A

PROJECT REPORT
ON
“PROSPECTIVE MARKET POTENTIAL FOR CORPORATE
ACCOUNTS OFFERED BY BANKS.”

FOR

HDFC BANK

BY
ANUJ SHUKLA

UNDER THE GUIDANCE OF

“Prof. SUNIL DOKE”

SUBMITTED TO UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTERS IN BUSINESS ADMINISTRATION (M.B.A.)

BRACT’s
VISHWAKARMA INSTITUTE OF MANAGEMENT
KONDHAWA
PUNE- 411048
ANNEXURE

2
 Questionnaire

1. Company Name: ____________________________________________

2. Industry

A) Electric and Electronics

B) Information Technology

C) Automobile

D) Pharmaceutical

E) Infrastructure

F) Telecommunication

g) Others: please specify __________________________________

3. Contact Person: _____________________________________________

4. Designation: ________ _______________________________________

5. Contact Number: ____________________________________________

6. e- Mail id: _________________________________________________

7. No. of Employees: __________________________________________

8. Current Banker: _____________________________________________

9. Total salary uploaded recently/ Avg. Salary of all employees:

_________________________________________________________

10. Special offer provided from existing bank:

a) P.L. Rate: __________________________________________

b) H.L Rate: __________________________________________

c) Vehicle loan Rate: ___________________________________

d) Others: ____________________________________________

3
11. Are you satisfied with existing Banker?

a) Yes b) No

12. Do you expect better products and services from your banker?

a) Yes b) No

13. How is the Relationship between you & your Bank?

a) Excellent

b) Good

c) Satisfactory

d) Unsatisfactory

14. Did you change your banker recently?

A) Yes b) No

15. If yes: From - ____________________________________________

To - ____________________________________________

16. How is Customer Responsiveness of your Bank?

a) Good

b) Satisfactory

C) Unsatisfactory

17. Would you like to shift to other Bank, if provided better product &Services?

a) Yes b) No

4
18. Given options, which Bank, you would like to shift?

Please mention: ___________________________________________

Date -

Place –

Thank you Signature

5
6
 ACKNOWLEDGEMENT

“Gratitude is the hardest of emotions to express as one does not find adequate

words to convey what one feels.”

It’s my pleasant duty to articulate my deep sense of gratitude to my

research supervisor Mr. SUNIL DOKE Vishwakarma Institute of Management,

Pune University for his constant and sagacious guidance during the course of this

investigation. Without his scholarly advice and kind co-operation it would not

have been possible for me to complete this project in the present form.

I am profoundly grateful to Mr. RELOJ BALAKRISHNAN

(CORPORATE SALARY A/C MANAGER) for helping me in collecting the

data for the project and for giving me timely guidance and motivation for

completing the project work.

I extend my respectful thanks to all respondents for providing me the

necessary information in spite of there very busy schedule.

Last, but not the least, I am really dearth of words to venerate my parents

whose steady efforts and motivation helped me to accomplish this work

successfully.

I assure that all the information provided by me is original and

authenticated.

(ANUJ SHUKLA)

7
 TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Anuj Shukla is a bonafide student of our institute. He

has successfully carried out his summer project on “PROSPECTIVE MARKET

POTENTIAL FOR CORPORATE ACCOUNTS OFFERED BY BANKS.” at

HDFC BANK

This is the original study of Mr Anuj Shukla & important sources of data used by

his have been acknowledged in this report.

The report is submitted in partial fulfilment of two years full time course on

Master of Business Administration (M.B.A) 2006-2008 as per the rules.

Prof. Sunil doke Dr. Sharad

Joshi
(Project Guide) (Director)

8
 TITTLE INDEX

S. NO. TOPIC PAGE NO.

1. Executive Summary 1-3

2. Company Profile 4-13

3. Objective & Scope of the study 14-16

4. Research Methodology 17-19

5. Theoretical Background 20-25

6. Data Analysis & Interpretation 26-56

7. Findings & Conclusions 57-59

8. Suggestions &recommendation 60-61

9. Limitations 62-63

10. Bibliography 64-65

9
LIST OF TABLES AND CHARTS
Sr. Table Table/ Chart Page No.
No. No.
1 01 Market coverage of the competitive banks 28-29

including HDFC bank Ltd

2 02 Market potential for various corporate salary 30-31

account

3 03 Customers selection parameters of HDFC bank 32-33

Ltd

4 04 Customers prime requirement in corporate 34-35

salary account

5 05 A A comparative analysis of competitive banks in 36-37

Regards with facility of net banking

6 05 B A comparative analysis of competitive banks in 38-39

Regards with facility of mobile banking

7 05 C A comparative analysis of competitive banks in 40-41

10
 Regards with facility of ATM network

8 05 D A comparative analysis of competitive banks in 42-43

Regards with facility of sales force

9 06 Key factors that converts a satisfied customer 44-45

into a loyal customer

10 07 Table of customer’s preferred bank 46-47

11 08 Customer’s satisfaction with the service 48-49

provided by HDFC bank ltd

12 09 Customer satisfaction with account opening 50-51

criteria

13 10 The most effective means of communication 52-53

14 11 strengthens and weakness of HDFC bank score 54-56

card

11
12
 CHAPTER-1

EXECUTIVE SUMMARY

13
Executive Summary

A new private sector Bank promoted by housing Development Corporation Ltd.

