on advances in the past one year. As
loan demand has remained largely muted so far this year the pressure on the
margins is expected to intensify further.
Bank New Rates
HDFC Bank 4.00 – 7.50
ICICI Bank 4.50 – 7.50
Axis Bank 6.25- 7.25
Dimensions of Service quality

Tangibility:
This dimension deal with modern looking equipment’s and visual appealing
part of banks.
Reliability:
This dimension has a direct positive effect on perceived service quality and
customer satisfaction in banking institutions. Banks must provide error free service
and secure online transactions to make customers feel comfortable.
Responsiveness:
Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are
important to its customers. Researchers examining the responsiveness of banking
services have highlighted the importance of perceived service quality and customer
satisfaction.
Assurance:
Customer expects that the bank must be secured and the behaviour of the
employees must be encouraging.
Empathy:
Individual attention, customized service and convenient banking hours are
very much important in today’s service.
In order to achieve better understanding of service quality in banking sector,

the proposed five service quality dimensions are conceptualized to illustrate the
overall service quality of the banking in relation to customer and providers
perspective.
Banking was in the sector featuring medium goods and higher customer
producer interactions, since in banking, consumers and service providers interact
personally and the use of goods is at a medium level. Hence, in banking, where there
are high customer-producer interactions, the quality of service is determined to a
large extent by the skills and attitudes of people producing the service.
In the case of services, because customers are often either direct observers
of the production process or active participants, how the process is performed also
has a strong influence on the overall impression of the quality of service. A well-
performed service encounter may even overcome the negative impression caused by
poor technical quality as well as generate positive word-of-mouth, particularly if
customers can see that employees have worked very hard to satisfy them in the face
of problems outside their control. Employees are part of the process, which connects
with the customer at the point of sale, and hence employees remain the key to
success at these service encounters or “moments of truth”.
It is these encounters with customers during a service that are the most
important determinants of overall customer satisfaction, and a customer’s experience
with the service will be defined by the brief experience with the firm’s personnel and
the firm’s systems.
The rudeness of the bank’s customer service representative, the abruptness

of the employee at the teller counter, or the lack of interest of the person at the check
deposit counter can alter one’s overall attitude towards the service, perhaps even
reversing the impression caused by high technical quality.
Another important factor is service quality factor, competence, is defined by

whether the bank performs the service right the first time, whether the employees of
the bank tell customers exactly when services will be performed, whether the bank
lives up to its promises, whether customers feel safe in their transactions with the
bank and whether the employees show a sincere interest in solving the customers‟
problems.
In short, this dimension is related to the banks‟ ability to perform the promised
service accurately and dependably”. Performing the service dependably and
accurately is the heart of service marketing excellence.
When a company performs a service carelessly, when it makes avoidable

mistakes, and when it fails to deliver on promises made to attract customers, it
shakes customers` confidence in its capabilities and undermines its chances of
earning a reputation for service excellence. It is very important to do the service right
the first time. In case a service problem does crop up, by resolving the problem to the
customer’s satisfaction, the company can significantly improve customer retention.

Risk Management
Risk management is the identification, assessment, and prioritizations of risks
followed by coordinated and economical application of resources to minimize,
monitors, and control the probability and/or impact of unfortunate events or to
maximize the realization of opportunities. Risk management’s objective is to assure
uncertainty does not deflect the endeavour from the business goals.
Ideal risk management, a prioritization process is followed whereby the risks

with the greatest loss (or impact) and the greatest probability of occurring are
handled first, and risks with lower probability of occurrence and lower loss are
handled in descending order.
In practice the process of assessing overall risk can be difficult, and balancing
resources used to mitigate between risks with a high probability of occurrence but
lower loss versus a risk with high loss but lower probability of occurrence can often
be mishandled.
Risk management also faces difficulties in allocating resources. This is the

idea of opportunity cost. Resources spent on risk management could have been
spent on more profitable activities. Again, ideal risk management minimizes spending
(or manpower or other resources) and also minimizes the negative effects of risks.
Types of Risk Management:

When customer are in business, need to consider the kinds of events that
could pose a risk to customer’s business and take steps to mitigate them.
 Strategic Risk Management
 Compliance Risk Management
 Operational Risk Management
 Reputational Risk Management
 Financial Risk Management
Strategic Risk Management:

Strategic risk management can be defined as the process of identifying,
assessing and managing the risk in the organization's business strategy including
taking swift action when risks are realized. SRM involves evaluating how a wide
range of possible events and scenarios will affect the strategy and its execution and

the ultimate impact on the company's value. “Risk” is all-inclusive, encompassing

everything from product innovation risk and market risk to supply chain risk and
reputational risk. A primary component and foundation of enterprise risk
management, SRM requires the organization to define tolerable levels of risk as a
guide for strategic decision-making. It is a continual process that should be
embedded in strategy setting and strategy execution.
Compliance Risk Management:

Compliance risk is exposure to legal penalties, financial forfeiture and
material loss an organization faces when it fails to act in accordance with industry
laws and regulations, internal policies or prescribed best practices. Compliance risk
is also sometimes known as integrity risk. Many compliance regulations are enacted
to ensure that organizations operate fairly and ethically.
For that reason, compliance risk is also known as integrity risk. Compliance
risk management is part of the collective governance, risk management and
compliance discipline. The three fields frequently overlap in the areas of incident
management, internal auditing, operational risk assessment, and compliance with
regulations such as the Sarbanes-Oxley Act. Penalties for compliance violations
include payments for damages, fines and voided contracts, which can lead to the
organization's loss of reputation and business opportunities, as well as the
devaluation of its franchises.
Operational Risk Management:

The term Operational Risk Management (ORM) is defined as a continual
cyclic process which includes risk assessment, risk decision making, and
implementation of risk controls, which results in acceptance, mitigation, or avoidance
of risk. ORM is the oversight of operational risk, including the risk of loss resulting
from inadequate or failed internal processes and systems; human factors or external
events.
Reputational Risk Management:

Reputational risk, often called reputation risk, is a risk of loss resulting from
damages to a firm's reputation, in lost revenue; increased operating, capital or
regulatory costs; or destruction of shareholder value, consequent to an adverse or
potentially criminal event even if the company is not found guilty. Adverse events

typically associated with reputation risk include ethics, safety, security, sustainability,
quality, and innovation. Reputational risk can be a matter of corporate trust.
This type of risk can be informational in nature that may be difficult to realize
financially. Extreme cases may even lead to bankruptcy. Recent examples of
companies include: Toyota, Goldman Sachs, Oracle Corporation. The reputational
risk may not always be the company's fault as per the case of the Chicago Tylenol
murders after seven people died in 1982.
Financial Risk Management:

Financial risk management is the practice of economic value in a firm by
using financial instruments to manage exposure to risk, Operational risk, credit risk
and market risk. Other types include Foreign exchange risk, Shape risk, Volatility
risk, Liquidity risk, Inflation risk, Business risk, Legal risk, Reputational risk, Sector
risk etc. Similar to general risk management, financial risk management requires
identifying its sources, measuring it, and plans to address them.
Financial risk management can be qualitative and quantitative. As a

specialization of risk management, financial risk management focuses on when and
how to hedge using financial instruments to manage costly exposures to risk.
In the banking sector worldwide, the Basel Accords +are generally adopted
by internationally active banks for tracking, reporting and exposing operational, credit
and market risks.
Definition:
Financial risk management is defined as the practices and procedures that a
company uses to optimize the amount of risk it handles with its financial interests.
Senior leaders of a company that practices financial risk management should
produce a written policy on financial risks they are willing to accept and follow that
policy. They should also monitor the risks taken, and release reports on the results of
these risks to help with analysing them.

HDFC Groups
1. HDFC Ltd:
HDFC is a leading provider of Housing Finance in India. With our customized
solutions and have fulfilled over 6.2 million dreams since inception.
Core values:
 Trust
 Integrity
 Transparency
 Professional Service.
Objectives:
 Primary Objective: To enhance the residential housing stock in the country
through the provision of Housing Finance in a systematic and professional
manner, and to promote home ownership.
 Aim: Increase the flow of resource to the housing sector by integrating the
housing finance sector with the overall domestic financial markets.
Growth Strategies:
 Increase the Return On Equity each year in order to maximise shareholder
value.
 Consistently grow the loan book.
 Maintain low Gross Non-Performing Assets (NPAs)
 Maintain a low cost to income ratio by improving operational efficiency.
Leadership and People:

 Stable and experienced senior management team.
 Trained and experienced workforce.
Presence:
 Extensive distribution network of 453 interconnected offices (including 140
offices of HDFC Sales) with outreach programs to several towns and cities all
over India.
 3 representatives offices in Dubai, London and Singapore offering Home
Loan products to Non- Resident Indians and Persons of Indian Origin.

 Enhanced distribution through HDFC Sales, HDFC Bank and third party
Direct Selling Associates.
Financial Network:
 Diversified Financial Services: Banking, Insurance (Life and General), Asset
Management, Real Estate Venture Capital, Education Loans among others.
 HDFC and its Group Companies consistently maintain leadership positions in
their respective sectors.
2. HDFC Securities:
HDFC Securities is one of the leading stock broking companies in India, and
a subsidiary of HDFC Bank – a renowned private sector bank.
As a stock broking company, HDFC have completed 18 years of operations,

serving a diverse customer base of retail and institutional investors.
There are innumerable reasons why one should opt for HDFC services, and
here are a few of them:
Customer’s interest is HDFC’s priority:-

Customer’s financial requirements and goals are first priority. HDFC simplify
investing for customers, and provide a 360-degree view of financial planning options
that suit customer’s future goals and needs.
One-stop shop for customer’s investment:

HDFC offer a suite of products and services across various asset classes,
such as equity, gold, debt and real estate. Be it stocks, derivatives, mutual funds,
fixed deposits, NCDs, insurance, bonds, currency derivatives, and have a product
that suits each of customer’s investment needs.
Multiple platforms and seamless trading:-

Customer have the option to trade with us via multiple platforms, namely
online, mobile, telephone or through any of HDFC Branches. These platforms make
customers trading experience extremely convenient and seamless.

One can even place an order for and IPO/NCD online via customers trading
account, or with the help of HDFC Customer Care executives.
There is no need to issue cheques or delivery instructions. HDFC 4-in-1

Advantage account allows customers to seamlessly move funds and securities within
savings, demat and trading accounts.
HDFC web portal is based on state-of-the art WEB 2.0 technology, which
enables a trouble-free trading experience on both the exchanges – BSE and NSE.
HDFC mobile trading application is compatible with all smart phones, such as
Android and iphone. Once customer activate mobile trading on his/her smart phone,
can place orders in equities and derivatives, and receive stock quotes on the move.
One can even create a Multiple Personalised Market watch and track stocks and
other asset classes such as gold, bonds etc in the manner in which customer want.
Timely and relevant information:-

HDFC offer accurate news and views that impact customer investments.
HDFC views are backed by extensive research. HDFC believe in empowering
customer with accurate and unbiased research, to help customer informed
investment decisions.
Tracking customer portfolio:-

Investing money is not enough. Customer have to monitor his/her portfolio to
ensure customer’s investments help customer build a robust financial portfolio.
Customer can use his portfolio tracker to monitor entire financial portfolio which
encompasses various asset classes. Customer can also make a watchlist of stocks
and enrol for SMS alerts, which will help customer track the markets closely and
make timely investment decisions.
Transparency:-
HDFC empower customer to make the right decisions and handle customer
own portfolio. Backed by HDFC trusted pedigree, it is constant endeavour to provide
services in a transparent manner. HDFC believe in offering high quality investment
services in a cost-effective manner to help customer reach financial goals.

