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A

Project Report

On

³A Study of Market Potential of Saving Account´

IN

HDFC BANK

Submitted to:

University of Pune, Pune

In partial fulfillment of the requirement for the award of

Post Graduate Degree inMaster of Marketing Management

Submitted by:

Mamraj Jangid

Under the guidance of:

Prof. NILESH GOKHALE

Submitted Through:-

Sinhgad Technical Education Society¶s

Sinhgad Institute of Management

Vadgaon (BK), Pune

2009-2011

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DEDICATION

Dedicated to

My Beloved Family and Friends

Who has been the foundation of inspiration to me.

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DECLARATION I, the undersigned, hereby declare that the project report entitled ³A study of Market

Potential of Saving Account in HDFC BANK´ written and submitted by me to the

University of Pune, in partial fulfillment of the requirement for the award of degree of master of marketing management under the guidance of Prof. NILESH GOKHALE, is

my original work and the conclusions drawn therein are based on the material collected

by myself.

The source of material and data used in this study has been acknowledged.

I further declare that the information presented in this project is true and originalto the best of my knowledge.

Place: Pune MAMRAJ JANGID

Date: Course: MMM

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S.R. NO.

TOPIC PAGE

NO.

1. Executive Summary

8

2. I ntroduction 9

3. Organization P rofile 12-29

4. Research Methodology 30-35

5. Data Analysis And I nterpretation 36-44

6. Findings 45

7. C onclusion And Suggestions 46-47

8. Annexure 48

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Sr. no. Table no. Description Page no.

1 1 Age of the respondent.

37

2 2Marital status of the respondent.

38

3 3Education qualification of the respondent.

39

4 4Number of years of respondent staying in Udaipur.

40

5 5Occupation of the respondent.

41

6 6 Annual household income of the respondent. 42

7 7 Perception of the respondent about different

products/services provided by HDFC bank.

43

8 8 Respondent opinion to open an account with HDFC bank. 44

9 9 Respondent have all the documents which are required toopen an account.

45

10 10 Respondent awareness about different terms and

conditions which are very much essential to maintain anaccount at HDFC Bank.

46

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ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to Prof. M.N.Navale

founder president, Dr. (Mrs.) S.M.Navale, secretary, the Sinhgad TechnicalEducation Society, Pune, Dr. Daniel Panker, Director and Dr. Shivaji V. Gawade,

Head Research, The Sinhgad Institute of Management, Pune. For their continuous

encouragement, invaluable guidance and help for completing the present project

work. They have been a source of inspiration to me and I m indebted to them for

initiating me in the field of marketing.

I am completely indebted to Prof. NILESH GOKALE, my research guide, the

Sinhgad Institute of Management, Pune without his help completion of the project

was highly impossible.

I take this Opportunity as privilege to articulate my deep sense of gratefulness to

Mr. LALIT SHRIMALI, Manager, HDFC BANK for his help and positive

encouragement.

I wish to express a special thanks to all teaching and non-teaching staff members,

the Sinhgad Institute of Management, Pune for their forever support,

encouragement, valuable guidance are gratefully acknowledged. I would like to

acknowledge my Family members and friends for their support, love, help and

encouragement.

Place: Pune Mamraj Jangid

Date:

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Executive Summary

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's

liberalization of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

My training period was of two months which started on with my orientation and

introduction program with my mentor Mr. Lalit Shrimali, and other staff members

of the department, followed by allotment of my topic for SIP (summer InternshipProgram) project which is ³A Study of market potential of saving account in

HDFC Bank.´

As a part of my training my first task in the organization was to study about the

different products of the HDFC Bank and to prepare questionnaire. Followed by

this my next task was to visit people and collect information about their saving

account. This activity was done to identify the factors which impact on the saving

account in the bank and the action required to be taken to increase the sale.

In the following project I tried to get maximum understanding of marketing so that

it helps me in upgrading of personality.

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INTRODUCTION TO THE PROJECT

It gives me immense pleasure to present this entire project. The project emphasis on the

³A Study of Market Potential of saving account in HDFC bank.´ The study is undertakenat HDFC Bank, Udaipur [Raj.]

