A PROJECT REPORT ON

COMPARATIVE STUDY ON SERVICES PROVIDED

BY ICICI AND HDFC BANK

SUBMITTED BY
SHWETA. RAJAN LAD

T.Y.BBI SEM-V
(2012-2013)

UNDER THE GUIDANCE OF

PROF. RESHMA KHAN

GURUKUL COLLEGE OF COMMERCE

AFFILIATED TO UNIVERSITY OF MUMBAI

TILAK ROAD, GHATKOPAR (E)

MUMBAI 400077.

August - 2012

Mumbai Pradesh Arya Vidya Sabhas

GURUKUL COLLEGE OF COMMERCE

Tilak Road, Ghatkopar (East) Mumbai - 400077

CERTIFICATE
This is to certify that SHWETA RAJAN LAD of Gurukul College of
Commerce studying in TYBBI bearing Roll No. 27 and Examination
Seat No. _____ has successfully completed the project entitled
COMPARATIVE STUDY ON SERVICES PROVIDED BY
ICICI & HDFC BANK as part of internal assignments under my
supervision during the academic year 2012 2013.

----------------------------

-----------------------------

Prof. Nitin Agarwal

(Co-ordinator)

Dr.Kshitij Prabha
Principal

---------------------------------

----------------------------

External Examiner

Prof. Reshma. Khan

College seal

DECLARATION

I MISS. SHWETA RAJAN LAD student of TY.B.COM

BANKING AND INSURANCE SEMESTER V (2012-13) of
GURUKUL COLLEGE OF COMMERCE MUMBAI 400077 do
hereby declare that I have completed project work titled
COMPARATIVE STUDY ON SERVICES PROVIDED BY
ICICI AND HDFC BANK as a part of my academic fulfillment.

The information contained in this project work is true and

original to the best of my knowledge and belief.

DATE:

--------------------------------SIGNATURE OF STUDENT
(SHWETA RAJAN LAD)

ACKNOWLEDGEMENT

I have a great pleasure in presenting my project on COMPARATIVE

STUDY ON SERVICES PROVIDED BY ICICI AND HDFC
BANKS.
I sincerely thank with deep sense of gratitude to PROF. RESHMA
KHAN, my guide for her kind co-ordination for the fulfillment of this
project.
I am highly indebted to MY CO-ORDINATOR PROF. NITIN
AGARWAL & PRINCIPAL Dr.KSHITIJ PRABHA who took
keen interest and allowed me to perform this project.
I would also like to thank our seniors, librarians who sincerely helped
me getting this information and, last but not the least my college for
the big reason that I am here in front of you in presenting this project.

SIGNATURE OF STUDENT
..
SHWETA RAJAN LAD

CHPTR SUB
NO.
TOPICS
CH 1.
1.1
1.2
1.3
1.4
1.5

TOPIC NAME
SYNOPSIS
Executive summary
Objectives of study
Review
Hypothesis
Methodology

1
1
2
3
3

CH 2
2.1
2.2
2.3
2.4
2.5

INTRODUCTION AND OBJCTIVES

Introduction on ICICI and HDFC Bank
History
Objectives, features, functions and goals
Organizational structure
SWOT analysis of ICICI and HDFC

4
6
7
10
12

3.1
3.2
3.3
3.4
3.5
3.6
3.7

SERVICES PROVIDED BY ICICI & HDFC

Accounts & deposits
Loans
Cards
Investments
Insurance
Demat A/C
Wealth management

16
22
29
35
43
53
54

4.1
4.2
4.3
4.4
4.5
4.6
4.7

COMPARASION BETWEEN ICICI & HDFC

Difference Between ICICI and HDFC
HDFC v/s ICICI: Indian Banks Compared
Tabular structure of ICICI and HDFC
Similarities & differences
ICICI v/s HDFC: Indian earning season
ICICI v/s HDFC: table
ICICI v/s HDFC: as investment options

56
56
58
59
59
60
61

5.1
5.2
5.3
5.4
5.5

ANNEXURES & QUESTIONNAIRE

Questionnaire
Findings
Recommendation
Conclusion
Bibliography

62
65
66
67
67

CH 3

CH 4

Ch 5

PAGE
NO.

CHAPTER 1: SYNOPSIS
1.1

EXECUTIVE SUMMARY

HDFC and ICICI are major financial and banking service organizations in India.
Hdfc stands for Housing Development Finance Corporation and ICICI is
Industrial Credit and Investment Corporation of India. It was in 1990s that the
Government of India decided upon a policy of liberalization under the
leadership of Narsimha Rao. This policy allowed private banks to become
established in India although small in number. The first among these banks was
Global Trust Bank after which various others like Axis Bank, HDFC Bank, and
ICICI Bank emerged. This gave a boost to the banking sector in India.
HDFC was established in 1994 by Indias largest housing finance companyhousing development finance corporation Ltd. In jan 1995, it started operating
as scheduled commercial bank. HDFC Bank merged with Times Bank Ltd in
2000 and this was the first private bank merger in India. HDFC also acquired
centurion Bank Of Punjab in 2008.
ICICI Bank was basically setup with the objective of providing middle and long
term financing to business in India. Some Indian industries, government of
India and World Bank took advantage of this initiative.

1.2

OBJECTIVE OF STUDY
To study the market shares in banking sector of ICICI & HDFC.
To study the customer satisfaction with ICICI & HDFC.
To analyze the decision making process of the customer.
To analyze the decision making process of the customer.
To study the customer perception about ICICI & HDFC
1

1.3 REVIEW
Moody's Analytics is a subsidiary of Moody's Corporation established in 2007
to focus on non-rating activities, separate from Moody's Investors Service. It
performs economic research related to credit analysis, performance
management, financial modeling, structured analysis and financial risk
management. Moody's Analytics also offers software and consulting services,
including proprietary economic models and software tools, as well as
professional training for the financial services sector, particularly risk
management accreditation. The company also provides quantitative analysis and
credit risk management tools.
Moody's to review ICICI Bank, HDFC Bank for downgrade in line with
sovereign rating
Global credit rating agency Moody's Investors Service Monday said that
it has placed India's three major private sector lenders ICICI Bank, HDFC Bank
and Axis Bank under review for a downgrade, making its intentions clear about
rating lenders in line with the sovereign rating of the nations in which they are
based.

"Moody's expects to position the standalone credit assessments of most banks

globally at (or below) the rating of the sovereign where the bank is domiciled,"
Moody's said in statement, adding that the review is expected to be concluded in
three months.
The standalone credit assessment of ICICI Bank, HDFC Bank and Axis Bank is
currently positioned above the country's sovereign debt rating, Moody's said,
just a couple of days after these lenders were stripped of their 'stable' outlook by
another ratings firm Standard & Poor's (S&P).

1.4 HYPOTHESIS
The HDFC plan is more preferable to old age group people.
HDFC is unit link pension plan is able to give returns compared to that of
companies because of lower fund management charges.
HDFC and ICICI investment is very convenient to customer

1.5 METHODOLOGY
The study was conducted by the means of personal interview with respondents
and the information given by them were directly recorded on questionnaire.
For the purpose of analyzing the data it is necessary to collect the vital
information. There are two types of data, this are Primary Data
Secondary data

PRIMARY DATA:Primary data is fresh data. This data is collected from books, internet and direct
questionnaire. The data is collected from questionnaire. The questionnaire is
filled from customer through direct interviewing them.

SECONDARY DATA:Secondary data is collected from magazines, newspaper, etc.

Eg; social networking sites, books, newspaper, etc.

CHAPTER 2: INTRODUCTION & OBJECTIVES

2.1 INTRODUCTION ON ICICI & HDFC BANK
Banking is the backbone of a modern economy. Health of banking industry is
one of the most important pre-conditions for sustained economic progress of
any country. The world of banking has assumed a new dimension at the dawn of
the 21st century with the advent of tech banking, thereby lending the industry a
stamp of universality. In general, banking may be classified as retail and
corporate banking. Retail banking, which is designed to meet the requirements
of individual customers and encourage their savings, includes payment of utility
bills, consumer loans, credit cards, checking account balances, ATMs,
transferring funds between accounts and the like. Corporate banking, on the
other hand, caters to the needs of corporate customers like bills discounting,
opening letters of credit and managing cash.
ICICI Bank Ltd. is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra. It is the second largest bank in India by
assets and third largest by market capitalization. It offers a wide range of
banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries in
the areas of investment banking, life and non-life insurance, venture capital and
asset management. HDFC Bank was incorporated in Aug. 1994 and promoted
by Housing Development Finance Corporation Limited (HDFC) India's
premier housing finance company which also enjoys an impeccable
track record in India as well as in international markets.
ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF
INDIA) Bank Ltd. is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra. It is the second largest bank in India by
4

assets and third largest by market capitalization. It offers a wide range of

banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialized subsidiaries in
the areas of investment banking, life and non-life insurance, venture capital and
asset management. The Bank has a network of 2,575 branches and 8,003 ATM's
in India, and has a presence in 19 countries, including India.
ICICI Bank is one of the Big Four banks of India, along with State Bank of
India, Punjab National Bank and HDFC Bankits main competitors.
ICICI Bank is India's second-largest bank with total assets of Rs.3,663.74
billion (US$ 76 billion) at September 30, 2009 and profit after tax Rs.19.18
billion (US$ 398.8 million) for the half year ended September 30, 2009.The
Bank has a network of 1,568 branches and about 4,883 ATMs in India and
presence in 18 countries. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety
of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and
asset management. ICICI Bank's equity shares are listed in India on Bombay
Stock Exchange and the National Stock Exchange of India Limited and its
American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange.
HDFC
HDFC Bank was incorporated in Aug. 1994 and promoted by Housing
Development Finance Corporation Limited (HDFC) India's premier housing
finance company which also enjoys an impeccable track record in India as
well as in international markets. HDFC was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry.
5

HDFC Bank concentrates in four areas -corporate banking, treasury

management, custodial services and retail banking. It has entered the banking
consortia of over 50 corporates for providing working capital finance, trade
services, corporate finance and merchant banking. . HDFC bank has become
the first private sector bank to be authorized by the Central Board of Direct
Taxes (CBDT) as well as the RBI to accept direct taxes, commencing April01
2001. The taxes will be accepted at specified branches of the bank. Also it has
announced a strategic tie-up with a Bangalore-based business solutions software
developer Tally Solutions Pvt (TSPL) for developing and offering products and
services facilitating on-line accounting and banking services to SMEs (Small
and Medium Enterprises).In 2001-02 the bank was listed on the New York
Stock Exchange in the form of ADS. Each ADS represents 3 equity shares.
Consequent to the issue, the paid up capital of the Bank has increased
byRs.37.42 crores.

