Index

Acknowledgement Declaration History of Indian banking system Company introduction Organization profile Business profile Salary account of HDFC BANK Research methodology Objectives Research design Sample design Data collection method Data analysis Detail analysis Comparative analysis Comparison with other leading banks Swot analysis Interpretations and suggestions Limitations Questionnaire Bibliography

2 3 4 6 7 13 16 22 23 24 25 26 27 28 34 37 48 49 51 52 53

ACKNOWLEDGEMENT

It is my duty to acknowledge with gratitude the generous help that I have received from Mrs. Aanchal Sehgal ( Asst. Vice President, Retail Branch Banking) HDFC BANK LTD. I have had the advantages of her critical advice from her profound knowledge in Retail Banking. She has indeed taken personal interest in preparing an innovative Report on Dimensioning of corporate salary business she has helped me a lot in preparing the project. My sincere thanks are due to all the officers of HDFC Bank for their worthy help and cooperation. I would also like to take this opportunity to express my gratitude towards Mr. Dexter Woodward who helped me in this project through constantly monitoring my progress. Finally, its my pleasure to acknowledge the kind help and cooperation of all the respondents of Gurgaon with whom I met throughout the duration of this project. Sincerely Sarvesh Chadha

DECLARATION

I hereby declare that this project report entitled as Dimensioning of corporate salary business submitted to Institute Of Management And Entrepreneurship Development Pune , in partial fulfillment of the requirement of MBA is a bonafide work done by me and it was not submitted to any other university or institution previously. Sarvesh Chadha I.M.E.D MBA General Div - C

History of Indian banking system Nationalisation

Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The meeting received the paper with enthusiasm. Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969')) and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. These banks contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalisation
In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI
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Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently (2010), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

Company IntroductionHDFC Bank was incorporated in Aug. 1994 and promoted by Housing Development Finance Corporation Limited (HDFC) India's premier housing finance company which also enjoys an impeccable track record in India as well as in international markets. HDFC was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry. HDFC Bank concentrates in four areas - corporate banking, treasury management, custodial services and retail banking. It has entered the banking consortia of over 50 corporate for providing working capital finance, trade services, corporate finance and merchant banking. It is also providing sophisticated product structures, sound advice and fine pricing mainly in areas of foreign exchange and derivatives, money markets and debt trading and equity research through its state-of-the-art dealing room. With its sophisticated and customer friendly facilities & services Including multi-branch access, ATMs & cluster deposits and is well positioned to establish a significant niche for itself in retail banking. In Feb. 2000, Times Bank has been amalgamated with the bank. This is an important milestone in the history of bank as well as Indian banking sector, being the first merger of two private sector banks. This adds significant value to bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower, etc. Recently HDFC BK & Life Insurance Corporation (LIC) forms alliance for online facility for payment of insurance premium. With this facility, LIC policy holders can now pay their insurance premiums through HDFC Bank's on-line payment facility. HDFC BK has become the first private sector bank to be authorized by the Central Board of Direct Taxes (CBDT) as well as the RBI to accept direct taxes, commencing April 01 2001. The taxes will be accepted at specified branches of the bank. Also it has announced a strategic tie-up with a Bangalore-based business solutions software developer Tally Solutions Pvt (TSPL) for developing and offering products and services facilitating on-line accounting and banking services to SMEs (Small and Medium Enterprises).In 2001-02 the bank was listed on the New York Stock Exchange in the form of ADS. Each ADS represents 3 equity shares. Consequent to the issue, the paid up capital of the Bank has increased by Rs.37.42 crore.

Learning from the studyThe process of bank related transaction bank related terms, work environment of HDFC BANK different types of salary accounts offered by the bank. The problems faced by the customers,

their perception about the bank and the brand image of HDFC. How to deal with customers and solve their problems, how to convert a prospect into a real customer for the Bank.

ORGANIZATION PROFILE
COMPANY HISTORY
FORMATION OF THE COMPANY 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.

PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. 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. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory
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compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE
As on 31st March, 2012 the authorized share capital of the Bank is Rs. 550 crore. The paid-up capital as on the said date is Rs. 469, 33, 76,540 (234, 66, 88,270 equity shares of Rs. 2/- each). The HDFC Group holds 23.15% of the Bank's equity and about 17.29 % of the equity is held by the ADS / GDR Depositories (in respect of the bank's American Depository Shares (ADS) and Global Depository Receipts (GDR) Issues). 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has 4, 47,924 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

The Amalgamation
On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merged entity will have a strong deposit base of around Rs. 1, 22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs. 1, 63,000 crore. The amalgamation added significant value to HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a bigger pool of skilled manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in the New Generation Private Sector Banks. As per the scheme of amalgamation approved by

the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2,544 branches spread in 1,399 cities across India. All branches are linked on an online realtime basis. Customers in over 500 locations are also serviced through Telephone 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 the centers where the NSE/BSE has a strong and active member base.

