Академический Документы
Профессиональный Документы
Культура Документы
Customer Focus
Sustainability
People
Operational
Excellence
Product Leadership
Submitted by
Indra Mani Tripathi
MBA UBS( 2015-2017)
DECLARATION
I undersigned INDRA MANI TRIPATHI student of MBA declare that I have done
the project on HNW Scoping and Market Survey has been personally done by me
under the guidance of Mr. GAGAN SHARDA (Branch Manager, HDFC Bank) in
partial fulfillment of MBA Program- during academic year-2015-17. All the data
represented in this project is true & correct to the best of my knowledge & belief.
I also declare that this project report is my own preparation and not copied from
anywhere else.
Date 06-07-2016
Signature
ACKNOWLEDGEMENT
I take this opportunity to express my deep sense of gratitude, thanks and regards
towards all of those who have directly or indirectly helped me in the successful
completion of this project.
I present my sincere thanks to Mrs. Bharti Soni (Head HR, HDFC Bank) who allowed
me to take training at HDFC BANK.
I would also like to thank HDFC bank Staff for their wonderful support & inspirable
guiding.
I am grateful to all faculty members of UBS, Chandigarh and my friends who have
helped me in the successful completion of this project.
Last but not the least I am indebted to my parents and family who provided me their
time, support and inspiration needed to prepare this report.
Date: 06-07-2016
Place: CHANDIGARH
Signature
Contents
1. Introduction
1.1 History of Banking1
1.2 Mission, Vision & Business Strategy...6
1.3 Board of Directors and Business Heads....7
1.4 Awards...9
1.5 Integrated financial Service..10
1.6 Business Statement...10
1.7 Objective of Study ...12
1.8 Problem Definition12
1.9 Importance of Study..13
2. HDFC Bank Products for middle segment traders..14
3. Review of Literature.22
4. Research Methodology
4.1 Research Design.26
4.2 Sample26
4.3 Sampling.26
4.4 Data Collection...26
4.5 Data Analysis..26
5. Analysis
5.1 Descriptive Analysis...28
5.2 Inferential Analysis.36
6. Findings
6.1 Conclusion..40
6.2 Managerial Implication...41
6.3 Limitation...42
References......43
Annexure44
Introduction
1.1 History of Banking
Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700s
and 1800s, with many banks created to deal with increasing trade.
The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which
extended throughout Europe, Asia and Africa.
Modern banking began in Venice. The word bank comes from the Italian word ban
co, meaning bench, because moneylenders worked on benches in market places. The
bank of Venice was established in 1171 to help the government raise finance for a
war.
At the same time, in England merchant started to ask goldsmiths to hold gold and
silver in their safes in return for a fee. Receipts given to the Merchant were sometimes
used to buy or sell, with the metal itself staying under lock and key. The goldsmith
realized that they could lend out some of the gold and silver that they had and charge
interest, as not all of the merchants would ask for the gold and silver back at the same
time. Eventually, instead of charging the merchants, the goldsmiths paid them to
deposit their gold and silver.
The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.
New technology transformed the banking industry in the 1900s round the world,
banks merged into larger and fewer groups and expanded into other country.
Banking Structure in India
In todays dynamic world banks are inevitable for the development of a country.
Banks play a pivotal role in enhancing each and every sector. They have helped bring
a draw of development on the worlds horizon and developing country like India is no
exception.
Banks fulfills the role of a financial intermediary. This means that it acts as a vehicle
for moving finance from those who have surplus money to (however temporarily)
those who have deficit. In everyday branch terms the banks channel funds from
depositors whose accounts are in credit to borrowers who are in debit.
Page 1
Without the intermediary of the banks both their depositors and their borrowers would
have to contact each other directly. This can and does happen of course. This is what
has lead to the very foundation of financial institution like banks.
Before few decades there existed some influential people who used to land money.
But a substantially high rate of interest was charged which made borrowing of money
out of the reach of the majority of the people so there arose a need for a financial
intermediate.
The Bank have developed their roles to such an extent that a direct contact between
the depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking
deposits, money transfer and making advances. Those three are closely related to each
other, the objective being to lend money, which is the profitable activity of the three.
