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Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER 1

INTRODUCTION . ..3-11

1.1

General Introduction ..3

1.2

Industry Profile 3
a. Origin and Development of the industry4
b. Growth and Present Status of the industry...6
c. Future of the industry ..9

CHAPTER 2

PROFILE OF THE ORGANISATION..12-29

2.1

Origin of the Organization .. 13

2.2

Growth and Development of the Organization 14

2.3

Present Status of the Organization

17

2.4

Functional Departments of the Organization ...

19

2.5

Organization Structure and Organization Chart ..22

2.6

Product and Service Profile of the Organization Competitors .. 24

2.7

Market Profile of the Organization 28

CHAPTER 3

DISCUSSIONS ON TRAINING - 30-33

3.1

Student's Work Profile (Roles and Responsibilities) . 31

3.2

Description of Live Experience 32

CHAPTER 4

STUDY OF SELECTED RESEARCH PROBLEM 34- 47

4.1

Statement of Research Problem.. 35

4.2

Statement of Research Objectives ........

.35

4.3

Research Design and Methodology

35

4.4

Analysis of Data .

4.5

Summary of Findings 46

CHAPTER 5

38

SUMMARY AND CONCLUSIONS . 48- 52

5.1

Summary of Learning Experience..

50

5.2

Conclusions and Recommendations . 50

APPENDIX .52
BIBLOGRAPHY.56

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER-1
INTRODUCTION

General Introduction:INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

The project was carried out for understanding the customer preference &
attributes towards saving Account of HDFC Bank

and its market

potential.HDFC Bank was established in the year 1994, they are old
player in banking sector, The bank has two principle client segments
customer and asset management. The bank follows values such as
Integrity, teamwork, respect, professionalism, & Mission. The segment of
bank we are considering here is- Corporate banking. The product out of
which have chosen for research is Saving Accounts. This research helps
us in finding out the customers view regarding the product and Services
offered by the HDFC bank and awareness by promotion and also
identifying the

market potential of the product offered by the HDFC

bank.

1.2 Industry Profile:a.) Origin and development of the industry:Banking in India originated in the first decade of 18th century. The first banks
were The General Bank of India, which started in 1786, and Bank of
Hindustan, both of which are now defunct. The oldest bank in existence in
India is the State Bank of India, which originated in the "The Bank of Bengal"
in Calcutta in June 1806. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras. The presidency
banks were established under charters from the British East India Company.
They merged in 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India. For many years the
Presidency banks acted as quasi-central banks, as did their successors. The

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

Reserve Bank of India formally took on the responsibility of regulating the


Indian banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.
A couple of decades later, foreign banks such as Credit Lyonnais started their
Calcutta operations in the 1850s. At that point of time, Calcutta was the most
active trading port, mainly due to the trade of the British Empire, and due to
which banking activity took roots there and prospered.

First of all we must note the fact that these institutions have changed very
much in character since their origin, and consequently nowadays perform
many functions unknown to those of former times. The first banks seem to
have arisen in connection with the business of exchanging money. In ancient
times and especially in the Middle Ages the varieties of coins were greater
even than at the present day, and they were much less perfectly and honestly
minted. Specialists were, therefore, required to determine their exact value
and equivalence and to exchange coins of one mintage for those of another,
and their BANK were in great demand at fairs and other places where
merchants of different nations met forpurposes of trade. Inasmuch as they
kept their boxes or chests of coins on benches or "banken," the name
bankers came to be applied to them. On account of their technical knowledge
and the fact that they were obliged constantly to keep on hand considerable
quantities of the precious metals, this business in the early Middle Ages was
usually carried on by goldsmiths, but later it was sometimes assumed by the
governments of large commercial cities, as, for example, by Amsterdam in

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Customer preference & attributes towards Saving Account of HDFC Bank

1609, by Hamburg in 1619, and by Nurnberg in 1621. Of these latter the Bank
of Amsterdam was the most important and may be regarded as typical of
these early institutions.
From the earliest times also, bankers have been the chief agents through
which foreign exchanges have been conducted. As dealers in coin and bullion
they had international connections and a knowledge of international affairs not
possessed by other merchants, and were, therefore, in a position to undertake
the settlement of international accounts by means of orders drawn on bankers
in other countries or other cities with whom they had regular business
transactions. As keepers of other people's money they also promoted saving,
and banks thus became in time the chief savings institutions of the country.

b. Growth and present status of the industry:Currently (2009), banking in India is generally fairly mature in terms of supply,
product range and reach-even though reach in rural India still remains a
challenge for the private sector and foreign banks. In terms of quality of
assets and capital adequacy, Indian banks are considered to have clean,
strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body,
with minimal pressure from the government. The stated policy of the Bank on
the Indian Rupee is to manage volatility but without any fixed exchange rateand this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some
time-especially in its services sector-the demand for banking services,