Background:-
HDFC is a subsidiary of HDFC Bank – a prominent private sector bank in
India. With a decade of experience in trading and a rating of A1+1, HDFC have a
proven pedigree in the financial services industry.
3. HDFC Mutual Fund:

HDFC Mutual Fund has been constituted as a trusted in accordance with the
provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed dated
June 8, 2000 with Housing Development Finance Corporation Limited (HDFC) and
Standard Life Investments Limited as the Sponsors/ Settlors and HDFC Trustee
Company Limited, as the Trustee. The Trust Deed has been registered under the
Indian Registration Act, 1908. The Mutual fund has been registered with SEBI, under
registration code MF/044/00/6 on June 30, 2000.
4. HDFC Reality:
India’s only online to offline (O2O) platform for Real Estate, QuikrRealty.
With an experience in Real Estate spanning 3 decades, HDFC have grown

into a leading Real Estate advisory brand with a transaction volume of
Rs.2,500Crores, as of last year. HDFC have also grown into a 400+ team of
experienced professionals with a pan India reach across 19 cities.
QuikrRealty provides customer with guidance and support, on all aspects of

real estate transactions – Buying, Selling and Leasing of Commercial and Residential
Properties, Leasing of Corporate and Retail Premises, Valuations, Capital Markets
and various Land Transactions.
HDFC Realty also well supported in knowledge and expertise by alliance

partner Quikr Limited, which are working directly or indirectly with Developers,
Private Equity firms, Investors and other major companies in the industry.
Additionally, with over 30 mn unique visitors per month parent company Quikr, runs
multiple vertical businesses across real estate automobiles, jobs, services and goods
giving early access to data on consumer behaviour.
Over the years, it has built a robust technology platform for consumers with
products for developers and brokers that stands to gain in the era of digitization. At
QuikrRealty, relationships have always centered on providing tailor-made solutions
while adhering to fair business practices. From pre purchase to protect planning to
project financing to marketing, HDFC Realty provide personalised attention through
every step of the process, right from understanding customer’s requirement to
ensuring a smooth closure.
Portfolio of Services:-
 Residential – Primary Sales, Resale/selling Properties, Leasing.
 Commercial and Retail – Market Research, Strategic Pricing, Tenant
Sourcing, Managing Negotiations, Legal Assistance.
 Consulting and Valuation Services – Development Solutions, Real Estate
Market Research, Strategic Advisory, Real Estate Due Diligence and
Valuation Services.
 Land – Outright Land Sale/ Purchase, Joint Ventures, Asset Unlocking
Strategies, Pricing Advisory and Landlord Representation
 Capital Markets – Private Equity, Debt Syndication and Mezzanine Finance.
5. HDFC Life:
HDFC Life is one India’s leading life insurance companies, offering a range of
individual and group insurance solutions that meet various life stage needs of
customers. The products include Protection, Pension, Savings and Investments,
Health, etc.
HDFC Standard Life Insurance Company Limited (‘HDFC Life’/’Company’) is

a joint venture between HDFC Ltd., one of India’s leading housing finance institution
and Standard Life Aberdeen, a global investment company.
Established in 2000, HDFC Life is a leading long-term life insurance solutions

provider in India, offering a range of individual and group insurance solutions that
meet various customer needs such as Protection, Pension, Savings, Investment and
Health.
Customers have the added advantage of customising plans, by adding

optional benefits called riders, at a nominal price. As on March 31, 2018, the
Company had 34 individual and 11 group products in its portfolio, along with 8
optional rider benefits, catering to a diverse range of customer needs.

HDFC Life continues to benefit from its increased presence across the
country having a wide reach with 414 branches and additional distribution touch-
points through several new tie-ups and partnerships comprising 139 partners across
traditional and non-traditional channels including NBFC’s, MFIs, SFBs, etc. The
Company has a strong base of financial consultants.
6. HDFC ERGO:
HDFC ERGO General Insurance Company Ltd. Is a joint venture between
HDFC Ltd., India’s premier Housing Institution and ERGO International AG, the
primary insurance entity of Munich Re Group. The Company offers complete general
insurance products ranging from Motor, Health, Travel, Home and Personal Accident
in the retail space and customized products like Property, Marine and Liability
Insurance in the corporate space.
HDFC ERGO endeavors to improvise and cater to every need of the modern
day customer with superior customer service through automated processes. This
helps to provide customers a seamless and hassle-free experience.
HDFC ERGO is expanding its network across the country and is today
present in 108 branches spread across 91 cities within an employee base of over
2000 professionals. The company also has a wide distribution network comprising of
brokers, retail and corporate agents, bancassurance besides its own direct sales
force.
HDFC ERGO has been assigned ‘iAAA’ rating by ICRA indicating its highest
claim paying ability. We have been certified with ISO certification for our claim
services, policy issuance, policy issuance, customer servicing and standardization
and uniformity of Information security processes being followed across all branches
and locations.
7. HDFC Pension:
NPS (National Pension System) is a defined contribution based Pension
Scheme launched by Government of India with the following objectives.
 To provide old age income
 Reasonable market based returns over long run
 Extending old age security coverage to all citizens.

It is based on a unique Permanent Retirement Account number (PRAN)

which is allocated to each Subscriber upon joining NPS.
The Government of India in exercise of their executive powers adopted

‘National Pension System’ (NPS) based on defined contributions in respect of all new
entrants to Central Government services, excepting the Armed Forces, with effect
from 1st January 2004. Most of the State Governments have since notified a similar
pension system for their new entrants. NPS accumulates savings into subscribers
PRA while working and use the accumulations at retirement to procure a pension for
the rest of his life.
PFRDA has also made NPS available to all citizens of India, with effect from
1st May 2009 on a voluntary basis. In Pursuance to PFRDA’s commitment to make
available an avenue for saving for old age to all sections of society, PFRDA has now
launched a separate model to provide NPS to the employees of corporates entities,
including PSUs since December 2011. This model is titled “NPS – Corporate Sector
Model”.

8. HDB Financial Services:

HDB Financial Services (HDBFS) is a leading Non-Banking Financial
Company (NBFC) that caters to the growing needs of an Aspirational India, serving
both Retail and Commercial Clients.
Incorporated in 2008, HDB are a well- established business with strong

capitalization. HDBFS is accredited with CARE AAA &CRISIL AAA ratings for its
long-term debt and Bank facilities and an A1+ rating for its short-term debt and
commercial papers, making it a strong and reliable financial institution.
HDB Lines of Business include – Lending and BPO Services.
Lending:
HDB offer a wide range of secured and unsecured loans to customers. It
provide a one-stop-shop for all requirements, be it loans, investments or protection. It
have quickly grown to more than 1000 Branches spread across 22 states and 3
Union Territories.
BPO Services:
BPO services division delivers back office services such as forms processing,
documents verification, finance and accounting services and correspondence
management. It also deliver front office services such as Contact center
management, Outbound marketing and collection services.
Corporate Social Responsibility:

CSR committed to identifying and supporting programs aimed at:
 Developing and advancing the community and in particular those at the
bottom of the pyramid who are unequally endowed/enabled and also.
 Reducing negative impact of its operations on the environment.
CSR mission is to contribute to the social and economic development of the

community through a series of interventions. CSR seek to mainstream economically,
physically and socially challenged groups and to draw them into the cycle of growth,
development and empowerment. Strategy is to integrate activities in community
development, social responsibility and environmental responsibility and encourage
each business unit or function to include these considerations into its operation.

1.6 SWOT Analysis
Parent Company – HDFC

Category – Banking, Financial Services
Sector – Banking
Tagline/Slogan – We understand your world
SWOT Analysis
Strengths 1. HDFC is one of the leading new age private sector bank
2. HDFC has a large collaborations with corporate for
employee salary accounts.
3. Acquisitions have boosted the operations of the bank
4. HDFC Bank has been responsible for several CSR
activities and has also been recognized with several
banking awards.
5. It offers several services like online banking, app, mobile
banking, NRI services, etc
6. HDFC Bank has over 4787 branches and over 12635
ATM’s, in more than 2691 cities in India.
7. HDFC has good financial advisors in terms of guiding
customers towards right investors.
8. HDFC bank has the high degree of customer satisfaction
when compared to other private banks.
9. Lower response time and with efficient and effective
service.
10. Dedicated workforce aiming at making a long-term career
in the field.
11. Great Brand Image
Weaknesses 1. Rural penetration is low for HDFC as compared to

nationalised banks.
2. Competition from public sector and private sector banks
means limited market share growth.
3. The bank focuses mostly high end clients.

Opportunities 1. Mobile Banking, Internet banking etc can be a huge boon

for HDFC’s business.
2. Venturing more into rural areas can be done by HDFC.
3. Providing more complex products to the ever increasing
demands of the industry.
4. The companies in large and SME are growing at very fast
pace. HDFC has good reputation in terms of maintaining
corporate salary accounts.
5. HDFC has very good opportunities in abroad.
Threats 1. Competitors increasing their business can adversely affect

HDFC’s business
2. The government banks are trying to modernize to compete
with private banks.
3. Very high Competition prevailing in the industry.
4. Lack of infrastructure in rural areas could constrain
investment.
5. Top HDFC bank Limited Competitors are CanaraBank,
State Bank of India, ICICI Bank.

1.7 Organization Chart of Finance Function in Bank
Chairman
Vice Chairman
Executive Director
Managing Director
Sr. General Manager
Chief Financial General Manager

Accountingand Officer and Treasurer
Taxation Group
Account Manager
Assistant Financial
Officer
Assistant

1.8 Organisation Structure of Branch
Branch Manager
Personal Banker Relationship

Teller Clearinghouse
Authoriser Manager
Personal Banker
Sales
Personal Banker
Welcome Desk
1.9 Business Profile
E-Commerce Product – It handle payment gateways

 IT
 Security Audit
 Check the vulnerability
 Research and Development
 Integrity and Safety

Products –
1. Smart hub Solution – Only applicable for three industries
a. Education (UPI wallet, Instalments for academic fees via debit or
credit card)
b. Government ( Tax payment, Bill Payment)
c. Society (Maintenances, Electricity Bill, Water Bill, 2/4 Parking Bill)
2. Qfix (Service provider) – Web integrated

 It provide ERP solution like assignment module, Account module.
 From web it will automatically take the student details.
 All the backend work will be done in this Qfix.
Platforms for payment gateway -

a. Paytm
b. FSS
c. Cyber source
d. Razor Pay
e. MIGS
f. Pay u money
g. EBS
h. TPSL
The above list are the aggregators or key differentiators.

 Payz app for business – It is application link based payment gateway.
 QR based payment
 Dynamic QR – Everytime QR code will change and it is facilitated by DigiPos
DigiPos -
1. Swipe and pay
2. Multi bank EMI
3. Dynamic QR
4. Printing facility
5. UPI

Sales Process
 Scoping
a. Demography
b. Industry
 Existing set of customer
 Word of Mouth
 Collaborations
 Start ups -
A. Smart up A/c – current a/c for start upsi.e, Average quarterly Balance
(AQB).
B. Zero Balance A/c – for the first year, 2 Transactions in six months.
C. Competitive rates
D. Logistics facility
E. Co working space
F. Legal Assistance
G. Content writing – PR solution
Two types of smart up A/c

a. Alpha – Zero Balance A/c
b. Max – Rs 25k – Average monthly balance (AMB)
 Smart A/c application – Recently launched.
 ENET solution – Bulk payment solution
 Inbuter, verifier, Approver
 Nodal A/c – It means online transaction.
It is Virtual A/c, no physical existence.
It is interlinked to current A/c.
HDFC Bank caters to a wide range of banking services covering commercial

and investment banking on the wholesale side and transactional/branch banking on
the retail side.