The Bank also has 9,333 networked ATMs across these cities. Moreover, 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.

MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July 2010. Mr. Vasudev has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an illustrious career in the civil services and has held several key positions in India and overseas, including Finance Secretary, Government of India, Executive Director, World Bank and Government nominee on the Boards of many companies in the financial sector. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and
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before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's 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. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. 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.

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in
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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.

RATING
I. Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit program has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". CARE has also rated the bank's Certificate of Deposit (CD) program "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "AAA" rating to the Bank's deposit program, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt program and Upper Tier II Bond issue. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.

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II. Corporate Governance Rating The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an expectation on its "balanced value creation and corporate governance practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

PRODUCT SCOPE:

HDFC Bank offers a bunch of products and services to meet the every need of the people. The company cares for both, individuals as well as corporate and small and medium enterprises. For individuals, the company has a range accounts, investment, and pension scheme, different types of loans and cards that assist the customers. The customers can choose the suitable one from a range of products which will suit their life-stage and needs. For organizations the company has a host of customized solutions that range from funded services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

The products of the company are categorized into various sections which are as follows: Accounts and deposits. Loans. Investments and Insurance. Forex and payment services. Cards.

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Business Profile
HDFC Bank caters to a wide range of banking services covering both commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business areas:A. Wholesale Banking Services The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a small extent, emerging mid-sized corporate. For these corporate, the Bank provides a wide range of banking services, including working capital finance, trade services, transactional services, cash management, etc. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking 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 and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. B. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

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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 2010, the bank had a total card base (debit and credit cards) of over 14 million. The Bank is also one of the leading players in the merchant acquiring business with over 90,000 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. 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.

HDFC Bank has three services strategy:

1. People management
2. Physical Environment Management 3. Process Management

People Management
HDFC Bank has well qualified team of professional team of professionals who are experts in customer relationship management. They have achieved. Thus level of expertise through training and motivation program taken up at regular intervals because of this high levels of competence HDFC Bank is often of called as Indian Foreign Bank.

Physical Environment Management

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Every Branch and ATMs of HDFC Bank is located in the posh area of the locality it helps the bank to create a good image among customer. Further it helps customers access the bank facilities in leisure time that is while marketing or on way to some important destination. Further all ATMs and branches are fully air conditioned with relaxing environment which puts visitors at ease.

Process Management
HDFC Bank has simplified procedures for transaction and opening accounts similarly it has done away with many non essential procedures which helps customers reduce stress and under tension.

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Salary accounts of HDFC Bank Types of salary accounts.

Overall benefits.

Premium salary accountFeatures

Zero Balance Savings Account Free payable at par cheque book @ 25 cheque leaves per quarter 5 Free transactions per month at Non - HDFC Bank ATMs in India Free for life Titanium Debit Card for the primary applicant with cash ATM withdrawal limit of Rs. 50,000/- per day and POS usage limit of Rs.75,000/- per day Free for life add-on International Debit Card for the Second Holder Free Personal Accidental Death Cover of Rs. 5 lakh* Anywhere Banking across our extensive Branch and ATM network Free Monthly Account Statements (Option of E-Mail Statements) Free Passbook facility available at home branch for account holders Free DDs / MCs up to Rs 25,000 per instrument payable at HDFC Bank branch locations Free mobile and e-mail alerts (InstaAlerts facility) Free BillPay (Utility payments) Free Phone banking, Mobile banking and Net banking facilities

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Electronic Funds Transfer options (NEFT / RTGS)