(HDFC), a premier housing finance company. The bank is the first of its kind to

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

private sector. Certificate of Commencement of Business was received on 10th

October 1994 from RBI and the bank was opened by the then finance minister Mr.

Manmohan Singh. The Bank transacts both traditional commercial banking as

well as investment banking. HDFC, the promoter of the bank has entered into an

agreement with National Westminister Bank Pc. and its subsidiaries (Natwest

Group) for subscribing 20% of the banks issued capital and providing technical

assistance in relation to the banks proposed banking business. The Bank opened

its first branch in Ramon House at Church gate, Mumbai on January 16th 1995.

Subsidiaries and associate companies of HDFC include HDFC Bank HDFC

Mutual Fund, HDFC Standard Life Insurance, HDFC Realty HDFC Chub General

Insurance Company Ltd. Intel net Global Services Ltd. and Credit information

Bureau (India) Limited. HDFC Bank offers various products for retail customers.

It provides the customers with Savings and Current Accounts, Fixed deposits

loans and credit and debit cards. It also provides with Investment, payment, Forex

and insurance services. HDFC Bank has gone on to win several awards right from

the best bank in private sector to best bank in the country. It has received awards

from NASSCOM, Economic Times, Business Today, Forbes Global, Business

World, Asian Banker’s Excellence award and many others. HDFC Bank is one of

the major players in the corporate accounts segment in the country. In PUNE there

are three major players in the corporate account segment; viz. Citibank, ICICI

Bank and HDFC Bank. PUNE is known as the one of the Information Technology

14
hub of India, and therefore these IT equipped organizations and software

companies and also some small corporate were the focus of the study. The study

was about these organizations and the relationship that they share with the bank

that provides them with the corporate accounts for their employees. The study was

also to check the willingness of the organizations to go to a new bank if the bank

provided them with better products and services.

15
 CHAPTER-2

COMPANY PROFILE

16
HDFC – The Organisation

Background

HDFC was incorporated in 1977 with the primary objective of meeting a social

Need – that of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC 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. Another objective is to increase the

flow of resources to the housing sector by integrating the housing finance sector

with the overall domestic financial markets.

Organisational Goals

HDFC’s main goals are to a) develop close relationships with individual

households, b) maintain its position as the premier housing finance institution in

the country, c) transform ideas into viable and creative solutions, d) provide

consistently high returns to shareholders, and e) to grow through diversification by

leveraging off the Existing client

17
HDFC Bank

The Organisation.

The Housing Development Finance Corporation Limited (HDFC) was amongst

the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)

to set up a bank in the private sector, as part of the RBI's liberalisation of the

Indian Banking Industry in 1994. The bank was incorporated in August 1994 in

the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.

HDFC Bank commenced operations As a Scheduled Commercial Bank on 16th

January 1995. In the year 1998 HDFC Bank had tied up with the Ahmadabad

Stock Exchange (ASE) to act as its clearing bank

.
Business Focus

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to be the

preferred provider of banking services for target retail and wholesale customer

segments, and to achieve healthy growth in profitability, consistent with the bank's

risk appetite. The bank is committed to maintain the highest level of ethical

standards, professional integrity, corporate governance and regulatory compliance.

HDFC Bank's business philosophy is based on four core values - Operational

Excellence, Customer Focus, Product Leadership and People

Management

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this,

Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing

Director, Mr. Aditya Puri, has been a professional banker for over 25 years and

18
before joining HDFC Bank in 1994 was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth

of experience in public policy, administration, industry and commercial banking.

Senior executives representing HDFC are also on the Board. Senior banking

professionals with substantial experience in India and abroad head various

businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting

and retaining the best talent in the industry, the bank believes that its people are a

significant competitive strength.

The management consists of the Chairman Mr Jagdish kapoor and 9 other

Directors that assist him in achieving objectives of the bank.

i. Mr. Jagdish apoor

ii. Mr. Aditya Puri

iii. Mr. Keki M. Mistry

iv. Mr. Vineet Jain

v. Dr. Venkat Rao Gadwal

vi. Mrs. Renu Karnad

vii. Mr. Arvind Pande

viii. Mr. Bobby Parikh

ix. Mr. Ranjan Kapur

x. Mr.Ashim Samanta

19
Businesses

HDFC Bank offers a wide range of commercial and transactional banking services

and treasury products to wholesale and retail customers. The bank has three key

business segments.

