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Organization study on hdfc bank Organization study on hdfc bank Document Transcript

  • S.C.M.T. AKHIL BHATT 1 A SUMMER TRAINING REPORT ON "ORGANIZATIONAL STUDY OF H.D.F.C BANK" Project Carried Out At In the partial fulfillment of the study Master of Business Administration GUIDED BY: SUBMITTED BY: PROF- NIRAV DAVE AKHIL BHATT H.O.D- M.B.A M.B.A SEM-III YEAR 2009-10 SUBMITTED TO: SARVODAY COLLEGE OF MGT AND TECHNOLOGY LIMBDI DIST- SURENDRANAGAR
  • S.C.M.T. AKHIL BHATT 2
  • S.C.M.T. AKHIL BHATT 3 PREFACE Banking industry is the primary requirement for the financial development of the country. Up to the mid after the liberalization, privatization, globalization process private sector bank, co operative bank and multi national banks have emerged strongly. The banking sector has the potential to become special sector of the next decade. In terms of savings mobilizing, employment generation, rural development and also financing the government in building up the infrastructure in the economy. Here as management student this to study and observe the overall development of the banking sector and how the market is influenced by the market of various players. I realized how theories, principals and the laws implied with the practical manner. Thus practical exposure of the industry is important to learn and observe for the management students. It was interesting to have summer placement / industrial training / project study at the HDFC Bank Ltd. I worked at waghawadi road main branch Bhavnagar and have tried my best to collect information on marketing, finance and human resource by visiting each of the department.
  • S.C.M.T. AKHIL BHATT 4 ACKNOWLEDGEMENT To acknowledge is very great way to show your gratitude towards the persons who have contributed in your success in one or other way. I find words inadequate to express my gratitude to Mr. CHETAN TRIVEDI for providing me an opportunity to carry out my summer training as such a well reputed and leading bank, HDFC BANK. At very outset of the training I deem it is my pious duty to express my sincere thanks to MR. KEYUR JANI Relationship manager MR. HIMANSHU TRIVEDI Assistant manager MR.RAGHVAN Deputy manager MR.HITESH SHAH P.B. Authorizer I would like to thank prof-Nirav dave who has guided me for my project work and provided encouragement throout my training period. This study could not have been successful without the valuable input of the customer of HDFC Bank.
  • S.C.M.T. AKHIL BHATT 5 EXECUTIVE SUMMARY There are three ways of depositing money in the banks, and one of the way is to deposit the money, that is current account. A person usually deposit money in current for carrying out day to day transactions of business to carry on the work smoothly. There are many banks are available in the market and they gives different types of account services to the customers. Also banks provides different types of services to the customers like net banking, phone banking, mobile banking. But people of Bhavnagar are not much aware of these type of facility which are not available in the earlier days. As the technology grows these many types of facilities developed which help to the customer in better way. HDFC Bank gives 7 different types of current account and also gives flexibility of banking anytime, anywhere and allows them to save more money while doing business across the country. My research is to find out & know that to what extent are the people of Bhavnagar aware of the current account facilities provided by the different banks, & come to know that what are there requirement, there satisfaction level, image of different type of bank in there mind and also area of improvement for the bank. I conducted my exploratory research through questionnaire & found that few people are aware of different facility provided by the bank and also different facility provided by the other bank. More of the people are satisfied with there existing bank with their reason. Most of the people are trusted on the national banks rather than the private banks weather they provided better services than national banks. And the basic need of the people which they wants from the banks that is better services. They are believed that the services are most important criteria for the improvement for any bank.
  • S.C.M.T. AKHIL BHATT 6 INDEX  General information  WHAT IS BANKING?  BANKING IN INDIA  COMPANY PROFILE  About HDFC Group  About HDFC Bank  COMPOSITON OF BOARD OF DIRECTORS  ORGANISATION STRUCTURE OF BRANCH  AWARDS AND ACHIEVEMENTS  PROFILE OF BHAVNAGAR BRANCH  ORGANIZATIONAL OBJECTIVES & GOALS  PRODUCTS OF HDFC BANK  SERVICES BY BANK  MARKETING MANAGEMENT  FINANCE DEPARTMENT  HUMAN RSOURCE MANAGEMENT  DATA ANALYSIS  FINDINGS OF THE RESEARCH  SWOT ANALYSIS OF HDFC BANK  FINIDING & SUGGESTIONS  CONCLUSION  BIBLIOGRAPHY
  • S.C.M.T. AKHIL BHATT 7
  • S.C.M.T. AKHIL BHATT 8 WHAT IS BANKING Bank is a business that provides financial service, usually for profit. Traditional banking services include receiving deposit of money, lending money and processing transaction. A commercial bank accepts deposit. Some banks (called bank of issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit: for example – selling insurance product, investment product. Banking, the business of providing financial services to consumer and business. The basic services a bank provides are checking accounts, which can be used like money to make payment and purchase goods and services ; saving accounts and time deposit that can be used to save money for future use ; loans that consumer and businesses can use to purchase goods and services ;and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, saving and loan association, saving banks, and credit unions. A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchange, lends, invest or safeguard money for its customer. This institution includes finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies and real estate investment trust. Banking services are extremely important in a free market economy such as that found in Canada and the United states. banking services serve two primary purpose. first by supplying customers with the basic mediums of exchange (cash, checking accounts, and credit cards) bank play a key role in the way goods and services are purchased. Without this familiar method of payment, goods could only be exchange by barter. This is extremely time consuming and inefficient.
  • S.C.M.T. AKHIL BHATT 9 Second by accepting money deposit from savers and then lending the money to borrowers, banks encourage the flow of money to productive and investment. this in turn allows the economy to grow. without this flow, saving would not be able to build the new factories the economy needs to produce more goods and grow . Enabling the flow of money from savers to investors is called financial intermediation and it is extremely important to a free market economy.