Regular salary account-

Features

Zero Balance Savings Account Free payable at par cheque book @ 25 cheque leaves per quarter 5 Free transactions per month at Non- HDFC Bank ATMs in India Free for life International Debit Card for the primary applicant with ATM cash withdrawal limit of Rs 25,000 per day and POS usage limit of Rs.40, 000 per day. Add-on International debit card for secondary holder (Free for the first year) Free Personal Accidental Death Cover of Rs. 1 lakh* Anywhere Banking across our extensive Branch and ATM network Free Quarterly Account Statements Free Monthly Account statements by e-mail (Optional) Free Passbook facility available at home branch for account holders Free DDs /MCs up to Rs. 25,000 per instrument payable at HDFC Bank branch locations Free mobile and e-mail alerts (InstaAlerts Facility) Free Utility payment facility (BillPay) Free Phone banking, Mobile Banking and Net Banking Electronic Funds Transfer options (NEFT / RTGS)

Classic Salary Account

Zero Balance Savings Account Free regular cheque book @ 25 cheque leaves per quarter

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5 Free transactions per month at Non- HDFC Bank ATMs in India Free lifetime International Debit Card for the primary applicant with an ATM cash withdrawal limit of Rs. 25,000 per day and POS usage limit of Rs. 40,000 per day. Free Half Yearly Account Statements Free Monthly Account statements by e-mail (Optional) Free Passbook facility available at home branch for account holders. Free DDs / MCs up to Rs. 25,000 per instrument, payable at HDFC Bank locations Free mobile and e-mail alerts (InstaAlerts Facility) Free Utility payments facility (BillPay) Free Phone Banking, Mobile Banking and Net Banking Electronic Funds Transfer options (NEFT / RTGS)

No Frills Salary Account

Features

Zero Balance Savings Account Access a wide network of branches and ATMs across India. Bank conveniently with free Net Banking and Mobile Banking. Get free InstaAlerts. Use our free IVR based Phone Banking (agent assisted calls will be charged*) Get Quarterly Account Statements. Apply for monthly email statements (optional). Get 1 free cash withdrawal per month at your branch. Additional branch cash withdrawals in a month will be charged at Rs. 50 per transaction. Get a free Passbook. This is available for account holders at their home branch. Use Electronic Funds Transfer (EFT) to transfer funds from your HDFC Bank account to another banks accounts at locations specified by the RBI. Make free unlimited ATM Cash withdrawals at HDFC Bank ATMs. Get your first cheque book consisting of 25 leaves for free. Additional cheque books will be charged at Rs. 5 per cheque leaf.

What are the eligibility criteria for a No Frills Salary Account?

To be eligible for a No Frills Salary account you have to be:

Employed with a corporate that has a salary account relationship with HDFC Bank

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Earn a salary that is less than Rs. 4,000 a month

Defence Salary Account

Features

Zero Balance Savings Account Free transactions at Non HDFC Bank ATMs in India Free for Life Titanium Debit Card for the Primary Account holder with ATM cash withdrawal limit of Rs. 50,000/- per day and Point Of Sale usage limit of Rs. 75,000/per day

Free Add-on International Debit Card for all Secondary account holders Free Additional ATM Card for Personnel Below Office Rank (PBORs) Free Family card (Pre-paid card) Free Personal Accidental Death Cover of Rs. 5 lakhs* Anywhere Banking across our extensive Branch and ATM network Free Quarterly Account Statements Free Monthly Account statements by e-mail (Optional) Free Passbook facility available at home branch for account holders Free Unlimited DDs /MCs payable at HDFC Bank branch locations Free mobile and e-mail alerts (InstaAlerts Facility) Free utility payment facility (BillPay) Free Phone Banking, Mobile Banking and Net Banking Electronic Funds Transfer options (NEFT / RTGS)

Payroll Account What can you do online?

With your online Payroll Account you can:

Download/Request for an account statement through NetBanking Transfer funds through NEFT / RTGS. Request for a Demand Draft Request for a cheque book

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Stop cheque payments Register for email statements

Did you know?

You can enjoy 5 Free transactions per month at any non HDFC Bank ATM in India.

You can also benefit from

Our Net Banking facility to enjoy the convenience of banking from your home or office. Register for Net Banking

Reimbursement Account
Features

Zero Balance Account Free Cheque book (On request) Existing Debit Card to be linked Debit Card issued on request (Charges applicable) Free Half Yearly Account statements Free Monthly Account Statement by email (Optional) Free mobile and e-mail alerts (InstaAlerts) Free Phone Banking Free Mobile Banking Free Net Banking

How do I open a Reimbursement Account?

To open a Reimbursement Current you have to follow the procedure mentioned below:

You will need an Account Opening Document (AOD) from HDFC Bank. (If you have just joined, first request your company to open a Salary Account for you). Mention your Salary Account number and your Debit Card number on the AOD so that your Debit card can be linked to both your Salary Account and your new Reimbursement Account.