The project commences with the brief introduction of HDFC Bank. HDFC Bank is the

largest international banking group in India. The key business of HDFC Bank in India

include consumer banking-primarily credit cards, mortgages, personal loans and wealth

management and wholesale banking, where the bank specializes in the provision of cash

management, trade, finance, treasury and custody services. The Housing Development

Finance Corporation Limited (HDFC) was amongst the first to receive an 'in

principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalization of the Indian Banking Industry in

1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank

Limited', with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

The project further relates to the market potential of the saving account of HDFC

bank. The savings account market is marked by heavy competition, with the major

players in the market being the private and the multinational banks. These banks have off

lately stated aggressive marketing of their products and provide a variety of features to

their customer.

The project describes about the customer¶s perception about the different products of the

bank, how these products can attract them and how the company can generate maximum

profit by convincing.

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OBJECTIVE OF THE STUDY

1. To analysis the savings accounts potential in today¶s scenario in Udaipur.

2. To analysis the market potential of saving account of HDFC bank in Udaipur.

3. To compare other bank with HDFC on various banking parameters.

4. To find out the various factors of saving account on which the bank leads

5. To suggest ways to increase its market share.

6. To open new savings accounts by convincing customers and to promote the benefits of

those which are provided by the Bank.

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Scope of the Project

The scope of the study is to know the strategies adopted by HDFC Bank in the past years

and what will be their future strategies. The project will also help to find out the branding

techniques and promotional activities adopted by the Bank. It will help to find out the

potential customers for the bank. The scope is to find out how the various products are

positioned in the market. The scope is to understand why HDFC Bank is different from

other banks, what are benefits that are provided to the people. This research will also serve

as a reference material for those researchers who are going to conduct studies in the related

field.

LIMITATIONS OF THE STUDY

The scope of study is limited due to the following reasons:

1) Time constraint - since the time span for the thesis is only two months so for

depth study and analysis will become a little difficult.

2) Sample size - the sample size of the study is only 200 which would not give a

Comprehensive result. Many important samples may not be considered at all. The

Conclusion of the study may not result to an accurate outcome due to the sample size

being small.

3) The Project is done only in Udaipur city so it is valid for this region only.

4) Inadequacy of sampling frame hence 100% probability sampling could not befollowed.

5) Probes were involved in collecting data from respondents. Hence there may be some

reliability issues.

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ORGANIZATION PROFILE

FORMATION OF THE COMPANY

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank

in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in

1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited',

with its registered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

y PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track record in

India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has

developed significant expertise in retail mortgage loans to different market segments and also

has a large corporate client base for its housing related credit facilities. With its experience in the

financial markets, a strong market reputation, large shareholder base and unique consumer

franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

y BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound

customer franchises across distinct businesses so as to be the preferred provider of banking

services for target retail and wholesale customer segments, and to achieve healthy growth in

profitability, consistent with the bank's risk appetite. The bank is committed to maintain the

highest level of ethical standards, professional integrity, corporate governance and regulatory

compliance. HDFC Bank's business philosophy is based on four core values - OperationalExcellence, Customer Focus, Product Leadership and People.

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y CAPITAL STRUCTURE

The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital is

Rs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about

17.6% of the equity is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional

Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock

Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares

are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

y TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another newprivate 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, skilled manpower and the opportunity to cross-sell and leverage

alternative delivery channels.

y DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over

1229 branches spread over 444 cities across India. All branches are linked on an online real-time

basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's

expansion plans take into account the need to have a presence in all major industrial and

commercial centers where its corporate customers are located as well as the need to build a

strong retail customer base for both deposits and loan products. Being a clearing/settlement bank

to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has

a strong and active member base.

The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover,

HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,

Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

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y MANAGEMENT

Mr. Jagdish Capoor 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, 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.

y 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 availableinternationally, to build the infrastructure for a world class bank. The Bank's business is

supported by scalable and robust systems which ensure that our clients always get the finest

services we offer.