  • S.C.M.T. AKHIL BHATT 10 BANKING INDIA Banking in India originated in the first decade of 18th century with general bank of India coming into existence in 1786. This was followed by bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the state bank of India being established as "the bank of Bengal" in Calcutta in June 1806. a couple of decades later, foreign banks like credit Lyonnais started their Calcutta operations in the 1850s. at that point of time, Calcutta was the most active trading port, mainly due to the trade of the British empire and the due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given border powers.
  • S.C.M.T. AKHIL BHATT 11
  • S.C.M.T. AKHIL BHATT 12 ABOUT HDFC BANK REGISTERED OFFICE: CORPORATE OFFICE: Address Address HDFC Bank House Ramon House, 169, Back Bay, Senapati Bapat Marg Lower Parel, Reclamation, Mumbai, H T Parekh Marg, Maharashtra, Church Gate, 400013. Mumbai 400 020. Phone: 91-022-56521000 Fax: 91-022-24960737 BHAVNAGAR BRANCH HDFC BANK LTD. Sterling Point, Waghawadi Road, Bhavnagar, 364002. Websites www. hdfc.com
  • S.C.M.T. AKHIL BHATT 13 ABOUT HDFC GROUP If ever there was a man with a mission it was Hasmukhbhai Parekh, Founder and Chairman-Emeritus, of HDFC Group who left this earthly abode on November 18, 1994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass – a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing gave birth to the Housing Development Finance Corporation – it was a trendsetter for housing finance in the whole Asian continent He was also a writer in his own right. There are over 200 published articles by him... In 1992, the Government of India honoured him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship.He was one of the Founder Members of the Centre for Advancement of Philanthropy, and it’s Chairman till 1993. Mr. H.T. PAREKH is conferred the Padma Bhushan by the Government of India in the year 1992.
  • S.C.M.T. AKHIL BHATT 14 COMPOSITION OF BOARD OF DIRECTIORS The Composition of the Board of Directors of the Bank is governed by the Companies Act, 1956, the Banking Regulation Act, 1949 and the listing requirements of the Indian Stock Exchanges where securities issued by the Bank are listed. The Board has strength of 12 Directors as on March 31, 2008. All Directors other than Mr. Aditya Puri, Mr. Harish Engineer and Mr. Paresh Sukthankar are non-executive directors. The Bank has five independent directors and seven non-independent directors. The Board consists of eminent persons with considerable professional expertise and experience in banking, finance, agriculture, small scale industries and other related fields. BOARD OF DIRECTORS Managing Director Mr.Aditya Puri Director Mr.Arvind Pande Director Mr.Ashim Samanta Director Mr.C M Vasudev Director Mr.Gautam Divan Executive Director Mr.Harish Engineer Chairman Mr.Jagdish Capoor Director Mr.Keki M Mistry Director Mr.Pandit Palande Executive Director Mr.Paresh Sukthankar, Director Mr.Renu Karnad Director Mr.Vineet Jain
  • S.C.M.T. AKHIL BHATT 15 ORG. STRUCTURE OF HDFC AT BHAVNAGAR BRANCH BRANCH P.B. Authorisor : Mr.Hitesh Shah ABM for Current a/c : Mr. Himanshu Trivedi IRM : Mr. Kamlesh Pipal Teller Authorizer : Mr. Vijay Bhalani Relationship Manager : Mr. Keyur Jani
  • S.C.M.T. AKHIL BHATT 16 AWARDS AND ACHIEVEMENTS Business Today-Monitor Group survey  One of India's "Most Innovative Companies" Financial Express-Ernst & Young Award  Best Bank Award in the Private Sector category Global HR Excellence Awards - Asia Pacific HRM Congress:  'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more Business Today 'Best Bank' Award Dun & Bradstreet – American Express Corporate Best Bank Award 2007 'Corporate Best Bank' Award The Bombay Stock Exchange and Nesscom Foundation's Business for Social Responsibility Awards 2007 'Best Corporate Social Responsibility Practice' Award Outlook Money & NDTV Profit Best Bank Award in the Private sector category. The Asian Banker Excellence in Retail Financial Services Awards Best Retail Bank in India Business Today Best Bank in India. Forbes Magazine One of Asia Pacific's Best 50 companies. Business world Best listed Bank of India. The Asset Magazine's Triple A Country Awards Best Domestic Bank. Asiamoney Awards Best Local Cash Management Bank in Large and Medium segments.
  • S.C.M.T. AKHIL BHATT 17 PROFILE OF BHAVNAGAR BRANCH NAME HDFC BANK ADDERESS GOPI ARCADE, STERLING POINT , WAGHAWADI ROAD, BHAVNAGAR TELEPHONE NO. 0278-2572173/74 YEAR OF STABLISHMENT 1994 MEMBERS CHETAN TRIVEDI (BRANCH MANAGER) KEYUR JANI (RELATIONSHIP MANAGER) PRANAV JANI (RELATIONSHIP MANAGER) 4 PERSONNEL BANKERS There are so many awards and achievements in HDFC BANK Bhavnagar branch as described below 1). In December 2004 Bhavnagar branch was awarded for maximum selling of Credit card. As a title of “THE FASTEST MILLION YOU MADE THE DIFFERENCE” 2). In financial year 2005-06 the branch was awarded for second highest selling of life insurance business in Saurashtra and Kutchh cluster. 3). During January 2007 through march 2007 , branch was awarded for generating the Highest number of leads for current accounts. 4). In December 2006 the Branch Manager Mr. Chetan Trivedi was certified with excellence For being the top branch manager for two wheeler vehicle loan in a month in west region Awards in Bhavnagar branch
  • S.C.M.T. AKHIL BHATT 18 ORGANIZATION OBJECTIVES & GOALS BUSINESS OBJECTIVES: The main objectives of HDFC are divided into two parts, which are as under: First and foremost objective is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Second objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. ORGANIZATIONAL GOALS:  To develop close relationships with individuals households.  To maintain it’s position as the premier housing finance institution in the country.  To transform ideas into variable and creative solutions.  To provide consistently high returns to shareholders.  To grow through diversification by leveraging off the existing client base
  • S.C.M.T. AKHIL BHATT 19 COMPANY PROFILE PROMOTOR BUSINESS FOCUS 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. 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. 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
  • S.C.M.T. AKHIL BHATT 20 CAPITAL STRUCTURE DISTRIBUTION NETWORK 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. The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the 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". HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over branches spread over 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 have a strong and active member base. The Bank also has a network of about over 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
  • S.C.M.T. AKHIL BHATT 21 MANAGEMENT TECHNOLOGY 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. 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 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.
