yogesh hdfc report1

8/3/2019 yogesh hdfc report1

1/63

- 1 -

A

PROJECT REPORT

ON

ANALYSING MARKET COMPETITION AND SATISFACTION AMONG CUSTOMERS

OF HDFC BANK IN PASAN AREA

AT

HDFC BANK(IN PASAN BANER, PUNE)

By

YOGESH SAHU

UNDER THE GUIDENCE OF

MR. SANTOSH PALLEWAR

SUBMITTED TO

INDIRA INSTITUTE OF MANAGEMENT,PUNE

IN PARTIAL FUFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

POST GRADUATE DEPLOMA IN MANAGEMENT

2010-12

FOR INDIRA INSTITUTE IN MANAGEMENT, PUNE


2/63

- 2 -

Acknowledgement

The summer training in HDFC Bank has been a truly remarkable experience. The experience

gained during 8 weeks of training period have been quite enriching and the intensive exposure

to market environment would prove beneficial in the long run as well as in the outlet of

planning, building and shaping my career in future.

It gives me immense pleasure in acknowledging the valuable guidance extended to me by

various person of HDFC in successful completion of this project

I am very thankful to Professor Santosh Pallewar, my internal project guide for having

equipped me with the skills which contributed a great deal in the successful completion of the

project. At last, but not the least, I would like to thank the customers to cooperate with me in

giving me through and valuable information for the project.

YOGESH SAHU

IIMP, PUNE

(2010-2012)


3/63

- 3 -

Executive Summary

Project Title:ANALYSING MARKET COMPETITION AND SATISFACTION AMONG

CUSTOMERS OF HDFC BANK IN PASAN AREA

INDUSTRY OVERVIEW

The project was carried out for segmenting the market for saving Account of HDFC

Bank. HDFC Bank was established in the year 1994, they are old player in

banking sector.

The bank has two principle client segments customer and asset management. The

bank follows values such asIntegrity, teamwork, respect, professionalism, & Mission.

The segment of bank we are considering here is- Retail banking. The product which I

have chosen for research is Saving Accounts.

This research helps us in finding out type of customer who is using HDFC saving

account. This also helps us in finding out customers view regarding the product and

Services offered by the HDFC bank and also identifying the market potential of the

product offered by the HDFC bank.

SIP DETAILS

I completed my summer internship from HDFC (pasan-baner link road). Marketing manager of

HDFC assigned me to sale saving account in pasan-baner link road and my objective are

Finding the market for saving account of HDFC Bank. To complete my SIP , I selected the title

Analyzing market competition and satisfaction of among customers of HDFC Bank in pasan

area and surveyed 450 persons.


4/63

- 4 -

The topic plays an information role in providing knowledge about different people, their needs

and their status .It also gives a brief knowledge how a bank works is there to establish a relation

with the individual.

SIP OBJECTIVES:

To find out the level of satisfaction among saving account holders of HDFC Bank.

To understand perception about HDFC products and services among customers in pasan.

RESEARCH METHODOLOGY

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the problem.

By analyzing the secondary data, the study aim is to explore the short comings of the

present system and primary data will help to validate the analysis of secondary data

besides on unrevealing the areas which calls for improvement.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample

from the universe to know about its characteristics.

SAMPLING UNIT:

Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man,

Professionals and House Wives of Pune.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.


5/63

- 5 -

SAMPLE SIZE:

My sample size for this project was 450 respondents. Since it was not possible to cover the

whole universe in the available time period, it was necessary for me to take a sample size of 450

respondents.

FINDINGS

The maximum no. of customer of HDFC Bank is of age group of 30 to 35 years and above.

There is a market of age group of 18 to 23 year which is not targeted by the bank.

The maximum no. of customer of HDFC Bank is businessman. People who are working

with public sector is in negligible number as a customer of the HDFC Bank.

The people who are having a/c in HDFC bank are satisfied with the product and services of

the bank , and they believe that the same are lucrative . here out of 150 customer, 104

customer believe that the product is lucrative .

The people who dont have a/c in HDFC bank even dont know about the product and

services of the bank. Here in this survey 179 out of 300 customers dont have any idea

about the banks product, while 82 people dont have proper knowledge about it.

RECOMMENDATION

The bank should also target the people of age group of 18 to 23 (teenager youths) because a

large no. of population is there in that age group which are untargeted. Bank should have

different product and services for them as their income level is not very high.

With different products and services bank should also target the people who are working

with public sector.


6/63

- 6 -

Table Of Contents

S.N. CONTENTS PAGE NO.