Taking deposits generates funds for lending and money transfer services are necessary
for the attention of deposits. The Bank have introduced progressively more
sophisticated versions of these services and have diversified introduction in numerable
areas of activity not directly relating to this traditional trinity.
Page 2
Non-Schedule
Banks
Schedule Banks
State co-op
Banks
Central co-op
Banks and
Primary Cr.
Societies
Commercial
Banks
Indian
Public Sector
Banks
State Bank of
India and its
Subsidiaries
Commercial Banks
Foreign
Private Sector
Banks
Other Nationalized
Banks
HDFC,
ICICI etc.
Regional Rural
Banks
Page 3
Page 4
Page 5
Mission
World Class Indian Bank
Benchmarking against international standards.
To build sound customer franchises across distinct businesses
Best practices in terms of product offerings, technology, service levels, risk
management and audit & compliance
Vision Statement
The HDFC Bank is committed to maintain the highest level of ethical standards,
professional integrity and regulatory compliance. HDFC Banks business philosophy
is based on four core values such as:1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range
of financial products and banking services, giving the customer a one-step window for
all his/her requirements. The HDFC Bank plus and the investment advisory services
programs have been designed keeping in mind needs of customers who seeks distinct
financial solutions, information and advice on various investment avenues.
Business Strategy
I.
Increasing market share in Indias expanding banking
II.
Delivering high quality customer service
III.
Maintaining current high standards for asset quality through disciplined credit
risk management
IV.
Develop innovative products and services that attract targeted customers
and address inefficiencies in the Indian financial sector.
Page 6
Mr. Aditya Puri holds a Bachelor's degree in Commerce from Punjab University
and is an Associate Member of the Institute of Chartered Accountants of India.
Prior to joining the Bank, Mr. Puri was the Chief Executive Officer of Citibank,
Malaysia
.
Mr. Puri has been the Managing Director of the Bank since September 1994. Mr.
Puri has nearly 40 years of experience in the banking sector in India and abroad.
Mr. Puri has provided outstanding leadership as the Managing Director and has
contributed significantly to enable the Bank scale phenomenal heights under his
stewardship. The numerous awards won by Mr. Puri and the Bank are a testimony
Page 7
to the tremendous credibility that Mr. Puri has built for himself and the Bank over
years.
Mr. Puri is a member of the following Committees of the Board of the Bank:
Stakeholders' Relationship Committee
Corporate Social Responsibility Committee
Risk Policy and Monitoring Committee
Credit Approval Committee
Customer Service Committee
Fraud Monitoring Committee
Premises Committee
A N Roy
Director
Bobby Parikh
Director
Kaizad Bharucha
Executive Director
Keki Mistry
Director
Malay Patel
Director
Paresh Sukthankar
Partho Datta
Director
Renu Karnad
Director
Sanjay Dongre
Sanjay Dongre
Secretary
Sashidhar Jagdishan
Additional Director
Page 8
1.4 Awards
Dun & Bradstreet Corporate Awards HDFC Bank wins Dun &
Bradstreet Corporate Award
2016
2016 in the Banking sector
Profitability:
Rank
1
The Financial Express India's Best Efficiency:
Rank
1
Banks Awards 2015
- Strength & Soundness: Rank 1
Pension Fund Regulatory and - Best Performing Bank Development Authority awards for Maximum APY Subscribers
- Best Performing Bank in the
Atal Pension Yojana
Private sector Banks category
- Best Performing Bank : Atal
Pension Yojana Carnivals in
Private Sector Banks
Business Today
IBA Awards
Business Today
NABARD Award
Business Today - KPMG India's Best HDFC Bank wins Bank of the
year and Best Digital Banking
Bank
Initiative awards
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
A Current Account with the benefits of accessing account from a large network of
branches, and through direct access channels - the phone, mobile, Internet and through
the ATM.
Regular current account
A Current account is ideal for carrying out day-to-day business transactions. With the
HDFC Bank Regular Current Account, customer can access account anytime,
anywhere, pay using payable at par cheques or deposit cheque at any HDFC bank
branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for
faster collections in account. Regular Current Account requires to maintain an average
quarterly balance of only Rs. 10,000.
With a vast network of branches in cities all over the country, and access to a
multitude of ATM's, customer can keep track of all transactions anytime.
