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TOPIC – MARKET POTENTIAL
SURVEYOF HDFC
NAME – VIVEK GOYAL
COURSE - MMM
1
SUMMER INTERNSHIP PROJECT
Carried out at
“HDFC BANK, PUNE”
Submitted towards the partial fulfilment of
MBA (Autonomous)+MMM(2006-08)
From:
Vishwakarma Institute of Management
Submitted by: Vivek Goyal
2
Project Guide:Mr. Reloj BalakrishnanCorporate Sales Manager(Salary Account)HDFC BANK, PUNE
Faculty Guide:Mr.
WE UNDERSTAND YOUR WORLD
3
Contents
1. Acknowledgement 4
2. Declaration 5
3. Objective 6
4. Rationale for undertaking the research 6
5. Introduction
a. Organization Scenario
b. Organization Profile
8
6. Objective of the Study 23
7. Methodology 24
8. Scope of the Study 24
9. Project Analysis 35
9. Detailed Findings and Observations 60
11. Summary of Conclusion 63
12 Questionnaire 65
13.. Bibliography 67
4
ACKNOWLEDGEMENT
I feel great pleasure to thank
“Mr. Raja Upadhayay (State Sales Head)”
The coordinator of my summer project at the organization. Without his support &
Guidance it would not have been possible to complete my summer project.
The word falls short to show my gratitude to
“Mr.Reloj Balakrishnan (Sales Manager)”
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For giving me the exposure to the industry and giving in depth knowledge of
various marketing strategies applied in the dynamic business environment.
I am deeply thankful to Mr.Shikhar Sharma, Mr.Rajneesh Kohli, Ms.Nabinita,and
Mr.Mahesh Dekhane under whose guidance and support the project was carried out at
the bank.
Sincere thanks expressed to all staff members of Marketing Department, for
encouragement, heartily cooperation and valuable guidance.
This is a Summer Internship report on training at HDFC BANK, PUNE. The
training period was of 60 days. It started on 21-05-2007 and completed on 20-07-2007.
I would like to thank all our professors that have helped me in learning the importance
of various aspects of management. I would also like to thank all the individuals that
helped me during the course of the project.
Declaration
6
I, Vivek Goyal, student of PGDM+MMM (2006 – 2008), VIM, hereby declare that this
project report titled “Research & Analysis of HDFC BANK in Corporate Salary
Account” has been originally prepared by me and pertains to my original work done
during the summer training tenure, for “HDFC BANK, PUNE”. One copy of this
project report has been submitted to HDFC BANK and another to VIM-PUNE, other
than that this report has not been submitted to any other organization.
Vivek Goyal
PGDM+MMM (2006 - 2008)
VIM, PUNE
\
7
OBJECTIVE:
“MARKET POTENTIAL SURVEY OF
HDFC BANK IN CORPORATE SALARY ACCOUNT”
Rationale for undertaking the research:-
This study was chosen keeping in view the interests of the company as well as the
summer trainee. The target aimed by the research was “Research & Analysis of HDFC
BANK in Corporate Salary Account” in banking sector in Pune region by interviewing
of various companies. This meant a lot of exposure for the trainee as and when he
8
would interact with different people with different requirements. Also both the
organization and the trainee will know the trends in sector.
The survey so done may form the basis of plan of action by HDFC BANK. It will help
them to know where to canalize their resources at present so as to achieve optimum
results. Also knowing which schemes being used by the competitors mostly, the
organization can decide which activities to be done to get maximum salary accounts.
Executive Summary
A new private sector Bank promoted by housing Development Corporation Ltd.
(HDFC), a premier housing finance company. The bank is the first of its kind to receive
an in-principle approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on 10th October 1994 from
RBI and the bank was opened by the then finance minister Mr. Manmohan Singh. The
Bank transacts both traditional commercial banking as well as investment banking.
HDFC, the promoter of the bank has entered into an agreement with National
Westminister Bank Pc. and its subsidiaries (Natwest Group) for subscribing 20% of the
banks issued capital and providing technical assistance in relation to the banks proposed
banking business. The Bank opened its first branch in Ramon House at Church gate,
Mumbai on January 16th 1995. Subsidiaries and associate companies of HDFC include
HDFC Bank HDFC Mutual Fund, HDFC Standard Life Insurance, HDFC Realty
HDFC Chub General Insurance Company Ltd. Intel net Global Services Ltd. and Credit
information Bureau (India) Limited. HDFC Bank offers various products for retail
9
customers. It provides the customers with Savings and Current Accounts, Fixed
deposits loans and credit and debit cards. It also provides with Investment, payment,
Forex and insurance services. HDFC Bank has gone on to win several awards right
from the best bank in private sector to best bank in the country. It has received awards
from NASSCOM, Economic Times, Business Today, Forbes Global, Business World,
Asian Banker’s Excellence award and many others. HDFC Bank is one of the major
players in the corporate accounts segment in the country. In PUNE there are three major
players in the corporate account segment; viz. Citibank, ICICI Bank and HDFC Bank.
PUNE is known as the one of the Information Technology hub of India, and therefore
these IT equipped organizations and software companies and also some small corporate
were the focus of the study. The study was about these organizations and the
relationship that they share with the bank that provides them with the corporate
accounts for their employees. The study was also to check the willingness of the
organizations to go to a new bank if the bank provided them with better products and
services.
HDFC – The Organisation
Background:
HDFC was incorporated in 1977 with the primary objective of meeting a social
Need – that of promoting home ownership by providing long-term finance to
households for their housing needs. HDFC was promoted with an initial share capital of
Rs. 100 million.
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Business Objectives:
The primary objective of HDFC is to enhance residential housing stock in the
Country through the provision of housing finance in a systematic and professional
Manner, and to promote home ownership. Another objective is to increase the flow of
resources to the housing sector by integrating the housing finance sector with the
overall domestic financial markets.