1. INTRODUCTION 7-8

2. INDUSTRY OVERVIEW 9-13

3. COMPANY OVERVIEW 14-24

4. PRODUCT AND SERVICES 25-30

5. OBJECTIVES 31-32

6. RESEARCH METHODOLOGY 33-36

7. DATA ANALYSIS 37-50

8. CONCLUSION AND FINDING 51-53

9. RECOMMENDATION 54

10. LIMITATION 55

11. ANEXURE 56-58

12. BIBLIOGRAPHY 60


7/63

- 7 -

CHAPTER 1

INTRODUCTION


8/63

- 8 -

INTRODUCTION

ANALYSING MARKET COMPETITION AND SATISFACTION AMONG

CUSTOMERS OF HDFC BANK IN PASAN AREAAt HDFC Bank, I was assigned with the topic as Market segmentation and selling of

Savings Accounts of HDFC Bank for my project work. I joined the company as a management

trainee. The selection of the topic was to know whichever segment is still not targeted by the

HDFC Bank and, the customer perception towards HDFC Bank and about its product and

services.

REASON FOR SELECTION OF THIS TOPIC:

The financial sector is one of the booming and increasing sectors in India. To know the

preferences of the todays customers is very important, because as they are getting literate and

start earning money, their need changes very rapidly. Many customers segments are even not

aware of the products and services of the bank, so it is important to make them aware about it.

IMPORTANCE TO THE COMPANY:

The ultimate purpose of giving me this topic was to know about the customers perceptions

about the different products of the bank, how these products can attract them and how the

company can generate maximum profit.

Company wants to know the segments where the product of HDFC bank is not being effective.

They also want to know about the different behavior of the customer.


9/63

- 9 -

LEARNING FROM THE STUDY:

Different products and services provided by the bank.

Different segment of HDFC Bank

Customers perception about the different products.

The brand image of the bank.

How to communicate with the customers.

Different techniques of dealing with the customers.

How to convince and convert a customer into a real customer.


10/63

- 10 -

CHAPTER-2

INDUSTRY OVERVIEW


11/63

- 11 -

HISTORY OF BANKING IN INDIA

The first bank in India, though conservative, was established in 1786. From 1786 till today, for

centuries, bank has played an important role in the financial system of any economy. That vital

role continues even today although the forms of banking have changed with the changing

needs of the economies. Banking in its crude form is an age-old phenomenon and its invention

preceded that of coinage. As new and more sophisticated instruments of currency evolved, so

did banking. It evolved as business expanded and barter system gave way to money, which

needed safe deposited. In its simple from, it originated from temple and royal palaces around

1000 B.C in Babylon, as the strongest faith of people was in the places of worship and royal

houses as safe places for keeping money and valuables. The practice of depositing personal

valuables at these places, which were also functioning as treasuries against a receipt, was

perhaps the earliest form of banking. When coins made of precious metal like gold and silver

emerged as commonly accepted form of wealth. Lending activity at an interest began.

Goldsmiths were the initial banker and their receipts for money received-grunted payments

or goldsmith receipts were the earliest fans of bank instruments. Revilpout, a French

writer mentions about banks and bank notes in Babylon in 600. The journey of Indian Banking

System can be segregated into three distinct phases. They are as mention below: Early phase

from 1786 to 1969 of Indian Banks Nationalization of Indian banks and up to 1991 prior to

Indian Financial & Banking sector Reforms after 1991.


12/63

- 12 -

PHASE I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) As independent units and called it presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which

started as private shareholders banks, mostly Europeans shareholders. Reserve Bank of India

came in 1935. Reserve Bank of India was vested with Extensive powers for the supervision in

India as the central banking.

PHASE II

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalizes Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi- urban area. It formed State Bank of act as the principal agent of

RBI and handle banking transactions Of the Union and State governments all over the country.

The following are steps taken by Government of the India to regulate Banking institutions in the

country:

1949: Enactment of banking regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 Crore.


13/63

- 13 -

PHASE III

This phase has introduced many more products and facilities in the banking sector in its

Reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up

by his name which worked for the liberalizations of banking practices. The country is flooded

with foreign banks and their ATM stations Efforts are being put to give a satisfactory service to

customers. Phone banking and net banking is introduced. The entire system became more

convenient and swift. Time is given more importance than money.

INDUSTRY BACKGROUND:

THE Indian Banking sector consists of public sectors, private sectors and foreign banks apart

from smaller regional cooperative banks .public sectors banks dominate the banking sector in

terms of market share but are hindered by legacy factors as well as services and quality issues

private banks is constrained by the size factors as they are basically NICHE players .foreign

banks have limited branch networks and capital commitment.

