EXECUTION AND ANALYSIS OF WORKING CAPITAL AS A PRODUCT OF HDFC BANK

SUBMITED TO:

SUBMITED BY:

ACKNOWLEDGEMENT
A blend of gratitude and great satisfaction is what we feel to convey our indebtedness to all those who have contribute to the successful completion of our project work. We feel greatly privileged to ----------------- for all his support and guidance through out the making of the project without which this piece would not have been possible at all. We are equall grateful to the staff of -------------------------------------- for their devoted assistance and cooperation. Their keen interest in our endeavors gave us extra energy to perform to the best of our abilities. We are also thankful to the customers who spared their precious time for carrying out the interviews and providing relevant information.

TABLE OF CONTENTS A BRIEF ABOUT BANKING INDUSTRY MAJOR PLAYERS IN BANKING SECTOR IN LUCKNOW PROFILE OF HDFC BANK WORKING CAPITAL WORKING CAPITAL FACILITIES PROVIDED BY HDFC BANK

Curren !""#un C!$% Cre&' L'(' O)er&r!* Le er #* Cre&' L#!n A+!'n$ Pr#,er L#!n A+!'n$ Se"ur' 'e$.G#/&

MARKET SCENARIO CATOGERISATION OF CUSTOMERS IN MARKET AND THERE MAJOR RE0UIREMENTS FOCUS AREAS FOR TAPPING THE MARKET RESEARCH METHODOLOGY 0UESTIONS INTERVIEWED RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY

A BRIEF ABOUT BANKING INDUSTRY

Today the ndian banking system is among the best in the world and the years to come may see them taking on the global behemoths. The ndian !anking ndustry can be categori"ed into non-scheduled banks and scheduled banks. #cheduled banks constitute of commercial banks and co-operative banks. There are about $%&''' branches of #cheduled banks spread across ndia. (uring the first phase of financial reforms& there was a nationali"ation of )* major banks in )+$+. This crucial step led to a shift from ,lass banking to -ass banking. #ince then the growth of the banking industry in ndia has been a continuous process. As far as the present scenario is concerned the banking industry in ndia is in a transition phase. The .ublic #ector !anks /.#!s0& which are the foundation of the ndian !anking system account for more than %1 per cent of total banking industry assets. 2nfortunately they are burdened with excessive 3on .erforming assets /3.As0& massive manpower and lack of modern technology. 4n the other hand the .rivate #ector !anks are witnessing immense progress. They are leaders in nternet banking& mobile banking& phone banking& AT-s. 4n the other hand the .ublic #ector !anks are still facing the problem of unhappy employees. There has been a decrease of 5' percent in the employee strength of the private sector in the wake of the 6oluntary 7etirement #chemes /67#0. As far as foreign banks are concerned they are likely to succeed in ndia.

ndusland !ank was the first private bank to be set up in ndia. 8(9, !ank ltd& (! & 3: 6yasa !ank& #! ,ommercial and nternational !ank ;td& (hanalakshmi !ank ;td& <arur 6ysya !ank ;td& !ank of 7ajasthan ;td etc are some .rivate #ector !anks. !anks from the .ublic #ector include .unjab 3ational bank& 6ijaya !ank& 2,4 !ank& 4riental !ank& Allahabad !ank& Andhra !ank& etc.

MAJOR PLAYERS IN BANKING SECTOR IN LUCKNOW

T#, Per*#r('n+ Pu1/'" Se" #r B!n2$3 #tate !ank of ndia. Allahabad !ank. 6ijaya !ank. ndian overseas !ank. .unjab 3ational !ank. !ank of ndia. Andhra !ank.

T#, Per*#r('n+ Pr')! e Se" #r B!n2$ 2T !ank (! !ank , , !ank 8(9, !ank <otak -ahindra !ank

PROFILE OF HDFC BANK

8(9, !ank was incorporated in August )++* in the name of =8(9, !ank ;imited=& with its registered office in -umbai& ndia. The !ank commenced operations as a #cheduled ,ommercial !ank in >anuary )++?. The 8ousing (evelopment 9inance ,orporation ;imited /8(9,0 was amongst the first to receive an =in principle= approval from the 7eserve !ank of ndia /7! 0 to set up a bank in the private sector& as part of the 7! =s liberali"ation of the ndian !anking ndustry in )++*. 8eadquartered in -umbai& 8(9, !ank& has a network of over ?@) branches spread over 551 cities across ndia. All branches are linked on an online real-time basis. ,ustomers in over )5' locations are serviced through Telephone !anking. The !ank also has a network of about over )'?*-networked AT-s across these cities. 8(9, !ank=s AT- network can be accessed by all domestic and international 6isa A -aster,ard& 6isa Blectron A -aestro& .lus A ,irrus and American Bxpress ,redit A ,harge cardholders. 8(9, !ank has won many awards for its excellent service. -ajor among them are C!est !ank in ndiaC by 8ong <ong-based 9inance Asia maga"ine in 5''? and C,ompany of the DearC Award for ,orporate Bxcellence 5''*-'?. 8(9, !ank is ndia s large housing finance company& with particular speciali"ation in the provision of mortgages nationwide. ts loan portfolio covers over a million dwelling units. t has developed expertise in retail mortgage loans to different market segments& and also has a large corporate client base for its housing related credit facilities.

