INTRODUCTION 1 THE TOPIC: 1.1 OPENING SAVINGS ACCOUNTS BY MEETING CUSTOMERS At HDFC Bank, I was assigned with the topic as “Opening Savings Accounts by Meeting Customers” for my project work. I joined the company as a Sales Executive. The selection of the topic was to know how the company generates business through them. Sales Executives are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Company has certain criteria to recruit these Sales Executives. The steps are as follows. 1.He should be at least 12 th passed. 2.He should have good personal contacts. 3.He should have convincing power. 4. He should be above 18 th year old.
Transcript
INTRODUCTION
1 THE TOPIC:
1.1 OPENING SAVINGS ACCOUNTS BY MEETING CUSTOMERS
At HDFC Bank, I was assigned with the topic as “Opening Savings Accounts by Meeting Customers” for my project work. I joined the company as a Sales Executive. The selection of the topic was to know how the company generates business through them. Sales Executives are those sources of a company who have their own relations and personal contacts among common public that they use to generate business through. Company has certain criteria to recruit these Sales Executives.
The steps are as follows.
1.He should be at least 12th passed. 2.He should have good personal contacts.
3.He should have convincing power. 4. He should be above 18th year old. Once he through all these steps of recruitment, he becomes the Sales Executive of the company and reserve the right to sale the various products to any prospect client also he is paid the commission a certain percentage. There are some reward and tour package also.
1.2 REASON FOR SELECTION OF THIS TOPIC:
The financial sector is one of the booming and increasing sectors in India. The Sales Executives are one of the most powerful, efficient and effective channel through which the company sales its various types of financial products. It is really difficult to convince customers and sell a single product but since these executives have their own personal contacts which make the entire task easier to sell a product. Whereas in my entire project work I found my interest in working in a team, dealing with customers and finally convincing them to open an account with the bank.
1.3 IMPORTANCE TO THE COMPANY:
The ultimate purpose of giving me this topic was to know about the customers perceptions about the different products of the bank, how these products can attract them and how the company can generate maximum profit by convincing them through sales executives.
1.4 LEARNING FROM THE STUDY:
The process of recruitment for Sales Executives of HDFC Bank.
Different products and services provided by the bank.
Customers perception about the different products.
The brand image of the bank.
What are the problems faced by these sales executives daily basis.
How to communicate with the customers.
Different techniques of dealing with the customers.
How to convince and convert a customer into a real customer.
2. COMPANY PROFILE
2.1 Banking Industry
A banking company in India has been defined in the Banking companies Act, 1949 as one “which transacts the business of banking which means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawals by cheque, draft, order or otherwise ”Banking is an important element of economy’s Indian banking system overt past few decades, it has played very effective role in mobilization of savings of the economy, spreading in banking habit to the furthest corner of the country and large entrepreneurial base. Indian banks have multiplied their activities in volume, variety and geographical base to meet the growing needs of the society. The old methods and techniques replaced by new techniques of viability need based formation of finance schemes and marketing Instead of working for profits, they are required to participate in nation building activities and help in bringing socio economic change. Banks are new centre of trade, commerce and business in a country. Banking plays a very impor tant ro le in the economic deve lopment of a l l na t ion of the wor ld . Indust r ia l revolut ion tha t took place in the economic development of a l l na t ions of the wor ld . Industrial revolution that took place in European countries in 18 th a n d 1 9 th centuries would not have taken place without the evolution of good banking system. Banking is life blood of modern commerce. It is very important to study the concept of services as banks are categorized into service sector: service as deeds, processes and performances. The service sector of an economy is going through a period of almost revolutionary proportion in which established ways of doing business continue to be shunted aside.