HDFC bank is a part of HDFC group limited HDFC registered office is located at senpati

BapatMarg ,lower parel ,Mumbai .HDFC bank started its operation in the year 1994,there is a

saying opportunity knocks the door only once .to work with MNC is anybody s dreams

come true.

HDFC bank today is one of the leading banks in the private sectors .the branch offers services

such as 24 hours banking through ATMs ,internet banking ,phone banking ,mobile banking ,etc

it uses technology as a vehicle to open up new frontiers of internet banking , thus making its

Operation location independent ,it uses all the modernized computerized system and equipment

and thus cater to most part of the country.


14/63

- 14 -

The bank is one of them ,which had grown at rapid pace and had scales new height and

leadership position in terms of clients ,products, talents reach and capital all vital ingredients for

continuous growth and profitability.

The bank was selected as the best bank in India by the business world magazines for 4th

consecutive year ,Forbes magazines named the bank :best listed bank in India at the assets

magazines AAA country awards .today the bank starts at fare front of the Indian financial sector

by compilersthe best retail , corporate and treasury product with sound risk, human resource

and state of the art technology support HDFC bank has more than 1725 branches in more than

780 cities and over more than 50 ATMs across the country. And so thus it caters to most of the

parts of the country .the bank uses advance software and system to provide services like any

where banking and ATM connectivity .it also offers international banking services of which

some of them are connected to swift network.


15/63

- 15 -

CHAPTER-3

COMPANY OVERVIEW


16/63

- 16 -

ORIGIN OF THE ORGANIZATION:-

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, As a part of the liberalization of the Indian Banking

Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in

principle' approval from RBI, for setting up a bank in the private sector. The bank was

incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The

following year, it started its operations as a Scheduled Commercial Bank.

HDFC Bank Limited. The Group's principal activities are to provide banking and other

financial BANK. The Group operates through four segments: Treasury, Retail Banking,

Wholesale Banking and Other Banking Business. The Treasury BANK segment consists of net

interest earnings on investments portfolio of the bank and gains or losses on investment

operations. The Retail Banking segment serves retail customers through a branch network and

other delivery channels. This segment raises deposits from customers and makes loans and

provides advisory BANK to customers. The Wholesale Banking segment provides loans and

transaction BANK to corporate and institutional customers. The Other Banking Operations

segment provides BANK relating to credit cards, debit cards, third party product distribution

and primary dealership business and other associated costs.

The Bank was incorporated on30th August 1994. 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.


17/63

- 17 -

Certificate of Commencement of Business was received on10th October 1994 from RBI.

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 West minister Bank Pc.

and its subsidiaries (Nat west Group) for subscribing 20% of the banks issued capital and

providing technical assistance in relation to the banks proposed banking business.

Organizational structure

Each team lead has a team comprising only of both senior as well as junior market

research analyst who aid the team lead in the entire market research process as it has been

discussed previously. This is the basic organizational structure followed by HDFC BANK

Operations

Treasury CorporatebankingRetailbanking

Savings Current Salary


18/63

- 18 -

HDFC BANK

Premium Bank Premium Services Premium Charges

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.

Business Segments of HDFC

Treasury

RetailBanking

WholesaleBanking


19/63

- 19 -

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:

Wholesale Banking Service

The Bank's target market ranges from large, blue-chip manufacturing companies in the

Indian corporate to 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 recognized as a leading provider of cash management and

transactional banking solutions to corporate customers, mutual funds, stock exchange

members and banks.


20/63

- 20 -

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 customers through the growing branch network, as well as through alternative delivery

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

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.

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

liberalization 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 government

securities. The Treasury business is responsible for managing the returns and market risk on

this investment portfolio.


21/63

- 21 -

Promoters

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.

Capital Structure

As on 30th June, 2010 the authorized share capital of the Bank is Rs. 550 crore. The paid-up

capital as on said date is Rs. 459,69,07,030/- (45,96,90,703 equity shares of Rs. 10/- each). The

HDFC Group holds 23.63 % of the Bank's equity and about 17.05 % of the equity is held by the

ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.45% of

the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about

4,33,078shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National Stock Exchange

of India Limited. The Bank's American Depository Shares (ADS) are listed on the New York

Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts

(GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002


22/63

- 22 -

CBoP and Times Bank Amalgamation

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was

formally approved by Reserve Bank of India to complete the statutory and regulatory approval

process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC

Bank for every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000crore and net advances

of around Rs. 89,000 crore. The balance sheet size of the combined entity would be over Rs.