Reimbursement Current Account
No more paperwork, no more receipts to keep track of - a hassle-free account that
allows deposit the reimbursements receive from company/organization on a monthly
basis.
To open this account a person has to follow these processes:
Procure an Account Opening Document (AOD) from HDFC Bank. (If person has just
joined, first request to company to open up a Salary Account for particular person).
Mention Salary Account number and Debit Card number on the AOD so that Debit
card can be linked to both, Salary Account as well as new Reimbursement Account.
Request company to directly credit cash payments to the Reimbursement Account.
Page 15
2.2 Limits
HDFC Bank offers a unique range of working capital facilities at door-step. It offers
affordable, convenient financial solutions which are of paramount importance in
running an efficient enterprise.
Types of Working Capital / Limit
Cash Credit / Overdraft- HDFC Bank offers Cash Credit / Overdraft
facilities to various segments of customers for their working capital
requirements. This is a fund based facility to help fund business inventory
(raw materials and finished goods) and receivables (debtors).
Letter of Credit (LC) - HDFC bank offer import financing through Letters of
Credit, which are well accepted globally and supported by a strong trade
finance set up. It is direct members of SWIFT and has correspondent banking
Page 16
arrangements with more than 450 banks worldwide. It also structure complex
Letters of Credit.
Bank Guarantee (BG) - Bank Guarantees are necessary for certain business
obligations. At HDFC Bank, Bank Guarantees are issued on customers behalf
under any business contract.
Packing Credit (PC)- Packing Credit is offered to exporters to help them
finance the purchase and import of raw materials, and the processing and
packing of the goods meant for export.
Post Shipment Finance
Bill Discounting
Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises,
Retailers, Stockist, Distributors, Merchant Establishments,Departmental Stores,
Supermarkets, Restaurants, Multi Brand Outlets etc.
2.3 POS
In the technical world people are trying to keep as much less cash with themselves as
they can. So point-of-sales or swapping machines are a basic requirements for every
trader.
Page 17
Page 18
As per the requirement of the every person there are much type of loans are there in
the HDFC bank.
Personal loan
A person has so many dreams but some time due to scarcity of money a dream cant
be satisfy. So, here one solution for that person this is personal loan. From this he/she
can fulfill their needs or requirement. It can be any thing either a dream of vacation or
son/daughters admission to college or any wedding, so personal loan can be helpful
in this entire requirement.
As person ordered in the hotel for tea or coffee and it is immediately came fast, same
over here any person want to get a personal loan with the nominal documents he can
get the loan.
Home loan
HDFC Bank brings, HDFC home loans to doorstep. With over 30 years of
experience, a dedicated team of experts and a complete package to meet all housing
finance needs, HDFC Home Loans, help people realize dream.
Vehicles loan
Nowadays the life is being so fast, time value is becoming more important so to
reach at the destination of any business related occasion or for a boy to reach college
or any where at the fix time there are so many requirement of vehicles. But every
people have no capacity to purchase vehicles with cash so for that here in the HDFC
bank vehicles loan is available. There are many types of vehicles loan.
Types of vehicles loan:
Two wheeler loans.
New car loan.
Used car loan.
Tractor loan (for agree culture business).
Commercial vehicle loan.
So, as per the requirement of the person there are these types of loans are available
this are at the chip rate and hassel free from more documentation and other procedure.
And commercial businessman can get the benefits of the commercial vehicles loans.
Thus as per the need of different people there are vehicle loans available. And also
terms and condition are different as per the requirement.
Express loan plus
Bank offer Express Loans Plus at person Doorstep to help fulfill all his/her needs.
The procedure is simple, documentation is minimal and approval is quick. It is helpful
to person in repairing of house, School admission or also in the family holiday.
Page 19
Card Services
In todays competitive and fast time card services providing by the banks are
really very important to every person and every business needs or to take meal in to
the hotel or to purchase jewellery from the jewellery shops cards are playing good role
in the banking sectors.
Bank ranges of Cards help to meet financial objectives. So whether persons are
looking to add to his buying power, conducting cashless shopping, or budgeting his
expenditure, he will find a card that suits him.
Credit cards
A person wants many things like, a trip to Bali, a diamond ring for wife's dreams.
