Market Research Project

On

Comparative Study of
SAVINGS a/c
Of
AXIS bank, ICICI bank and HDFC bank

Indian Institute of Planning and Management, Satbari

 ACKNOWLEDGEMENT

With great pleasure, I express my heartiest thanks to Mrs. Priyanka J. for

giving me an opportunity to work under her guidance. She gave me the
guidelines that helped me a lot in the preparation of my research report.

I express my thanks to all the respondents to whom I visited, for their

support and valuable information, which helped me in the completion of my
research project work.

I express my sincere gratitude to my parents, friends and all others who have
directly or indirectly inspired and helped me to complete my project with
unremitting zeal and enthusiasm.
 DECLARATION

I hereby state that this work is a result of study on the “Comparative study
of SAVINGS a/c of AXIS bank, ICICI bank and HDFC bank”. The
findings & conclusion expressed in this research report are genuine and for
academic purpose. It is my own and it has neither been submitted nor
published anywhere before any resemblance to earlier project or research
work purely coincidental. It is totally based on my hard work and creativity.
 CONTENTS

1) Introduction

2) Objective of the study

3) About the organization

4) Research Design
- Research Design
- Sampling
- Data Collection Methods

5) Comparison with Competitors

6) Limitations and Findings

7) Recommendations and Suggestions

8) Conclusion
 SUMMARY OF THE STUDY

The research report throws light on the products and service so offered by
Axis Bank.

In current scenario customers are very much aware of their money

investment. They evaluate all the advantages and disadvantages of the
products and services provided by the banks. After being fully satisfied only,
they invest their money.

So, during this Research report, I have tried to show all aspects which
customers keep in mind while choosing a bank and its products or services;
and what they want from the side of the bank.

The main points included with in the project are : –

1) History and performance of the bank

1) Products and services offered by the bank
1) Potential of bank in the market i.e. its recognition by the
customers
1 ) Aspects considered by the customers while establishing any
relationship with the bank
 OBJECTIVES OF THE STUDY

• To know about Retail banking

• To know about the scope of Retail banking

• To know about the products in Retail banking

• To Compare the products of competitor banks

 ABOUT THE ORGANIZATION

WHAT IS BANKING?

There is no unanimity among the economists about the origin of the word “BANKING”.
The word “BANK” is itself derived from the Greek word “BANQUE” i.e. a bench. The
German word “BANC” means a joint stock firm.

In modern times, commercial banking occupies quite an important place in the

framework of every economy because of the continuing challenge it presents to those
who are responsible for managing the affairs of the nation’s bank’s and to those who
observe and study their performance.

EVOLUTION OF COMMERCIAL BANKING

As public enterprise, banking, as we know it today, made its first beginning around the
middle of the twelfth century in Italy. The Bank of Venice (1157) was the fist public
banking institution. Following its establishment, were established Bank of Barcelona
(1401), Bank of Geneva (1407). The famous Bank of Amsterdam was founded in 1609.
It was as popular as Bank of England now.

Not with standing the establishment of the Bank of England (1694), the development of
modern commercial banking institutions has to wait for another century and four decades
until the passage of the “BANKING ACT, 1833” which provided for the establishment
of the joint Stock Banks. It was the first banking regulation act introduced by the state.

COMMERCIAL BANKING IN INDIA

The “Calcutta Bengal Bank (1838)” was the first bank of India, which was renamed as
Presidency Bank later on. The English managed it. Now it is renamed as “State bank of
India”.
The first of limited liability managed by Indians was Oudh Commercial Bank founded
in 1881. Subsequently, the Punjab National Bank was established in 1894. Swadeshi
movement, which began in 1906, encouraged the formation of a number of commercial
banks. But banking crisis during 1913-1917 and failure of 588 banks in various states
during the decade ending in 1949 underlined the need for regulating and controlling
commercial banks. The Banking Companies (Inspection Ordinance) was issued in
January 1946. The Banking Companies (Restriction of Branches) Act was passed in
February 1949, which was subsequently amended to read Banking Regulation Act.

 The RESERVE BANK OF INDIA was established under RBI Act, 1934 and
nationalized on 01/01/1949
.
 STATE BANK OF INDIA is the India’s biggest bank and the largest bank in the
world by the number of branches (more than 68000 branches in India and
overseas).

 As per a report of December 2001 in India consists of 294 scheduled banks

(including foreign banks) out of which 223 are in public sector of which 196 are
regional rural banks.

 At end of June, 1969 deposits of these banks aggregated Rs. 4,646 crore. In
December 2001, this had increased to Rs. 882,373 crores.

 Sector-had operation overseas with 92 branches (including 55 offshore units), 4

joint ventures and 12 subsidiaries and 14 representative offices.

CURRENT SCENARIO

The industry currently is in a transition phase. On the one hand the PSBs (Public Sector
Bank) which are main stay of Indian Banking System, are in the process of shedding their
flab in terms of excessive manpower, excessive Non Performing Assets (NPAs) and
excessive governmental equity, while on the other hand Private Sector Banks are
consolidating themselves although merger and acquisitions.
PSBs which currently accounted for more than 78% of total banking industry assets are
saddled with NPAs (a mind boggling Rs. 830 billion in 2000), failing revenues from
traditional sources, lack of modern technology and massive work force while the new
Private Sector Banks are forging ahead and rewriting the traditional banking business
model by way of their sheer innovation and service.

The PSBs are of course currently working out challenging strategies even as 20% of their
massive employee strength has dwindled in the wake of successful Voluntary
Retirement Schemes (VRS). The private players however can’t match the PSBs great
reach great size and access to low cost deposits? Therefore one of the means for them to
combat the PSBs has been through the merger and acquisition route.

In the near term, the low interest rate scenario is likely to affect the spreads of majors.
This is likely to results in greater focus on better management procedures consequently,
only banks that strive hard to increase their share of free-based revenues are likely to do
better in the future.
 ABOUT AXIS BANK
Axis Bank was the first of the new private banks to have begun operations in 1994, after
the Government of India allowed new private banks to be established. The Bank was
promoted jointly by the Administrator of the specified undertaking of the Unit Trust of
India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC) and other PSU insurance companies, i.e. National Insurance
Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding
(other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices
and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a
day banking convenience to its customers. This is one of the largest ATM networks in the
country.

The Bank has strengths in both retail and corporate banking and is committed to adopting
the best industry practices internationally in order to achieve excellence.

THEIR MISSION

• Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.
• Continuous technology up gradation while maintaining human values.
• Progressive globalization and achieving international standards.
• Efficiency and effectiveness built on ethical practices.

CORE VALUES

• Customer Satisfaction through

- Providing quality service effectively and efficiently
 - "Smile, it enhances the face value" is a service quality stressed on
- Periodic Customer Service Audits

• Maximization of Stakeholder value

• Success through Teamwork, Integrity and People

OBJECTIVES OF AXIS BANK

 To provide the various facilities to the account holders as well as the general
people which they could not get before.

 Axis bank aims to provide customer world class products at competitive price
along with the technology that make their banking effortless.

 The objective of Axis bank is not customer satisfaction but customer delight.

 The objective of Axis bank is not only making profit but also to penetrate the
market to make good image in the market.

 Axis bank also wants to make aware to the people about the various schemes
available like current accounts, saving accounts, home loans, car loans, two-
wheelers loans etc. by the seminars on various topics related to the finance and by
the help of advertising a face-to-face communication.

FUNCTIONS

 To provide loans.

 To provide finance in the form of equity.

 To sponsor and underwrite new issues of share and securities.

 To make fund available for investment.

 To guarantee loans from private investment sources.

 To provide loans in foreign currency.

 To furnish managerial, technical and administrative services to the Indian

industries.
  To serve as a merchant banker.

 To provide lease financing.

 To work as a trustee to setup mutual fund.

POLICIES OF AXIS BANK

1) COMPENSATION POLICY

The objective of this policy is to establish a system whereby the Bank compensates the
customer for any financial loss he/she might incur due to deficiency in service on the part
of the Bank or any act of omission or commission directly attributable to the Bank
subject to the terms prescribed under Paragraphs on 'Award of Compensation' and 'Force
Majeure' at the end.

The Policy is based on principles of transparency and fairness in the treatment of their
customers.

The Policy prescribes compensation only for financial losses which customers have
incurred due to deficiency in the services offered by the Bank which can be measured
directly and limited to compensation specified for respective service as given below. As
such, the commitments under this Policy are without prejudices to any of the rights the
Bank has/will have in defending its position before any forum duly constituted to
adjudicate the banker-customer disputes.

