48

A Project Report On

“Credit Card” Of

“HDFC BANK”

IN THE PARTIAL FULFILLMENT OF BATCHLOR OF BUSINESS

ADMINISTRATION,UNIVERSITY OF PUNE

SUBMITTED BY

SHAKEEL KHANZADA

48

Acknowledgement

If words are considered to be signs of gratitude then let these

words Convey the very same my sincere gratitude to HDFC

BANK for providing me with an opportunity to work with

BANK and giving necessary directions on doing this project to

the best of my abilities. I am highly indebted to Mr. Ajit

Shinde, Branch Manager and company project guide, who has

provided me with the necessary information and also for the

support extended out to me in the completion of this report

and his valuable suggestion and comments on bringing out this

report in the best way possible. I also thank Prof. Wafiya Wahid,

PUNE who has sincerely supported me with the valuable

insights into the completion of this project. I am grateful to all

faculty members of my college PUNE and my friends who have

helped me in the successful completion of this project.

48

CONTENT

Sr. No Particulars Page. No1. INTRODUCTION1.1 About the study

1.2 Objectives

1.3 Scope

1.4 Limitations of study

2. Organization Profile

2.1 Companies Profile

2.2 About organization

2.3 Board of Directors

2.4 Services of organization

3. RESEARCH METHODOLOGY

3.1 Concept

3.2 Types of Data

3.3 Tools and Techniques of Data Collection

4. CONCLUSION

5. SUGGESTIONS

6. BIBLOGRAPHY

48

1. Introduction

1.1 About the study Credit cards have become an important part of life in the

modern world. People especially the younger generation are almost

addicted to the use of credit cards. Credit card can be highly

advantageous for a person if used wisely and responsibly. At the same

time if a credit card is used irresponsibly it can open the gates of debt for

a person. Credit cards are convenient to use and many people fail to

restrain themselves and lose complete control of their expenses.

What is a Credit card

A credit card for some people is just a convenient source of plastic

money. But in reality a credit card is much more than that. It is true that a

credit card is a flexible mode of payment which is accepted at almost 30

million locations worldwide. The best part about credit cards is that if the

bill is paid off completely no interest is charged on purchases made from

the card in the past. In short we can say that credit cards offer short term

interest free credit for a limited period.

48

Advantages of a credit card

A credit if used sensibly and responsibly can be a advantageous financial

tool. Some of the major advantages of credit cards are:

Credit cards offer the free use of funds with the only criteria that

the credit card bill is paid in full and in time.

Credit cards are far more convenient compared to cash.

Credit cards are the most popular modes of payment for making

purchases on the internet.

Credit cards offer their customer with reward points which can be

redeemed for availing discount offers or getting free gifts.

Disadvantages of credit cards

Credit cards if used without any sense of responsibility can spell doom

for the user and can be the reason for a debt for the user. The major

disadvantages of credit cards are:

If the credit card bill is not paid on time the interest rate charged is

very high. It is higher than loans like personal loans etc.

Credit cards may have a negative effect on your credit history if

the bill is not paid in time.

Credit card can be the reason of too much debt may be even more

than you can handle.

48

Credit card control tips

There are a few useful tips which can be used to make sure that one stays

away from credit card debt and uses a credit card to his/her advantage.

Always use a credit card which has a low fee or has no annual charges.

Make use of your credit card for purchases of amount for which

you can make the payment when the bill is due.

Always remind yourself that the credit card bill needs to be paid in

full by the due date ach month. This will discourage you to use the

credit card too often and at places where it may not be used.

A great way to reduce the amount you pay on your credit card is to

find a credit card with a low and affordable rate of interest.

Keep in mind that paying only the minimum amount due on your

credit card would mean it would be almost impossible to get out of

debt ever.

48

1.2 Objectives of the study

To study various credit card & scheme and other financing scheme of HDFC Bank.

To understand the working of the Credit Card department.