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

especially retail banking, mortgages and investment services are expected to


be strong. One may also expect M&As, takeovers, and asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to
increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.
This is the first time an investor has been allowed to hold more than 5% in a
private sector bank since the RBI announced norms in 2005 that any stake
exceeding 5% in the private sector banks would need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector
banks (that is with the Government of India holding a stake)after merger of
New Bank of India in Punjab National Bank in 1993, 29 private banks (these
do not have government stake; they may be publicly listed and traded on
stock exchanges) and 31 foreign banks. They have a combined network of
over 53,000 branches and 17,000 ATMs. According to a report by ICRA
Limited, a rating agency, the public sector banks hold over 75 percent of total
assets of the banking industry, with the private and foreign banks holding
18.2% and 6.5% respectively
Introduction of many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of
banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net

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Customer preference & attributes towards Saving Account of HDFC Bank

banking is introduced. The entire system became more convenient and swift.
Time is given more importance than money.
In 1995, the Brookings Institution published a paper entitled The
Transformation of the U.S. Banking Industry: What a Long, Strange Trip Its
Been. Using a breathtaking array of facts and figures, the paper described in
great detail the dramatic changes that had occurred in the U.S. commercial
banking industry over the 15 years from 1979 to 1994. The banking industry
was transformed during that period, according to the paper (p. 127), by the
massive reduction in the number of banking organizations; the significant
increase in the number of failures; the dramatic rise in off-balance sheet
activities; the major expansion in lending to U.S. corporations by foreign
banks; the widespread adoption of ATMs; . . . and the opening up of interstate
banking markets. The paper went on to explain that most of these major
changes in banking could be traced to two developments: (1) the
extraordinary number of major regulatory changes during the period, from
deposit deregulation in the early 1980s to the relaxation of branching
restrictions later in the decade; and (2) clearly identifiable innovations in
technology and applied finance, including improvements in information
processing and telecommunication technologies, the securitization and sale
of bank loans, and the development of derivatives markets. Other research
would later confirm the papers assessments and its explanation of the course
of events in the banking industry over the period 19791994.

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Customer preference & attributes towards Saving Account of HDFC Bank

Over the two decades 19842003, the struct


ure of the U.S. banking industry indeed underwent an almost unprecedented
transformationone marked by a substantial decline in the number of
commercial banks and savings institutions and by a growing concentration of
industry assets among a few dozen extremely large financial institutions. This
is not news. As mentioned above, the decline in the number of banking
organizations has been ongoing for more than two decades and has been
well documented in the literature. 3 Nevertheless, a brief overview will serve to
clarify both the scope of the decline and the increasing concentration of
assets among the nations largest banking organizations

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Customer preference & attributes towards Saving Account of HDFC Bank

At year-end 1984, there were 15,084 banking and thrift organizations (defined
as commercial bank and thrift holding companies, independent banks, and
independent thrifts). By year-end 2003, that number had fallen to 7,842a
decline of almost 48 percent (figure 1). Distributed by size, nearly all the
decline occurred in the community bank sector (organizations with less than
$1 billion in assets in 2002 dollars), and especially among the smallest size
group (less than $100 million in assets in 2002 dollars). Yet the community
banking sector still accounts for 94 percent of banking organizations

c. Future of the industry:The burden of reporting and other regulatory requirements will fall heavily and
disproportionately on small banks unless remedial action is taken. Further
advances in information technology will permit the development of new
products, BANK, and risk-management techniques but may also pose

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Customer preference & attributes towards Saving Account of HDFC Bank

important competitive and supervisory issues. Nonbank entities will continue


to
offer bank-like products in competition with banks, raising anew the question
of whether banks are still special and, more fundamentally ,whether banks
are sufficiently different from nonblank firms to justify the maintenance of a
safety
net for banks. It is useful, therefore, to try to chart the course of the banking
industry in the next five to ten years and to consider what policy issues the
industry and regulators will face. The authors of this study do not pretend to
be clairvoyant. They are mindful of the many financial predictions that were
once offered with confidence but turned out to be wrong or premature. This
study is perhaps best described as an exercise in strategic thinking. Its
approach is to analyze what has happened in the recent past, consider in
detail reasons for expecting recent trends to continue or to change, and draw
the consequences for bank and regulatory policies. As always, uncertainties
abound, and
events that may now appear fairly improbable may in fact shape the future.
This paper closeswith a discussion of a number of such possible events. The
future-of-banking study addresses three broad questions:

1. What changes in the environment facing banking can be expected in the


next five to ten years?

2. What are the prospects for different sectors of the banking industry in this
anticipated environment? Because the banking industry is not monolithic and

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Customer preference & attributes towards Saving Account of HDFC Bank

different segments of the industry have, to some degree, different


opportunities and vulnerabilities, the study considers separately the prospects
for large, complex banking organizations; regional and other midsize banks;
community banks; and limited-purpose banks.