2.2 HISTORY
ICICI
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly-owned subsidiary. ICICI's shareholding
in ICICI Bank was reduced to 46% through a public offering of shares in India
in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in
fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in1955
at the initiative of the World Bank, the Government of India and representatives
of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing
to Indian businesses. In the 1990s, ICICI transformed its business from a
6

development financial institution offering only project finance to a diversified

financial services group offering a wide variety of products and services, both
directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.
HDFC
HDFC Bank was incorporated in 1994 by Housing Development Finance
Corporation Limited (HDFC), India's largest housing finance company. It was
among the first companies to receive an 'in principle' approval from the Reserve
Bank of India (RBI) to set up a bank in the private sector. The Bank started
operations as a scheduled commercial bank in January 1995 under the RBI's
liberalization policies. Times Bank Limited (owned by Bennett, Coleman & Co.
/ Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first
merger of two private banks in India. Shareholders of Times Bank received 1
share of HDFC Bank for every 5.75 shares of Times Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total
branches to more than 1,000. The amalgamated bank emerged with a base of
about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The
balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

2.3 OJECTIVES, FEATURES, FUNCTIONS AND GOAL

ICICIBroad objectives of the ICICI are:
to assist in the creation, expansion and modernization of private concerns;
to encourage the participation of internal and external capital in the private
concerns;
to encourage private ownership of industrial investment.
7

The functions of the ICICI It provides long-term and medium-term loans in rupees and foreign
currencies.
It participates in the equity capital of the industrial concerns.
It underwrites new issues of shares and debentures.
It guarantees loans raised by private concerns from other sources.
It provides technical, managerial and administrative assistance to industrial
concerns.
The features of ICICIThe important features of the functioning of the ICICI arc as given below:
The financial assistance as provided by the ICICI includes rupee loans,
foreign currency loans, guarantees, underwriting of shares and debentures,
and direct subscription to shares and debentures.
Originally, the ICICI was established to provide financial assistance to
industrial concerns in the private sector. But, recently, its scope has been
widened by including industrial concerns in the public, joint and cooperative
sectors.
ICICI has been providing special attention to financing riskier and nontraditional industries, such as chemicals, petrochemicals, heavy engineering
and metal products. These four categories of industries have accounted for
more than half of the total assistance.
Of late, the ICICI has also been providing assistance to the small scale
industries and the projects in backward areas.
Along with other financial institutions, the ICICI has actively participated in
conducting surveys to examine industrial potential in various states.

HDFCThe ideal way to connect with the core of any company is to understand its
background and objectives. We at HDFC aspire to provide our customers with
unique home loan solutions and make home ownership as easy and simple as
unlocking a door with a key. The strategies are to Increase the return on equity
each year by 1 percentage point in order to maximise shareholder value,
Maintain gross Non-Performing Assets (NPAs) below 1%; Consistently grow
the loan book; improve operational efficiency by consistently bringing down the
cost to income ratio.
Business Objective
Primary objective is to enhance residential housing stock in the country through
the provision of housing finance in a systematic and professional manner, and to
promote home ownership. They aim to increase the flow of resources to the
housing sector by integrating the housing finance sector with the overall
domestic financial markets.
GOALS

Develop close relationships with individual households.

Maintain our position as the premier housing finance institution in the country.

Transform ideas into viable and creative solutions.

To grow through diversification by gaining leverage from our existing client

base.

To nurture the values and ethos of Brand HDFC through all its Subsidiaries and
Associate Companies.

2.4 ORGANISATIONAL STRUCTURE

ICICI BANK

ICICI Banks organization structure is designed to be flexible and customerfocused, while seeking to ensure effective control and supervision and
consistency in standards across the organization and align all are as of
operations to overall organizational objectives. The organization structure is
divided into six principal groups ..
1. Retail Banking-The Retail Banking Group is responsible for products and
services for retail customers and small enterprises including various credit
products, liability products, distribution of third party investment and
insurance products and transaction banking services.
2. Wholesale Banking-The Wholesale Banking Group is responsible for
products and services for large and medium-sized corporate clients,
including credit and treasury products, investment banking, project finance,
structured finance and transaction banking services.
3. International Banking-The International Banking Group is responsible for
its international operations, including operations in various overseas
markets as well as its products and services for non-resident Indians and
its international trade finance and correspondent banking relationships.
4. Rural and Agricultural Banking-The Rural, Micro-Banking & AgriBusiness Group is responsible for envisioning and implementing rural
banking strategy, including agricultural banking and micro-finance.
5. Government Banking The Government Banking Group is responsible
for government banking initiatives.
6. Corporate Center The Corporate Center comprises the internal control
environment functions (including operations, risk management, compliance,
audit and legal); finance ;human resitsces management; and facilities
management & administration.
10

HDFC BANK
The Composition of the Board of Directors of the Bank is governed by the
Companies Act, 1956, the Banking Regulation Act, 1949 and the listing
requirements of the Indian Stock Exchanges where securities issued by the
Bank are listed. The Board has strength of 12 Directors as on March 31, 2008.
All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh
Sukthankar are non-executive directors. The Bank has five independent
directors and seven non-independent directors. The Board consists of eminent
persons with considerable professional expertise and experience in banking,
finance, agriculture, small scale industries and other related fields. None of the
Directors on the Board is a member of more than 10 Committees and Chairman
of more than 5 Committees across all the companies in which he/she is a
Director. All the Directors have made necessary disclosures regarding
Committee positions occupied by them in other companies. Mr. Jagdish Capoor,
Mr. Keki Mistry, Mrs. Renu Karnad, Mr. Vineet Jain, Mr. Aditya Puri, Mr.
Harish Engineer and Mr. Paresh Sukthankar are non-independent Directors on
the Board. Mr. Arvind Pande, Mr. Ashim Samanta, Mr. Gautam Divan, Mr. C.
M. Vasudev and Dr. Pandit Palande are independent directors on the Board. Mr.
Keki Mistry and Mrs. Renu Karnad represent HDFC Limited on the Board of
the Bank. Mr. Vineet Jain represents Bennett, Coleman Group on the Board of
the Bank. The Bank has not entered into any materially significant transactions
during the year, which could have a potential conflict of interest between the
Bank and its promoters, directors, management and/or their relatives, etc. other
than the transactions entered into in the normal course of business. The Senior
Management have made disclosures to the Board confirming that there are no
material, financial and/or commercial transactions between them and the Bank
which could have potential conflict of interest with the Bank at large.

11

2.5 SWOT ANALYSIS

ICICI BANK

STRENGTH:
1) ICICI Prudential is No. 1 private life player in India
2) Innovative insurance policies with rider benefits.
3) Motivation factors provided by the company.
4) one of the largest financial Institution of Indias
5) .Second largest bank with network of 469branchesand 1740 ATM s
across India.
6) A huge database of corporate clients, retail customer, and bank customers
of ICICI & Assets base of ICICI is more than Rs 1,08,000Crores.
7) Training provided to all people associating with ICICI prudential.
8) Highest paid up capital deposited in IRDA, in comparison to all players

WEAKNESS:
1) Very huge premiums of policies, compared to other insurance sector.
2) Minimum premium is 19000.(Except tax saving policy only 10,000)
3) Target upper class people only.
4) Policy charges are very high.
5) Problematic to advisors also.
6) Poor distribution: since it is in English language only.

12

OPPORTUNITIES:
1) Tie up with more corporate agents all over India.
2) Tie up with broker also
3) No. of adopting new technology
4) Strong Brand of Company Helps to boost sales in market
5) Attract more people of providing customer centric products

THREATS:
1) Threat from existing life insurance players
2) Threat from new entrance
3) Threat to substitute products
4) Change in the policy of IRDA
5) Competition from more & more new players
6) People dont aware of different distribution channel

HDFC BANK
STRENGTH
1) First private life insurance company who got license by IRDA .
2) Domestic image of HDFC supported by Standard Lifes international
image is strength of the company.
3) Strong and well spread network of qualified intermediaries and
salesperson.
4) Strong capital and reserve base
5) The company provides customer service of the highest order
6) Huge basket of product range which are suitable to all age and income
groups
13

7) Large pool of technically skilled manpower with in depth knowledge and

understanding of the market.
8) The company also provides innovative products to cater to different needs
of different customers.

WEAKNESS:
1) less number of branches compare to nearest competitors
2) Heavy management expenses and administrative costs.
3) Low customer confidence on the private players.
4) Vertical hierarchical reporting structure with many designations and
cadres leading to power politics at all levels without any exception.
5) Poor retention percentage of tied up agents.
6) Every employee does not have enough knowledge about insurance
products and commission rates

OPPORTUNITIES:
1) Insurable population: According to IRDA only10% of the population is
insured which represents around 30% of the insurable population. This
suggests more than 300m people, with the potential to buy insurance,
remain uninsured.
2) There will be inflow of managerial and financial expertise from the
world s leading insurance markets. Further the burden of educating
consumers will also be shared among many players.
3) International companies will help in building world class expertise in
local market by introducing the best global practice.

14

THREATS:
1) Other private insurance companies also aiming for the same uninsured
population.
2) Big public sector insurance companies like Life Insurance Corporation
(LIC) of India , National Insurance Company Limited, Oriental Insurance
Limited, New India Assurance Company Limited and United India
Insurance Company Limited. People have more trust in these companies.
3) Poaching of customer base by other companies.
4) Most people dont understand the need or are not willing to take
insurance policies in general. People prefer short term investment rather
than insurance.

15

CHAPTER 3: SERVICES PROVIDED BY ICICI AND HDFC

BANK
3.1 ACCOUNTS AND DEPOSITS(1) SAVING ACCOUNT OF ICICI BANKAn ICICI Bank Savings Account offers a valuable banking experience.
Debit-cum-ATM Card - With ICICI Bank Savings Account you will get a
debit card that you can use to withdraw cash from any ATM. One may
also use your debit card to directly make purchases through a
Visa/MasterCard POS (Point of Sale) machine available at most stores!
Money Multiplier Facility - Allow us to take care of your idle money by
moving it into high interest savings account earning.
Internet Banking - Banking could not have been more convenient. Just
log in with your user ID and password and make banking a hassle-free
routine.
Customer Care - 24-hour Customer Care is always available to answer
any query or take your instructions. For Customer Care numbers,
Mobile Banking - Transferring funds or getting to know your balance is
as easy as sending an SMS. For details on Mobile Banking, Standing
Instructions - ICICI Bank accepts and supports Standing Instructions.
Nomination Facility - You may nominate a person as beneficiary to your
account proceeds.
DD Call and Collect - Don't waste even a minute in a queue to collect a
Demand Draft or Pay Order. On the way to the branch, just call Customer
Care, provide details of the DD to be prepared and collect it ready and
signed at the branch.