To understand the various procedures and facilities of credit cards provided by the HDFC Banks.

The study is aimed at understanding how an organization practically works in the real situation.

To know about the different types of Credit cards provided by HDFC bank to its customers and the interest rate charged on it by the bank.

To know about the Credit card offers - the free use of funds with the only criteria that the credit card bill is paid in full and in time

To study that the Credit cards are the most popular modes of payment for making purchases on the internet.

To examine the level of awareness of the HDFC Bank

services.

Understanding the expectations and requirements of all your

customers for the credit card loan facility.

48

1.3 Scope of the Study

This report is based on the study conducted at HDFC Bank, Pune.

It aims at understanding the company’s establishment, Credit card loan department, procedure and the advantages it is having over the competitors.

An attempt is made to analyze the Organization’s performance in compare to the theoretical aspects.

It aims to understand the skills of the Organization in the areas like Technological advancements and competition.

It aims as the credit cards are the most popular modes of payment for making purchases on internet.

48

1.4 Limitation of the Study

Whatever data is collected is mostly data is secondary data.

As the managers are busy in their daily schedules it is not possible for us to spend more time in interaction and discussion with them.

The project was constrained by time limit of one month.

Mindset of people may vary depending upon their age, gender, income etc.

Getting appointment from the concern person was very difficult.

Peoples mind set about the survey was an obstacle in acquiring complete information & positive interaction.

Respondents were very busy in their schedule. So it was very time consuming for them to answer all the questions properly.

It was not possible to understand thoroughly about the different credit cards of the HDFC Bank within 60 days.

It was very difficult to get the information about the different credit cards and their limit to the various income groups.

All the information regarding the features and benefits of the credit cards were not provided to the fullest.

48

2. Organization Profile

2.1 History Organization

HDFC Bank was incorporated in August 1994, and, currently has an nationwide network of 1412 Branches and 2890 ATM's in 528 Indian towns and cities. Our single-minded focus on product quality and service excellence has helped us garner the appreciation of both national and international organizations. All the facts and figures highlighting the rapid growth of HDFC Bank over the last nine years. Join the workforce of India's leading private sector bank that has won accolades from top national and international magazines, and explore a world of opportunities. HDFC Bank's Corporate Governance Policy has been adopted keeping in mind the importance of attaining fairness for all stakeholders, as well as achieving organizational efficiency.

Milestones in the History

HDFC Bank began operations in 1995 with a simple mission: to be a“World Class Indian Bank.” We realized that only a single mindedfocus on product quality and service excellence would help us getthere. Today, we are proud to say that we are well on our waytowards that goal.

48

2009Euro money Awards 2009 'Best Bank in India'Economic Times Brand Equity & Nielsen Research annual survey 2009

Most Trusted Brand - Runner Up

Asia Money 2009 Awards ‘Best Domestic Bank in India'IBA Banking Technology Awards 2009

Best IT Governance Award - Runner up'

Global Finance Award 'Best Trade Finance Bank in India for 2009

2008Finance Asia Country Awards for Achievement 2008

'Best Bank and Best Cash Management Bank'

CNN-IBN 'Indian of the Year (Business)'

Nasscom IT User Award 2008 'Best IT Adoption in the Banking Sector'

Business India 'Best Bank 2008'

Forbes Asia Fab 50 companies in Asia Pacific

2007The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards

Best Corporate Social Responsibility Practice Award.

Outlook Money & NDTV Profit Best Bank Award in the Private sector category.

The Asian Banker Excellence in Retail Financial Services Awards

Best Retail Bank in India

Asian Banker Our Managing Director Adtiya Puri wins the Leadership Award.

48

2006Business Today Best Bank in IndiaForbes Magazine One of Asia Pacific's

Best 50 companies.

Business world Best listed Bank of IndiaThe Asset Magazine's Triple A Country Awards

Best Domestic Bank

Asia money Awards Best Local Cash Management Bank in Large and Medium segments.