The bank has three key business areas or major verticals in HDFC:-
a. Wholesale Banking Services

The Bank’s target market is primarily large, blue-chip manufacturing
companies in the Indian corporate sector and to a lesser extent, emerging mid-sized
corporate. For these corporate, the Bank provides a wide range of commercial and
transactional banking services, including working capital finance, trade 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.
b. Retail Banking Services

The objective of the Retail bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one- stop
window for all his/her banking requirements. The HDFC Bank preferred program for
high net worth individuals, the HDFC Bank and the Investment Advisory Services
programs have been designed keeping in mind needs of customers who 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.
The Bank is also one of the leading players in the “merchant acquiring”
business with over 40,000 Point-of-sale (POS) terminals for debit/credit cards
acceptance at merchant establishments.
c. Treasury Operations
Within this business, the bank has three product areas – Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities and Equities.
These and fine pricing on various treasury products are provided through the bank’s
Treasury team.

HOME LOAN PROCESS AND DISBURSMENT

Home loan
Home loans are loans customer have access to, depending on whether
customer want to buy or build a house and can also be used to repair or extend an
existing house. Who can avail of these loans? According to lending institutions, any
Indian resident who is over 21 years of age at the beginning of the loan and below
65at its maturity can avail of the loan. Salaried Employees as well as Self- Employed
citizens can apply. NRI Salaried and RBI Self Employed, under RBI guidelines, can
approach only nationalized banks and other HDFC for loans.
Why should one option for a loan to buy a house?

Taking a loan seems like a good option when the money at hand is
insufficient to buy the house of your dreams. Consider couples in their twenties and
thirties. They enjoy a good income currently, buy their accumulated capital isn’t
enough to purchase a house. Whereas a home loan can give them access to capital
their current earnings. Also, if you take a 10 years old loan when you are thirty, you
could repay it by the time you’re forty. So you don’t have to be burdened with the
interest and are free to plan your retirement savings.
The Quantum of loan that one can avail of:

Loan sanctioned depend on your repayment capacity – which is based on
customer’s current income and future repayment capacity. Customer would include
spouse’s name to enhance the loan amount. The maximum loan can be sanctioned
varies with each bank/institutions and ranges from Rs.10 lakhs to Rs. 1 crore.
Benefits of taking a home loan:

A home loan is very different from a personal loan like a car loan for instance.
Customer can utilize a home loan for financing an asset that will hold its value and
even appreciate over the period of the loan. Though its price could fluctuate in the
short terms, Total Estate will show capital appreciation over the years. The value of
your house generally while the loan remains constant, If you had opted to wait, save
up and buy a house, it would, in the long run cost you much more; home loans also
come with many tax benefits.

Tax benefits of taking a home loan:

The income tax authorities look with favour upon those servicing a housing
loan from specified financial institutions. And, it is up to customer to be wise enough
to take advantage of this.
Section 24 of the Income Tax:

Interest on loan till Rs.1.5 lakhs per annum is exempted form income tax
(under section 23/24(1) of the Income tax act).
Section 88 of Income Tax Act:

Customer get a 20% rebate on repayment of principle during a financial year.
Once again, over the years, the principle repayment eligible for rebate has been
enhanced from Rs.10,000 to the current limit of Rs.20,000 Stamp duty, registration
fee or transfer of such house property to the assesses is also considered under this
amount. Financial Institutions, which give, home loans: Leading Banks Housing
finance companies
Financial implications of availing a loan (small or big)
There are several expenses involved apart from repayment of the actual loan
amount:
 Processing fees: A processing fee (PF) is charges at the time of
submission of the application form and covers expenses incurred for
processing the application form. This fee has to be paid upfront by the
customer – in some cases, it is non-refundable.
 Administration fees: to meet operating expenses.
 Pre-EMI: A simple interest calculated on the disbursement amount in
case of a plot under construction.
 EMI: The EMI is an abbreviated form of the equated money
instalment and is simply referred to as monthly instalment in common
parlance. And, being a self-explanatory term that is exactly what it is.
The amount you will have to pay you financier every month when
repaying your loan. Being a monthly payment, at the end of the year,
you would have paid 12 EMIs.

Types of loans available

Broadly two types- fixed rate and variable rate loans; while the former deals
with a fixed rate of interest over the entire duration of the loan, the latter has the rate
of interest changing according to the fluctuations in the market.
Loan that one can avail
Up to 85-90% of the total cost based primarily upon the individual’s payback
capacity.
GENERAL CONDITIONS THAT GOVERN A HOME LOAN:

These are likely to vary with respect to the different types of housing loans:
 The maximum period of the loan is normally fixed by HFIs. However, HFIs do
provide for different tenors with different terms and conditions.
 The instalment that you pay is normally restricted to amount 45% of your
monthly gross income.
 You will be eligible for a loan amount, which is the lowest as per your
eligibility. This is calculated on the basis of your gross income and payback
capabilities.
 Some HFIs insist on guarantees from other individuals for due repayment of
your loan. In such cases you have to arrange for the personal guarantee
before the disbursement of your loan tasks place.
 Most HFIs have a panel of lawyers who go through your property documents
to ensure that the documents are clear and are not misrepresented. This is an
added benefit that you get when you avail of a loan from an HFI.
 You repay the loan either through Deduction against Salary, Post-dated
cheques, and standing instructions or by Cash/DD.
What all one can take the loan for?

There are different types of home loan tailored to meet ones needs here’s all
some of them.
 Home purchase loan: This is the basic home loan for the purchase of
new home.
 Home improvement loans: These loans are given for implementation
repair works &renovation in a home that has already been purchased
by the client.

 Home construction loan: This is available for the construction of new

home.
 Home extension loan: This is given for expanding or extending an
existing home for e.g.: addition of an extra room etc.
 Home conversion loan: This is for those who have financed the
present home with home loan & wish to purchase& move to another
home for which some extra funds are required through home on
version loan ,existing loan is transferred to the new home including the
extra amount required eliminating the prepayment of the previous
loan.
 Land purchasing loan: this loan is available for the purchasing of
land for both construction and investment purpose.
 Bridge loan: these are designed for those people who wish to sell the
existing home & purchase another one. The bridge loan help finance
the new home, until a buyer is found for the home.
Loans
HDFC brings back you a wide range of loans to cater your financial needs.
The bank offers the following loans:

1. Personal loans.
2. Consumer loans.
3. Auto loans
4. Loans against shares
5. Loans against RBI bonds
6. Loans against insurance policy
7. E- Instant loans give the facility of loans approval in the 60 second on the
internet.
8. HDFC has offices spread all over the country. This extensive network helps
HDFC In providing services to large and well spread out clients. This network
of interconnected offices (on data circuits) helps HDFC to process application
for purchase of property anywhere in India. HDFC has further established an
office in Dubai and service associates in Kuwait, Oman and Quarter to make
to easier for Middle East based non-resident Indians to apply for loan to
HDFC India.

9. HDFC is pioneer of housing finance in India and has been a leader in

business for the last 23 years. HDFC has vast experience and a very
committed and skilled staff to handle housing loan applications and solving
customer problems.
HDFC loan scheme purpose

HDFC Limited offers loans for the following purposes:
 Land purchase
 Home construction/purchase
 Home extension
 Home improvement loans
 Short-term bridge loans
 Non-resident premises loans for professionals.
Loan amount:
One can avail of maximum of up to 85% of the cost of the property, including
the cost of the land.
Loan tenure
One can repay the loan over a maximum period of 20 years under both FRHL
and ARHL. Repayment will not ordinarily extend beyond customer age of retirement
(if customeris employed) or on reaching 65 years of age, whichever is earlier.
However, HDFC will endeavour to determine the repayment period to suit customer
convenience.
Rate of interest
The rate of interest of HDFC is 8.75%.under the monthly rest option, interest
is calculated on monthly rests. Principal repayment is credited at the end of every
month. At HDFC you have the choice between the normal FRHL and the innovative
ARHL.
Alternatively you can also avail the part of the loan under FRHL and balance
under ARHL. HDFC also offers you the option to switch between schemes for the
nominal fee. Interest rates on ARHL will be linked to HDFC’s Retail Prime Lending
Rate (RPLR) which currently 13.75%.

The rate on your loan will be revised every three months from the date of first
disbursement, if there is a change in RPLR, i.e. the interest rate on your loan may
change. However, the EMI on the home loan disbursed will not change. (If the
interest rate increases, the interest component in an EMI will increase and the
principal component will reduce, resulting in an extension of the term of the loan, and
vice versa when the interest rate decreases).customer will be provided with an
annual statement indicating the details of the interest and principal payment made
during the year.
Security
Security for the loan normally is first mortgage of the property to be financed
and/or such other collateral security as may be necessary. Interim security may be
required, if the property is under construction. Collateral or interim security could be
assigned to HDFC of life insurance policies, the surrender value of which is at least
equal to the loan amount, guarantees from sound and solvent guarantors, pledge of
shares and such other investments that are acceptable to the HDFC.
Loans from HDFC are available even if you are availing a housing loan from
your employer. HDFC has already entered into arrangements with several employers
enabling employees to avail of loans both from the employer as well as HDFC for the
same property. Please do ensure that the title of the property is clear, marketable
and free from encumbrance. To elaborate there should not be any existing mortgage,
loan or litigation which is likely to affect the title to the property adversely.
Documents/supporting documents to be attached:

For all the applicants:
1. Allotment letter of the o-operative society/association of the apartment
owners.
2. Copy of approved drawings of proposed construction/purchase/extension.
3. Agreement for sale/sale deed/detailed cost estimate from architect/engineer
for the property to be purchased/constructed/extended/renovated.
4. If you have been in your present employment/business or profession for less
than a year, mention an a separate sheet details of the of the occupations for
previous five years, giving position held, reason for change and period of
same.
5. Applicable processing fees.

6. Proof of residence: attested copy of any one of the following:

 Ration card
 Passport
 Driving license
 Voters identity card
 Current telephone bill/electricity bill/gas bill
7. Proof of identity: attested copy of ay one of the following:
 Passport
 Driving license
 Voters identity car5d identity card issued by the employer (if employed in
state/central government)
 PAN card
8. Certificate of loan outstanding issued by the lender (for refinance cases only)
9. Any other information regarding your repayment capacity that is necessary
and will assist HDFC in appraising the loan proposal.
Tax benefit
Customer are eligible for certain tax benefits on principal and interest
components of a loan under the Income Tax Act, 1961.
Eligibility
The repayment capacity as determined by the HDFC will help in deciding how
much we can borrow (the cost of the property or Rs.1crore whichever is lower).
Repayment capacity takes into consideration factors such as income, age,
qualifications, number of dependents, spouse’s income, assets, liabilities, stability
and continuity of occupation and saving history. And, of course, HDFC’s main
concern is to make sure you can comfortably repay the amount you borrowed.
About the product

HDFC’s Home Loans offers you various unique benefits and are easy to
arrange and repayable in easy monthly instalments. The terms of the loan can be
structured according to the customer requirement. Home loans can be applied for by
either individually or jointly. Proposed owner of the property, in respect of which the
loan is being sought, will have to be co-applicants.
However, the co-applicants need not be co-owners. Loans can avail up to a

maximum of 85% of the cost of the property (including the cost of the land). HDFC
lends up to a maximum of Rs. 10000000 on a home loan to an individual. You can

repay the loan over a maximum period of 20 years. They determine the loan amount
after evaluating the repayment capacity of the individual. HDFC’s main concern is to
help individuals comfortably repay the borrowed amount.
Superior processing capacity:

HDFC has over the years invested substantially into the computer systems
and training. This has enabled HDFC to respond to customer needs and build up
capabilities to approve loan on the spot or disburse them fast.
Branch network:
HDFC has offices spread all over the country. This extensive network helps
HDFC in providing service to large and well spread out clients. This network of
interconnected offices (on data circuits) helps HDFC to process applications for
purchase of property anywhere in India. HDFC has further established an office in
Dubai and service associates in Kuwait, Oman, Qatar, Bahrain and Saudi Arabia to
make it easier for Middle East based non-resident Indians to apply for the loan to
HDFC-India.
Experienced trained staff:

HDFC is a pioneer of housing finance in India and has been a leader in the
business for the last 25 years. HDFC has vast experienced and very committed and
skilled staff to handle housing loan applications and solving customer problems.
Free counselling:
HDFC believes that it is in the business of providing solutions to an
individuals need for owing a house, and not just in the business of providing finance.
Keeping this in mind HDFC will provide free counselling to on how and where to buy
a house in India (property services) or what are the prices and trends in the real
estate market or what precautions one should take before buying a house. This
service is offered at any of the HDFC’s offices.