  • S.C.M.T. AKHIL BHATT 22 BUSINESS 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 SERVICES The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agro-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. RETAIL BANKING SERVICES The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking 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
  • S.C.M.T. AKHIL BHATT 23 RATINGS 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. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. 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. 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 programmed 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) programmed "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
  • S.C.M.T. AKHIL BHATT 24 deposit programmed, with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors 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 programmed 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.
  • S.C.M.T. AKHIL BHATT 25 CURRENT SITUATION OF THE BANK HDFC Bank is one of India’s leading banking and financial services institutions. Its mission is to be a world-class Indian bank, and it provides a wide range of services in wholesale and retail banking; including commercial, investment, transactional and branch banking. HDFC Bank today has more than 3.25 million customers. On the wholesale services front, it is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Increasing revenue in the face of fierce competition HDFC Bank was among the first privatized banks to be set up in India after the liberalization of the Indian banking industry. Today it is among several banks vying for the customers who have not experienced the benefits of private banking. In a fiercely competitive market place, the bank knows that growing its bottom-line is dependant largely on increasing returns from existing customers, while adding new customers to its portfolio.
  • S.C.M.T. AKHIL BHATT 26 FUTURE PLANS HDFC has always been market-oriented and dynamic with respect to resource mobilization as well as its lending programme. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client base of borrowers, depositors, share holders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine- tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and services. Times bank merger will give HDFC Bank a greater reach in terms of an expanded network, which will touch 107 branches and an increased customer base. The bank has also invested 26% each in the equity of computer age management services and ACSYS system software India as strategic investment. While computer age is a well established player in the distribution of a range of mutual fund products, ACSYS is into developing software that caters to distributors of financial products and mutual funds.
  • S.C.M.T. AKHIL BHATT 27
  • S.C.M.T. AKHIL BHATT 28 MARKETING DEPARTMENT Speaking to business line , AJAY KELKAR, Head, Marketing, H.D.F.C BANK said this initiatives are especially targeted at those consumer who are not aware about the banks various value added services such as direct banking facilities. we are going to demonstrate the advantages of net banking and mobile banking, as these concept are relatively new to people living in smaller town and cities. The bank has also launched another initiative called business ki baatein, which is targeted at areas where the population comprises small businessman. KELKAR said that the bank would get experts to talk on a number of issues such as value added tax and sales tax. HDFC, said kelkar, has been successful in reducing its customers attrition by almost 15-20 % ever since its data-led customer analysis system, uncial was set up last year. it enables them to measure the efficiency of the campaigns. test every campaign at each and every step, experiment with creative and media .there are learning that can immediately be incorporated into the next campaigns. These campaigns provide them with information about every costumers preferences used for mass media communication, making it more effective. they can measure the result of a campaign through the sales that they make and the customers that they added. there is a clear return on investment, which from a functional point of view gives team a stronger voice. they have also been able to reduce their add spends by about 10-15 % and have reduced the cost of acquisition.
  • S.C.M.T. AKHIL BHATT 29 KELKAR said that the banks focus in future would be to enhance its database marketing initiatives. We plan to invest close to Rs 12crore to create the environment that is required to support customer intelligence that leads to data based marketing. HDFC has chartered an extensive customer lifecycle based marketing campaign calendar for this and the forthcoming fiscal. fractal , which specialize in predicting HDFC BANKS marketing team in various initiatives of growing the retail business quickly and cost effectively. HDFC has been using analytics for taking informed marketing decision. Fractal will help the bank use information to reach new customer and to build nature and maximize lasting customer relationship. Fractal will also help the bank solve the problem of ever increasing customer acquisition cost and reducing customer loyalty. The marketing programmes would involve acquisition of customers profitably by reducing compaign costs, cross selling various asset and liability products to the existing customers, thereby, leveraging the existing relationships and proactively retaining existing customers. Fractal's analytics-based marketing solutions span which the entire lifecycle of customer relationship right from customer acquisition to customer retention to customer value management, is expected to give HDFC an upper hand in understanding the needs and circumstances of their customers. Fractal claims to use numerous advanced statistical modeling methodologies backed by strong banking expertise for building predictive models and scorecards that help its clients take business decisions more effectively and efficiently.