Organisational Goals:
HDFC’s main goals are to:
a) Develop close relationships with individual households,
b) Maintain its position as the premier housing finance institution in the country,
c) Transform ideas into viable and creative solutions,
d) provide consistently high returns to shareholders, and
e) To grow through diversification by leveraging off the Existing client
Subsidiary and Associate Companies
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The subsidiaries of HDFC consists of
1. HDFC Bank
2. HDFC Mutual Fund
3. HDFC Standard Life Insurance Company
4. HDFC Realty
5. HDFC Chubb General Insurance Company Limited.
6. Intel net Global Services Limited
7. Credit Information Bureau (India) Limited
8. Other Companies Co – Promoted by HDFC
i. HDFC Trustee Company Ltd.
ii. GRUH Finance Ltd.
iii. HDFC Developers Ltd.
iv. HDFC Venture Capital Ltd.
v. HDFC Venture Trustee Company Ltd
vi. HDFC Securities Ltd.
vii. HDFC Holding Ltd.
viii. Home Loan Services India Pvt. Ltd.
12
HDFC BANK
The Organisation.
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
link in the private sector, as part of the RBI's liberalisation 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 on 16th January 1995. In the year 1998
HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its
clearing bank
.
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
13
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
Capital Structure
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up
capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's
equity and about 19.4% of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held
by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders.
The shares are listed on the 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".
Times Bank Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank Limited (another
private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged
with HDFC Bank Ltd., effective February 26, 2000. 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. The acquisition added significant value to HDFC Bank in terms
of increased branch network, expanded geographic reach, enhanced customer base,
14
skilled manpower and the opportunity to cross-sell and leverage alternative delivery
channels.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network
of over 531 branches spread over 228 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 centres 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 centres where the NSE/BSE have a strong and active
member base.
The Bank also has a network of about over 1054 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 Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director,
15
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.
The management consists of the Chairman Mr Jagdish Kapoor and 9 other Directors
that assist him in achieving objectives of the bank.
They are
From top left to bottom right (first top row)
1. Mr. Jagdish apoor 2. Mr. Aditya Puri
3. Mr. Keki M. Mistry 4. Mr. Vineet Jain
5. Dr. Venkat Rao Gadwal 6. Mrs. Renu Karnad
7. Mr. Arvind Pandey 8. Mr. Bobby Parikh
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9. Mr. Ranjan Kapur 10. Mr.Ashim Samanta
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Corporate Governance
HDFC Bank recognizes the importance of good corporate governance, which is
generally accepted as a key factor in attaining fairness for all stakeholders and
achieving organizational efficiency. This Corporate Governance Policy, therefore, is
established to provide a direction and framework for managing and monitoring the bank
in accordance with the principles of good corporate governance.
Code of Corporate Governance
The bank believes in adopting and adhering to the most superior corporate governance
practices and continuously benchmarking itself against each such practice in the
industry. The bank understands and respects its fiduciary role and responsibility to
shareholders and continually strives to full fill their expectations. We strongly believe
that the best board practices, transparent disclosures and shareholder empowerment are
necessary for creating shareholder value.
The bank has infused the philosophy of corporate governance in all its activities. The
philosophy on corporate governance is an important tool for shareholder protection and
maximization of their long term values. The cardinal principles such as independence,
accountability, responsibility, transparency, fair and timely disclosures, credibility etc.
serve as the means for implementing the philosophy of corporate governance in letter
and in spirit.
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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.
In terms of software, the Corporate Banking business is supported by Flex cube, while
the Retail Banking business by Fin ware, both from I-flex Solutions Ltd. The systems
are open, scaleable and web-enabled.
The Bank has prioritised 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.
19
RATING
Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies – Credit Analysis
& Research Limited. (CARE) and Fitch Ratings India Private Limited. The Bank's
Fixed Deposit programme 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)
programme "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 (ind)" rating to the Bank's deposit programme, with the outlook
on the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high". HDFC Bank also has its long term unsecured, subordinated (Tier
II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited.
CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch
Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the
rating as "stable". In each of the cases referred to above, the ratings awarded were the
highest assigned by the rating agency for those instruments.
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
20
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.
The Social Initiative:
The year 2004-05 saw HDFC making renewed efforts in fulfilling its social
commitments by way of several ongoing as well as new initiatives. The latter included
innovative financing of slum up-gradation and low-income housing projects, dialoguing
with key stakeholders on policy issues, responding to the tsunami tidal wave disaster
and staff volunteering and participation in varied community development activities.
HDFC also gained special recognition for its corporate social responsibility (CSR)
function in the form of winning The Economic Times Corporate Citizen Award for
2003-04.
Businesses:
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments.
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Wholesale Banking Services:
The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to the small & mid-sized corporate and agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional
banking services, including working capital finance, trade services, transactional
services, cash management, etc. The bank is also a leading provider of structured
solutions, which combine cash management services with vendor and distributor
finance for facilitating superior supply chain management for its corporate customers.
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 recognised as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual funds,
stock exchange members and banks.
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 the customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile
Banking.
22
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.
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 September 30,
2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The
Bank is also one of the leading players in the "merchant acquiring" business with over
50,000 Point of- sale (POS) terminals for debit/credit cards acceptance at merchant
establishment.
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
liberalisation 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
23
government securities. The Treasury business is responsible for managing the returns
and market risk on this investment portfolio.
Products and Services – HDFC Bank:
Product range: The following is the product range offered at HDFC: While various
deposit products offered by the bank are assigned different names, the deposit products
can be categorised broadly into the following types. Definition of major deposit
schemes are as under: -
1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is withdraw able on
demand;
a) Savings Account:
"Savings Deposits" means a form of Demand Deposit which is subject to restrictions as
to the number of withdrawals as also the amounts of withdrawals permitted by the bank
during any specified period; HDFC provides with saving bank account with the usual
facilities, and one also gets a free ATM card, intrbranch banking, bill payment facilities,
phone banking and mobile banking.