3. What policy issues are the industry and regulators likely to face in the years
ahead? Separate consideration is given to

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Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER-2
PROFILE OF THE
ORGANISATION

2.1 Origin of the Organization:-

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Customer preference & attributes towards Saving Account of HDFC Bank

Housing Development Finance Corporation Limited, more popularly known as


HDFC Bank Ltd, was established in the year 1994,
as a part of the liberalization of the Indian Banking Industry by
Reserve Bank of India (RBI). It was one of the first banks to receive an 'in
principle' approval from RBI,
for setting up a bank in the private sector. The bank was incorporated with the
name 'HDFC Bank Limited', with its registered office in Mumbai. The following
year, it started its operations as a Scheduled Commercial Bank.
HDFC Bank Limited. The Group's principal activities are to provide banking
and other financial BANK. The Group operates through four segments:
Treasury, Retail Banking, Wholesale Banking and Other Banking Business.
The Treasury BANK segment consists of net interest earnings on investments
portfolio of the bank and gains or losses on investment operations. The Retail
Banking segment serves retail customers through a branch network and other
delivery channels. This segment raises deposits from customers and makes
loans and provides advisory BANK to customers. The Wholesale Banking
segment provides loans and transaction BANK to corporate and institutional
customers. The Other Banking Operations segment provides BANK relating
to credit cards, debit cards, third party product distribution and primary
dealership business and other associated costs. The Bank was Incorporated on
30th August 1994. A new private sector Bank promoted by housing Development Corporation
Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive

an in-principle approval from the RBI for establishment of a bank in the


private sector. Certificate of Commencement of Business wasreceived on

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Customer preference & attributes towards Saving Account of HDFC Bank

10th October 1994 from RBI. The Bank transacts both traditional commercial
banking as well as investment banking. HDFC, the promoter of the bank has
entered into an
agreement with National Westminister Bank Pc. and its subsidiaries (Nat
west Group) for subscribing 20% of the banks issued capital and providing
technical assistance in relation to the banks proposed banking business.

2.2 Growth and Development of the Organization:1994.

On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pte.


Ltd. Another 400,00,000 equity shares were allotted on private placement
basis to Natwest Group on 9.5.1995. 500,00,000 shares were allotted to the
public on 9.5.95 The Bank opened its first branch in Ramon House at
Churchgate, Mumbai on January 16th.
The Bank has created an efficient operating system using well tested state-ofthe-art software.
1995
70 No. of equity shares issued to subscribers to the Memorandum &Articles of
Association on 30th August 1994.

On the same date 500,00,000 equity

shares were allotted to HDFC promoters. 509,20,000 shares were allotted to


HDFC Employees Welfare Trust and HDFC Bank Employees Welfare Trust on
22nd December,
1996

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Customer preference & attributes towards Saving Account of HDFC Bank

HDFC Bank has entered the banking consortia of over 50 corporates,


including some leading multinational companies, flagship companies of local
business houses and strong public sector companies.

HDFC Bank has set up a state-of-the-art dealing room to handle all


transactions possible in Indian financial markets.
The Certificates of Deposits were awarded a PP1+ rating which is the highest
rating for short term instruments indicating superior capacity for repayment.

2001

- The Bank has opened its first branch in Aurangabad. HDFC Standard Life
Insurance has entered into a memorandum of understanding with the
Chennai-based Indian Bank. The Bank has launched the international
Maestro debit card inassociation with Master Card. HDFC Bank will launch its
credit card in June through link-ups with MasterCard and Visa.LTtrade.com
has entered into a strategic tie-up with HDFC Bank to provide Net banking
BANK to online investors. Standard Chartered Bank, HDFC Bank and Bharat
Petroleum Corporation have joined the eCash Forum which has been set up
by the Smart Card Forum of India. HDFC Bank has launched a new campaign
for its eage savings account. HDFC Bank entered into a strategic tie-up with
Tally Solutions Pvt. Ltd. to offer online real time accounting BANK to small and
Medium enterprises.The Bank has opened four ATMs outlets in Bangalore at
Coles Road, RT Nagar, Rajaji Nagar and Jaya Nagar on March 26. HDFC
Standard Life Insurance has launched a `Development Insurance Plan' a low

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Customer preference & attributes towards Saving Account of HDFC Bank

cost life insurance product developed specifically to meet the needs of


economically weaker sections. Two Directors, Mr. S.S. Thakur and Mr. Amit
Judge, have resigned from the board of the bank effective from March 30.
HDFC Bank files with US regulators to list more than 11 million American
Depositary Shares on the New York Stock Exchange.
Today HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in
India, and all branches of the bank are linked on an online real-time
basis. [2] As of September 30, 2008 the bank had total assets of INR 1006.82
billion.[3] For the fiscal year 2008-09, the bank has reported net profit of
Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of
the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