  • S.C.M.T. AKHIL BHATT 30 GROWTH IN LAST FEW YEARS Over the last few years, HDFC Bank as a whole has been growing steadily at a rate of 30 percent or so, and that the bank has managed to maintain that growth rate on a consistent basis, which is a very creditable performance. However, in the product mix, there have been a number of segments, especially loans, which have recorded growth of over 100 percent over the last year. MARKETING INITIATIVES TAKING BY THE BANK HDFC Bank is possibly the only bank in India, and one of the very few in Asia, to have embarked on a data-led marketing analytics campaigns initiative, using marketing automation technology provided by Unica. Unica has been recognized by Gartner as the leading player in this field. Through this tool, they have been able to intelligently use the 4-5 terabytes of customer data available in its warehouse. Bank have set up a team to conduct marketing campaigns in a scientific manner using customer data, usage patterns, preferences, lifecycle, etc, the Bank also conducts event-based marketing. These initiatives also complement their media-based marketing as well as on-the- ground marketing activities, which remain important in the bigger scheme of things. However, the marketing analytics initiative enables them to measure the efficacy of the campaigns, testing every compaign every step of the way, experimenting with creatives, messages, media, etc. There are learnings that can immediately be absorbed and incorporated in the next campaigns, and these campaigns in a way provide them with information about
  • S.C.M.T. AKHIL BHATT 31 customer choices and preferences that can be used for mass media communication, making those more effective. Media vehicles used for send their massage to reach their target customers. HDFC Bank has been predominantly using direct mailers, e-mails, and SMS for communicating their massage to their targeted audience as they are the most cost-effective routes of addressing our core target audiences with maximum degree of customization possible.
  • S.C.M.T. AKHIL BHATT 32
  • S.C.M.T. AKHIL BHATT 33 FINANCE DEPARTMENT Finance department is broadly concerned with the acquisition of funds by a business firm.  How large should be the firm and how fast should it grow?  What should be the mix of firm’s assets?  What should be the mix of the firm’s financing?  How should the firm analysis, plan, and control its financial affairs. Finance is the lifeblood of the organization. Finance management as an integral part of the overall management is not a totally independent area. It draws heavily on related subjects and fields of study namely economics, accounting, marketing, production, and quantitative methods. Following are the main features of financial management.  The focus of financial management was mainly on certain episodic event like formation, issuance of capital, major expansion, merger, re-organization, and liquidation in the life cycle of the firm.  Approach was mainly descriptive and institutional. The instrument of financing, the institution and procedures used in capital market, and the legal aspect of financial events formed the core of financial management.  The outsider’s point of viewed mainly from the point of investment bankers, leaders, and other outside interests. According to HDFC BANK Ltd.’s AGM on JUNE 1, 2009: -  Issued 50 crore Redeemable Subordinated Bonds to increase Capital Adequacy Ratio, which had come down to 11.09% from 12.19%.  HDFC Bank as on March 31, 2001 had 131 outlets spread across 53 cities. As on date of AGM total outlets increased to 134. Bank has plans to increase this number to 160 by year-end. Ten new outlets are planned for Maharashtra.
  • S.C.M.T. AKHIL BHATT 34  Unsecured advances went up from Rs 239 crore in March 2000 to Rs 683 crore in March 2001. These advances were made to corporates with "AAA" rating for short tenure and Bank has recovered these amounts in the current year.  Money at call and short notice with banks went up from Rs 487 crore in March to Rs 1,357 crore in March 2001. Bank found this opportunity giving good returns and funds were parked with overseas accounts.  All HDFC Bank branches and head office undergo Concurrent Audit.  HDFC Bank is the largest issuer of debit cards in the country.  HDFC’s reported a 80% increase in top line in FY 2001 and 75% increase in bottom line. The reason for less than proportionate growth in Net Profit is due to investments made for future growth. Bank sees these years as consolidation period.  HDFC Bank serves 5 lakh accounts in Demat Services segment. Total number of employees for Depository services is 142 and this segment contributed Rs 7 crore to Net Profit.  Out of the stipulated norm of 40% advances to priority sector by RBI, HDFC Bank has made 15% advances to Agriculture sector. These include loans to farmers and investments in NABARD and Rural Electrification. Investments. Investment is most important get reward from any where because through the investment we can get such reword which are very helpful to us. As a part of generating revenue Hdfc invest amount in 2008 the total amount is 49, 393, 32 Lakhs. In 2007 the total amount was 30, 564, 58. SALES 0 2000 4000 6000 8000 10000 12000 2006-2007 2007-2008 2008-2009
  • S.C.M.T. AKHIL BHATT 35 NET INTEREST INCOME 0 100000 200000 300000 400000 500000 600000 2006-2007 2007-2008 2008-2009 NET REVENUE 0 200000 400000 600000 800000 2006-2007 2007-2008 2008-2009 PROFIT AFTER TAX 0 50000 100000 150000 200000 2006-2007 2007-2008 2008-2009
  • S.C.M.T. AKHIL BHATT 36 DEPOSITS 0 2000000 4000000 6000000 8000000 10000000 12000000 2006-2007 2007-2008 2008-2009 Competitive analysis: Banks Net Profit Net Worth Total Income Advances to Loans Book Value Cash Flows From Operating Activities HDFC Bank 870.78 5299.53 5688.98 35061.26 169.24 1724.76 ICICI Bank 2540.07 22205.99 18821.12 146163.11 249.55 4653.33 Standard Chartered 904.85 3729.37 3968.29 11901.26 70.61 3276.84 SBI 4406.67 27644.09 43243.67 261641.53 525.25 5910.1 Citibank 705.55 4195.55 4242.87 5866.32 83.68 1314.3
  • S.C.M.T. AKHIL BHATT 37
  • S.C.M.T. AKHIL BHATT 38 HUMAN RESOURCE MANAGEMENT Mandeep Maitra is the Country Head HR at HDFC Bank. She has done her B.A. Psychology from lady Shriram Colege, Delhi and MBA HR from Tata Institute of Social Sutdies. The HR department at HDFC bank has 54 people, including the trainers. The HR department is present in Mumbai, Chennai, Delhi, Ahmedabad, Kolkata, Bangalore, Hyderabad, Chandigadh, Pune and Lucknow. All people here in HR are MBAs, except for those handling HR operations. HUMAN RESOURCE PLANNING "Human resource planning is the process of forecasting a firm's future demand for and supply of the right type of people in the fight number". The planning process: HRP essentially involve forecasting personnel needs, assessing personnel supply and matching demand supply actors through personnel related programmes. The planning process is influenced by overall organizational objectives and the environment of business. Importance of HRP 1. Future Personnel Need 2. Coping with Change 3. Creating Highly Talented Personnel 4. protection of Weaker Section 5. To adopt International Strategies 6. Foundation for Personnel Functions 7. Increasing Investment in Human Resource 8. Resistance to Change and Move
