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WHAT IS BANKING
Banking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services, Which includes:-

Issuing Demand Draft and Travelers Cheques Credit Card Collection of cheques. Bills of Exchange Safe Deposit Lockers Issuing Letters of Credit and Letters of Guarantee Sale and Purchase of Foreign Exchange Custodial Services Investment and Insurance services

COMPANY PROFILE
The HSBC Group is named after its founding member. The Hong Kong and Shanghai Banking Corporation Limited, Which was established in 1865 to finance the growing trade between Europe, India and China.

The inspiration behind the founding of the bank was Thomas Sutherland, a scout who was then working for the peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the china cost and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later.

Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries, In Japan where a branch was established in 1866, the bank acted as adviser to the government on banking and currency, In 1888, it was the first bank to be established in Thailand, where it printed the countrys first banknotes. In 1874 the bank handled chinas first public loan and thereafter issued most of Chinas public loans. By the end of the century and after a strong period of growth and success under the leadership of Thomas Jackson, (chief manager for most of that period from 1876 to 1902) the bank was the foremost financial institution in Asia.

HSBC IN INDIA
The acquisition in 1959 by the Hong Kong and Shanghai Banking Corporation Ltd. Of the mercantile bank was a decisive factor in laying the foundation for todays HSBC Group. It was founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China, Europe and the United States, HSBC has been an international bank from its earliest days.

After the mercantile bank was acquired by the Hong Kong and Shanghai Banking Corporation, the Flora Fountain building became and remains to this day, the head office of the HSBC Group in India.
Through the 1990s the HSBC has vigorously developed its role as one of the leading banking and financial services organization in the world. Its strategy of managing for value emphasizes the Groups unique balance of business and earnings between older, matures economies and faster growing emerging markets. HSBC in India is proud to have retained the Groups pioneering streak by being an active partner in the development of the Indian banking industry- even giving India its first ATM way back in 1987. The organizations adaptability, resilience and commitment to its customers have further enabled it to survive through turbulent times and prosper through good times over the past 150 years.

In India, the bank offers a comprehensive suite of world-class products and services to its corporate and commercial banking clients as also to a fast growing personal banking customer base. HSBC group in India comprises a number of members, which includes :The Hongkong and Shanghai Banking Corporation Limited HSBC Securities and Capital Markets (India) Limited A representative office of HSBC Private Equity Management (Mauritius) Limited

HSBC Asset Management (India) Private Limited

HSBC Insurance Brokers (India) private Limited HSBC Private Dealership (India) private Limited HSBC Electronic data Processing (India) private Limited HSBC Software Development (India) private Limited HSBC Operations and Processing Enterprise (India) private Limited HSBC Professional Services (India) private Limited

FACTS SHEET OF HSBC

Customers
125 Million

Profit before tax 2010

Total Assets

US$ 1,861 Billion

US$ 22.08 Billion

International Network
82 Countries And Territories

Offices Worldwide
10,000

Employees
312,000

 HSBC has a 64% rise in net profit at Rs 846 crore for the year ended March 31,2009 Rs 515 Crore in the previous year.
The banks total income during the year increased 51% to the ago period.

Rs.4720 crore to3130 crore in

Total Asset increase Rs 54,987 crore from Rs. 37,473 crore. HSBC invested a further Rs 1,437 crore in the bank 2009-10. The banks capital adequacy ratio is11.06% as on March 31,2010 Comparison 10.61% as on March 31,2009. Banks has invested approximately US$ 1.7 billion to its various businesses Across India. HSBC has 47 branches and 170 ATM across India. HSBC is one of Indias leading financial services groups, with over 27,000 Employees.

BUSINESS CAPABILITIES
Personal Banking:A wide range of personal financial services, including personal lending and deposit products. The Group deploys the latest self-service banking technology , including automated teller machines (ATMs) in each branch and at off-branch locations, 24 hour phone banking, internet banking and an extensive branch network. Corporate banking:HSBC has well-established long-term corporate banking relationship with large domestic corporations and multinational operating in India. Services in clide term and working corporate deposits, syndications, payments and cash management services and factoring. Equities and corporate finance services. Business Banking:Business banking services provide small and medium sized enterprises (SME) with a suite of products and services which can be classified into two categories. Business Vantage offers customers with larger businesses an exclusive range of services and benefits and Business Select offers a full range of commercial services including a dedicated relationship manager.