2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed period withdraw able
only after the expiry of the fixed period and includes deposits such as Recurring /
Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income
Certificate / Quarterly Income Certificate etc.
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3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn
on giving at least one complete banking day's notice.
4. Current Account:
"Current Account" means a form of Demand Deposit wherefrom withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are neither
Savings Deposit nor Term Deposit; The account holder gets a personalized cheque
book, monthly account statements, and Inter-branch banking.
5. Corporate Account:
These are more commonly known as Salary Accounts. These are account in HDFC
BANK with zero balance. These are given to salaried people. These accounts are
opened by the employer for the employees to deposit the salary of the employee directly
to the account.
6. HDFC Bank Preferred:
A preferential Savings Account where in, one is assigned with a dedicated Relationship
Manager, who’s you’re the one point contact. One also get privileges like fee waivers,
enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and
lower interest rates on loans.
7. Sweep-In Account:
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A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings Account
runs a bit short, one can issue a cheque (or use ATM Card). The money is automatically
swept in to one’s Savings Account from one’s Fixed Deposit Account. The excess
funds in the account are directly transferred to the fixed deposit account of the account
holder.
8. Super Saver Account:
It gives one an overdraft facility up to 75% of one’s fixed deposit. In an emergency, you
can access your funds while your fixed deposit continues to earn high interest.
9. HDFC Bank Plus:
Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus,
a Current Account and then something extra for the HDFC bank customers. One can
transfer up to Rs. 50 lakh every month at no extra charges, between the four metros.
One can also avail cheque clearing between the four metros, get cash delivery/pick-up
up to Rs. 25000/-, home delivery of demand drafts, at-par cheque, outstation cheque
clearing facility, etc.
10. Demat Account:
One can conduct hassle-free transactions on the stock market for one’s shares. The
shares held by the customer are protected from damage, loss and theft, by maintaining
these shares in electronic form. This account can be accessed through Internet too.
11. Loans:
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There are a variety of loan schemes offered like personal loans, new car loans, used car
loans, loan against shares, consumer loans, two wheeler loans, and home loans. These
are available with easy payback in monthly instalments. Loans are sanctioned with easy
documentation and quick delivery.
27
Services offered
Following are the services offered at HDFC bank for its esteemed customers
i. Phone Banking:
Round the clock automated banking services with 39 phone banking numbers
available as customer help-line. A customer can call in any time and get help no
matter where he may be without any time barrier.
ii. ATM banking:
HDFC bank brings 24-hour banking for it customers. Apart from routine
transactions, you can also pay your utility bills and transfer funds, at any of our
ATMs across the country all year round.
iii. Mobile Banking:
A customer can access his account on mobile phone at no extra air-time cost. One’s
banking transactions are just an SMS away
iv. Inter-city/Inter-branch Banking:
One can access one’s account from any of the HDFC’s 347 branches in 174 cities.
Other than that the customer can access their accounts at any of the ATM canters
across the country
v. International Debit Card:
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An ATM Card one can shop with all over the country and in over 140 countries
other than India. One can spend any currency depending on the country he/she is in,
and have the money in rupees in the account here in India.
vi. International Credit Cards:
HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are
accepted worldwide. If one has outstanding balance on one’s other credit card, one
can transfer that balance to this card at a lower interest rate.
vii. Mutual Funds:
Apart from a wide choice of mutual funds to suit any consumer needs, one benefit
from expert advice on choosing the right funds based on in-depth market analysis
by experts
viii. NRI Services:
A comprehensive range backed by unmatched features and world-class service
ensures NRIs all the banking support they need.
ix. Utility Payments made easy:
One can pay utility bills like telephone bills, electricity bills and mobile phone bills
through our ATMs, Internet, phone or mobile phone. Gone are the days when one
stood in long queues and wrote cheque.
x. FOREX Facilities:
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Avail foreign currency exchange, travellers’ cheques, and foreign exchange demand
drafts to meet your needs while travelling abroad.
xi. Insurance:
HDFC bank also brings you Life Insurance and Pension Solutions like Risk Cover
Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std. Life
Insurance Company Limited.
30
Objective of The Project:
Learning in the classroom is partial unless it is added with practical experience and
training. Training is the most important part of learning in any technical and
professional education. Exposing the young prospective executive to the actual business
industrial environment not only broaden their horizon but also helps them to effectively
grasp the various angels of business. That will beneficial for them when they actually
come to occupy the execrative position. It is an aim that practical training of small
duration obviously had been made valuable and indispensable of the MBA degree.
Hence the objective of the project is:
1. To find prospective customer for the HDFC bank and to find the product potential in
the market.
2. To make customer informative about the technology offered.
3. To make recommendation and suggestion about the scope and Feasibility for HDFC
product.
Objective of study
“Market Potential Survey of HDFC BANK in Corporate Salary Account”
Primary: -
1. Analysis and evaluation of customer s satisfaction with respect to product
performance.
2. To determine the main characteristic which customers look upon while purchasing
and selecting the product?
31
3. To determine the other brand those are competing with the same product rang.
Secondary: -
1. Service level and channel associate approach.
2. To find the level of brand awareness.
3. To find out the company market share.
32
Methodology of the study: -
Research Methodology:
Research as a mean of getting knowledge can be carried out either arbitrarily or in a
systematic fashion. It is a purposive investigation.
Research may be a mean to know the small change and time forced upon us as
individual or as a society. Research as process involves defining the problem,
formulating the hypothesis, organizing and evaluating the data, deriving inference and
conclusion after careful testing.
Data Collection:
As data is required for any research activity, it is collected (for those
Both the Primary and Secondary) as follows:
Primary Data:
The primary data are those, which are collected a fresh and for the first time, and thus
happen to be in character. Primary data can be collected by various methods.
Secondary Data:
This data is collected from different sources available consolidated From book
publication reports, websites where used as a source of secondary data in order to do
this project and to collect necessary data. I have used the manuals and leaflets of the
bank.