2) POLICY OF BANK DEPOSITS

One of the important functions of the Bank is to accept deposits from the public for the
purpose of lending. In fact, depositors are the major stakeholders of the Banking System.
The depositors and their interests form the key area of the regulatory framework for
banking in India and this has been enshrined in the Banking Regulation Act, 1949. The
Reserve Bank of India is empowered to issue directives / advices on interest rates on
deposits and other aspects regarding conduct of deposit accounts from time to time. With
liberalization in the financial system and deregulation of interest rates, banks are now free
to formulate deposit products within the broad guidelines issued by RBI.

This policy document on deposits outlines the guiding principles in respect of

formulation of various deposit products offered by the Bank and terms and conditions
governing the conduct of the account. The document recognizes the rights of depositors
and aims at dissemination of information with regard to various aspects of acceptance of
deposits from the members of the public, conduct and operations of various deposits
accounts, payment of interest on various deposit accounts, closure of deposit accounts,
method of disposal of deposits of deceased depositors, etc., for the benefit of customers.
It is expected that this document will impart greater transparency in dealing with the
individual customers and create awareness among customers of their rights. The ultimate
objective is that the customer will get services they are rightfully entitled to receive
without demand.

While adopting this policy, the bank reiterates its commitments to individual customers
outlined in Bankers' Fair Practice Code of Indian Banks' Association. This document is a
broad framework under which the rights of common depositors are recognized.
 PRODUCTS OFFERED BY AXIS BANK

SAVINGS ACCOUNT

• ZERO BALANCE SAVINGS ACCOUNT

• EASYACCESS SAVINGS ACCOUNT
• PRIME SAVINGS ACCOUNT
• SALARY POWER
• POWER SALUTE
• SENIOR CITIZEN’S ACCOUNT
• WOMEN’S SAVINGS ACCOUNT
• NGO SAVINGS ACCOUNT
• PENSION SAVINGS ACCOUNT

CURRENT ACCOUNT

• NORMAL CURRENT ACCOUNT

• BUSINESS ADVANTAGE ACCOUNT
• BUSINESS CLASSIC ACCOUNT
• BUSINESS PRIVILEGE ACCOUNT
• CHANNEL ONE
• CURRENT ACCOUNT FOR GOVERNMENT ORGANIZATIONS
• CURRENT ACCOUNT FOR BANKS
• CURRENT ACCOUNT FOR BANKS & REAL ESTATES
• CAPITAL MARKET CURRENT ACCOUNT
• KRISHI CURRENT ACCOUNT
• BUSINESS GLOBAL CURRENT ACCOUNT
• CLUB 50 CURRENT ACCOUNT
• SHIPPING AND MARITIME CURRENT ACCOUNT
• INLAND ROAD TRANSPORT CURRENT ACCOUNT
• TRAVEL, TOURISM AND HOSPITALITY CURRENT ACCOUNT
NRI ACCOUNT

• NRE SAVINGS ACCOUNT

• NRO SAVINGS ACCOUNT
• NRI PRIME ACCOUNT
• NRI PRIORITY
• PIS ACCOUNT
• NRE SALARY ACCOUNT
• RFC ACCOUNT

PRIORITY BANKING

• RESIDENTS
• NRI

DEPOSITS

• FIXED DEPOSIT
• RECURRING DEPOSIT
• ENCASH 24
• TAX SAVER FIXED DEPOSIT

LOANS

• HOME LOAN
• PERSONAL LOAN
• LOAN AGAINST PROPERTY
• LOAN AGAINST SECURITY
• CAR LOAN
• STUDY LOAN
• CONSUMER LOAN

CREDIT CARDS

• PRIORITY DEBIT CARD

 • DEBIT CARD
• GOLD DEBIT CARD
• GOLD PLUS DEBIT CARD
• BUSINESS GOLD DEBIT CARD
• REMMITANCE CARD
• TRAVEL CURRENCY CARD
• REWARDS CARD
• MEAL CARD
• GIFT CARD
• ANNUITY CARD

INVESTMENTS

• MOHUR GOLD
• MUTUAL FUNDS
• ONLINE TRADING
• DEPOSITORY SERVICES
• EDEPOSITORY SERVICES

INSURANCE

• LIFE INSURANCE
• HEALTH INSURANCE
• PERSONAL ACCIDENT
• HOME
• CRITICAL ILLNESS
 CATAGORIES OF SAVINGS ACCOUNT
There are various types of Savings accounts that are being offered by the
Axis bank.

1) ZERO BALANCE SAVINGS ACCOUNT

At Axis Bank it has been their constant endeavor to create products specifically catering
to the customer’s needs. The account while offering you a whole range of services also
addresses the latent need of having an account without the hassle of maintaining an
average quarterly balance.

It offers certain features

• No Average Quarterly Balance requirement

• Free International Debit Card with an Accidental Insurance cover up to Rs 2
lakhs (charges for the primary holder are waived)
• Free mobile banking facility
• Access through more than 675 branches and more than 2800 ATMs
• At-Par cheque facility with the clearing limit of Rs 50,000
• 24x7 Telebanking & Internet banking
• Free quarterly statements

2) NON-RESIDENT (EXTERNAL) NRE SAVINGS ACCOUNT

Any person resident outside India may open NRE account. This account permits a NRI to
hold and maintain foreign currency earnings in Indian rupees. The principal and interest
earned on these balances are freely repatriable.

Whether you are a student, a professional, a salaried employee or an entrepreneur, this

account will meet all your banking needs
Features

• Change of Resident Status - In the event of the NRI returning from overseas on
a permanent basis the NRE Accounts is to be redesignated as resident accounts or
the funds held in these accounts may be transferred to RFC accounts if the
account holder is eligible for maintaining RFC account.
• Nomination Facility - Nomination can be in favor of resident or non-resident
• Repatriation of funds by nominee

Remittance abroad by Non-Resident Nominee: Banks may allow remittance of funds

abroad, or funds may be credited to NRE or FCNR deposits.

Remittances abroad by Resident Nominee: Funds are to be credited to the ordinary SB

account. If the nominee wants to remit funds outside India for meeting the liabilities of
the deceased, should obtain permission from RBI.

3) EASY ACCESS SAVINGS

The account is an endeavor by the Bank to understand the consumers' needs and redefine
banking to suit their requirements for a truly comfortable banking experience. Easy
Access Savings Account gives them instant access to their money anywhere, anytime.
Possessing a range of unmatched features, it has been devised to better suit the
convenience of their eclectic client base.

Features:

• At Par Cheque Book - As an Easy Access Savings Account Holder, the cutomers
receive the "At-par" chequebook. They can encash these cheques as local cheques
at any of the 257 centers where the bank has a presence, at no extra cost. Drafts
are now history.

• ATM Network Easy Access - Savings Account also entitles them to an

International Debit Card with which they can access their account anytime at all
 the ATMs - both, Visa enabled and the partner banks - across the country.
Withdrawals and deposits (money as well as cheques) are possible with their
Debit Card. And unlike most other ATMs, an Axis Bank ATM allows them to
withdraw upto Rs 40,000 per day.

• Anywhere Banking - Customer can transact through any of their branch offices
all of which are interconnected for their banking convenience. Transactions like
cash deposits, cash withdrawal, transfers and clearing deposits can all be carried
out wherever they happen to be.

• Telebanking - Their Telebanking service provides customer instant access to

their savings account. It offers them a wide range of services over the phone such
as Account Information, Balance Inquiry, Transaction Details, Status of their
Cheque (available only during branch business hours) and even Statement of
Account on Fax.

• IConnect - The idea of "your Bank on your desktop" is now a reality with
iConnect. Customer can lookup the status of their savings account, request new
cheque book, undertake a range of financial transactions, avail financial advisory
services, get information on mutual funds and shop online by just clicking the
mouse.

• Mobile Banking - Mobile Banking enables customer bank with us through their
mobile phone irrespective of where they are. Avail facilities like balance inquiry,
debit or credit alerts, last three transaction details and cheque status.

• Account Statement - Quarterly statements are delivered free of cost. Customers

can also avail the facility of monthly online statements through iConnect ( their
Internet banking channel).

• Quarterly Interest - Every quarter, interest would be credited at the rate of 3.5%
per annum in their account.

4) PRIME SAVINGS ACCOUNT

At Axis Bank, they have always strived to pace their products with the growing needs of
their customers. The Prime Savings account has therefore been created with specific
financial requirements in mind.