2.3 Present Status of the Organization:-

March 2007

March 2008

March 2009

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Customer preference & attributes towards Saving Account of HDFC Bank

Citied

228

316

452

Branches

535

684

1412

ATMs

1323

1605

3275

Housing Development Finance Corporation Limited, more popularly known as


HDFC Bank Ltd, was established in the year 1994, as a part of the
liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It
was one of the first banks to receive an 'in principle' approval from RBI, for
setting up a bank in the private sector. The bank was incorporated with the
name 'HDFC Bank Limited', with its registered office in Mumbai. The following
year, it started its operations as a Scheduled Commercial Bank. Today, the
bank boasts of as many as 1412 branches and over 3275 ATMs across
India. Amalgamation
In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private
sector bank promoted by Bennett, Coleman & Co. / Times Group). With this,
HDFC and Times became the first two private banks in the New Generation
Private Sector Banks to have gone through a merger. In 2008, RBI approved
the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this,
the Deposits of the merged entity became Rs. 1,22,000 crore, while the
Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000
crore.
Head Office
HDFC Bank
Ramon House, 169, Backbay Reclamation,

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Customer preference & attributes towards Saving Account of HDFC Bank

H T Parekh Marg, Churchgate


Mumbai - 400020
Phone: +91 (22) 66316000, 66636000, 66316060
Fax: +91 (22) 22048834
Website: www.hdfc.com

Tech-Savvy

HDFC Bank has always prided itself on a highly automated environment, be it


in terms of information technology or communication systems. All the braches
of the bank boast of online connectivity with the other, ensuring speedy funds
transfer for the clients. At the same time, the bank's branch network and
Automated Teller Machines (ATMs) allow multi-branch access to retail clients.
The bank makes use of its up-to-date technology, along with market position
and expertise, to create a competitive advantage and build market share.

Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore
(Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In
terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional
Investors (FIIs) have around 28% of the equity and about 17.6% is held by the
ADS Depository (in respect of the bank's American Depository Shares (ADS)
Issue). The bank has about 570,000 shareholders. Its shares find a listing on
the Stock Exchange, Mumbai and National Stock Exchange, while its

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Customer preference & attributes towards Saving Account of HDFC Bank

American Depository Shares are listed on the New York Stock Exchange
(NYSE), under the symbol 'HDB'

2.4 Functional Departments of the Organisation:The functional departments of the organization consists of the HR
department, the administrative department and the executive department. The
HR department of the organization consists of the people who employ the
Persons who they think would be able to do justice with the job handled.The
administrative department of the organization consists of the director and the
manager of the organization. They preside the organization and control all the
operations of the organization such that the organization could run in a
smooth and effective manner.The executive department of the organization
consists of the various employees Who execute the job undertaken by them.
The employees consists of the team leaders, the Corporate financial
consultants,. the telecallers, various staffs and junior staffs who are the main
structural framework of the organization. The organization thus runs with the
effective coordination of the HR department, the administrative department
and the executive department such that the supervisors of the organization
preside over the subordinate employees to give them directions about fulfilling
their works most efficiently and effectively. Technical Consultancy Department:
The Technical Consultancy Department is responsible for technical appraisal
of industrial projects. The mission of the division is aimed towards the
verification of the technical viability of industrial projects and assisting the
Funds management in taking the decisions that require technical expertise.

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

Moreover, it is responsible for conducting technical studies and rendering


technical consultancy BANK to certain industrial sectors for the purposes of
investigating

modern

technologies

and

productivity

levels

for

local

manufacturing plants.

H R Department:
HDFC Human Resources department plans and direct for the employee
population as well as they are having the following functions as:

Hiring
Promotions
Reassignments
Position classification and grading
Salary determination
Performance appraisal review and processing
Personnel data entry and records maintenance
Policy development
Work permitting immigration visa program
Workers compensation

Finance Department:
The Finance Manager is responsible for all aspects of the accounting and
financial administration of the HDFC, the supervision of the implementation of
the HDFC financial policies, directives and procedures and the initiation of the
financial plans within the guidelines of

HDFC The department contains

several distinct sections, each of which is responsible for a proportion of the


activities taking place within the finance department.

Marketing Consultancy Department:

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Customer preference & attributes towards Saving Account of HDFC Bank

The Marketing Consultancy Department plays and important role within the
Fund as it studies and analyzes marketing information in order to build solid
base for management decisions. The division also assists projects sponsors
in formulating solid marketing strategies to improve their industries and
strengthen their position in the local and international markets.

Research Department:
The Research Department is having the capacity to act through four
composing units i.e., the market research unit, economic studies unit, and
statistical studies unit. It is the mission of the division to provide support BANK
for information and consultancy to the senior management and division in the
areas of economic, statistical and marketing information and consultancy
through data analysis, processing of economic and statistical data, market
research studies and publishing related periodical reports.