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Request your company to directly credit cash payments to your Reimbursement Account.

FAQS What are the documents required to open a Salary Account with HDFC Bank?

Employment Confirmation from your company Photo ID Address Proof

Can I use my existing Salary Account if I have changed employers?

Yes, the same account can be continued subject to your new employer having a Corporate Salary arrangement with HDFC Bank. Kindly submit your new employment confirmation from your company to the bank

Is employment confirmation mandatory for me to open a Premium or a Regular Salary Account?

Yes, employment confirmation is required to ensure that you are an employee of the company.

Is address proof a mandatory requirement?

Yes, address proof is mandatory while opening an account.

Can a Company ID card be accepted as a Photo ID document?

No, a Company ID cannot be accepted as a Photo ID document. A government issued photo ID card is mandatory.

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RESEARCH METHODOLOGY
A questionnaire was prepared to gauge the awareness of HDFC Bank in Retail banking sector. Survey has been done out of the bank covering a wide cross-section of the society. The question was presented in one to one interview with each of the respondents. Responses of the concerned persons had been thoroughly analyzed. Conclusions had been arrived at using the response of the concerned persons and not on questionnaire alone. Generally speaking, people are quite flattered by attention and this sometimes overcomes any inhibitions so that matters quite secret are paraded before the observer with seeming abandon. At other times, particularly where an issue has been the subject of recent press attention, the shutters go up and there is no way in. All you can do in such circumstances is to give up and try something else likely to be more productive - you haven't the time to spend on lengthy negotiation. Crucial to the business of initially gaining access is the whole matter of assurances of confidentiality, anonymity, etc, which I consider below. Your stance, once granted access, depends on how much of an active participant you want to be in the arena you are observing the more obviously committed you are to one particular stance or ideology the more others will take this into account when revealing their thoughts or their actions to you. In this context the questionnaire was not a fully fledged one and was made with an intention of getting the main information as hr persons and other company officials dont have that much time to spare and also a long questionnaire may irritate them. So the questionnaire used in my research was really crisp and was aimed at getting the required information in the least time. Also the questionnaire was used for basic purpose only and after that the concerned persons were contacted through regular calling.

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Objectives
Primary ObjectivesTo open new salary accounts. Promote the benefits of salary account of HDFC. To find different ways to convince customers. To study brand image of HDFC. To increase the business of bank.

Secondary ObjectivesDetermine the need and purpose of salary a/c. To understand the criteria to open a salary a/c. To offer suggestions based on the findings.

Geographical scope-

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This project was carried on in gurgaon but it can be taken as a measure to know the popularity of salary accounts of HDFC in India as gurgaon is a big city and the demographics of this area matches that of various cities. Also the number of corporate in gurgaon is very high thus a project conducted here can match the requirements of any city.

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular study. A research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to their search purpose with economy in procedure. Research design is broadly classified into three types as: Exploratory Research Design Descriptive Research Design Causal Research Design

DESCRIPTIVE RESEARCH DESIGN:

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Descriptive research studies are those studies which are concerned with described the characteristics of particular individual. In descriptive as well as in diagnostic studies, the researcher must be able to define clearly, what he wants to measure and must find adequate methods for measuring it along with a clear cut definition of population he want to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximize reliability, with due concern for the economical completion of the research study.

SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique to the procedure adopted in selecting items for the sampling designs are as below:

SAMPLE SIZE
Sample method Survey period

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SAMPLING METHOD:
In this marketing research project, I am using Random sampling method

SAMPLE SIZE:
The sample size is 100 companies. Conclusions had been arrived at using the response of The questionnaire.

SAMPLE TYPE
Area Sampling Area of sampling is GURGAON.

DATA COLLECTION METHOD

There are two types of Data Collecting method. Types of data Primary data Secondary data

Primary data:

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Primary data means data that are collected by different techniques like questionnaire, Depth interview, Survey, Schedules etc. In this project I have collected data by Questionnaire, interviews.

Secondary data:
Secondary data means data that are already available i.e.: they refer to the data which have already been collected and analyzed by someone else .Usually published data are available in: (a) Various publications of the central, state or local governments. (b) Various publications of the foreign governments. (c) Technical and trade journals.