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies

In the Indian corporate to the small & mid-sized corporate and agri-based

businesses. The Bank provides a wide range of commercial and transactional

banking services, including working capital finance, trade services, transactional

services, cash management, etc. It is also a leading provider of structured

solutions, which combine cash management services with vendor and distributor

finance for facilitating superior supply chain management for its corporate

customers.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full

range of financial products and banking services, giving the customer a one-stop

window for all his/her banking requirements. The products are backed by world-

class service through alternative delivery channels like ATMs, Phone Banking,

Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC

Bank Plus and the Investment Advisory Services programs have been designed

keeping in mind needs of customers who seek distinct financial solutions,

information and advice on various investment avenues. The Bank also has a wide

array of retail loan products including Auto Loans, Loans against marketable

securities, Personal Loans and Loans for Two-wheelers. It is also a leading

20
provider of Depository Participant (DP) services for retail customers, providing

customers the facility to hold their investments in electronic form.

Products and Services – HDFC Bank

Product range: The following is the product range offered at HDFC: While

various deposit products offered by the bank are assigned different names, the

deposit products can be categorised broadly into the following types. Definition of

major deposit schemes are as under: -

1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdrawable

on demand like Savings A/c.

2. Term Deposits:

"Term Deposit" means a deposit received by the bank for a fixed period withdraw

able only after the expiry of the fixed period and includes deposits such as

Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly

Income Certificate / Quarterly Income Certificate etc.

3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be

withdrawn on giving at least one complete banking day's notice.

4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom withdrawals are

allowed any number of times depending upon the balance in the account or up to a

particular agreed amount and will also include other deposit accounts which are

neither Savings Deposit nor Term Deposit; The account holder gets a personalized

cheque book, monthly account statements, and Inter-branch banking.

21
5. Corporate Account:

These are more commonly known as Salary Accounts. These are account in

HDFC bank with zero balance. These are given to salaried people. These accounts

are opened by the employer for the employees to deposit the salary of the

employee directly to the account.

6. HDFC Bank Preferred:

A preferential Savings Account where in, one is assigned with a dedicated

Relationship Manager, who’s you’re the one point contact. One also get privileges

like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free

Demat Account and lower interest rates on loans.

7. Sweep-In Account:

A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings

Account runs a bit short, one can issue a cheque (or use ATM Card). The money

is automatically swept in to one’s Savings Account from one’s Fixed Deposit

Account. The excess funds in the account are directly transferred to the fixed

deposit account of the account holder.

8. Super Saver Account:

It gives one an overdraft facility up to 75% of one’s fixed deposit. In an

emergency, you can access your funds while your fixed deposit continues to earn

high interest.

9. HDFC Bank Plus:

Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank

Plus, a Current Account and then something extra for the HDFC bank customers.

22
One can transfer up to Rs. 50 lakh every month at no extra charges, between the

four metros. One can also avail cheque clearing between the four metros, get cash

delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts, at-par

cheque, outstation cheque clearing facility, etc.

10. Demat Account:

One can conduct hassle-free transactions on the stock market for one’s shares. The

shares held by the customer are protected from damage, loss and theft, by

maintaining these shares in electronic form. This account can be accessed through

Internet too.

11. Loans:
There are a variety of loan schemes offered like personal loans, new car loans,

used car loans, loan against shares, consumer loans, two wheeler loans, and home

loans. These are available with easy payback in monthly instalments. Loans are

sanctioned with easy documentation and quick delivery

Services offered

Following are the services offered at HDFC bank for its esteemed customers

i. Phone Banking:

Round the clock automated banking services with 39 phone banking numbers

available as customer help-line. A customer can call in any time and get help

no matter where he may be without any time barrier.

ii. ATM banking:

HDFC bank brings 24-hour banking for it customers. Apart from routine

transactions, you can also pay your utility bills and transfer funds, at any of

our ATMs across the country all year round.

23
 iii. Mobile Banking:

A customer can access his account on mobile phone at no extra air-time cost.

One’s banking transactions are just an SMS away

iv. Inter-city/Inter-branch Banking:

One can access one’s account from any of the HDFC’s 347 branches in 174

cities. Other than that the customer can access their accounts at any of the

ATM canters across the country.

v. International Debit Card:

An ATM Card one can shop with all over the country and in over 140

countries other than India. One can spend any currency depending on the

country he/she is in, and have the money in rupees in the account here in

India.

vi. International Credit Cards:

HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are

accepted worldwide. If one has outstanding balance on one’s other credit card,

one can transfer that balance to this card at a lower interest rate.

vii. Mutual Funds:

Apart from a wide choice of mutual funds to suit any consumer needs, one

benefit from expert advice on choosing the right funds based on in-depth

market analysis by experts.

viii. NRI Services:

A comprehensive range backed by unmatched features and world-class service

ensures NRIs all the banking support they need.

24
ix. Utility Payments made easy:

One can pay utility bills like telephone bills, electricity bills and mobile phone

bills through our ATMs, Internet, phone or mobile phone. Gone are the days

when one stood in long queues and wrote cheque.

x. FOREX Facilities:

Avail foreign currency exchange, travellers’ cheques, and foreign exchange

demand drafts to meet your needs while travelling abroad.

xi. Insurance:

HDFC bank also brings you Life Insurance and Pension Solutions like Risk

Cover

Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std.

Life Insurance Company Limited.