16

SAVING ACCOUNT IN HDFC BANKFEATURES Wide network of branches and over 7300 ATMs to meet all your banking
needs, no matter where you are located.
Bank conveniently with facilities like Net Banking and Mobile Banking
check your account balance, pay utility bills or stop cheque payments all
via SMS.
Never overspend shop using your International Debit Card that reflects
the actual balance in your savings account.
Personalized cheques with your name printed on each cheque leaf for
enhanced security.
Take advantage of Bill Pay an instant solution so you can pay all your
frequent utility bill payments. Instruct for payments over the phone or
through the Internet.
Avail of facilities like Safe Deposit Lockers, Sweep-In and Super Saver
facilities on your account.
Free cash withdrawals at any other Bank's ATMs
Free Payable-at-Par cheque book, without any usage charges.
Free Insta Alerts for all account holders for lifetime of the account.
Free passbook facility available at home branch for account holders
Free Email Statement facility.

(2) SALARY ACCOUNT

ICICI BANKICICI Bank Salary Account is a benefit-rich payroll account for Employers and
Employees. As an organization, you can opt for our Salary Accounts to enable
easy disbursements of salaries and enjoy numerous other benefits too.
17

With ICICI Bank Salary Accounts your employees will enjoy the convenience
of ---:
Having the largest network of ATMs at their command.
Free 24 hour Phone Banking.
Free Internet Banking.
All one would require to do is to send ICICI Bank an advice (in form of a
cheque/debit instruction, etc) for the total salary amount along with the salary
details of the designated employees in a soft and hard copy format and we will
credit the respective employees' accounts as per your statement of advice.
Besides all of the above, employees will automatically become ICICI Bank
account holders with special benefits and privileges of 8-8 banking, Investment
advisory and much more. ICICI Bank also has a special offering: Defense
Banking Services designed exclusively for the armed forces.
HDFC BANK Zero Balance Savings Account
Free payable at par cheque book @ 25 cheque leaves per quarter
5 Free transactions per month at Non- HDFC Bank ATMs in India
Free for life International Debit Card for the primary applicant with ATM
cash withdrawal limit of Rs 25,000 per day and POS usage limit of Rs.40,
000 per day.
Add-on International debit card for secondary holder (Free for the first
year)
Free Personal Accidental Death Cover of Rs. 1 lakh
Anywhere Banking across our extensive Branch and ATM network
Free Quarterly Account Statements
Free Monthly Account statements by e-mail (Optional)
Free Passbook facility available at home branch for account holders
18

 Free DDs /MCs up to Rs. 25,000 per instrument payable at HDFC Bank
branch locations
Free mobile and e-mail alerts (InstaAlerts Facility)
Free Utility payment facility (Bill Pay)
Free Phone banking, Mobile Banking and Net Banking & Electronic
Funds Transfer options

(3) DREAM DEPOSITS IN ICICI BANKIcici dream for individual, for families, friends and relatives and for society at
large too. Some of dreams are need based, while some inspirational. The dreams
that are close to us; they mean everything.. they all want to nurture them and if
possible secure them so that we can accomplish them under all odds. So be it
our childs education, daughters marriage, owning a home, driving our car or
planning our retirement, it is imperative that we secure them at all costs. To
secure them, you need to plan your finances prudently, based on your needs and
aspirations at different points in time. A plan that gives you the flexibility in
terms of choices that suit your needs and an assurance of a return that is safe
and secure.
CURRENT ACCOUNT IN HDFC BANK
. Get convenient inter-city banking and free cheque payments anywhere.
Free Collections of funds through RTGS and NEFT
Free Payments through NEFT. Nominal charges for RTGS payments
Transfer funds across cities between HDFC Bank accounts at a nominal
charge of Rs.15 per transactions
Issue free Demand Drafts (DD) / Pay Order for values above Rs.100,000.
For Demand Drafts up to Rs.50,000 a charge of Rs.40, Demand Drafts
above Rs.50,000 and below Rs.100,000 a charge of Rs.25 will be levied.
19

 Get a payable-at-par cheque book at a nominal price.

Register for Insta Alerts and receive updates on your account on
processing of your transaction.
Enjoy Doorstep Banking for your convenience and security. Cash and
cheque pick-ups and cash deliveries can be arranged from your doorstep,
through a reputed agency.
Get 24-hour Phone Banking, Net Banking and Mobile Banking to check
your account balance and transaction details, find out the status of your
cheques or stop cheque payments.

(4) FIXED DEPOSIT IN ICICI BANK Flexibility of tenure - 7 days to 10 years

Liquidity

Premature / Partial withdrawal permitted (subject to applicable charges)

Loan / Overdraft upto 90% of FD amount

Option of monthly / quarterly payout available

Competitive interest rate - for various tenures
Convenient ways to open a FD

Internet Banking
Phone banking
ICICI Bank Branch
FIXED ACCOUNT IN HDFC BANKRegular Fixed Deposits offer:
Easy investments with high
returns

20

 Flexibility and security in

one offering
Higher rate of interest on Fixed Deposits for Senior Citizens

(5) RECURRING DEPOSIT IN ICICI BANK ICICI Bank Recurring Deposits are an ideal way to invest small amounts
of money every month and end up with a large kitty on maturity.
High recurring billing and recurring payments can be a drain on your
finances and hence large investments may seem a plan away.
A recurring deposit account with ICICI Bank allows a loan against the
deposit. Our new recurring deposit account also has a special feature Non-applicability of Tax Deduction at Source (TDS).
The minimum balance of deposit is Rs.500 per month and thereafter in
multiples of Rs.100. The tenure ranges from 6 months to a maximum
period of 10 years, recurring deposit of 3 months thereafter.
The recurring deposit also comes with a nomination facility.
RECURRING DEPOSIT IN HDFC BANK
BENEFITS;
An investment as small as Rs 500 (and in multiples of Rs 100 thereafter)
or as large as Rs 14,99,900/- per month
A minimum tenure of 6 months (and in multiples of 3 months thereafter)
up to a maximum tenure of 10 years.
For a much smaller investment per month, get interest rates equal to that
of regular Fixed Deposits.
TDS is not applicable on the Interest earned by Recurring Deposits as per
current income tax rules.

21

(6) YOUNG STARS ACCOUNT IN ICICI BANKYoung Stars is a banking service for children, aged up to 18 years,
brought to you by ICICI Bank to help the parents meet the present and
future aspirations that they hold for their child. It offers various savings
and investment options to the parent along with teaching the child to
manage his/her personal finance in a more responsible and independent
manner. The parent would put forward the desired amount to be earned at
the end of the tenure. The next time you want to withdraw cash from your
ICICI Bank Young Stars Savings account, just walk into any bank's ATM
and use your ICICI Bank ATM-cum-Debit card for free. The benefit is
available to Young star Savings Account holders on maintenance of a
monthly average balance of more than Rs. 10,000 in the savings account
in a month.
SAFE DEPOSIT LOCKERS IN HDFCFeatures
Wide availability of locker locations and sizes
Access to safe-deposit lockers at all branches, no matter where your account
is held.
Lockers are rented for one year, and rent is payable in advance.
Lockers can be hired by individuals, limited companies, associations and trusts.
To use a locker, one should hold a Savings or Current account with HDFC Bank

3.2 LOANS
(1) HOME LOAN IN ICICI BANKBuilding your own home is special. As one of the leading home loan
providers, ICICI Bank Home Loans is here to help you lay the foundation for

22

your dream home. With the experience of sharing the dream of millions of the
customers, they offer most convenient home loan plans to suit your needs.
ADVANTAGES
Wide range of product to choose from

Guidance throughout the process making home buying hassle free

Doorstep service at your comfort

Simple documentation

Sanction approval without having selected a property.

Flexible repayment options

With a network of 2500 branches we are always close to you

Over 900 Bank Branches pan India for servicing of your loans

Free Personal Accident Insurance &

Insurance options for your home loan at attractive premium

HOME LOAN IN HDFC BANKHDFC Bank brings HDFC home loans to doorstep. Over 3 decades of exclusive
experience, a dedicated team of experts and a complete package to meet all
housing finance needs, HDFC Home Loans, help you realize your dream.
The HDFC Advantage

Pioneers of Housing Finance in India with over 33 years of lending experience

Widest range of Home Loan Products

23

Most experienced and empowered personnel to ensure smooth & easy

processing.

Counseling and advisory services for acquiring a property

Loan from any office for purchase of home anywhere in India

Loan approval even before a property is selected

Flexible loan repayment options

Free & safe document storage

(2) CAR LOAN IN ICICI BANKCar Loans from ICICI Bank are extremely convenient, flexible and quick. With
more than 604 channel partners in over 1000 locations, we reach out to millions
of customers and help them realise their dream of possessing a car.
The minimum loan amount for taking a new car loan is Rs. 1,00,000. The
maximum loan amount will depend upon the price of the car, model variant,
profile of the customer, etc.
Car Loans

Repayment tenure ranges from 1 year to 5 years for new car loans. You may
change the tenure of the loan before the loan is disbursed. The interest rate & EMI
would change accordingly. The repayment due dates for the loan are 1st and 15thof
every month and would depend on the date of disbursement. Payment due dates
cannot be changed. One can make the Payments through post-dated cheques
(PDCs). Repayment option through Direct Debit Mandates is also available for all
ICICI Bank account holders. Option of repaying through ECS is also available in
select cities. Payments through cash or credit cards are not accepted. one may
change the PDC's in case your Bank Account is changed . However, we would
require verification of signatures by new banker. A nominal fee of Rs.500/- (Swap
Charges) would be charged for exchange of cheques. A full pre-payment of the
loan is accepted. Part pre-payment is not allowed.