Sources of Secondary data: Books, magazines and newspapers. Reports and publications of various associations connected with industry. Internet

DATA ANALYSIS:

DATA PROCESSING AND ANALYSIS

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Processing & Analysis the collected data: Once the field survey is over and questionnaire have been received, the next task is to aggregate the data in a meaningful manner. A number of tables are prepared to bring out the main characteristics of the data. The researcher should have a well thought out framework for processing and analyzing data, and this should be done prior to the collection. It includes the following activities (I) Editing: The first task in data processing is the editing. Editing is the process of examining errors and omissions in the collected data and making necessary corrections in the same. (ii) Coding: Coding is the procedure of classifying the answer to a question into meaningful categories. Coding is necessary to carry out the subsequent operations of tabulating and analyzing data. If coding is not done, it will not be possible to reduce a large number of heterogeneous responses into meaningful categories with the result that the analysis of data would be weak and ineffective, and without proper focus.

(iii)Tabulation: Tabulation comprises sorting of the data into different categories and counting the number of cases that belong to each category. The simplest way to tabulate is to count the number of responses to one question. This is also called universal tabulation. The analysis based on just one variable is obviously meager. Where two or more variables are involved in tabulation, it is called vicariate or multivariate tabulation.

(iv) Analysis : After the all three above steps, the most important step is analysis of the data. Under this step, they can use the various tools of the analysis such as Central Tendency, Dispersion, Correlation co-efficient, Regression Analysis, Test of Hypothesis etc.

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Figure 1

There were 100 corporates visited by me and in the process I collected the above information. Out of those visited there were some that had very few employees or their employees were not permanent and were hired on contractual basis. Thus they dont have salary accounts as they give direct payments. so out of 100 corporates visited 5 of them had no criteria of salary accounts. The above figure shows this information only, and so not much time was spent on procuring information from them as they couldnt provide any business to bank.

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Figure 2

The next step was to see how popular HDFC bank is leave aside salary accounts in other accounts also how much popular it is and what is the brand image of HDFC . so information was collected as to how many companies were having banking relations with HDFC out of the 100 companies that I visited 48 companies were doing banking with HDFC while the rest 52 were not having any type of banking relations with HDFC. This provided another insight regarding the popularity of HDFC , it is fairly popular with the corporate and so it needed to tap in this popularity .other banks are still trying to build or raise their popularity meter HDFC already has that. so it can build its salary account base on this . the above figure shows this data only as to how many companies are banking with HDFC and how many are not.

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Figure 3

As seen from the scoping done earlier in gurgaon there is huge potential in the market that HDFC Bank can capture with proper strategy. in the above figure also we can see that about 38 companies have salary accounts with HDFC while others have salary accounts with Axis Bank , ICICI , SBI , PNB , YES BANK. This means that HDFC has around 40% of market share in its pocket but that is not enough seeing the aggressive marketing strategy of other banks such as Axis Bank which has 21% market share. So HDFC should see through this as this is the time when it should focus on its salary accounts as now it is leading .There is 60% corporate which do not have HDFC salary account .

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Figure 4

Though HDFC Bank has many customers but then also there are certain factors that have made some customers to shift to another bank, thus it is the need of the hour to rectify certain things that harm the relations .

The most important for the bank is to improve the update scene . there are many customers who are not aware of many new things at HDFC this is because of poor communication . so HDFC should focus on this as those customers who leave share their bad experiences with other people and in this way more people go for other banks . The other thing that HDFC needs to focus is service provided to the customers in various online forums customers who were not satisfied with the level of service wrote negative things about HDFC bank . many people complained that for very little things or if some new service is to be activated then they had to go to the branch instead of just accessing it online .other things also need some improvement but the above two are those that need attention immediately .

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Which banks account provides greater flexibilityFigure 5

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Comparison with other leading banks in terms of-

Benefits offered

Charges charged

Area coverage strategies.

With AXIS BANK-

In terms of benefitsOffered Hdfc does not stand at par with its competitors as axis bank offers more than Hdfc in terms of more POS limit and withdrawal amount. It also scores as it gives purchase protection to its customers as it is genuine because with more purchase limit there is a probability that there will be more frauds and more losses so keeping this in mind axis bank offers purchase protection to its customers thus increasing their faith in them , while Hdfc does not keeps this in mind even if it increases its POS limit and withdrawal limit there is no surety that customers will be attracted as they know that the frauds they may face are not insured. Two cheque books are given to all axis bank customers while there is only one given to Hdfc customers.