  • S.C.M.T. AKHIL BHATT 39 HR Planning Process HRP help to any organization for the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available and what must be done to ensure that personnel supply equals personnel supply equals personnel demand at the appropriate point in the future, which helpful to achieve efficiency of bank in their various services. Environment Organizational objectives and polices H R Supply ForecastH R Need Forecast H R programming HRP Implementation Control and Evaluation of Programme Shortage Recuritment and Selection Surplus restricted Hiring Reduced Hours
  • S.C.M.T. AKHIL BHATT 40 Reason behind success of any organization is efficient system of Human Resource Planning activities carries out by their human resource department. HDFC bank also follow the golden system and try to implement those system in their organization well. Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the fight time, capable of effectively and efficiently completing those tasks that will helps the organization achieve its overall objectives. How HRP stand helpful to HDFC Bank:  Future personnel needs:  Parts of strategic planning :  Creating highly talented work force:  International banking Strategies:  Foundations of Personnel functions:  Increasing investment in human to survive long-term: RECRUITMENT: "Recruitment involves attracting and obtaining as many applications as possible from eligible job seekers".  Determine the present and future requirement of the organization in conjunction with its other activities.  Helpful to attract the pool of job candidates at minimum cost.  Help increase the success rate of the selection process by reducing number of unqualified employees in the prior evaluation.  Help to reduce the probability that job applicants once recruited and selected will leave the organization only after a short period of time.
  • S.C.M.T. AKHIL BHATT 41  Meet the organization legal and social obligation regarding the composition of its workforce Sources of Recruitment; E-Recruiting Perhaps no method has ever had as revolutionary an effect on recruitment practices as the internet. There are respective company websites devoted in some manner to job posing activities. Currently, employers can electronically screen candidate's soft attributes, direct potential hires to a special website for online skill assessment. Conduct background checks over the internet, interview candidates via videoconferencing. And manage the entire process with web-based software. Companies benefit immensely through cost savings. Speed enhancement and worldwide candidate reach which the internet offers. From the job seekers Present Employees Trade Association Advertisement EmploymentExchange Campus recruitment Walk-ins interviews E-Recruiting Employee Referrals Former Employees Previous Applicants
  • S.C.M.T. AKHIL BHATT 42 perspective the internet allows for searches over a broader array of geographic and company posting than was possible before. Problems notwithstanding, both job givers as well as job seekers find internet as the most effective source of recruiting and its usage in the days to come will be all pervasive. SELECTION : ''Selection is the processes of differentiating between applicants in order in identifies and hire those with a greater likelihood of success in a job''. Selection Processs : Telephonic - interview Selection Test Final Interview Reference & Background Analysis Selection Decision Employment Agreement Offer Letter Medical Clarification
  • S.C.M.T. AKHIL BHATT 43 RECRUITMENT & SELECTION HDFC bank's campus strategy is to look at tier one campuses like Bajaj, SP Jain, IMI, SCMHRD, etc and not only IIM'S. They go to 70 business schools, covering far away places like Bhuvaneshwar, Ludhiana, Baroda, etc. Students from these institute understand the psychology of the up country customers and are ambitious about working for private sector banks. They hire B.Com, M.Com, engineers and other graduates, as well as MBA's. Today the requirement is not just globalization, but localization. To achieve this they hire people from various towns and cities. They are even hiring managers from rural background. They has a need to locate people in 500 + branches across 300 cities. I come to know in my observation that bank often don't recruit from IIMs. When I asked about this , then the senior manager says that the bank is able to attract IIM graduates after they have worked for 3 to 5 years of work experience and they have experienced the real world and are likely to be less disillusioned. They take screening very seriously, though they don't use detectives. They do speak to current employers and ask question about performance and integrity. After the completion of recruitment process, HDFC bank starts it selection process according to its schedule to the selection of deserved candidates. TRAINING & DEVELOPMENT Skills requirement is cyclical and depends on stage in which the business is in to. Four years ago. asset skills were relatively rare. Then, as foreign banks got out of many asset businesses, there were lots of people available, changing the market demand and supply. But even now, treasury skills are difficult to find as lots of people are going overseas. There is a dearth of individuals who have relevant skills to manage private and corporate banking. Down the road, there will be a shortage of generalists, as organization starts looking for individuals as solution specialist rather than product specialists. They are swinging between generalists and specialist. They realize they need both and the pricing for both is different. Their induction program - Swagat – covers products and business of the bank. It is focused on developing skills and values. Four years ago they started an internal employee referral program called 'Karo Sifarish'. It has become one of their most preferred channel and