24

CAR LOAN IN HDFC BANKThe vehicle age at the end of Car N Cash Loans tenure should not exceed:
7 Years for Private Usage and
6 Years for Commercial Usage
FEATURES
Borrow up to 100% of the original loan value of the car.
Valuation of the car is not mandatory.
Wide range of approved models/variants and manufacturers are considered.
We make quick and hassle-free disbursals.

(3) PERSONAL LOAN IN ICICI BANK

Key Benefits

Loan up to Rs. 10 Lakhs

No security/guarantor required

Faster processing.

Minimum documentation

Attractive rates of interest

Flexible repayment option of 12-48 months

ICICI Bank may, at its sole discretion, utilise the services of external service
provider/s or agent/s and on such terms as required or necessary, in relation to its
products.Avail of an ICICI Bank Personal Loan if you have an ICICI Bank salary
account and if you meet the following criteria:

25

Criteria*

Salaried

Age

23 yrs. - 58 yrs.

Net Salary

Net monthly income - Rs. 20,000 p.m.

Eligibilty

ICICI bank Salary Account Holder, Existing ICICI

Bank Personal Loan customer

Years in total job /

profession
Years in current
residence

2 Year

1 Year

PERSONAL LOAN IN HDFC BANK

Reason for choosing this product Minimal documentation with super fast disbursal
Flexible repayment in 12-60 months.
No guarant or surety. A guarantor becomes a co-endorser and assumes
liability in event of default. surety / collateral required
Features and Benefits with your HDFC Bank Personal Loan Choose when you can pay back anytime between 12 to 60 months.
You can repay with Easy EMIs at best in class interest rates.
They dont ask for any guarant or surety. A guarantor becomes a coendorser and assumes liability in event of default. Surety or collateral.
They approve loans quickly.
HDFC service will come to your door if you need.

26

(4) VECHILE LOANCOMMERCIAL VECHILE LOAN IN ICICI BANK- ICICI have

extended products like funding of new vehicles, finance on used vehicles, top
up on existing loans, working capital loans & other banking products
ICICI have a range of services on existing loans,as are listed below.
Commercial Vehicle Loans

Reaches you through more than 180 locations across the country

Range of products under one umbrella.

Funding for trucks, buses, tippers, light commercial vehicles and small commercial
vehicles.

Products including funding for new vehicles, finance on used vehicles and top up
on existing loans.

Preferred financier status with all leading manufacturers.

Simple documentation processes.

Quick turn around time.

Flexible financing solutions to meet individual requirements.

2 WHELLER LOAN IN HDFC BANK Flexi-Repay options, ranging from 12-48 months
Hassle free and speedy loans - No guarantor surety. A guarantor becomes
a co-endorser and assumes liability in event of default. required
Get special schemes for Harley Davidson Motorcycles.
FEATURES
Get flexible repayment options, ranging from 12 to 48 months available
even at the point of purchase.
Repay through post-dated cheques with easy EMIs.

27

 Calculate your EMI.

Get hassle free loans
No need for a guarantor surety. A guarantor becomes a co-endorser and
assumes liability in event of default..
Get a speedy loan approval.
We provide loans for almost all models at attractive interest rates.
Get free gifts from time to time on approval of your Two Wheeler Loan.
(Watch this space for more details on the free gift promotion).

(5) LOAN AGAINST SECURITY IN ICICI BANKYou dont have to sell your securities. All you have to do is pledge your
securities in favour of ICICI Bank. They will then grant you an overdraft
facility up to a value determined on the basis of the securities pledged by you. A
current account will be opened and you can withdraw money as and when you
require. Interest will be charged only on the amount withdrawn and for the time
span utilized.
This facility is available against the following securities

Demat Shares

Mutual Funds Units

Fixed Maturity Plans (FMP)

Exchange Traded Funds (ETF)

Insurance Policies

Savings Bonds

NSC/KVP (Demat form)

28

LOAN AGAINST SECURITY IN HDFC BANKBenefits

Use your investments to get liquidity, without selling them.

Get upto 80% loan against the value of your securities. Term loans on select
securities offered too!

You will have to pay interest only when you actually use the loan.

The securities that you may decide to pledge must be one of the following:
Equity Shares.
Mutual Funds (Equity, Debt, FMPs) upto 50% of NAV (Net Asset
Value).
Gold ETF
Gold Deposit Certificates (GDC)
RBI Bonds - 8% Savings Bonds 2003 (Taxable)
Life Insurance Policies issued by LIC and select Private Insurance
Companies.

National Savings Certificates (NSC)

Kisan Vikas Patra (KVP)

NABARD's Bhavishya Nirman Bonds
Non Convertible Debentures

3.3 CARDS
(1) DEBIT CARD
A bank debit card is issued by the bank in the process of opening up of an
account. It can be also called an electronic check as funds withdrawn are drawn
directly from the account. The use of debit card has become popular all over the
world and has taken form of voluminous transactions. Debit cards are also used
for withdrawing money from the ATM. These days the banks have tied up with
29

banks functioning all across and usually all debit cards can be used at all ATMs
barring the debit cards issued by nationalized banks.
ICICI BANK DEBIT CARD
The ICICI bank debit card is available to all account holders of ICICI bank.
ICICI bank debit card comes to the account holder with the welcome package
received by the customer. It is used by the account holders at all ICICI ATMs
and all other ATMs which have a tie up with ICICI bank.
Features
1) ICICI bank debit card is used by the customer for the purpose of withdrawal
of money.
2) The customer can check for the balance in the account.
3) The customer can also use it for the purpose of withdrawing a mini
statement.
4) The debit card is very convenient to use these days at merchant
establishments for the purpose of dining, shopping and also for the purpose
of paying petrol bills or at multiplexes.
5) Online shopping is another facility available with the debit cards. Airline
tickets, movie tickets, and bill payments are at the customer convenience as
it can be done from home or from office through the debit card. To ensure
that all payments are safe the customer has to enter the internet banking id
and password for the completion of the transaction.
6) There is a very high acceptance of the ICICI debit card due to very high
customer base. The ICICI debit card is accepted at 3.5 lakh merchant
establishments and 3000 ATMs all over India.
There are seven kinds of ICICI Bank Debit Card.
a. ICICI Bank Signature Debit Card
b. ICICI Bank Platinum Debit Card
30

c. ICICI Bank Titanium Debit Card

d. ICICI Bank Woman's Debit Card
e. ICICI Bank Smart Shopper Gold Debit Card
f. ICICI Bank Smart Shopper Silver Debit Card
g. ICICI Bank HPCL Debit Card
In case of loss of card the ICICI bank provides protection from any purchases
made on lost card after the intimation has been given to the bank. The bank
provides a 24 hour helpline number to help customers in case of need.

HDFC BANK- DEBIT CARD

There are seven HDFC debit cards afloat in the market right now.
1) Easy shop International Debit card
The daily limit on the card is Rs. 15, 000 at ATMs and 25, 000 at merchant
establishments.
The bank can be accessed at Maestro/Visa/Cirrus ATMs which totals to 8,
00, 000 establishments.
2) Easy shop gold debit card
The daily withdrawable balance at any ATM is Rs. 50, 000 and purchase
limit is of Rs. 50, 000.
There is a cash back facility available on the card which is valid all through
the year.
3) Easy shop pro gold debit card
The daily withdrawable cash balance is Rs. 50, 000 from ATMs.
The shopping limit at merchant establishment is Rs. 50, 000.
4) Easy shop International Debit Card
The ATM withdrawable limit is Rs. 50, 000. The shopping limit is

31

Rs.50,000. Easy shop international debit card is basically a shopping card.

For every Rs. 200 spent there is a cash back policy of Rs. 1 as cash back.
5) Easy shop Womans Advantage Debit Card.
The ATM withdrawable limit is Rs. 20, 000. The shopping limit is
Rs. 30, 000.
6) Easy shop NRO debit Card
The ATM withdrawable limit is Rs. 15, 000. The shopping limit is
Rs. 25, 000.
7) Kisan Gold card
It is meant to meet the investment and production needs of the farming
community. The ATM withdrawable limit is Rs. 15, 000. The shopping limit
is Rs. 25, 000.

(2) CREDIT CARDS

ICICI CREDIT CARDICICI credit cards are rated as a top most credit card providing company among
all over India. The ICICI bank offers a plethora of credit cards complying with
the varied requirements and needs of the diverse segment of audiences in India.
The bank at present encompasses largest international balance-sheet among
other Indian banks with widespread horizons in the foreign market. The bank, at
present holds fully owned branches, representative offices and subsidiaries in
almost 18 countries.
The Bank provides more than 50 ICICI credit card option all over India, which
include:
Platinum Card: ICICI platinum card offers various top most facilities to its
cardholders, which comprise high cash or credit limit and up to Rs. 1 crore
insurance for air accidents, to name a few.
32

 Titanium Credit Card: This ICICI bank credit card offers international
lifestyle, around 25 percent discount in the major citys best restaurants and
entrance to the Oberoi lounges transversely various international or domestic
airports.
Visa Signature Credit card: This ICICI credit card basically caters to the
business class people. The features it offers are around Rs 3 crores insurance
for the air accidents and special facilities related to the travel.
HDFC CREDIT CARD Visa Signature Credit Card-A card for the rarest of the rare A card with
unique and exclusive privileges that complement your refinement and style.
Come experience the world of many contended moments.
World MasterCard-HDFC Bank presents India's First World MasterCard
Credit Card - A very premium offering for the truly elite, a card with tailormade premium privileges that complement a discerning lifestyle.
Platinum Plus Credit Card-India's only Platinum Credit Card with
exclusive travel and preferential benefits - a recognition of those who have
"arrived in life". Enjoy a world of exclusive privileges on your HDFC Bank
Platinum Plus Credit Card.
Platinum Plus Chip Credit Card-India's only Platinum Credit Card with
Chip Technology for enhanced security which makes all your Credit Card
transactions more secure, convenient and rewarding!
Titanium Card: A card to match your premium lifestyleTitanium Credit
Card is quite simply the most exclusive Credit card you could ask for with
benefits like zero surcharge on fuel, travel offers and accelerated two-tier
rewards programme.
Gold Credit Card-A card to match your premium lifestyle with features
like special offers on air and train ticketing and rewards redemption against
air miles.
33

 Woman's Gold Card-the benefits of the best premium card made

specifically for women. Apply for HDFC Bank Woman's Gold credit card.
Corporate Platinum Credit Card-It's Not just a card, It's a designation
Experience the exclusivity of HDFC Bank Corporate Platinum Card which
comes with a unique 24x7 Expense management solution called SMART
DATA ONLINE, powered by Mastercard International.
Corporate Credit Card-It's Not just a card, It's a designation. HDFC Bank
Corporate card comes with a unique 24x7 Expense management solution
called SMART DATA ONLINE, powered by Mastercard International.
Business Gold Credit Card- Business with HDFC Bank International
Business Gold card, which is designed to add value to your business, while
keeping in mind the conveniences and lifestyle benefits for business owners
and the self-employed community specifically.
Purchase Card-The HDFC Bank Purchase Card is a credit card solution
given to corporates by HDFC Bank to facilitate quick payments for business
expenses for corporates and their employees. It helps the corporate manage
business expenses and makes purchase transactions smoother by eliminating
the hassles of cash and cheque payments.