The company operates through more than )%' branches in nearly 1' cities across ndia. All the branches are linked on a real time online basis. ,ustomers in about 5@ of the branches can be serviced through the company s telephone banking facilities. The bank also has a network of nearly ?''-networked AT-s across these cities. 8(9, !ank conducts its operations through three core business segments& which include: 4%#/e$!/e 1!n2'n+5 re !'/ 1!n2'n+5 !n& re!$ur-. ts wholesale banking business segment targets large& blue chip manufacturing companies in the ndian corporate sector. The business segment provides a wide range of banking services including working capital finance& trade services& transactional services and cash management /Working ,apital #ervices0. The objective of the retail bank business segment is to provide a full range of financial products and services. t offers AT-s& telephone banking& nternet banking and mobile banking facilities. -eanwhile& its third business segment& treasury& provides foreign exchange& local currency money market and debt securities& and equities.

WORKING CAPITAL
,ash is the lifeline of a company. f this lifeline deteriorates& so does the company=s ability to fund operations& reinvest and meet capital requirements and payments. 2nderstanding a company=s cash flow health is essential to making investment decisions. A good way to judge a company=s cash flow prospects is to look at its working capital management /W,-0. Working capital refers to the cash a business requires for day-to-day operations& or& more specifically& for financing the conversion of raw materials into finished goods& which the company sells for payment. Among the most important items of working capital are levels of inventory& accounts receivable& and accounts payable. Analysts look at these items for signs of a company=s efficiency and financial strength. Take a simplistic caseE a magi sauce company uses ?'''' to build up its inventory of tomatoes& onions& garlic& spices& etc. A week later& the company assembles the ingredients into sauce and ships it out. A week after the checks arrives from customers. That ?''''& which have been tied up for two weeks& is the company=s working capital. The quicker the company sells the magi sauce& the quicker the company can go out and buy new ingredients& which will be made into more sauce sold at a profit. f the ingredients sit in inventory for a month& company cash stays tied-up and can=t be used to grow the magi business. Bven worse& the company can be left strapped for cash when it needs to pay its bills and make investments. Working capital also gets trapped when customers do not pay their invoices on time or suppliers get paid too quickly or not fast enough. The better a company manages its working capital& the less the company needs to borrow. Bven companies with cash surpluses need to manage working capital to ensure that those surpluses are invested in ways that will generate suitable returns for investors.

#ome companies are inherently better placed than others. nsurance companies& for instance& receive premium payments up front before having to make any paymentsF however& insurance companies do have unpredictable outgoings as claims come in. 3ormally a big retailer like Wal--art has little to worry about when it comes to accounts receivableE customers pay for goods on the spot. nventories represent the biggest problem for retailers& who must perform rigorous inventory forecasting or they risk being out of business in a short time. Timing and lumpiness of payments can pose serious troubles. -anufacturing companies& for example& incur substantial up-front costs for materials and labor before receiving payment. -uch of the time they eat more cash than they generate.

WORKING CAPITAL FACILITIES PROVIDED BY HDFC BANK

The basic requirement for a firm to acquire working capital services given by banks is to open a current account at the chosen bank. The general working capital facilities provided by banks are ,ash ,redit ;imit& ;etter of credit& different types of ;oans& !ank :uaranties& etc. Working capital facilities offered by 8(9, !ank are as followsE ,ash ,redit ;imit ;etter of credit !ank :uaranties ;oan against .roperty 4ver (raft ;oan against :old ;oan against #ecurities

These are generally provided to add a cushion for firmGs working capital. We will be dealing this one by one in detailE

CURRENT ACCOUNT
A ,urrent account is ideal for carrying out day-to-day business transactions. There are three types of current account in 8(9,. These are as followsE 7egular /AH!E )''''0 .remium /AH!E 5?'''0 Trade /AH!E *''''0 .lus /AH!E )'''''0

These are so divide so as to suit different profile of firms. t depends according to the facilities required by the same.