Legal and technical guidance:

HDFC has qualified legal and technical staffs who liaise with developer to
collect and scrutinize the property documents and permissions. We have master files
of most projects being developed by the reputed developers. It has always been
HDFC’s endeavour to protect the interest of the borrower, as we believe that the
buying a house is one of the most Important decisions in this life.
Flexible (customized) repayment schemes:

Keeping in mind the fact that each individual has unique problem requiring
unique solution, HDFC has developed various repayment options like Step up
Repayment Facility (SURF), Flexible Loan instalment Plan (FLIP) Balloon Payment
plan and Structured Repayment Plan.
Step up repayment facility:

HDFC Ltd has a hitherto “with you, right through” .This statement HDFC
proves time and Again by developing close relationship with individual customers and
by constantly Developing and marketing in the market new and innovative products
that increase the Comfort level of the customers. Along the same philosophy HDFC
came up with Step up Repayment Facility which once again reassures customers
that HDFC helps you achieve your dream.
This facility is especially helpful to those customers who want to get a loan on
an amount that is not falling within the permissible limit of their repayment capacity. It
also is in line with HDFCs aim to provide greater degree of personalization in service
and the tools. Hence there can be the situation wherein the applicant is not in the
position to pay the required EMI which is calculated by the ILPS (Individual loan
processing system).HDFC in this case offers to let the applicant use one of the two
plans to repay the loan amount.
The EMI Chooser 1

In this plan the applicant gets the advantage from HDFC to select the amount
that he wants to pay as his fist EMI. This means that HDFC will let the applicant
decide what amount he can comfortably pay to HDFC in the first term of his Loan
Repayment Schedule. The system will calculate the next two EMIs for the next two
terms The customer can hence decide when he wants to repay the maximum amount
of the Loan to HDFC and when he wants to repay minimum leftover or remaining
amount of the loan in the form of still smaller EMIs.
The EMI Chooser 2

This plan is an extension of the aforementioned plan .In this plan HDFC helps
the Applicant by letting him choose two EMIs .This means that the Applicant can
select the amount that he wants two pay for both the First and the Second terms of
his repayment schedule. This translates into more help and more convenience to the
applicant. However the benefits of these plans don’t stop here. The Applicant can
also allocate the term length for which he wants to pay what amount This translates
into a great advantage to the Applicant .He can now link
1. His current salary
2. The rate of average increment,
3. His existing and expected obligations,
4. His existing and expected expenses
5. The length of the term among others.
HDFC can hence assist the Applicant in developing a much more

personalized loan plan as compared to its competitors in the Housing Loan market.
The Applicant can also save money by using these plans .This is because the total
Outflow in case of a regular plan is more as compared to these special plans. The
Applicant will hence obtain more benefit in case of Prepayment and elsewhere. All
Loans from HDFC Ltd are subject to Tax exemption and be treated as Rebate.
Hence HDFC lets the customer save their hard earned money.
Flexible loan instalment plan (flip)

Another First of its kind product from HDFC .This is also to assist the
Applicant to easily secure a loan in the following condition. FLIP is used when the
applicant and co-applicant want to jointly repay the loan. There is however a problem
in the situation which would otherwise not allow the loan to be sanctioned. There are
two Applicants hence two incomes.
Therefore in the joint payment they can combine their income to repay the
loan. Let there be Mr. A and B who want to take a loan for 14 years. A is the father
and B is the son of A. Now consider the situation in which A and B want to take a
loan and jointly repay it. But A is 52 years old and B is only 25.
Hence A will retire after 8 years and will not be repaying the EMI but B can
continue to repay the loan. In that case although there will be a problem at other
places but in HDFC this is solved by taking different incomes in the terms.
Hence the income that will be considered earlier will be the father’s income
and at his retirement or at any other selected stage of repayment we will begin to
consider only the income of the son. The advantage of FLIP in terms of the Applicant
is that of joint payment, personalization, easy repayment, and freedom from many
possible problems. In the Illustration the father is going to pay only for 105 months
and after that we are to consider the sons salary only for the next remaining 60
months.
Paripassu/second mortgage arrangement:

HDFC has a tie-up with a large number of public sector organizations and
banks which enable us to offer loans to your employees with the flexibility of their
spouse also availing a loan from his/her own employer.
Safe document storage facilities:

HDFC has state of art storage facilities which are theft and fire proof, at
various locations where loan and property documents are stored. In this way valuable
documents are stored safely over the period of the loan and are released almost
immediately after a customer repay his loan.
Electronic mail:
HDFC through its E-mail services can promptly respond to queries. In
addition, HDFC can promptly send its application form cum brochure and other detail
on its loan products by email to interested individuals. For Non-resident Indians our
interactive website offers another means of contacting us. In our effort to reach out
globally dispersed Non-resident Indians, we will continuously enhance our website.
Home conversion loan:

HDFC offer the option of a home conversion loan to its existing customer who
are interested in moving to a new house. Through this scheme the customer can
apply to have their existing loan transferred towards the purchase of the new home.
Customers may also apply for an additional loan amount for the purchase of the new
house. This gives the customers the option of selling t6heir existing house if they
wish to, without having to repay their old loan

Application can be made before selecting the property:

Individuals may make an application for the loan even if the property has not
been selected or the construction has not commenced. HDFC can provide
assistance in locating an appropriate house to such customers.
Home improvement loans: As an exclusive offer to its existing customers

HDFC offers Home Improvement Loan up to 100% of the improvement cost as
compared to the home improvement loans up to 70% of the improvement cost
offered to the general public.
Fee:
A processing fee of 0.5% of the loan amount applied for rs.5 per rs.1000 of
the loan applied for is payable when the application form is submitted to HDFC. This
fee is in the respect of costs incidental to the application. For example:
Loan applied for fees
Rs.20000 Rs.100
Rs.100000 Rs. 500
On approval of the loan, a loan offer is made to you on acceptance of the

offer. You have to pay an administrative fee of Rs.0.5% of the loan approved. You
can also pay the processing fee and administrative fee upfront i.e. 1% of the loan at
the time of submission of the loan application itself. This fee is in respect of the costs
incidental to the application. Taxes as applicable will be charged on the fees
collected.
Charges:
For Fixed Rate Home Loan (FRHL) an early redemption charge of 2% of the
amount being prepaid is payable, if the amount being repaid is more than 25% of the
opening balance. However under Adjustable Rate Home Loan (ARHL) option early
redemption charges of 2% is payable only in case of commercial refinance.
You may be required to submit the copies of your Bank Statements or any
other documents that HDFC deems necessary to verify the source of prepayment.
You can make payment for fees and charges by cheque marked “payee’s account
only” drawn on a bank in a city where HDFC has an office or by demand draft
(payable at par to HDFC).

How to apply
Customer can either download (in PDF format) the application form or get the
application form by E-mail. Alternately the customers can collect the application form
from any of your nearest HDFC offices. Customer need to submit it along with
supporting documents and processing fee at any HDFC office that is convenient to
the customer.
Customers can make payments by the cheque marked “payee’s account

only” drawn on a bank in a city where the HDFC has an office, by demand draft
(payable at part to HDFC) or by cash. Customer can make an application at any time
after they have decided to acquire a house even when the house has not been
selected or construction has not commenced.
HDFC will consider your application, make enquiries as it deems necessary

and convey its decision to you. On acceptance of the offer, you will have to pay an
administrative fee for the loan approved.
Customer can take the disbursement of the loan after the property has been
completed and you have invested your own contribution in full (own contribution is
the total cost of the property less HDFC’s loan).
The loan will be disbursed in full or in suitable instalments (normally not

exceeding three in number) taking into account the requirement of the funds and the
progress of the construction, as assessed by HDFC and not necessarily according to
the builder’s agreement.
Stages of home loan

1.10 Function of the Bank
Deepening of relationship, scoping, engaging customer by cross selling the products.
Two ways of engaging customer

 Managed customer
 Non managed customer.
Managed customer –
a. Classic
b. Preferred
c. Imperia
Non managed customer – All branch staff
 All Personal Banker/Relationship Manager/Imperia Customer Relationship

Manager are bound to meet two customers daily from their portfolio.
PB (Personal Banker Sales) should has 125 groups
RM (Relationship manager) should have 200 groups
ICRM (Imperia customer relationship manager) should have 125 groups
 Group ID represents – Customer X has the financial decision maker of the

family.
 Because of family relation or blood relation, X can open his wife’s account,
kids, father and mother account (these are called as customer to group
accounts) and enjoy same benefits what X is enjoying.
 Group ID should have more than 3 CTG.
 Classic Personal Banker/Preferred Relationship Manager/Imperia Customer

Relationship Manager is the one point contact for their respective portfolio
customer’s.

1.11 Roles of Managed Resources
Classic Personal Banker –

Every classic Personal Banker are supposed to meet at least one unique
customer from a group every day. Profiler of each customer needs to be updated in
CRM and complete interaction leads generation is to be recorded in CRM. This
practice is followed so that any change or new Personal Banker or Relationship
Manager should be aware of the customer profile and products or task discussed
with the existing Personal Banker or Relationship Manager.
A Personal Banker should ensure that he is providing best in class banking

services to our customers, Maximizing the CTG / IPH of classic portfolio
management assigned, Opening of NTB accounts and add more customers to the
portfolio and Ensure growth of portfolio total value.
Key Result / Responsibility Areas

 Manage the benchmark number of customers in the portfolio
 Extend Classic benefits to customers basis identification in eligibility lists/ LTR
 Ensure that individual customers are grouped and Customer To Group (CTG)
Ratio is maintained on the portfolio
 By grouping them with their family members who already hold
accounts with us.
 By grouping them with their family members post selling liability
products to the family members, if they do not have banking
relationship with us
 Ensure that optimal levels of Income generating Product Group
Holding (IPH) is reached
 Ensure that within each customer group a minimum number of
stipulated Income Generating products are sold
 Enhance Values within each of the customer groups
 Online updating of CRM Next at every stage of customer contact on the
portfolio
 Proactively raising the eligible customers to the classic portfolio within the
prescribed product product programme.
 Migrating customers to use direct banking channels for various request.
Providing various demos to customers.