(3) PREPAID CARDSPrepaid card is a common terminology used between banks and mobile service
providers. A web definition of prepaid card is a card that will work exactly like
a credit card, except that money must be deposited in it first for it to have any
credit in the account.
ICICI Bank:
ICICI Bank is offering a complete range of prepaid cards providing payment
solutions at fingertips of the customer. ICICI Bank prepaid cards are a safe &
34

convenient way for associate payments, disbursements, gifting & small ticket
transactions. Prepaid cards are available on a VISA platform thus providing
accessibility to over one lakh merchant establishments & cash withdrawal from
all VISA ATMs in India.

HDFC Bank
HDFC Bank is offering different prepaid cards for different uses.
Forex plus card For secure and hassle free travelling experience.
Gift plus card For the freedom to buy the gift of their choice.
Food plus Card- For cumbersome meal vouchers.
Money plus Card For cash disbursements and administrative hassles.

3.4 INVESTMENTS
(1) MUTUAL FUNDSICICI
ICICI bank provides ICICI mutual funds. The complete name of the mutual
fund is ICICI Prudential mutual fund. There are various kinds of schemes
available with the ICICI mutual funds and there are certain advantages as well.
Advantages:
The ICICI mutual funds are managed by professional fund managers who
monitor the market very closely.
The mutual funds of the bank have a diverse portfolio of the stocks and
equities which results in the minimization of the risk.
The ICICI mutual funds provide consistent investment due to features like
dematerialized account statements, availability of NAV, easy subscription and
35

redemption processes, performance details through journals etc.

Provides huge liquidity with open-ended funds. Funds can be redeemed on
demand and is helpful during conditions of falling market.
The ICICI mutual funds also provide various tax advantages. It provides tax
free dividends and capital investments over a period of one year are also treated
a tax free.
As there is a huge pool of money, large volumes of securities, stocks and
bonds as well as equities are bought at a time leading to cost reduction.
HDFC MUTUAL FUND
To invest funds in debt markets or in equity from a pool of money of several
people is called Mutual Fund. The HDFC bank offers HDFC Mutual
Fund which is one of the known Indian Mutual Funds. The Debt funds,
balanced funds or Equity funds come under Mutual Funds. There are parameters
which are quantitative based on which the funds are selected. The volatility, risk
adjustment returns, FAMA model, rolling return, qualitative analysis, fund
performance are some of the important parameters based on which the funds are
selected.
Advantages
There are many advantages in investing HDFC mutual funds. The following are
some of the advantages,
Affordability The HDFC mutual funds are available in smaller units which
make it more affordable.
Flexibility The HDFC mutual fund offers systematic withdrawal plans,
dividend reinvestment, systematic investment plans which give more
flexibility.
Liquidity The HDFC mutual fund offers open ended schemes in which you
can withdraw the money at any point of time.
36

 Professional Management Based on extensive research and experience the

expert fund managers analyze the options in HDFC mutual funds.
Diversification The risk factor is low in HDFC mutual funds as the
investment is done across different stocks and industries.
Low Costs The custodial fee, brokerage charges are low for HDFC mutual
funds.
Potential Return The HDFC mutual fund managers have access to statistics
and information from leading analysts and economists around the world.
Because of this, the investors of HDFC mutual funds gain potential returns.
Regulated for Investor Protection The HDFC mutual fund sector is
regulated to protect the interests of investors.

(2) INITIAL PUBLIC OFFERING APPLICATION THROUGH ASBAICICI- IPO

Invest in IPOs Online
One can invest in IPOs online through www.icicidirect.com with same
convenience of investing in equities - hassle-free and with zero paper work.
Also, get in-depth analyses of new IPOs issues (Initial Public Offerings) which
are about to hit the market. IPO calendar, recent IPO listings, prospectus/offer
documents and live prices will help you keep on top of the IPO markets.
HDFC-IPO THROUGH ASBAABOUT THIS PRODUCT The amount remains blocked in your bank account for the IPO application.
Earn interest on the earmarked funds.
The amount is debited only when the shares are allotted to you.
No need to wait for your refund cheques/ ECS credits.
37

 This facility is absolutely FREE.

To keep up with Indias growth story, a large number of companies look to tap
the primary markets to raise capital through Initial Public Offerings (IPO's). As
most IPO's are oversubscribed, the shares allotted to you are far less than what
you apply for. In the process, not only you run out of cheque leaves but the
balance in your bank account also takes a dip. However, the IPO Application
through ASBA is an investor-friendly way to apply for any IPO. The ASBA
(Application Supported by Blocked Amount) is an interface which ensures that
your funds leave your bank account only when you are allotted shares in public
issues. Within this period, you will continue to earn interest on your savings
account.
(3) PURE GOLDICICI --Reliability- 24 Carat ICICI Bank Pure Gold is imported from
Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest
level of purity, as per international standards.
Convenience- ICICI Bank Pure Gold is competitively priced based on daily
prices in the international bullion market. Currently, gold is available in 0.5g,
1g, 2.5g, 5g, 8g, 20g and 50g categories, subsequently other denominations will
also be introduced. ICICI Bank Pure Gold is available through select branches
of ICICI Bank and internet banking. It is not available through ICICI Bank
ATM's
Some interesting aspects of ICICI Bank Pure Gold offer:

It is available in tamper proof packaging that can be customised as per your

requirement.

It is accompanied by 'ASSAY Certification' indicating the highest level of purity as

per international standards.
38

It is available throughout the year.

ICICI Bank Pure Gold can be purchased using the following modes of
payment:
Cash, Credit card, Debit instruction to your account, ICICI Bank cheque, NonICICI Bank cheque, ICICI Bank Net Banking
HDFC -INVEST IN GOLD
Mudra Pure Gold Bars are competitively priced based on the daily prices in the
international bullion market (a place where all precious metals like gold, silver,
platinum, etc are bought and sold). The price is inclusive of customs duty and
other charges involved in the retailing of gold bars.
24 Carat, 99.99% pure gold bars
Assay Certification
Convenience: 2.5g, 5g, 8g, 10g, 20g ,50g & 100g
Tamper-proof certicard packs.
Competitively priced based on the daily gold prices
Available at over 1700 HDFC Bank branches across 700 cities.

(4) BODNS
(i)

ICICI BANK BONDS-

Bonds of ICICI Bank have been rated "AAA" by CARE and "LAAA" by ICRA
indicating the highest degree of safety for your money.
All Investment in ICICI Bank Tax Saving Bonds issued upto March 2005
are eligible for tax rebate under Sec 88 to the full extent possible.
Bonds are listed on BSE, NSE.

39

(ii)

GOVERNMENT OF INDIA BONDS-

ICICI Bank Tax Saving Bonds Investment.

Low Risk Bonds.

Reasonable investment tenure.

Nomination facility available.

Cannot be traded in secondary market.

Interest income taxable.

HDFC 8% SAVING BONDSFEATURES Minimum investment of Rs.1,000 and no maximum limit on investment
6 years tenure of the bond from the date of issue
Choose from Half Yearly Payable interest and Cumulative interest
8%p.a. rate of interest
No income tax exemption available
However, the bonds will be exempt from Wealth-Tax under the WealthTax Act, 1957.

(5) FOREX SERVICES IN ICICIICICI Bank's Foreign Exchange Services will help you organise your foreign
exchange in the most hassle free manner with best foreign exchange rates.
Whether its Foreign Currency, Travellers Cheques or Travel Card, ICICI Bank
Foreign Exchange Services is a one-stop solution to your foreign exchange
requirement. Foreign Exchange Services offers a variety of foreign exchange
products like: ICICI Bank Travel ,CardTravellers Cheques (American
Express), Foreign Currencies.

40

HDFC INVEST IN SILVERFEATURES AND BENEFITS 24 Carat pure silver bars

Assay Certification
Convenient 50g and 100g denominations
Tamper-proof certicard packs.
Competitively priced based on the daily silver prices
Available at over 380 HDFC Bank branches across 51 cities.

(6) SENIOR CITIZEN SAVING SCHEME IN ICICISenior Citizens Savings Scheme (SCSS) is a Government of India Product. 9%
interest offered to depositors. Since the product is offered by Govt of India, this
product is one of the most Safest Investment Option. Premature closure of account
is possible after one year from the date of opening the account.(Charges
applicable).
Advantages of Opening an SCSS Account with ICICI Bank:

Large number of Branches.

Facility of Direct Credit of Interest to ICICI Bank Account.

In case the investor does not want to avail Direct Credit facility or ECS facility, 4
Post Dated Cheques will be sent to Investor every year.

Account Statement containing the details of Deposit Balance & transactions.

Phone Banking Facility (for Queries).

HDFC CAPITAL GAIN BONDS-Maximum investment limit of up to Rs. 50
Lakhs in a Financial Year across the two available Bonds. 6% interest per annum.
100% risk free payment.
41

Bond

RECL

NHAI

Coupon/Interest rate/Yield

6%

6%

Rating

AAA

AAA

Post Tax Return(30% Tax Slab)

4.13%

4.13%

Tax Status

Taxable

Taxable

Tax Benefit

SEC 54 EC

SEC 54 EC

Minimum (Rs.)

10,000

10,000

Maximum (Rs.)

50 Lakhs in a Financial Year

50 Lakhs in a Financial Year

across RECL & NHAI

across RECL & NHAI

Tenor

3 Years

3 Years

Interest Date

30th June

N.A.