7egular AAc
With the 8(9, !ank 7egular ,urrent Account& you can access your account anytime& anywhere. Withdraw and deposit cash& issue and encash cheques& make balance-inquiries or ask for mini statements& and even request for cheque books any time& anywhere. With a vast network of branches in cities all over the country& and access to a multitude of AT-=s& you can keep track of all your transactions anytime.

Pre('u( A."
!usiness needs a partner who can manage your finances while you concentrate on growing your business. Dou can avail benefits of inter-city banking account with .remium ,urrent Account& that requires an average quarterly balance of only 7s. 5?&''' per quarter-offers .ayable-At.ar cheque book facility I 97BB inter-city finds transfer across our network upto 7s.)' ;acs per month. A ,urrent Account with the benefits of accessing account from a large network of branches& and through direct access channels - the phone& mobile& nternet and through the AT-.

Trade AAc
n today=s changing busines requirements& you need to transfer funds across cities& and time is of the essence. 8(9, !ank Trade ,urrent Account gives you the power of intercity banking with a single account. 9rom special cheques that get treated at par with local ones in any city where we have a branch& to free collection of outstation cheques /payable at branch locations0& to free inter-city funds transfers of up to 5? lakhs& our priority services have become the benchmark for banking efficiency.

P/u$ A."
n today=s fast-paced world& your business regularly requires you to receive and send funds to various cities in the country. 8(9, !ank .lus ,urrent Account gives you the power of inter-city banking with a single account and access to more than @)$ cities. 9rom special cheques that get treated at par with local ones in any city where we have a branch& to free collection of outstation cheques /payable at branch locations0& to free inter-city funds transfers of up to )'' lakhs& our priority services have become the benchmark for banking efficiency.

C!$% Cre&' L'('

This account is the primary method in which !anks lend money against the security of commodities and debt. t runs like a current account except that the money that can be withdrawn from this account is not restricted to the amount deposited in the account. nstead& the account holder is permitted to withdraw a certain sum called ClimitC or Ccredit facilityC in excess of the amount deposited in the account. ,ash ,redits are& in theory& payable on demand. These are& therefore& counter part of demand deposits of the !ank.

O)er&r!*
The word overdraft means the act of overdrawing from a !ank account. n other words& the account holder withdraws more money from a !ank Account than has been deposited in it. The above two looks a bit similar but the difference is very subtle and relates to the operation of the account. n the case of ,ash ,redit& a proper limit is sanctioned which normally is a certain percentage of the value of the commoditiesAdebts pledged by the account holder with the !ank. 4verdraft& on the other hand& is allowed against a host of other securities including financial instruments like shares& units of mutual funds& surrender value of ; , policy and debentures etc. #ome overdrafts are even granted against the perceived CworthC of an individual. #uch overdrafts are called clean overdrafts.

Le er #* Cre&'
A letter of credit is a document issued mostly by a financial institution which provides an irrevocable payment undertaking to a beneficiary against complying documents as stated in the credit. ;etter of ,redit is abbreviated as an ;, or ;A,& and often is referred to as a documentary credit& abbreviated as (, or (A,& documentary letter of credit& or simply as credit. 4nce the beneficiary or a presenting bank acting on its behalf& makes a presentation to the issuing bank or confirming bank& if any& within the expiry date of the ;,& comprising documents complying with the terms and conditions of the ;,& the applicable 2,. and international standard banking practice& the issuing bank or confirming bank& if any& is obliged to honour irrespective of any instructions from the applicant to the contrary. n other words& the obligation to honour /usually payment0 is shifted from the applicant to the issuing bank or confirming bank& if any. 3on-banks can also issue letters of credit however parties must balance potential risks. The ;, can also be the source of payment for a transaction& meaning that an exporter will get paid by redeeming the letter of credit. ;etters of credit are used nowadays primarily in international trade transactions of significant value& for deals between a supplier in one country and a wholesale customer in another. They are also used in the land development process to ensure that approved public facilities /streets& sidewalks& stormwater ponds& etc.0 will be built. The parties to a letter of credit are usually a beneficiary who is to receive the money& the issuing bank of whom the applicant is a client& and the advising bank of whom the beneficiary is a client. #ince nowadays almost all letters of credit are irrevocable& /i.e. cannot be amended or cancelled without prior agreement of the beneficiary& the issuing bank and the confirming bank& if any0. 8owever& the applicant is not a party to the letter of credit. n executing a transaction& letters of credit incorporate functions common to giros and Traveler=s cheques. Typically& the documents a beneficiary has to present in order to avail himself of the credit& are commercial invoice& bill of lading& insurance documents. 8owever& the list and form of documents is open to

imagination and negotiation and might contain requirements to present documents issued by a neutral third party evidencing the quality of the goods shipped.