Euro money Awards "Best Bank" in India.

2005Asia money Awards Best Domestic CommercialAsia money Awards Best Cash Management Bank -

IndiaThe Asian Banker Excellence Best Cash Management Bank -

ExcellenceFinance Asia magazine Best Bank in IndiaEconomic Times Awards "Company of the Year" Award for

Corporate Excellence

1.2 Organization Profile

48

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion.[3] For the fiscal year 2008-09, the bank has reported net profit of Rs.2, 244.9 crore, up 41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09.

Year March 2007 March 2008 March 2009Cites 228 316 327

Branches 535 684 761ATMS 1323 1605 1977

Against the regulatory approvals for new branches in hand, theBank expects to further expand the branch network by around 150

48

branches by June 30, 2008. During the year, the Bank stepped upretail customer acquisition with deposit accounts increasing from6.2 million to 8.7 million and total cards issued (debit and creditcards) increasing from 7 million to 9.2 million. Whilst credit growth in the banking system slowed down to about22% for the year ended 2007-08, the Bank’s net advances grew by 35.1% with retail advances growing by 38.6% and wholesale advances growing by 30%, implying a higher market share in both segments. The transactional banking business also registered healthy growth with cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year. Portfolio quality as of March 31, 2008 remained healthy with grossnonperforming assets at 1.3% and net non-performing assets at0.4% of total customer assets. The Bank’s provisioning policies forspecific loan loss provisions remained higher than regulatoryrequirements.

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. HDFC Bank's Business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

Capital Structure

48

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229 branches spread over 444 cities across India. All branches are linked on an online real-time basis. Customers in over 120 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 a network of about over 2526 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.

2.3 Board of Directors

48

NAME DESIGNATION

Jagdish Kapoor Chairman

Aditya Puri Managing Director

Paresh Sukthankar Executive Director

Harish Engineer Executive Director

Mr.C.M.Vasudev Director

Mr.Aditya Puri Director

Mr.Keki Mistry Director

Mr.Arvind Pande Director

Mr.A.N.Roy Director

Mr.Pandit Palande Director

Mr. Bobby Parikh Director

BRANCHES IN PUNE

48

Bank Name

Branch Name City

HDFC BANER PUNEHDFC BHANDARKAR ROAD PUNEHDFC BIBVEVADI PUNEHDFC CHINCHWAD PUNEHDFC HERITAGE HOUSE- Pune PUNEHDFC KARVE NAGAR PUNEHDFC NARAYAN GAON PUNEHDFC NARSINH CENTRE PUNEHDFC PAUD ROAD PUNEHDFC PIMPRI PUNEHDFC BOAT CLUB-Pune PUNEHDFC EAST STREET-Pune PUNEHDFC FERGUSSON COLLEGE PUNEHDFC HINGHNE KHURD PUNEHDFC LAXMI ROAD PUNEHDFC NANA PETH PUNEHDFC NIGDI PUNEHDFC PASHAN PUNEHDFC SAHAKAR NAGAR PUNEHDFC SHANKARSHETH ROAD PUNEHDFC WANOWRI PUNEHDFC HADAPSAR-MAGARPATTA PUNEHDFC VIMAN NAGAR PUNEHDFC VISHRANTH WADI PUNE

Management

48

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Kapoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and 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.

Documents required for a Credit Card

48

List of acceptable Address Proof for Card holder

Passport Driving license Telephone bill Electricity bill Bank account statement - Bank statement or Pass book can be

accepted - In both the address should be mentioned Ration card Voters ID (if it has address) Letter from the society (only registered societies) - on the

letterhead which carries the society's Registration No. The letter Monthly outgoings bill from Registered Housing society - on the

letterhead which carries the society's Registration No. (Maintenance charges receipt issued by the society NOT acceptable)

Registration documents/Ownership proof copy. Mobile post paid bill Company ID card LIC Premium receipt Gas Bill Water Bill Society Maintenance Bill Property Tax Receipt

List of acceptable Photo ID Proof for Card holder:

48

Passport

Voters ID

Ration Card

Company/Institution photo ID card

Student ID card

OBC Photo Card

Insurance / Medi-claim Photo Card

Passbook with Photo

Senior citizen ID

Government organization ID card with signature and photo.

