SUMMER TRAINING PROJECT

REPORT
ON

“DIGITIZATION IMPROVED THE BANKING SERVICES

WITH SPECIAL REFERENCE TO HDFC BANK”

Towards Partial Fulfillment of Masters of Business Administration

Session (2017-2019)

SUBMITTED TO: SUBMITTED BY:

Kuprukshetra university, Palak

Kurukshetra MBA

Roll no._________

(SETH JAI PARKASH MUKAND LAL INSTITUTE OF ENGINEERING AND

TECHNOLOGY, RADAUR)

0
 CHAPTER-1

INTRODUCTION

 INTRODUCTION TO INDUSTRY

MEANING OF BANKING:

Bank is an institution that deals in money and its substitutes and provides crucial financial
services. The principal type of banking in the modern industrial world is commercial banking &
central banking.

Banking means “acceptingdeposits for the purpose of lending or investment of deposits of

money from the public, repayable on demand or otherwise and withdraw by cheque, draft or
otherwise.”

DEFINITION OF BANKING:

“Banking in the most general sense, is meant the business of receiving, conserving and utilizing
the funds of community or of any special section of it”

- By H. Wills & J. Bogan

“A banker of bank is a person, a firm, or a company having a place of business where credits are
opened by deposits or collection of money or currency or where money is advanced and waned.
- By Findlay Sheras
A Bank:
 Accepts deposits of money from public.
 Pays interest on money deposited with it.
 Lends or invest money.
 Repays the amount on demand.
 Allow the money deposited to be withdrawn by cheque or draft.

1
ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing
the importance and benefits of money as a medium of exchange, the importance of banking was
developed as it provides the safer place to store the money. This safe place ultimately evolved in
financial institutions that accepts deposits and make loan i.e. modern commercial banks.

INDIAN BANKING INDUSTRY:

The banking sector is the most dominant sector of the financial system in India. Significant
progress has been made with respect to the banking sector in the post liberalization period. The
financial health of the commercial banks has been improved manifolds with respect to capital
adequacy, profitability, and asset quality and risk management. Further, deregulation has opened
new opportunities for banks to increase revenue by diversifying into investment banking,
insurance, credit cards, depository services, mortgage, securitization, etc. liberalization has
created a more competitive environment in banking sector.

The Banking Codes and standards Board of India is an independent and autonomous banking
industry body that monitors banks in India.To improve the quality of banking services in India S
S Tarapore (former deputy governor of RBI) had the idea to form this committee.

As per the Reserve Bank of India (RBI), India’s banking sector has sufficient capital and well-
regulated. The financial and economic conditions in the country are far superior to any other
country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.

2
FUNCTIONS OF BANKS

Primary functions

 Acceptance of deposits
 Making loans & advances
 Overdraft
 Credit cards
 Discounting of bills of exchange

Secondary functions

 Agency functions
 Collection of cheques and bills
 Collection of interest and dividends
 Making payments on behalf of customer
 Purchase and sale of securities
 Facility of transfer of funds
 To act as trustee and executor

Utility functions

 Safe custody of customers valuable articles and securities

 Underwriting facilities
 Facility of foreign exchange
 Providing trade information
 Provide information regarding credit worthiness to customers

3
STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve bank of India is the
foremost monitoring body in the Indian financial sector. It is a centralized body that monitors
discrepancies and shortcomings in the system.

Banking sector in India functions under the umbrellaof RBI – the regulatory, central bank. This
segment broadly consists of:

1. Commercial banks
2. Co-operative banks

INDIAN BANKING SYSTEM

RESERVE
BANK OF
INDIA

schedule non schedule

banks banks

central co-
state co-op commercial operative banks commercial
banks banks & primary credit banks
societies

indian foreign

public sector private

banks sector banks

SBI and its nationalized regional HDFC ICICI

subsidiaries banks rural banks

4
MAJOR PLAYERS IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD

3. STATE BANK OF INDIA LTD

4. PUNJAB NATIONAL BANK

5. BANK OR BARODA

6. FEDERAL BANK

7. CANARA BANK

8. AXIS BANK

9. IDBI BANK

10.YES BANK

11.INDUSIND BANK

5
 INTRODUCTION TO COMPANY (HDFC BANK)

ORIGIN OF THE ORGANISATION (HDFC)

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 a private
sector, as part of the RBI’s liberalization 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 in January
1995.
HDFC is India’s premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Its outstanding loan portfolio covers well over a million
dwelling units. HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related credit
facilities.HDFC has installed state-of-the-art systems to facilitate inter-connectivity between
branches and link up with on line system. The bank has also recently signed up as a depository
participant, under the newly set up NSDL, wherein the members clearing accounts settlement for
dematerialised shares can be done through the bank. HDFC Bank, one of the nine new-
generation private sector banks, has planned to set up an all-India on-line automated teller
machine (ATM) network.HDFC Bank proposed to launch tele-banking for the first time in June
in Mumbai at its Chandiveli branch. HDFC Bank has drawn up plans to become a niche player in
corporate banking by sticking to top-rung corporate. HDFC Bank has become the first private
sector bank to conclude a structured interest rate option deal.
HDFC Bank, as part of its expansion plans in the South, has opened another branch in Chennai.