Scope of study
33
i. Special area to be focused for increasing the sales and for sales promotion
activities to be adopted.
ii. To make product more innovative and easy to understand
iii. For providing maximum satisfaction to the customer by knowing their needs
and requirement about product and services.
iv. Steps to be taken at present for survival and facing the competition with other
equivalent product.
v. Continues improvement and for better management.
vi. Maintaining good relation between manager and customer.
Limitation
i. All the survey work is done for HDFC bank as per their requirement.
ii. The study is limited to Pune region only.
iii. Only hundred customer’s data is being collected and on that basis final report is
being prepared.
iv. Only some of the products are being considered for the study.
v. Limited time period for which study has done.
vi. It includes the response error applicable to any survey.
vii. For scale up the results simple probability is used.
34
Corporate Accounts
Introduction
When an organization opens a HDFC Bank Corporate Salary Account it not only gives
its employees more than just an account. They get a host of e-Age Banking facilities
such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card
(valid in 140 countries) and Bill Pay. And along with that free Demand Drafts and
preferential interest rates on Personal Loans.
An organization will be giving its employees an account that makes banking a pleasure
for them. The organization would have also saved time and money by directly crediting
their employee salaries nation-wide at one go.
Advantages To the Employer
HDFC Bank Salary Accounts benefits the employer by :-
i. Reduces your paperwork.
ii. Saves remittance costs.
iii. Employees receive instant credit of salaries.
iv. More convenient than ECS.
Advantages to the Employees:
i. Zero Balance Account
The employee does not have to maintain any minimum balance in the account.
35
ii. Free Debit Card
The employees do not have to pay the annual fee for their Debit Cards.
Additionally, the first year annual fee is also waived for one additional account holder,
as in the case of a savings account holder. This plus all the other Debit Card benefits are
available to your employees.
iii. Free Inter-city/Branch banking
There is no cap on the transaction size for inter-branch/city transactions for
your employees. The fees associated are also waived. They can perform the following
transactions:
• Cash withdrawal: Customer presence required.
• Cash deposit: Customer presence required
• DD/MC issuance: Customer presence required
• Cheque deposit: Customer presence not required
• Any other written instructions: Customer presence not required
• This facility is not extended to premature withdrawal of Fixed Deposits
iv. Free Demand Drafts
Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any
of the HDFC Bank branch locations. This offer can be availed of through Phone
Banking or Net Banking or at the branch. The amount of the Demand Draft will be
debited to the salary account. Please note: DDs drawn on correspondent bank will
attract full charges
v. Cash delivery
If there isn't a HDFC Bank that is easily accessible from your office, we will
deliver cash against cheques from the employees once a week subject to a maximum of
36
twice a week. Maximum amount of withdrawal per employee is Rs 10,000, minimum
Rs 1,000/-. This service is currently available in Mumbai, Delhi, Chennai, Hyderabad,
Bangalore, Pune and Ahmadabad.
vi. Overdraft facility
Employees with a salary account are eligible for this facility: Employees with a "Net
Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean overdraft
facility on the savings account @ 18%. Please note: The employee has to sign an
indemnity bond and give a copy of the latest salary slip.
vii. Discounts on loans
Your employees can avail of the benefits of preferential pricing on our asset products,
namely Loans against Securities, Car Loans and Personal Loans All loans at discretion
of the bank.
Salary Accounts – How it all works?
The banks approach the corporate houses and present them with the various salary
products that are offered by the bank. The organizations then, choose the bank and the
product from the various options that are offered to them. These organizations have an
association with one of the banks providing salary products
Types:
There are various types of Salary Accounts that are offered by HDFC Bank for different
class of people in the society. Keeping the need of the customer in mind, various types
of accounts are designed and offered to the corporate that choose the salary account for
their employees.
37
i. Payroll
The HDFC Bank payroll account offers flexibility as well as access to premium features
like Bill Pay, Insta Alert at a nominal charge. One can also access their account anytime
by phone or through the Internet and pay for their utility bills at a nominal charge.
ii. Classic
The Classic Salary account is a Zero Balance Account which earns the account holder
interest on his savings from salary at a competitive rate fixed by the bank from time to
time. There is no fee applicable for branch transactions and he receives banking
statements once every six months.
iii. Regular
The Regular account is a Zero Balance account and comes with a Free International
Debit Card , facilities like free inter-city / branch banking and Safe Deposit lockers
(subject to availability)
iv. Premium
A power-packed account for successful salaried professionals, the Premium Salary
account comes with a free International Debit Card and add-on Debit card for life, with
the option of choosing between a Silver or Gold credit card at preferential rates.
v. Defence Salary Account
This account is designed specifically for Defence personnel’s. The Account is a Zero
Balance Account and comes with a free International Debit Card.
38
Accolades
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class
Indian Bank". They realised that only a single-minded focus on product quality and
service excellence would help them get there. Today, HDFC can proudly say that they
are well on our way towards their goal.
i. London-based Euro money magazine gave us the award for "Best Bank - India"
in 1999, "Best Domestic Bank" in India in 2000, and "Best Bank in India" in
2001 and 2002.
ii. In 2003, Forbes Global named HDFC in its ranking of "Best under a Billion,
200 Best Small Companies for 2003".
iii. Leading Indian business magazine Business Today in a survey rated HDFC
"Best Bank in India" 2003, and "Best Private Sector Bank" in India in 1999.
iv. The Asian Banker Excellence Retail Banking Risk Management Award in
India for 2004
v. The Asian Banker Excellence Retail Banking Risk Management Award for
2004
vi. Economic Times Awards - "Company of the Year" Award for Corporate
Excellence 2004-05.
vii. The Business Today-KPMG Survey published in the leading Indian business
magazine Business Today has named HDFC Bank "Best Bank in India" for the
third consecutive year in 2005.
viii. HDFC Bank named the "Most Customer Responsive Company - Banking an
Financial Services in The Economic Times - Avaya Global Connect Customer
Responsiveness Awards 2005"
39
ix. The Asset magazine named HDFC Bank "Best Cash Management Bank" and
"Best Trade Finance Bank" in India, in 2006.