48

Application Form

48

Declaration Form

48

2.4 Services of the Organization

HDFC Bank understands how much of hard work goes into establishing a successful SME. They also understand that the customer’s business is anything but "small" and as demanding as ever. And as their business expands and enters new territories and markets, they need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why HDFC Bank has assembled products, services, resources and expert advice to help ensure that the consumer’s business excels.

HDFC Bank solutions are designed to meet Customer’s varying needs. The following will help us identify the different kinds of services provided by the Bank through Credit Cards.

48

1. Classic Cards: Products trusted by many

Silver Credit CardInternationally accepted Silver Credit Card allows the customer to enter a world of Privileges and saving.

Purchase Interest Rate: 2.95% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : Minimum Income: Rs.

200,000/- p.a. (self employed) | Rs. 150,000/- p.a. (salaried)

2. Special Benefit Cards: For those with special needs

Value Plus Credit CardA true value card that enables the customer to avail 5% cash back on all their purchases.

Purchase Interest Rate: 2.95% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : Minimum Income: Rs.

200,000/- p.a. (self employed) | Rs. 150,000/- p.a. (salaried)

48

3. Premium Cards: Access world-class privileges and benefits.

Gold Credit CardA card to match the customer’s lifestyle with features like special offers on air and train ticketing and rewards redemption against air miles.

Titanium Credit CardTitanium Credit Card is quite simply the most exclusive Credit Card a customer can ask for with benefits like zero surcharge on

fuel, travel offers and accelerated two-tier reward program.

Purchase Interest Rate: 2.95% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : Minimum Income: Rs.

200,000/- p.a. (self employed) | Rs. 150,000/- p.a. (salaried)

Purchase Interest Rate: 2.65% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : N/A

48

Woman’s Gold CardCustomer Enjoy the benefits of the best premium card made specifically for women.

Purchase Interest Rate: 2.65% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : Minimum Income: Rs.

200,000/- p.a. (self employed) | Rs. 150,000/- p.a. (salaried)

Platinum Plus Credit CardIndia’s only Platinum Credit Card with exclusive travel and preferential benefits- recognition of those who have “arrived in life”. Enjoy a world of exclusive privileges on the HDFC Bank Platinum Credit Card.

Purchase Interest Rate: 2.65% p.m Cash Withdrawal Rate: 2.50% p.m

48

Eligibility : N/A

Visa Signature Credit CardA card for the rarest of the rare a card with unique and exclusive privileges that complement your refinement and style.

Purchase Interest Rate: 2.50% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : N/A

World MasterCardA very premium offering for the truly elite, a card with tailor-made premium privileges that complement a discerning lifestyle.

Purchase Interest Rate: 2.50% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : N/A

48

4. Commercial Cards

Corporate Platinum Credit CardThis card is not just a card, it’s a designation. HDFC Bank Corporate card comes with a unique 24x7 Expense management solution called SMART DATA ONLNE, powered by MasterCard International.

Purchase Interest Rate: 2.65% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : For corporate

Business Gold Credit CardBetter Business with HDFC Bank International Business Gold Card, which is designed to add value to the business, while keeping in mind the convenience and lifestyle benefits for business owners and the self-employed community specifically.

Purchase Interest Rate: 2.75% p.m Cash Withdrawal Rate: 2.50% p.m Eligibility : For corporate

48

The life cycle of Credit card transaction

Acquiring Bank- A bank that has a business relationship with a

merchant and receives all credit card transactions from that

merchant.

Authorization Code - A code assigned by the card issuing bank to a

credit card sale to show that the transaction is authorized.