2.5 Organization Structure and Organization Chart:The organization structure of the company HDFC is such that it comprises of
the departments and the employees in the hierarchical order so that they are
able to perform their functions and duties smoothly and effectively doing their
job in a manner in which it should be done. The organization is headed by the
administrative department which coordinates and controls the executive
department. The executive department is a link from the top and the bottom
comprising of the lower level employees such that they work together to fulfill
the common objective of getting business from the persons who get in touch

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with them and see to it that they are provided with the best of the BANK which
constitute giving financial advise to providing Account to the customers. The
lower level employees and the corporate financial consultants work together
to see to it that the database for providing financial BANK to sufficient number
of people is made .They work together to see to it that this database is
followed and worked upon such that more and more number of people get
themselves avail the financial BANK of the organization. Team leaders who
form the part of the administrative department of the Organization make sure
that the clients that turn up for the financial BANK are dealt with most
efficiently and effectively.

The organizational structure is well planned out and it follows a simple format
which is follows:
Organization Chart:-

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Customer preference & attributes towards Saving Account of HDFC Bank

Each team lead has a team comprising only of both senior as well as junior
market research analyst who aid the team lead in the entire market research
process as it has been discussed previously. This is the basic organizational
structure followed by HDFC BANK.

2.6 Product and service profile of the organization:HDFC Bank offers a bunch of products and services to meet the every need
of the people. The company cares for both, individuals as well as corporate

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Customer preference & attributes towards Saving Account of HDFC Bank

and small and medium enterprises. For individuals, the company has a range
accounts, investment, and pension scheme, different types of loans and cards
that assist the customers. The customers can choose the suitable one from a
range of products which will suit their life-stage and needs. For organizations
the company has a host of customized solutions that range from Funded
services, Non-funded services, Value addition services, Mutual fund etc.
These affordable plans apart from providing long term value to the employees
help in enhancing
Goodwill of the company. The products of the company are categorized into
various sections which are as follows:

Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards

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Customer preference & attributes towards Saving Account of HDFC Bank

Prepaid Cards
Investments & Insurance
Forex Services
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
NRI Banking
Rupee Savings Accounts
Rupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
Quick remit (North America, UK, Europe, Southeast Asia)
India Link (Middle East, Africa)
Coequal Lock Box

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In todays world many companies have emerged who have taken a serious
note on the importance of market research and he advantages of using it for
the better growth and development of the company. Hence, our competitors
are those companys who are in the market research and development field
as well as the consultancies, since they also make use of market research
and business developers.
The products and BANK of our competitors are as follows:
A.

Customer Satisfaction Analysis:

Customer analysis involves gathering data about the customers and their
characteristics. They also conduct tailored customer satisfaction surveys to
gauze customer satisfaction.
B.

Risk

These BANK are used by the competitors in order to gather external


information and research the possible effect on the competitiveness of
company.
C.

Product Research BANK:

The conduction of extensive product research by this service helps the


competitors to find out the marketability of a product or service. The research
can be utilized to leverage the major decisions of a company on the marketing
of its products.
D. Advertising Research BANK:

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Advertising research strives to gain valuable information about the effects and
reach of advertising the products in different forms of media.

Given below are the steps we follow for every assignment we


take up:
1. The timetable for the search is indicated and the search process
commences.
2. Target companies are examined, using any prior information provided by
business development executives in conjunction with sources of information
and prospective companies already known to us, augmented with original
study by our search team.
3. We maintain a regular channel of communication with the client to keep
them apprised of the results emerging.

2.7 Market profile of the organization:HDFC Bank Limited provides various financial products and services. It
operates in three segments: Retail Banking, Wholesale Banking, and
Treasury. The Retail Banking segment provides various deposit products,

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Customer preference & attributes towards Saving Account of HDFC Bank

including savings accounts, current accounts, fixed deposits, and demat


accounts. It also offers auto, personal, commercial vehicle, home, gold, and
educational loans; loans against securities, property, and rental receivables;
and health care finance working capital finance, construction equipment
finance, and warehouse receipt loans, as well as credit cards, debit cards,
depository, investment advisory, bill payments, and transactional services. In
addition, this segment sells third party financial products, such as mutual
funds and insurance, as well as distributes life and general insurance
products through its tie-ups with insurance companies and mutual fund
houses. The wholesale banking segment provides loans, non-fund facilities,
and transaction services to large corporate, emerging corporate, small and
medium enterprise, supply chain, public sector undertaking, central and state
government departments, and institutional customers. It offers deposit and
transaction banking products, supply chain financing, working capital and term
finance, agricultural loans, and funded, non-funded treasury, and foreign
exchange products. These segments services include trade services, cash
management, money market, custodial, tax collection, and electronic banking.
In addition, it provides correspondent bank services to co-operative banks,
private banks, foreign banks, and regional rural banks; and wealth
management products for non-resident Indians. The Treasury Services
segment operates primarily in areas, such as foreign exchange, money
market, interest rate trading, and equities. As of March 31, 2009, HDFC Bank
had a network of 1,412 branches and 3,295 automated teller machines in 528
cities in India. The company was founded in 1994 and is based in Mumbai,
India.