40
Financials
Net Profit for HDFC went up by 83.8% at Rs.503.2 million as compared to Rs.273.8
million. Net Margins improved by a 330 basis point from 10.5% in FY05 to 13.8% in
significantly by 78.3% from Rs 18.9 in FY05 to Rs 33.3 in FY07. Operating revenues
increased to Rs. 3,625.0 million from Rs. 2,571.3 million in FY05, representing a Y-o-
Y growth of 41%. The company witnessed 62% Y-o-Y growth in UTG Vertical and
26% growth in EMI Vertical. Operating profit grew by 44% from Rs 466.5 million in
FY05 to Rs. 671.9 million. Operating margins improved by a 40 basis point from
18.1% in FY05 to 18.5% in FY06.While the institution registered yet another 30% YoY
growth in approvals and 28% YoY growth in disbursements, a quantum leap in profit
on sale of investments have added to its profitability. While the institution sustained the
trend of 30% YoY growth in assets and 20% YoY growth in bottom line, a quantum
leap in dividend from subsidiaries has added to its profitability. Margins and operating
efficiency continue to be in line with HDFC’s corporate policy. Leading private sector
life insurance major HDFC Standard Life has recorded a strong YoY growth of 112 per
cent in FY 07, with new business first year premium touching Rs 1,029 crore, stated a
release issued here today. Major Growth Events for the FY – 07 During Q4 FY07, the
company signed the following major contracts
(a) Contract with GE Energy to provide geospatial data management services for Swiss
COM Fix net over a period of three and half years and
(b) Contract with Los Angeles County to provide Digital Aerial Imagery Services to 26
State and Local Governments Consortium within the County.
InfoTech launched several new service offerings in both UTG and EMI verticals during
the year. These include piping and instrumentation (UTG); and marine vertical practice,
41
interiors and seating, signalling and interlocking, aerospace structures, and validation
and verification (EMI).
Substantial new client additions and long-term relationships with existing marquee
clients to boost future revenue growth
uring FY07, the company set up dedicated design centres for major clients including
Hamilton Sundstrand, Alston Transportation, Boeing, Airbus, KPN Telecom etc.,
strengthening several long-term relationships. 40 new clients were added during
FY2007, 19 in the UTG vertical and 21 in EMI vertical. Of these, 10 new clients were
added during Q4FY07; 6 in UTG and 4 in EMI. Significant ramp-up of critical mass
InfoTech expanded its human resources by 1,546 and employed 3,978 associates at
the close of FY07 from 2,432 associates in FY05.Majority of the hiring were focused
on lower experience resource, resulting in reduction in employee cost as a proportion of
revenue from 47.2% in FY05 to 46.8% in FY07. Average utilization rate was fairly
constant at 75% levels Y-o-Y.
42
Recommendations
In the field of the Corporate Accounts most organizations prefer to choose one of the
three banks; HDFC, ICICI and Citibank though there are around 10 banks that provide
the service. Around 71% of the corporate houses prefer to bank with one of these three
banks.
INDUSTRY ANALYSIS:
Satisfaction:
Around 90% of the organizations are satisfied with the bank where they are having the
corporate accounts for their employees. But 70% of the organisations expect better
services from the bank. This shows that though the organizations are continuing to
43
deposit the salary in the current bank if good offer comes their way they would be more
than happy to take the opportunity and make the switch to the new bank.
Move from One to the Other
Most of the banks have not changed the bank in the past. There are 25% of the
organizations that are satisfied with the products and services that they receive from
their bank and prefer to continue rather than changing to a new bank even if they are
providing better products and services.
78% of banks have not changed the bank in the past but of the 78 around 68% of them
say that they desire to change the bank in future, if they are offered with better products
and services by other banks. This shows that the organizations are not hesitant to
change the bank. They want the best possible alternative available to them.
Relationship
Most of the organizations have good relationship with their bank. Only around 13% of
the organizations are not happy with the relationship that they share with their bank. But
an important thing to notice here is, of the balance 87%, around 45% of the
organizations say that they are satisfied with the banks but they are not standing up to
say that they share a good or excellent relationship with the bank that handles the
corporate accounts for their employees. These organizations are therefore an
opportunity for other banks.
Responsiveness
57% of the corporate houses say that they have a satisfactory customer responsive bank.
32% of them say that they have a good customer responsive bank and only 16 of the
135 i.e. 12% say that the customer responsiveness of their bank is bad.
44
This is the most important factor that determines the time for the relationships between
the bank and the organization. It comes up as, the organization has to interact with the
bank only for opening of the account of new employees and that is the most important
thing that they consider for their relationship with the bank.
After Change – Where?
Of the 53 banks that are contemplating to change the bank 29 of them do not have any
preference as to which bank they desire to go to. This means that 55% of the corporate
houses do not differentiate much between the various banks providing corporate
accounts. This can even mean that they are considering more than two banks for change
and are not able to shortlist one or two from all the available banks providing the
service.
FOR HDFC
Satisfaction
Of the 35 Organisations that are having their Accounts with HDFC 30 of them are
satisfied with the services that they receive from HDFC Bank. But out of the 30, 22
expect better Products and services from HDFC. This shows that they put HDFC in the
top performer’s category and expect the bank to be the first to come up with newer
ideas and provide the best to their customers. This may also mean that they are
observing improvements in the products and services of other banks and not seeing
sufficient improvement with their bank. There are 5 organisations that are not satisfied
with the services that they receive and desire better services from HDFC.
Move from one to the other
45
Of the 35 organisations, 32 organisations have not changed the bank since starting the
corporate account. This shows that HDFC Bank was able to cater to the needs of all the
organizations in time, and therefore they have stayed along with the bank. There are 17
organisations that are contemplating change of bank from HDFC to other banks in case
there are good products and services being provided by them. This is less than 50% of
the banks and pretty much in tandem with the industry norm. Considering that HDFC is
one of the top three banks providing corporate accounts this number needs to be
brought down to improve the efficiency and effectiveness of the bank.