6
GROWTH AND DEVELOPMENT OF THE ORGANISATION

HDFC is headquartered in Mumbai.As of March 31, 2018, the Bank's distribution network was
at 4,787 branches across 2,691 cities. All branches are linked online on a real-time basis.
Customers across India are also serviced through multiple delivery channels such as Phone
Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's expansion plans
take into account the need to have a presence in all major industrial and commercial centers,
where its corporate customers are located, as well as the need to build a strong retail customer
base for both deposits and loan products. Being a clearing / settlement bank to various leading
stock exchanges, the Bank has branches in centers where the NSE / BSE have a strong and active
member base. The Bank also has a network of 12,635ATMs across India. HDFC Bank's ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa Electron /
Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

In a milestone transaction in the Indian banking industry, Times Bank Limited was merged with
HDFC Bank ltd. Effective February 26, 2000. As per the scheme of amalgamation approved by
the shareholders of both banks and the Reserve Bank of India, shareholder of Times Bank
received 1 share of HDFC bank for every 5.75 share of Times Bank.

7
MISSION, VISSION AND OBJECTIVES

 MISSION AND VALUES:

The mission of HDFC is to become ‘a world class Indian bank’, benchmarking themselves
against international standards and best practices in terms of product offerings, technology,
service levels, risk management and audit and compliance.

The objective is to build sound customer franchises across distinct business so as to be a

preferred provider of banking services for target retail and wholesale customer segments and to
achieve a healthy growth in profitability, consistence with the bank’s risk appetite.
HDFC Bank’s business philosophy is based on five core values: operational excellence,
customer focus, product leadership, people band sustainability.

8
 HDFC Bank’s Business Objectives:

 Increase their market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy and delivering high quality customer service.
 To deliver more products to more customers and to control operating costs.
 Maintain their current high standards for asset quality through disciplined credit risk
management.
 Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector.
 Focus on high earning growth with low volatility.
 Continue to develop product and services that reduce the cost of funds.

MANAGEMENT AT HDFC

S. NO. NAME DESIGNATION

1. Shyamala Gopinath Chair person

2. Mr. Aditya Puri Managing director
3. Paresh Sukthankar Deputy managing director
4. A N Roy Director
5. Keki Mistry Director
6. Reny Karnad Director
7. Bobby Parikh Director
8. Partho Datta Director
9. Malay Patel Director
10. Kaized Bharucha Executive Director
11. Umesh Chandra Sarangi Additional Director

9
TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information technology and
communication systems. All the bank branches have online connectivity, which enables the bank
to offer speedy funds transfer facilities to its customers. Multi branch access is also provided to
retail customers through the branch network and Automated Teller Machines (ATMs).

The bank has made substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. In terms of core banking
software, the corporate banking business is supported by Flexcube, while the retail banking
business by finware, both from i-flex solution ltd. The systems are open, saleable and web-
enabled.

The bank has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the bank has succeeded in leveraging its market position, expertise and technology to
create a competitive advantage and build market share.

10
BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional/branch banking on the retail side. The bank has
three key business segments:

Business Segment

Wholesale banking Retail banking

services services Treasury

(A)WHOLESALE BANKING:

The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporate and agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which combine
cash management services with vendorand distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant inroads into thebanking
consortia of a number of leading Indian corporate including multinationals, companies from the
domestic business houses and prime public sector companies. It is recognized as a leading
provider of cash management andtransactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.

11
(B)RETAIL BANKING:

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 and delivered to customers
through the growing branch network, as well as through alternative delivery channels.
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. HDFC Bank was the first
bank in India to launch an International Debit Card in association with VISA (VISA Electron)
and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business
in late 2001. By March 2015, the bank had a total card base (debit and credit cards) of over 25
million. The Bank is also one of the leading players in the "merchant acquiring" business with
over 235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is well positioned as a leader in various net based B2C opportunities
including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments,
etc.