Charges Another point that in my opinion attracts customers is the charges levied for various services whether the services are for getting the customers for the first time or in case of default. Hdfc

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does not charge its customers more than its counterparts. This explains its wide network in the ncr region.

Area coverage strategies Hdfc bank scores in this area as it has far wide network coverage than other banks. Hdfc bank has wide network coverage in gurgaon and Delhi region and this insures proper service to its huge customer base but it should constantly work on building its customer base. Axis Bank salary account at a glance-

Convenience in banking:

Bank at any of our over 1600 branches and a network of over 10000 ATMs spread across more than 1000 centers

Two free multi-city at par cheque books per quarter Two free Pay Orders / Demand Drafts drawn at Axis Bank locations per month No commission charged on collection of outstation cheques drawn on Axis Bank locations

Electronic Fund Transfer facility across all banks in India Internet Banking with secure fund transfer facility (with 2-factor authentication) to self and third party accounts

24x7 convenience at no charges with Axis Mobile Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc

Free Quarterly statement in physical form and option of free monthly e-statements

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Debit Card:

Free MasterCard Titanium Rewards Debit Card for primary accountholder with annual charges waived

Unlimited free cash withdrawals on all ATMs (Axis Bank ATMs and Other Bank ATMs)

Enhanced limit of Rs.50,000 on cash withdrawals Purchase transaction limit of Rs. 2,00,000 in a day Nil fuel surcharge Access to lounge facilities at domestic airports Reward points on domestic spends Occasion based cash back offers

Protection for self, family and assets:

Personal Accident Cover of up to Rs.5 lakh on MasterCard Titanium Rewards Debit Card, as per Bank's extant guidelines [With effect from 01.05.2011, to keep the personal accident insurance cover activated, the Cardholder should have made a purchase transaction in 90 days prior to the day of the incident and received salary credits in at least two of the three months preceding the date of the incident. A report would also have to be made to Axis Bank within 60 days of a personal accident or 30 days of loss of card.]

Zero Lost Card Liability on Debit Card: As an Axis Bank Debit Card customer, you will be insured for risk of loss due to fraudulent use of a lost or stolen or missing debit card. All you need to do is communicate the loss of your card by calling our 24-hour customer service number.

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Purchase protection: All consumer durable goods purchased using the debit card are insured against fire, natural calamity, burglary and housebreaking up to 90 days from the date of purchase, eligible for a combined lost card liability and purchase protection of up to Rs. 1,75,000

Life Insurance solutions in association with Max New York Life Insurance Co Ltd Non-life insurance solutions in association with Bajaj Allianz General Insurance Co Ltd

Benefits for the family:

Easy access to cash with Master Card Titanium Debit Card for joint accountholder with no issuance charges. Annual charges of Rs.150 waived, subject to total purchase transactions in the year exceeding Rs.30,000

One zero balance savings account can be opened for a family member anywhere in the country

In case of exigency:

Overdraft facility with extended limit of 2/3 times of the net salary (average of 3 months) as per eligibility. This limit is capped at Rs.1,00,000 which is available for tenure of 12 months

Preferential rates on Personal Loans, Auto Loans and Home Loans, as per eligibility criteria

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With ICICI BANK-

In terms of benefits offeredHdfc Bank offers certain benefits that make it a more preferred one. Free for life titanium debit card for the primary holder and free debit card free for the first year for the second person. also it does not charges for the NEFT transactions as it used to do earlier .also Hdfc has a wide network coverage than other banks and that helps it to provide higher service to customer.

Charges charges play a huge role in deciding which bank to go with . Hdfc does not charges its customers for many things such as debit cards , account statements . Also ICICI Bank does not have different salary accounts while HDFC has .

ICICI Bank Salary Account at a glanceAdvantages to employees Your employees automatically become ICICI Bank Salary Account holders with special benefits and privileges and receive instant salary credit. The benefits include International debit card, access to Phone Banking and Internet Banking, Demat accounts, and a host of other services to complement their savings account. Here are some of the features of ICICI Bank Salary Account:

Welcome-Kit No more waiting for weeks to get your chequebook and debit cards. ICICI Bank Salary Account customers will have the facility of filling up a form and getting their chequebooks and debit cards immediately.

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Money Multiplier : 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. more

Mobile Banking Your employees can receive alerts on their mobile handsets providing them information about their ICICI Bank Accounts and ICICI Credit Cards Account. Now customers can also know the balance and other details of their accounts by requisitioning for it through SMS.