Relationship
Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are
not happy with the relationship that they share with HDFC. Of the 35, 13 say that they
share a satisfactory relationship with the Bank and that comes to around 37% of the
organisations. This is a huge figure in the terms that the relationship can swing in either
directions and HDFC needs to keep a close eye on these organizations and cater to their
needs in time to ensure a longer relationship with these firms and to avoid cost of
acquiring additional new customers every time.
Responsiveness
Of the 35 organisations that are having the corporate accounts with HDFC, only 4 are
not happy with the customer responsiveness of HDFC bank. Of the 35 Organisations
there are 13 say that they have good customer responsiveness from the bank; which
means that 18 say that they are satisfied with the banks customer responsiveness. This
figure is huge in terms of the industry norms and HDFC bank needs to take a closer
46
look at the needs of these organizations. Few complaints received were with respect to
the lead time, and the follow up with the organizations.
After Change – Where?
56% of the organizations are undecided about the change of bank that they may have in
future. This means that they are not considering change with as an only option. These
organizations could have a longer relationship with the bank if their needs are
understood properly and met in time. It can be said that it is the point of contact with the
organizations that could be considered as the most important factor that decides, the
way the organizations see the relationship with their bank
47
DATA ANALYSIS
INTRODUCUION:
Data analysis and interpretation plays an important role in turning quantity of paper into
defensible, actionable sets of conclusions and reports. It is actually a set of method and
technique that can be used to obtain information and insights from data.
It can lead the researcher to information and insights that would not be available. It can
help to avoid erroneous judgments and conclusion. It can provide a background to help
interpret and understand analysis conducted by others. Knowledge of power of data
analysis techniques can constructively influence research objectives and research
design.
48
DATA TABLE NO 1
MARKET COVERAGE OF THE COMPETITIVE BANKS
INCLUDING HDFC BANK LTD
BANK NAME NO. OF RESPONDENTSPERCENTAGE OF
RESPONDENTS
HDFC 22 22%
ICICI 25 25%
UTI 14 14%
CO-OPERATIVES 9 9%
OTHERS 8 8%
POTENTIAL MARKET 22 22%
TOTAL 100 100%
INTERPRETATION
i. ICICI Bank Ltd scores top position in market coverage of corporate salary
account in Pune Region
ii. HDFC Bank gets a second position
iii. The amount of potential market is as high as the market share of HDFC
Bank i.e. 22%
49
GRAPH NO 1
MARKET COVERAGE OF THE COMPETITIVE BANKS
50
TABLE NO 2
CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD
PARAMETERS OF BANK SELECTION PERCENTAGE OF CUSTOMER CHOICE
BRAND NAME 23.60%
PERVIOUS EXPERIENCE 22.40%
RELIABILITY 22.10%
EASY ACCESS 19.80%
COMPANY POLICY 14.10%
INTERPRETATION
i. Brand Name of a bank has the greatest impact on the customer in regards
with Bank Selection Parameters. (24%)
ii. Pervious Experience and Reliability about the bank get aequal score of 22%
each.
iii. Followed by Easy Access (20%)
iv. Company (Applicant company) policy (14%)
51
GRAPH NO 2
CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD
0%10%20%30%40%50%60%70%80%90%
100%
BrandName
Reliability CompanyPolicy
Parameters for Bank Selection
CUSTOMER CHOICE(%)
PreviousExperience
EasyAccess
52
TABLE NO 3
CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY
ACCOUNT
BASIC FACILITIES IN CS ACCOUNT PERCENTAGE OF RESPONDENTS
ZERO BALANCE 100%
ATM NETWORK 85%
NET BANKING 68%
BILL PAYMENT 34%
INTERNATIONAL DEBIT CARD 45%
INTERPRETATION
i. Zero Balance facility is a must have feature of salary account (100%)
ii. ATM Network facility get a second position with 85% of the respondents
opting for this option
iii. Net Banking facility is mostly opted by those employees who are from the
IT or Software Companies due to the nature of work culture and easy access
of net. (68%)
53
iv. International Debit Card facility is opted fro only when its given as an
additional feature and free of any hidden cost. This facility is generally
opted for the employees who are at a higher position. (45%)
v. Bill Payment facility is the least opted facility as it comes with some amount
of extra charges.(34%)
54
GRAPH NO 3
CUSTOMERS PRIME REQUIREMENT
IN CORPORATE SALARY ACCOUNT
55
TABLE NO 4
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF NET BANKING
BANKEXCELLEN
T
GOO
D
FAI
R
SATISFACTOR
Y
UNSATISFACTIOR
Y
HDFC 73 8 12 5 2
ICICI 68 13 8 6 5
UTI 64 14 7 8 7
CO-
OPERATIVE
S
14 9 15 24 38
OTHERS 19 36 11 7 27
INTERPRETATION
i. Net Banking facility of HDFC Bank is rated as excellent by a majority of
respondents (73%).
ii. Followed by ICICI Bank,(68%) UTI Bank(64%)
iii. Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of
Baroda, etc are rated as good by 36% of the respondents.
iv. Co-Operative Banks are rated as satisfactory by 24% of the respondents.
v. Co-Operatives and other banks are rated as unsatisfactory by 38% and 27%
respectively.
56
vi. This dissatisfaction is largely due to lack of technical advancements and
capital.
57
GRAPH NO 4
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF NET BANKING
58
TABLE NO 5
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF MOBILE BANKING
BANKEXCELLEN
T
GOO
D
FAI
R
SATISFACTOR
Y
UNSATISFACTIOR
Y
HDFC 9 13 27 36 15
ICICI 13 29 27 19 12
UTI 12 18 29 35 6
CO-
OPERATIVE
S
5 14 24 40 17
OTHERS 12 19 25 30 14
INTERPRETATION
i. ICICI Bank is rated as the excellent in facility of Phone and Mobile Banking
in comparison with the rest of the banks (13%)
ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated it as
satisfactory. This is mainly influenced by the perception about the bank and
previous encounter
iii. The services of all the banks is rated as fair by approximately 25%+
respondents for each bank.