1,63,000crore. The amalgamation added significant value to HDFC Bank in terms of increased

branch network, geographic reach, and customer base, and a bigger pool of skilled manpower.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of 2000

branches spread in 996 cities across India. All branches are linked on an online real-time basis.

Customers in over 500 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.


23/63

- 23 -

The Bank also has 5,998 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.

CSR 2010 Details of HDFC Bank Ltd.

CSR Areas

1. Community Welfare

2. Education

3. Environment

4. Poverty Eradication

5. Vocational Training

6. Others-

a. Environmental Responsibility

b. Employee Engagement

c. Community Initiatives


24/63

- 24 -

Management

Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July

2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr. Vasudev

has been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had

an illustrious career in the civil services and has held several key positions in India and

overseas, including Finance Secretary, Government of India, Executive Director, World Bank

and Government nominee on the Boards of many companies in the financial sector.

The Managing Director, Mr. AdityaPuri, 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.

Technology

HDFC Bank operates in a highly automated environment in terms of information technology

and communication systems. All the bank's branches have online connectivity, which enables

the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also

provided to retail customers through the branch network and Automated Teller Machines

(ATMs). The Bank has made substantial efforts and investments in acquiring the best

technology available internationally, to build the infrastructure for a world class bank. The

Bank's business is supported by scalable and robust systems which ensure that our clients

always get the finest services.

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


25/63

- 25 -

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.

Ratings

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 "AAA (ind)" rating to the Bank's deposit programme,

with the outlook


26/63

- 26 -

CHAPTER-4

PRODUCTS &

SERVICES


27/63

- 27 -

PREMIUM SAVING ACCOUNT

HDFC Premium Banking is especially for high net income people i.e. anybody earning more

than 10 lakhs annually .it is an extension of saving account. Premium Banking is divided into

three major categories.

HDFC Bank Imperia Banking -:

DFC Bank Imperia Premium Banking programme is designed for the royalty of today - you.

It seeks to enhance the exclusivity that you are accustomed to and pampers you with services

that other can only dream about.

Be it a dedicated Client Relationship Manager, customized investment advisory or exclusive

privileges, Imperia takes care of every little detail to ensure a banking experience like no other.

HDFC Bank Preferred Banking-:

HDFC bank preferred banking is an exclusive banking, where customers will never again have

to wait to be served. With HDFC Bank Preferred Programme, customer comfort always comes

first.

Ideal for seasoned professionals or businessmen, this programme will provide customers with a

banker dedicated to take care of all your banking and investment needs. It also means you get

preferential rates on various banking products and other exclusive benefits.


28/63

- 28 -

HDFC Bank Classic Banking -:

HDFC Bank Classic Banking experience banking beyond the ordinary,. Becoming an

HDFC Bank Classic customer entitles customers to a host of benefits, including a

bouquet of preferentially priced products and specialized Investment solutions.

To ensure that customers make of all these offering , customers are assigned a

PERSONAL BANKER who will be the one point contact for all their banking needs

SIMPLE SAVING ACCOUNTS-:

Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a

customer's need and occupational status, Whether you're employed in a company and need a

simple Savings account or run your own business and require a robust banking partner, HDFC

Bank not only has the perfect solution for the customer, but also can recommend products that

can augment planning for the future.

SAVING MAX-:

Savings Max account, loaded with maximum benefits to make customers banking experience a

pleasure. By maintaining an average quarterly balance of just Rs. 25,000/-.

Features & Benefits-

FREE GOLD DEBIT CARD

Free Payable-at-Par (PAP) chequebook, without any usage charges up to a limit of Rs. 2 lac

per month.


29/63

- 29 -

Self/Third Party Cash Deposit/Withdrawal at non-home branches, up to Rs 50,000/- per

day free.

Free Net Banking, Phone Banking & Mobile Banking.

Optional "Money Maximize"

Insurance benefits up to 1 lac per annum.

SAVING REGULAR ACCOUNT-:

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and

withdraw cash. Check up on your balances from the comfort of your home or office through Net

Banking, Phone Banking and Mobile Banking. . By maintaining an average quarterly balance

of just Rs. 10,000/-.Need money urgently? Withdraw cash from any of the 4,393 ATM centers

spread across the country.

FEATURES & BENEFITS

Wide network of branches and over thousand ATMs to meet all your banking needs no

matter where you are located.

Bank conveniently with facilities like Net Banking and Mobile Banking- check your

account balance, pay utility bills or stop cheque payment, through SMS.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your

account.

Free Payable-at-Par chequebook, without any usage charges up to a limit of Rs.50,000/-

per month.