  • S.C.M.T. AKHIL BHATT 44 contributes significantly to talent acquisition. Earlier the focus was 100% on hard skills. Now, soft skills' training has risen from being non-existent to 30% of the training efforts. They organize various programs including outbound experiential learning, Open Spaces Technology, Personal Effectiveness, Leadership Excellence, art of living, Vedanta, etc. Most training programs are delivered in house, except for highly technical ones such as derivatives. The in house training staff comprises of 17 people. People in the smaller cities were missing out as training program was being held in larger metros. They started sending their trainers to the remote locations about 15 months back. the 'Back Pack Trainers' take classes after office hours and this has been much appreciated. The cost impact is minimal and the benefits manifold. They invite guest lecture such as Bruce Carlson, CEO, Managerial grid and Stephen Haines, chairman of strategic management, to spend half a day with they senior management, to spend half a day with they senior management. Bank has a strategic tie-up with IIM Ahmedabad for a 9 day program covering, economics, quantitative, behavioral leadership, marketing, corporate communications, etc. Bank seeds its 30 of vice presidents every year as a part of leadership development plan. BENEFITS TO THE INDIVIDUAL WHICH ULYMATELY BENEFIT TO THE HDFC BANK  Helps the individual in marketing better decisions and effective problem solving  Through training and development, motivational variables of recognition, achievement, growth, responsibility and advancement are internalized.  Aids in encouraging and achieving self-development and self-confidence  Helps a person handle stress, tension, frustration and conflict  Provides information for improving leadership, knowledge, communication skills and attitudes  Increase job satisfaction and recognition  Moves a person towards personal goals while improving interactive skills  Satisfies personal needs of the trainer  Provides the trainee an avenue for growth and a say in his own future
  • S.C.M.T. AKHIL BHATT 45  Develops a sense of growth in learning  Helps a person develop speaking and listening skills  Helps eliminate fear in attempting new tasks BEST PRACTICES The most important thing in HR is to hold the confidence of people. Talent retention is a challenge today. Another challenge is managing expectations of youngsters, who are looking for fast tracking their career and want exposure quickly, they may not be lured by money alone, but the profile that they work for. Bank gives ample opportunity to those who seek job rotation, If they have a new opening, they advertise it internally. Banks philosophy is that it is better to lose a person to another department than to another bank. Their Performance management system is their 'signature' system. They have one of the lowest rates of attrition. Middle management onwards their salaries here are good. Women have been rising up the ranks in the bank. At the junior level, over 33% of the workforce in consumer and retail banking comprises of women. In the senior levels, it is about 12% and in the top management, it is about 6 to 9%. This organization was very cost conscious. Today they have foreign tours, parties as national and regional levels, award nights and outings. As an organization they have started celebrating success.
  • S.C.M.T. AKHIL BHATT 46
  • S.C.M.T. AKHIL BHATT 47 PLUS CURRENT ACCOUNT In today's fast-paced world, business regularly requires to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives the power of inter-city banking with a single account and access to more than cities. From special cheques that get treated at par with local ones in any city where a branch, faster collection of outstation cheques (payable at branch locations), free account to account funds transfer between HDFC Bank accounts to Free inter-city clearing of up to 100 lakhs per month, their priority services have become the benchmark for banking efficiency. Plus Current Account requires to maintain an average quarterly balance of Rs. 100,000. FEATURES AND BENEFITS Free Account to account funds transfer between HDFC Bank accounts Free payment and collection through RTGS. Free payment and collection using NEFT (through Netbanking) Free up to 50 Demand Drafts per month and can be issued from any HDFC Bank Branch Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection & payment transactions (clearing) within HDFC Bank branch network (except Dahej), up to Rs.100 lacs per month. Convenience to withdraw & deposit cash at all our branches* 300 "At Par" cheque leaves free per month. Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM!
  • S.C.M.T. AKHIL BHATT 48 PREMIUM CURRENT ACCOUNT Business needs a partner who can manage your finances while you concentrate on growing your business. You can avail benefits of inter-city banking account with Premium Current Account, that requires an average quarterly balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-city clearing transactions across our network up to Rs.25 Lacs per month. A Current Account with the benefits of accessing your account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM. FEATURES & BENEFITS Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to Rs.25 lacs per month, incremental amount to be charged @ Rs.1.50 per Rs.1,000/-, min Rs.25/- Free NEFT Transactions. Free RTGS collection. RTGS payment @ Rs.100/- per transaction. Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions. Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- and can be issued from any HDFC Bank Branch . 100 "At Par" cheque leaves free per month
  • S.C.M.T. AKHIL BHATT 49 REGULAR CURRENT ACCOUNT A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, you can access your account anytime, anywhere, pay using payable at par cheque or deposit cheque at any HDFC bank branch. It also facilitates FREE NEFT transactions & FREE RTGS collections for faster collections in your account. Regular Current Account requires you to maintain an average quarterly balance of only Rs. 10,000. With a vast network of branches in cities all over the country, and access to a multitude of ATM's, you can keep track of all your transactions anytime. FEATURES & BENEFITS Convenient inter-city banking : Deposit your local cheques in one branch of a city and have it credited to your account at a branch in another city or make payments across HDFC Bank locations using PAP cheque facility at a nominal rate Free payments and collections through NEFT Free RTGS collection. RTGS payment @ Rs.100/- per transaction Inter-city Account to accounts funds transfer between HDFC Bank accounts at a nominal charge of Rs.15/- per transactions Free Demand Drafts (DD) above Rs.100,000/-. Demand drafts up to Rs.50,000/- at flat cost of Rs.40/-. DDs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Free Pay Order (PO) above Rs.100,000/-. Pay Order up to Rs.50,000/- at flat cost of Rs.40/-. POs above Rs.50,000/- & up to Rs.100,000/- at nominal cost of Rs.25/- . Payable at par cheque book at nominal price. Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM!
