AN INTERIM REPORT ON

HNW Initiatives and Customer Feedback

Survey for HNW Clients

Submitted By

Tanu Chadha

13BSPHH010705

AN INTERIM REPORT ON

HNW Initiatives and Customer Feedback

Survey for HNW Clients

SUBMITTED BY

Tanu Chadha

13BSPHH010705

HDFC BANK, SECTOR 8

CHANDIGARH

A report submitted in partial fulfillment of the requirement of MBA Program of IBS Hyderabad.

Distribution List:

Anita Rana

(Company guide)

Ajay Choudhary

(Head Relationship Manger -Retail Banking at sector 8 branch)

Dr D S Prasad

(Faculty guide, IBS Hyderabad)

Date of Submission- 17/04/2014

ABSTRACT OF THE WORK DONE

I have joined the organization on 24th February,2014

My project title is ' HNW Initiatives and Customer Feedback Survey for HNW Clients'. It is

all about the initiatives taken by HDFC for increasing customer satisfaction and customer delight

so that customers can enjoy the world class banking experience. The objective of the project is

analyzing customer satisfaction and gathering feedback of HDFC customers. I am also working

and understanding different aspects of retail banking and working on different programs of

HDFC for its HNW clients. During the internship I am learning different aspects of net banking

and different banking channels which includes net banking itself. I have also met few customers

of HDFC bank and discussed about different products and value added services of the bank .

Meeting with the customers has made me modify the questionnaire so that it can provide a better

insight of what customers actually feel about the bank and how satisfied they are with their

services. I am still working on phone banking and mobile banking aspect.

During the training period I also met Sadar Iqbal Singh (circle head of HDFC bank). It was

personal informal brief meeting with him where he advised me to study the organization in depth

as it is known as one of the most ethical company plus. He also talked about how HDFC bank is

the biggest Indian bank by its market value. He also explained me that why girls should join

banking sector as the working environment is really safe and ethical and how the work culture is

relaxed for women.

On Sir's suggestion I am also studying the organizational structure and their hr values. Though it

is not a part of my project work but he made me understand and believe that success of any

organization depends on its core values and the way it treats its employee, the whole

sustainability of the organization depends on it and its values, professional excellence, and

people as a package whole helps in attaining customer satisfaction. Therefore I am also working

on HR philosophy of HDFC bank. The bank believes that the ultimate identity and success of our

Bank will reside in the exceptional quality of our people and their extraordinary efforts.

INTRODUCTION

Banking is one the main drivers of the service industry. As the service industry has boomed, the

competition faced by the banks essentially private banks, has increased. So, in order to maintain

an edge above the others, the key elements that a bank needs to focus upon is to increase

customer satisfaction and customer delight by providing different value added services and

improving quality of services it offers. These enable a bank to get a competitive advantage over

the others.

ABOUT THE COMPANY

HDFC Bank was incorporated in August 1994 and currently has an nationwide network of 3,336

Branches and 11,473 ATM's in 2,104 Indian towns and cities. 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 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.

Vision

To build a World-Class Indian Bank

Mission

Use Enabling Technology to provide valued added products and services to customers. 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.

Core ValuesThe Bank’s five core values are:

o Customer Focus

To achieve sustainable competitive advantage, HDFC Bank relies not only on strong customer

service, but also on measuring customer experience. The Bank has invested in CRM Technology

which provides triggers for selling various products depending on the customer profile. The

Relationship Manager is a trusted advisor to the customer – he / she has the best interest of the

customer and can advise competitor products, if the Bank’s product does not fit the customer

needs.

o Operational Excellence

With a dedicated team to monitor quality and service standards, many of HDFC Bank’s process

segments, including HR Operations are ISO certified. Over 2200 quality improvement projects,

aimed at improving operational excellence have been successfully implemented. Over 550

employees have qualified for Six Sigma Certification and over 80 have earned the yellow belt.

o Product Leadership

HDFC Bank has consistently developed innovative products and services that attract its targeted

customers. Focusing on high earnings growth and low volatility, HDFC Bank continues to

develop and distribute products / services that reduce cost of funds, by leveraging its extensive

branch network. The Bank actively tracks the performance of various products and depending on

the feedback received, tweaks product features, to better address customer needs.

o Sustainability

HDFC recognizes Social and Environmental aspects as essential elements of a Sustainable

business philosophy and are committed to enhance our performance on these fronts. It is our

endeavor to drive a paradigm shift of viewing ESG (Environmental, Social and Governance)

parameters from risks to opportunities and to incorporate social and environmental aspects into

our business by embedding sustainability in our Stakeholders, Products and Services.

o People

People are the Bank’s greatest strength. HDFC Bank believes that the ultimate identity and

success of our Bank will reside in the exceptional quality of our people and their extraordinary

efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best

people in the industry.