The Bank has prioritized its engagement in technology and the internet as one of its key goals

and has already made significant progress in web-enabling its core businesses. In each of its

businesses, the Bank has succeeded in leveraging its market position, expertise and technology to

create a competitive advantage and build market share.

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y BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of

banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the bank's risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank's business philosophy is

based on four core values - Operational Excellence, Customer Focus, Product Leadership

and People.

y RATING

I. Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research

Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit 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 "tAAA ( ind )" rating to the Bank's deposit programme, with the

outlook 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 and

Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds rated

by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the subordinated

Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the

outlook on the rating as "stable". CARE has also assigned "CARE AAA [Triple A]" for the

Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating "AAA /

Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the

cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.

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II. Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance

and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services

of India Limited (CRISIL). The rating provides an independent assessment of an entity's currentperformance and an expectation on its "balanced value creation and corporate governance

practices" in future. The bank has been assigned a 'CRISIL GVC Level 1' rating which indicates

that the bank's capability with respect to wealth creation for all its stakeholders while adopting

sound corporate governance practices is the highest.

PRODUCT SCOPE

HDFC Bank offers a bunch of products and services to meet the every need of the people. The

company cares for both, individuals as well as corporate and small and medium enterprises.

For individuals, the company has a range accounts, investment, and pension scheme, different

types of loans and cards that assist the customers. The customers can choose the suitable one

from a range of products which will suit their life-stage and needs.

For organizations the company has a host of customized solutions that range from Funded

services, Non-funded services, Value addition services, Mutual fund etc. These affordable plans

apart from providing long term value to the employees help in enhancing goodwill of the

company.

The products of the company are categorized into various sections which are as follows:

y Accounts and deposits.

y Loans.

y Investments and Insurance.

y Forex and payment services.

y Cards.

y Customer center.

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PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING

A. Accounts & Deposits

- Regular Savings Account

- Savings plus Account

- Savings Max 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

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- Reimbursement Current Account

- RFC - Domestic Account

- 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

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C. Investments & Insurance

- Mutual Funds

- Insurance

- Bonds

- Financial Planning

- Knowledge Centre

- Equities & Derivatives

- Mudra Gold Bar

D. Forex Services

- Trade Finance

- Travelers¶ Cheques

- Foreign Currency Cash

- Foreign Currency Drafts

- Foreign Currency Cheque Deposits

- Foreign Currency Remittances

- Cash To Master

- ForexPlus Card

E. Payment Services

- Net Safe

- Prepaid Refill

- Bill Pay

- Direct Pay

- Visa Money Transfer

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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 Cards

- Transfer & Safe

- Track your Credit Card

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H. Get More from Your Card

- Offers & Savings

- My Rewards

- Insta Wonders

- 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

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2.Wholesale Banking

A. Corporate

Funded Services

Non Funded Services

Value Added Services

Internet Banking

B. Small & Medium Enterprises

Funded Services

Non-Funded Services

Specialized Services

Internet Banking

C. Financial Institutions & Trusts

Banks

Financial Institutions

Mutual Funds

Stock Brokers

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MILESTONES IN THE HISTORY

HDFC Bank began its operations in 1995 with a simple mission: to be a "World-class Indian

Bank". 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 that

goal.

It is extremely gratifying that their efforts towards providing customer convenience have been

appreciated both nationally and internationally.

y 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:µEmployer Brand of the Year 2007-

2008¶-Award- First Runner-up.

Business Today µBest Bank Award¶.

Dun & Bradstreet ± American ExpressCorporate Best Bank Award 2007

µCorporate Best Bank¶-Award.

The Bombay Stock Exchange and NasscomFoundation's Business for Social

Responsibility Awards 2007

µBest Corporate Social Responsibility

Practice¶ Award.

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

category.

The Asian Banker Excellence in RetailFinancial Services Awards

Best Retail Bank in India.

Asian Banker Managing Director Aditya Puri won the

Leadership achievement Award for

India.

y 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 CountryAwards

Best Domestic Bank.