The banking system in India constitutes the core of the financial sector. It plays a significant role in the process of economic growth of the country. Its efficiency and development thus are vital for the country’s economic progress. Commercial banks are the hub of the Indian financial system. Indian commercial banks are organized as the joint stock banks, both in the public sector and private sector.2.2 Public sector banks
Banking is one of the most important elements of economy. Indian banking system over pas t few decades has p layed a very ef fec t ive ro le in mobi l iza t ion of savings of the economy spreading in banking habit to the furthest corner of the country and enlargedentrepreneurial base. Indian banks have multiplied their activities in volume variety andgeographica l coverage to meet the growing needs of soc ie ty , the o ld methods and techniques of viability growth based formation of finance schemes of marketing. Insteadof working for profits, they are required to participate in the nation building activities andhelp in bringing socio-economic change.Banking transactions carried on by any individual or firm engaged in providing financialservices to consumers, businesses or government enterprises. In the broad sense, a bank isa financial intermediary that performs one or more of the following functions: safeguardsa n d t r a n s f e r o f f u n d s , g u a r a n t e e s c r e d i t w o r t h i n e s s a n d e x c h a n g e m o n e y . S u c h institutions as commercial banks, central banks, organizational banks, trust companies,finance companies, life insurers and investment bankers provide these services. A normalend mean common definition of a bank is a financial intermediary that accepts, transfer and most important creates deposits. This includes such deposits institutes as central banks, commercial banks, savings and loan associates and mutual savings bank.Banks are most f requent ly organized in corpora te form and owned by e i ther pr iva te individual, government interests. Although non corporate bank that single proprietorshipand partnership are find in other countries since 1863 all federally chartered bank in theUS must be corporations. Only a few states permit formation of non corporate bank. Allcountries subject their banks, however owned to government regulations and supervision normal ly implemented by cent ra l banks author i t ies . Bank in India should develop appropriate strategy and ensure proper marketing strategy and mistaking into account theeconomic, cultural, legal and political environment. As toady in the changes word theneeds are changed as regards to bank as foreign players.Market ing concept should be fo l lowed where we ta lk about 4 Ps market ing tools in regards to banks; we should include to more 2 Ps more, People and Procedures as well.An introduction of ATM 24 hours online banking transactions etc their goal should not beof profit it should be “growth and development with profit”The service sector of the economy is going through a period of almost revolutionary proportions in which established ways of doing business continue to be shunted aside. Ithas been said that the only person in the world who appreciates changes is wet baby.The service sector can be best characterized by its diversity. Service organization range insize from huge International Corporation in such fields as airlines, banking, insurance,telecommunications, and hotel chain and freight transportation to a vast
array of locallyowned and opera ted smal l bus iness and numerous bus iness to bus iness services . As currently defined by the government statistics, services account for the two third to threequar ters of the gross na t ional product . Not only in US but a lso in many other h ighlydevelop industrial nations.In the banking and financial services business: this area comprises many different typesof businesses, commercial and retail, with a common denomination, of being in businessto help customer to make or manage money. A high level of trust is implicit and is evenmore cr i t ica l in the wake of the savings and loan scandals of the 1980s . The re ta i l banking industry has found its historic image of aloofness, a managementThe public sector banks largely dominate the Indian banking industry. These banks tillearly 90s were involved in the traditional banking business of deposits and credit lending.They performed a supporting role in the overall growth of economy. While most of these banks used to focus on growth of ba lance-sheet pro f i tabi l i ty was not a s igni f ica ntcompetition. In most of the banks government has holding of 100% whereas in the few banks the state has fallen because of public issue in the post liberalization period. Someof other leading banks in the segment also proposed to come out with an equity issue toraise further capital.The public sector banks have a strong distribution network all over the country. But thes t rength of ear l ie r per iods has now coming out wi th VRS to br ing down number of employees and improve their efficiency ratio.The public sector banks still control a major share in banking operation of the country.
2.3 Private sector Banks
The banking regulation act was amended in 1993 permitting the entry of new privatesector banks. The act also specified certain criteria for establishing new private sector banks. The criteria are as follows-1.the banks should have a minimum net worth of Rs. 1 billion2.The promoters holding should be minimum 25% of paid up capital.The last decade witnessed the maturity of India’s financial markets. Since 1991, everygovernments of India took major steps in reforming the financial sector of the country.The important achievements in the following fields are achieved in following heads:Financial MarketsIn the last decade, private sector banks / institutions played an important role. They grewrapidly in commercial banking and asset management business. With the
openings in theinsurance sector for these institutions, they started making debt in the market.RegulatorsThe Finance Ministry continuously formulated major policies in the field of financialsector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independent. Opinions are also that thereshould be a super- regulator for the financial services sector instead of multiplicity of regulators.
2.4 The banking system
Almost 80% of the business is still controlled by the Public Sector Banks (PSBs). PSBare still dominating the commercial banking system. Shares of the leading PSBs arealready listed on the stock exchanges.The RBI has g iven l icenses to new pr iva te sec tor banks as par t of the l ibera l iza t ion process. The RBI has also been granting licenses to industrial houses. Many banks aresuccessfully running in the consumer segments, industrial finance, retail trade, small business and agriculture finances
2.5 Overall approach to reforms
The last ten years have seen major improvements in the working of various financialmarket participants. The government and the regulatory authorities followed the step bystep approach, not a bang one. The entry of foreign banks has assisted in the introductionof in ternat ional prac t ices and sys tems. On the whole , the cumula t ive ef fec t of the developments since 1991 has been quite encouraging.