25
 CHAPTER-3

OBJECTIVE AND SCOPE OF THE STUDY

26
Objective of The Project

Learning in the classroom is partial unless it is added with practical experience

and training. Training is the most important part of learning in any technical and

professional education. Exposing the young prospective executive to the actual

business industrial environment not only broaden their horizon but also helps

them to effectively grasp the various angels of business. That will beneficial for

them when they actually come to occupy the execrative position. It is an aim that

practical training of small duration obviously had been made valuable and

indispensable of the MBA degree.

Hence the objective of the project is:

1. To get the practical knowledge about the market research.

2. To find prospective customer for the HDFC bank and to find the product

potential in the market.

3. To make customer informative about the technology offered.

4. To make recommendation and suggestion about the scope and Feasibility for

HDFC product.

Objective of study

Primary: -

1. Analysis and evaluation of customer s satisfaction with respect to product

performance.

2. To determine the main characteristic which customers look upon while

purchasing and selecting the product?

3. To determine the other brand those are competing with the same product rang.

27
Secondary: -

1. Service level and channel associate approach.

2. To find the level of brand awareness.

3. To find out the company market share.

Scope of study
i. Special area to be focused for increasing the sales and for sales promotion

activities to be adopted.

ii. To make product more innovative and easy to understand

iii. For providing maximum satisfaction to the customer by knowing their

needs and requirement about product and services.

iv. Steps to be taken at present for survival and facing the competition with

other equivalent product.

v. Continues improvement and for better management.

vi. Maintaining good relation between manager and customer

Sample Size

The sample size of the project is 550 corporate clients.

28
 CHAPTER-4

RESEARCH METHODOLOGY

29
Methodology of the study

Research Methodology

Research as a mean of getting knowledge can be carried out either arbitrarily or in

a systematic fashion. It is a purposive investigation.

Research may be a mean to know the small change and time forced upon us as

individual or as a society. Research as process involves defining the problem,

formulating the hypothesis, organizing and evaluating the data, deriving inference

and conclusion after careful testing.

Data Collection

As data is required for any research activity, it is collected (for those

Both the Primary and Secondary) as follows:

Primary Data:

I have collected this data through discussion with officers

Secondary Data:

This data is collected from different sources available consolidated

From book publication reports, websites where used as a source of secondary data

in order to do this project and to collect necessary data. I have used the manuals

and leaflets of the bank

Rationality of the study

i. The customer s satisfaction survey gives the company the clear idea of

the weakness and strength that will help the company in deciding their

future strength.

ii. It will give update database of its prospective customers in Pune Region.

30
iii. Sales process will be possible to improve the basis of information received

through study.

iv. It will help the company to know the science of the customers in the

market.

v. It will provide company information about level of satisfaction among

customers for the after sales service and make company possible to

improve in the weak area and also to help capitalize on weak area of

competitors.

31
 CHAPTER-5

THEORETICAL BACKGROUND

32
Corporate Accounts

Introduction

When an organization opens a HDFC Bank Corporate Salary Account it not only

gives its employees more than just an account. They get a host of e-Age Banking

facilities such as Free Net Banking, Phone Banking, Mobile Banking,

International Debit Card (valid in 140 countries) and Bill Pay. And along with that

free Demand Drafts and preferential interest rates on Personal Loans.

An organization will be giving its employees an account that makes banking a

pleasure for them. The organization would have also saved time and money by

directly crediting their employee salaries nation-wide at one go.

Advantages To the Employer

HDFC Bank Salary Accounts benefits the employer by :-

i. Reduces your paperwork.

ii. Saves remittance costs.

iii. Employees receive instant credit of salaries.

iv. More convenient than ECS.

Advantages to the Employees

i. Zero Balance Account

The employee does not have to maintain any minimum balance in the account.

33
 ii. Free Debit Card

The employees do not have to pay the annual fee for their Debit Cards.

Additionally, the first year annual fee is also waived for one additional account

holder, as in the case of a savings account holder. This plus all the other Debit

Card benefits are available to your employees.

iii. Free Inter-city/Branch banking

There is no cap on the transaction size for inter-branch/city transactions for your

employees. The fees associated are also waived. They can perform the following

transactions:

• Cash withdrawal: Customer presence required.

• Cash deposit: Customer presence required

• DD/MC issuance: Customer presence required

• Cheque deposit: Customer presence not required

• Any other written instructions: Customer presence not required

• This facility is not extended to premature withdrawal of Fixed Deposits

iv. Free Demand Drafts

Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any of

the HDFC Bank branch locations. This offer can be availed of through Phone

Banking or Net Banking or at the branch. The amount of the Demand Draft will

be debited to the salary account. Please note: DDs drawn on correspondent bank

will attract full charges

v. Cash delivery

If there isn't a HDFC Bank that is easily accessible from your office, we will

deliver cash against cheques from the employees once a week subject to a

maximum of twice a week. Maximum amount of withdrawal per employee is Rs

34
10,000, minimum Rs 1,000/-. This service is currently available in Mumbai,

Delhi, Chennai, Hyderabad, Bangalore, Pune and Ahmadabad.

vi. Overdraft facility

Employees with a salary account are eligible for this facility: Employees with a

"Net Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean

overdraft facility on the savings account @ 18%. Please note: The employee has

to sign an indemnity bond and give a copy of the latest salary slip.

vii. Discounts on loans

Your employees can avail of the benefits of preferential pricing on our asset

products, namely Loans against Securities, Car Loans and Personal Loans All

loans at discretion of the bank.