Its features

• Wider accessibility - As a Prime Savings account holder, one enjoys access to a

wide network of over 671 branches and one of the largest ATM networks in India
gives easy access to their account from almost any corner of the country.
• Greater convenience - To simplify daily banking, Prime Savings account comes
with an international photo-signature Debit Card. This unique card comes with
withdrawal limit of Rs. 40,000 per day, facilitating transfer of funds, deposits of
cash/cheques and payment of insurance premium (LIC).

The Debit Card also comes with a comprehensive insurance cover inclusive of zero lost
card liability, purchase protection and personal accident insurance up to Rs. 2 lakhs. [To
keep their personal accident insurance cover activated, you should have made a purchase
transaction in 365 days prior to the day of the incident & should have maintained an
average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural
& semi-urban branches) as the case may be in the two quarters before the date of the
incident.]

• More comfort - Through their24 hr Internet Banking and Tele Banking services,
you can enjoy the ease of banking from home or office. Through these
comprehensive services, you can access a range of facilities including online
funds transfer, requests for a new chequebook, Financial Advisory Services
(FAS), online shopping and information on mutual funds.

• Enhanced privileges - The Prime Savings Account eases the banking experience
by providing them a passbook and monthly statement of account to keep them
updated on all their transactions and assist them better in managing their finances.

• Added speed - Through the 'At Par' cheque facility, they have the unique
advantage to encash their cheques as a local cheque at more than 330 centers
 where the bank has a presence at no extra cost. In addition the account enables
them to issue cheques up to Rs. 1 lakh, which will be treated as 'At Par' across
these locations.

They can avail of all these services with a minimum average balance of Rs 25,000 in
metro/urban/semi-urban centers and Rs 10,000 in rural centers.

5) SALARY SAVINGS ACCOUNT

At AXIS bank they know how important employee satisfaction is for an organization to
grow to its full potential. Which is why they have tailored their Salary Savings Account
not only to be a convenient way for people to manage salaries (across various centers,
through their centralized database), but also provide their employees with a range of
value added benefits.

Salary Savings Account comes with a host of facilities that give their employees access to
the complete gamut of banking services (including overdrafts, loans and zero-balance
requirements) on a preferential basis, making it the perfect incentive for their employees.

6) SMART PRIVILEGE ACCOUNT

In today's busy world it's tough being a workingwoman. Right from shuttling between a
job and family to taking care of her finances she has to be on her heels all the time.
Keeping this ideal in mind, Axis Bank has designed a savings account best suited for the
woman of today. Now with the Smart Privilege Account they can manage their money,
their life and enjoy a host of lifestyle privileges as well. What's interesting is that the
Smart Privilege Account ensures that they have enough time for all those important
things in life.

Features

• Jewellery insurance on debit card - The photo signature international debit card
comes a host of enhanced privileges:
 Jewellery Insurance
-Inbuilt Jewellery Insurance with card
 -Protection against loss of Jewellery due to burglary or fire while at
home up to a limit of Rs. 50,000/-
-All risks covered at home
 Free 5 ATM transactions per quarter at Non-Axis Bank ATMs
 Waiver of 2.5% Petro surcharge
 Issuance charge of Rs. 50/- & Annual Charges of Rs. 150/- plus
service tax
 Enhanced Accidental Insurance up to Rs. 3 lakhs [To keep their
personal accident insurance cover activated, you should have made a
purchase transaction in 365 days prior to the day of the incident &
should have maintained an average quarterly balance of Rs 5,000
(urban & metropolitan branches) or Rs 2,500 (rural & semi-urban
branches) as the case may be in the two quarters before the date of the
incident.]

• Dedicated Relationship Manager - A Dedicated Relationship Manager will be

their one point contact at the branch for all their banking transactions thus
ensuring that they would neither have to move from one counter to the other nor
stand in queues to await their turn.

• Zero balance minor account - Imbibe the significance of regular savings in your
child. The Zero Balance Minor Savings Account is a unique feature that all
account holders can open for their children.

Features of Zero balance Minor account

 No maintenance charges
 Debit card offered to the minor above the age of 12 years, who can sign uniformly
-Daily withdrawal limits of Rs 1,500 at ATMs
-Daily spend limits of Rs 1,000 at merchant outlets
 Free Monthly Statement clubbed with the statement of the Smart Privilege
account of the mother.
 At-par cheque book at a nominal cost
• Round-the-Clock access through ATMs - There could be a time in their life
when at 3 am they could require cash. With the round-the-clock access they can
withdraw cash up to Rs. 40,000 per day, deposit cash/cheques, transfer funds,
print a mini statement and pay insurance premiums (LIC), all this through one of
the largest ATM networks in the country.

• Anywhere Banking - Imagine being in some other city and still have complete
access to all their transaction needs. You are a customer of the bank rather than
limited to being a customer of the branch. So even if you are traveling, you can
access your account easily from any of the 600 Axis Bank offices spread over 350
cities across the country.

• At-par cheque facility – Their cheque will be treated as a local cheque within the
vast Axis Bank network of 600 offices across 350 cities in India. It frees them
from the hassles of getting a Demand Draft issued.

• Monthly Account Statement

• Additional discounts on loans

• IConnectTM - The Complete online banking experience: It’s the age of Wi-Fi.
All the banking needs should be on the fingertips, with i-connect they can check
their account status, transfer funds, place online request for a new cheque book
and many more features without even having to visit an Axis Bank branch.

• Financial Advisory Services - Their Financial Advisor will assist then with their
financial planning and help them to earn maximum returns on their savings.

• Discount on Retail Purchases - Just live the feeling of walking into a store and
getting amazing discounts not available to others. As they are valued customer of
the bank, they shall endeavor to provide them with discounts at various outlets,
periodically.

• Smart advantage - Smart Advantage is an exclusive insurance cover specially

 designed for the holders of Special Women's Account that covers woman related
diseases. This insurance protects the woman against the risk of serious illness. It
gives the policyholder the security of knowing that a guaranteed cash sum will be
paid in case she is diagnosed with a life-threatening illness. The insurance is
available at a nominal premium to existing Special Women's Account holders.

7) SENIOR CITIZEN’S ACCOUNT

Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact
that a senior citizen's banking requirements are wholly different and require special
consideration.

Features:

• Dedicated Relationship Managers - Their dedicated relationship managers are

only a phone call away. They can help the customer with all of their banking
needs. Be it a simple query or helping them to manage their finances.

• Free At-par Cheque book - As there "Senior Privilege" Savings Account holder,
customer will receive free "At-par" chequebook, which empowers them to encash
their cheques as local cheques at any of the Axis Bank branch center.

• Free International Visa Debit cards for the primary and the joint account
holders - A "Senior Privilege" Savings Account with Axis Bank entitles them to a
free International Debit card, which enables them to access their account anytime
at more than 2764 ATMs across the country. They can withdraw and deposit
money and cheques with their debit card. The daily withdrawal limit in an Axis
bank is a high Rs 40,000. They can use their debit card to make purchases at
merchant establishment.

A unique security feature to help safeguard their hard earned money is their photograph
and signature on the face of their debit card. All banks do not follow this feature.

• Free Monthly Statement of Accounts/Free Passbook - As their privileged

customer, they would be entitled to a monthly statement of account. The
 statement would give them detailed information on daily transactions with their
closing balances. They can also opt for passbook facility, at no additional cost.

• Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank

branches - Get commission-free Demand Drafts and Pay Orders from their
branches drawn on Axis Bank branch.

• Free Inward Remittances - Funds remitted by their near and dear ones in abroad
get to them through their correspondent banks for free.

• Free Outward Remittances - Once a year remitting their money out of India is
possible for free once a year through their correspondent banks.

• Faster Credits to Foreign Cheques - Funds remitted by their near and dear ones
abroad now get to them faster than ever.

• Free Cheque pickup and Cash pick up services - Extended cash and cheque
pickup services are provided by them free of cost. They can also have cash
delivered at their residence at a nominal charge of Rs 50 per delivery.

• Anywhere Banking - Make transactions like cash deposits, cash withdrawal,

transfers and clearing deposits from any of their branches, all of which are
interconnected for their banking convenience.

• Telebanking - Their Telebanking service provides them with instant access to

their account. A wide range of services such as Account Information, Balance
enquiry, Transaction Details, Status of their Cheques (Available only during
branch business hours) and Statement of Account on Fax can be availed over the
phone.