(C)TREASURY:

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporate need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

12
FUNCTIONAL DEPARTMENT OF THE ORGANISATION

CHAIRMAN

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

REGIONAL SALES

AREA SALES HEAD

DEPUTY SALES

TEAM LEADER

CONTRACT SALES

13
ORGANISATIONAL STRUCTURE AND CHART

14
 PRODUCTS OF HDFC BANK

HDFC bank provides very large range of financial product to the customer for their better
financial transaction. The products of HDFC bank are:

I.SAVING ACCOUNTS

Everyone needs a savings account to store away the surplus cash. The bank offers savings
accounts under various types starting from basic accounts to premium accounts with variety of
features. The interest rates on the saving account are 4% p.a. which is calculated on the end of
the day balance. The following accounts and their respective interest rates are mentioned below:

 Saving Max Account

 Regular Savings Account
 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group Account
 Institutional Savings Account
 BSBDA Small Account
II.SALARY ACCOUNTS

The bank offers multiple types of salary accounts to suit the needs of all types of corporate. The
salary accounts offer various features to the accountholders like free insurance coverage. The
different types of salary accounts are:

 Premium Salary Account

 Regular Salary Account
 Defense Salary Account
 Salary Family Account
 Classic Salary Account
 Reimbursement Account
 Basic Savings Bank deposit Accounts-Salary

15
III.CURRENT ACCOUNTS

Currents accounts are required by businessmen and professionalwho have regular transactions
through the bank. The account deals mainly in liquid deposits and allows unlimited number of
transactions every day like funds being withdrawn or cheques being written against the without
worrying about the balance in the account. Professionals, traders, SME businessmen, agricultural
businesses can avail benefits like fund transfers between all HDFC Accounts, free local
collections through cheque and fund transfers as well as easy inter-city banking. Moreover, the
bank also offers a range of current Accounts to suit individual preferences like:

 ULTIMA current Account

 Supreme Current Account
 Apex Current Account
 EZEE Current Account
 Max Current Account
 Agri Current Account
 Plus Current Account
 Current Account for Hospitals and Nursing Home
 Trade Current Account
 Current account for professionals
 Premium Current account
 Merchant advantage Current Account
 Flexi Current Account
 Institutional Current Account

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 IV.DEPOSITS

Individuals who wish to save money for a longer term with a view to earn a higher rate of
interest seek to invest money in term deposit accounts which guarantee higher interest rates.
HDFC Bank also offers various types of deposit accounts promising high interest rates for
customers seeking deposit accounts. Here are the deposit accounts available with the bank:

 Regular Fixed Deposit

 Recurring Deposit
 5 Year Tax saving Fixed Deposit
 Safe Deposit Locker- the bank also provides the facility of safe deposit lockers for you to store
your valuable deposits. The lockers are available in various sizes at various locations.

V.RURAL ACCOUNTS

Accounts offers by the bank to farmers for their banking needs, there are 2 types of rural
accounts available:

 Basic savings Bank Deposit Accounts-Farmers

 Kisan club Savings Account
VI.LOANS

HDFC Bank is a leader in home loan sector and also offers various other kinds of loans at
attractive interest rates for various needs of the individuals. The following types of loans are
available with the bank:

17
  Personal Loan
 Business Loan
 Home Loan
 Car Loan
 Two –wheeler Loan
 Loan against Assets
 Gold Loan
 Educational Loan
 Government Sponsored Programs
 Rural Loans

VII.CREDIT CARDS

The bank has a wide range of credit cards for customers which promise special offers and
privileges on dining, movies, lounge access of airports etc. the cards also offer Reward points on
every spending made by the cardholder which can be redeemed for attractive offers. The ranges
of credit cards offered by the bank are as follows:

(a)Super Premium cards- there are 3 various under the Super Premium variety which are:

 Infinia
 Regalia
 Diner’s club black

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(b) Co-Brand Credit Cards- these cards are offered in partnership with jet airways and
times group which offer special discounts on airline travel through jet airways and offers on
dining and movie tickets. The range of co-brand cards includes:

 Jet Privilege HDFC Bank World

 Platinum Times Card
 Titanium Times Card

(c) Professional Credit Cards- Credit cards issued specifically to professionals like
doctors and Teachers with best lounge programs and freedom to fill fuels across any fuel
respectively. The cards come in two variants:

 Doctor’s Superia
 Teacher’s platinum

(d) Premium Travel Cards- these cards are specially designed to offer travel related
benefits and discounts. The cards offer reward points which can be redeemed against air tickets
or against dining and also lounge access of airports. The range includes:

 Superia
 All miles

(e) Cash back cards- the specialty of these cards is that the card promises cash back on
everyday spends in the form of reward points which can be redeemed to get cash back and also
zero fuel surcharge. The range of cash back cards include:

 Platinum Edge
 Titanium Edge
 Money back

(f) Premium cards- credit cards which offer premium range of offers and discounts on
dining, entertainment and complimentary access to airport lounges. The premium range of credit
cards includes the following types of cards:

 World master card

 Diners Club Premium
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 Diners Club rewards
 Visa Signature

(g) Solitaire- a premium card especially for women customers with exclusive offers and
rewards for females.

(h) Platinum plus Card- It is a regular credit card designed for regular usage offering
reward points on everyday spends and fuel surcharge waiver.