Asiamoney Awards Best Local Cash Management Bank in

Large and Medium segments.

Euromoney Awards "Best Bank" in India.

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y 2005

Asiamoney Awards Best Domestic Commercial Bank

Asiamoney Awards Best 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.

The Asset Triple A Country Awards Best Domestic Bank in India Region ±

2005

The Business Today-KPMG Survey Best Local Cash Management Bank in

India US$11-100m ± 2005

The Business Today-KPMG Survey "Best Bank in India" for the third

consecutive year in 2005.

Economic Times - Avaya Global Connect

Customer Responsiveness Awards"Most Customer Responsive Company -

Banking and Financial Services ± 2005

y 2004


India US$11-100m


India >US$501m


India 1989-2004 (poll of polls)

Asiamoney Awards Best Overall Domestic Trade Finance

Services in India ± 2004

Asiamoney Awards Most Improved company for Best

Management Practices in India ± 2004Business World One of India's Most Respected

Companies ± 2004

Forbes Global Best Under a Billion, 100 Best Smaller

Size Enterprises in Asia/Pacific and

Europe ± 2004

Asian Banker Awards Operational Excellence in Retail

Financial Services ± 2004

The Asset Triple A Country Awards Best Domestic Bank in India ± 2004

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y 2003

Forbes Global Best Under a Billion, 200 Best Small

Companies ± 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 Respected

Companies

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

Business Today Best Bank in India -2003

NASSCOM & economictimes.com - ITUsers Awards

Best IT User in Banking -2003

y 2002

Hong Kong-based Finance Asia magazine Best Local Bank ± India

Hong Kong-based Finance Asia magazine "Best Local Bank - India"

Euromoney magazine "Best Bank in IndiaAsiamoney magazine Commercial Bank in India 2002

y 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 Small

Companies one of the "20 for 2001" best

FE-E&Y Best Banks small companies

The Economic Times Awards for Corporate Excellence as the

Emerging Company of the Year

y 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" best

FE-E&Y Best Banks small companies

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MERGER

HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29

The Boards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008 andapproved, 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 exchangeratio 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 wereamongst 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 wethought it is an attractive route to supplement HDFC Bank¶s organic growth. We believe that

Centurion Bank of Punjab would be the right fit in terms of culture, strategic intent and approachto 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 significantlyexploit 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 twoorganizations. The combined entity will be an even greater force in the market.´

Mr. Rana Talwar, Chairman, Centurion Bank of Punjab stated, ³Over the last few years,Centurion Bank of Punjab has set benchmarks for growth. The bank today has a large nationwide

network, an extremely valuable franchise, 7,500 talented employees, and strong leadershippositions 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 aglobal level.´

Mr. Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said,

³We are extremely pleased to receive the go ahead from our board to pursue this opportunity. Amerger 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.´

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FINANCIAL FIGURE

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008

Particulars Quarter

ended

30.06.08

Quarter

ended

30.06.07

Year

ended

31.03.08

Unaudited Unaudited Audited

1

2

3

45

6

7

8

9

10

11

12

13

14

Interest Earned (a)+(b)+(c)+(d)a) Interest/discount on advances/bills

b) Income on Investmentsc) Interest on balances with Reserve

Bank of India and other interbank fundsd) Others

Other Income

A) TOTAL INCOME (1) + (2)

Interest ExpendedOperating Expenses (i) + (ii)

i) Employees costii) Other operating expenses

B) TOTAL EXPENDITURE (4)+(5)

(excluding Provisions & Contingencies)

Operating Profit before Provisions and

Contingencies (3) -(6)

Provisions (Other than tax) and

Contingencies

Exceptional Items

Profit / (Loss) from ordinary activitiesbefore tax (7-8-9)

Tax Expense

Net Profit / (Loss) from Ordinary

Activities after tax (10-11)

Extraordinary items (net of tax expense)