T%e Pr#"e$$ #* Le er #* Cre&'

STEP-6

After a contract is concluded between buyer and seller& buyer=s bank supplies a letter of credit to seller.

STEP-7

#eller consigns the goods to a carrier in exchange for a bill of lading.

STEP-8

#eller provides bill of lading to bank in exchange for payment. #eller=s bank exchanges bill of lading for payment from buyer=s bank. !uyer=s bank exchanges bill of lading for payment from buyer.

STEP-9

!uyer provides bill of lading to carrier and takes delivery of goods.

A bank guarantee and a letter of credit are similar in many ways but they=re two different things. The main difference between the two credit security instruments is the position of the bank relative to the buyer and seller of a good& service or basket of goods or services in the event of the buyer=s default of payment. These financial instruments are often used in trade financing when suppliers& or vendors& are purchasing and selling goods to and from overseas customers with whom they don=t have established business relationships. A bank guarantee is a guarantee made by a bank on behalf of a customer /usually an established corporate customer0 should it fail to deliver the payment& essentially making the bank a co-signer for one of its customer=s purchases. #hould the bank accept that its customer has sufficient funds or credit to authori"e the guarantee& it will approve it. A guarantee is a written contract stating that in the event of the borrower being unable or unwilling to pay the debt with a merchant& the bank will act as a guarantor and pay its client=s debt to the merchant. The initial claim is still settled primarily against the bank=s client& and not the bank itself. #hould the client default& and then the bank agrees in the bank guarantee to pay for its client=s debts. This is a type of contingent guarantee. A bank guarantee is more risky for the merchant and less risky for the bank. !ut this is not the case with a letter of credit. While a letter of credit is a similar& the principal difference is that it is a potential claim against the bank& rather than a bank=s client. 9or example& a seller may request that a buyer be provided with a letter of credit& which must be obtained from a bank and which substitutes the bank=s credit for that of its client. n the event that the borrower defaults& the seller would go the buyer=s bank for the payment. The seller=s risk is mitigated because it is unlikely that the bank will be unable to pay the debt. A letter of credit is less risky for the merchant& but more risky for a bank. !anks accept full liability in both cases. With a bank guarantee& a client can default and the bank assumes the liability. With a line of credit& liability rests solely with the bank& which then collects the money from its client.

L#!n A+!'n$ Pr#,er 8(9, !ank brings to you ;oan Against .roperty :;A.;. Dou can now take a loan against your residential or commercial property& to expand your business& plans a dream-wedding& fund your child=s education and much more. Dou can depend on us to meet all your business requirements even to purchase a new shop or office for your business. ;oan to purchase ,ommercial .roperty :;,.; is a specially designed product to help you expand your business without reducing the capital from your business.

9eatures I !enefits ). ;oans from 7s. 5 ;acs onwards depending on your needs. 5. !orrow up to $'J of market value of the property. @. 9lexibility to choose between an B- based loan or an 4verdraft - We also offer to you overdraft against your self-occupied residential or commercial property and you save money by paying interest only on the amount utili"edK *. 8igh tenure loans for ease of repayment. ?. Attractive interest rates. $. #imple and speedy processing.

E/'+'1'/' - !n& D#"u(en $ F#r S!/!r'e& In&')'&u!/$

.roof of 7esidence - Any one of 7ation ,ard A Telephone !ill A Blectricity !ill A 6oters ,ard. .roof of dentity - Any one of 6oters ,ard A (rivers ;icense A Bmployers ,ard. ;atest !ank #tatement A .assbook /where salary A income is credited for past $ months0. ;atest @ -onths #alary #lip with all deductions I last 5 years 9orm )$. ,opies of all .roperty (ocuments.

F#r Se/* E(,/#-e&

,ertified 9inancial #tatement for the last 5 years. .roof of 7esidence - Any one of 7ation ,ard A Telephone !ill A Blectricity !ill A 6oters ,ard. .roof of dentity - Any one of 6oters ,ard A (rivers ;icense A Bmployers ,ard. ;atest !ank #tatement A .assbook /where salary A income is credited for past $ months0. ,opies of all .roperty (ocuments

L#!n A+!'n$ Se"ur' 'e$.G#/&

These two products /lasAlag0 of 8(9, !ank are very important especially for those individuals who are not able to use facilities such as ;A. and ,, as either they do not have their own land to mortgage or they donGt want their land to be mortgage. With 8(9, !ank=s ;oan against #ecurities& you can get an overdraft against your securities like Bquity #hares& -utual 9und 2nits& :4 7elief !onds& ; , .olicies& 3#,& <6.& 2T !onds /$.$'J A7# I 2#$* !onds0 and :old (eposit ,ertificates& while still retaining ownership. And the best part is that you can continue to enjoy all your shareholder benefits such as rights& dividends and bonuses. With 8(9, !ank=s :old ;oan& you can get an instant loan against your gold jewellery and ornaments. The procedure is simple& documentation is minimal and approval is quick.