Debit Card We offer an International N-Cash Debit card to our Salary Account customers to provide them access to our extensive ATM network. The card also allows them to shop at over 11,000 merchant establishments. N-Cash is a Visa electron card, which gives the cardholder access to more than a million merchant establishments and Visa ATMs all over the world.

Free Internet Banking ICICI Bank Internet Banking, ICICI Bank's Internet Banking facility gives your employees the freedom to operate their account from the convenience of their home, office or from anywhere in the world.

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Online Funds Transfer No need for cash withdrawals and cheque deposits. We give your employees the facility to transfer funds online from any part of the world.

Phone Banking Your employees can use our phone banking facility to do banking transactions through our customer care centers.

Free Utility Bill Payments No queues. No wasted minutes. Now your employees can pay utility bills like electricity, phone bills etc. using ICICI Bank Internet Banking.

Reimbursement Account If you opt to disburse/reimburse the travel, food etc. expenses via reimbursement accounts, a reimbursement account can be opened simultaneously along with the Salary Account savings bank account, which would be linked together with the debit card already held by your employee.

Free Remittance Facilities Salary Account customers can avail of free remittance (demand drafts, cheques, pay orders) up to Rs.25,000 on ICICI Bank network.

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Cash Delivery and Cheque Pick-up Facility If your office is located far away from our branch or ATM, we can, on request deliver cash to you or pick up your cheques to be deposited.

Bureau de change Your employees can meet all their foreign currency needs, buy internationally valid travelers cheques issued by Thomas Cook, American Express, VISA and avail of a host of other travel related services.

Loans Personal Loans As a special offering, our Salary Account customers would be extended personal loans.

Home Loans Home Loans from ICICI Bank comes to you with attractive interest rates and personalized service in the comfort of your home.

Car Loans Car Loans from ICICI Bank come to you with instant approval, hassle-free documentation and competitive interest rates.

Two Wheeler Loans Two-Wheeler loans from ICICI Bank come to you at attractive interest rates coupled with a flexible financing option.

Loans Against Securities ICICI Bank will advance loans to Salary Account holders against securities and mutual funds owned by them.

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Investment Services

Demat Services A Demat Account will let your employees transact in shares instantaneously in a safe and secure manner.

Relief Bonds/ Mutual Funds/ Insurance Salary Account customers can now invest in Government of India relief and savings bonds, a basket of mutual funds, foreign exchange facilities and Insurance products through ICICI Bank.

Gold Coin Employees can buy 24 karats Pure Gold, which ICICI Bank brings to you. Each coin comes to you straight from Switzerland. Refined to 99.99% fine gold and sealed with a unique Certificate of Authenticity- guaranteeing you its purity.

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SBI Corporate salary account -

This package offers many concessions in service charges, interest rates on loans, etc. to employees of Corporates and Institutions which include Schools, Colleges, Universities, Government establishments/ organizations, Service organizations such as Hospitals, Hotels, Transport Corporations etc. The Package can be specially customized depending upon the business relationship that the Corporate / Institute has with the Bank.

Criteria Minimum 25 Employees Minimum Gross Monthly income Rs 5000/Minimum monthly salary payout of Rs. 1,25,000/- for the employer Available in four variants if Silver, Gold, Diamond and Platinum depending on the monthly income of employees

Benefits to the Employer Provides a convenient way to manage salaries across a large number of centers through Core Power and the Bank's award winning Corporate Internet Banking Reduces employer's paperwork and salary administration cost. No charges for uploading of salaries Employees receive instant credit of salaries

Benefits to Employees Employees will enjoy convenience of Anywhere Banking at the largest network of more than 13000 Core Banking Branches Extensive alternative channels. 21000 plus ATMs of State Bank Group
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Free Internet Banking, Mobile Banking

Complete gamut of Banking Services including: Zero Balance Account facility with no charges for non-maintenance of minimum balance Free unlimited withdrawal from SBI ATMs subject to daily caps Free Personal Accident Insurance Cover to International Gold ATM Card Holders of Gold and Diamond accounts and International Platinum ATM Card Holders of Platinum accounts Retain same account number even when the account is transferred to another branch Free personalized Multi City Cheques and free personalized Ordinary Cheque Books

Free Mobile Banking including free transfer of funds up to Rs. 50,000/Free SMS Alerts/ e- Statements/ Internet Banking Easy overdraft up to 2 months salary repayable within 6 months RTGS/NEFT, Demat facility, Systematic Investment Plan in Mutual funds. Concession in interest on Home loans and Auto Loans Concession in Processing Fee and Margin on retail loans Waiver of Demat Account opening charges Concession on purchase of Gold Coins Range of other value added benefits Free Core Power: Anywhere Banking facility with the widest network of more than 13,000 branches, This includes free transfer of funds between SBI branches, free updating of pass-books at any branch, etc.