Free Insta Alerts for all account holders for lifetime of the account..


30/63

- 30 -

KIDS ADVANTAGES ACCOUNT -:

Children these days are way ahead of their times. Make sure your investments don't fall short.

Now through HDFC Bank's Kid's Advantage Account you can ensure your child's secured

future and fulfill all his dreams in time. The Kid's Advantage Account presents you a great way

to accumulate savings for your child and provide him the head-start required to succeed in life.

It's an account which grows with your child to meet his future monetary requirements.

FEATURES AND BENEFITS

Free Education Insurance cover of Rs. 1,00,000/-

ATM/International Debit Card will be issued for children between 7-18 years of age in the

child's name withparents permission.

Free cash withdrawals on any other Bank's ATM.

1 free personalized cheque book for your child.

Free Net Banking for you to monitor your child's account.

Free SMS/Email alerts informing you about the account transactions.

Once the balance in the Kid's Advantage Account reaches/exceeds Rs. 35,000/-, the amount

in excess of Rs. 25,000/- will automatically be transferred into a Fixed Deposit for 1 year 1

day, in your child's name, by signing in for our sweep-out facility.


31/63

- 31 -

SENIOR CITIZENS ACCOUNT-:

HDFC Bank appreciates your needs and Endeavours, which is why, HDFC BANK present an

account especially dedicated to senior citizens, which like a dutiful child will help you fulfill

your needs in the best manner possiblle

FEATURES & BENEFITS

Shop with pride with your Easy Shop International Debit Card.

Payable-at-Par (PAP) cheque books are issued free.

Avail of free Passbook facility at your account branch.

Avail free SMS alerts to know the transactions in your account.

Get preferential rates on FDs.

Get Accidental Hospitalization cover of Rs.50,000/- per annum. This is a reimbursement

cover for the first applicant.

Gold Credit Card free.


32/63

- 32 -

CHAPTER-5

RESEARCH OBJECTIVE


33/63

- 33 -

RESEARCH OBJECTIVES

To find out the level of satisfaction among saving account holders of HDFC Bank.

To understand perception about HDFC products and services among customers.


34/63

- 34 -

CHAPTER-6

RESEARCH METHODOLY


35/63

- 35 -

RESEARCH METHODOLOGY

All the findings and conclusions obtained are based on the survey done in the working area

within the time limit. I tried to select the sample representative of the whole group during my

job training. I have collected data from people linked with different profession at Pune.

RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain insight into the problem. By

analyzing the secondary data, the study aim is to explore the short comings of the present

system and primary data will help to validate the analysis of secondary data besides on

unrevealing the areas which calls for improvement.

DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through self Administration. Due to time

limitation and other constraints direct personal interview method is used. A structured

questionnaire was framed as it is less time consuming, generates specific and to the point

information, easier to tabulate and interpret. Moreover respondents prefer to give direct

answers. In questionnaires open ended and closed ended, both the types of questions has been

used.

COLLECTION OF DATA:

1: Secondary Data: It was collected from internal sources. The secondary data was collected

on the basis of organizational file, official records, news papers, magazines, management books,

preserved information in the companys database and website of the company.


36/63

- 36 -

2: Primary data: All the people from different profession were personally visited and

interviewed. They were the main source of Primary data. The method of collection of primary

data was direct personal interview through a structured questionnaire.

SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take sample from the

universe to know about its characteristics.

Sampling Units:

Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man,

Professionals and House Wives of Pune.

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 450 respondents. Since it was not possible to cover the

whole universe in the available time period, it was necessary for me to take a sample size of 450

respondents.


37/63

- 37 -

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary

data collection will base on personal interview. I have prepared the questionnaire according to

the necessity of the data to be collected.

RESEARCH PROCESS

I completed my summer internship from HDFC (pasan-baner link road). Marketing manager of

HDFC assigned me to sale saving account in pasan-baner link road and my objective are

Finding the market for saving account of HDFC Bank. To complete my SIP, I selected the title

Analyzing market competition and satisfaction of among customers of HDFC Bank in pasan

area and surveyed 450 persons. I tried to select the sample representative of the whole group

during my job training. I have collected data from people linked with different profession at

pune. All the findings and conclusions obtained are based on the survey done in the working

area.

RESEARCH LIMITATIONS:

Limitation of time and money of the student researcher, so at times proper assistance for

the researchers project is not obtained.

Communication problem with some of customers are comfortable in their mother tongue

so substantial percentage of customers are not ready to spare their time and attention to

fill the relevant information into the questionnaire.

It was difficult to take appointment with some business person as they have busy

schedule.