(i)Commercial Cards-Arrange of credit cards especially designed for business usage

offering fuel surcharge waiver, lounge access to airports, travels and entertainment benefits and
also air tickets discounts. The range of business cards includes:

 Business Platinum
 Business Gold Credit Card
 Corporate Platinum
 Corporate World Master Card
 Corporate VISA Signature
 Corporate Card
 Purchase Card
 Distributor Card

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VIII.Debit Cards

HDFC Bank offers Debit cards with every savings account to customers who are safer than
carrying cash because they require a PIN every time they are used, they provide great discounts
and cash back on fuel, shopping, dining, entertainment etc. and are used across almost all outlets
for payment. The range of debit cards issued by the bank is:

 Easy shop Platinum Debit Card

 Jet privilege HDFC Bank World Debit Card
 Easy shop Titanium Royale Debit Card
 Easy shop titanium Debit Card
 Easy shop Debit Card
 Easy shop Business Debit Card
 Easy shop NRO Debit Card
 Easy shop Women’s Advantage Debit card
 Easy shop Imperia Platinum chip Debit Card
 Easy shop Gold Debit card
 RuPay premium Debit card

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IX.DEMAT ACCOUNT

HDFC Bank issues Demat Account for investors like traders, long term investors as well as
beginners for a flexible and customized solution. The demat account offered by the bank is safe
and dependable for buying and storing a customer’s equity investments, mutual funds, IPOs,
ETF Exchange Traded funds like Gold and Index, bonds and NCDs. The account can also be
opened online and the types of demat accounts offered are as follows:

 Demat Account

 2 in 1 Account

 3 in 1 Account

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X.INVESTMENTS

HDFC Bank deals in various investment avenues to complete the financial portfolio of the
customer like Mutual Funds, Life Insurance Products and General Insurance Products. The
investment products are further subdivided into the following categories:
 Mutual Funds
 Equities& derivatives through HDFC securities Trading Account
 IPO application through ASBA (Application Supported by Blocked Amount)
 Investment in gold through Mudra Pure gold bars which come as 24 karat pure gold bars of
5g, 8g, 10g, 20g, 50g and 100g with assay certification and tamper proof packing.
 8% Savings bond which are risk-free and can be bought with a minimum investment of
Rs.1000
 Sec 54 EC- Capital Gains Bond with a maximum investment of 50 lakhs and tax exemption
on capital gains
 Inflation Indexed National Savings Securities- Cumulative (IINSS-C) with a minimum
investment of Rs. 5000 and a maximum of Rs. 5 lakh .

23
XI.INSURANCE

HDFC Bank offers both life and non life products to its customers. The life insurance products
are issued in association with HDFC Life Insurance Company limited and the non-life insurance
products are issued in association with HDFC ergo. The following are the heads of insurance and
their respective plans:

(a) Life insurance

The list of below mentioned plans range from term insurance, endowment insurance and money-
back plans to those of Unit linked Insurance Plans (ULIPs) for a complete insurance products
basket for customers to choose from. The plans available are

 HDFC Life Click 2 Product Plus Plan- an online term insurance plan with varied options
corresponding to benefits payable.
 HDFC Life Health Assure Plan- a health plan
 HDFC Life Cancer Care- a health plan specifically designed for diagnosis and treatment of
cancer.
 HDFC Life Pension Super Plus- a pension plan which guarantees income after retirement
 HDFC SL Pro Growth Super II – a Unit Linked Plan giving the dual benefit of insurance and
market linked growth for wealth appreciation
 HDFC SL Young Star Super Premium- a Unit Linked Child Plan taking care of your child’s
future while at the same time giving increased benefits in the form of market linked returns.
 HDFC Life Pro Growth Plus- a Unit Linked Insurance Plan

24
 HDFC Life classic Assure Plus- a limited premium life insurance plan with higher protection
option
 HDFC Life Super Savings Plan- a participating Endowment Assurance plan with built-in
Accidental Death Cover for a comprehensive coverage
 HDFC Life Personal Pension Plus- a pension plan with lifelong pension option and
guaranteed benefit at maturity
 HDFC SL Pro Growth Flexi- a unit linked savings plan with an option to choose accidental
death coverage
 Others –
 HDFC Life New Immediate Annuity Plan
 HDFC Life Smart Woman Plan
 HDFC Life Invest Wise Plan
 HDFC Life Single Premium Pension Super Plan
 HDFC SL Crest
 HDFC Life Super Income Plan
 HDFC Life Sanchay
 HDFC Life Young Star Udaan
 HDFC SL Pro Growth Maximizes
 HDFC Life Click 2 Invest ULIP
 HDFC Life Sampoorna Samridhi Plus Plan
 HDFC Life Sampoorna Nivesh

(b) Health insurance

Health insurance falls under the purview of general insurance and four types of health insurance
plans are offered by the banks which are as follows:

25
 Health suraksha- a health plan covering hospitalization, pre and post hospitalization expenses,
day care procedures, domiciliary treatment and organ donor expenses. The coverage can be taken
for an individual and also his family with treatments in a network of 4800+ hospitals.
 Critical Illness Silver Plan- a health plan specifically designed for treatment of critical illness
covering 8 critical illness in its scope of coverage
 Critical Illness Platinum Plan- a critical illness plan which covers 15 critical illness and
provides the benefit upon diagnosis of the covered illness
 Individual Personal Accident Plan II- a personal accident plan which can be taken for self and
family and covers hospitalexpenses, injuries, disability due to accident with a coverage range of
2.5 lakhs to 15 lakhs
(c)Motor insurance
Motor insurance is offered to customers in partnership with HDFC Ergo and there are two types
of motor insurance plans available:
Commercial vehicle insurance- It provides comprehensive coverage for your commercial
vehicle across 1600+ network garages in India.
Private Car Insurance-Insurance coverage for your private car with cashless claims across
1600+ network garages. Moreover, the plan offers discounts based on age and occupation.

(d) Two- wheeler insurance:

An insurance plan for your two wheeler with a provision of cashless claim across 1600+ network
garages throughout the country.
(e) Travel insurance:
An insurance plan for domestic and international travel be it for business or leisure purposes. The
plan covers emergency medical expenses, emergency medical evacuation, repatriation of
remains, emergency dental expenses, hospital cash, accidental death and permanent total
disability while flying in a common carrier, personal accident, flight delay, loss of baggage and
personal documents, delay of checked-in-baggage, personal liability, financial emergency
assistance, contingency travel benefits and hijack distress allowance.
(f) Home insurance:
An insurance policy issued to protect the home as well as its contents. The plan covers risk
against fire, lighting, explosion, flood, strike, theft with coverage for 1-5 years.

26
 CHAPTER 2

LITERATURE REVIEW
A literature review is a text of a scholarly paper, which includes substantive findings, as well as
theoretical and methodological contributions to a particular topic. Literature reviews are
secondary sources, and do not report new or original experimental work. Most often associated
with academic- oriented literature, such reviews are found academic journals, are not to be
confused with book reviews that may also appear in the same publication. Literature reviews are
a basis for research in nearly every academic field. The review usually precedes the methodology
and results sections of the work.

Gaganjot Singh (1998)8 in his study “New innovations in banking industry – a study of new
private sector banks”

views that the new private sector banks in India are using better technology and are offering
better services to the customers. The new private banks have emerged as a model to the banking
industry in terms of service levels, ambience, technology etc. As the public sector banks have
already established a huge customer base, they become complacent and are slow to become
customer friendly. They are also less innovative in the use of technology-assisted customer
service. Because of their huge customer base they feel that they can withstand competitions from
new generation banks.

Singh Sultan and Komal (2009)in the Business Intelligence Journal presented a paper
titled, “Impact of ATM on customer satisfaction a comparative study of SBI, ICICI and
HDFC bank”.

This paper presented the impact of ATM on customer satisfaction. This was a comparative study
of three major banks i.e. state bank of India, ICICI and HDFC bank. This paper had been divided
into two sections. First section presented the introduction of ATM, brief history of three banks.
Second section presented the result obtained on the basis of the data collected. To analyze the
data, various statistical techniques such as average, standard deviation and normal distribution
had been used as per the requirement of the data. F test had also been used to analyze the
variances. The customer satisfaction level had been analyzed in two terms i.e. material customer
satisfaction level and abstract customer satisfaction level. This article concluded that material
27
satisfaction level was the highest in SBI, the second position was occupied by ICICI bank and
third by HDFC bank.

Rameshgaava (2012) in his study on topic ‘Indian Banking Sector’ finds that:

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and 27
public sector banks where majority ownership is included by the government. During the reform
period, the financial system permitted the banks to select their lending rates and deposits, and
also authorizes higher disclosure to make sure of large transparency in the balance sheets. As a
result of reforms in the banking sector the share of entire assets of public sector banks was
decreased to 75 percent from 90 percent. In the private sector, the new banks entry diminished
the concentration of assets which further might have made the competition stronger which leads
to more profitability, productivity and enhancing efficiency.

Dr. Richard Nyangosi (2014) in his study on topic ‘Digitizing banking services’ finds that-

Internet and mobile technologies of recent years have gained momentum and are impacting the
working of every process including financial services. Financial service providers including
banks are turning their necks toward the wave of these technologies. Their findings includes-
adoption of cell phone banking in India out of those who adopted, mostly were young aged. This
services too like any other e-banking services is gaining momentum as customers are finding it
easy to bank 24x7. Using different common e-banking services provided through a cell phone,
which included: bank inquiry, requesting cheque book, know last few transactions, requesting
bank statement, stop payment of cheque, and bill payment.