• Free Mobile Banking - Mobile banking enables you to bank with us through
their mobile phone irrespective of where you are. Avail the facility of balance
enquiry, debit or credit alerts, last three transaction details and cheque status.
 • IConnect - The concept of "your Bank on your Desktop" is now a reality with
iConnect. They can look-up the status of their account, request new cheque book,
undertake a range of financial transactions, avail financial advisory services, get
information on mutual funds and shop online by just clicking the mouse.

• Customized Loan Offerings - Loans against Fixed Deposits -up to 95% of the
FD amt at an interest rate of 1% over the rate of interest of the FD.
NSCs/KVPs/LIC Policy - the rate of interest 1% less than other customers and no
processing fees and no pre payment penalty.

• Complimentary Financial Planning - Everyone has diverse needs based on their

situations, therefore requiring customized solutions. With the help of their
complimentary investment planning, you will know exactly what to do with their
money to realize their financial objectives.

• Silver Health - Medical Insurance for Senior Citizens - Entry age is 70 years.
The medical test (mandatory) is carried out Free of cost only for Senior Privilege.

8) DEFENCE SALARY ACCOUNT

Defence Salary Account from Axis Bank is a product designed keeping in mind how
tough a life in the Defense Forces is. Not only does it come to them absolutely free, no
minimum balance is required either. They can also access the entire Axis Bank network,
including more than 2300 ATMs and 550 branch offices (and growing) no matter where
they are posted.

With the complete gamut of banking services (including overdrafts, loans and zero-
balance requirements) they can be rest assured about their family and all their financial
needs. It's their way of showing their appreciation to their work.

Banking Privileges:

• At-par Cheque Facility - Their job involves constant transfers across the
country. With the at-par cheque facility it will no longer be necessary to set up
new bank accounts with each transfer.
 • Additional Debit Card - Along with a free International Debit Card, they also
get a free card for the joint account holder. This means that their child or spouse
also enjoy the same benefits of banking with Axis Bank.
• Financial Advisory Services – Their solutions answer to the twin goals of
meeting their requirements and to diversify and spread the risk of their investment
portfolio, so you can look forward to a comfortable and worry-free life. They first
understand their exact investment needs and then design the perfect investment
plan for you.

Their investment plan could include investments in:

- Mutual Funds - Debt and Equity

- Bonds
- Axis Bank Fixed Deposits

9) NGO SAVINGS ACCOUNT

Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend
their lives thinking of others. It is a complete banking solution for Trusts, Associations,
Societies, Government Bodies, Section 25 companies and NGOs, so that the
organizations can devote all of their time to their noble motivations.

Features

• A Savings Account for their Trust with a confessional Average Quarterly

Balance.
• A multi-city at-par cheque facility with no limit on clearing payments at centers
across the country wherever we are present.
• Free anywhere banking across all their Branches and Extension Counters and
over all their ATMs.
• Free Demand Drafts or Pay Orders as and when required by you to remit funds.
• Free collection of cheques at outstation locations.
• Monthly Statement of Account delivered at their doorstep.
• Facility for collecting donations in their account through their network of
Branches and Extension Counters across the country, as well as through iConnect
 - their Internet Banking facility.

Also, Axis Bank can offer the facility to donate funds to their Trust through their Internet
Banking facility iConnect to its customers. An Axis Bank customer can donate any
amount to their Trust through the Internet.

In such cases, the savings account of the customer gets debited and the savings account of
their Trust gets credited with the amount of donation at the same time. At the end of
every month, the Bank will provide an MIS giving details of the amount of donations and
the name of donor. This will enable the Trust to issue receipts to the donors.

• Free Internet Banking facility that enables you to view the status of their
account, transfer funds and carry out a number of banking activities from the
comfort of their home or office.
• Investment Advice - Their Financial Advisory Desk will provide portfolio
management advice as well as help you undertake investments.
• Free Demat - To facilitate their investments, we offer a free Demat Account
(charges due to NSDL must still be levied) to their esteemed account holders in
the Trust or Society segment.
• Constituent Subsidiary General Ledger (SGL) account - The Constituent
Subsidiary General Ledger (SGL) account through which investments in Govt.
securities are carried out comes with a host of value-added services
- Investment advice related to the customer's g-sec portfolio.
- Offer of better rates on sale of government securities from the Bank's
stock of securities.
- Concessions in transaction and service charges. (However charges that
have to be directly passed on to the Clearing Corporation of India as part
of the Negotiated Dealing System for trading in g-secs cannot be waved -
a fact, which will be communicated up front.)

• Foreign Contribution (Regulation) Act [FCRA] accounts - The FCRA account

enables approved organizations to receive foreign contributions for utilization in
their activities in India. The Bank will provide assistance in the process of
documentation and obtaining necessary approvals from Ministry of Home Affairs
at New Delhi.
 10) PENSION SAVINGS ACCOUNT

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's
(Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defense
Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly
different and require special consideration.

Benefits

• Timely communication to the customer on receipt of the PPO.

• No delays in commencement of pension disbursals - The Bank is handling the
disbursement of Pension under a Centralized Pension Disbursement Module
wherein the Pensioner records are credited centrally through its Centralized
Pension Payment Hub (CCPH) at Mumbai.
• Timely issue of Form- 16A for tax deducted at source in the immediately
previous financial year.
• Timely revisions based on changes in rates of Pension or Dearness Allowance,
done centrally from the CCPH.

11) RESIDENT FOREIGN CURRENCY (domestic) FRC (D)

ACCOUNT

If you pay commissions for foreign currency every time you travel abroad, if you spend
sleepless nights wondering how to keep your foreign currency safe, if the frequent
fluctuations in forex market tantalize you, if you regularly issue cheques and drafts for
payments abroad or if you are a bibliophile who makes foreign currency payments for
books purchased online, its time you had an Resident Foreign Currency (Domestic)
Account with Axis Bank.

Resident Indians and Foreign Currency - Holding foreign currency is no longer

restricted to the NRIs. For the first time Reserve Bank of India has allowed Resident
Indians to maintain foreign currency accounts without any ceiling to it. This step is
considered as a continuation of RBIs gradual endeavor towards achieving 'Full Capital
Convertibility'.
The Product Offerings - A Resident Foreign Currency (Domestic) Account, RFC(D),
with Axis Bank entitles you to maintain non-interest bearing current account in four
major currencies (USD, EURO, GBP and Japanese Yen). There will be no ceiling on the
balances held in the account. Chequebooks denominated in USD or GBP or EURO or
Yen will be issued on these accounts with 25 leaves. The cheques thereby branded as
RFC (Domestic) Account will not be presented in clearing and will be payable only at the
issuing branch.

The min balance for such a current account will be USD 100 or GBP 60 or EURO 100 or
Yen 20,000. There will be a penal charge of USD 5 or GBP 3 or EURO 5 or Japanese
Yen 1,000 per quarter in case of failure to maintain the min balance requirements.

The RFC (D) account holders will not be allowed any ATM facility as of now. However
they can use 'iConnect' for enquiry purposes only.
 RESEARCH METHODOLOGY
Marketing research may be defined as “the systematic gathering, recording and
analyzing of data about problems relating to the marketing of products and services under
non-recurring condition”.

“Marketing research is the process of designing, gathering, analyzing and

reporting information that may be used to solve a specific technology problem”.

Steps in Marketing Research Process:

 Establish the need for Marketing Research

 Define the Problem

 Establish Research Objective

 Determine the Research Design

 Identify Information Types and Sources

 Determine Methods of Accessing Data

 Design Data Collection Form

 Determine Sample Plan and Size

 Collection of Data

 Analysis of Data

 Conclusions and Recommendations

 Now we concentrate on Research Methodology and Data Collection Method.
Methodology plays a lead role in each and every project work. The research methodology
consists of the following steps:

STEPS IN SAMPLE DESIGN

Type of universe:

The first steps in developing any sample design are to clearly define the set of objects,
technically called the universe, to be studied. The universe can be finite or infinite. In
finite universe the number of items is certain, but in of an infinite universe the number of
items is infinite i.e., we cannot have any idea about the total number of items. Since I
have done my summer training in AXIS Bank, Delhi so my universe is Finite.

Size of sample: 122

This refers to the number of items to be selected from universe to constituent the names.
This major problem before a researcher the size of sample should neither be expressively
large nor should too small it be optimum.

Sampling unit:

A decision has to be taken concerning a sampling unit before selecting sample. Sampling
unit may be a geographical one such as state, district, village, etc or a construction unit
such as house flat, etc, or it may be social unit such as family, club school etc, or it may
be an individual. My sampling unit is people of Delhi location.
DATA COLLECTION

The task of collecting the data begins after a research problem has been defined and
research design/plan chalked out. While deciding about the method of data collection to
be used for the study the researcher should keep in mind two types of data viz., primary
and secondary.