Put/Call/Premature Encashment

Bullet repayment at the time

Bullet repayment at the time

of Maturity

of Maturity

Mode Of Interest

Annual

Annual

Other Features

The new Issue is on tap &

would close by March2012

(7) HOME FINANCE IN ICICIEligible entities as depositors

Resident Indians

NRIs

Association of Persons (AOPs)

Hindu Undivided Family (HUFs)

42

Trusts and Foundations

Co-operative Societies

Firms

Companies
EQUITIES & DERIVATIVES IN HDFC BANK
Seamless Transactions: With an integrated 4:1 account there is seamless
movement of funds and shares, thereby giving a client ability to take prompt
action
Multiple trading platforms: Transact with utmost convinience using a
choice of platforms - Internet, Mobile, LITS (Low bandwidth site), Branches
or Call N trade in regional languages.
Powerful Tools: Based on Web 2.0 and Ajax based technology, the portal
offers the ability to Personalise, Manage, Customise and Share. Ingenious
tools like Advanced Portfolio Tracker, Watchlists, Stock Alerts, Calculators,
Stock Screeners, Interactive charting, Technical Analysis etc and much more
are a popular draw with our discerning clients.
Trusted Research: Insightful research assistance & technical views
facilitates ones ability to take an informed trading decision. Independent
Retail Research team provides a host of reports that a client could avail of in
his/her course of transactions.
Safety and Security: HDFC securities offer the highest level of security
with a 128-bit encryption technology.

3.5 INSURANCE
(1) LIFE INSURANCEICICI --ICICI Life Insurance or ICICI Prudential life insurance is a joint
venture of ICICI bank and the prudential plc which is involved in the life
43

insurance business in India. After LIC this life insurance secures the second
position among the largest insurances in India. It is one of the largest private
insurance companies. ICICI bank is a premier financial powerhouse whereas;
prudential plc is one of the leading international financial service groups with its
headquarters being located at United Kingdom.
The total asset that was held over by the company during 30th April 2008 is
about Rs. 30000 crore. ICICI Life Insurance was the only private life insurance
company that has received the National Insurer Financial Strength rate of AAA
according to Fitch ratings. This evidently proves that ICICI Life insurance has
the ability to meet its target towards the customers at the time of Maturity or
Claims. This has ranged itself with numerous products in order to meet the
various requirements of an Indian Customer during his/her life stage.Thus
depending on the present life stage and the requirements regarding the
insurance, plans under ICICI life insurance can be divided in to the following
four types. They are
Education Insurance plans,
Wealth creation plans,
Premium Guarantee plans, and
Protection plans.
HDFC STANDARD LIFE INSURANCEHDFC Standard Life Insurance Company is one among the leading private
insurance companies in India. Wide range of individual as well as group
insurance schemes is offered by this insurance company. This company is a
joint venture of Housing Development Finance Corporation (HDFC)
limited and the Group Company of the standard life in United Kingdom.
HDFC is one of the top housing finance institutions in India. The percentage of
equity held by HDFC stood up to 72.38% as on 31st December 2007.
44

Since HDFC Standard Life Insurance is a joint venture company, it has a very
good financial expertise that is required for the management of the long term
investments of the policy holder in a safe and efficient manner. There are
various solutions for both individual as well as group that can be customized
easily according to the requirements. A complete flexibility along with the low
charging structure is offered under group solutions of this life insurance
company.
The track record of HDFC Standard Life Insurance is as follows. The gross
premium income according to 31st march 2008 was about Rs.4859 crores and
the premium income of new business was about Rs.2685 crores. Over 9, 59,000
lives were covered under the various insurance plans of this insurance company
by the end of 31st march 2008.
The various plans under the Protection plans of HDFC Standard Life Insurance:
i) HDFC Term Assurance plan,
ii) HDFC Loan cover term assurance plan and
iii) HDFC home loan protection plan.
These helps are actually launched to ensure of the financial independence of the
family in case of any unfortunate death or critical illnes
(2) HEALTH INSURANCEHEALTH INSURANCE IN ICICIThe ICICI Lombard Group Health Insurance is an insurance cover to a group
with some common qualities. The group may be of the employees or the
companies, members of any association or club or any co operative society.
There are certain employers which provide the medical insurance to their staffs.
The ICICI Lombard Group Health Insurance has certain beneficiary features
such as:
45

 The premiums paid under groups insurance are less than a standard single
personal insurance policy.
The discounts offered on this type of group insurance depend on the size of the
group.
The group insurance is a fast and effective means to extend cover against risks
to a large mass of population.
These types of groups insurance are tools to cross sell the different products to
different members of the group.
The products of such insurance can be customized according to the size of the
group.
The group insurances are flexible and render more benefits.
Certain additional benefits are also available on loading of extra premium
charges.
HDFC HEALTH INSURANCE
HDFC ERGO, one of the leading general insurance companies in the private
sector has come up with Health Suraksha Policy. This policy has been designed
to offer optimum insurance coverage for medical treatment. This policy covers
all the pre and post hospitalization costs at a premium that is very affordable.
The main features of the policy are as follows:
a. This policy offers superb health coverage at an affordable fee.
b. Individual and group health insurance policies are also available.
c. This is one such policy that also offers bonus to the insured for every claim
made in a single year.

46

d. This policy even offers coverage regarding the cost that is incurred during
health check-up.
e. The policy holders are eligible to avail cashless claim service in the country
in more then 4200 medical centers. This shows that the company has made a
strong network of some renowned hospitals so as to help the insured to get
adequate health care.
f. The holders of HDFC ERGO Health Suraksha policy are eligible to income
tax rebate under section 80D of the Indian Income Tax Act.
g. All the claim procedures are easy and the documentation job is also very
less in this policy.
(3) TRAVEL INSURANCEICICI
The ICICI Lombard Individual Overseas Travel Insurance is a comprehensive
travel insurance policy which covers the unexpected medical and non medical
expenses when the insurance holder is travelling abroad. It also covers the
benefits like loss or delay of baggage or cashless hospitalization all over the
world.
The key benefits of ICICI Lombard Individual Overseas Travel Insurance are:
It includes cashless hospitalization facility all around the world.
It also makes the customers avail quality health care through their
collaboration with the United Health Care Group.
No medical checkup is required along with this insurance.
This insurance policy also covers the medical emigration costs back to India.

47

 The eligibility of ICICI Lombard Individual Overseas Travel Insurance is

from 1 year to 70 years.
The policy duration is that it covers short trips of 7 days to 180 days and can
even be extended.
The maximum policy is US $ 50,000 to US $ 100,000.
The premium of this policy is payable on per day basis but not in slabs. The
EMIs can be paid without any extra charge on ICICI Bank, HDFC bank,
Citibank credit cards.
There is a sum of money to be deducted or Policy Excess of US $ 100. This
means for any claim the first $100 are to be submitted by the insured.
The additional coverage of this insurance policy includes dental treatment,
medical evacuation, repatriation, baggage, interruption, trip cancellation etc.
HDFC TRAVEL INSURANCEThe HDFC ERGO Travel Insurance renders the customer and his or her family
with medical, financial and other assistance during any emergency or outward
circumstances while going for an international trip. The ravel insurance is
applicable for all like, business traveler; leisure traveler etc. with this insurance
the traveler is safe as it not only takes care of the traveler but also of the
baggage, passport, medical emergency etc.
The main features of HDFC Travel Insurance are:
The policy is available for all ages starting from 3 months age to 70 years
age.
The entry ages for the policy are - Single Trip: 6 months to 70 years, Annual
Multi Trip: 18 years to 70 years , Family Floater: 3 months to 60 years and
Single Trip Asia Excluding Japan: 6 months to 70 years.
48

 In this policy the travel plan provide to cover the travel trips short of 4 days
to a longer one.
To get this policy the applicant will not have to go through any medical
examination.
The travel assistance even on international travels is assured for 24*7.
Low cost optimum coverage charges are available in this policy.
In this policy the option of online purchase is also available.
(4) HOME INSURANCE--ICICI HOME INSURANCEA home is a place, which provides you the warmth and peace that one looks
forward to at the end of a hard day's work. However, our home can also be
threatened with burglary, damages caused by natural and man-made disasters.
To secure your home of any threat, it offers you Home Insurance Policy, which
will provide security to the structure and/or contents of your home against
unforeseen calamities.
SOME KEY BENEFITS ARE AS FOLLOWS

Comprehensive cover available, which covers both structure and / or

contents of your home

Coverage up to 5 years for contents and 10 years for structure

Cover against Fire and allied perils, Burglary & Theft and Optional cover
for Terrorism and Additional expenses of rent for alternative
accommodation

Buy Online through ICICI Bank Credit card and pay in installments
without any extra charges.

49

HDFC HOME INSURANCEFEATURES

Complete Protection: Avail of protection for both your home and its
contents

Optional cover:

Along with extensive coverage, a low cost optional

cover for burglary, including theft and larceny is also offered.

Premium discounts: One can avail of a premium discount 15% for

security features at your home

Minimum Documentations: Minimum & uncomplicated documentation

required for this policy.
(5)MOTOR INSURANCE-

(i) ICICI CAR INSURANCEA comprehensive Car Insurance policy for your car that keeps it secure against
damage caused by natural and man-made calamities, including acts of terrorism.
Avail of Own Damage, Personal Accident and Liability cover all in one policy.
Car Insurance in India is governed by the India Motor Tariff, so the coverage
for your vehicle would be the same no matter which company you would buy it
from. Moreover, Car Insurance is mandatory and needs to be renewed every
year. So choose the best car insurance company in India.
KEY BENEFITS

A digitally signed policy is issued immediately through our online

facility.

Access to over 2700+ network garages for cashless claims servicing

across India.

Optional Personal Accident cover of up to Rs.2 Lakhs for co-passengers.

Doorstep surveyor facility to cover your car with a break-in insurance.

50

Avail NCB on renewals if no claim is made during the previous policy

period.

Towing charges up to Rs.1,500 in case of accidental damage (as per the

policy terms and conditions).

Transfer all No Claim Bonus (NCB) benefits when shifting your motor
insurance policy to ICICI Lombard GIC Ltd.*

5% discount for recognised Automobile Associations Membership.

2.5% discount for ARAI approved anti theft device in your vehicle.

Avail add-on covers for items such as fog lights, music system and seat
covers.

Buy Online and pay in installments without any extra charge.

(ii) ICICI TWO WHEELER INSURANCE-

A comprehensive Two Wheeler Insurance policy for your two-wheeler that

keeps it secure against damage caused by natural and man-made calamities,
including acts of terrorism. Avail of Own Damage, Personal Accident and
Liability cover all in one policy.
KEY BENEFITS

A digitally signed policy is issued immediately through our online

facility.