35
Salary Accounts – How it all works

The banks approach the corporate houses and present them with the various salary

products that are offered by the bank. The organizations then, choose the bank and the

product from the various options that are offered to them. These organizations have

an association with one of the banks providing salary products

Types:

There are various types of Salary Accounts that are offered by HDFC Bank for

different class of people in the society. Keeping the need of the customer in mind,

various types of accounts are designed and offered to the corporate that choose the

salary account for their employees.

i. Payroll

The HDFC Bank payroll account offers flexibility as well as access to premium

features like Bill Pay, Insta Alert at a nominal charge. One can also access their

account anytime by phone or through the Internet and pay for their utility bills at a

nominal charge.

ii. Classic

The Classic Salary account is a Zero Balance Account which earns the account holder

interest on his savings from salary at a competitive rate fixed by the bank from time to

time. There is no fee applicable for branch transactions and he receives banking

statements once every six months.

36
iii. Regular

The Regular account is a Zero Balance account and comes with a Free International

Debit Card, facilities like free inter-city/branch banking and Safe Deposit lockers

(subject to availability).s

iv. Preium

A power-packed account for successful salaried professionals, the Premium Salary

account comes with a free International Debit Card and add-on Debit card for life,

with the option of choosing between a Silver or Gold credit card at preferential

rates.

v. Defence Salary Account

This account is designed specifically for Defence personnel’s. The Account is a

Zero Balance Account and comes with a free International Debit Card.

37
 CHAPTER-6

DATA ANALYSIS AND INTERPRETATION

38
DATA ANALYSIS

INTRODUCUION

Data analysis and interpretation plays an important role in turning quantity of

paper into defensible, actionable sets of conclusions and reports. It is actually a set

of method and technique that can be used to obtain information and insights from

data.

It can lead the researcher to information and insights that would not be available.

It can help to avoid erroneous judgments and conclusion. It can provide a

background to help interpret and understand analysis conducted by others.

Knowledge of power of data analysis techniques can constructively influence

research objectives and research design.

39
DATA TABLE NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS INCLUDING

HDFC BANK LTD

BANK NAME NO OF PERCENTAGE OF

RESPONDENTS RESPONDENTS
HDFC 22 22%
ICICI 25 25%
UTI 14 14%
CO-OPERATIVES 9 9%
OTHERS 8 8%
POTENTIAL 22 22%
MARKET
TOTAL 100 100%

INTERPRETATION

i. ICICI Bank Ltd scores top position in market coverage of

corporate salary account in Pune Region

ii. HDFC Bank gets a second position

iii. The amount of potential market is as high as the market share of

HDFC Bank i.e. 22%

40
 GRAPH NO 1

MARKET COVERAGE OF THE COMPETITIVE BANKS

POTENTIA
L MARKET ICICI
22% 25%

OTHERS
8%
HDFC
CO UTI 22%
OPERATIV 14%
ES
9%

ICICI HDFC
UTI CO OPERATIVES
OTHERS POTENTIAL MARKET

41
TABLE NO 2

MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY

ACCOUNT

Types of accounts No of Companies Percentage of companies

Premium Account 26 26%

Regular Account 74 74%

Total 100 100%

INTERPRETATION

i. Out of the companies visited, companies with a average salary of

Rs.25000 and No of Employee 15 are 26%.

ii. Out of the companies visited, companies with a average salary of

Rs.15000 and No of Employee 15 are 74%.

42
GRAPH NO 2

MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY

ACCOUNT

PREMIUM
26%

REGULAR
74%

PREMIUM REGULAR

43
TABLE NO 3

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD

PARAMETERS OF PERCENTAGE OF

BANK SELECTION CUSTOMER CHOICE

BRAND NAME 23.60%

PERVIOUS 22.40%

EXPERIENCE

RELIABILITY 22.10%

EASY ACCESS 19.80%

COMPANY POLICY 14.10%

INTERPRETATION

i. Brand Name of a bank has the greatest impact on the customer in

regards with Bank Selection Parameters. (24%)

ii. Pervious Experience and Reliability about the bank get equal score of

22% each.

iii. Followed by Easy Access (20%)

iv. Company (Applicant company) policy (14%)

44
GRAPH NO 3

CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD

14%
24%

20%

22%

20%

BRAND NAME PREVIOUS EXPERIENCE

RELIABILITY EASY ACCESS
COMPANY POLICY

45
TABLE NO 4

CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY

ACCOUNT

BASIC FACILITIES IN CS PERCENTAGE OF

ACCOUNT RESPONDENTS

100%
ZERO BALANCE

85%
ATM NETWORK

68%
NET BANKING

34%
BILL PAYMENT

INTERNATIONAL DEBIT CARD 45%

INTERPRETATION

i. Zero Balance facility is a must have feature of salary account (100%)

ii. ATM Network facility get a second position with 85% of the

respondents opting for this option

iii. Net Banking facility is mostly opted by those employees who are from

the IT or Software Companies due to the nature of work culture and

easy access of net. (68%)

iv. International Debit Card facility is opted fro only when its given as an

additional feature and free of any hidden cost. This facility is generally

opted for the employees who are at a higher position. (45%)

v. Bill Payment facility is the least opted facility as it comes with some

amount of extra charges.(34%)