MARKET SCENARIO
The area covered in ;ucknow for this project was from 3ishat :anj to ,hinhat includining :ole -arket& ndra 3agar& :omti 3agar as this area comes under 8(9, !ank ;ekhraj ndra 3agar !ranch.

Gom ti Gole Mkt Nagar Chinhat Nishat Ganj

Indra Nagar Bhoot Nath Mkt

Faizabad Road

-arket segments identified for prospective business within these areas are as listed belowE

3ishat :anj The major market segments that where identified in 3ishat :anj area areE 9urnitures& White goods& departmental #tore and :arments shops.

Others Garments

White Goods

Departme ntal Stores

Gole Market Gole Market area is the major hub of Jewelries and Restaurants.

Others e!elries Restra"nts

Faizabad Road This area has been identified as the bigger market area in comparison to other areas. The major market segments that where identified in Faizabad Road area are: Furnitures Marbles!Tiles!"and stones #hite Goods #holesalers $nterior %ecorators &aints and 'onstruction Material %istributers ('ement!"teel!)ardware!*ricks+.

Interior Others De%oraters &aints Wholesalers

White goods F"rnit"res

Constr"%tion Material

Marbels#$iles

B%## N! % !hoot 3ath area is the major hub of :arments and (epartmental #tore. t also includes few >ewelries #hop.

e!elries Garments Others Departmental Stores

In&r! N!+!r The major market segments that where identified in ndra 3agar area areE #chools and ,onstruction -aterial (istributers/,ementA#teelA8ardwareA!ricks0.

Others S%hools

Constr"%tion Material

C%'n%! n lucknow& ,hinhat has been identified among the prime areas for the industrial location. t mainly consists of ancillary vendors for TB;,4 and some other chemical and steel industries. This area further includes some of the renowned colleges of the city.

Others

Colleges

Ind"stries

G#( ' N!+!r

#egments identified in :omti 3agar area of #choolsA,olleges& 8ospitals& -ultiplexesA 7eal Bstates& :arment #hops& nternational Traders& ,onstruction -aterial (istributer /cementsAsteelsAhardwareAbricksAmarbleAtilesAsandstonesApaintsAetc.0.

Real (states#M"ltiple)es International $raders Garments 'ospitals

S%hools#Colleges

Distrib"ter Others

CATOGERISATION OF CUSTOMERS IN MARKET AND THERE MAJOR RE0UIREMENTS

SCAL E8 CC . LAP

SCALE 7 CC . LAP

SCALE 6 CC . LC . LAP . FD

After analy"ing the -arket #cenario we have categori"ed the customers in the market into three scales on the basis of their urn#)er$ !n& (!<#r re=u're(en $ of working capital. The three scales have been explained from the next page.

SCALE 6: #cale ) consists of the kinds of customers as follows ndustrialists mporters A Bxporters #choolA,ollege 4wners

ndustrialists usually have the requirement of ,ash ,redit ;imit or ;oan against .roperty as they require huge amount money for meeting their demands of working capital on regular basis .#o these two products are best suitable for them. While businessmen dealing in mport A Bxports require transactions in currencies across the world for which ;etter of ,redits and !ank :uarantees are their basic amenities which 8(9, !ank can provide in shorter span of time as compared to other banks. #choolsA,ollege owners are more interested in 9ix (eposits as they have large unused funds and they usually look out for banks which can provide them best rate of interests /E>!(,/e: #t. (omenices #chool& ndra 3agar was interested in getting 9ix (eposits done in large amounts when the proposal was kept in front of them.0 .

SCALE 7: #cale 5 consists of the kinds of customers as follows -arble Traders 4wners of 9urniture #hops 4wners of >ewelry #hops ,onstruction -aterial (istributors

All the kinds of customers in this scale require large amount of loans for working capital but not on regular basis. They require money only for maintaining the inventories in advance.

SCALE 8E #cale @ consists of the kinds of customers owning business ofE :arments (epartmental #tores Traders of ,onstruction -aterials

All the kinds of customers in this scale require small amount of loans for working capital but not on regular basis. They require money only for maintaining the inventories in advance.