What is Retail Banking-

Retail banking is also known as Personal Banking. The term is generally used to distinguish

these banking services from investment banking, commercial banking or wholesale banking. 

Retail Banking is when bank executes transaction directly with consumers and providing full

range financial products and financial services. The products are backed by world-class service

and delivered to customers through the growing branch network, as well as through alternative

delivery channels like ATMs, Phone Banking, Net-Banking and Mobile Banking. 

The objective of HDFC Retail Banking 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.

What is HNW Clients?

A classification used by the financial services industry to denote an individual or a family with

high net worth. Although there is no precise definition of how rich somebody must be to fit into

this category, high net worth is generally quoted in terms of liquid assets over a certain figure.

The exact amount differs by financial institution and region. The categorization is relevant

because high net worth individuals generally qualify for separately managed accounts.

DETAILED PROGRESS

Work done from 24th February to 24nd of March.

Given below are the synopsis of different products at HDFC bank which I have been

studying and working on.

SAVING REGULAR ACCOUNT

Interest Rate 4% based on daily balance credited to customers account on 31st March

and September.

Statements are sent to added mail, Monthly statement can be collected from branch free

of cost. Duplicate statement and certificate is available at a fee.

Direct access to the account

Safe Deposit Lockers.

Free email statements

5 free transactions on any other bank

Free alerts ,Mobile banking, Net Banking ,Phone Banking.

Pricing- Annual quarterly balance (AQB) of Rs 10000/

below Rs 10000/ urban ------Rs 750 per quarter

below Rs 5000/ semi urban -Rs 750 per quarter

*Account can be opened by-

Indian residents (sole, joint)

Minors, HUF, Trust, Associations

Cannot be opened by a firm or a company.

SAVING ACCOUNT PENSION

Disburses three kinds of accounts

-Central Civil Pensions CPAO

-Defense Pensions

-EPFO call pensioners covered under EPS 1995 scheme.

AQB 0 balance

Non maintenance of AQB and no charge on it

Funds transfer through teller counter.

Non cash transactions free

Undertaking given by pension authority is mandatory

Cash transaction up to Rs 50000/ free above Rs 50000 Rs 2.90 per Rs 1000/ .

SAVING MAX ACCOUNT

Marketing tool developed. Saving up to 4270. A video also to be shown to customers so that

they are encouraged to open saving max account

Saving balance from the account is transferred into a fixed deposits at a specific threshold

limit

Accounts that cannot be converted into saving max account are

-Saving account FCRA

-Saving Depository Residents

-Saving Account settler Services

-Saving Account E-Broking services HDFC securities

-Saving Account Trust

-Kids Saving Account

-Kisaan Club Saving Account

-No Frills Saving Account

-Kisaan No Frills Saving Account

Minimum Amount Rs100000/

SENIOR CITIZEN SAVING ACCOUNT

Accidental Hospital coverage up to Rs50000/

Hospital Cash Allowance of Rs 500/up to 15 days per year

Account statement free of cost both quarterly and monthly

Easy shop international debit card free for life

Women advantage debit card free

DD/MC special charge slabs for senior citizen

(age group above 60years)

Pricing- Annual quarterly balance (AQB) of Rs 5000/

below Rs 5000/ urban ------Rs 750 per quarter

below Rs 2500/ semi urban -Rs 750 per quarter

KIDS ADVANTAGE ACCOUNT

Targeted through investments ,Investing for children future. Making kids potential customers

and tapping huge middle and upper class.

Free educational insurance cover up to Rs100000/

ATM issued to only kids with 7 to 8 transactions limit up to Rs 2500/

Free cash withdrawal from any bank ATM

Free personal cheque book

Fixed deposit is created for Rs 10000/ after Rs 25000/ through sweep out facility.

Pricing- Annual quarterly balance (AQB) of Rs 5000/

charges Rs 300 per quarter below AQB.