Some dreams can't wait. If there's something person has always wanted. If a person
wanted fulfill his wants he can get benefits from the HDFC banks credit cards
facilities. different types of credit
Classic cards
Silver Credit Card.
Value plus Credit Card.
Health Plus Credit Card.
Premium Cards:
Gold Credit Card
Titanium Credit Card
Woman's Gold Card
Platinum Plus Credit Card
Visa Signature Credit Card
World MasterCard
Commercial Cards
Corporate Credit Card
Debit card
HDFC Bank Debit Cards give person complete and instant access to the money in his
accounts without the risk or hassle of carrying cash.
Types of debit card: Classic card
Easy shop international Debit card.
Premium card
Easy shop gold Debit card.
Specialized card
Easy Shop International Business Debit Card
Easy Shop Woman's Advantage Debit Card
Easy Shop NRO Debit Card
Page 20
Kisan Card
Prepaid card
Besides offering convenience, Prepaid Cards have been tailored to answer travel and
gifting needs.
ForexPlus Cards
Prepaid Travel Card.
Gift Plus Cards
Prepaid Gift Card
Food Plus Cards
Prepaid Food Plus card.
Money Plus Card
The Corporate Payment card
Payment Services
Nowadays life of a person become very stressful and he/she becoming busy with their
own business, but they have to payment for something so for that reason banks
payment services become started. With HDFC Bank's payment services, person can
bid goodbye to queues and paper work. Banks range of payment options make it easy
for pay for a variety of utilities and services.
Verified By Visa
Do you want to be worry free for your online purchases. Now you can shop securely
online with your existing Visa Debit/Credit card.
Net Safe
Now shop online without revealing your HDFC Bank Credit Card number. What
more, you can now use your HDFC Bank Debit Card also for online purchases.
Merchant Services
Accept all Visa, MasterCard, credit and Debit cards at your outlets through state of the
art POS Machines or through your website and experience hassle free payment
acceptance.
Prepaid Mobile Refill
If you are an HDFC Bank Account holder, you can now recharge your Prepaid Mobile
Phone with this service.
Page 21
Review of Literature
Analysis of customer behaviour is an essential input in planning marketing strategies.
Consumer behaviour guides in market segmentation, one of the important tools in
bank marketing. The behavioural aspects of a bank customer are given less
importance in the financial analysis of bank products. It cannot be ignored that it is the
customer who creates the demand for products and any change in these needs would
affect the demand also. Customers have different preferences and a purchase decision
is effected after considering the range of services offered by the banks. These
variations may be related to the psychological differences among individuals on
aspects such as attitude, motives, social class needs, culture, etc. This can be studied
only with the help of market research studies on customer behaviour and their
preference patterns.
Customer behaviour is influenced by three sets of factors, viz., external factors,
internal factors, and the consumer process. Culture, occupation, social class and
geographic location are factors which externally influence customers. Culture is a mix
of beliefs, attitudes, and ways of doing things by reasonably homogenous set of
people. 23 Culture explains how and why people behave as they do and also
transcends to their buying behaviour. Education, upbringing, religious beliefs, and
living conditions are the factors that would shape up the culture of a person. Origin of
private banks in India can be largely attributed to the needs of specific cultural or
communal groups. Even now some banks survive only on this aspect of customer
behaviour, though, of late they have realised the need expanding outwardly. breaking
the boundaries of their small segments. In the United Kingdom, not less than several
hundred small bank branches exist. just to cater to the needs of various ethnic groups.
This aspect serves as a key factor in the overseas market development of Banks.
A key segmenting dimension in banking is the social class to which a customer
belongs. It influences the usage pattern and attitude to the lending instruments and
deposits. People having higher education and socio-economic status have more
favorable attitude towards credit products than others. They tend to use products like
credit cards more frequently. ' Attitude to saving also shows variations across
different social classes. People belonging to lower strata of the society tend to
perceive savings accounts or bank deposits as a tangible security shield. This may be
due to the fact that education equips people to evaluate the options and thus optimise
their purchase decisions. However. sometimes-behavioural characteristics might
overshadow such influences. Some of the observations that may find application in
developing marketing strategies for segmentation based on social classes are given
below.