  • S.C.M.T. AKHIL BHATT 50 REIMBURSEMENT ACCOUNT No more paperwork, no more receipts to keep track of - a hassle-free account that allows you to deposit the reimbursements you receive from your company on a monthly basis. How to Open a Reimbursement Account Procure an Account Opening Document (AOD) from HDFC Bank. (If you have just joined, first request your company to open up a Salary Account for you). Mention your Salary Account number and your Debit Card number on the AOD so that your Debit card can be linked to both, your Salary Account as well as your new Reimbursement Account. Request your company to directly credit cash payments to the Reimbursement Account. FEATURES & BENEFITS Easily distinguish between reimbursements and basic monthly salary. Choose from either your Salary Account or your Reimbursement Account when withdrawing cash from HDFC Bank ATMs. Utilize Net Banking, Phone Banking and Mobile Banking facilities. Receive half-yearly statements of all your reimbursements, thus doing away with filing individual receipts. No need to maintain a minimum balance (Zero Balance Account) Receive a separate cheque book (on request) for your Reimbursement Account. ELIGIBILITY The Reimbursement Account is aimed at salaried employees. As an employed individual, you will need to open an HDFC Bank Salary Account through your company
  • S.C.M.T. AKHIL BHATT 51 RFC DOMESTIC ACCOUNT To manage your foreign currency efficiently. You can choose to set up your account either in US Dollar, Great Britain Pound or Euro. How to Open a RFC Domestic Account Choose the currency in which you wish to operate. Open your account with an initial amount as per the following-US Dollar = 250 | Great Britain Pound = 200 | Euro = 250 and maintain an Average Quarterly Balance of the same amount. FEATURES & BENEFITS Maintains a record of your foreign exchange transactions through monthly statements. Enjoy preferential rates when converting your foreign currency into Indian Rupees. Protects you from losing money due to exchange rate fluctuations. ELIGIBILITY All Resident Indians (Individuals) having either a current or savings account with HDFC Bank can open a RFC Domestic Account. If you are a new customer to the bank, you will first need to open either a current or savings account with HDFC Bank. This is an individual level account and cannot be jointly held with other account holders. Currently Partnership, Proprietorship, HUF and Minors are not eligible to open such accounts.
  • S.C.M.T. AKHIL BHATT 52 ACCOUNT OPERATION Depending on the Foreign Currency in which you wish to operate the account, you will have to initially deposit the following amount: US Dollar = 250 | Great Britain Pound = 200 | Euro = 250 You must maintain an Average Quarterly Balance (AQB) of the same amount. The following is chargeable if you are not able to maintain the AQB.US Dollars = 10 | Great Britain Pound = 7 | Euro = 10
  • S.C.M.T. AKHIL BHATT 53 TRADE CURRENT ACCOUNT In today's changing business requirements, you need to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives you the power of intercity banking with a single account. From special cheques that get treated at par with local ones in any city where we have a branch, to free account to account funds transfer between HDFC Bank accounts, to free inter-city clearing of up to 50 lakhs per month, our priority services have become the benchmark for banking efficiency. Trade Current Account requires you to maintain an average quarterly balance of Rs. 40,000. FEATURES & BENEFITS Free Account to account funds transfer between HDFC Bank accounts. Free RTGS/NEFT Transactions. Free up to 30 Demand Drafts (DD) per month and can be issued from any HDFC Bank Branch. Free up to 30 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch. Free anywhere collection & payment within HDFC Bank branch network (except Dahej), up to Rs.50 lacs per month. Convenience to withdraw & deposit cash at all our branches* 200 "At Par" cheque leaves per free month . Register for InstaAlert service and receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM! HDFC Bank offers you Doorstep Banking*, a channel, which is convenient, secure and hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will arrange to render the services like Cash & Cheque Pickup and Cash Delivery, through a reputed agency.
  • S.C.M.T. AKHIL BHATT 54 FLEXI CURRENT ACCOUNT HDFC Bank Flexi Current Account is the answer to your changing banking needs during peak seasons. With HDFC Bank Flexi Current Account your Cash Deposit and Anywhere Transaction limits are a multiple of the balance you maintain in your Current Account. So, during peak seasons, you get the benefit of higher transaction limits due to the higher average balances maintained in your account. Flexi Current Account requires you to maintain a minimum Average Monthly Balance (AMB) of just Rs. 75,000. FEATURES & BENEFITS Enjoy dynamic free limits on Intercity Payments, Collections & Funds Transfer as well as Cash Deposit at home location branches based on the AMB maintained Pay your vendors on a real time basis using Real Time Gross Settlement (RTGS) available across 23,000 Bank Branches*. What’s more, payments and collections through RTGS are completely free! Make and receive remittances to & from your vendors & customers across 20,000 + Bank Branches of more than 50 Banks through Net Banking using National Electronic Fund Transfer (NEFT), Absolutely Free! Free 40 Demand Drafts & Free 40 Pay Orders issued from any HDFC Bank Branch* Convenience to withdraw and deposit cash at all our branches. Competitive pricing on Demand Drafts drawn on Correspondent Banking Locations as well as Outstation Cheque Collection at HDFC Bank Locations InstaAlert service - receive updates on your account as and when the select transaction happens – all this without visiting the Branch or ATM!
  • S.C.M.T. AKHIL BHATT 55 NET BANKING NetBanking is HDFC Bank's Internet Banking service. Providing up-to-the-second account information, NetBanking lets you manage your account from the comfort of your mouse - anytime, anywhere. FEATURES View Account Balances & Statements Transfer Funds between accounts Create Fixed Deposits Online Request a Demand Draft Pay Bills Order a Cheque Book Request Stop Payment on a Cheque And lots more BENEFITS Internet Banking is the most convenient and powerful way to manage your account. NetBanking is Real Time, giving you up-to-the-second details on your account. It can be accessed anytime, from anywhere, giving you complete control over your finances There are no queues to stand in, or turns to wait for. With NetBanking you are in control.