362173263638

95121

2426988

59342

421515

189826128938

5405874880

318764

102751

34447

-

68304

21869

46435

-

46435

206916145362

56047

5337170

57254

264170

10836477438

2838849050

185802

78368

30712

-

47656

15533

32123

-

32123

1011500696673

287204

27239384

228315

1239815

488712374562

130135244427

863274

376541

148478

-

228063

69045

159018

-

159018

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15

16

17

18

Net Profit / (Loss) (12-13)

Paid up equity share capital (Face Value of

Rs.10/- each)

Reserves excluding revaluation reserves(as per balance sheet of previous

accounting year)

Analytical Ratios(i) Percentage of shares held byGovernment of India

(ii) Capital Adequacy Ratio(iii) Earnings per share (Rs.)

(a) Basic EPS before & after extraordinaryitems (net of tax expense) ±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 (average) - notannualized

Public Shareholding- No. of shares

- Percentage of Shareholding

42462

-

NIL

12.2%

11.0

10.8

150274

49607

1.5%

0.5%0.3%

342173776

80.6%

33319

-

NIL

13.1%

1 0.0

1 0.0

71016

21424

1.3%

0.4% 0.3%

250744008

75.3%

35443

1114280

NIL

13.6%

4 6.2

4 5.6

90697

29852

1.3%

0.5% 1.3%

27198992

0

76.7%

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QUALITY POLICY

y

SECURITY: The bank provides long term financial security to their policy. The bank does this by offering life insurance and pension products.

y 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.

y INNOVATION: Recognizing the different needs of our customers, the bank offers a

range of innovative products to meet these needs.

y INTEGRITY

y CUSTOMER CENTRIC

y PEOPLE CARE ³ONE FOR ALL AND ALL FOR ONE´

y TEAMWORK

y JOY AND SIMPLICITY

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RESEARCH METHODOLOGY

A Research Methodology defines the purpose of the research, how it proceeds, how to

measure progress and what constitute success with respect to the objectives determined

for carrying out the research study. Research methodology is a way to systematically

solve the research problem. It may be understood as a science of studying how research is

done scientifically. In it we study the various steps that are generally adopted by a

researcher in studying his research problem along with the logic behind them. It is

necessary for the researcher to know not only the research methods/techniques but also

the methodology. Researchers not only need to know how to develop certain indices or

tests, how to calculate the mean, the mode, the median or the standard deviation or chi-

square, how to apply particular research techniques, but they also need to know which of

these methods these methods or techniques, are relevant and which are not, and what

would they mean and indicate and why.

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Sampling methods

Before an organization conducts primary research it has to be clear which respondents it wishesto interview. A company cannot possibly interview the whole population to get their opinions

and views. This simply would be to costly and unfeasible. A sample of the population is taken tohelp them conduct this research. To select this sample there are again different methods of

choosing your respondents, a mathematical approach called 'probability sampling' and a non-mathematical approach, simply called 'non-probability sampling'. Lets look at these in a little

more detail.

Probability Sampling Methods ± A mathematical chance of selecting

the respondent.

Simple Random Samples

With this method of sampling the potential people you want to interview are listed e.g. a group

of 100 are listed and a group of 20 may be selected from this list at random. The selection maybe done by computer.

Systematic samples

Out of the 100 people we talked about above, systematic sampling suggests that if we select the

5th person from the above list, then we would select every 5th, 10th, 15th, 20th etc. The patternis the every consecutive 5th. If the 6th person was selected then it would be every consecutive

6th.

Multi-Stage Samples

With this sampling process the respondents are chosen through a process of defined stages. For

example residents within Islington (London) may have been chosen for a survey through thefollowing process:

Throughout the UK the south east may have been selected at random, ( stage 1), within the UK

London is selected again at random (stage 2), Islington is selected as the borough (stage 3), thenpolling districts from Islington (stage 4) and then individuals from the electoral register (stage 5).

As demonstrated five stages were gone through before the final selection of respondents were

selected from the electoral register.

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Non Probability Samples

Convenience Sampling

Where the researcher questions anyone who is available. This method is quick and cheap.