28
 CHAPTER-3

RESEARCH METHODOLOGY

OBJECTIVES OF STUDY

 To identify the awareness and usage of Digital- Banking

 To study the impact of Digitalization on ease of doing banking operation
 To analyze the recent banking technology
 To know how much banking services has been improved
 To analyze the problems involved in banking transactions
 To know the satisfaction level of customers with digital banking in HDFC.

RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques.Typically, it encompasses concepts such as paradigm,
theoretical model, phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions- it is, therefore, not the same as a method.
Instead, a methodology offers the theoretical underpinning for understanding which method, set
of methods, or best practices can be applied to specific case, for example, to calculate a specific
result.
It has been defined also as follows:
1. The analysis of the principles of methods, rules, and postulates employed by a discipline.
2. The systematic study of methods that are, can be or have been applied within a discipline.
3. The study or description of methods.

29
 Steps in Research Methodology:

1. Problem statement
2. Research Design
3. Sample Design
4. Data Collection
5. Organization Of Data
6. Presentation Of Data
7. Analysis and Interpretation of Data

RESEARCH DESIGN

A research design serves as a bridge between what has been established (the research objectives)
and how to accomplish these objectives. In fact, the research design is the conceptual structure
within which research is conducted; it constitutes the blueprint for the collection, measurement
and analysis of data. More explicitly, the design decisions happen to be in the respect of:

i.What is the study about?

ii.Why is the study being made?
iii.Where will the study be carried out?
iv.What type of data is required?
v.Where can be the required data found?
vi.What period of time will the study include?
vii.What will be the sample design?
viii.What technique of data collection will be used?
ix.How will the data be analyzed?
x.In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly on the
research purpose.

30
 TYPES OF
RESEARCH
DESIGN

EXPLORATORY DESCRIPTIVE EXPERIMENTAL

RESEARCH RESEARCH RESEARCH
DESIGN DESIGN DESIGN

The present study is Descriptive in nature, as it seeks to discover ideas and insight to bring new
relationship. Research design is flexible enough to provide opportunity for considering different
aspects of problem under study.Decision regarding What, Where, When, How much, by what
means concerning an enquiry or research study constitute a research design. Research Design is
advance planning of research. A good research design should be flexible, appropriate and
efficiency and so on. A good design ensures that the required data is gathered accurately, timely
and economically.

SAMPLING DESIGN

For my survey I have used convenience sampling techniques.

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE- sample of 100 people was taken in order to conduct the research.

UNIVERSE- in accordance to the specified research universe is Radaur.

DATA COLLECTION

After the research problem has been identified and selected the next step is to gathered the
requisite data. While deciding about the method of data collection to be used for the researcher
should keep in mind two types of data viz. Primary Data and Secondary Data.

31
Types of Data Collection:

 Primary Research: Sometimes, the information you need doesn’t exist- anywhere! You’ve
searched the internet; you scoured the library, journals and databases all you no avail. That’s
when you may need to conduct primary research, or research conducted for a specific purpose.

 Secondary Research: Usually the easiest and least expensive, secondary research is
information that already exists somewhere. It may be a study, a group of articles on a topic, or
demographic or statistical data gathered by someone else. For example, the demographic data
about car owners in your country available from your chamber of commerce may be just the
information you need- and it’s already gathered.

 METHODS OF DATA COLLECTION

For the purpose of conducting a proper research is a need of availability of relevant data. While
collecting the required data researcher should be very careful as the quality of the research
directly depends upon the reliability and accuracy of data. There are different way of collecting
data researcher can select a particular one according to his requirement. Sometimes the
availability of resources is considered while selecting techniques of collection of data. Broadly,
all the methods of data collection can be divided into two categories i.e. primary and secondary
sources. Primary data collected by researcher through survey or experiment. Secondary data is
also called as second hand information. Secondary data is not collected by the researcher himself
but available in the records etc. So researcher can use both these methods according to his her
requirements. In my research study I use the questionnaire for collecting data.

SECONDARY DATA:

 Website of the company.

 Annual reports
 Data collected by other researchers
 Magazines

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 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

Accounts

8%
12% Saving A/C
Current A/C
Salary A/C
22% 58% Others

INTERPRETATION: Out of 100 respondents I have taken for my survey 58% respondents
have saving account, 22% have current account, 12% have salary account and 8% have other
accounts which includes NRI and fixed deposit account in the bank.

INFERENCE: It seems that more than 50% of respondents are having saving account customers
as compare to other accounts

33
Q2. Since how long you have the account in HDFC Bank?

40%

35%

30%

25%

20% 38%

15% 25%
22%
10% 15%

5%

0%
0-1 year 1-2 years 2-3 years 3 and above

Percentage

INTERPRETATION: Out of 100 respondents, 38% customers have their account in HDFC
Bank for more than 3 years. And 25% customers have account for 2-3 years.