 Digital Demos Benchmark / effective migration of portfolio customers from

physical mode to Digital Platform
 Educating customers of various bank Payments options including Pay Zapp /
Chillr/ Buying products using Smart Buy
 Ensure that all classic customers within the portfolio are contacted
 Each PB Sales should meet his Liability growth plan which also needs to
define is score cards.
 Ensure achieving Personal visit and contractibility bench mark.
 Attrition control
 Includes persuading the customer to continue and if required renew
FD’s
 Deepen by cross selling ‘sticky products’ like Demat, Bill Pay,
Advisory.
 Ensure all EMI and ECS is linked to this account.
 Ensure quality of relationship while flagging. Should be capable of
maintaining eligibility
 Regular customer contact to establish needs of the customer and
opportunities to cross-sell
 Monitor large amount movements and account closure from the
deposit accounts and ensure that customer does not attrite
 Ensure that the marketing analytics list on possible attrite, is called
and retained
 Calling on Large Value Attrition:
 Customers who have attired over a certain value (as defined by
product) for both savings and current accounts to be called and
reasons ascertained
 To impress upon customers to make us the primary bankers and
ensure that all funds are retained.
 Enhancing customer wallet size
 Ensuring that customers make us their primary bank
o Knowing about where all the customer is currently banking and
moving him to our Bank
o Ensuring that customer scope is done and products targeted
accordingly
o Sales to family members and associates (all network)

Preferred Personal Banker or Relationship Manager –

Every Preferred Personal Banker are supposed to meet at least two unique
customer from a group every day in quarterly. Profiler of each customer needs to be
updated in CRM and complete interaction leads generation is to be recorded in CRM.
A Preferred Relationship Manager has a key role in managing high Net worth
customer and providing them best in class banking services. Ensuring we are the
primary bankers for the customer, The RM also have to do New acquisition of
customers to portfolio / deepening their banking relationship with us and offering
them with various products of our bank.
RM has to enhance the relationship by cross-selling products and services as

per the profile & need of the customers and ensure Retention of the customers by
providing the best possible services and being the dedicated point of contact for
these customers
Key Result / Responsibility Areas -

(Acquiring, Enhancing, Deepening and Retention)
 Acquire new customers who meet product criteria and flag them on the
system
 Referrals generated from existing customers
 Leads generated by branch staff & personal leads
 Internal bank databases
 Increase liabilities size of relationship via
 Balances in a/c’s of existing customer
 Acquire all related ids of the Primary id and send racing /deracing
request on Web-based system for flagging and grouping.
 Use FD maturity reports/event based trigger’s to track maturity of
HDFC FDs and prevent outflow
 Use updated wallet share data in CRM Next to track FDs in other
banks and divert them into HDFC on maturity
 Use updated Wallet share Data in CRM Next to track accounts and
products with other bank and transfer the same
 Know the customer’s business to proactively provide financial
solutions

 Utilizing the sales resources (BDR or COEX or Asset Coordinator) for optimal
sales support
 Penetration of products across family groups.
 Sales across all product segments-TPP, Assets, Trade Forex ,Cardsetc and
new products.
 Promotion of digital platforms like net banking / mobile banking / Pay Zapp /
Chillr / Smart Buy etc to customers
 Meet customer engagement process as per guidelines laid down. i.e.
Contacts Benchmark- 100 % of active groups to be contacted every month.
 Personal Visit Benchmark - 100 % of active groups to be met atleast once in
rolling 3 months i.e., 33.33 % unique visits per month.
 Contacts Benchmark
 For preferred -100 % of active groups to be contacted once every 2
months i.e., 50 % unique contacts per month.
 For Imperia - 100 % of active groups to be contacted every month.
 Personal Visit Benchmark-
 For preferred -100 % of active groups to be met atleast once in rolling
4 months i.e., 25 % unique visits per month.
Portfolio Management -
 Identify existing/new customers who meet Preferred product criteria and flag
them on the system and upgrade these customers under the Preferred
programme in line with the Preferred grouping criteria
 Liaising with PB to flag eligible customers from Classic portfolio
 Identifying customers through Large Transaction reports (LTR)
 GMs or VPs of all Cat A companies and CSRM salary account
companies which meet programme criteria and have future potential
 Taking referral from satisfied customers.
accounts with us

 Ensure that optimal levels of Income generating Product Group Holding

(IPGH) is reached
stipulated Income Generating products are sold
 Ensure that the Customer Group profitability is achieved
 Manage Band 1 and 2 customers and ensure that they are moved to
Band 3 and above
 Ensure that atleast one income product is sold to each Preferred
group in the year
 Ensure minimum productivity of 4 income per day
 Maximum customer’s transaction to be done online across customers /
groups.
 Portfolio Values to grow gradually - CA, SA & TD
 Call Planning basis APT, Call Plan. Pre & Post Sales Planning
 Sales Kit comprise of Forms / Fact sheets / Recommendations to ensure
Instant close of sales
 Tracking of all products leads till end result not justified.
 Customer interactions are duly updated on CRM Next
 Any other job / task assigned by supervisor from time to time.
 Profile changes (if any) are duly updated in CRM Next
 Customer account must be updated with current contact details.
 Enhancing customer wallet size
 Ensuring that customers make us their primary bank
o Knowing about where all the customer is currently banking and
o Ensuring that customer scope is done and updated on ongoing
basis in CRMNext and products targeted accordingly
o Sales to family members and associates which have been
grouped together
 Attrition control of customers
 Includes persuading the customer to continue and if required renew
FD’s
 Deepen by cross selling ‘sticky products’ like Demat, Bill Pay,
Advisory.
 Ensure all the ECS and EMI is getting linked to this account.

 Ensure quality of relationship while racing. Should be capable of

maintaining eligibility
opportunities to cross-sell
 Monitor large amount movements through CH106 portal and 1crore
portal and account closure from the deposit accounts and ensure that
customer does not attrite
 Ensure that the marketing analytics list on possible attrite, is called
and retained
Customer Services -
 Ensure quality customer service is delivered.
 Disseminating required product information.
 Recording complaints as per the specified process.
 Cross selling of products to increase regular inflow / outflow of account, this
build balances across customers / groups.
 Ensure to have minimum 200 active groups any time in portfolio by aquiring
new customer or racing new from base.
 Resolving all complaints received from preferred customers within the
stipulated TAT’s
 Ensure appropriate customer communication on closures & copy of
that to be filed.
 Joint calls with Senior management to explore business possibilities
 Identify NR reference, family members of existing group & explore their
banking, investments & other relationship.
 CEP along with quality interactions with customer and Excellent service to
customers
 Preventive complaint management
 Asking for feedback from customers, who may not be complaining
 Promoting all direct banking channels and ensuring that the customer is
utilizing the same
 Check back on recent customer’s registered to DBC channel and give any
specific help required

Imperia Customer Relationship Manager –

Every Imperia Relationship Manager are supposed to meet at least two
unique customer from a group every day in every three months and same thing
should be updated in CRM and leads generation is to be recorded in CRM.
An Imperia Relations Manager has to Manage High Net worth customers and
providing them best in class banking services. Ensuring we are the primary bankers
for the customer.
The IRM has to enhance the profitability of the relationship by increasing the
relationship size, cross selling the right products, acquiring family A/c and retaining
the relationship. An Imperia RM is a one point contact to Imperia customers for all his
financial needs and services, thus enhancing current relationship value and wallet
share which will further increase profitability from these relationships.
Key Result / Responsibility Areas -
Managing Imperia Portfolio

 Identify existing branch customers who meet Imperia programme criteria and
flag them on the system to upgrade these customers under the Imperia
programme
 Through eligible lists provided by Product from time to time
 Liaising with PB/ Preferred RM to flag eligible customers form Classic/
Preferred portfolio
 Identifying customers through Large Transaction reports (LTR)
 GMs or VPs of all Cat A companies and CSRM salary account
companies
 Other databases available with the RM/Wish list.
 Maximum customers transaction to be done Online across Customers /
Groups.
 Portfolio Values to grow gradually - CA, SA & TD
 Cross selling of products to increase regular inflow / outflow of account, this
build balances across customers / groups
 Tracking of All Products Leads till end result not justified.

 Acquire new customers who meet product criteria and flag them on the
system
 Referrals generated from existing customers
 Leads generated by branch staff & personal leads
 Databases
 Regularly interact with the customer to build rapport and understand the
profile.
 Updation of all customer interaction / profiler / sales in CRM next
 Enhancing customer wallet size. Ensuring that customers make us their
primary bank
 By managing his / her wealth
 Knowing about where all the customer is currently banking and
 Ensuring that customer scope is done and updated in CRMNext and
products targeted accordingly
 Sales to family members and associates (all network)
accounts with us
 Ensure that optimal levels of Income generating Product Group Holding
(IPGH) is reached
stipulated Income Generating products are sold as per the customers
profile and needs
 Ensure that the customer uses the products sold to him
 Cross selling appropriate products to the customers and activating
usage.
 Enhance Values within each of the customer groups by ensuring that a/cs are
activated and FDs are sold to all customers (as per profile)
 Retain the customer via the experience offered.

Sales to customers
 Increase liabilities size of relationship via:
 Balances in a/c’s of existing customer
 Acquire all related ids that are financially dependent on the Primary id
and send entry form to CPU for flagging and grouping
 Use FD maturity reports/ event based trigger’s to track maturity of
HDFC FDs and prevent outflow
 Use profile to track FDs in other banks and divert them into HDFC on
maturity
 Use profile sheet to track accounts and products with other bank and
transfer the same
 Know the customer’s business to proactively provide financial
solutions
 Tracking customer transaction to identify where funds move to and
acquire those a/cs also
 Attrition control of customers
o Includes persuading the customer to continue and if required
renew FD’s
o Deepen by cross selling ‘sticky products’ like Demat, Bill Pay,
Advisory.
o Ensure quality of relationship while flagging. Should be
capable of maintaining eligibility
o Regular customer contact to establish needs of the customer
and opportunities to cross-sell
o Monitor large amount movements and account closure from
the deposit accounts and ensure that customer does not attrite
o Ensure that the marketing analytics list on possible attrite, is
called and retained
 Penetration of all products across family groups as per profile and
requirements.
 Sales of various products like Credit Cards,Assets,Trade Forex, TPP & new
products.
 Promotion of Pay Zapp , Chillr Smart Buy to customers

Customer Services
 Ensure quality customer service is delivered
 Identify NR reference, family members of existing group & explore their
banking, investments & other relationship.
 Resolving all complaints received from Imperia customers within the
stipulated TAT’s
 Preventive complaint management
 Asking for feedback from customers, who may not be complaining
 Promoting all direct banking channels and ensuring that the customer is
utilizing the same
 Check back on recent customer’s registered to DBC channel and give
any specific help required
 Ensuring that customers are introduced to the RBH / BM so that there is back
up when the customer visits the branch and the RM is out
 Providing Net banking Demos to customers / list of requests which can be
processed online
 Make HDFC Bank the primary or only banker for the customers.
 Ensure deepening and enhancement per group.
 Growth in liability base of the portfolio
NRI (Non-Resident Indian)Servicesat Puttenahalli Branch, Bangalore -

 One Indian bank is keeping pace with global banking and staying in tune with
customer's needs – HDFC Bank.
Advantages of HDFC Bank’s NRI Banking Services:

 Quick and easy Funds transfer options-
o Quick remit – Speedy online money transfer from USA to India in over
600 locations.
o India Link – A fast and efficient way to remit funds through exchange
houses in the Gulf.
 Investment Services –
o Investment Advisory Services – A dedicated team of Advisors offer
professional advice on a range of financial instruments in line with
customer’s asset location.
o Portfolio Investment Scheme – Customer can trade on recognized
Indian stock exchanges under the Portfolio Investment Scheme (PIS)

through designated branches of HDFC bank like Puttenahalli Branch,

HDFC Bank Bangalore.
o E-Age Advantages –
 Free Email Alerts – Customer can receive regular updates from the bank
account via email.
 Bill Pay facility – Customer can pay Indian utility bills from the convenience
place like home or office, through Phone Banking, Net Banking or the ATM.
Process before meeting with customer by Relationship manager –

 Pre call planning
 Actual call
 Post call discussion with Branch Manager.
 Account planning tool. How a banker should deepen the relationship
with customer – by opening one more family account because he or
she is happy with the services and will also enjoy the same benefits.
 Cross sell more products then customer stickiness will be there,
selling right products as per his need, ensuring customers products
are more convenience with the bankers – one way of engaging with
customers.
Non managed customer –

 Customer Walk-in to branch – welcome desk for address change, any
services to sales bankers do.
 Pre-approved offers are informed.
 Offers related to Credit card or smart buy are informed in all counters.
 Central team also sends data for enabler calling – Business A/c
Credit card
Calling to the data
 Catchment scoping with different departments like ME, Auto loan, home loan
balance transfer, activity – apartment, master initiatives – segmented
business- health care, educational buildings.