FOCUS AREAS FOR TAPPING THE MARKET

C%'n%! :In&u$ r'!/ Are! O,,#$' e TELCO ; B%## n! % F!'?!1!& R#!& G#( ' N!+!r

C!$e:
t was early days of our training& when we were given a task to scan the potential of the industrial area situated at ,hinhat& (eva road. To our surprise the area was having immense potential& with almost every firm having turnovers in crores. The area mainly consists of venders of Telco& few industries of chemicals& packaging& electrical equipments and many more. The day dint started on a good note& but it was our fifth cold call when we entered the premises of Nu Sr'-!( H' e"%3 While interacting with the owner we get to know the following information. This firm was manufacturing ancillary units only for Telco and most of his transactions were in cheques with turnover around one crore. The problem& which the owner faced& was that sometimes the queue of his cheques becomes too long& this leads to scarcity of cash and hence he was not able to manage the working capital efficiently. The banking of 3u #riyam 8itech was from #tate !ank of ndia. The payment made by Telco in cheques used to take from two to three days for clearing& hence the cash is blocked for that period. This was our moment to hit and we got it clicked really well. We told how an account at 8(9, !ank can remove his present problem of cash blockage. The point made was that the main account of Telco is in 8(9, !ank& and if he opens an account in the same& the payment made by Telco previously in cheques will now be transferred directly to their

account through net banking. This will take time in minutes while previously it used to take days. 8e was so impressed with us that not only he asked us to do the formalities of shifting his current cc account from #tate !ank of ndia& but also to send a proposal for term loan which he will be needing in two months time. 8e also told us that he will transfer his personal account currently in , , !ank to ourGs & if he is satisfied with the services provided. t was a humbling experience for us& which gave us lot of confidence for future.

C!$e:
Another case was of A?!( A/' @ A/!( A/' Per*u(er$3 They are one of the leading perfume exporters in ndia& with their head office at ;ucknow. Their major requirements are of ;etter of ,redit and !ank :uarantees. The problem which they were facing was delay in the process of getting remittances cleared by !ank of !aroda& which took around one week& while 8(9, !ank takes *1 to %5 hours in doing the same. #o we kept this proposal in front of them and are expecting positive response from their side in future. 9rom these two experiences we learnt that first of all gather information from the customer about his current banking relations and then try to hit on the week points which he is facing from the same. The same kind of situations was arising with some of the other customers present in the market& specified above.

C%'n%!
This is one of the most prospective area for the bank to tap. There are massive industries with turnover in crores located in this area. 8(9, !ank has the biggest advantage for tapping this area as compared to other banks. This is so because around $'J of the industries located in this area are doing business with Telco& as they are manufacturing ancillary units for them. The main AAc of Telco is in 8(9, !ank& and here is where 8(9, has an advantage over other banks. Telco mainly pays them in cheques & hence the transaction time is greatly reduced for firms who are having AAc in 8(9, !ank. 8ence for firms dealing with Telco and also having AAc in 8(9,& the payment they get from Telco are directly transferred to there AAc. This saves a lot of time and helps them in managing working capital better. This area mainly comprises of #cale ) class industries. 8(9, !ank has started penetrating this area and has already captured a moderate portion. !ut still this area consists of prospective potential customers who are still there to be tapped. The major requirements of this area are that of ,ash ,redit limit and Term loans. ,ash ,redit limit is required for efficient working capital management& while Term loan are generally required by those firms who are planning for expansion in business.

B%## n! %
This area is the major shopping hub especially for people living in near by areaGs& which includes ndra 3agar& 7abindra .alli& ndra .uri and -unshiipullia. !hootnath mostly caters to #cale5 and #cale@ class of market. t includes >ewelries& (epartmental stores& :arments shops and restaurants. There is a huge potential for 8(9, in tapping this area. The biggest advantage& which will help 8(9, in capturing& is its proximity to the area& which is around 5?' meters away from 8(9, ndra 3agar branch. The major requirements of working capital in this area are managed by using services like ,ash ,redit ;imit and ;oan against .roperty. !oth these services are offered by 8(9, !ank& that to at a competitive rate of interest.

F!'?!1!& R#!&
This area has the most diversified market and is spread over a large area. !oth #cale5 and #cale @ class of market is present here. t includes shops of nterior (ecorators& 9urniture #anitary and -arble& Wholesalers and many more. The major working capital requirement of this area is that of cash credit. ,ash ,redit ;imit is generally required by them for stocking inventories. n cases& where a cash credit limit is not possible& customers can be convinced for taking an 4ver (raft facility against the .roperty& which is similar to cash credit. 4ne of the biggest advantage 8(9, !ank is having over others is it proximity to the area& as the ndra 3agar branch is itself situated at 9ai"abad road. !ut taping the market in this location is bit tough as mostly shopkeepers are maintaining the relationship with nationali"ed banks since last )? to 5' years/case related to this problem is on the next page0. !ut still there is a lot of potential in the market.