Institutional Banking:-

Working closely with Group offices in India and overseas, a range of corpotate banking services is offered to banks, financial institutions, securities houses, insurance companies, asset management companies and other nonbanking companies, non-government and development organizations operating in India. Treasury and Capital Markets:-

Client consistently rate HSBCs treasury business as one of the best in India. Its dealing room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the major metropolitan centers across the country. It provides a comprehensive range of products which include foreign exchange, money market and fixed income products and derivatives in both rupees and major currencies. Securities Services:-

The leading regional sub-custody and securities clearing provider, HSBC Securities Services, operates across 32 markets in Asia-Pacific, the middle East southern Europe and Latin America.

 Investment Banking:HSBCs institutional broking services are based in Mumbai with seats on two of Indias premier stock exchange the National Stock Exchange and the Bombay Stock Exchange A full range of interated investment banking services is available from the Groups offices in Mumbai and New Delhi. ADC Additional Delivery channels:-

Additional Delivery Channel is that medium through which banking transactions can be done conveniently & promptly. Instead of using the traditional way of doing banking like standing in the queue for knowing the balances & the account transaction history , making request for address change etc. this channel offers the facility of banking at anytime of the day from the comfort of the home, offece, or from anywhere in the world. The main advantage of conducting transaction using ADC is the saving in the precinus time of the consumer & the effort that is put into by the customer of providing its customer service to the customer. Also as per the calculation Rs. 55 (approx) is spend on a customer when he walks doen to the bank using ADC helps in making it a more cost effective medium. It can also be referred as TECHNOLOGY BANKING,

Medium of ADC are: AUTOMATED TELLER MACHINE (ATM): Instead of standing in queues customers can access their accounts through ATMsWith the help of the Debit card/ credit card & its PIN number the customer can access his accounts & can perform following transaction: Cash withdrawal up to Rs. 50000 per day Cash deposit

Transfer of funds within HSBCs account up to Rs. 100,000 per day.

Balance enquiry Cheque book request Changing of personal identity number (PIN) Request for mini statement

Internet Banking :-

Internet banking provides complete control over all banking transactions from ones PC thats the power of online @hsbc. This facility lets a customer bank online, when & where it suits him. Wherever a customer may be in the world he can access his accouts in India 24 hours a day, 7days a week. Our website link is www.hsbc.co.in The Registration Process:-

Registering for online@hsbc is a simple one-time activity, which is done instantly. Any one combination from the following is required: 10 digit personal banking number (PNB) & 6 digit phone banking PIN.
credit card number & credit card PIN ATM/debit card number & ATM/debit card PIN

Phone Banking :-

Phone banking for fast & convenient banking. One can carry out a whole range of transactions with utmost ease from his office, home, from anywhere. Thus it provides the customer with the ability to find out the details of the account any time of the day or night. Phone banking has been provided with an interactive voice response facility tailored to your accounts. Once the customer is familiar with the system, he has the choice of banking at his own pace, without waiting for the prompts.

If there is any problem, at any time during the transaction, friendly phone banking officers are there for on hand to assist them.
Debit Card:-

The debit card gives the clectronic assess to savings account or current account with HSBC. It thus provides the best possible alternative to carrying cash & allows almost unlimited access to the account, anywhere & anytime.

 CREDIT CARDS:HSBC S credit card is designed to complement the lifestyle of the customer & is a symbol of recognition & status across the globe.

TYPES OF CREDIT CARDS

Classic Credit Card

s.no

Gold Credit Card

Gold Credit Card Classic credit Card

Parameters
Minimum ITR

1
2 3 4

Rs.150, 000
Rs 50,000 to 200,000 Rs 1000 Rs500

Rs.72000
Rs.15000 to 50,000 Rs 700 Rs 350

Credit Limit Annual Fees Annual fees for add on card

MUTUAL FUNDS
HSBC offers investment options in funds that meet the selection criteria and fit the requirements, helping us to create and increase our wealth potential in the long term scenario.