38/63

- 38 -

CHAPTER-7

DATA ANALYSIS


39/63

- 39 -


40/63

- 40 -

33%

67%

respondant

yes

no

Qu.1) Do you have account in HDFC bank

OPTIONS

NO. OF RESPONDENTS

YES 150

NO 300

TOTAL 450

INTREPRETRATION

This shows that market penetration of HDFC bank is about 33 percentage. As the AQB

of nationalized and cooperative bank is very low.

Most of the customers are not actual customers of HDFC Bank (66% customers).


41/63

- 41 -

Q2. Which Factors do you consider before opening an Account?

Category No. of Respondents Percentage

Min. opening balance 135 30%

Maintaining AQB 184 41%

Services & Offers 36 8%

Transaction Charges 54 12%

Distance from Branch 41 9%

Total 450 100%

Base 200 respondents

Interpretation

From our survey, we found customers considered AQB (Annual Quarter

Balance) as one of the prime factor in opening an account (41%).

Minimum opening balance is preferred as a second factor in opening saving

A/C.

Other factor like services, offers, transaction charges, and distance from branch

are not given much importance for opening an saving account.

30%

41%

8%

12%

9%

Min. opening balance Maintaining AQB Services & Offers

Transaction Charges Distance from Branch


42/63

- 42 -

Q3. What is the first thing that comes to your mind when you think of HDFC Bank?


Branches in city 72 16%

ATMs nearby 36 8%

Industrial Bank 48 12%

Housing Loan Bank 41 9%

No response 247 55%

Total 450 100%


Interpretation:

We targeted some rural market also where customers of HDFC bank are less in

number so there was no response of people because some PSU banks are near to

them.

Awareness of HDFC banks and its services are low among people.

Branch in a city is prime factor that comes in customers mind first (16%).

16%

8%

12%

9%

55%

Branches in city ATMs nearby Industrial Bank

House Loan Bank No response


43/63

- 43 -

Q4. In which bank do you find relevant products to your need?

TABLE


HDFC bank 77 17%

Axis bank 126 28%

ICICI bank 81 18%

SBI bank 67 15%

Cooperative bank 99 22%

Total 450 100%


GRAPH

Interpretation

Most of the person was in favor of AXIS bank as they find more

customize/personalize services or products in this bank.

Some of the customers were not in favor of nationalized bank to find the

relevant product to their need.

17%

28%

18%

15%

22%

HDFC bank Axis bank ICICI bank SBI bank Cooperative bank


44/63

- 44 -

Q5.Your Age

OPTIONS

Having A/C in HDFC

Bank

Not Having A/C in HDFC Bank

18-23 Years 25 120

24-29 Years 35 65

30-35 Years 60 40

35 Years and above 30 75

TOTAL 150 300

INTREPRETATION

This shows those maximum customers who are having a/c in HDFC bank is of 30 to 35

years of age.

The maximum no. customers who dont have a/c in HDFC bank is of 18-23 years of

age which is the minimum age group for a/c holder in HDFC.

0

20

40

60

80

100

120

140

18 - 23 24 - 29 30 - 35 35 & above

Chart Title

Having a/c

Not having a/c


45/63

- 45 -

Q6. Educational Qualification.

OPTIONS Having A/C in HDFC bank

Not having A/C in HDFC

bank

Undergraduate 18 147

Graduate 58 72

Post graduate 74 81

TOTAL 150 300

INTREPRETATION

This show that maximum no. of customer who are having a/c is post graduate, while

undergraduate customer is very low in number. Some of people who dont have a/c in HDFC

bank is undergraduate.

0

20

40

60

80

100

120

140

160

Undergraduate Graduate Post graduate

Having a/c

Not having a/c


46/63

- 46 -

Q7. What is your Occupation?



bank

Business 63 74

Profession 38 63

Private Service 42 66

Public Service 07 97

TOTAL 150 300

INTREPRETATION

We segmented on the basis of occupation and found out that businessman are major

customer of HDFC Bank.

This show that maximum no. of customer of HDFC is businessman, while people who

works in public sector having lowest share in a/c holders.

0

10

20

30

40

50

60

70

80

90

100

Business Profession Private Service Public Service

Having a/c

Not having a/c


47/63

- 47 -

Q8.Your annual household income.



bank

Less than 2 lacks 7 127

Between 2 to 5 lacks 23 83

Between 5 to 8 lacks 51 47

More than 8 lacks 69 43

TOTAL 150 300

INTERPRETETION

This shows that the maximum no. of customer of HDFC bank having annual income of

more than 8 lacks, the people who have annual income of less than 2 lacks cant

maintain the AQB of HDFC bank.