Secondary data: The secondary data are those which have been already collected by
someone else and which have already been passed through the statistical tool.

"Secondary data are statistics not gathered for the immediate study at hand but for some
other purposes."

Secondary data can be classified into:-

1) Internal Secondary Data:

“Data that are originated within the firm for which the research is being conducted are
internal data. If they were collected for some other purposes, they are internal secondary
data."

2) External Secondary Data:

The second form of secondary data is external sources, which are generally published
and are available in different form and different sources.
 ABOUT ICICI BANK
ICICI Bank is the second largest bank in the country. ICICI bank began its retail-
banking venture in mid-1999. By January 2000, it had moved on to introducing home
loans, car loans, personal loans and credit cards.

Realizing the need for a bigger retail deposit base, the bank started building a branch and
an ATM network. The acquisition of Bank of Madurai is March 2001 added 263
branches, many of them in cities where ICICI bank did not have a presence.

The merger of the erstwhile financial institution ICICI limited with the bank in April
2002 gave it a ready-made corporate clientele. The flip side was that ICICI bank had Rs.
10,000 crore of restructured assets for which it had to make provisions.

ICICI Bank has total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008
and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is
second amongst all the companies listed on the Indian stock exchanges in terms of free
float market capitalization. The Bank has a network of about 1,308 branches and 3,950
ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Center and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has
established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).

CATAGORIES OF SAVINGS ACCOUNT OF ICICI BANK

1) SAVINGS ACCOUNT

An ICICI Bank Savings account offers you a valuable banking experience.

Features

• Debit-cum-ATM Card - With an ICICI Bank Savings Account you will get a
debit card that you can use to withdraw cash from any ATM. Charges are
applicable if you use a non-ICICI Bank ATM.
You may also use your debit card to directly make purchases through a Visa POS
(Point of Sale) machine available at most stores! This will help you access your
high interest account from anywhere.

• Money Multiplier Facility - Allow us to take care of your idle money by moving
it into high interest savings account earning.

• Internet Banking - Banking could not have been more convenient. Just log in
with your user ID and password and make banking a hassle-free routine.
• Customer Care - Our 24-hour Customer Care is always available to answer any
query or take your instructions.
• Mobile Banking - Transferring funds or getting to know your balance is as easy
as sending an SMS.
• Standing Instructions - ICICI Bank accepts and supports Standing Instructions.
You don’t have to worry about the chore of carrying out a routine transaction. Just
set up a Standing Instruction and leave it to us to manage.
• Nomination Facility - You may nominate a person as beneficiary to your account
proceeds.
 • Bank@Home - A new banking service that allows you to order cash deposits and
withdrawals from home. The service includes cash /cheques deposits and
cash/DD/PO delivery at home.
• DD Call and Collect
Don’t waste even a minute in a queue to collect a Demand Draft or Pay Order. On
the way to the branch, just call Customer Care, provide details of the DD to be
prepared and collect it ready and signed at the branch!

2) SPECIAL SAVINGS ACCOUNT

Features

• Operating account with free multi city chequebook facility.

• Money Multiplier Facility
• We trust totally your commitment to the account and the relationship and do not
prescribe any minimum balance requirement. In other words, there is no penalty
for non-maintenance of minimum balances in the accounts.
• Internet Banking
• Phone Banking
• Free Anywhere banking
• Free collection of outstation cheques
• Free monthly account statements
• Inward remittance through Money2India for FCRA approved trusts

3) LIFE PLUS SENIOR CITIZEN ACCOUNT

Features

• No more waiting in long queues for you, a senior citizen can now approach the
Special Senior Citizen desk at any ICICI Bank branch and get his / her account
serviced.
• Earn a higher interest rate on your terms deposits with us
• Demand Loan / overdraft against deposits will be upto 90% of the deposit
• The upcountry cheque collection facility for locations with ICICI Bank presence
free of charge to the Senior Citizen customers
• Now, get a specially designed debit card with your new 'Life Plus' Senior citizen
account. This ICICI Bank Ncash debit card is a debit-cum-ATM card providing
you with the convenience of acceptance at merchant establishments and cash
withdrawals at ATMs. With a per-day limit of Rs.25,000 each for ATM
withdrawals as well as for POS transactions , the Debit Card only adds more
comfort and convenience! This is available free of cost to ICICI Bank Senior
Citizen customers
• Free quarterly physical statement
• Payable-at-par cheque book
• Free Access to any Bank's ATM -The next time you want to withdraw cash from
your ICICI Bank account, just walk into any bank's ATM and use your ICICI
Bank ATM-cum-Debit card
• Free Demand Draft / Pay Order
• Money Multiplier Facility - The Money Multiplier feature gives you the
liquidity of a Savings Account coupled with high earnings of a Fixed Deposit.
This is achieved by creating a Fixed Deposit linked to your Savings Account
providing you the following unique facilities.

- Maximum returns - Your money is never idle. Creation of a linked FD

ensures higher rate of interest on your Savings Bank Deposits. You can
issue instructions through any channel such as the ICICI Bank Branch,
ICICI Bank Phone Banking and ICICI Bank's Internet Banking for
creation of Fixed Deposit(s) from the surplus funds in your Savings Bank
Account (subject to a minimum of Rs. 10,000). The Fixed Deposits will be
created in multiples of Rs. 5,000 for a tenure of one year or more as
instructed by you.
- Maximum Liquidity - You can withdraw the funds from your savings
account through any channel such as the ICICI Bank ATM, ICICI Bank
Internet Banking or by issuing a cheque. etc. All linked Fixed Deposits
will be enabled for automatic Reverse Sweep in multiples of Rs. 5000 on a
Last-In-First-Out (LIFO) basis when the balance in the Savings Account
falls below Rs.10, 000. The amount reverse swept will earn interest rates
 at the applicable rate for the period that the deposit was held with the
Bank. The remaining amount will continue to earn higher interest at the
original rate applicable to the fixed deposit.

• Auto Renewal - Under this facility, when your deposits fall due, the bank will
automatically renew the principal and accrued interest for the same tenure as the
original deposit.
• Internet Banking is offered free of cost - ICICIBank.com, our Internet Banking
Service, is a convenient remote banking facility providing you with easy and
secure access to your accounts.

With just a PC connected to the Internet, you can have your account information at your
fingertips, from anywhere in the world, anytime.

So, if you don't want branch timings to restrict you, Internet Banking is just the service
for you.

• Nomination facility [Nomination facility available for bank deposits. There can
be only one Nominee for a deposit account whether held singly or jointly. A
person legally empowered to operate a minor's account can file a nomination on
behalf of the minor. Applicants can make nomination by filling up the Form
prescribed under the Banking Companies (Nomination) Rules 1985. The
nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985. For more details approach your bank.] is available.

• Interest is payable half-yearly.

4) YOUNG STARS ACCOUNT

At Young Stars, we will guide your child through the world of banking - from checking
the child’s savings account balance to guiding through fun zones and special pages on the
Internet Banking channel. It makes banking a pleasure and teaches your child to manage
his or her personal finances through a savings account.

You can transfer pocket money into your child's account. You can even shop with him /
her at Young Stars Shopping Page. You can also open a recurring deposit in your child's
name.

Once you are done with your 'banking', you can access your child's account with all the
fun links to special zones designed to suit your child's area of interests and also impart
knowledge on the current events of the world.

Features:

Young Stars is a banking service for children, aged up to 18 years, brought to you by
ICICI Bank to help the parents meet the present and future aspirations that they hold for
their child. It offers various savings and investment options to the parent along with
teaching the child to manage his/her personal finance in a more responsible and
independent manner.

To make the experience a pleasure we offer:

• Option of a Savings Bank account, Fixed Deposit or Recurring Deposit

• Minimum average balance to be maintained at Rs. 2,500/- per quarter for the
Savings Bank account.
• A special Recurring Deposit with additional features as below:

- The parent would put forward the desired amount to be earned at the end
of the tenure.
- Based on the prevailing rate of interest, the bank staff would then back
calculate the installments to be deposited now till maturity.