INFERENCE: It seems that many customers have a better relationship with HDFC Bank
because they have their accounts there for more than 3 years.

34
Q3. According to you what is the more convenient way for banking?

80%
60%
40% 61%
39%
20%
0%
Branch Digital
Banking

INTERPRETATION: When the customers are asked about their preference between branch
banking and digital banking, 61% customers preferred digital banking and 39% preferred branch
banking.

INFERENCE: As the survey is conducted in a small town, so the literacy rate is not so high,
that’s why 39% percent people are not able to use digital banking.

35
Q4. Do you use Digital Banking services in HDFC Bank?

usage
yes no

30%

70%

INTERPRETATION: Out of 100 respondents, 70% use digital banking services in HDFC
Bank and 30% are not using digital banking services.

INFERENCE: It is also because of the lack of knowledge about the usage of digital banking
that 30% people are not using digital banking services.

36
Q5. Which digital services do you use at HDFC Bank?

50%

40%

30%

20% 43%
35%
10%
12% 10%
0%
Internet Mobile Insta alert ATM
Banking

INTERPRETATION:Out of 100 respondents, 43% use Internet Banking, 12% uses Mobile
Banking, 10% use Insta Alert, 35% uses ATM.

INFERENCE:It seems that more than 70% people are using the internet banking and ATM
because of more convenient services.

37
Q6. Which digital initiative of HDFC you know about?

Initiatives

4%
30% Pay Zapp
Chillr
46% Digital banking
Watch banking
20%

INTERPRETATION:Out of 100 respondents, only 46% people know about Digital Banking,
25% know about Chillr, 15% PayZapp, 14% know about Watch Banking.

INFERENCE:The awareness of digital initiatives among the customers is not at the high level.
Most of the customers are not having the knowledge of digital initiatives.

38
Q7. How often do you use digital banking services?

40%
30%
20% 35%
25% 27%
10% 13%
0%
Daily Weekly Monthly Once in a
month
usage

INTERPRETATION:Out of 100 respondents, 35% people use digital banking services daily,
25% use weekly, 27% uses monthly and 13% are those who use digital banking services once in
a month.

INFERENCE: It seems that about 50% of people use digital services in a week or daily. Mostly
people who have business transactions daily, they are using the digital services in more effective
manner.

39
Q8. What would encourage you to use more the online banking services?

Reason of usage
Reason of usage

45%
18% 25%
12%

Rewards Simpler Security Free

services transaction

INTERPRETATION:Out of 100 respondents, 45% are using digital banking because of high
security, 12% uses for getting rewards, 18% uses for simpler services and 25% uses for free
transaction.

INFERENCE: The major reason of choosing digital services is higher security as compared to
branch banking. It is also less time consuming.

40
Q9. Do you think HDFC banking services has improved through
Digitalization?

80%
70%
60%
50%
40%
78%
30%
20%
10% 22%
0%

YES
NO

IMPROVEMENT

INTERPRETATION:Out of 100 respondents, 78% are agreed that HDFC Banking services
have been improved and 22% are not agreeing upon it.

INFERENCE:It seems that mostly people are agreed upon the better improvement in services of
HDFC Bank.

41
Q10. What is your level of satisfaction with HDFC Bank Digital services?

Satisfaction
Fully satisfied
16%
38%
Satisfied
24%
Somewhat
22% satisfied
Not satisfied

INTERPRETATION: Out of 100 respondents 38% are fully satisfied, 22% are satisfied, 24%
are somewhat satisfied and 16% are not satisfied.

INFERENCE: It seems that more than 50% respondents are satisfied with the HDFC Bank
digital services.

42
Q11. Are service charges for internet banking fair?

fair charges
YES NO

18%

82%

INTERPRETATION: Out of 100 respondents, 82% respondents said that service charges are
fair and 18% respondents are not satisfied with service charges.

INFERENCE: It seems that mostly respondents are satisfied with the charges paid by them for
internet banking services.

43
Q12. Do you think that human contact is important for banking relation?

40% 37%
35%
30% 25%
25% 20%
20% 18%
15%
10%
5%
0%
Completely Somewhat Unsure Not at all
contact

INTERPRETATION:Out of 100 respondents, 37% said that human contact is completely

important for banking relation, 25% said that human contact is somewhat important, 18% said
that they are unsure about this and 20% said that human contact is not at all important for
banking relation.

INFERENCE: As the research is made in a small town, where literacy rate is less, that’s why
more that 60% said that human contact is important in banking relation.

44
Q13. What is the degree of confidence you have on E-Banking?

confidence
confidence

40%
25% 19%
16%

Low Not at all High Very High

INTERPRETATION:Out of 100 respondents, 40% respondents have the confidence on E-

Banking, 16% have low confidence, 25% have no confidence on E-Banking and only 19% have
very high confidence on E-Banking.

INFERENCE: It seems that around 50% respondents have the confidence on E-Banking and
others have low confidence on E-Banking.