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SWOT ANALYSIS
Strength The keys strength areas of HDFC Bank are their motivated and highly competent staff who is aggressive in their pursuit for excellence in terms of employee competence it Rivals the highly rated foreign banks. Weakness They are very strict and a lot of requests dont get catered online. One has to visit the branch. HDFC is the only one which charges for NEFT transactions. HDFC is also a good one however many transactions like even enabling online transfers first time needs a walk to the branch. Apart from that they also charge for NEFT until the relationship matures. If you have salary account you get preference for services at bank branch. For Lockers you get 50% concession in annual rent, but locker is not easy to get. Opportunity HDFC Bank has good opportunity in rural area and offices etc. which are still untouched by banks of such repute an are considered virgin markets. Threat Other banks like ICICI, AXIS, IDBI, are expanding at a very fast rate and are perceived as threat to HDFC Bank.

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INTERPRETATIONS & SUGGESTIONS:1. From the response of the Questionnaire gathered and finding the experience during the survey from of people around, about the HDFC Bank, a lot of conclusion and findings have been arrived at which are sufficient to reveal the mysteries and connotations of customer behavior and their satisfaction. 2. Since HDFC Bank is number two in terms of number of account holders, and its positive image and enormous goodwill among masses elevates, its position from niche to runner in retail banking sector. It can very well take on the challenge posed by ICICI Bank and try to improve its position by focusing on key strength areas and strategically eliminating its weak points. 3. Communicate the changes in the account opening procedure to the non customers as many of them are left out because they dont know that the process has changed and the various loopholes because of which some of them left have been taken care of. For e.g. many of the customers left HDFC because of charges on NEFT but they were not communicated about the fact that it has been removed and this resulted in bad publicity, and loss of prospective customers. 4. Since saving account ate the most popular among masses, innovative ideas has to be framed to inveigle new prospects into this venture. Salary accounts should be promoted more and more as in some areas these are still not as popular as they should be. 5. Now-a-days Banking is no more the way of only providing interest for the deposited money, but they are the ways of accessing and transacting with them from anywhere and anytime at any part of the world. Hence, flawless and effortless access of bank accounts from mobile phones and Internet has to be made available. Benefits of free international debit cards to premium salary account holders should be promoted more.

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7. Other banks like Axis Bank provide purchase protection to their customers while Hdfc Bank has not considered this. 8. Also axis bank has set a higher limit of withdrawal than Hdfc so it is obvious that customers will not leave Axis Bank unless Hdfc also makes up in this context. 9. Change the minimum criteria as for now Hdfc states that an organization should have minimum 25 employees in order to open up a salary account but Axis Bank has a lower limit of only 10 employees. 10.For expansion HDFC Banks should make forays into semi-urban and smaller cities and also rural areas .In fact these days, rural income is increasing at a much faster rate than Urban income and also the market is considered unsaturated which makes the launching and expansion prospects very good one. In this way the Bank can gain foothold over these territories and reap rich harvest in terms of booming account numbers. 11. Lockers should be made available to everyone.

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LIMITATIONS
No study is full proof or error free. This study has also got some limitations that are given below. The survey was limited within the geographic limits of the city of Gurgaon. Thus the results may not be applicable to the whole country. Sample size was only 100.So the result may not reflect the actual situation. A large sample size may reflect better result. Project was constrained by time limit of two months. Mindset of people may vary. Getting appointment from the concern person was very difficult.

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Questionnaire

Name of the organization : Nature of business : Address : Contact no : In which bank do you have your current a/c ? a) b) c) d) e) HDFC ICICI SBI PNB AXIS

Do you do business on contract basis? a) Yes b) No In which bank do you have your salary a/c? a) b) c) d) e) HDFC ICICI AXIS SBI PNB

How many employees are employed in your company? a) 0-50 b) 50-100 c) 200 and above d) Above 500 e) Above 1000 Who is the person in charge of salary accounts?
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a) Hr manager b) Finance head c) Other

BIBLIOGRAPHYWikipedia http://www.hdfcbank.com http://in.answers.yahoo.com Research methodology- C.R Kothari

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