• Free personalized chequebook

• Free International debit card for children above the age of 7 years with features
as below:

- Daily withdrawals limits of Rs. 2500/-

 - Daily spend limits of Rs. 2500/-

• The next time you want to withdraw cash from your ICICI Bank Young Stars
Savings account, just walk into any bank's ATM and use your ICICI Bank ATM-
cum-Debit card for free. The above benefit is available to Young star Savings
Account holders on maintenance of a quarterly average balance of more than
Rs.10,000 in the savings account in a quarter. The above benefit can be availed in
the same quarter
.
• Free Internet banking

- Separate login ids and transaction password.

- Access to special zones and links to related websites for making Internet
banking a memorable experience.

• Facility to transfer funds from parent account to kid account to enable parents to
inculcate savings habit amongst children
• Facility of transferring funds from the Young Stars accounts to the RD to enable
the parents to let their child earn more.

5) ADVANTAGE WOMAN SAVINGS ACCOUNT

ICICI Bank Advantage Woman Account – an account for the woman of today who is
looking for independence and an identity of her own, a savings account which will help
you save for the future as well enjoy the present.

Get a specially designed woman's debit card which helps you shop and save
simultaneously, manages your household expenditures and comes with a bag full of
offers attached to it.

This savings account brings to you our entire core banking services with many exciting
benefits and features attached, especially for our women customers.

Features
 • Zero Balance facility with a RD of just Rs. 2,000 - Now just maintain a
Recurring Deposit of Rs. 2,000 with us and get a hassle free zero balance savings
account.
• A Special International Woman's Debit card along with the account with a
withdrawal / spending limit of Rs. 25,000 per day.
• Also, take full advantage of gamut of discounts and benefits on your Special
Woman's Debit card.
• Free Unlimited Access to any bank's ATM - Enjoy free unlimited access to any
bank's ATM for cash withdrawals and balance enquiry.
• Payable-at-par chequebook -With the Advantage Woman account, you get a
free, multi-city chequebook.
• Free quarterly physical account statement and free monthly email statement
(on customer request)
• Bill Pay - No need to waste precious time in queues to pay bills. Pay your
telephone, electricity, mobile phone bills, etc. online or through our Customer
Care, by giving us a one-time standing instructions.
• Multi Channel Access - For carrying out routine banking transactions or to
register for services like credit cards, utility bill pay, cash pick-up and delivery on
call, etc. conveniently access to your savings account through any of the
following channels:
o Access to over 950 ICICI Bank branches and 3,500 ATMs
o Free Internet Banking
o Free Phone Banking
o Mobile Banking
• Nomination facility available

6) RESIDENT FOREIGN CURRENCY (domestic) (RFC (D))

ACCOUNT

Do you want to save money while buying foreign currency for traveling abroad? You can
buy traveler’s cheques, foreign currency in cash and foreign currency demand draft for
your expenses overseas. If you are a frequent traveler, you may not want to go through
the hassles of buying foreign currency every time you travel abroad.
The Reserve Bank of India has now made it easier for you to access foreign currency by
permitting a foreign currency account (domestic) for resident Indians. In line with RBI
guidelines, ICICI Bank has come up with a scheme that helps you get rid of all your forex
worries. You can park your foreign currency in ICICI Bank under RFC (D) account.
Non-interest bearing Resident Foreign Currency (D) (RFC (D)) with ICICI Bank can be
maintained in four major currencies (USD, EURO, GBP and Japanese Yen).

Benefits of ICICI Bank RFC (D) Account

• Saving in commission charges, as you can withdraw foreign currency when you
want without any conversion charges
• Facilitates your payments for foreign travel expenses
• No ceiling on deposits
• Convenient and value-added banking
• Protection to your money from valuation risks due to exchange rate fluctuations.

Features:

ICICI Bank RFC (D) Account has been created to meet your need for accessing foreign
exchange frequently without any hassle. It will save commission charges and will also
protect your money from valuation risks due to exchange rate fluctuations.

Product Features:

• RFC (D) Account is a single currency account. It can be opened in Pound

Sterling (GBP), US Dollar (USD), Japanese Yen (JPY) or EURO (EUR).
Deposits in multiple currencies in a single account are not permitted. You may
open separate accounts for each of the permitted currencies.
• Protects your money from valuation risks due to exchange rate fluctuations.
• No exchange charges will be levied for converting foreign currency into INR.
• This account will be maintained in the form of a current account. No interest is
payable on deposits.
• Foreign Currency BUY rate of ICICI Bank as prevailing for that currency on the
day of the transaction will apply for converting the foreign currency into INR.
• Foreign currency withdrawals can be possible in the form of cash, traveler’s
cheque, foreign currency DD. Withdrawal limit will be as per RBI guidelines.
 • No ceiling on the maximum amount of deposit in the account.
• No minimum balance required.
• Nomination facility.

7) RURAL SAVINGS ACCOUNT

Features

• The Rural Savings Account will be available through Business Correspondents.

• The account is zero balance with no initial deposit.
• The Customer is provided with an E-passbook.
• All transactions in the accounts are done only after a biometric authentication.
• Nomination facility is available.
• Interest is payable half-yearly.

8) PEOPLE’S SAVINGS ACCOUNT

Features

• A savings account from ICICI Bank available only through our Rural branches.
• Minimum balance of Rs.500/-.
• No annual fees.
• Unlimited transactions at the base branch where you have opened your account.
• Internet, Phone and Mobile banking free of cost.

9) FREEDOM SAVINGS ACCOUNT

The all-new ICICI Bank Freedom Savings account now brings you free access to your
money – from over 18,000 ATMs of all Banks, across the country. Add to it a host of
services like Mobile Banking, Internet Banking, Customer care, Anywhere Banking and
lots more. And you get a Savings Account that gives you freedom like no other.

Key Features:
 • Enjoy free, unlimited access to all non-ICICI Bank ATMs (for cash withdrawals
and balance enquiry)
• Minimum quarterly average balance of Rs.10,000.

ABOUT HDFC BANK

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 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 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.
 CATAGORIES OF SAVINGS ACCOUNT IN HDFC BANK

1) REGULAR SAVINGS ACCOUNT

This is the crème product of HDFC Bank. Its minimum depository amount is Rs. 5,000
only. On the cost of this Bank provides many benefits and advantage.

Features and benefits

• Wide network of branches and over thousand ATMs to meet all your
banking needs no matter where you are located
• Bank conveniently with facilities like Net Banking and Mobile Banking-
check your account balance, pay utility bills or stop cheque payment,
through SMS.
• Never overspend- Shop using your International Debit Card that reflects
the actual balance in your savings account.
• Personalized cheques with your name printed on each cheque leaf for
enhanced security.
• Take advantage of Bill Pay, an instant solution to all your frequent utility
bill payments. Instruct for payment over the phone or through the Internet.
 • Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver
facility on your account.
• 3 Free transactions on SBI/Andhra Bank ATMs per month.
• Free Payable-at-Par chequebook, without any usage charges upto a limit
of Rs.50,000/- per month.
• Free InstaAlerts for all account holders for lifetime of the account.
• Free Passbook facility available at home branch for account holders
(individuals).
• Free Email Statement facility.

2) SAVING PLUS ACCOUNT

In this “plus” means customer are provided with some additional features of saving
regular. Its minimum depository amount is Rs. 10,000 only.

Features and benefits

• An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.

• 2 free transactions on SBI/Andhra Bank ATMs per month.

• 3 free transactions on any other bank ATMs per month.
• Free Payable-At-Par chequebook without any usage charge up to a limit of
Rs. 50,000 per month.
• Free International Debit Card for all account holders, for lifetime of the
account.
• Free Demand Drafts on HDFC Bank locations, up to a limit of Rs 25,000 per
day.
• Free Bill Pay & Insta Alert facility for all account holders for lifetime of the
account.
 • Free National Electrical Funds Transfer facility, Net Banking, Phone Banking
and Mobile Banking.
• 25% off on the Locker Rental for the 1st year.
• Special relationship discount on purchase of Gold Bars.
• Free E-mail Statement facility.
• Free Pass Book facility available at home branches for account holders
(individual).
• Inter-city Banking and Multi-city Banking.

3) SAVINGS MAX ACCOUNT

This account provides “maximum benefits” to its customers. Due to having this product
HDFC Bank occupies a special position in Private Banking Sector. For availing the
facilities of this account, customer has to deposit and maintain minimum amount of Rs.
25,000 only.

Features and benefits

• An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.