2.6 Performance
The year 2005 has been good for the Indian banking. There was robust growth in creditflow during the year. Credit deposit ratio increased by more than 10% and substantial p a r t o f t h e b a n k ’ s c o m m e r c i a l c r e d i t w e n t t o l a r g e b o r r o w e r s a t s u b - P L R r a t e s . Government wants to further push up the loan to GDP ratio from 43% to 50%. The mostsignificant jump in credit was to real estate sector.
3. ORGANIZATION PROFILE
COMPANY HISTORY
3.1 FORMATION OF THE COMPANY
The Housing Development Finance Corporation Limited (HDFC) was amongst the first toreceive 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 in1994. 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 aScheduled Commercial Bank in January 1995.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977, the Corporation hasmaintained a consistent and healthy growth in its operations to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to different market segments and alsohas a large corporate client base for its housing related credit facilities. With its experience in thefinancial 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 soundcustomer franchises across distinct businesses so as to be the preferred provider of bankingservices 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 thehighest level of ethical standards, professional integrity, corporate governance and regulatorycompliance. HDFC Bank's business philosophy is based on four core values - OperationalExcellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's AmericanDepository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign InstitutionalInvestors (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 Sharesare listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
TIMES BANK AMALGAMATION
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 withHDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved bythe 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. The acquisition addedsignificant value to HDFC Bank in terms of increased branch network, expanded geographicreach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leveragealternative delivery channels.
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'sexpansion plans take into account the need to have a presence in all major industrial andcommercial centers where its corporate customers are located as well as the need to build astrong 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 hasa 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.
MANAGEMENT
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor wasa 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 experiencein public policy, administration, industry and commercial banking. Senior executivesrepresenting 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 expertiseof the management team and the overall focus on recruiting and retaining the best talent in theindustry, 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 andcommunication 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 availableinternationally, to build the infrastructure for a world class bank. The Bank's business issupported by scalable and robust systems which ensure that our clients always get the finestservices we offer.The Bank has prioritized its engagement in technology and the internet as one of its key goalsand 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 tocreate 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 soundcustomer franchises across distinct businesses so as to be the preferred provider of bankingservices 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 regulatorycompliance. HDFC Bank's business philosophy is based on four core values - OperationalExcellence, Customer Focus, Product Leadership and People.
RATING
1. Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis & ResearchLimited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programmehas been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments consideredto be "of the best quality, carrying negligible investment risk". CARE has also rated the bank'sCertificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiaryof Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Bank's deposit programme, with theoutlook on the rating as "stable". This rating indicates "highest credit quality" where "protectionfactors are very high".The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE andFitch 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 subordinatedTier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with theoutlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for theBanks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of thecases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.
2. Corporate Governance RatingThe bank was one of the first four companies, which subjected itself to a Corporate Governanceand Value Creation (GVC) rating by the rating agency, The Credit Rating Information Servicesof 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 indicatesthat the bank's capability with respect to wealth creation for all its stakeholders while adoptingsound corporate governance practices is the highest.
3.2 PRODUCT SCOPE:
HDFC Bank offers a bunch of products and services to meet the every need of the people. Thecompany 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 thesuitable 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 fromFunded services, Non-funded services, Value addition services, Mutual fund etc. Theseaffordable plans apart from providing long term value to the employees help in enhancinggoodwill 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
Customer center.