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Customer preference & attributes towards Saving Account of HDFC Bank

In todays growing world everyone needs to diversify their business so as to


keep in touch with the rapid development. By analyzing the growing concerns
of the market, HDFC has clients varying from investment banking sector,
retail, web designing companies, etc. Due to this rapid development HDFC
Group has many teams working for the above mentioned sectors.
HDFC Bank began operations in 1995 with a simple mission: to be a "Worldclass Indian Bank". We realised that only a single-minded focus on product
quality and service excellence would help us get there. Today, we are proud to
say that we are well on our way towards that goal.

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Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER-3
DISCUSSIONS
ON
TRAINING

3.1 Students work profile


Role and Responsibilities:-

The work profile of the student or the roles and responsibilities that are being
handled by the student on his internship programmed at HDFC BANK.

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Customer preference & attributes towards Saving Account of HDFC Bank

The first day and during the first week of the internship programmed the new
employee of the HDFC BANK was welcomed by giving an induction
programme in order to make him understand his role and responsibilities
during his stay in the organization.
Being appointed as a Financial Corporate Consultant at HDFC BANK during
the internship programme my duty or the role is to meet 5 clients, collecting
financial health check, analyzing and giving them financial planning how their
net asset value will be increase and how they fulfill their short-term and longterm financial goal so that it can be assessed that which ACCOUNT they need
suiting their financial obligations.
Leads and databases created by the students have to be used by them in
order to convince people of different age groups to take account according to
their needs and suitability.

The student calls people according to the leads and database created
by him and convinces people to take the account.

During the absence of the recovery executives/collection executives, it will


be my duty and responsibility to meet the customers against payments apart
from my regular job profile and reporting the same to my team leader at
HDFC BANK.

To explain the customers how a particular account would help them to


make their lives more secure providing security to them.

I use all the financial knowledge that has been given by the
company and I has as a MBA student and a student of Mar. so

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Customer preference & attributes towards Saving Account of HDFC Bank

that the customer realizes that he definitely needs to take a


particular account.

Must educate the clients about risks and various possible scenarios so
that the clients dont harbor unrealistic expectations.

3.2 Description of live experience:The office of HDFC BANK is blessed by brilliant and skilled professionals and
team leader who have the responsibility of handling the Financial Corporate
Consultants. The team leader provides the particular days plan of action and
then guide show to go about for executing the plan of action successfully .Till
the time a Financial Corporate Consultant is in the office he receives the
valuable suggestions and insights of the team leader. This prepares him for
the days Work and provides him the necessary directions to achieve not only
the target of the day but the target of the month. In the office the Financial
Corporate

consultant

make

calls

continuously

to

fix

the

follow-up

appointments so that on the basis of the financial health check collected by


him and also getting the follow-up appointments from the telesales she goes
in the field for making up the appointments. The financial corporate
consultants provide the persons met the basics of why he should take a
particular ACCOUNT to provide to him.

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Customer preference & attributes towards Saving Account of HDFC Bank

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER-4
STUDY OF
SELECTED
RESEARCH
PROBLEM

4.1 Statement of research problem:PROBLEM DEFINATION:

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Customer preference & attributes towards Saving Account of HDFC Bank

Sales Executives were with good background human being and through
rigorous process of recruitment but still not able to perform up to the
expectation level of company, HR is not able to sort out the problem why the
performance is not coming even after giving the full marketing support. The
communication technique and dealing with the customers is also a problem to
the sales
executives.

4-2 OBJECTIVES OF RESEARCH PROJECT:

RESEARCH OBJECTIVES:

To
find out the customer preferences while opening Savings A/c.
To
study brand image of the bank.
To
increase the business of the bank.

4.3 Research Design and Methodology

Primary data source: All the people from different profession were personally
visited and Interviewed. They were the main source of Primary data. The
method of collection of primary data was direct personal interview through a
structured questionnaire.
Secondary Data Source: It was collected from internal sources. The
secondary data was collected on the basis of organizational file, official

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Customer preference & attributes towards Saving Account of HDFC Bank

records, news papers, magazines, management books, preserved information


in the companys database and website of the company.

SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take
sample from the universe to know about its characteristics.
Sampling Units: Customers
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.
SAMPLE SIZE:
My sample size for this project was 100 respondents. Since it was not
possible to cover the whole universe in the available time period, it was
necessary for me to take a sample size of 100 respondents.

RESEARCH LIMITATIONS:
It was not possible to understand thoroughly about the different marketing
aspects of the Financial Consultant within 60 days. As stipend, money was
not given it was difficult to continue the project work. All the work was limited
in some limited areas of Bangalore so the findings should not be generalized.
The area of research was Bangalore and it was too vast an area to cover
within 60 days.