FEATURES
Constant new opportunities Fund managers identify and maximize opportunities for the investments to grow with the help of critical information from leading economist and analysts.

Reduced risks
While expanding portfolio, Mutual Funds helps to reduce the overall investments risk by diversification of investment.

Speedy access to money As Mutual Funds can be bought and sold on any dealing day (which normally means weekdays), one can get easy access to his/her money at short notice. Affordability Because of its large corpus, even a small investor can benefit from its investments strategy. Tax benefits one can get tax benefits on treatment of long term capital gains. Low costs

The benefits of scale in brokerage, custodial and other fees translate into low cost for investors.

HKD/USD currency and multicurrency savings accounts Integrated accounts Mortgage finance Personal credit services Hire purchase and leasing for motor vehicles, Term deposits and credit/debit cards, Financial planning Investment services such as unit trusts, bonds and certificates of deposit Local and overseas securities Broking services, Mandatory Provident Fund investment options Insurance

Services are distributed through channels such as HSBC's ATM network, internet banking service, 24-hour phone banking centre, more than 20 Mortgage Advice Centers providing customized advice seven days a week, and a network of over 180 branches and offices. At the end of April 2004, online@hsbc, HSBC's internet banking service, was being used by over 700,000 customers.

CUSTOMER CATEGORIZED
HSBC Personal Banking categorized customers by their "Total Relationship Balance". To make it simple, it is the total amount of money flowing between the bank and the customer, including money deposits, investments, insurance, etc.

KIND OF CUSTOMER
Top - this is the customer segment the customers of which are those who have a total relationship balance of over one billion Hong Kong Dollars. They are HSBC's Premier Customers, and are the top 5% of highly valuable customers of HSBC Personal Banking. Big - this is the customer segment of those who have a total relationship balance of over one million Hong Kong Dollars. They are HSBC's Premier Customers as well and are in the next 15% of highly valuable customers Medium - this is the customer segment of those who have a total relationship balance of over twenty thousand Hong Kong Dollars. They are the Power Vantage Customers of HSBC. They are the largest group amongst the customer segments, and make up 60% of HSBC's Personal Banking customers.

Small - this is the customer segment of those who have a total relationship balance below twenty thousand Hong Kong Dollars. They are the normal customers of HSBC Personal Banking. 20% of HSBC Personal Banking customers fall into this segment.

In actives - those customers whose account status is "Dormant" or "Closed". Accounts with a dormant status are those accounts that have not been in operation for a long period of time, say 2 years. Accounts with a closed status are those that have been formally closed by the customers. Prospects - those customers who are using HSBC products other than Personal Banking, such as Corporate Banking. The bank has some data about them, and has already established communications with him/her through their use of that product. Suspects - the customers of other banks. HSBC has collected some data about them, but has not yet established communications with them.

One of the main purposes of implementing a CRM program is to retain the profitable customers.

CUSTOMER EXPERIENCE MANAGEMENT

A loyal customer is a good customer. There are two Customer Relationship Management principles about customer loyalty, customer satisfaction and customer experience:

. Only very satisfied customers will be very loyal to a company.

. Customer Satisfaction equals Customer Experience minus Customer Expectations. From the above two principles, customers can become very loyal if they are very satisfied. And, customer satisfaction can be achieved if they offer a better (i.e. higher level of) customer experience or meet with low customer expectations. As customer expectations are more or less uncontrollable, increasing customer satisfaction by increasing the quality of customer experiences is a big topic in Customer Relationship Management.

By performing the Customer Experience Management (CEM), the company can find out the critical needs of and decisive stages in dealing with the customers, make resource planning, marketing, as well as company strategies effectively and efficiently. Under CEM, customer critical moments are defined accordingly under each part of the customer process cycle, which are the PRE-purchase/consumption, ATpurchase/consumption, and POST-purchase/consumption. Each customer process cycle will have its own customer multi-channel touch points, and for simplification, they are grouped into "Physical Touch", "Call", "Internet" and "Others".