C!$e:
While doing the survey in the market on 9ai"abad road we came across a shop A4!&% H!r&4!re @ C#3 there we approached for ,, limit and kept the proposal of increasing the limit on compatible rate of interests. !ut they denied as they were maintaining a good relationships with .unjab 3ational !ank since last 5' years and were able to get more than the limit specified whenever required which is not possible in 8(9, and other .rivate !anks as everything is computeri"ed and transparent which is not seen in the 3ationali"ed !anks.

G#( ' N!+!r

:omti nagar is a huge area in itself. All three scales of market i.e. #cale)& #cale5& #cale@ are present here. The area includes collegesAschools& hospitals& real estate& multiplexes& garments shops and a good number of international traders /importers and exporters0. -ainly all the banks are having their branches at :omti 3agar except 8(9, !ankF this acts as a biggest disadvantage. As 8(9, !ank& ndra 3agar branch is not as near to this location as compared to other bank branches& itGs a bit hard to crack the customers in this location. The major requirements of this area are similar to other areaGs that is of lap& cash credit and letter of credit. ;etter of credit is an additional service required here because of the presence of international traders. nternational traders require the use of ;etter of ,redit and !ank :uaranties& as they have to both mport and Bxport commodities all over the world. The use of letter of credit is increasing at a rapid pace in ;ucknow as more and more business units are indulging themselves in import A export business with china due to large profit margins. 8(9, !ank has an advantage over other banks when it comes to providing letter of credit services to their customers. t is more time efficient and takes the least time in providing the service.

Another area within :omti 3agar is 6ibhuti <hand& which is a commercial area and also not very far from our branch. 8(9, !ank has already made some inroads in this area by capturing a few customers& but still lot of market is yet to be captured.

RESEARCH METHODOLOGY

Re$e!r"% De$'+n
t is the conceptual framework within which the research is to be conducted. The suitable design will be one that minimi"es the bias and maximi"es the reliability of data collected and analy"ed. 3ow we will have a brief look on the different aspects of the research plan and contact methods. The research design used in the project is (escriptive.

D! ! S#ur"e$
This research plan comprises of primary as well as secondary data sources. .rimary data are the data that were collected for a specific purpose or for a specific research project. The primary was collected through focus interviews. #econdary data are the data that were collected for another purpose and were already present& which were taken from the bank.

Me %#& #* C#//e" 'n+ Pr'(!r- &! ! 4!$:

9ocus nterviews

Me %#& #* C#//e" 'n+ Se"#n&!r- &! ! 4!$:

(ata provided by the !ank Websites of the !ank -aga"ines and 3ewspapers .romotional Activities

S!(,/'n+ De$'+n
The #ampling design for the study was based on convenience and easy accessibility. The businessmen were taken into consideration and were asked about the services they are availing for Working ,apital from their respective !anks.

S!(,/'n+ Un'
!usinessmen coming in the area of 8(9, !ank/;ekhraj !ranch& ndra 3agar0.

S!(,/'n+ S'?e
8ow many people should be interviewedL #o in this project the sample si"e is )''.

0UESTIONS INTERVIEWED
06; T-,e #* 1!n2:$; -#u !re %#/&'n+ A""#un $ *#r -#ur W#r2'n+ C!,' !/A 6; N! '#n!/'?e& Or 7; Pr')! e An!/-$'$ $?J of the people responded to 3ationali"ed !ank while @?J of people responded to .rivate !anks. 7eason behind having accounts in 3ationali"ed !ank was that these were established since past )? to 5' years and the customers have built up a healthy relationship with the same. While .rivate sectors banks have recently established there branches in market in last ? to % years. 07; W%! F!" #r$ 'n*/uen"e -#u 'n #,en'n+ !n A""#un *#r W#r2'n+ C!,' !/A An!/-$'$ All most all of the respondentGs first priority was Pr#>'(' - #* B!n2 Pre('$e$. While other factors which influenced wereE :ood customer services 3etwork of !ank !rand name .rocessing speed ,harges deducted 9ulfillments of commitments .hone !anking Advertisements Word of mouth

08; W%! A// Ser)'"e$ &# -#u A)!'/ *#r -#ur W#r2'n+ C!,' !/A An!/-$'$ -ostly the businessmen are availing the services of ,ash ,redit ;imit or 4ver (raft ;imit or ;oan against .roperty. While people having business mportABxport avail ;etter of ,redit and !ank :uaranties.