However we do not know how representative the sample is and how reliable the result.

Quota Sampling

Using this method the sample audience is made up of potential purchasers of your product. For example if you feel that your typical customers will be male between 18-23, female between 26-

30, then some of the respondents you interview should be made up of this group, i.e. a quota isgiven.

Dimensional Sampling

An extension to quota sampling. The researcher takes into account several characteristics e.g.gender, age income, residence education and ensures there is at least one person in the study thatrepresents that population. E.g. out of 10 people you may want to make sure that 2 people are

within a certain gender, two a certain age group who have an income rate between £25000 and£30000, this will again ensure the accuracy of the sample frame again.

To summaries there are two types of sampling frames - probability and non-probability, and

within these six types of sampling methods as discussed above.

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Sampling is that part of statistical practice concerned with the selection

of an unbiased or random subset of individual observations within a

population of individuals intended to yield some knowledge about the

population of concern, especially for the purposes of making predictionsbased on statistical inference. Sampling is an important aspect of data

collection.

Researchers rarely survey the entire population for two reasons (Adèr,

Mellenbergh, & Hand, 2008): the cost is too high, and the population is

dynamic in that the individuals making up the population may change

over time. The three main advantages of sampling are that the cost islower, data collection is faster, and since the data set is smaller it is

possible to ensure homogeneity and to improve the accuracy and quality

of the data.

Each observation measures one or more properties (such as weight,

location, color) of observable bodies distinguished as independent

objects or individuals. In survey sampling, survey weights can be

applied to the data to adjust for the sample design. Results from

probability theory and statistical theory are employed to guide practice.

In business and medical research, sampling is widely used for gatheringinformation about a population.

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RESEARCH DESIGN

Formulation of objectives of the study.

Designing methods for the data collection

Select the sample size

Collecting the data

Processing and analysis of data

Reporting the finding.

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The research methodology used in this project is described below in detail:

Research Plan: The research plan used is convenience research plan.

Convenience Research is that kind of research which is carried out according to theconvenience of the researcher. The research depends on the area and the convenience of

the researcher carrying out the research.

Convenience sampling is a non probability sampling technique where subjects are

selected because of convenient accessibility and proximity to the researcher.

In convenient sampling subjects are selected because they are easiest to recruit for the

study. Subjects are representative of the entire population.

Designing a research plan calls for decisions on the following:

y Data Collection

y Research instruments

y Sampling plan

y Contact methods

Data Collection: A study is based on the information that is embedded in it. The data for

this study is obtained from both primary data and secondary data.

Primary Data: Primary data is collected for the research needs at hand and a formal and

structures questionnaire has been prepared and is presented and filled from the concerned

respondents.

Secondary Data: It has been gathered from the internet, books, company literature and

company¶s past records etc. which has been tabulated and presented in the report.

Research Instrument: The main research instrument used in collecting the primary data

is the Questionnaire, a copy of which is attached in the annexure.

Sampling Design: Convenience sampling is used as the sampling plan.

Sampling Technique: I have used both Probability and Non Probability Techniques.

Sample Size: 50 respondents.

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DATA ANALYSIS, INTERPRETATION AND

PRESENTATION

Data interpretation can be defined as applying statistical procedures

to analyze specific facts from a study or body of research. Data

interpretation questions are a part of many standardized tests. Datainterpretation is sometimes also called data analysis.

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1. Age of the respondent.

TABLE no. 1

Serial No. Age Category Number of Respondents Percentage

1. Under 25 14 28%

2. 25-50 Years 33 66%

3. 50-75 Years 3 6%

4. 75 above 0 0

Total 50 100%

Base 50 respondents

GRAPH no. 1

Interpretation

From the table and graph above it can be seen that

y 28% respondent¶s age are under 25 years.

y 66% respondent¶s age are 25 to 50 years.

y 6% respondent¶s age are 50 to 75 years.

28%

66%

6%

Number of RespondentsUnder 25 25-50 Years 50-75 Years

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2. Occupation of the Respondent.