Different social classes exist and target marketing would enable banks to tap
the potential in such segments Income need not be the most determinant factor
in segmentation. Psychological differences largely remain unexplored in the
Indian markets. In the financial products marketing, the opinion of reference
groups has considerable influence on customer's choices. A customer is more
HDFC Bank: Market Survey
Page 22
Page 23
If a person is non-mobile (stays in one place) the branch coverage has effect
on loyalty.
Page 24
Page 25
Research Methdology
4.1
Research Design
As the study is for markets survey of products of HDFC Bank so our research design
is exploratory. In this we are having some knowledge about the middle segment
traders as they use current a/c, POS, limits etc. But there are still lack of satisfaction
regarding various factors, so this study is going to find out what are they and how can
be they overcome.
4.2
Sample Size
Sector 22 & 35 markets are one of the biggest markets in terms of transaction and
area both. I have covered the whole market area of sector 22 & 35, but due to various
constraints the sample size got limited to 82 only.
4.3
Sampling technique
There was a predetermined sample of market 22 & 35. So basically I covered the
whole market of these two sectors, but the sample got to be only 82 due to
unavailability of information.
4.4
Data Collection
4.5
Data Analysis
Page 26
(ii)
(iii)
Page 27
Analysis
5.1 Descriptive Analysis
In this there is a complete description of obtained result from the direct analysis of
questionnaires which are some basic business information and banking information.
Later on there is a satisfaction level analysis with the primary banks also.
5.1.1
Business Information
Business Type
Sole
Partnership
Private Ltd.
No. of Customers
54
21
7
Annual Turnover
It can be seen from above pie graph that most of the traders lie in 50 lakh to 5 Crore
group, which is more than half (56%). It gives a clear indication that most of the
HDFC Bank: Market Survey
Page 28
traders lie in middle income group according to market of sec. 22& 35, which is an
elite market. There are more than 5 Crore annual Turnover traders also but in a lesser
amount, so focus should be on the middle one and tapping that group.
Dealing in
Most of the traders (82%) are involved in trading as there dealing. As it is a market
where customer dealing is most so trading is the one segment which is most
responded. The wholesale business are very less, and which are they were not
interested in giving any info as they deal in large no. of transactions and they did not
have any time
5.1.2
Page 29
This bar graph gives idea about the presense of HDFC Bank and the
competitors in market. It can be seen from the graph that HDFC Bank is
serving as primary bank with covering almost 25% of the market share. The
major competitor is ICICI Bank which is almost half ( approx. 13% ) of
market share. If we talk about the public sector banks then PNB is one of the
major competitors.
Almost all the traders are having current a/c with there primary banks. Thi was
a multiple option question so that we can see that most no. of people who have
current a/c with there primary bank they do have POS of that bank also.
Reasons for selecting above Bank
Page 30
When asked about why do they have the particular bank as there primary bank
then efficient services is one of the major reason which was given by them.
Nearness to location and lesser service charges are also a factor ehich play an
important role. If we talk about efficient services and nearness to the location
then HDFC Bank beats other bank and this give a proper reasoning of its being
as primary bank.
When asked about having the options in banking, again most of the
respondents were with HDFC Bank. This was so because one who is having
banking with a public sector bank, he must be having requirement of better
services also, so he will prefer to go with one of the private sector bank.
Page 31
When asked about reason for selecting a particular bank as optional bank the
service charge and services were the one which was major. This was so becaus
if a person is banking with public sector bank then its his common perception
that cost is less but services are not good so he would go to an private sector
bank for the options, and vice-versa is true also.
Current a/c needs for traders are like a saving account for an individual. So
sec. 22&35 are having HNW traders so probably they all have current a/c. It is
minimum in one bank and maximum upto 5 banks. Again HDFC Bank is a
Page 32
leader in current a/c among traders. Either they are having it primarily or as an
optional.
Factors important while taking current a/c- Charges on transaction was the
major factor (64.2%) while taking the decision regarding current a/c. The no.
of transaction/day (55%) was on the second importance. Location of branch
(30%) and updation of a/c details were another factors.
Limit information
Limit from
Very less no. of people was having limits from banks. As most of the business
were sole propriety so all the money invested in business were of traders only.
Limit is the one about types of limit, there charges and other factors are still
unknown to most of the traders. They still think public is better in taking up
limit due to their contacts or trust etc. reason.