59
GRAPH NO 5
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF MOBILE BANKING
60
61
TABLE NO 6
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF ATM NETWORK
BANKEXCELLEN
T
GOO
D
FAI
R
SATISFACTOR
Y
UNSATISFACTIOR
Y
HDFC 75 9 5 7 4
ICICI 80 8 5 3 4
UTI 70 6 4 12 8
CO-
OPERATIVE
S
15 11 30 31 13
OTHERS 33 19 27 10 11
INTERPRETATION
i. ATM Network of ICICI Bank is rated excellent (80%). Followed by HDFC
Bank (75%).
ii. UTI Bank gets third position. (70%)
iii. Co-Operative Banks are rated as fair by 30% of the respondents and
satisfactory by 31% of the respondents.
iv. Other Banks are rated as excellent by 33% of the respondents and fair by
27% of the respondents.
62
v. 13% respondents rated co-operative banks as unsatisfactory.
63
GRAPH NO 6
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF ATM NETWORK
64
TABLE NO 7
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF SALES FORCE
BANKEXCELLEN
T
GOO
D
FAI
R
SATISFACTOR
Y
UNSATISFACTIOR
Y
HDFC 45 8 22 7 18
ICICI 53 8 19 9 11
UTI 47 16 26 11 10
CO-
OPERATIVE
S
35 11 31 16 7
OTHERS 29 18 21 21 11
INTERPREATATION
i. The sales executives of any Bank are the biggest source of communication.
As they are the back bone of any organization.
ii. The networking and customer contact is best done by ICICI Bank’s
followed by UTI Bank and HDFC Bank.
65
GRAPH NO 7
A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN
REGARDS WITH FACILITY OF SALES FORCE
66
TABLE NO 8
KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER
INTO A LOYAL CUSTOMER
Elements No of Respondents % of Respondents
Personal Touch 75 75%
Ensuring Customer
Security37.5 37.5%
Offering Customized
Products37.5 37.5%
Innovative Products 37.5 37.5%
Better Service Pre &Post
Banking93.75 93.75%
INTERPRETATION
Customer Retention and Customer Satisfaction are inexorably inter - linked. While
consumers may be happy to make payments and interact with their bank through
convenient – and cheaper – banking channels, they still expect high standards of
service. A consistent service reflects the bank’s brand and image across all channels.
93.75 per cent of respondent banks informed that superior service pre and post banking
has been one of the essential factors rated high by their customers. 75 per cent of
respondent banks felt that Personal touch in the dealings has helped them in winning
customers.
67
GRAPH NO 9
KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A
LOYAL CUSTOMER
68
TABLE NO 9
TABLE OF CUSTOMER’S PREFERRED BANK
BANKS % OF RESPONDENTS
HDFC BANK 24%
ICICI BANK 29%
UIT BANK 10%
CO-OPERATIVE BANKS 13%
BANK OF MAHARASHTRA 10%
KOTAK MAHINDRA 8%
INTERPRETATION
i. ICICI Bank is the most preferred bank in the market by the customer. (29%)
ii. HDFC Bank is the second most preferred bank. (24%)
iii. Co-operative Banks are the third most preferred banks. (13%)
iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each.
v. Kotak Mahindra Bank is the least preferred bank as per the respondents in
regard with Corporate Salary Account.
69
GRAPH NO 10
CUSTOMER’S PREFERRED BANK
70
TABLE NO 11
CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC
BANK LTD
Elements % of Respondents
Yes 83%
No 17%
INTERPRETATION
i. 83% of the respondents where happy with the service quality of offered by
HDFC Bank
GRAPH NO11
CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC
BANK LTD
71
72
TABLE NO 12
CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA
CRITERIA % OF RESPONDENTS
Yes 26%
No 74%
INETRPREATATION
ii. Even though 74% of the respondents are unsatisfied with the documentation in
the account opening procedure however in terms with Global Banking HDFC
Bank is one of the major contributor for putting India on No.1 position in
regards with Regulatory Systems.
GRAPH NO 12
CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA
73
74
TABLE NO 13
THE MOST EFFECTIVE MEANS OF COMMUNICATION
Elements % Of Respondents
SALES FORCE 53%
TELE MARKETING 15.8%
WORD OF MOUTH 11.3%
NEWSPAPER 9.7%
TV 6.2%
PUBLIC RELATION 4%
INTERPRETATION
i. The banks employees are rated as the most effective source of communication
(53%)
ii. Tele marketing is second most effective means of communication (15.8%)
iii. Peers group and positive as well as negative word of mouth publicity is an
effective source of communication. (11.3%)
iv. With Newspapers, Television, and Public Relations following each other.
75
GRAPH NO 13
THE MOST EFFECTIVE MEANS OF COMMUNICATION
76
TABLE NO 14
Strengthens and weakness of HDFC Bank Score Card
Parameters Score
Regulatory System 5
Technology Advancements 6
Credit Quality 5
Diversification of market beyond big
cities4
Size of Bank 5
Banking Infrastructure 4
Labor Inflexibilities 3
INTERPRETATION
i. The Indian banking sector has scored over its counterparts not only in
developing but also even in developed world such as Japan, Singapore and
Australia on significant parameters.
ii. Technology has given birth to a new era in banking. Technology can be the key
differentiator between two banks and a major factor to attain competitive edge.
Though slow in the beginning, HDFC Bank seem to have paced up in adoption
of advanced technology.