As the people who have less than 8 lacks is minimum for not having a/c in HDFC,

means HDFC is taping the higher income class people.

0

2040

60

80

100

120

140

Less than 2

lacks

Between 2 to 5

lacks

Between 5 to 8

lacks

More than 8

lacks

Having a/c

Not having a/c


48/63

- 48 -

Q9.How much do you personally give importance to the business banking relationship?



bank

Highly 77 153

Very Much 33 67

SoSo 24 49

Not Much 14 29

No Importance 2 2

TOTAL 150 300

INTERPRETATION

This shows that the customer of HDFC bank give highly importance to banking

relationship because they understand the benefits such as credit card, loan etc.

Most of the customers who are not having HDFC A/C also give importance to business

banking relationship (153 person out of 300).

0

20

40

60

80

100

120

140

160

Highly Very Much So - So Not much No

Importance

Having a/c

Not having a/c


49/63

- 49 -

Q10. Do you want to open a savings account with HDFC Bank?



bank

Yes - 32

No - 234

Will Tell Later - 34

TOTAL 150 300

INTERPRETATION

Most of the customers who are not customer of HDFC bank are not ready to open

account in HDFC bank because of high A/C opening charges (Rs. 5000-100000).

Some customers want to open A/C because they aware about HDFC product and

services and benefits like ATM and branch bank is near to the home, transaction charges

etc.

10%

75%

15%

opening a/c with HDFC

Yes

No

Will Tell Later


50/63

- 50 -

Q11.What is your perception about different product & services offered by HDFC Bank?

OPTIONS Having A/C in HDFC

bank


bank

Lucrative 104 39

Not Lucrative 19 82

No Idea 27 179

TOTAL 150 300

INTERPRETATION

This shows that the customers of HDFC bank are satisfied with the offered products and

services and their perception towards HDFC bank is lucrative.

Opinion of Some customers about products and services offered are no lucrative and no

idea because lack of awareness.

Most of the customers who do not having A/C said that there is no idea about HDFC

products and services (179 out of 300).

0

50

100

150

200

Lucrative Not Lucrative No Idea

Having a/c

Not having a/c


51/63

- 51 -

Q12. Would you like to maintain long-lasting relationship with HDFC Bank?

OPTIONS Having A/C in HDFC bank Not having A/C in HDFC

bank

Yes 63 -

May be 27 -

Depends on Situation 37 -

No 23 -

TOTAL 150 300

INTERPRETATION

This shows that a large number of HDFC banks customer want to maintain their

relationship for long time with the bank.

Irrespective of some dissatisfaction people are still thinking to look forward for the

HDFC banks plan.

42%

18%

25%

15%

maintaining Relationship with HDFC

yes

May be

Depends on Situation

No


52/63

- 52 -

Q13. Are you satisfied with HDFC Banks services?

OPTIONS Having A/C in HDFC bank Not having A/C in HDFC

bank

Highly Satisfied 32 -

Satisfied 28 -

Neutral 47 -

Dissatisfied 27 -

Highly Dissatisfied 16

TOTAL 150 300

INTERPRETATION

This shows that large number of customers is neutral but a large segment of people are satisfied

with the banking services of HDFC.

The data shows that HDFC bank is either not taking care of their particular segment of customers.

To capture the market more HDFC bank has to improve their some basic services.

21%

19%

31%

18%

11%

SATISFACTION LEVEL OF CUSTOMER

highly satiafied

satisfied

neutral

dissatisfied

highly dissatified


53/63

- 53 -

CHAPTER-8

FINDING, RECOMMENDATION &

SUGGESION


54/63

- 54 -

FINDINGS

The maximum no. of customer of HDFC Bank is of age group of 30 to 35 years and above.

There is a market of age group of 18 to 23 year which is not targeted by the bank.

The maximum no. of customer of HDFC Bank is businessman. People who are working

with public sector is in negligible number as a customer of the HDFC Bank.

The people who are having a/c in HDFC bank are satisfied with the product and services of

the bank , and they believe that the same are lucrative . here out of 150 customer, 104

customer believe that the product is lucrative .

The people who dont have a/c in HDFC bank even dont know about the product and

services of the bank. Here in this survey 179 out of 300 customers dont have any idea

about the banks product, while 82 people dont have proper knowledge about it.

Asking about the lasting of the relationship with the bank, result is not good for the bank in

the future. Because only 63 out of 150 responded that YES they want a long lasting

relationship with the bank. While the remaining are confused about it.