FAMILY SAVING GROUP

Free cash withdrawal, transaction on other bank ATMs

Free monthly account statements

25% off on lockers

Minimum 2 and Maximum 4 accounts to be opened

Pricing- Combined Annual quarterly balance (AQB) Rs 40000/

chargers Rs1000/ if AQB> Rs 20000/ <= Rs 40000/

and Rs 1500/if AQB <= Rs 20000/

NO FRILLS ACCOUNT

AQB not required

Should not have saving account with any other bank

Individual income equals or less than Rs 50000/

WOMEN SAVING ACCOUNT

Money maximizer facility

Unlimited free money transaction across all HDFC and non HDFC bank ATMs

50% discount on lockers for first year

CROSS SELLING PRODUCTS LIST

Credit Cards

Group Insurance Plan

Smart Women Plan

Group personal accidental insurance plan

Critical illness cover

Home Insurance

(just noted them for my knowledge)

Submitted Initial Information Report on 28th February,2014 Submitted Internship Proposal Report on 12th March 2012

Work done in last week of March.

HNW Clients of HDFC bank

The HNW clients (premium banking) are primarily divided into different programs as follows

Imperia

Preferred

Classic

Eligibility Criteria's for different program at HDFC Bank

IMPERIA

Membership to the HDFC Bank Imperia Program is by invitation only. To be eligible for the exclusive

benefits you need to:

Maintain a minimum Average Monthly Balance of Rs.30 lakhs across all your Saving

and fixed deposits accounts

OR

Maintain an Average Quarterly Balance of Rs.10 Lakhs in your Savings account.

OR

Maintain an Average Quarterly Balance of Rs.15 Lakhs in your Current account.

The requisite balance can be maintained over your accounts and over those of your

immediate family members.

*The tenure of the Fixed Deposits should be at least six months.

**Entry into the Imperia Program is at the sole discretion of the Bank. HDFC Bank reserves the

right to change the benefits / services offered as part of the program

PREFERRED

You are eligible for the HDFC Bank Preferred Program ** if you:

Hold at least one Savings or Current account, sole or joint, with HDFC Bank.

Maintain a minimum Average Monthly balance of Rs. 15 Lakhs across all your accounts

(Savings, Current and Fixed Deposits*)

OR

Maintain an Average Quarterly Balance of Rs. 2 Lakhs in your Savings account.

OR

Maintain an Average Quarterly Balance of Rs. 5 Lakhs in your Current account.

The requisite balance can be maintained over your accounts and over those of your

immediate family members.

* The tenor of the Fixed Deposits should be at least six months.

**Entry into the Preferred Program is at the sole discretion of the Bank.

# HDFC Bank can at its sole discretion, amend any of the services/facilities given in the account

either wholly or partially at any time by giving at least 30 days of notice and/or provide an option

to switch to other services/facilities.

CLASSIC

You can avail of these privileges as an HDFC Bank Classic customer if you maintain an account

with us in your individual capacity and meet the following criteria:

A minimum Average Quarterly Balance of Rs.1 Lakh in a Savings Bank account (this

can be maintained across Savings Bank accounts held by you and your immediate family (i.e.

spouse/ parents/ children)

OR

A minimum Average Monthly Balance of Rs. 5 Lakhs in a combination of Savings Bank

accounts and Term Deposits (this can be maintained across accounts held by you and your

immediate family (i.e. spouse/ parents/ children).

* The tenure of the Fixed Deposits should be at least six months.

** HDFC Bank can at its sole discretion, amend any of the services/ facilities given in the

account either wholly or partially at any time by giving at least 30 days of notice and/or provide

an option to switch to other services/ facilities. Entry into the program is at the sole discretion of

the bank.

Work done in 1st week of April

The HR policies which I have studied.

Professional: Transparency, fairness, absolute integrity and unbiased dealings with all

stakeholders - customers, colleagues and vendors. People are not afraid to experiment /

fail as long as there is a convincing business logic and an honest attempt.

Respect for the Individual: Absolute meritocracy at the time of hiring or promoting

individuals or assigning tasks and positions. There is a formal sexual harassment policy

in place to ensure dignity of individuals in the workplace.

“Can Do” Attitude: The attitude to take oneself beyond one’s perceived limitations. It

emphasizes on persistence and perseverance in reaching one’s goals.

Employee Care: HDFC Bank cares for its employees. This is manifested in the fact that

the Bank has instituted a Reward and Recognition Policy to acknowledge and honor

employee contribution, be it in business, cost saving initiatives or process improvements.

The Employee Wellness Program provides employees the facility of trained counselors

for advice on work-life balance, stress management, etc. The Bank has an award winning

Diversity Program with a dedicated Woman's Portal. There are also various benefits

provided to employees, viz. Holiday homes, Food Plus Card, etc.

The PEOPLE value at HDFC Bank is based on the following HR Philosophy:

Belief

We believe that the ultimate identity and success of our Bank will reside as it always has,

in the exceptional quality of our people and their extra-ordinary efforts. In order to do

that we need to create an environment that recognizes and values our people and the work

they do.