09; H#4 (!n- '(e$ &# -#u re=u're L#!n L'(' $ *r#( 1!n2 *#r -#ur 4#r2'n+ "!,' !/A An!/-$'$ 7eal Bstates !usinessmen and ndustrialists usually have the requirement of ,ash ,redit ;imit on regular basis while -arble Traders& 4wners of >ewelry #hops& ,onstruction -aterial (istributors& 4wners of 9urniture #hops& :arments& (epartmental #tores& Traders of ,onstruction -aterials require large amount of loans for working capital but not on regular basis. They require money only for maintaining the inventories in advance. 0B0 D# -#u $ee !n- &'**eren"e$ 'n %e 2'n& "#((' (en (!&e 1e 4een ,re !n& ,#$ #,en'n+ #* !""#un A An!/-$'$ $'J of the respondents were in the favor of the question while *'J were not in favor. 0C; W%! ,r#1/e($ %!)e -#u *!"e& 'n -#ur r!n$!" '#n$A An!/-$'$ -ostly customers responded to problems regarding C%!r+e$ De&u" e& in the transactions of which they are not aware. While other problems which came into picture were De/!- 'n %e $er)'"e$5 De/!- 'n u,&! 'n+ account balance in 3ationali"ed !anks. 0D; W#u/& -#u e)er /'2e # "%!n+e -#ur 1!n2A I* -e$ %en #n 4%! 1!$'$ !re -#u W'//'n+ #r 4#u/& -#u /'2e # $4' "% #)erA An!/-$'$ %'J of respondents said that they were not willing to switch over as they are maintaining their relationship with banks since last )' to 5' years. !ut among these there were some people who said that they might switch over in future if any major drawback occurs. 7ests of the respondents were in favor of switching over on the basis of ;esser 7ate of nterests and ncrease in ,ash ,redit ;imit.

0E; W%! '$ -#ur #,'n'#n !1#u 4#r2'n+ "!,' !/ $er)'"e$ ,r#)'&e& 1- HDFC B!n2A An!/-$'$ Re$,#n&en $ %!)'n+ !""#un $ 'n HDFC 1!n2 %'J of people are satisfied with the present services they are availing. 7ests of them are satisfied but they are facing few problems of delay in the services /BxampleE statements not received& ,harges (educted& ;ack of commitments0. Re$,#n&en $ n# %!)'n+ !""#un $ 'n HDFC 1!n2 #ome people have opinion that .rivate sector banks deducts many hidden charges which do not happen in 3ationali"ed banks so there is same problem in 8(9, bank too. !ut they were also in the favor that 8(9, bank provides faster services than other banks.

RECOMMENDATIONS
S r#n+ nee& #* Br!n& Bu'/&'n+ As 8(9, ;ekhraj !ranch is @ years old the bank needs to make a lot of marketing efforts. Whenever the branch comes into existence it is necessary that they announce their birth. t should try to pull customers towards the bank. 9or this lot of promotional activities should be performed which the bank is already performing by putting up !anners and .osters. 9urther the bank can also do some awareness activities such as conducting ,ompetitions in near by 7esidential Apartments& organi"ing -edical ,amps in ,onventional .arks or in >oggers .arks& etceteras. S#/'& ne 4#r2 re=u're& # &e)e/#, %e 1u$'ne$$ *ur %er3 f we see the results of the survey& it is evident that people prefer strong networking system to make their banking life as comfortable and reachable as possible. 9or example as the :omti 3agar is one of the prime locations of the city from !usiness point of view. #o setting up a unit of 8(9, in the same location can be a good opportunity for capturing the untapped market. Nee& # *#"u$ (#re #n %e 0u!/' - %!n #n %e 0u!n ' - #* S!/e$ F#r"e3 The present sales force of the branch is not up to standard. -ore over the sales force is not able to represent the true picture of the services they are selling to the customers which in future leads to dissatisfaction among the customers and spreads a negative word of mouth. The false commitments made by sales force are unethical. #o well trained sales force should be kept and regular inspections should be made for avoiding such mischief.

CONCLUSION
With years of banking experience& 8(9, !ank is undoubtedly in a strong position to help growing businesses sail through the complexities they may face. 8(9, !ank has always been market oriented and dynamic with respect to resource mobili"ation as well as lending program. This renders it more capable to meet the new challenges that have emerged. 4ver the years& 8(9, !ank has developed a vast client base of borrowers& depositors& shareholders and it hopes to capitali"e on this loyal and satisfied client base for future growth. nternal system have been developed to be robust and agile& to take into account changes in the volatile external environment. Working with the right bank can help oneGs business sail more smoothly and 8(9, !ank helps in doing that as it understands todayGs business requirements.

BIBLIOGRAPHY

% ,:..4443B%!r! B##2Bure!u3"#( % ,:..4443W'2',e&'!3"#( % ,:..4443H&*"1!n23"#( % ,:..4443In)e$ #,e&'!3"#( % ,:..4443G##+/e3"#( HDFC Pr#&u" M!nu!/ Br#"%ure$ An& M!nu!/$ #* HDFC B!n2