46
GRAPH NO 4

CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY

ACCOUNT

100% 100%
90%
85%
80%

70% 68%
60%

50%
45%
40%
34%
30%

20%

10%

0%

ZERO BALANCE
ATM NETWORK
NET BANKING
BILL PAYMENT
INTERNATIONAL DEBIT CARD

47
 TABLE NO 5.A

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF NET BANKING

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 73 8 12 5 2

ICICI 68 13 8 6 5

UTI 64 14 7 8 7

CO- 14 9 15 24 38

OPERATIVES

OTHERS 19 36 11 7 27

INTERPRETATION

i. Net Banking facility of HDFC Bank is rated as excellent by a majority

of respondents (73%).

ii. Followed by ICICI Bank,(68%) UTI Bank(64%)

iii. Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of

Baroda, etc are rated as good by 36% of the respondents.

iv. Co-Operative Banks are rated as satisfactory by 24% of the

respondents.

v. Co-Operatives and other banks are rated as unsatisfactory by 38% and

27% respectively.

vi. This dissatisfaction is largely due to lack of technical advancements

and capital.

48
GRAPH NO 5.A

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF NET BANKING

100% 2
5 5 7
90% 6
12 8
8 27
80% 7 38
8
13
70% 14 7
60% 11

50% 24

40%
73 36
68 64
30% 15

20% 9
10% 19
14
0% 0
FC

I
KS

P
TI

S
IC

-O

ER
U
IC
D
N

O
H
BA

TH
C

Series1 Series2 Series3 Series4

Series5 Series6

49
TABLE NO 5.B

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY

HDFC 9 13 27 36 15

ICICI 13 29 27 19 12

UTI 12 18 29 35 6

CO- 5 14 24 40 17

OPERATIVES

OTHERS 12 19 25 30 14

INTERPRETATION

i. ICICI Bank is rated as the excellent in facility of Phone and Mobile

Banking in comparison with the rest of the banks (13%)

ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated

it as satisfactory. This is mainly influenced by the perception about the

bank and previous encounter

iii. The services of all the banks are rated as fair by approximately 25%+

respondents for each bank.

50
GRAPH NO 5.B

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF MOBILE BANKING

100% 6
15 12 14
17
90%

80% 19 35
30
70% 36
40
60%
27
50%
29 25
40%
27
24
30% 29
18 19
20%
13
14
10% 13
9 12 12
5
0%
HDFC ICICI UTI CO- OTHERS
OPERATIVES

excellent good fair satisfactory unsatisfactory

51
 TABLE NO 5.C

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

BANK EXCELLE GOOD FAIR SATISFAC UNSATISFACTIOR

NT TORY Y

HDFC 75 9 5 7 4

ICICI 80 8 5 3 4

UTI 70 6 4 12 8

CO- 15 11 30 31 13

OPERATIVES

OTHERS 33 19 27 10 11

INTERPRETATION

i. ATM Network of ICICI Bank is rated excellent (80%). Followed by

HDFC Bank (75%).

ii. UTI Bank gets third position. (70%)

iii. Co-Operative Banks are rated as fair by 30% of the respondents and

satisfactory by 31% of the respondents.

iv. Other Banks are rated as excellent by 33% of the respondents and fair by

27% of the respondents.

v. 13% respondents rated co-operative banks as unsatisfactory.

52
GRAPH NO 5.C

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF ATM NETWORK

100%
4 4
3 8 11
7 13
90% 5
5 12
8 10
80% 9 4
6 31
70%
27
60%

50%

30 19
40% 80
75
70
30%

20% 11
33
10%
15

0%
HDFC ICICI UTI CO-OP OTHERS

EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY

53
TABLE NO 5.D

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

BANK EXCELLENT GOOD FAIR SATISFA UNSATISFA

CTORY CTIORY

HDFC 45 8 22 7 18

ICICI 53 8 19 9 11

UTI 47 16 26 11 10

CO- 35 11 31 16 7

OPERATIVES

OTHERS 29 18 21 21 11

INTERPREATATION

i. The sales executives of any Bank are the biggest source of

communication. As they are the back bone of any organization.

ii. The networking and customer contact is best done by ICICI Bank’s

followed by UTI Bank and HDFC Bank.