Factor important while taking up limit In deciding up the limit the
important factor which comes to any of the trader or a common man mind is
the charges which would be imposed as interest. So this was major factor
(55%). The speedy processing (43%) and easier documentation (31%) are also
some important factor. The recommendation from friends, family etc are
(37%) are still in a majority. So there is need to understand that a banker can
give you better recommendation.
Page 33
POS Information
POS of which Bank
POS is an important aspect of todays technological world for the traders. And
HDFC Bank is a leader in having POS in market. Most no. of banks use
HDFC POS either as a primary one or for optional. Again ICICI is the one
which is a major competitor for HDFC in this also.
Factor important in having POS of any- When asked about the reason for
having POS of any particular bank then service quality (70%) is the main
reason, and HDFC Bank focuses on it so its a leader in tapping POS services.
Page 34
5.1.3
Services
A. Responsiveness
to
enquiries
B. Fast processing of your loan 2.7%
applications
C. Personalized services
1.2%
D. Financial
guidance
counseling
E. Updating of a/c details
& 1.2%
SoSo
4.9%
Satisfied
87.7%
4.9%
1.3%
20%
62.7%
13.3%
1.2%
25.6
%
28%
67.1%
4.9%
61%
7.3%
29.3
%
10.1
%
19.5
%
57%
63.4%
6.1%
69.6%
17.4%
69.5%
8.5%
34.2%
6.3%
13.4
%
7.6%
8.5%
15.9
%
73.2%
9.8%
76.5%
11%
73.2%
9.9%
78%
8.5%
2.4%
1.2%
F. Assistance
in
cash
management
G. Fast collection/transaction of
funds
H. Flexibility
in
providing
services
I. Range of services offered
2.9%
1.2%
1.2%
1.3%
1.3%
1.2%
2.4%
1.2%
2.4%
0
3.7%
0
2.4%
This was done basically to know the main reason and satisfaction level of a trader
with particular bank. This also gives idea about how the potential customers can be
tapped by focusing on a particular parameter. The above table gives basically
following interpretation Most no. of peoples (87.7%) are satisfied with the responsiveness of there
banks, which is a major service market factor.
Flexibility in providing info where satisfaction is just 40% is the one
parameter which needs to be get focused for tapping the potential customers.
Assistance in providing info ,where people are enjoying a good satisfaction
level is the one which is need of hour. The advertising tools, managers visit
and other factors are playing a major role in technological world.
Page 35
5.1.4
The traders who are having HDFC Bank as primary bank approx. 45% of
them having current a/c in other banks also.
No. of transactions/day is important for almost 75% of HDFC customers.
No customer who are having primary bank is having limit from HDFC
Bank. They are mostly having limits from public sector banks due to lower
rate of interest.
100% customers who are having HDFC as primary is having POS of
HDFC Bank.
Speed of transaction is important for around 50% of people who are
having HDFC as primary Bank
The overall satisfaction with HDFC Bank products is around 4 when
having HDFC Bank as primary Bank.
5.1.5
The traders who are having other bank as primary one approx. 33% are
having current a/c in HDFC Bank also.
Here again No. of transactions/day is the major reason when we see there
reasons for having HDFC Banks current a/c.
Approx. 12.5% traders are having limit with HDFC Bank if its not there
primary Bank.
The major reason is easier documentation and better financial guidance in
having HDFC limit.
More than 50% traders who are not having HDFC Bank as there primary
Bank is having its POS.
The average satisfaction level with other banks customer with there bank
is found to be 3.75.
(I)
SWOT Analysis
Strengths
* HDFC bank holds strong position on CRM part, they have professional, dedicated
and well-trained employees.
* HDFC bank offers a wide range of banking and financial products and financial
services to corporate and retail customers through a variety of delivery channels such
HDFC Bank: Market Survey
Page 36
Weaknesses
* The coverage market area of HDFC bank is very limited. Most of the banks are
situated in metropolitan cities.
* The major challenge that HDFC bank has to face is lack of trust and belief shown
by the Indian population, as compared to public sector banks. This perception is
mainly due to the absence of government security and few years of working in this
field.
* The employee turnover appears to be on the higher side as the customer doesnt get
that emotional attachment with all the managers.