Access to over 2700+ network garages for cashless claims servicing

across India.

Optional Personal Accident cover for co-passengers

Avail NCB on renewals if no claim is made during the previous policy

period.

Transfer all No Claim Bonus (NCB) benefits when shifting your motor
insurance policy to ICICI Lombard.*

5% discount for recognised Automobile Association's Members

2.5% discount for ARAI approved anti theft device in your vehicle.
51

Avail add-on covers for electrical and non-electrical items.

Buy Online and pay in installments without any extra charges.

(i)

HDFC COMMERCIAL VECHILE INSURANCE

Protecting and maintaining commercial vehicles is critical to ensure that daily

operations within your business run smoothly. The insurance policy provides
coverage for any accidental losses or legal liabilities involving your commercial
vehicles. Here are some of the features of the policy:

Large network: Cashless Claim Service over 1600+ authorized network of

garages across India.

Emergency assistance: This policy also provides services such as towing,

ambulance, claims assistance should your commercial vehicle undergo any
severe accident.

Types of vehicles covered: HDFC ERGO provides covers to various classes

of commercial vehicles such as goods carrying vehicles - both private and
public carriers, trailers, passenger carrying vehicles, miscellaneous & special
types of vehicles.

Customer support: Avail of comprehensive customer support through the

HDFC ERGOs 24x7 toll free helpline number, along with a simple claims
procedure.
(ii)

PRIVATE CAR INSURANCE-

Secure your prized vehicles with the HDFC ERGO Private Car Insurance
Package Policy. You can avail a host of discounts and cashless claims. Here are
some of the features of the policy:

Cashless Claim Service: Cashless Claim Service over 1600+ authorized

network of garages across India.

52

Discounts: Benefit from a range of discounts offered on the HDFC

ERGO Private Cars Insurance policy, such as Automobile Association
Discount and discounts based on age and profession.

Online convenience: Take maximum advantage

of buying and renewing the policy online.

3.6 DEMAT ACCOUNT

ICICI ICICI bank provides demat account for its customers those who are willing to
take part in the Indian stock market by investing there. The bank features a wide
range of demat facilities of which the ICICI demat account is the initial part.
Besides this ICICI demat account also facilitates some other features like:
Transaction statement Counter party, transaction type, specific date range.
Bill details.
ISIN look up Information on the face value and the status value of the ISIN.
Settlement calendar- Information regarding pay in and pay out date.
Status on request.
Customer ledger.
E-instructions.
Mobile alerts.
TIFD and IDT booklets on request.
Personal details Clients name and address holders name, account type and
details.
No charges for opening DP required.
HDFCThe HDFC bank has over eight lakh demat accounts across India. HDFC Demat
offers you convenient and secure services to manage your investments and
53

securities. The HDFC demat offers you paperless services as the physical
documents may lose or damaged over time. The HDFC Demat account allows
you to make hassle free transactions online. There are different types of HDFC
demat accounts such as Individual demat account, joint demat account and
corporate demat accounts.
Benefits
The HDFC Demat has the following benefits,
Transfer of securities does not have any stamp duty.
Market lots concept does not exist
The refunds from Public Issue are automatically credited to your account.
Your liquidity is enhanced by shorter settlements.
All the transaction details are communicated through email
All the holding details can be viewed online at any time
Change of signature or address can be made through online easily
Off market transactions and traded securities are settled

3.7 WEALTH MANAGEMENT

ICICI
An ICICI Bank Wealth Management service has helped a large number of
customers to manage their funds more efficiently. If you need some wealth
management help then the professionals of this reputed bank can work with you
to develop the best available wealth management portfolio. The bank further
offers a wide array of wealth management products and solutions that enables
the customers to fulfill their financial requirements. These products and services
are aimed to provide immediate results. Being a unique customer of ICICI Bank
wealth management, one can enjoy a special banking experience and feel a
54

sense of privilege.
ICICI Bank wealth management solutions include fast access to ATMs, Money
Multiplier services, investment planning, portfolio construction and a range of
other privileges. The investment process of the bank begins with understanding
of the customers. The wealth management professionals of the bank make a
thorough study of the financial background of the customers, risk tolerance,
existing investment pattern and investment objectives to make the best
approach. Moreover, they make an extensive risk profiling exercise that helps
them to evaluate the risk appetite and get a better understanding of their
investment objectives.
HDFC
The wealth management programme will cater to individual needs taking into
account various factors such as customer's age, financial goals and risk profile.
The investment options offered include equity, mutual funds and debt
instruments such as RBI Relief Bonds and government securities. Said Aditya
Puri, managing director, HDFC Bank: "The extension of this programme to a
wider base of customers fits in perfectly with our objective of providing value
by making exclusive services more accessible."
The basic product under the new offering for customers includes a net-based
product which will track a portfolio for any amount for an annual fee of Rs
10,000. The bank has also launched an SMS-based product, which would not
track any portfolio, but offer customers daily market news related to both equity
and debt.They were also entitled to preferential treatment, with regard to the
bank's various products. This was in the form of better rates for products such as
loan against shares or mutual funds. They were also entitled to better deals on
products of HDFC group companies such as housing loans from HDFC or
equity broking services from HDFC Securities.

55

CHAPTER 4: COMPARASION
4.1 DIFFERENCE BETWEEN HDFC AND ICICI

a) HDFC designs its products for a niche market while ICICI markets to all
customers.
b) HDFC has enjoyed the highest growth rate of banks in India at 30% pa
whereas ICICIs growth varies over the years.
c) The PE ratio for HDFC (19%) is higher than that of ICICI (11 %.).
d) ICICI more branches and ATM over the country than does HDFC making it
more accessible to clients.
e) Both banks differ in their selected ways of raising equity.
f) ICICI has an internet banking platform that is by far superior to that of
HDFC.
g) HDFCs NPA is 0.2% while ICICI has NPAs at 2.7% for advances.

4.2 HDFC Bank vs. ICICI Bank: Indian Banks Compared

HDFC and ICICI are major financial and banking services organizations in
India. HDFC stands for Housing Development Finance Corporation and ICICI
is the Industrial Credit and Investment Corporation of India. It was in the 1990s
that the government of India decided upon a policy of liberalization under the
leadership of Narsimha Rao. This policy allowed private banks to become
established in India although small in number. The first among these banks was
Global Trust Bank after which various others like Axis Bank, HDFC Bank and
ICICI Bank emerged. This gave a boost to the banking sector in
India..

56

ICICI Bank
ICICI is the largest private sector bank and 2nd largest bank overall in India. It
was formerly known as Industrial Credit and Investment Corporation of India.
The bank has its presence all over India and even abroad (Present in 18
countries) with more than 2000 branches and over 5000 ATMs. It provides a
host of banking services to both corporate and retail customers apart from being
fairly successful in life insurance (ICICI Prudential), venture capital (ICICI
Direct) and asset management. It is the largest home loan provider in the
country. ICICI ranks number one in providing credit cards in India. ICICI has a
strong presence overseas and has offices in 19 countries. ICICI has been
notorious in employing goons for recovering its loans from defaulters and has
been pulled by different courts and consumer forums in this regard.
As far as differences between the two banks are concerned, both are equally
popular employing cutting edge technologies though ICICI seems to be ahead in
aggressive branding having Amitabh Bachchan as its brand ambassador.

HDFC Bank Ltd.

HDFC was among the first private sector banks set up in India after RBI
allowed their establishment in 1994. It was promoted by Housing Development
Corporation of India, and is still known as HDFC Bank. It was founded by Bibu
Verghese and its headquarters are in Mumbai. As of 2010, its operating incomes
were $958 million and profit stood at $658 million. Times Bank Limited, and
Centurion Bank of Punjab have merged with HDFC Bank since then, increasing
the assets of the Bank. Today HDFC has a Pan Indian presence with over 1700
branches and over 5000 ATMs.

57

4.3 STRUCTURE OF ICICI AND HDFC BANK

Attributes

ICICI Bank

Business

Business Loans,Loan Against Deposit,Professional

Loans

Loan,Project Finance,Term Finance,Trade Finance

Cards

Account
Types

Bank Type

Card,E-Shop Card,Loyalty Cards,Meal

Card

Card,Travel Currency Card

Current Account,Demat Account,Fixed Deposit

Account,Recurring Deposit Account,Saving Account

Private

Wheeler Loan,Home Improvement Loan,Housing

Loan,Loan Against Deposit,Loan Against Gold,Loan

Vehicle,Personal Loan,Two Wheeler Loan

Hours
Investment
Products

Current Account,Demat Account,Fixed Deposit

Account,Recurring Deposit Account,Saving
Account
Private
Commercial Vehicle Loan,Consumer Goods
Loan,Educational Loan,Four Wheeler
Loan,Home Improvement Loan,Housing
Loan,Loan Against Deposit,Loan Against
Gold,Loan Against Property,Loan Against
Share,Loan Against Vehicle,Personal Loan,Two
Wheeler Loan

Monday to Friday-9:00am-4:00pm, Saturday-9:00am-

Monday to Friday-9:30am-4:00pm, Saturday-

1:00pm

9:30am-12:30pm

Bonds,Equity,Fixed Deposit,Flexible

Bonds,Equity,Fixed Deposit,Flexible

Deposit,Insurance,Mutual Fund,Stock Invest

Deposit,Insurance,Mutual Fund,Stock Invest

Card To Card Money Transfer,Currency

Exchange,Demat Services,Direct Tax
Payment,Electronic Clearing Service,Mobile Phone
Services

Finance,Trade Finance

Card,Loyalty Cards,Remittance Card,Travel Currency

Against Property,Loan Against Share,Loan Against

Business

Deposit,Professional Loan,Project Finance,Term

Corporate Credit Card,Credit Card,Debit

Loan,Consumer Goods Loan,Educational Loan,Four

Loans

Business Loans,Loan Against

Corporate Credit Card,Credit Card,Debit Card,E-Shop

Agricultural Loan Schemes,Commercial Vehicle

Personal

HDFC Bank

Banking,Multi City Cheque Facility,Net

Banking,Pension Disbursement,Personal Tax Assistance
& Investment,Portfolio Management,Retail Sale Of Gold
Coin,Wealth Management Service

Card To Card Money Transfer,Currency

Exchange,Demat Services,Direct Tax
Payment,Electronic Clearing Service,Locker
Facility,Mobile Phone Banking,Multi City
Cheque Facility,Net Banking,Personal Tax
Assistance & Investment,Portfolio
Management,Traveler's Cheque,Wealth
Management Service

58

4.4 Similarities and Differences

ICICI Bank
1) ICICI is Industrial credit and Investment Corporation of India.
2) ICICI bank was setup with an objective of providing middle and long
term financing to businesses in India.
3) ICICI bank is the third largest bank in India.
4) The bank has a network of 2,016 branches (31 March 2010) and more
than five thousand ATM machines in India.
HDFC Bank
1) HDFC stands for Housing development finance Corporation.
2) HDFC Bank was established in 1994 by Indias largest housing finance
company- HDFC Ltd.
3) In January 1995 it started operating as a scheduled commercial Bank.
4) Revenue of 20,266.99 crore and profit of 3032.92 crore (2010).
5) HDFC Bank has 1,725 branches and more than four thousand ATM
machines installed, in over seven hundred cities in India.