54
GRAPH NO 5.D

A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN

REGARDS WITH FACILITY OF SALES FORCE

100%
10 7
11 11
90% 18
9 11 16
80% 7 21

70% 19
26
22
60% 31
8 21

50% 8 6

40% 11
18

30%
53
45 47
20%
35
29
10%

0%
HDFC ICICI UTI CO-OP OTHERS

EXCELLENT GOOD
FAIR SATISFACTORY
UNSATISFACTORY

55
TABLE NO 6

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A

LOYAL CUSTOMER

Elements No of Respondents % of Respondents

Personal Touch 75 75%

Ensuring Customer 37.5 37.5%

Security

Offering Customized 37.5 37.5%

Products

Innovative Products 37.5 37.5%

Better Service Pre 93.75 93.75%

&Post Banking

INTERPRETATION

Customer Retention and Customer Satisfaction are inexorably inter - linked.

While consumers may be happy to make payments and interact with their bank

through convenient – and cheaper – banking channels, they still expect high

standards of service. A consistent service reflects the bank’s brand and image

across all channels. 93.75 per cent of respondent banks informed that superior

service pre and post banking has been one of the essential factors rated high by

their customers. 75 per cent of respondent banks felt that Personal touch in the

dealings has helped them in winning customers.

56
GRAPH NO 6

KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A

LOYAL CUSTOMER

Ensuring Customer
Security 37.5%

Personal Touch 75%

Offering Customized
Products 37.5%

Better service pre Being a leader in

and post banking offering innovative
93.75% products from time
from time 37.5%

57
TABLE NO 7

TABLE OF CUSTOMER’S PREFERRED BANK

BANKS % OF RESPONDENTS

24%
HDFC BANK

ICICI BANK 29%

UIT BANK 10%

CO-OPERATIVE BANKS 13%

BANK OF MAHARASHTRA 10%

KOTAK MAHINDRA 8%

INTERPRETATION

i. ICICI Bank is the most preferred bank in the market by the customer.

(29%)

ii. HDFC Bank is the second most preferred bank. (24%)

iii. Co-operative Banks are the third most preferred banks. (13%)

iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.

v. Kotak Mahindra Bank is the least preferred bank as per the respondents in

regard with Corporate Salary Account.

58
GRAPH NO 7

CUSTOMER’S PREFERRED BANK

PERCENTAGE OF RESPONDENTS

29
24
13
10 10 8

MAHARASHTR

MAHINDRA
ICICI

UTI

CO-OP
HDFC

KOTAK
BANK OF

A
PERCENTAGE OF ESPONDENTS

59
TABLE NO 8

CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY

HDFC BANK LTD

Elements % of Respondents

Yes 83%

No 17%

INTERPRETATION

i. 83% of the respondents where happy with the service quality of

offered by HDFC Bank

60
GRAPH NO 8

CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY

HDFC BANK LTD

% OF RESPONDENTS

17%

83%

YES NO

61
TABLE NO 9

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

% OF RESPONDENTS
CRITERIA

26%
Yes

74%
No

INETRPREATATION

ii. Even though 74% of the respondents are unsatisfied with the

documentation in the account opening procedure however in terms with

Global Banking HDFC Bank is one of the major contributor for putting

India on No.1 position in regards with Regulatory Systems.

62
GRAPH NO 9

CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA

% OF RESPONDENTS

YES
26%

NO
74%

YES NO

63
TABLE NO 10

THE MOST EFFECTIVE MEANS OF COMMUNICATION

Elements % Of Respondents

SALES FORCE 53%

TELE MARKETING 15.8%

WORD OF MOUTH 11.3%

NEWSPAPER 9.7%

TV 6.2%

PUBLIC RELATION 4%

INTERPRETATION

i. The banks employees are rated as the most effective source of

communication (53%)

ii. Tele marketing is second most effective means of communication (15.8%)

iii. Peers group and positive as well as negative word of mouth publicity is an

effective source of communication. (11.3%)

iv. With Newspapers, Television, and Public Relations following each other.

64
GRAPH NO 10

THE MOST EFFECTIVE MEANS OF COMMUNICATION

% OF RESPONDENTS

60
53
50

40

30

20
15.8
11.3 9.7
10 6.2
4
0 SALES TELE WORD OF NEWSPAPER TV PUBLIC
FORCE MARKETING MOUTH RELATION

% OF RESPONDENTS

65
TABLE NO 11

STRENGTHEENS AND WEEKNESS OF HDFC BANK SCORE CARD

Parameters Score

Regulatory System 5

Technology Advancements 6

Credit Quality 5

Diversification of market beyond 4

big cities

Size of Bank 5

Banking Infrastructure 4

Labor Inflexibilities 3

INTERPRETATION

i. The Indian banking sector has scored over its counterparts not only in

developing but also even in developed world such as Japan, Singapore and

Australia on significant parameters.

ii. Technology has given birth to a new era in banking. Technology can be

the key differentiator between two banks and a major factor to attain

competitive edge. Though slow in the beginning, HDFC Bank seem to

have paced up in adoption of advanced technology.

iii. While enhancement of credit is an important function of the Banks, it is

equally imperative to keep a check on the quality of credit to ensure good

health of the banking system and effective functioning of market for

distressed assets.