Bank Card - A credit card issued by a bank.

Chargeback - A credit card transaction that is billed back to the

merchant who made the sale.

Independent Sales Organization (ISO) - Independent sales

organizations play a role in many business fields. In the credit card

industry ISOs act as a third party between the merchant and the

acquiring bank.

Interchange - The transaction that takes place between the

acquiring bank and the credit card-issuing bank.

Sales draft - An instrument showing an obligation on the

cardholder's part to pay money, (i.e... the sale amount), to the card

issuer.

Credit card process

Cardholder requests a purchase from the merchant.

The merchant submits the request to the acquire.

The acquire sends a request to the issuer to authorized the

transaction.

48

An authorization code is sent to the acquirer if there is valid credit

available.

The acquire authorizes the transaction.

The cardholder receives the product.

Processing of Credit Card

48

Schedule of charges for a Credit card

Description of Charges

Silver/Gold/Women’s Gold/Business Gold

Titanium international/Platinum plus/ Visa signature/ World master Card

Interest free period

Up to 50 days Up to 50 days

Minimum repayment amount

5% minimum Rs.200 5%, Minimum Rs. 200

Cash advance limit

10% of credit limit 30% of credit limit

Annual fee Silver card-Rs.700Gold card-Rs.2000Business gold card-Rs.750

Titanium card- Rs. 3999 Platinum card-Rs. 3999Visa card- Rs. 9999World master card-Rs. 9999

Charges on revolving credit

3.25%pm 39% annually from transaction date

For visa/ world master card 3.05%pm & for titanium & platinum card is 3.15% & 37.8%

Cash advance charges

2.5%of amount withdrawn

2.5 % of amount withdrawn

Late payment charges

Statement balanceLess than Rs.100Rs. 100-500Rs. 501-10000Rs. 10001-20000More than 20000

Late payment chargesNilRs. 100Rs. 350Rs. 500Rs. 600

Charges on 2.5%of over limit 2.5 % of over limit amount

48

over limit a/c amount, subject a minimum of Rs. 500

subject to a minimum of Rs. 500

Schedule of charges for a Credit card

Description of Charges

Silver/Gold/Women’s Gold/Business Gold

Titanium international/Platinum plus/ Visa signature/ World master Card

Payment return charges

2% of payment amount subject to minimum of Rs. 300

2% of payment amount subject to minimum of Rs. 300

Petrol transaction charge

2.5% (subject to minimum of Rs. 10)

2.5 % ( subject to minimum of Rs. 10)

Reissue of lost, stolen

Rs. 100 Rs. 100

Outstation cheque processing charge

Rs. 50 per instrument Rs. 50 per instrument

Retrieval fees Rs. 125 Per charge slip Rs. 125 Per charge slipForeign currency transaction