1.12 Retail Banking Products and Services
1. Accounts and Deposits –

Experience banking of the future with a bank account from HDFC Bank.
Everyone needs a bank account! It’s crucial for the day-to-day management of the
customer’s money. So ensuring that every customer have a savings account that
meets customer’s needs will make a big difference.
a. Savings Account
It is a unique savings account in India, which helps customer to withdraw or
deposit cash through wide network of branches and ATMs across India.
Features
 Comforts of free Phone Banking, Mobile Banking and Net Banking from
Practically anywhere, anytime with your savings account.
 International Debit Card to shop at over 80 lakh establishments in 140
countries. Customer can pay electricity bill, mobile phone bills through the
phone, Internet or the ATM with the unique Billpay Facility. All this facilities for
customer for a minimum balance of just Rs 10,000/-
b. Current Accounts
These accounts are suited for regular transactions. This type of account is
more suited for users like firms, companies, public enterprises, businessmen, etc.
Current accounts do not earn any interest due to the fluidity offered by the bank.
Current accounts usually do not carry a limit on the number of transactions

which can be made.
c. Salary Accounts
This account is basically opened by employer to credit salary.
The speciality of this account is that there is no need to maintain minimum

balance account hence it can also be called as zero balance account. However, the
amount maintained in the account, will not be entitled for interest rate.
If the salary does not credit for consecutive three months than the account is
considered as savings account and minimum balance maintenance is required.

d. Deposits
It allows money to be deposited and withdrawn by the account holder. These
transactions are recorded on the bank’s books, and the resulting balance is recorded
as a liability for the bank and represents the amount owed by the bank to the
customer.
Some banks may charge a fee for this service, while others may pay the
customer interest on the funds deposited.
2. Loans
Loan in simplest terms can be explained as a thing that is borrowed,
especially a sum of money that is expected to be paid back with Interest.
a. Personal Loan
b. Car Loans
c. Home Loan
d. Two Wheeler Loans
e. Educational Loan
f. Government Sponsored Programs
3. Cards
a. Credit Cards
b. Debit Cards
c. Forex Cards
4. Dematerialized Account
Mutilated certificates, lost certificates, Post delays and counterfeit shares are
a thing of the past. It is a world of safe, secure and convenient buying, selling and
transacting without suffering endless paperwork and delays. Customer can easily
convert securities to electronic format with the HDFC Bank Demat Account. HDFC
Bank provides online access to customer’s Demat Account, so that customer can
check holding using the Net Banking facility.
Advantages of opening a Demat Account

 Shorter settlements thereby enhancing liquidity.
 No stamp duties on transfer of securities held in demat form.
 No concept of market Lots.

 Change of name, address, dividend mandate, registration of power of

attorney, transmission etc. ca
 n be effected across companies held in demat form by a single instruction to
the DP
5. Investments
6. Forex
7. Premier Banking
a. Imperia Banking
b. Preferred Banking
c. Classic Banking

CHAPTER – 2 PROBLEM DEFINITION AND KEY

RESULT AREAS
2.1 Problem Definition
 Penetration level of HDFC ME business among B2B segment at puttenahalli.
 EDC machines basis customer need/wants and scope the puttenahalli

catchment area.
 HDFC Bank should have maximum customers with HDFC EDC machines
from various B2B segments basis their potential and credibility.
 Competition bank pricing and offer better pricing basis, value and volume of
transactions.
 Segmented business as per the master initiative program of HDFC Bank, i.e.
Education segment, Healthcare, Association/Trust and Government
Segments.
 Merchant initiative adds value towards CASA numbers and overall liability
value to the HDFC Bank.
2.2 Key Result Areas
 14 Savings Account, 3 kids account and 4 women savings account leads

generated.
 1 Housing loan and 1 Personal loan leads generated and reported to

relationship manager for further verification of documents.
 27 customer has shown interest for installing EDC machine in their retailer
shop.
 Online updating of CRM Next at every stage of customer contact.


opportunities to cross-sell.
 Penetration of all products across family groups as per profile and

requirements.
 Enhancing customer wallet size by acquiring merchants, deepening of

existing current account and saving account relationships with customer walk
in and customer retention.
 Regularly interact with the customer to build rapport and understand the
profile.
 Customers should currently banking with HDFC Bank, i.e. to make HDFC
Bank the primary or only banker for the customers.
 Retain the customer via the experience offered.
 Providing Net banking Demos to customers/list of requests which can be

processed online.
 Report filling, Passbook print, account opening form filling, FD/RD form filling,
Deposit/NEFT/RTGS form filling.
 Operational activities such as printing, scanning of documents like Aadhar

card, PAN card and pulling out files from the given samples during auditing
and reporting the same to authorizer.
 Customer service to ensure walk in customer’s issues.
 Entered in Inward/Outward register regarding courier receive/dispatch details

including reference number.
 To update in pending document register whichever pending/unprocessed

documents are not in process.

 To put AOD seal on the account transfer form, E-age form and Third party
fund transfer form.
 Verify customer point verification regarding address confirmation.
 To Update in FTS software regarding E-age form issue, Account transfer form
issue and Third party fund transfer issues of the customer keeping dispatch
address to RDVU Bangalore and account details (Name of customer, A/c
number, Customer ID) and forward all these details to personal banker
authorizer for further verifying and roll out to dispatch address.

CHAPTER – 3ANALYSIS AND INTERPRETATION
3.1 Research Methodology
3.1.1 Background of the Problem
The survey was conducted to find out the perception of customers about Merchant
Establishment and to design promotion strategies for HDFC’s EDC terminals at
Puttenahalli catchment area, Bangalore. This is about sales promotion of HDFC’s
EDC machine and to ensure merchant initiative adds value towards CASA numbers
and overall liability value to the HDFC Bank.
This survey is for potential and credibility customer. This includes comprehensive
market survey and studying the dynamics of the market in terms of perception. And it
also includes the analysis of the information gathered and implementation of sales
strategies and techniques devised by the team.
The study was conducted to analyse the merchant requirements and service
related issue concerned with the EDC (Electronic Data Capture) machine and then
proceed to sales.
Tools such as questionnaires (customer profiling – Padhyatra) were used in

identifying the requirements of the customer and suggest creative ways for promoting
and penetrating the market and structured interviews were used to proceed with offer
better pricing, value and volume of transactions.
3.1.2 Statement of the Problem
Today is an era of smart money or plastic money. The very concept of

currency notes are getting changed day-by-day as more and people are going for
credit and debit cards. People do not prefer to carry cash that increases the
thickness of their wallet and concept of smart money or plastic. Money has come into
picture in the form of various credit cards. To carry 2-3 cards in wallet is seen as
status of symbol in the society.

Merchant Establishment:
This department started its operations in Bangalore in the year 2002. The
complete department deals with only one product and that is “The EDC (Electronic
Data Capture) machine” because HDFC Bank found a need to enter the market of
EDC machine in Puttenahalli, Bangalore was having a very high potential for
merchants who were in need of this machine.
Though there are more than around 15 players in this market its main
competitors are ICICI Bank, Axis Bank, State Bank of India, Canara Bank, IDBI, etc.
It’s gained the late mover advantage by giving additional services and establishing
stronger relationship with the merchant.
The study aims at deriving information about non customers of HDFC and the
willingness level among those customers to change to HDFC’s EDC machine.
3.1.3 Objective of the Study
1. To find out the penetration level of HDFC ME business among B2B segment
at Puttenahalli.
2. To focus on a B2B segment in the Puttenahalli catchment area.
3. To find out the increase shareholding or share percentage of market for
further improvement of HDFC Bank.
4. To target the EDC machines basis customer needs/wants and scope the
Puttenahalli catchment area.
5. To suggest creative ways for promoting and penetrating the market.
6. To ensure that HDFC Bank have maximum customers with HDFC EDC
machines from various B2B segments basis their potential and credibility.
7. To understand competition bank pricing and offer better pricing basis, value
and volume of transactions.
8. To cross sell other banking products along with acquiring Merchant.
9. To target segmented business as per the master initiative program of HDFC
Bank, i.e. Education segment, Healthcare, localized segment, Top customers
of competition, Entertainment segment, Association/Trust and Government
Segments (Tax payment, Bill payment).
10. To ensure Merchant initiative adds value towards CASA numbers and overall
liability value to the HDFC Bank/Branch.

3.1.4 Methodology
 Well-structured questionnaire comprising both open-ended and closed

questions were designed for the respondent.
 A pilot survey was conducted to ensure the accuracy of the designed
questionnaire.
 The necessary changes were made in the questionnaire and the actual
survey was conducted after the approval from the industry mentor.
 Personal interviews were conducted as per the convenience of the
respondents and also keeping the time- constraint.
 Collection of data from customers.
 Data was also collected from the records existing in the bank after discussion
with industry mentor.
3.1.5 Research Design
Type of research – The research work is of descriptive type. A research design is

purely and simply the frame work or plans for a study that guides the collection and
analysis of data.
The information is collected from the 200 merchants having EDC machine
(HDFC and Non HDFC) in their firms. The information regarding role of factors
affecting sales promotion and their present EDC services.
Sample unit: Garments, General Store, Super Market, Health care, Footwear, Hotel
and Restaurant, Furniture store, Liquor Store
Sample Size: The sample size taken for the study was 200.
Sampling Technique: In this study convenience sampling method was used to draw
the sample size of 200 merchants having EDC machine (HDFC and Non HDFC) in
their shops.
Contact Method: Personal Interview.

3.1.6 Actual Collection of Data
Data was collected from both primary and secondary source.
PRIMARY DATA
The primary data was collected by means of a survey. The interviewer
approached the respondents, and a structured questionnaire (customer profiling-
Padhyatra) was given to the respondents with a request to answer the questions and
return the questionnaire.
The questionnaire contains 12 which reflect on the number of HDFC ME

business among B2B segment, shareholding or share percentage of market and to
understand competition bank pricing. The response of the customer and the is
recorded on a percentage scale basis. The filled up information was later analysed to
obtain the required interpretation and the findings.
SECONDARY DATA
Data was also collected from the records existing in the bank. In order to have
a proper understanding of the HDFC managed programs a depth study was done
from the various sources such as magazines, a lot of data is also collected from the
official websites of the banks and the articles from various search engines like
Google, yahoo search and answers.com.
3.1.7 Technique for Analysis
Data collected through questionnaire has been analysed using IBM SPSS
software by percentage analysis. Based on the analysis conclusions and suggestions
have been drawn
SAMPLE DESCRIPTION
For this project, mainly considering EDC machine using shop/super markets,
this includes liquor shops, Retail- Apparels, Departmental Store, Restaurants and
Hotels, Furniture store, Jewellery shop, Foods and Beverages, Health care.