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of
the whole group during my job training. I have collected data from people
linked with different profession at Bangalore.

4.4 Data Analysis

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Customer preference & attributes towards Saving Account of HDFC Bank

Q 1:What is your Monthly Transaction in your account ?

Monthly transactions

No. of respondents

% (percentage)

5-20 lakhs

28

28%

20-40 lakhs

59

59%

40 lakhs and above

13

13%

Total

100

100%

Chart 1:
70%
60%
50%
05L- 20L

40%

20L - 40L
40L - Above

30%
20%
10%
0%
05L- 20L

20L - 40L

40L - Above

Analysis:

59% respondents gave their answer in 20-40 lakhs transactions.

28% respondents gave their answer in 0-20 lakhs transactions.

13% respondents gave their answer in 40 lakhs and above


transactions.

Question 2

Do you have a Saving Account?

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Customer preference & attributes towards Saving Account of HDFC Bank

Response
Yes
No

No. of respondents
97
3

%
97%
3%

Chart 2:

Analysis: 97% respondents have the saving accounts and only 3% do not
have saving account.

Question 3
In Which Bank?
Bank
Kotak mahindra

No. of respondents
3

%
3%

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

HDFC
Co-operative
ICICI
Nationalized

33
48
5
31

33%
48%
5%
31%

Chart 3

Analysis: 48% have saving account in co-operative, 3% in kotak mahindra,


33% in HDFC, 5% in ICICI, and 31% in nationalized bank .
Question 4

Which Factors do you consider for opening a Savings Account?

Accessibility
Minimum balance
DD/pay order
Free cheque
Debit card
Cash deposit
Cheque pick up
Net banking
Mobile banking
At per cheque
NEFT

No. of respondents
10
20
13
10
8
7
2
16
7
3
2

%
10
20
13
10
8
7
2
16
7
3
2

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Customer preference & attributes towards Saving Account of HDFC Bank

RTGS
Total

2
100

2
100

Chart 4

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Customer preference & attributes towards Saving Account of HDFC Bank

Analysis:
Respondents gave their answer
10% respondents gave their answer in accessibility, 20% Minimum balance,
13 % DD/pay order,10% Free cheque, 8% Debit card, 7% Cash deposit, 2%
Cheque pick up, 16% Net banking, 7% Mobile banking, 3% At per cheque, 2%
NEFT, 2% RTGS.
Question 5

Which mode of transaction do you avail of frequently?


Response
Pay order

No. of response
12

%
12

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Customer preference & attributes towards Saving Account of HDFC Bank

DD
Cheque
Total

22
76
100

22
76
100

Chart 5

Analysis:
12% Response in pay order, 32% like DD, and 76 % costumer want from
cheque mode.

Question 6
Which types of transaction do you make ?
Response

No. of respondents

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

Intercity

33

33

Outside city

15

15

Both

52

52

Total

100

100

Chart 6

Inter city, 33%


Both, 52%
, 15%

City

Outsid
e

Analysis:
33% account holder transaction intercity, 52 % Both, and 15% outside city.

Question 7
Does your bank assist you in case of any problem?
Response

No. of respondents

Yes

90

90

No

10

10

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Customer preference & attributes towards Saving Account of HDFC Bank

Total

100

100

Chart 7

Analysis:
90% say yes bank will assist you in case of any problem, only 10% say no.

4.5 Summary of Findings


The final draft of the questionnaire was prepared on the basis of the
observations from the pilot study. These were then finally filled by 100
customer, for the conclusive study.
Finally the data collected was fed into the data analysis to be analyzed
using statistical techniques.
Types of Primary Data collected:

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Customer preference & attributes towards Saving Account of HDFC Bank

Socioeconomic Characteristics:
characteristics are sometimes called states of being in that they
represent the type of people. The factors on which we are working are
occupation. Monthly transaction is also an important parameter but it is
difficult to verify. Although the amount of money that business unit earns in
a month is an absolute, not a relative quantity but it is a sensitive topic in
our society and it is difficult to determine.
Attitudes/Opinions:
Through the questionnaire we have tried to get hold of business
preference, inclination and requirement. Attitude is an important notion in
the marketing literature, since it is generally thought that the attitudes are
related to the behavior of businessmen.

Motivation:
Through the questionnaire we have tried to find the hidden need or want of
businessmen and have tried to find if these people can be tapped as the
potential customer for HDFC Bank.
Behavior:
Behavior concerns what subjects have done or are doing. Through the
questionnaire we have tried to find out the behavior of the individuals

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Customer preference & attributes towards Saving Account of HDFC Bank

regarding the product and their responses. If the responses are favorable then
the person can be said to be our potential customer. The primary data serves
as an important tool to measure the behavioral trend of the customer. It helps
in answering some of the vital Questions.
Obtaining the Primary Data:
The

data

collection

was

primarily

done

through

communication.