Bank charges cross currency mark-up of 3.5%

Bank charges cross currency mark-up of 3.5%

Service tax Applicable on all fees, interest and other charges

Applicable on all fees, interest and other charges

48

OTHER SERVICES OF HDFC

1. PERSONAL BANKING SERVICES

Accounts & Deposits Savings Account

Regular Savings Account

Savings Plus Account

Savings Max Account

Senior Citizens Account

No Frills Account

Loans

Personal Loans

Home Loans

Two Wheeler Loans

New Car Loans

Used Car Loans

Overdraft against Car

Express Loans

48

Loan against Securities

Loan against Property

Commercial Vehicle Finance

Working Capital Finance

Investments & Insurance

Mutual Funds

Insurance

Bonds

Financial Planning

Knowledge Centre

Equities & Derivatives

Forex Services

Trade Finance

Traveler’s Cheques

Foreign Currency Cash

Foreign Currency Drafts

Foreign Currency Cheque Deposits

Foreign Currency Remittances

Payment Services

48

Net Safe

Prepaid Refill

Bill Pay

Direct Pay

Visa Money Transfer

E-Monies Electronic Funds Transfer

Access Your Bank - One View

Insta Alerts

Mobile Banking

ATM

Phone Banking

Branch Network

2. WHOLESALE BANKING SERVICES

Funded Services

Non Funded Services

Value Added Services

Internet Banking

Clearing Sub-Membership

RTGS – sub membership

Fund Transfer

48

ATM Tie-ups

Corporate Salary a/c

Tax Collection

Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

3. NRI BANKING SERVICES

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

Payment Services

Net Safe

Bill Pay

Direct Pay

Visa Money

Online Donation

Remittances

48

Research Methodology

3.1 Concept

The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.

Type of Research: The type of research done was descriptive.

Nature of Research: The Research was quantitative in nature.

Types of Questionnaire: The type of questionnaire used

during the survey was the structured questionnaire.

48

Types of questions: The type of questions asked during the

survey was formalized and limited probing.

Type of Analysis: The type of Analysis carried out during the

study was statistical Analysis.

Source of Information

Primary source: The primary source of collecting data for

research was through questionnaire.

Secondary source: Referred to various books on Finance,

Business magazines and company Websites.

Plan for Primary Data

Research Technique: The survey Method was used at the

research technique for the study.

48

Contact Method: The method of contact used in this research is

personal interview.

Research Instrument: The instrument used for doing research

was questionnaire.

3.2 Types of Data

Primary data:All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.

Secondary Data:It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company’s database and website of the company.

48

3.3 Tools and Techniques of Data Collection

How would you rate the services provided by the HDFC Bank?

No. of Respondents Ratings Percentage25 Excellent 60%20 Good 30%5 Bad 10%

Analysis:

From the above table it is analyzed that 60% of the total respondent rated the services as excellent, 30% of them rated as good and 10% rated as bad.

Bar Diagram:

48

Inference:

From the above graph it can be clearly inferred that maximum number of respondents rated the services as excellent while average number of respondent rated as good and minimum as bad.

According to you which are the most preferable Credit card?

No. of Respondents Kinds of Credit Cards Percentage15 Classic Cards 30%5 Special Benefit Cards 10%20 Premium Cards 40%10 Commercial Cards 20%

Analysis:From the above Table it is analyzed that 40% of the total respondent prefer Premium Card, 30% prefer Classic Card,20% prefer Commercial Card and 10% prefer Special Benefit Card.

Bar Diagram:

48

Inference:From the above graph it can be clearly inferred Premium Cards are the most preferred cards for the respondents while the Special Cards are the least preferred for the respondents.

Are you satisfied with the promptness in responding to your inquiries?

No. of Respondents Satisfaction Percentage20 Satisfied 40%16 Partially satisfied 32%14 Not satisfied 28%

Analysis:From the above table it is analyzed that 40% of the respondents are satisfied while 32% of the respondents are partially satisfied and 28% of the respondents are not satisfied at all.

Bar Diagram:

48

Inference:From the above graph it is clearly inferred that 40% of the respondents are completely satisfied where as 28% of the respondents are not satisfied at all.

Through which source of did you come to know about the Credit Cards of HDFC Bank?

No. of Respondents Source Percentage25 Newspapers 5015 Pamphlets 3010 T.V Advts. 20

Analysis:

From the above table it is analyzed that 50% of the respondents came to know about the Credit Cards through Newspapers while 30% of the respondents came to know through pamphlets and 20%

48

of the respondents came to know about through T.V advertisements.

Bar Diagram:

Inference:From the above graph it is clearly inferred that maximum number of respondents came to know about the Credit cards through newspaper where as minimum number of the respondents came to know about the Credit cards through T.V advertisements.

For you Credit cards of which Bank are more preferable?

No. of Respondents Banks Percentage25 HDFC 5020 ICICI 405 Kotak Mahindra 10

Analysis:

From the above table it is analyzed that 50% of the respondents prefer Credit cards of HDFC Bank while 40% of the respondents prefer Credit cards of ICICI Bank and 10% of the respondents prefer Credit cards of Kotak Mahindra Bank.