3.3 PRODUCTS AND SERVICES AT A GLANCE
PERSONAL BANKING
A. Accounts & Deposits
- Regular Savings Account- Savings Plus Account- SavingsMax Account- Senior Citizens Account- No Frills Account- Institutional Savings Account- Payroll Salary Account- Classic Salary Account- Regular Salary Account- Premium Salary Account- Defence Salary Account- Kid's Advantage Account- Pension Saving Bank Account- Family Savings Account- Kisan No Frills Savings Account- Kisan Club Savings Account- Plus Current Account- Trade Current Account- Premium Current Account- Regular Current Account- Apex Current Account- Max Current Account- Reimbursement Current Account- RFC - Domestic Account- Regular Fixed Deposit- Regular Fixed Deposit- Super-Saver Account- Sweep-In Account- HDFC Bank Preferred - Private Banking
B. Loans
- Personal Loans- Home Loans- Two Wheeler Loans- New Car Loans- Used Car Loans- Overdraft against Car- Express Loans- Loan against Securities- Loan against Property- Commercial Vehicle Finance- Working Capital Finance- Construction Equipment Finance- Offers & Deals- Customer Center
- Net Safe- Prepaid Refill- Bill Pay- Direct Pay- Visa Money Transfer - E-Monies Electronic Funds Transfer - Excise & Service Tax Payment
F. Access Your Bank
- One View- Insta Alerts- Mobile Banking- ATM- Phone Banking- Branch Network
G. Cards
- Silver Credit Card- Gold Credit Card- Woman's Gold Credit Card- Platinum plus Credit Card- Titanium Credit Card- Value plus Credit Card- Health plus Credit Card- HDFC Bank Idea Silver Card- HDFC Bank Idea Gold Card- Compare Card- Transfer & Safe- Track your Credit Card
H. Get More from Your Card
- Offers & Savings- My Rewards- Insta Wonderz- Add-On Cards- Credit Card Usage Guide- Easy EMI- Net safe- Smart Pay- Secure Plus- My City Benefit Card- Debit Cards- Easy Shop International Debit Card- Easy Shop Gold Debit Card- Easy Shop International Business Debit Card- Easy Shop Woman's Advantage Debit Card- Prepaid Cards- Forex Plus Card- Kisan Card
I . Customer Centre
- Offers & Deals- Winners of Contests & Promotions
WHOLESALE BANKING
A. Corporate
- Funded Services - Non Funded Services- Value Added Services- Internet Banking-B. Small & Medium Enterprises
HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class IndianBank". They realized that only a single-minded focus on product quality and service excellencewould help us get there. Today, they are proud to say that they are well on our way towards thatgoal.It is extremely gratifying that their efforts towards providing customer convenience have beenappreciated both nationally and internationally.
2007
Business Today-Monitor Group survey One of India's "Most Innovative Companies".
Financial Express-Ernst & Young Award Best Bank Award in the Private Sector category.
Global HR Excellence Awards – Asia Pacific HRM Congress:
Employer Brand of the Year 2007-2008¶-Award- First Runner-up.
Business Today Best Bank Award
Dun & Bradstreet - American Express Corporate Best Bank Award 2007
The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007
µBest Corporate Social Responsibility Practice¶ Award.
Outlook Money & NDTV Profit Best Bank Award in the Private sectorcategory.
The Asian Banker Excellence in Retail Financial Services Awards
Best Retail Bank in India.
2006
Business Today Best Bank in India.
Forbes Magazine One of Asia Pacific's Best 50 companies.
Business World Best listed Bank of India.
The Asset Magazine's Triple A Country Awards
Best Domestic Bank.
Asia Money Award Best Local Cash Management Bank inLarge and Medium segments.
Euro Money Award "Best Bank" in India.
2005
Asia money Awards Best Domestic Commercial Bank
Asia money AwardsBest Cash Management Bank - India .
The Asian Banker Excellence Retail Banking Risk Management Award in India.
Hong Kong-based Finance Asia magazine
Best Bank in India
Economic Times Awards "Company of the Year" Award for Corporate Excellence.