Communication involves questioning respondents to secure the desired


information, using a data collection instrument called questionnaire. The
questions were in writing and so were the responses.
Versatility:
It is the ability of a technique to collect the information on the many types of
primary data of interest to marketers. It has also been found that some of the
people do not answer truthfully to all the questions especially in the case of
the personal details

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Customer preference & attributes towards Saving Account of HDFC Bank

CHAPTER

SUMMARY
AND
CONCLUSIONS

5.1Summary of Learning Experience

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Customer preference & attributes towards Saving Account of HDFC Bank

Almost all the Banks offer similar features and facilities with their Savings
accounts. There are certain reasons for existing customers of Saving
Account of any Bank to shift to another Bank.
The level of service in terms of delivering whatever is promised, fast
response in case of problems, is the most important benefit that the
customers seek, from the Bank they have a Saving Account with.
1. Network reach and visibility of a Bank is a very important criterion for
the customer while opening a Saving Account. We can also conclude
from our analysis that network reach in terms of Branches and ATMs is
directly proportional to the market share in case of Private Players.
2. In case of a new customer, if a bank approaches it first for opening a
Saving Account with them, then there is a good chance for the bank of
getting many future businesses and cross sales from the deal.
3. Aggressive Marketing is the key to increasing the market share in this
area, since the market has a lot of potential both in terms of untapped
market .
Conclusions and Recommendations

1. Contract Sales Executive (CSE) should be trained to explain the


product features and its value added services to make customers
product selection convenient.

2. Contract Sales Executive (CSE) should recommend right product to


the right customer so as to ensure a high degree of satisfaction among
the customer.

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Customer preference & attributes towards Saving Account of HDFC Bank

3. The bank needs to make people aware about there products and the
basic benefits they can derive out of it. And also the differential
features of its savings account as compared to other banks.70% of the
people did not even know about the concept, benefits and features of
its saving accounts.

4. The bank should also target small business unit for whom
maintenance of the AQB is not a problem as this segment is not much
penetrated.

5. Though the bank offers free doorstep banking once a day this fact is
also not known to many customers or they still do not trust this service
what ever the reason the bank can popularize this service to gain an
edge over nationalized banks and Co-operative Banks.

6. Quality of service has been rated highly important by all demofigureic


factors as a reason for banking with a particular bank, Standard
Chartered needs to improve the services provided to its existing
customers before attracting more in the future and use word of mouth
as a promotional tool to increase the sales potential of its savings
account.

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Customer preference & attributes towards Saving Account of HDFC Bank

LIMITATIONS
Some of the limitations of the project are listed as below:

1. The time bound period is the major limitation in research projects.


2. Due to the financial and time constraints a cluster analysis of the
population so as to get better results was not feasible.
3. The research conduct in Bangalore city only.
4. It was difficult to break the ice with the common people initially. It was a
daunting task to convince them to fill in the personal details of the
questionnaire where they have to mention the monthly income,
occupation etc.
5. To convince the people for a proper interviewing process is also
difficult.
6. Compilation of data on competitor analysis was difficult due to nonavailability of correct information.

7. The figures have been taken as approximations.

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Customer preference & attributes towards Saving Account of HDFC Bank

QUESTIONNAI
RE-

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Customer preference & attributes towards Saving Account of HDFC Bank

Name of Respondent
_________________________________

Contact No.
_______________________

1. Monthly Transaction?
________________________________________________

2. Do you have saving Account?

(a) Yes

(b)

No

3. If Yes Which bankso ICICI


o HDFC
o Kotak Mahindra Bank
o Nationalized
o

Other Banks _________________

Co-Operative Banks___________________

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Customer preference & attributes towards Saving Account of HDFC Bank

4. Which Factors do you consider for opening a saving Account

o
o
o
o
o

o Accessibility
o Minimum Balance

Cheque Pick up
Net Banking
Mobile Banking
At Par Cheques
NEFT
RTGS

o DD/ Pay Order


o Free Cheque
o Debit Card
o Cash Deposit

5.

Which mode of transaction do you avail frequently?


(a) Cheque

6.

(c) Pay Order

Which type of transaction do you made


(a) Inter city

7.

( b) DD

(b) Intra city

(c) Both

Does your bank assist you in case of any problem


(a) Yes

(b) No

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Customer preference & attributes towards Saving Account of HDFC Bank

8.. What are the additional Benefits do you expect from a Saving Account?
____________________________________________________________
____________________________________________________________
_____________________.

Date___________________
Place__________________
Signature

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, Bangalore.

Customer preference & attributes towards Saving Account of HDFC Bank

BIBLIOGRAPHY
1.BOOKS & AUTHORS
Marketing Management
2. NEWS PAPERS
Times of India
Financial Express
3. WEBSITES
www.hdfcbank.com
www.google.com

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