• Free unlimited transactions at all HDFC Bank ATMs and any other Bank
ATMs using your HDFC Bank Debit Card.
• Free Gold Debit Card for primary account holder, for the lifetime of the
account. Gold Debit Card for other account holder at Rs. 250 p.a.
• Free Woman’s Advantage/International Debit Card for all account holders,
for lifetime of the account.
• Free Payable-at-Par cheque book without any usage charges, up to a limit of
Rs. 100,000 per month.
• Free Demand Drafts on HDFC Bank locations, up to a limit of Rs.50,000 per
day.
• Optional Sweep Out facility to transfer extra saving to a Fixed Deposit at the
threshold of Rs. 50,000 in account. The amount above Rs. 50,000 will
automatically be swept out in to fixed deposit with a minimum value of Rs.
25,000 for 1 year 1 day period.
• Free Bill Pay and Insta Alert facility for all account holders for lifetime of
the account.
 • Free Monthly Statement of Account.
• 50% off on the Locker Rental for the 1st year.
• Folio maintenance charges on Demat Account waived for the first year.
• Free Pass Book facility available at home branches for account holders
(individual).
• Free E-mail Statement facility.
• Free National Electronic Fund Transfer facility, Net Banking, Phone Banking
and Mobile Banking.
• Self /Third Party Cash Deposit and Withdrawal at non-home branches, up to
Rs.50,000 per day is free and Rs. 2.90 will be charged per thousand on the
amount deposited above Rs. 50,000 limit.

4) KIDS ADVANTAGE ACCOUNT

This account is specially designed keeping customer’s child future in mind. Customer
must have/open a Savings Account in HDFC Bank and invests a sum of Rs. 10,000 in a
Fixed Deposit in child’s name, and then a Zero Balance Kid’s Advantage Account
linked to the FD is opened in the child’s name with customer as guardian.

Features and benefits

For their Growing Needs

• Free Education Insurance cover of Rs.1,00,000/- in the event of death of the
parent / guardian through vehicular accident by road, rail or air to safeguard the
future of your child.
• ATM/International Debit Card will be issued for children between 7-18 years of
age in the child's name with your permission. The amount your child is able to
withdraw is Rs. 1,500/- at ATMs or spends Rs. 1,000/- at merchant locations.
• Your child need not even search for an HDFC Bank ATM. He/she can make 3
cash withdrawal transactions from SBI/Andhra Bank ATMs per month, absolutely
free.
 • Free personalized chequebook for your child.
• Monitor the transactions of your child's account with the free quarterly physical
statement of account or free monthly Email Statement of account.
• Free NetBanking for you to monitor your child's account.
• Free SMS/Email alerts informing you about the account transactions.

For their Secured Future

• Opt for standing instruction to transfer any amount from your account to your
Kid's Advantage Account every month (Minimum value = Rs. 500/- & Minimum
tenure = 1 year).
• Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 10,000/-,
the amount in excess of Rs. 5,000/- will automatically be transferred into a Fixed
Deposit for 1 year 1 day, in your child's name, by signing in for our sweep-out
facility.
• You can also opt for systematic investments in mutual funds from the Kid's
Advantage Account in your child's name.

5) FAMILY SAVINGS GROUP

The persons who can apply for Family Savings Group are:
• Existing customers – having one or more accounts with us (Savings / Salary /
NRI / Salary Reimbursement / Kid’s Account) at the same or different
branches.
• New customer – you and your family members intend to have one or more
accounts with us..
Features and benefits
• Free International Debit Card for all account holders, for life.
• 5 free transactions on SBI ATMs per month per group.
• Gold Debit Card at Rs. 250 for all account holders.
• 2 free DDs on HDFC Bank locations, per account per month (up to a limit of
Rs.25,000 per day).
• Sweep-In facility to a nominated saving account from other accounts in the
group.
• Free one view to access all your accounts.
 • Free National Electronic Funds Transfer facility, Net Banking, Phone Banking
& Mobile Banking.
• 25% off on annual locker rentals.
• Folio maintenance charges on Demat account waived for first year for all
account holders.
• Preferential pricing on credit cards.

6) PENSION SAVINGS ACCOUNT

A Pension Saving Account is a Zero Balance Account that accumulates your pension
over the years. It comes with a free International Debit Card and facilities like Phone and
Net Banking. You can access this Account from any branch within the HDFC network
and also request for transfer to another bank.

Features and benefits

• The Pension Saving account is a Zero Balance Account.
• Timely credit of receivables
• Free International Debit Card.
• Enjoy facilities such as NetBanking, PhoneBanking, BillPay, ATM facility, inter-
city and inter-branch banking.
• Pension Accounts are transferable from one branch/bank to another.
 LIMITATIONS AND FINDINGS
LIMITATIONS
The main limitations of the study are:

• The sample size was quite small which is unable to represent the whole universe.

• It was found that many of the respondents did not have any knowledge of the
product.

• The non-cooperative nature of many of the respondents acted as constraints.

• Throughout this project report we can measure the potential of the bank in the
selected area but cannot measure the capabilities, skills and efficiencies of the
Customer.

ADVANTAGES OF HDFC BANK:

HDFC Bank has many advantages over MNC Banks. Some of its important advantages
are mentioned below:
1. Since HDFC Bank is the largest profit-yielding Bank among other private sector
banks, customers are attracting towards it.

2. In HDFC Bank, number of customers are limited that is why, quality of services
provided to them are good.

3. Customers reaching to the HDFC branches are of higher profile and well
educated so; it becomes easier for the employees to make them aware about the
products features and formalities.

This advantage also helps employees to convince customers for further

investments.

4. Net Banking, Phone Banking, Insta Alert, Anywhere Banking etc. are the
major facilities provided by the Bank to its customers.

5. Every branch of HDFC Bank are well furnished and fully air-conditioned with
the latest technologies.

6. HDFC Bank is located on every two kilometers in metropolitan cities which is

very convenient for the customers.

7. It has more than 1500 ATM’s all over the country, by which customer can easily
deposit and withdraw his money from any location.

8. In its certain products like Saving Max Account, third party transactions are
also allowed.

9. Since its minimum depository amount is Rs. 5000 in Saving Account, it is a bank
of higher profile people.

10. In HDFC Bank, if any customer is maintaining AQB (Average Quarterly

Balance) 0f Rs. 2,00,000 – 3,00,000 continuously for 1-2 years, they will get the
facility of PREFFERED CUSTOMER.

11. After being the customer of HDFC Bank, customer can pay his Utility Bills by
sitting at his home only through the facility of Net Banking.
 12. It also gives special considerations to its women customers also. It provides the
facility of WOMEN ADVANTAGE CARD to them through which they can:

• Pay their utility bills totally free of cost.

• Get 50% discount on Locker Facility on HDFC branches.

• On every purchasing they will get 0.5% cash back.

• Get accidental insurance of Rs. 2,00,000.

13. In HDFC Bank, the main emphasis is given on retaining the customers forever.

14. HDFC Bank focuses on quality of customers instead of quantity.

15. Customers can save his lots of time after becoming the customer of HDFC Bank.

DRAWBACKS OF HDFC BANK:

There are certain advantages of HDFC Bank, which acts as its drawbacks also. Some of
its important drawbacks are as follows:

1. The main disadvantages of this bank are that in this bank there is no Job
Security to its employees. If they fail in achieving their targets, they will be fired
out.

2. Employees always feel pressure of work like 8 a.m. to 8 p.m. as working

schedule, completing targets assigned to them. They cannot work freely.

3. Instead of opening branches on every two kilometers in metrocities, it should also

focus on urban and semi-urban areas.

4. One of its main advantages is its Net Banking Facility but it is useless for the
customer who is not having any knowledge of computers. This shows that it does
not follow the concept of KYC i.e. know your customer.
 5. The policies of bank are such that it is beyond the reach of low profile people i.e.
low profile people cannot operate this bank.

A few reasons why many people would not like Axis Bank are

1] Call handlers are not trained enough.

2] Customers have poor product knowledge.

3] Not accessible 24 hours.

4] Query is not attended and sometimes never understood by these CSA agents.

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

The environment became more challenging in the June ’08 quarter as inflation continued
its double-digit run. The RBI has hiked repo rates and cash reserve ratio to combat
inflationary pressures. As a result, banks have increased their prime lending rates and
deposit rates. The increase in interest rates took a much heavier toll on ICICI bank as its
advances grew by just 13 per cent y-o-y of end ’08. Stagnant business and treasury losses
resulted in ICICI posting a 6 per cent y-o-y fall in profit for the June ’08 quarter.
However, HDFC bank registered a 47 per cent growth in its advances on a consolidated
basis over the same period.
Apart from stability in business and earnings growth, HDFC bank fares much better than
ICICI bank on other important parameters as well. HDFC bank’s return on assets has
always been higher than that of ICICI. The former’s net interest margin stood at 4.1 per
cent in the June ’08 quarter, compared to ICICI’s 2.4 per cent. This is because HDFC
Bank’s cost of deposits is the least in the industry, due to higher share of current account
and savings account (CASA) deposits in the total deposits. HDFC bank’s non performing
assets are also much lesser than that of ICICI bank. This shows that HDFC bank is a
quality player, while ICICI bank is a volume player. When volume growth or loan growth
reduces, ICICI bank’s performance also takes a hit.