2004
Asiamoney AwardsBest Local Cash Management Bank inIndia US$11-100m
Asiamoney Awards Best Local Cash Management Bank inIndia >US$501m
Asiamoney Awards Best Local Cash Management Bank inIndia 1989-2004 (poll of polls)
Asiamoney AwardsBest Overall Domestic Trade FinanceServices in India - 2004
Asiamoney Awards Most Improved company for BestManagement Practices in India - 2004
Business World One of India's Most RespectedCompanies
Forbes Global Best Under a Billion, 100 Best SmallerSize
Enterprises in Asia/Pacific andEurope - 2004
Asian Banker Awards Operational Excellence in RetailFinancial Services - 2004
2003
Business Today Best Bank in India -2003
NASSCOM & economictimes.com - ITUsers Awards
Best IT User in Banking -2003
Forbes Global Best Under a Billion, 200 Best SmallCompanies - 2003
The Asset Triple A Country Awards Best Domestic Bank in India -2003
BusinessWorld - The Business World MostRespected Company Awards
One of India's Most RespectedCompanies
The Asset magazine Best Cash Management Bank
The Asset magazine Best Trade Finance Bank
FE-Ernst & Young Best Banks Survey Best New Private Sector Bank - 2003
Outlook Money Best Bank in the Private Sector ± 2003
2002
Hong Kong-based Finance Asia magazine
Best Local Bank - India
Hong Kong-based Asia magazine "Best Local Bank - IndiaEuro money magazine "Best Bank in India
Asia money magazine Commercial Bank in India 2002
2001
Hong Kong-based Finance Asia magazine
Best Domestic Commercial Bank - India
Hong Kong-based Finance Asia magazine
"Best Domestic Commercial Bank -India
Euromoney magazine "Best Bank in India
Forbes Global Named in The 300 Best SmallCompanies one of the "20 for 2001" bestFE-E&Y Best Banks small companies
The Economic Times Awards for Corporate Excellence as theEmerging Company of the Year
2000
Hong Kong-based Finance Asia magazine
Best Domestic Commercial Bank - India
Hong Kong-based Finance Asia magazine
"Best Domestic Commercial Bank -India
Euromoney magazine Best Domestic Bank
Business India " India 's Best Bank
Forbes Global Named in The 300 Best SmallCompanies one of the "20 for 2001" bestFE-E&Y Best Banks small companies
3.5 MERGER
HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 and approved, subject to due diligence, the share swap ratio for the proposed merger of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation envisages a share exchange ratio of one share of HDFC Bank for twenty nine shares of Centurion Bank of Punjab. The combined entity would have a nationwide network of 1,148 branches (the largest amongst private sector Banks) a strong deposit base of around Rs. 1,200 billion and net advances of around Rs. 850billion. The balance sheet size of the combined entity would be over Rs. 1,500 billion. Commenting on the proposed merger, Mr. Deepak Parekh, Chairman, HDFC said, ³We were amongst the first to get a banking license, the first to do a merger in the private sector with Times Bank in 1999, and now if this deal happens, it would be the largest merger in the private sector banking space in India. HDFC Bank was looking for an appropriate merger opportunity that would add scale, geography and experienced staff to its franchise. This opportunity arose and we thought it is an attractive route to supplement HDFC Banks organic growth. We believe that Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approach to business.´
Mr. Aditya Puri, Managing Director, HDFC Bank said, ³These are exciting times for the Indian banking industry. The proposed merger will position the combined entity to significantly exploit opportunities in a market globally recognized as one of the fastest growing. I m particularly bullish about the potential of business synergies and cultural fit between the two organizations. The combined entity will be an even greater force in the market. Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, Over the last few years, Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nation wide network, an extremely valuable franchise, 7,500 talented employees, and strong leadership positions in the market place. I believe that the merger with HDFC Bank will create a world class bank in quality and scale and will set the stage to compete with banks both locally as well on a global level. Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, We are extremely pleased to receive the go ahead from our board to pursue this opportunity. A merger between the banks provides significant synergies to the combined entity. The proposed merger would further improve the franchise and customer proposition offered by the individual banks.´
3.6 FINANCIAL FIGURE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008
1.
2.
3.
4.
5.
6.
7.
Particulars
Interest Earned (a)+(b)+(c)+(d)
a) Interest/discount on advances/bills
b) Income on Investments
c) Interest on balances with Reserve Bank of India and other interbank funds
Other Income
A) TOTAL INCOME 1+2
Interest Expended
Operating Expenses i+ ii
i. Employees Costii. Other operating
Expenses
TOTAL EXPENDITURE 4+5Operating profit before provision and contingencies
Quarter ended 30.6.08
3672173
263638
951212
2426
59342
421515
189826
128938
5405874880
318764
102751
Quarter ended 30.6.07
206916
145362
56047
5337
57254
264170
108364
77438
2838849050
185808
78361
Year ended 31.03.08
1011510
696673
287204
27239
228315
1239815
488712
374968
130135244437
863274
376541
8.
9.
10.
11.
12.
13.
14.
15.
16.
Provisions (Other than tax) and contingencies
Exceptional Item
Profit from ordinary activities before tax.