Asking about changing the bank only 53 out of 150 customer of HDFC Bank responded as

NO, while remaining are not that much satisfied so they are confused.


55/63

- 55 -

Conclusion

The project opportunities provided to find out market competitors for HDFC Banks

saving a/c and identifying prospective customers. By the method of questionnaire

survey I also tried to find the effectiveness of the banks product, services and facilities

in terms of its customer satisfaction. I tried to find out the different behavior of

customer who is using services of HDFC Bank. I also tried to understand perception

about HDFC products and services among its customers.


56/63

- 56 -

Suggestion and recommendation

The bank should also target the people of age group of 18 to 23 (teenager youths) because a

large no. of population is there in that age group which are untargeted. Bank should have

different product and services for them as their income level is not very high.

With different products and services bank should also target the people who are working

with public sector.

The bank needs to make people aware about their products and the basic benefits they can

derive out of it. And also the differential features of its saving account as compared to other

banks.

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

the company and different products of the bank

HDFC needs to improve the services provided to its existing customers before attracting

more in the future and use word of mouth as a promotional tool to increase the sales

potential of its saving account.

It is very important for the bank to retain the existing customer and maintaining a good

relationship with them. For this bank can provide them some facility which other banks not

providing , like membership fee of any club or gymkhana as more than 80% of customer of

the bank is a member of any club or gymkhana.


57/63

- 57 -


58/63

- 58 -

ANEXURE

THE QUESTIONNAIRE:

Dear Sir/Madam,

I am a student of INDIRA INSTITUTE OF MANAGEMENT,PUNE and presently

doing a project on ANALYSING MARKET COMPETITION AND SATISFACTION

AMONG CUSTOMERS OF HDFC BANK IN PASAN AREA . I request you to kindly fill

the questionnaire below and I assure you that the data generated shall be kept confidential.

1) do you have account in HDFC bank?

a) yes

b) no

2) Which factors do you consider before opening an account?

a) Minimum opening balance.

b) Maintaining AQB

c) Services and Offers

d) Transaction charges

e) Distance from branches

Name: ..

Address: ..

Contact No :( O) (M)

City: ...............Pin: .State:.


59/63

- 59 -

.

3.) What is the first thing that comes to your mind when you think of HDFC Bank?

a) Branches in a city

b) ATM nearby

c) Industrial Bank

d) Housing Loan Bank.

4.) In which bank do you find relevant products to your need?

a) HDFC Bank

b) Axis Bank

c) ICICI

d) SBI

e) Co-operative Bank.

5.) Your Age?

a) 18-23 Years

b) 24-29 Years

c) 30-35 Years

d) 35 Years and above

6.) Education Qualification?

a)

Undergraduate

b) Graduate

c) Post graduate


60/63

- 60 -

7.) Occupation?

a) Business

b) Profession

c) private Services

d) public services

8.) Your annual house hold income?

a) < than 2 lack

b) Between 2 to 5 lack

c) Between 5 to 8 lack

d) > than 8 lack

9.) How much do you personally give importance to business banking relationship?

a) Highly

b) Very much

c) So-So

d) Not much

e) No importance

10.) Do you want to open saving account with HDFC Bank?

a) Yes

b) No

c) Will tell later.

11.) What is your perception about different product and services offered by HDFC Bank?

a) Lucrative

b) Not lucrative

c) No idea


61/63

- 61 -

12.) Would you like to maintain long-lasting relationship with HDFC Bank?

a) Yes

b) May be

c) Depends on situation

d) No

13.) Are you satisfied with HDFC banks services?

a) Highly satisfied

b) Satisfied

c) Partially satisfied

d) Not satisfied

Date:

Place:

Signature:

Thank You


62/63

- 62 -

BIBLIOGRAPHY

1.BOOKS AUTHORS

Marketing Management (10th

Edition) Philip Kotler

Marketing Management (3rd

Edition) V.S. Ramaswamy

Research Methodology (2nd Edition)

Research Methodology

C.R.Kothary

M.V. KULKARNI

2. NEWS PAPERS

Times of India

Financial Express

3.WEBSITES

www.hdfcbank.com

www.hdfc.com

www.crisil.com

www.wikipedia.com

www.rbi.com
http://www.hdfcbank.com/http://www.hdfcbank.com/http://www.hdfc.com/http://www.hdfc.com/http://www.crisil.com/http://www.crisil.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.rbi.com/http://www.rbi.com/http://www.rbi.com/http://www.wikipedia.com/http://www.crisil.com/http://www.hdfc.com/http://www.hdfcbank.com/


63/63

Documents

yogesh hdfc report1