TABLE no.2

Occupation Business Service Others

No. of respondent 18 24 8

Percentage 36 48 16

Base 50 respondents

GRAPH no.2

Interpretation

From the table and graph above it can be seen that

y 48% respondent¶s occupation is service.

y 36% respondent¶s occupation is Business.

36%

48%

16%

No. of respondent

Business Service Others

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3. Annual Income of the Respondent.

Table no. 3

Income Below-5000 5000-10000 10000-15000 15000-20000 Above 20000

No. of respondent 5 7 8 8 22

Percentage 10 14 16 16 44

Base 50 respondent

Graph no.3

Interpretation.

y The highest number of respondent that is 22(44%) is from the income group of above 20000

10%

14%

16%

16%

44%

No. of respondent

Below-5000 5000-10000 10000-15000 15000-20000 Above 20000

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4. Respondents¶ saving account in different banks.

Table no.4

Banks ICICI SC HDFC ABN AMBRO Others

NO. of respondent 15 O 8 2 25

Percentage 30 0 16 4 50

Base 50 respondent

Graph no.4

Interpretation

y 16% of the respondents have their saving account in HDFC bank.

y 30% of the respondents have their saving account in ICICI bank.

y 50% of the respondents have their saving account in other banks.

30%

0%16%

4%

50%

NO. of respondentICICI SC HDFC ABN AMBRO Others

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5. Factors for Opening a saving account in bank by the respondent.

Table no. 5

Factors Interest rate Goodwill Facilities Others

Percentage 40 20 30 10

Base 50 respondent

Graph no.5

Interpretation

y 40% of the respondent chooses Interest rate as a factor for opening saving account.

y 30% of the respondent chooses Facilities as a factor for opening saving account.

y 20% of the respondent chooses goodwill as a factor for opening saving account.

Intrest rate Goodwill Facilities Others

40

20

30

10

Percentage

Percentage

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6. Preferred method by the respondent for banking transaction.

Table no.6

Preferred method Over the counter ATM Internet Doorstep banking

No. of respondent 11 18 14 7


Base 50 respondent

Graph no.6

Interpretation

y 36% of the respondent feels ATMs are the most preferable method of banking transaction.

y 28% of the feels internet is the most preferable method of banking transaction.

22%

36%

28%

14%

No. of respondent

Over the counter ATM Internet Doorstep banking

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7. Respondents satisfaction level towards banking service.

Table no.7

Satisfied Yes No

No. of respondent 31 19

Percentage 62 38

Base 50 respondent

Graph no.7

Interpretation

y 62% of the respondent feels highly satisfied towards the services they availed.

y 38% of the respondents are not satisfied towards the services they availed.

62%

38%

No. of respondent

Yes No

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8. Changes that respondent wants towards banking service.

Table no. 8

Base 50 respondent

Graph no. 8

Interpretation

y 38% of the respondent want changes in customer relation.

y 34% of the respondent want extra facilities realted to debit and credit card.

38%

8%34%

20%

No. of respondents

Customer relation Multibranch & multicity banking

Extra futures for debit & credit cards Others

Changes Customer

relation

Multibranch &

multicity banking

Extra futures for

debit & credit cards

Others

No. of

respondents

19 4 17 10


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FINDINGS

Only 16% of the respondent contributes to the market share of HDFC Bank.

ICICI is most preferred bank among all age group and among all

occupational and income profile.

50% of the respondent finds services and facilities of the bank as the most

preferable factor for opening an account.

Majority of the respondent that is 36% feels ATM¶s are the most preferable

method of banking transaction.

38% of the respondent wants changes in customer relation.

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CONCLUSIONS AND SUGGESTIONS

CONCLUSIONS:

HDFC Bank, the banking arm of HDFC is expected to go on stream. The important facts

which we could conclude from our data regarding the buying behavior of individual are

that people give maximum importance to quality of service and convince which going in

for a saving account. The minimum balance to be maintain in the account is not of much

importance to the individuals as initially thought to be; in fact people give little

importance to this attribute while opening a saving account. Also the brand name of the

bank is of little consideration and in fact quality of service is what is considered to be the

single most important factor while opening a saving account.