4.5 ICICI BANK vs HDFC BANK (Bank results season) India

Earnings Season 2012

With HDFC Bank reporting renewed confidence in growth and a global mantra
of 30% growth successfully met in a quarter of low expectations when ICICI
Bank and SBI report tomorrow and the weekend respectively we would also
have the acceleration from a lowered provision, ICICI Bank expected to
continue reporting a credit growth of 18-20% and a 50% jump in Net profit to
$375 million for the quarter too.

59

Indian Banks HDFC vs ICICI

HDFC and ICICI are two names that stand apart among others when we talk of
private sector banks in India. Both are fairly successful banks giving stiff
competition to government banks. The reason of their success lies in the fact
that both have introduced a greater efficiency of services and also host of new
services that were demanded by consumers.

4.6

Difference between HDFC and ICICI

HDFC has a niche market while ICICI is all over the place.

HDFC has an unmatched growth record at 30% while ICICI has had
swings on this front.
On a price to adj book basis ICICI trades at 2 times while HDFC trades
at 4.5 times.
ICICI has a lower PE ratio than HDFC. PE ratio of HDFC is at 19, that
of ICICI stands at 11%.
Reach of ICICI bank and ATMs is much more than HDFC.
There is a huge difference in raising of equity in the two banks.
ICICI Net banking is far superior than that of HDFC.
HDFC has low NPAs at 0.2% of advances while ICICI has NPAs at
2.7% of advances.

60

4.7 HDFC vs. ICICI as investment options

The times have never been more challenging for the top two private sector
banks ICICI Bank and HDFC Bank. Their stocks have underperformed the
Sensex since the start of the market meltdown in January '08. The recent interest
rate hike by the RBI indicates that the going can be much tougher in the coming
quarters. ET Intelligence Group compares the performance of both banks and
evaluates the prospects of investing in them.

PERFORMANCE
HDFC Bank reported over 30 per cent y-o-y growth in net profit in the June '08
quarter. The stability in earnings growth of HDFC Bank is much higher than
that of ICICI Bank. The gap in the profit growth between the two banks was not
high till the March '08 quarter. But ICICI started showing signs of a slowdown
in its retail loan book in the March '08 quarter itself. This was evident as HDFC
Bank posted a growth of 39 per cent in its retail advances in FY08, while ICICI
managed to grow its retail advances by only 15 per cent (before securitization).
This shows that only better expense management helped ICICI to post high
profit growth in the quarter ended March '08.

61

CHAPTER 5 ANNEXURES & QUESTIONNAIRE

5.1 QUESTIONNAIRE
Q1.

Q2.

Q3.

Q4.

Where do you open a

account?

Which bank is more secure?

Which

banks give more return?

What is the full form of
ICICI?

(i) ICICI

43%

(iii) others

24%

(i) ICICI

43%

(iii) others

17%

(i) ICICI

43%

(iii) others

17%

(i) Industrial Credit And Investment

4%

(ii) Industrial Credit And Investment

90%

(ii) Hdfc

(ii) Hdfc

(ii) Hdfc

Company Of India

Corporation Of India

(iii) Investment Credit And Industrial

33%

40%

40%

6%

Corporation Of India
Q5.

What is the full form of

HDFC?

(i) Housing development finance

20%

(ii) Housing developing financial

50%

company ltd

corporation ltd

(iii) Housing development finance

30%

corporation ltd
Q. 6

Q.7.

Q8.

Which bank has more

branches across the country?

(i) Icici

50%

(iii) Others

7%

(ii) Hdfc

43%

Q7.Are you satisfied with

(i)
(ii)

Your open account decisions

(i) Oneself

40%

(iii) Market Research

20%

(v) An other

3%

services of bank?

are influenced by

Yes
No

(ii) Broker

(iv) Friends/Relatives

20%
17%

62

Q10

What are the factors which

(i) Financial Position

17%

you considered before

(ii) Current Market Position

37%

particular

(iv) Future Prospects

10%

bank?

(v) Any others

3%

According to you which bank

(i) ICICI bank

63%

enjoys good reputation in

(ii) HDFC Bank

30%

(i) Yes

67%

(ii) No

33%

(i) Services are safe

53%

(ii) Mobile Banking provides any where

13%

opening account in a

Q11.

market?
Q12.

Are you using Mobile

Banking services offered by

(iii) Goodwill

(iii) Others

33%

7%

HDFC / ICICI Bank?

Q13.

Reason for using Mobile

Banking services offered by
HDFC Bank / ICICI Bank?

bill payment Options

(iii) Mobile Banking Provides Stop Payment

10%

for Cheques
(iv) Mobile Banking Money Transfer

24%

(i) Not Aware about the services

17%

(ii) Dont think Mobile Banking Services

17%

Facility

Q14.
.

Reasons for Not Using Mobile

Banking Services offered by
HDFC Bank / ICICI Bank?

Q15.

are secure

(iii) Other reasons

66%

Are you aware of all the

(i) Yes

70%

accounts provided by your

(ii) No

30%

bank?

63

Q16.

Which loan have you taken

(i) Home loan

20%

from your bank?

(ii) Car loan

33%

(iv) Commercial vechile loan

13%

(v) Loan against securities

11%

(iii) Personal loan

23%

Q17.

Which card you find more

(i) Debit card

47%

Q18.

Are you aware of all

(i) Yes

53%

(i) Yes

60%

Which bonds will you prefer

(i) ICICI bonds

60%

to buy?

(ii) Hdfc bonds

40%

Which bank do you think

(i) ICICI life insurance

60%

(i) Yes

45%

insurance facilities provided

(ii) No

55%

From which insurance

(i) ICICI

50%

company would you like to

(ii) HDFC

27%

secure?

investments provided by your

(ii) Credit card

(ii) No

53%

47%

bank?
Q19.

Can you tend to buy gold

from your bank by the way

(ii) No

40%

of pure
gold investment opportunity?
Q20.
Q21.

will provide security against

(ii) HDFC standard life insurance

40%

life?
Q 22 Are you aware of home
by our bank?
Q23.

take

(iii) Others

23%

motor insurance?
Q24.

What do you understand by

demat account?

(i) A new type of account for businessman 17%

(ii) Electronic account for dealing in
shares
(iii) Foreign accounting system
(iv) No idea

53%
17%
13%

Q25.

. Are you aware of forex

(i) Yes

73%

services provided by your

(ii) No

27%

bank?
64

5.2 FINDINGS
1) It was found from the study that bank believes in quality service
rather than quantity of service.
2) The officials employed are very much enthusiastic about their job.
3) The officials try to make best relation with the customers.
4) There is separate counter for NRI services.
5) The limit of cash vault is Rs. 10, 00,000 for a day.
6) The registers and files are maintained on a daily basis.
7) The registers are maintained in a well organized manner.
8) The marketing strategy of the bank is very attractive.
9) The bank always tries to attract customers with innovative offers
10)

The bank is very keen to implement 5's plan in all its branch.

11)

ICICI and HDFC credit deposit ratio is on the side though ICICI banks

show a little decreasing trend to the extent of 2.24 % Over mar2007 _ mar
2008.
12)

Both the bank investment deposit ratio is on the declining trend

13)

Both the banks has shown better utilization of cash portfolio

14)

ICICI bank Interest expences to interest earned remains the same

Over 2 Years where as HDFC shows reduction.

15)

Other Income ratio remains fluctuation in both the banks.

16)

Operating expences to total income shows a decresing trend in ICICI

bank whereas it was on the rising side in hdfc

17)

Interest income to total funds shows rising mode in ICICI

whereas In SBI more or less it remains at the level; The ratio of

interest expenses to total funds shows an increase in Value in ICICI
Bank whereas in HDFC interest expences shows a Rising mode.
18)

The ratio of Non Interest income remains the same for ICICI for The past

2 Years whereas in HDFC at shows a decline.

65

19)

The stock witness some selling pressure in the coming days in

ICICI Bank .
20)

T h e c o n t i n u a t i o n p a t t e r n n e g a t e s i m me d i a t e b e a r i s h

mo me n t u m o n t he s t o c k a n d i t ' s advisable to buy at declines. Short

term investor can initiate a buy above 500 with a target of 560 570

5.3 RECOMMENDATION
ICICI Bank and HDFC bank has to improve its brand image, i.e.it has to
position itself in the minds of prospects in a better way in comparisons to
others.
It should provide better career opportunities for the retention of its potential
advisors.
Further it has to provide training to its recruited advisors by good
and efficient training methods, which might be a little bit customized if
needed.
It should more emphasize in advertising, as it is the most powerful tool to
position and brand in the mindsets of customers.
It should provide online training and for those who are in jobs
and want to become advisors ICICI should provide evening training classes,
so that they can join the training after doing their jobs.

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5.4 CONCLUSION
Banking is also now being regarded as a versatile financial planning tool.
Research indicates that Indians have four basic financial needs during their life
asset accumulation (such as buying a house or
car), protecting their family, securing their childrens education, and provision
for their retirement. India being a country having a huge population of around
one billion people with only 32% of the banking population in India possessing
banking the country has a vast potential, which has been left untapped till now.
For Banking company Banking advisors are the lifeline and a very huge asset so
each company try to recruit and select a potential force of Banking advisors
because this is the advisors who generate maximum business for the Bank .
Banking advisors provide a very strong support to the Bank and do all possible
efforts to generate huge amount of profit to the company and for him.

5.5 BIBLOGRAPHY
www.google.com
www.scribd.com
www.hdfc.com
www.icici.com
www.comparasionbetween.com
www.comparecards.com

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