Opportunities
* HDFC bank does not have bureaucratic environment and therefore, enjoy a high
level of autonomy, facilitates faster decision making.
* Efficient employees and good working conditions enable HDFC bank to reduce the
operating cost of the functions and increase return on investments.
* With higher automation to work, HDFC can innovate new products (customized
products) and services and achieve high customer satisfaction.
* With responsive organizational structure, HDFC bank is better equipped to solve
customer problems and provide enhanced customer services.
* HDFC bank is majorly situated only in urban areas so the market expansion in rural
areas provides a major opportunity to these banks.
* With full computerization, HDFC offer cost effective services like ATMs,
Electronic Fund Transfer, I-banking, etc.
Page 37
Threats
* Expansion of foreign banks in India poses tough competition.
* The failure of a private sector bank (Global Trust Bank) and the frequent
announcements of takeover/merger and acquisition by public and old private sector
banks give a picture of unstability to HDFC bank in India.
* It is true that the share of HDFC bank is increasing, but to sustain the Indian public
sector banks are recharged with new technology, efficient distribution network and
skilled human resource pool and with high market share will overshadow the private
sector banks.
(II)
Perceptual Mapping
Current A/c
satisfaction
HDFC
HDFC
YES
PNB
YES
0
Overall
Satisfaction
ICICI
3
PNB
KMB
Others
ICICI
3
4
5
SBI
6
IndusInd
Others
UBI
AXIS
SBI
This map is basically used for competitors analysis. As current a/c is the one which is
used by all the traders, so there satisfaction level on scale of 1-5 was noted down. The
overall satisfaction level has been calculated by taking average of particular banks
satisfaction level with customers satisfaction at various parameters. This gives the
basic idea of satisfaction level of the customers with different banks.
Now in perceptual mapping by analysing above graph we get following Here as observed HDFC bank is leader among banks on satisfaction level.
The main competitors among satisfaction level is mainly other categories
which basically contains public sector banks.
If we talk about private sector bank then YES bank is major competitor in
providing satisfaction level.
The size of bubble denotes the market share of the bank. As it can be observed
that HDFC is having highest market share followed by ICICI bank.
Page 38
(III)
Descriptors
JINENDER JAIN
RAJESH
Fast collection/transactions of funds
RAMA STORES
Range of services offered
Complaint service procedures
Assistance in providing info
Reliability in providing info
2.5
3.5
4.5
Values
This analysis is basically done exclusively for HDFC Bank customers. For this first a
sample of 5 were chosen from 21 who are having HDFC as there primary bank. After
this according to their satisfaction level on various parameters semantic differential
chart has been prepared using excel.
The above chart can be interpreted in following points Range of services offered is the one parameter on which 4 out of 5 have given 5
point to HDFC Bank. So range of services offered is the most satisfactory thing
among customers.
Financial guidance and counselling, fast processing of loan request, assistance
in cash management, flexibility in providing services and complaint service
procedures are the parameter where there 3 different opinion exist, which is due
to the fact that person caring is needed in all these parameters. So there is need
to evaluate a customer carefully and providing them all the personal
information related to wealth.
There is not any two cases in which all the reply are same in respect to all the
parameters. This is showing lack of standardization of services provided to
customers which need to be take care of.
Page 39
Findings
1.1 Conclusion
We can draw following conclusion from all the analysis and study implemented From the business information it is very evident that most of the traders deal
in trading so POS, EMI options etc. are the major product in which they may
be interested.
The majority of turnover group is 50 Lakhs to 5 Crore group. So there should
be also a consideration of providing them information as to where to invest
their money in bank, for how much time, how this can benefit there business.
And also there should be persuasion to mould them majorly towards HDFC
Bank instead of let them banking with multiple banks.
In the banking information, first section was for primary bank. Here around
25% of the sample is having primary bank as HDFC Bank, which is a very
less in competitive terms, as here HDFC has one of the oldest branch. Still
there are various factors due to which traders are banking with most of the
public sector banks. All the traders were having current a/c with their primary
banks, but still very less are having limits from there bank, either it be HDFC
or any other bank.
When asked about the reason for having a particular bank, people who are
having public sector bank they said either he knows someone in banks or the
trust level is very high with them but none of them said that I am getting very
good service so that I am with a particular public sector bank. So still there is
the trust lack among peoples regarding HDFC Bank, which is a major reason
for lacking behind to grab the market share.