66
iv. One of the key fundamentals of banking sector – Credit Quality too has

been rated fairly well in comparison with other Banks.

v. Even though HDFC Bank is a big player in Indian Banking sector still it is

not yet penetrated in the rural areas of India to a very great extend.

vi. HDFC Bank as earlier said is a large player in the Indian Banking

Sector, however when it comes to banking infrastructure it is one of its

weak. And so labour inflexibilities.

67
GRAPH NO 11

STRENGTHES AND WEEKNESS OF HDFC BANK SCORE CARD

STRENGTHS AND WEAKNESS OF HDFC

BANK Score

Labor Inflexibilities 3

Banking
Infrastructure
4

Size of Bank 5

Diversification of
market beyond big 4
cities

Credit Quality 5

Technology
Advancement
6

Regulatory Systems 5

0 2 4 6 8

STRENGTHS AND WEAKNESS OF HDFC BANK Score

68
 CHAPTER-7

FINDINGS

&

CONCLUSIONS

69
FINDINGS

As stated earlier there are main two types of consumers in this field and they are:

1 Small Business consumers

2. Big Business consumers

WAYS TO COMPETE (FINDINGS)

Now all are competing with each other on the basis of different strategies or

combination of one or more strategies. But if we try to summarize the strategies

then we will find that most of these are common and including all these are not

more than the followings: -

i. QUALITY SERVICE:

Quality Service is the most important strategy used to compete in this market

because customers is no more centric only in India, they need better quality in the

service provided to them. The policy of ONE PIONT CONTACT should be

followed by HDFC Bank.

ii. ADVERTISEMENTS:

Only ICICI BANK and UTI BANK are countering HDFC BANK in market

through advertisements. Others are not even bothering on doing advertisements.

iii. PERFORMANCE:

HDFC Bank lacks on the prompt action where as others are a bit ahead in this

line. HDFC Bank takes nearly 8 10 days to open a salary account for tie customer

company. This is mainly because HDFC bank follows the guidelines of RBI and

70
the required number of documents for account opening in a bit regress. But when

it comes to service performance customers are happy.

iv. DIFFERENT SCHEMES:

Some additional facilities should be provided to large companies in order increase

Brand Value as well as bring customer loyalty.

v. POTENTIAL MARKET:

The current account holders should be contacted as there is less amount of

documentation and lesser time is spend in convincing the customer about HDFC

Bank firstly and secondly about Salary Account.

Conclusions

MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY

ACCOUNT (CONCLUSION):

As a summer trainee in HDFC BANK, I would like to conclude my project work

on Marketing Strategies of HDFC Bank India Ltd. It was really very interesting

interacting with customers and have an insight into HDFC Banks brand image in

their minds.

The main aim was to know the factors & attributes of brand, and services

provided by it, which companies look for in Corporate Salary Account. From the

survey, overall conclusion was that people are quite satisfied with HDFC Banks

Corporate Salary Account services.

71
 CHAPTER-8

SUGGESTIONS

&

RECOMMENDATIONS

72
SUGGESTIONS

After talking to customers and staffs I suggest the following points to keep

customers happy

QUICK SERVICE: -

HDFC Bank must try to provide services as early as possible and reduce the time

gap between date promised and work performed so that customer must not get

irritated.

PROPER CO-ORDINATION: -

Staffs of HDFC are still not comfortable with the queries of customers about their

new service, as they sometimes feel dumb to some of the questions. They must get

proper updating from the head office related to any changes or problems faced by

the staffs.

PROPER ORGANISATION OF WORK: -

HDFC Bank needs to be more organized in terms with area division among the

various internal sales teams. The potential market should be followed up in order

to get good sales number.

QUALITY SERVICE: -

HDFC Bank customers generally have following complains:

Number of days has passed yet my account opening process is under process

I have not receive my personalized cheque book as it has been more than a month

after applying for it

I have made a number of complaints but no one is hearing HDFC Bank has to

resolve them as early as possible because it affects the service quality very badly.

73
 CHAPTER-9

LIMITATIONS OF THE STUDY

74
LIMITATIONS

i. AREA LIMITATION: The study was limited to Pune city only. Hence

findings may differ from other parts of India where I have not visited

ii. NON-RESPONSE ERROR: It is almost impossible to obtain data from each

& every respondent covered in sample. There are always some respondents who

refuse to give information

iii. LIMITED SOURCE OF DATA COLLECTION: Sources of data for

collection of secondary data were limited

iv. TIME CONSTRAINT: There was time constraint to this project. The project

has to be completed within 2 months.

v. BUSY RESPONDENT: Many times respondents were so busy that they didn’t

t give reply. There were biased replies also.

vi. OTHER REASONS: There were heavy rains during the period of survey. So

there was many times problem in conducting survey & transportation.

75
 CHAPTER-10

BIBLIOGRAPHY

76
 Bibliography
i. The Economic Times

ii. The Times of India

iii. www.economictimes.com

iv. www.hdfc.com

v. www.hdcbank.com

vi. www.indiabulls.com

vii. www.icicibank.com

viii. http://www.citibank.com/us/d.htm

ix. HDFC Annual Report 2006

x. 10 Years Highlights – (HDFC Bank website – Acrobat File)

77