Values

The Bank’s strategic framework provided us with five core values – customer focus,

operational efficiency, product leadership, sustainability and people. The people value

signifies that we are committed to hiring, developing, motivating and retaining the best

people in our Bank.

Guiding Philosophy

They believe that human resource management in HDFC Bank is fundamentally line

management accountability. The role of HR is therefore to help develop line management

capability to effectively manage and develop their people (by providing appropriate tools,

policies and processes).

Ethical Organization

It is their endeavor to promote a culture of high personal integrity and professional ethics

in all employees to provide an environment that inspires excellence to accomplish

organizational objectives besides a sense of personal achievement and contentment.

Every employee is governed by the Ethical Standards and Compliance Manual. This is

available online to all employees across the Bank. Twice a year, this is circulated by mail

exchange system and confirmation taken from all employees on its understanding.

The Employee Relations Department of the Bank investigates into employee disciplinary

issues, misconduct, fraud etc and ensures appropriate management action is taken so that

the Bank and customer’s interests are upheld.

The Bank has an Internal Audit department comprising over 160 qualified auditors who

conducts periodic and concurrent audits of various operational processes. The

benchmarks are stringent and based on standard regulatory norms. The Audit department

reports directly to the Board of Directors of HDFC Bank, thereby ensuring independence.

Young and Dynamic

Having completed fifteen years since inception, HDFC Bank has a young and vibrant

employee base with average age ranging between 30 – 35 years.

Meritocracy

All business and human resource decisions are based on merit. Employees qualify for

promotions through a stringent process, which involves methodical study of the

employee’s job size, last two performance ratings and panel interviews. The Bank

promotes meritocracy through differential bonuses, stock ownership plans and special

increases.

HDFC Bank believes in transparency and accountability and is committed to strict

adherence of the same. Hence, the Whistle Blower Policy was created so that the internal

regulators could have the information about any activity involving impropriety, abuse of

power, malpractice, frauds, harassment or any untoward events. The Whistle Blower

Policy empowers employees to address their concerns in respect of untoward events as

listed above without any fear.

Diverse

The Bank has branches in over five hundred cities covering a wide geographical area of

the country. Employees come from varied cultural, social and ethnic backgrounds. Out of

the total headcount, over twenty percent are women.

Given the constant change in the environment and increasing demands at work,

maintaining a work-life balance has become even more of a challenge. As an

organization we have always strived to build a culture which values and recognizes an

individual’s contribution and at the same time promotes teamwork effectively.

Over the years we have seen various initiatives that have been initiated to manage the

gender diversity of a growing workforce, some of which are listed below:

o Women’s day celebrations to recognize the talent within the organization

o Felicitation of Women achievers through special awards for women

o Formal Sexual Harassment Policy and Committee

o Leadership Sensitivity towards Women Issues

o Extension of Maternity Leave to aid Adoption

o Awareness of Women’s Medical Issues highlighted through Camps

o Sabbaticals for deserving women

o Formation of Sisterhood of Strength – a women’s forum which is specially meant to

identify, handhold and resolve challenges which women face at the workplace.

Technology enabled

HDFC Bank operates in a highly automated environment in terms of Information

Technology and communication systems. All the bank's branches have on-line

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). We were the first Bank in India to

implement Real Time Gross Settlement, which enables transfer of money in bulk across

Banks electronically within a few hours.

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.

Cost Conscious

On account of its unique cost management practices, pioneered through a reverse auction

process, HDFC Bank is proud to have its operating cost within defined budgetary

parameters.

Created a rough draft of the questionnaire and working on its improvement.

Work done in 2nd week of April

Learning about direct banking channels

Net Banking

Phone Banking

Mobile Banking

NET BANKING

Four E mantras for customers

-Ease

-Efficiency

-Experience

-Economy

Company prefer its customers and promotes net banking as it provides faster services and cut

downs the cost.

I am told to suggest customers and make them understand the benefits of net banking and also I

have to give them demo on how to use it.

Benefits of net banking

-Anywhere and anytime

-Real time information

-Range of features

-Secured channel

-Less cost to the branch

I have completed the net banking aspect.

Working on telephone banking and mobile banking aspect.

Further Action Plan.

After the questionnaire is formulated and designed properly it will be mailed to

the Faculty guide after being approved by Anita Rana (Company guide) and

Ajay Choudhary (Head Relationship Manager). Once the formal approval is

done the questionnaire will be personally given to HDFC clients to get a proper

feedback. During the end phase the data so collected will be compiled and

discussed with the company guide and Ajay Choudhary Sir . This discussion

would help me in compiling appropriate suggestion and recommendation for the

bank.