When it comes to multiple banking people who are not having HDFC Bank as
their primary bank most of them are either having a HDFC Bank POS or some
lesser amount current account but not limits. When asked about reasons for
having multiple accounts there were two type of conclusion drawn- first, if
that person is having public sector bank then he is having multiple banking
with private sector bank due to better services and second, if he is having
private sector bank as primary bank then the cost or service charge is the
reason of having multiple bank accounts. So focus should be paid towards
balancing cost and service.
Page 40
If we talk about current a/c then HDFC bank is again a leader but people are
having multiple current a/c. They dont have trust on service facility of one
bank. The service charge, nearness to locations etc are the major factor in
dealing with current a/c with any bank. No. of transactions are the important
factor only for the traders who are having an annual turnover of above 1 crore.
Limit is the one which is still undiscovered in market and very few traders
show interest in talking about limits. This is due to lack of information about
types of loans, charges etc. People are having still conservative thinking that
public sector bank provide loans at very less cost. So these are the still
misconceptions about HDFC Bank limits among traders.
Now if we talk of POS, then HDFC Bank is a giant leader. It covers almost
3/4th of the traders segment in market. The main reason provided by traders
was that they want to have some multiple options. HDFC Bank services of
POS were also one of the reasons for preferring its POS.
Satisfaction level analysis was done to understand the potential customer and
existing customer satisfaction with HDFC Bank and its competitors. It was
basically done on satisfaction experience of traders with their primary banks
based on various parameters. The main conclusion which derived from above
satisfaction analysis was that HDFC Bank was at a way high satisfactory level
than other banks. The public sector banks are having a so-so level when we
get the information about their personalized services, info providing etc. ICICI
Bank is the one whose customer base satisfaction level is not so good, so they
are the one who can be tapped as potential customer.
Page 41
Limit is the one product which is still undiscovered in market by major banks.
EMI options, working capital etc. are also about people dont have information.
There can be a day in bank in which all the sales officers should be available
just for giving consultation for free especially for traders. It can be named as
financial health consultation camp. It should can be organised in middle of a
market.
I n having a market survey there should be some incentive or lucky draw type
plan for the surveyee. It motivates them to participate in survey actively.
1.3 Limitations
This study was limited to only sector 22 & 35 markets. These are one of the
largest market in Chandigarh and crowded one. So this study may have some
constraints in applying it for other markets.
The unavailability of owners was a major limitation. So the information was
provided by accountant, manager or workers. So authenticity of some
information may vary.
Information about the products were also a limitation as traders were not able
to explain why they are having specific product from specific bank.
Page 42
References
Management:
Branch
Level
Page 43
Annexure
Questionnaire
A. BUSINESS INFO
1. Ownership
Sole Proprietary
Private Ltd.
Partnership
50 Lakhs- 5 Crore
5 Crore above
2. Annual turnover
0-50 Lakhs
3. Nature
Trading
Business Retail
Service
Export Oriented
Others
SBI
PNB
UBI
Others
Limit
POS
EMI
options
Working
Capital
Cards
Insurance
Others
2. (a) With which other banks do you associate with your business purpose(multiple)
HDFC
SBI
PNB
UBI
Others
Page 44
3. How do you rate the services of your primary bank with respect to the following-
Services
Very much
dissatisfied
Dissatisfie
d
SoSo
Satisfied
A. Responsiveness to your
enquiries
B. Fast processing of your loan
applications
C. Personalized services
D. Financial guidance &
counseling
E. Updating of a/c details
F. Assistance in cash
management
G. Fast collection/transaction of
funds
H. Flexibility in providing
services
I. Range of services offered
J. Complaint service procedures
K. Assistance in providing info
L. Reliability in accounting
4. (a) Have you taken any limit from any bank ( )Yes
If Yes, then from which bankHDFC
SBI
( )No
PNB
UBI
Others
Very much
important
Somewhat
important
Not important
SBI
PNB
UBI
Others
Very much
important
Somewhat
important
Not important
No. of transactions/day
Page 45
Charges on transaction
Location of branch
Updating a/c details
Name
Contact No
.
Page 46