3.1.8 Field Work
This study was made from 16th April 2018 to 16th June 2018 during this period
the following days were distributed as below.
- Six days for improve upon the study design prior to performance of a
full-scale research project.
- Seven days discussion with Branch manager (Industry Mentor)
- Seven days discussion with every branch staff and understanding the
organisation structure and roles and responsibilities of each vertical.
- Twenty days collection of primary data.
- Twenty days for the revised primary data collected and discussion
with industry mentor.
Comparative analysis of HDFC and ICICI Bank

PARAMETER HDFC BANK ICICI BANK
Markets YES YES
Technology YES YES
Survival growth and profit YES YES
Philosophy YES YES
Self – concept YES YES
Public Image NO NO
Employees YES YES
Customers YES YES
Products Services YES YES

3.2 Financial Performance
The last eighteen years have been very fulfilling. We can of course wax
eloquent about it in so many ways, but they say, figures don't lie, so we will let the
figures do all the talking. They will give you a fair idea of how we have grown in the
past few years.
Fig. 3.1 HDFC Bank Key Parameters Quarter ended Mar18

Profit & Loss Account: Year ended March 31, 2018

For the year ended March 31, 2018, the bank earned total income of Rs
95,461.7 crore. Net revenues (net interest income plus other income) for the year
ended March 31, 2018 were Rs 55,315.2 crore, up by 21.7% over Rs 45,435.7 crore
for the year ended March 31, 2017. For the year ended March 31, 2018, the core net
interest margin was 4.3%. Core cost to income ratio was at 41.7% for the year ended
March 31, 2018, as against 44.5% for the previous year.
The Bank’s net profit for year ended March 31, 2018 was Rs 17,486.8 crore,
up 20.2%, over the year ended March 31, 2017.
Balance Sheet: As of March 31, 2018

Total balance sheet size as of March 31, 2018 was Rs 1,063,934 crore as
against Rs 863,840 crore as of March 31, 2017.
Total deposits as of March 31, 2018 were Rs 788,771 crore, an increase of

22.5% over March 31, 2017. As of March 31, 2018 current account deposits were at
Rs 119,283 crore and savings account deposits at Rs 223,810 crore grew by 15.6%
over March 31, 2017. Time deposits were at Rs 445,678 crore, an increase of 33.2%
over the previous year, resulting in CASA deposits comprising 43.5% of total
deposits as on March 31, 2018.
Total advances as of March 31, 2018 were Rs 658,333 crore, an increase of

18.7% over March 31, 2017. This loan growth was contributed by both segments of
the Bank’s loan portfolio with the loan mix between retail: wholesale at 57:43. As per
regulatory [Basel 2] segment classification, retail loans grew by 27.4% and wholesale
loans grew by 9.4%.

CONSOLIDATED FINACIAL RESULTS

The consolidated net profit for the year ended March 31, 2018 was Rs
18,510.0 crore, up 21.4%, over the year ended March 31, 2017. Consolidated
advances grew by 19.6% from Rs 585,481 crore as on March 31, 2017 to Rs 700,
034 crore as on March 31, 2018.
Note:
1 crore = 10 million
All figures and ratios are in accordance with Indian GAAP.

1. Constitution of Firm
Table 3.1Constitution of Firm
CONSTITUTION OF FIRM COUNT IN NUMBERS
Partnership 24
Private Ltd 13
Proprietor 163
Grand Total 200
Analysis:
CONSTITUTION OF FIRM
180
160
NUMBER OF BUSINESS
140
120
100
80
Total
60
40
20
0
Partnership Private Ltd Proprietor
CONSTITUTION OF FIRM
Fig. 3.2 Constitution of Firm
Constitution of firm
Frequency Percent Valid Percent Cumulative
Percent
Proprietor 163 82.5 82.5 82.5
Private Ltd 13 7.5 7.5 90.0
Valid
Partnership 24 10.0 10.0 100.0
Total 200 100.0 100.0
Interpretation: It can be concluded from the above table that 82.5% of the
proprietors had opinion that EDC facility was convenient for business and the
customers, 7.5% private Ltd firms feels that EDC facility was convenient for
customer, 10% of respondents feels that it was convenient for Business.

2. Merchants held with current banker
Table 3.2 Merchants held with current banker

VARIOUS ASSORTMENTS Nature of Business
Andhra Bank 3
Axis Bank 29
Bandhan Bank 1
Canara Bank 16
Corporation Bank 2
Equitas finance Bank 3
HDFC Bank 45
ICICI Bank 23
IDBI Bank 1
Indian Bank 8
Karnataka Bank 6
KarurVysya Bank 1
Kotak Mahindra 2
State Bank of India 35
Syndicate Bank 8
UCO Bank 1
United Bank of India 2
Vijaya Bank 2
YES Bank 5
Grand Total 200

Analysis:
MERCHANTS CURRENT BANKING

WITH RESPECTIVE BANKS
COUNT IN NUMBER 35
30
25
20
15
10
5
0
State Bank of…

Equitas finance…
United Bank of…

Axis Bank
Karnataka Bank
Syndicate Bank
YES Bank
Vijaya Bank
Andhra Bank
ICICI Bank
IDBI Bank
UCO Bank
Corporation Bank
Canara Bank
HDFC Bank
Karur Vysya Bank

Bandhan Bank
Indian Bank
Kotak mahindra
Total
CATEGORIES OF BANK
Fig. 3.3 Categories of Bank
Current Banker
Frequency Percent Valid Cumulative
Percent Percent
HDFC Bank 30 18.8 18.8 18.8
Axis Bank 29 18.1 18.1 36.9
YES Bank 5 3.1 3.1 40.0
IDBI Bank 1 .6 .6 40.6
UBI 2 1.3 1.3 41.9
ICICI Bank 17 10.6 10.6 52.5
Kotak 2 1.3 1.3 53.8
Mahindra
Valid SBI 28 17.5 17.5 71.3
Canara Bank 11 6.9 6.9 78.1
Bandhan Bank 1 .6 .6 78.8
Equitas 1 .6 .6 79.4
Finance Bank
Corporation 8 5.0 5.0 84.4
Bank
Syndicate 4 2.5 2.5 86.9
Bank

Karnataka 8 5.0 5.0 91.9

Bank
Vijaya Bank 6 3.8 3.8 95.6
Andhra Bank 2 1.3 1.3 96.9
KarurVysya 3 1.9 1.9 98.8
Bank
UCO Bank 1 .6 .6 99.4
Induslnd Bank 1 .6 .6 100.0
Total 200 100.0 100.0
Interpretation: The above table shows that, in terms of merchants held with current
banker HDFC bank got first rank among EDC service providing banks, AXIS bank got
second rank, SBI got third rank respectively.

3. Facilities enjoyed with current banker
Table 3.3 Facilities enjoyed with current banker

MERCHANT MERCHANT MERCHANT MERCHANT
NATURE OF
HELD WITH HELD WITH HELD WITH HELD WITH
BUSINESS
SB PRODUCT CA PRODUCT ME PRODUCT OD PRODUCT
Bicycle Shop 1
Ceramic
1
Engineering
Educational
1
segment
Electronic
product 3 6 19 1
services
Foods and
1 7 16
Beverages
Footwear 3
Furniture store 1
Garments 3 4 23
General Store 4 14
Hardware and
Building 4 11 14
materials
Healthcare 1 5 2
Hotel and
3
Restaurant
Interior Faber
2 2
Products

Jewelry store 1 5
Liquor Store 1 2
Localized
7 6
segment
Pharmacy 4
Photography
2 4 3
Store
Realtors
2 1
&Builders
Stationary 3
Super market 3
Tours &
1
Travels
Grand Total 14 56 126 2
Analysis:
25
FACILITIES AVAILED WITH BANK
20
15
10
5 Count of SB
0 Count of CA
Electronic product…
Hardware and Building…

Footwear
Jewellary
Photography store
General Store
Furniture Store
Bicycle services
Ceramic Engineering
Garments
Hotel and Restaurant

Interior faber Products
Realtors & Builders
Tours & Travels

Super Market
Educational segment
Foods and Beverages
Liquor store
Localized segment
Healthcare
Pharmacy
Stationary
Count of ME
Count of OD
NATURE OF BUSINESS
Fig. 3.4 Facilities enjoyed with current banker

SB product held with merchant
Percent
NO 146 91.3 91.3 91.3
Valid YES 54 8.8 8.8 100.0
Total 200 100.0 100.0
CA product held with merchant
Percent
NO 102 63.8 63.8 63.8
Valid YES 92 36.3 36.3 100.0
Total 200 100.0 100.0
ME product held with merchant
Frequency Percent Valid Percent Cumulative Percent
NO 65 15.6 15.6 15.6
Valid YES 135 84.4 84.4 100.0
Total 200 100.0 100.0

OD product held with merchant

Percent
NO 158 98.8 98.8 98.8
Valid YES 42 1.3 1.3 100.0
Total 200 100.0 100.0
Interpretation: The above four table shows that, in terms of facilities enjoyed with
current banker, 91.3%Savings Account product held by merchants, 63.8% Current
Account product held by merchants, 15.6% Merchant Establishment product held
with merchant and 98.8% OD product held with merchant.

4. Merchants Annual turnover
Table 3.4 Merchants Annual turnover

Nature of Business Sum of Annual Turnover (In Lakhs)
Bicycle shop 132
Ceramic Engineering 48
Educational segment 50
Electronic Product services 2168.6
Foods and Beverages 1328
Footwear 182
Furniture store 200
Garments 1286
General store 1182
Hardware and Building materials 1417
Healthcare 240
Hotel and Restaurant 184
Interior Faber Products 230
Jewelry store 604
Liquor store 470
Localized segment 578
Photography store 280
Realtors and builders 170
Stationary 97
Super market 760
Tours & Travels 40
Grand Total 11646.6

Analysis:
2500
SUM OF ANNUAL TURNOVER (IN LAKHS)

2000
1500
1000
500
0
Electronic product…
Hardware and Building…

Total
Healthcare
Footwear
Jewellary
Photography store
General Store
Ceramic Engineering
Furniture Store
Hotel and Restaurant

Interior faber Products
Garments
Realtors & Builders
Tours & Travels

Super Market
Bicycle shop
Educational segment
Foods and Beverages
Liquor store
Localized segment
Stationary
NATURE OF BUSINESS
Fig. 3.5 Merchants Annual turnover
Interpretation: The above table shows that, in terms of merchant’s annual turnover,
Electronic and product services has the maximum annual turnover around 2168.6
INR. It shows maximum number of merchants prefer EDC machine in terms of
Electronic product services.

5. Merchants held with parallel banker
Table 3.5 Merchants held with parallel banker

Different Assortments Count of number of business
Andhra Bank 2
Axis Bank 23
Bandhan Bank 1
Canara Bank 12
Corporation Bank 5
Equitas finance bank 1
HDFC Bank 51
ICICI Bank 22
IDBI Bank 1
Indian Bank 9
Induslnd Bank 1
Karnataka bank 6
Karurvysya Bank 1
Kotak Mahindra 1
Lakshmi vilas Bank 1
LIC Housing Finance 1
State Bank of India 37
SVS Bank 1
Syndicate Bank 7
United Bank of India 2
Vijaya Bank 2
YES Bank 3
Kotak Bank 1
Grand Total 200

Analysis:
MERCHANTS PARALLEL BANKING

WITH RESPECTIVE BANKS
NUMBER OF BUSINESS 60
50
40
30
20
10
0
Lakshmi Vilas…
State Bank of…

Equitas finance…
United Bank of…

LIC Housing…
Axis Bank
Karnataka Bank
Kotak Bank
Syndicate Bank
YES Bank
Indusland Bank
Vijaya Bank
Andhra Bank
ICICI Bank
IDBI Bank
Kotak mahindra
Corporation Bank
SVC Bank
Canara Bank
CITI Bank
HDFC Bank
Karur Vysya Bank

Bandhan Bank
Indian Bank
Total
CATEGORIES OF BANK
Fig. 3.6Merchants held with parallel banker
ParallelBankers
Frequency Percent Valid Cumulative
Percent Percent
HDFC Bank 31 19.4 19.4 19.4
Axis Bank 23 14.4 14.4 33.8
YES Bank 3 1.9 1.9 35.6
IDBI Bank 1 .6 .6 36.3
UBI 3 1.9 1.9 38.1
ICICI Bank 21 13.1 13.1 51.3
Kotakmahindra 2 1.3 1.3 52.5
Valid SBI 28 17.5 17.5 70.0
Canara Bank 12 7.5 7.5 77.5
Bandhan Bank 1 .6 .6 78.1
Equitas 1 .6 .6 78.8
finance Bank
Indian Bank 10 6.3 6.3 85.0
Corporation 5 3.1 3.1 88.1
Bank

Syndicate 7 4.4 4.4 92.5

Bank
Karnataka 6 3.8 3.8 96.3
Bank
Vijaya Bank 2 1.3 1.3 97.5
Andhra Bank 2 1.3 1.3 98.8
KarurVysya 1 .6 .6 99.4
Bank
UCO Bank 1 .6 .6 100.0
Total 200 100.0 100.0
Interpretation:The above table shows that, in terms of merchants held with parallel
banker, the highest number of merchants preferred as banker is HDFC Bank around
19.4%. And then SBI. It shows merchants getting good services from parallel banker.