Axis bank stands apart from its private sector competitors - ICICI bank and HDFC bank -
in one crucial respect. While the two other banks have envisaged retail banking as a key
of strategic emphasis – with the share of retail business (both on the funding and asset
sides) growing strongly year after year – the share of retail business, particularly retail
assets, has actually come down quite sharply in the case of Axis bank.

The numbers here are quite interesting. For ICICI bank, retail loans now (as of June
2007) account for as much as 70 per cent of the bank’s total loan book of Rs. 2,00,000
crore. For HDFC bank, retail assets are around 57 per cent (Rs. 28,000 crore) of the total
loans as of March 2007.

In the case of Axis bank, retail loans have declined from 30 per cent of the total loan
book of Rs. 25,800 crore in June 2006 to around 23 per cent of loan book of Rs. 41,280
crore (as of June 2007). Even over a longer period, while the overall asset growth for
Axis bank has been quite high and has matched that of other banks, retail exposures grew
at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis bank is part
of a deliberate business strategy, this could have significant implications (not necessarily
negative) for the overall future profitability of the business.

Despite the relatively slower growth of the retail book over a period of time and the
outright decline seen in the past year, the bank’s fundamentals are quite resilient. With
the high level of mid-corporate and wholesale corporate lending the bank has been doing,
one would have expected the net interest margins to have been under greater pressure.
The bank, though, appears to have insulated such pressures. Interest margins, while they
have declined from the 31.5 per cent seen in 2003-04, are still hovering close to the 3 per
cent mark. (The comparable margins for ICICI bank and HDFC bank are around 2.60 per
cent and 4 per cent respectively. The margins for ICICI bank are lower despite its much
larger share of the higher margin retail business, since funding costs are also higher).

HDFC bank is the second largest institution after ICICI in private sector but it is higher in
profits than ICICI bank.

Some customers are not satisfied with the facilities and services, which are provided by
HDFC bank. The customer wants to increase the number of ATMs and more branches of
HDFC bank in the rural as well as in the hilly areas like Kullu, Manali, Kashmir, Shimla
and many more. Customers are not satisfied with the non-maintenance charges on
different products.

The Axis Bank stock has outperformed its peers in the private sector with a 16.1 per cent
gain in its price over the past one year, when other private bank stocks have failed to
generate positive returns. A lower exposure to retail lending, where there are concerns
about credit quality, has helped the stocks’ performance.

At Rs 713, the stock trades at a price-book value of around 2.8 times, which is at a
discount to HDFC Bank but at a premium to most other private banks. Investors can
nevertheless buy the stock, given the growth momentum in the business.

Axis Bank reported strong financial results in FY-08 and continued its good performance
in the first quarter of this year, even as other private banks have turned in unimpressive
numbers.

This growth may be moderate, as growth in the loan book slows down on the corporate
and retail side with trading operations also likely to yield lower returns. However, this
may be offset by growth in fee income and rapid branch expansion in Tier-1, Tier-2
towns and the small and medium enterprise (SME) segment.

HDFC Bank is expecting a 35-per cent growth in its credit card portfolio this year despite
concerns over the impact of increasing interest rates. Out of 4.2 million, 70 per cent of
the cards are with the internal customers of the bank while the rest are in the open market
base. On the strategy of the bank in its credit card business, the official said it would be
an entry product after a savings account with the bank for many people.
HDFC Bank has reported a net profit of Rs 464.4 crore in the first quarter of the fiscal.
This is a 44 per cent increase against Rs 321 crore in the corresponding quarter of the
previous year.

Since the merger of Centurion Bank of Punjab (CBOP) and HDFC Bank became
effective from May 23, 2008, the financial figures of the merged entity are not
comparable to HDFC Bank’s stand-alone results last year.

The total balance sheet size has grown by 59.5 per cent from Rs 105,695 crore to Rs
1,68,590 crore. Centurion Bank of Punjab has contributed to 20 per cent of the balance
sheet. Net interest margin was at 4.1 per cent, against 4.2 per cent in the previous year.
CBOP’s NIM in the previous year was 3.6 per cent. The total income has grown by 60
per cent and net interest income has grown by 75 per cent.

Under the initiative, ICICI Bank, in collaboration with the MV Foundation, Kalinga
Institute of Social Sciences and Project Givelife-Shriram Social Welfare Trust, will
provide formal elementary education to 1,00,000 children in the age group of 6-14 years
in 2008-09.

RECOMMENDATION AND SUGGESTION

During the period of my extensive research I have come to know that there are few
weaknesses in the Banks. Customers have several problems regarding some products and
working style of the bank, which the company should overcome. These are:

1. In HDFC Bank, the Non-Maintenance charges on some of its products like

current account, etc. is very high. So the company should take decision to
minimize the Non-Maintenance charges.

2. HDFC Bank is not having much number of branches or ATMs. So the company
must have to increase the number of branches and ATMs by which they can easily
attract to the most of the customers.

3. HDFC Bank should try to follow the concept of KYC i.e. KNOW YOUR
CUSTOMER.
 4. The customers face problems in Documentation, so it should overcome.

e.g. the passport indicates both the ID and address proof of the customer, which is
accepted by all other banks, but HDFC Bank considered it only for ID proof of the
customer but not for the address proof.

5. Advertisement and promotion could be through all existing media like print,
audio and visual.

6. Most of the customers are satisfied with the services and facilities provided by
the HDFC Bank but according to the view of some customers, the bank is not
providing services according to their commitments.

7. The charges of demand draft should be reduced and local cheques should be
provided on free of cost in all types of current accounts.

8. New schemes for customers should introduce time to time.

9. Complaints of customers must be handled efficiently and give them the better
facilities.

The merged entity being the country’s seventh largest bank may have a challenging phase
ahead, as it has to not only weather upward pressure on interest rates and rising yields,
but may also have to integrate Centurion Bank of Punjab

The Axis bank should plan to open up more Priority branches.

ICICI bank should focus on private banking, wealth management and advisory services,
and raising low-cost deposits within the retail segment this fiscal.
BIBLIOGRAPHY

MAGAZINES:

• Indian Banking

• Business World

JOURNALS:

• Effect of MNC Banks on Nationalized Banks

• Increasing competition between banks

WEBSITES:

• www.hdfcbank.com
 • www.google.com

• www.axisbank.com

• www.icicibank.com

• www.hindustantimes.com

QUESTIONNAIRE

Customer’s Name:
Address:
Contact No.:
1. Occupation
a) Student b) Housewife
c) Professional d) Govt. employee
e) Others

2. Income:
a) Below Rs. 5000 b) Rs. 5000 to Rs. 10000
c) Rs. 10000 to Rs.15000 d) Above 15000

3. Are you aware of any Bank named “HDFC Bank”?

a) Yes b) No c) No Opinion
4. In how many banks do you have accounts?
a) One b) Two
c) More than two d) None

5. What type of account you have in your Bank?

a) Saving Account b) Current account
c) Fixed Deposit c) Other

6. For how long have you been associated with any bank?
a) Less than 5 years b) 5-10 years
c) 10-15 years d) 15-20 years
e) Above 20 years

7. What new features & service attracts you to open account in any banks?
a) Cash Pick-up b) Mobile ATM
c) Net Banking d) Others

8. What would you prefer in banks?

a) Only Attractive features b) Better services
c) Both

9. Do you face any difficulty in opening any new account in a bank?

a) Yes b) No c) No Opinion
If yes, what type of difficulty?
_______________________________________________________

10. Are you aware about Zero Balance account?

a) Yes b) No c) No Opinion

11. Do you think that Zero balance Account schemes are economical for customers
and will attract them?
a) Yes b) No c) Can’t Say
12. Are you satisfied with the sales executive services?
a) Highly satisfied b) Satisfied
c) Dissatisfied d) No opinion

13. Do you like to suggest any changes in the banking services or otherwise?
_______________________________________________________

14. In which financial product do you like to invest your money?

a) Mutual Fund b) Fixed Deposit
c) Life Insurance d) Share