Regarding the acceptance of HDFC Bank our data shows that though the Bank isconsidered to be an elite bank by the customers but the general perception among the

customer is as such as that it is an expensive and profit oriented bank and doesn¶t give

much importance to the customer benefits.

The project opportunities provided was market segmentation and identifying prospective

customers in potential geographical location and convincing them to open an account so

that new Business Opportunities of the bank can be explored. Through this project, it

could be concluded that people are not much aware about the various products of the

bank and many of them not interested to open an account at all.

Services was considered as unsought good which require hard core selling, but in

changing trend in income and people becoming financially literate, the demand for

banking sector is increasing day by day.

So, at last the conclusion is that there is tough competition ahead for the company from

its major competitors in the banking sector.

Last but not the least I would like to thank HDFC Bank for giving me an opportunity to

work in the field of Marketing. I hope the company finds my analysis relevant.

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SUGGESTIONS

Finally some recommendations for the company are as follows:-

1. Improve Print Media.

2. More Hoarding & Banners.

3. Stalls in Trade Fares

4. Distribution of leaflets containing details information.

.

y The bank should provide life time valid ATM card to all its customers.

y Minimum balance for savings account should be reduced from Rs 5000 to Rs

1000, so that people who are not financially strong enough can maintain their

account properly

y The company should provide a pass book to all its customers

y Make people understand about the various benefits of its products.

y Company should organize the program in the society, so that people will be aware

about the company and different products of the bank

y Company should open more branches in different cities.

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ANNEXURE

Dear Respondent,

I am a student of Sinhgad Institute of Management, Pune. As a part of my Summer

Internship Programme (SIP), I have framed this questionnaire with respect to market

potential of saving account in HDFC Bank. I request you to kindly fill it up and return

back to me. I assure you that the information provided by you should be kept strictly

confidential and will be used for only my academic purpose.

PRELIMINARY INFORMATION

Firm Name: _______________________________________________________

Person Name: _________________________________________________________

Address: __________________________________________________

Contact no.: __________________________________________________

Email id.(if any):

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QUESTIONNAIRE

1. Respondent¶s name:-

2. Telephone no:-

3. Age in years:-

(a) Under 25 [ ] (b) 25 to 50 [ ]

(c) 50 to 75 [ ] (d) Above 75 [ ]

4. Occupation.

y Business

y Service

y Others

(Please mention below the type of business/profession you are in incase of service please

mention your organization name and designation)

5. Your annual household income.

(a) Below 5000 [ ] (b) 5000-10000 [ ]

(c) 10000-15000 [ ] (d) 15000-20000 [ ]

(e) more than 20000 [ ]

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6. In which bank you have a saving account?

(a) ICICI

(b) ABN AMRO

(c) HDFC Bank

(d) STANDARD CHARTERED

(e) Others

7.What factors you prefer in opening saving account ?

(a) Interest rate [ ] (b) Good will [ ]

(c) Facilities [ ] (d) Others [ ]

8.Which is the most preferred method of banking transaction?

(a) Over the counter [ ] (b) Goodwill [ ]

(c) Facilities [ ] (d) Others [ ]

9. Are you satisfied with your bank service?

y Yes

y No

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10.What changes would you like to have in your existing bank?

(a) Good customer relation [ ]

(b) Multi branch and multicity banking [ ]

(c) Extra features for debit and credit cards [ ]

(d) Others [ ]

11. Comments (if any):-

Date:

Place: Signature

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BIBLIOGRAPHY

1.BOOKS AUTHORS

y Marketing Management (10th

Edition) Philip Kotler

y Marketing Management (3rd Edition) V.S. Ramaswamy

y Research Methodology (2nd

Edition)

y Research Methodology

C.R.Kothary

S.P. Kasande

2. NEWS PAPERS

y Times of India

y Financial Express

3.WEBSITES

y

www.hdfcbank.com y www.google.com

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