45
Q14. For what purpose you use digital banking services at HDFC Bank?

Services
Money transfer Pay bill Balance details
Recharge loan query

10%
14% 34%

22%
20%

INTERPRETATION:Out of 100 respondents, 34% respondents are using digital banking

for money transfer, 22% uses for balance details, 20% uses this for paying bills, 14% uses it for
recharge and rest 10% uses it for loan query.

INFERENCE:It seems that mostly people uses the digital banking for money transfer and
balance details.

46
 CHAPTER- 5

FINDINGS

 Digital banking is more convenient.

 Customers are less aware about digital initiatives.

 Mostly customers are satisfied with digital banking.

 Digitization has the good and positive impact on banking services.

 Most of the people have their saving accounts with HDFC Bank.

 Better customer relation as people have their bank accounts in HDFC for more than 3 years.

 People are more aware about Digital Banking as compared to other services.

 High level of security increases the usage of Digital Banking.

 Mostly people have the confidence on E-Banking.

 Less awareness about the different services provided by the HDFC Bank.

47
 CHAPTER-6

SUGGESTIONS

 They should solve the problems of customers as soon as possible.

 Customers should be encouraged for using all the services of digital banking.

 Increases the facilities in rural areas also.

 Bank must build the trust on digital banking.

 If possible, some training campaigns can be introduced.

 Bank should improve their relationship with customers by satisfying them.

48
 CHAPTER-7

LIMITATIONS

 The study is limited to particular area.

 The responses of customers may be biased.

 Less literate people.

 As I didn’t have significant knowledge on this topic, I was unable to draw more information.

 The Resources available were very limited and I faced problems communicating with all
employees, as there was heavy noise pollution at the site.

 There was also lack of time and workers also were hesitant in responding in the working hours.

49
 CHAPTER-8
CONCLUSION

Most of customers believe that digital banking is more convenient way for banking and most of
them use digital banking in order to save time and also as it has 24 hour access.

Customers use digital banking services at HDFC Bank mostly transfer, to pay bill, for recharge,
online shopping. HDFC Bank provides very quick services to its customers.

Some people who are not using the go digital initiatives of the bank, it is because they are not
much aware about the initiatives of the bank.

The customer are using the digital banking services for few purpose it means the use of the
digital banking channel is limited for few transaction.

Most of the customers who are using the digital banking services are satisfied with the service of
the bank for the particular digital banking service.

50
 CHAPTER -9
BIBLIOGRAPHY

 https://www.scribd.com/document/343885375/Summer-training-
report-at-HDFC-Bank
 https://www.scribd.com/doc/18003104/A-PROJECT-REPORT-
ON-HDFC-BANK-submiited-by-Ankita-singh
 https://www.scribd.com/doc/53309463/Summer-Training-Project-
Report-on-HDFC-LTD
 https://www.slideshare.net/honeyagarwal1460/digitisation-in-
banking-sector
 https://www.hdfcbank.com/
 https://en.wikipedia.org/wiki/HDFC_Bank

51
 CHAPTER-10
QUESTIONNAIRE
NAME…………………………….
GENDER………………………….
AGE……………………………….
OCCUPATION……………………
EMAIL ID…………………………

Q1.What type of account you have in HDFC Bank?

o Savings account
o Current account
o Salary account
Q2.Since how long you have the account in HDFC Bank?

o 0-1 year
o 1-2 years
o 2-3 years
o 3 and above
Q3. According to you what is the more convenient way for banking?

o Branch Banking
o Digital Banking
Q4. Do you use Digital Banking services in HDFC Bank?

o Yes
o No
52
Q5. Which digital services do you use at HDFC Bank?

o Internet Banking
o Mobile Banking
o Insta Alerts/ SMS/Query
o ATM
Q6. Which digital initiative of HDFC you know about?

o Pay Zapp
o Chillr
o Digital Banking
o Watch Banking
Q7. How often do you use digital banking services?

o Daily
o Weekly
o Monthly
o Once in a month
Q8. What would encourage you to use more the online banking services?

o Rewards (discounted fees for certain services)

o Simpler/clearer service
o Higher security
o Free transactions

53
Q9.Do you think HDFC banking services has improved through Digitalization?

o Yes
o No
Q10. What is your level of satisfaction with HDFC Bank Digital services?

o Fully Satisfied
o Satisfied
o Somewhat satisfied
o Not satisfied
Q11. Are service charges for internet banking fair?

o Yes
o No
Q12. Do you think that human contact is important for banking relation?

o Completely
o Somewhat
o Unsure
o Not at all
Q13. Degree of confidence on E-Banking

o Little
o Some
o Not at all
o High
o Very high
54
Q14. For what purpose you use digital banking services at HDFC Bank?

o Money transfer
o Pay Bill
o Balance details
o Recharge
o Loan related query

55