77
iii. While enhancement of credit is an important function of the Banks, it is equally
imperative to keep a check on the quality of credit to ensure good health of the
banking system and effective functioning of market for distressed assets.
iv. One of the key fundamentals of banking sector – Credit Quality too has been
rated fairly well in comparison with other Banks.
v. Even though HDFC Bank is a big player in Indian Banking sector still it is not
yet penetrated in the rural areas of India to a very great extend.
vi. HDFC Bank as earlier said is a large player in the Indian Banking Sector,
however when it comes to banking infrastructure it is one of its weak and so
labour inflexibilities.
GRAPH NO 14
Strengthens and weakness of HDFC Bank Score Card
78
FINDINGS
As stated earlier there are main two types of consumers in this field and they are:
1 Small Business consumers
2. Big Business consumers
WAYS TO COMPETE (FINDINGS)
79
Now all are competing with each other on the basis of different strategies or
combination of one or more strategies. But if we try to summarize the strategies then we
will find that most of these are common and including all these are not more than the
followings: -
i. QUALITY SERVICE:
Quality Service is the most important strategy used to compete in this market because
customers is no more centric only in India, they need better quality in the service
provided to them. The policy of ONE PIONT CONTACT should be followed by
HDFC Bank.
ii. ADVERTISEMENTS:
Only ICICI BANK and UTI BANK are countering HDFC BANK in market through
advertisements. Others are not even bothering on doing advertisements.
iii. PERFORMANCE:
HDFC Bank lacks on the prompt action where as others are a bit ahead in this line.
HDFC Bank takes nearly 8 10 days to open a salary account for tie customer company.
This is mainly because HDFC bank follows the guidelines of RBI and the required
number of documents for account opening in a bit regress. But when it comes to service
performance customers are happy.
iv. DIFFERENT SCHEMES:
Some additional facilities should be provided to large companies in order increase
Brand Value as well as bring customer loyalty.
80
v. POTENTIAL MARKET:
The current account holders should be contacted as there is less amount of
documentation and lesser time is spend in convincing the customer about HDFC Bank
firstly and secondly about Salary Account.
81
SUGGESTIONS
After talking to customers and staffs I suggest the following points to keep customers
happy
QUICK SERVICE: -
HDFC Bank must try to provide services as early as possible and reduce the time gap
between date promised and work performed so that customer must not get irritated.
PROPER CO-ORDINATION: -
Staffs of HDFC are still not comfortable with the queries of customers about their new
service, as they sometimes feel dumb to some of the questions. They must get proper
updating from the head office related to any changes or problems faced by the staffs.
PROPER ORGANISATION OF WORK: -
HDFC Bank needs to be more organized in terms with area division among the various
internal sales teams. The potential market should be followed up in order to get good
sales number.
QUALITY SERVICE: -
HDFC Bank customers generally have following complains:
Number of days has passed yet my account opening process is under process
I have not receive my personalized cheque book as it has been more than a month after
applying for it:
I have made a number of complaints but no one is hearing HDFC Bank has to resolve
them as early as possible because it affects the service quality very badly.
82
Conclusions
MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY
ACCOUNT (CONCLUSION):
As a summer trainee in HDFC BANK, I would like to conclude my project work on
Marketing Strategies of HDFC Bank India Ltd. It was really very interesting interacting
with customers and have an insight into HDFC Banks brand image in their minds.
The main aim was to know the factors & attributes of brand, and services provided by
it, which companies look for in Corporate Salary Account. From the survey, overall
conclusion was that people are quite satisfied with HDFC Banks Corporate Salary
Account services.
83
LIMITATIONS
i.) AREA LIMITATION: The study was limited to Pune city only. Hence findings may
differ from other parts of India where I have not visited
ii). NON-RESPONSE ERROR: It is almost impossible to obtain data from each &
every respondent covered in sample. There are always some respondents who refuse
to give information
iii). LIMITED SOURCE OF DATA COLLECTION: Sources of data for collection of
secondary data were limited
iv.) TIME CONSTRAINT: There was time constraint to this project. The project has to
be completed within 2 months.
v.) BUSY RESPONDENT: Many times respondents were so busy that they didn’t t
give reply. There were biased replies also.
vi.) OTHER REASONS: There were heavy rains during the period of survey. So there
was many times problem in conducting survey & transportation.
84
Questionnaire
1. Company Name: ____________________________________________________
2. Industry
A) Electric and Electronics
B) Information Technology
C) Automobile
D) Pharmaceutical
E) Infrastructure
F) Telecommunication
g) Others: please specify ________________________________________
3. Contact Person: ___________________________________________________
4. Designation: ______________________________________________________
5. Contact Number: __________________________________________________
6. e- Mail id: ________________________________________________________
7. No. of Employees: _________________________________________________
8. Current Banker: ___________________________________________________
9. Total salary uploaded recently/ Avg. Salary of all employees:________________
10. Special offer provided from existing bank:
a) P.L. Rate: __________________________________________
b) H.L Rate: __________________________________________
c) Vehicle loan Rate: ___________________________________
d) Others: ____________________________________________
85
11. Are you satisfied with existing Banker?
a) Yes b) No
12. Do you expect better products and services from your banker?
a) Yes b) No
13. How is the Relationship between you & your Bank?
a) Excellent
b) Good
c) Satisfactory
d) Unsatisfactory
14. Did you change your banker recently?
A) Yes b) No
15. If yes: From - ____________________________________________________
To - ______________________________________________________
16. How is Customer Responsiveness of your Bank?
a) Good
b) Satisfactory
C) Unsatisfactory
86
17. Would you like to shift to other Bank, if provided better product &Services?
a) Yes b) No
18. Given options, which Bank, you would like to shift?
Please mention: _________________________________________________
Date -
Place –
Thank you Signature
87
Bibliography
i. The Economic Times
ii. The Times of India
iii. www.economictimes.com
iv. www.hdfc.com
v. www.hdcbank.com
vi. www.indiabulls.com
vii. www.icicibank.com
viii. http://www.citibank.com/us/d.htm
ix. HDFC Annual Report 2006
x. 10 Years Highlights – (HDFC Bank website – Acrobat File)
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