Tax Expenses
Profit from ordinary activities after tax
Extra Ordinary Items
Net profit
Paid up Equity share capital (Face value Rs. 10/- each)
Reserves excluding revaluation reserves (as per balance sheet of previous year)
ANALYTICAL RATIOS
i) Percentage of shares held by government of India
ii) Capital Adequacy Ratio
34447
-
68304
21869
46435
-
46435
42462
-
NIL
12.2%
30712
-
47656
15533
32123
-
32123
33319
-
NIL
11.1%
148478
-
228066
69045
159018
-
159018
35443
1114280
NIL
13.6%
iii) Earning Per Share (Rs)
a) Basic EPS before & after Extra ordinary Items (not annualized)
b) Diluted EPS before & after extraordinary items (net of tax expense)-not annualized
iv) NPA Ratios
a) Gross NPA
b) Net NPA
c) % of Gross NPA to Gross Advances
d) % of Net NPA to Net Advances
v) Return on assets not annualized
Public Share Holding (No. of shares)
Percentage Of share Holding
11%
10.8%
150274
49607
1.5%
0.5%
0.3 %
342173776
83.6%
10%
10%
71016
21424
1.3%
0.4%
03%
250744008
75.8%
46.2%
48.2%
90697
29852
1.3%
0.5%
1.3%
27198992
73.7%
3.7 QUALITY POLICY
SECURITY:The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products.
TRUST:The bank appreciates the trust placed by their policy holders in the bank.Hence, it will aim to manage their investments very carefully and live up to this trust.
INNOVATION:Recognizing the different needs of our customers, the bank offers arange of innovative products to meet these needs.
INTEGRITY
CUSTOMER CENTRIC
PEOPLE CARE ³ONE FOR ALL AND ALL FOR ONE´
TEAM WORK
JOY AND SIMPLICITY
4. RESEARCH OBJECTIVES & SCOPE OF RESEARCH PROJECT
4.1 PROBLEM DEFINITION
Sales Executives were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the customers is also a problem to the sales executives.
4.2 OBJECTIVES OF RESEARCH PROJECT
4.2.1 PRIMARY OBJECTIVES
To open new savings accounts by convincing customers and to promote the benefits of those which are provided by the bank.
o To find the different way of convincing customers.
o To study brand image of the bank.
o To increase the business of the bank.
4.2.2 SECONDARY OBJECTIVES
o To determine the need and purpose of a sales executive.
o To understand the deciding criteria for people to become sales executive.
o To offer suggestions based upon the findings.
4.3 GEOGRAPHICAL SCOPE
The same problem was with the all other branches of HDFC Bank even out of the Hyderabad city. The management is conducting the same research on a big ground while my contribution is tiny. Though my sample size and geographical area was defined and confine to a particular territory but the application of output from the research are going to be wide.
4.4 PRODUCT SCOPE
o Studying the increasing business scope of the bank.
o Market segmentation to find the potential customers for the bank.
o To study how the various products are positioned in the market.
o Corporate marketing of products.
o Customer’s perception on the various products of the bank.
5. RESEARCH METHODOLOGY AND LIMITATIONS
All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession Hyderabad.
5.1 RESEARCH PLAN
5.1.1 Preliminary Investigation:
o In which data on the situation surrounding the problems shall be gathered to arrive at
o The correct definition of the problem.
o An understanding of its environment.
5.1.2. Exploratory Study:
To determine the approximate area where the problem lies.
5.2 RESEARCH DESIGN
Research was initiated by examining the secondary data to gain insight into the problem. By analyzing the secondary data, the study aim is to explore the short comings of the present system and primary data will help to validate the analysis of secondary data besides on unrevealing the areas which calls for improvement.
5.2.1 DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected through self Administration. Due to time limitation and other constraints direct personal interview method is used. A structured questionnaire was framed as it is less time consuming, generates specific and to the point information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers. In questionnaires open ended and closed ended, both the types of questions has been used.
5.2.2 COLLECTION OF DATA
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.
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.
5.3 SAMPLING PLAN
Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.
Sampling Units:
Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Hyderabad.
Sample Technique:
o Random Sampling
o Research Instrument
o Structured Questionnaire
o Contact Method
o Personal Interview
5.4 SAMPLE SIZE
My sample size for this project was 200 respondents. Since it was not possible to cover the whole universe in the available time period, it was necessary for me to take a sample size of 200 respondents.
5.5 DATA COLLECTION INSTRUMENT DEVELOPMENT
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.
5.6 RESEARCH LIMITATIONS
o It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days.
o As stipend, money was not given it was difficult to continue the project work.
o All the work was limited in some limited areas of Hyderabad so the findings should not be generalized
o The area of research was Hyderabad and it was too vast an area to cover within 60 days.
6. CHAPTER DATA ANALYSIS , INTERPRETATION AND PRESENTATION