Bar Diagram:

48

Inference:

From the above graph it is clearly inferred that maximum number of respondents prefer Credit cards of HDFC Bank while minimum number of respondents prefer Credit cards of Kotak Mahindra Bank.

According to you what are the areas of improvement for HDFC Bank?

No. of Respondents Areas Percentage10 Knowledge of staff 2025 Schemes & discounts 5015 No. of branches 30

Analysis:From the above table it is analyzed that 20% of the respondents feel that HDFC Bank should improve in educating the staff in their respective departments while 50% of the respondents feel that HDFC Bank should improve with their schemes and discounts and 30% percent of the respondents feel that HDFC Bank should improve by increasing their branches.

Are you satisfied with the HDFC Bank?

48

No. of Respondents Satisfaction Percentage40 Satisfied 80%10 Not Satisfied 20%

Analysis:

From the above Table it is analyzed that 80% of the respondents are satisfied with the HDFC Bank while 20% of the respondents are not satisfied with the HDFC Bank.

4. Conclusion

HDFC Bank, the banking arm of HDFC is expected to go on stream. The bank already has good number of employees on board and to take various innovative ideas for the different types of credit cards for the customer benefit. It is on the brim of increasing its customers through its attractive schemes and offer on credit cards. The project opportunities provided was market segmentation and identifying prospective customers in potential geographical location and making them aware about the credit cards of HDFC Bank. Through this project, it could be concluded that people are not much aware about the various credit cards of the bank and many of them not interested for such credit cards at all. But if you are bad at finances and always tend to overspend try to be away from credit cards as you may find yourself in a debt which might be difficult to pay.

48

The respondents are dissatisfied with the bank for not taking much effort to make people known about the various services whether existing or newly introduced ones. The most of the respondents are in favor of electronic media and news paper as an appealing source to make people acquainted with the services offered by the bank and also a good portion of respondents are of the view that responsibility should be given to branch offices as well to advertise their product and to persuade the customer to avail the service because they have more dealings with clientele.

According to my findings Company’s promotional activities for credit cards are also very less. So, at last the conclusion is that there is tough competition ahead for the company from its major competitors in the banking sector. Last but not the least I would like to thank HDFC Bank for giving the required information about their credit cards & co operating with me. I hope the project findings analyses are relevant.

5. Suggestion

After analyzing and interpreting the data collected through the research the following recommendations have been put forth to make the organization more effective and efficient. HDFC Bank needs to aggressively position themselves in the minds of the customers. This can be done through the following recommendations:

There must be a well established marketing team of HDFC Bank which will help the company to market its products and services. The sales force must be educated about the needs of the target market. The buying behavior of the target market must be communicated to the sales force so that they will be able to place the products of the bank in a better way, which will meet the expectations of customers.

As the bank has already hired agency for marketing credit cards, it must also go for mass advertisement through local media that is radio,

48

television and newspapers so that customers become aware about the services which are offered by the company. The customers must be well treated by the front line staff in branches and must be motivated for availing the various services especially credit cards as customers are interested to get the facility through its nearest branches.

The bank should provide life time valid ATM card to all its customers. Minimum balance for savings account should be reduced from Rs 5000 to Rs 1000, so that people who are not financially strong enough can maintain their account properly.

To make people aware about the benefit of becoming HDFC Bank’s Sales Executive, following activities of advertisement should be done through Print Media, Hoarding & Banners, and Distribution of leaflets containing details information.

At last, we suggest the HDFC Bank to develop a true customer responsive culture in the whole organization in its soul and spirit if it wants to be in hearts of customers and even improve its current position in the industry as in this world.

6. Bibliography

1. Books:

Financial management

2. Newspapers:

Times of India Financial Express

3. Websites:

www.hdfcbank.com www.google.com www.cibil.com

48