6. Charges of Credit Card on EDC Machine
Table 3.6 Charges of Credit Card on EDC Machine

Not Grand
0.75% 1% 1.25% 1.5% 1.75% 2% 2.5%
mentioned Total
Count of
Nature
1 2 3 1 6 3 1 143 200
of
Business
Analysis:
160
140
COUNT OF NATURE OF BUSINESS
120 0.0075
0.01
100
0.0125
80
0.014
60 0.0175
40 0.02
20
Not mentioned
0
Total
CHARGES OF CC ON EDC MACHINE
Fig. 3.7 Charges of Credit Card on EDC Machine
Interpretation: The above graph shows that 140 merchants are not interested to
reveal the EDC machine charges, 17% is charged between 1.75%-2% and only 10%
are charges more than 2%

7. Merchants relationship with HDFC Bank
Table 3.7 Merchants relationship with HDFC Bank

Close ended type Question Count of Nature of Business
N 137
Y 63
Grand Total 200
Analysis:
Total
160
140
120
100
80
60 Total
40
20
0
N Y
MERCHANTS HAVING RELATIONSHIP WITH HDFC BANK
Fig. 3.8 Merchants relationship with HDFC Bank
HDFC Relationship
Percent
NO 137 76.3 76.3 76.3
Valid YES 63 23.8 23.8 100.0
Total 200 100.0 100.0
Interpretation: The above table shows that, in terms of relationship with HDFC only
23.8% are aware of HDFC products and services and 76.3% are not aware of the
HDFC products.

8. Merchants Positive response towards HDFC Bank
Table 3.8 Merchants Positive response towards HDFC Bank

Close ended type question Count of Nature of Business
NO 149
YES 51
Grand Total 200
Analysis:
MERCHANTS POSITIVE RESPONSE

AFTER SURVEY
160
140
120
100
80
60 Total
40
20
0
NO YES
RESPONSE
Fig. 3.9 Merchants Positive response towards HDFC Bank
Positive Response
Percent
NO 149 81.9 81.9 81.9
Valid YES 51 18.1 18.1 100.0
Total 200 100.0 100.0
Interpretation: After survey, 18.1% merchant shown positive response towards

HDFC products and services. But still 81.9% are not aware of HDFC products.

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 24.394a 20 .226
Likelihood Ratio 23.492 20 .265
Linear-by-Linear Association 3.585 1 .058
N of Valid Cases 200
a. 35 cells (83.3%) have expected count less than 5. The minimum expected count
is .16.
Symmetric Measures
Value Asymp. Std. Approx. Approx.
Errora Tb Sig.
Interval by -.150 .088 -1.909 .058c
Pearson's R
Interval
Ordinal by Spearman -.118 .078 -1.493 .137c
Ordinal Correlation
N of Valid Cases 200
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

CHAPTER 4 – FINDINGS, SUGGESTIONS AND

CONCLUSION
4.1 Findings
 82.5% of the merchants are constituted with proprietor firm with their present
EDC terminal provider.
 15% merchants are held with current banker as HDFC and 9.05% merchants
are held with current banker as Axis bank. Hence HDFC bank got first rank
among EDC service providing banks, AXIS bank got second rank, SBI got
third rank respectively.
 91.3% Savings Account product held by merchants, 63.8% Current Account

product held by merchants, 15.6% Merchant Establishment product held with
merchant and 98.8% Overdraft product held with merchant in terms of
facilities enjoyed with current banker.
 15.5% merchants are held with parallel banker as HDFC bank and 14%
merchants are held with parallel banker as State bank of India.
 23.8% merchants have relationship with HDFC Bank.
 18.1% merchant shown positive response towards HDFC products and

services and 81.9% merchants are held with other banks.
 75% of the sample opinioned that EDC machines were convenient for both
customers and business.
 HDFC’s personal banker sales person had approached 96% of respondents

for an EDC terminal.
 As explained about the facilities and charges of EDC machine, 60% of the
sample said that they would switch to a HDFC terminal.

 57% of the respondents said that they would go in for a HDFC terminal easier
documentation.
 Most opinioned those merchant services promptly attended to their

complaints (Very Fast 28%, Fast 70%, Slow 2%, Very Slow 0%).
 18% of the respondents said that they would go in for a HDFC terminal if
more value added services were provided.

4.2 Suggestions
The market for EDC terminals is highly competitive with many large
established players. Promoting the sales of EDC terminals and penetrating the
markets in such competitive situations is a challenging task. 75% of the respondents
said that they are satisfied with their present EDC terminal providers, this makes the
promotion and penetration of HDFC EDC terminals into the market even more
difficult.
The findings however reveal a few important points, which would help
promote the HDFC terminals. The suggestions are as follows.
1. Provide more value added services as 65% of the respondents said that
they would go in for a HDFC terminal if more value added services were
provided.
2. As per customer response, HDFC should provide minimal price as
compare to competitor’s price. 60% sample are interested to start banking
with HDFC.
3. As per customer’s convenient, HDFC should keep its documentation
procedure simple.
4. HDFC should resolve its customer’s complaints and issues raised in walk
in or via mail at earliest or within stipulated time.
5. As 96% of the respondents said that a HDFC sales person had earlier
visited them for a EDC terminal connection, HDFC must take into
consideration the findings and suggestions of this project and develop
new promotion strategy before approaching the potential customers.
6. As per customer feedback, HDFC is trying to improve its service and also
trying to acquire more number of merchant acquisition.

4.3 Conclusion
Merchant service sector has become extremely complex. Today’s customers

demand more and more facilities from their bank. Most merchants were aware about
the facilities provided by the bank. In this era of cutthroat competition, banks have to
focus on customer care and in attracting new customers.
This project helps in studying the EDC service providers in Bangalore market
and determining customer’s willingness to change to HDFC. The project also aimed
at ascertaining the competition level in the EDC machine segment.
To conclude HDFC enjoys the most number of customers in this category

followed by Axis Bank, State Bank of India and ICICI behind the queue.
Finally we conclude by determining the most of the merchant anticipated

greater returns from the bank in the form of higher discount, greater benefit and
better service.

4.4 Implications
This study gives relevant information to the company to adopt the best
promotional strategy, to know about the players in market and their marketing
strategy. It helps the company to know more about the present status of market and
how to target the audience, how to promote sales, how to fix the rates charging to
satisfy customers. This study is helpful for the company to know the nook-n-corner of
market. It gives information about needs and wants of the customers, reasons for
their acceptance, and desired rate charging.

BIBLIOGRAPHY
[1] Business Standard

[2] Economic Times
[3] www.Hdfcbank.com
[4] www.equitymaster.com
[5] https://www.hdfcbank.com/aboutus/basel_disclosures/default.htm
[6] https://www.hdfcbank.com/aboutus/cg/Financial_Information.htm

ANNEXURE
CUSTOMER PROFILING
Data:_____________
Branch Name:______________________
1. Name of the Firm - ………………………………………………………

2. Address -
…………………………………………………………………………………………
…………………………………………………………..........
3. Contact Numbers -…………………………………………………………
4. Constitution of firm-………………………………………………………
5. Contact Person -…………………………………………………………..
6. Nature of business & years in business – (mention segment)
……………………………………………………………………………..
7. Turnover (approx)………………………………………………………….
8. Current Banker - …………………………………………………………..
9. Facilities enjoyed with current banker –
(ME/OD/CC/TOD)……………………………………………………………………
………………………………………………………………..
10. Parallel Bankers- ………………………………………………………….
11. Any specific requirements /Remarks –
12. HDFC relationship – SB/CA/Credit Card/Loan/ME/Investment

Products/FD/RD………………………………………………………………………
………………………………………………………………
* Please attach visiting card.


Cip Report (HDFC Bank)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cip Report (HDFC Bank)

Uploaded by

Copyright:

Available Formats

INDUS BUSINESS ACADEMY

Lakshmipura, Thataguni Post,

“To understand the B2B user segment of HDFC merchant

A Project Report for the partial fulfilment of the requirement for

Under the Guidance

Property of IBA, all rights reserved

This is to certify that Mr N Akhaya Kumar Dora (FPB1719/027) student of

He has submitted his Corporate Internship Report entitled “To Understand

(Dr. Subhash Sharma)

This is to certify that Mr N Akhaya Kumar Dora (FPB1719/027) is a bona fide

He has submitted his Corporate Internship Project report entitled “To

I, Mr N Akhaya Kumar Dora am a bona fide student of Indus Business

(N Akhaya Kumar Dora)

It is really a matter of pleasure for me to get an opportunity to thank all the

(N Akhaya Kumar Dora)

Indus Business Academy Page | i

CHAPTER 1 - INDUSTRY PROFILE......................................................................... 1

Indus Business Academy Page | ii

CHAPTER – 2 PROBLEM DEFINITION AND KEY RESULT AREAS .................... 66

CHAPTER – 3 ANALYSIS AND INTERPRETATION .............................................. 69

CHAPTER 4 – FINDINGS, SUGGESTIONS AND CONCLUSION .......................... 94

ANNEXURE ....................................................................................................... 100

Indus Business Academy Page | iii

Table 3.1 Constitution of Firm .................................................................................. 77

Indus Business Academy Page | iv

Indus Business Academy Page | v

The growth of the banking industry is imperative for the economic

Finally, recommendations have been given in order to promote sales of EDC

Indus Business Academy Page | vi

CHAPTER 1 - INDUSTRY PROFILE

1.1 Porter’s Five Forces Model

Indus Business Academy Page | 1

1.2 Industry Analysis of HDFC Bank

FIVE FORCE HIGH/MEDIUM/LOW REMARK

Indus Business Academy Page | 2

1.3 Company Profile

The Housing Development Finance Corporation Limited (HDFC) was

HDFC Bank comprises of a dynamic and enthusiastic team determined to

HDFC is India’s premier housing financial company and enjoys an

Indus Business Academy Page | 3

Banking system occupies an important place in a nation’s economy. A

Accepting deposits- subject to withdrawal or transfer by check- and making

A simple form of banking was practiced by the ancient temples of Egypt,

Indus Business Academy Page | 4

INDIAN BANKING SYSTEM

Companies Act, 1949 (which was subsequently renamed as banking

DEVELOPMENT OF MODERN BANKING:

Indus Business Academy Page | 5

GOVERNMENT AND RBI REGULATIONS:

purpose of lending of deposits of money from the public repayable on demand or

The so-called forex (foreign exchange) business is largely a part of remittance

Banking segment in India functions under the umbrella of Reserve Bank of

Indus Business Academy Page | 7

Up to late sixties commercial banks were mainly engaged in financing

Progress of Commercial Banking in India

 Warburg Pincus has a significant holding in HDFC (its promoter having

HDFC Bank’s mission is to be a “World-Class Indian Bank”. The Bank’s aim is

 HDFC is India's premier housing finance company and enjoys an impeccable

Indus Business Academy Page | 9

1.3.5 Business Philosophy

1.3.7 Wholesale Banking

1.3.8 Retail Banking

Indus Business Academy Page | 10