  • S.C.M.T. AKHIL BHATT 56 INSTA ALERT To receive updates on your account as and when the select transaction happens - all this without visiting the branch or ATM. You can get services from insta alert like, Debit transactions greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Credit in account greater than Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000 Account Balance below Rs. 5,000/ Rs.10, 000/ Rs. 20,000/Rs. 50,000- Weekly account balance Salary Credits* Utility bill payment due Alert ELIGIBILITY To register for InstaAlert, all you need is a Saving or Current account (Sole Proprietorship/Partnership/Other Corporate) with HDFC Bank. Both Resident and Non Resident Indians are eligible. FEES InstaAlert is FREE for all Savings Accounts . Current Accounts are charged at Rs. 50/- per quarter
  • S.C.M.T. AKHIL BHATT 57 EMAIL STATEMENT HDFC Bank introduces Email Statements for all its Savings & Current account holders. You can now receive your statements via email without any delays. You also have the option to maintain the statement on email, print it or save it on a CD. FEATURES & BENEFITS Email Statements are FREE. If you have a savings account you will get monthly Email Statements. If you have a current account you can opt for daily / weekly / monthly Email Statements Physical statements will be discontinued if you opt for Email Statements. Email Statements will follow a staggered cycle, based on the date of account opening. Even if you are registered for hold mails, you can opt for Email Statements. Get information on our new products and mandatory information online. Email Statements will be non-combined statements.
  • S.C.M.T. AKHIL BHATT 58 ATM Global Network HDFC Bank ATMs are a part of the VISA International Plus ATM Network and the MasterCard International Cirrus ATM Network, and can be accessed by all domestic and international MasterCard, Cirrus or Maestro and VISA Electron cardholders for cash withdrawals and balance inquiries. CREDIT CARD PAYMENT - Make payment of your HDFC Bank credit card bill using the ATM.The primary account of your Debit / ATM card will be debited. CHEQUE STATUS ENQUIRY - Get information about status of a cheque issued to your account. REGENERATE INTERNET PIN - Request for re-generation of Internet PIN (IPIN) for your Cust ID 24-HOUR ACCESS TO CASH - Withdraw up to Rs.10,000/- per day on your ATM Card and up to Rs. 15,000 on your Debit Card. The fast cash option saves your time by providing the cash in denominations of Rs.500/-. VIEW ACCOUNT BALANCES & MINI-STATEMENTS - Get details of the last 9 transactions on your account with the mini-statement, along with your balance. ORDER A CHEQUE BOOK / ACCOUNT STATEMENT TRANSFER FUNDS BETWEEN ACCOUNTS - You can also transfer money from one of your accounts to another. Both accounts must be linked to your ATM Card and Customer ID. A maximum of 5 Saving and 5 Current Accounts can be linked.
  • S.C.M.T. AKHIL BHATT 59 REFILL YOUR PREPAID CARD - If you are an HDFC Bank Account holder and a prepaid customer, you can now refill your prepaid card with our Prepaid Refill service. PAY YOUR UTILITY BILLS - Pay your cellular, telephone and electricity bills through the ATM using BillPay, a comprehensive bill payments solution. DEPOSIT CASH OR CHEQUES - You can deposit cash or cheques into your account and the ATM will immediately print a receipt for the same. CHANGE YOUR PIN - You can conveniently change your PIN (given at the time of opening your account) whenever you wish. LEARN ABOUT ALL OUR OTHER PRODUCTS - Simply select a product and all the information you require will be displayed on the screen. TRANSACTION FEES There is no charge for using the card at HDFC Bank ATMs There is no charge for using the card at a Merchant location. However, at Petrol Pumps and Railway stations transaction charges are levied as per Industry practice TRANSACTION CASH WITHDRAWAL BALANCE INQUIRY Domestic Visa/ Plus ATMs and Cirrus ATMs Rs.17.80/- (Plus Taxes) NIL International Visa/ Plus ATMs and Cirrus ATMs Rs. 110/- Rs. 15/-
  • S.C.M.T. AKHIL BHATT 60 VISA MONEY TRANSFER HDFC Bank brings to you Visa Money Transfer - a facility through which you can now transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's NetBanking facility. KEY BENEFITS Transfer funds from your account to any Visa Card (debit or credit) within India. Convenience at its best - No queuing up at Bank branches or waiting for your DD to be delivered at your home/office! Transfer money at "negligible cost'' in much faster, safer & easier way PROCESS FOR REGISTRATION Log on to NetBanking page on hdfcbank.com Enter your Customer ID and Password Go to Third Party Funds Transfer and select Visa Money Transfer Enter Transfer details- Sender and Recipient Information Confirm transaction
  • S.C.M.T. AKHIL BHATT 61 CRADIT CARD Our range of Cards help you meet your financial objectives. So whether you are looking to add to your buying power, conducting cashless shopping, or budgeting your expenditure, you will find a card that suits you. Besides arming you with unmatched spending power, our Credit Cards are designed to meet your unique needs. Choose one that's tailored for you. The best credit cards are available here, including even the online credit cards service Netsafe. CLASSIC CARDS Silver Credit Card Choose Internationally accepted Silver Credit Card and enter a world of privileges and savings. SPECIAL BENEFIT CARDS Value Plus Credit Card A true value card that enables you to avail 5% cash back on all your purchases. Health Plus Credit Card Cashless Mediclaim, discounts at participating hospitals, extra protection for your family. You can rest assured with the Health Plus Credit Card.
  • S.C.M.T. AKHIL BHATT 62 PREMIUM CARDS Gold Credit Card A card to match your premium lifestyle with features like special offers on air and train ticketing, assured 50% discounts on hotel tariffs, and rewards redemption against air miles. Titanium Credit Card Limited Edition card with 24X7 concierge services, zero surcharge on fuel and accelerated two-tier rewards programm. Woman's Gold Card Enjoy the benefits of the best premium card made specifically for women. Apply for HDFC Bank Woman's Gold credit card. Platinum Plus Credit Card India's only Platinum Credit Card with exclusive travel and preferential benefits - a recognition of those who have "arrived in life". Enjoy a world of exclusive privileges on your HDFC Bank Platinum Plus Credit Card. Visa Signature Credit Card A card for the rarest of the rare A card with unique and exclusive privileges that complement your refinement and style. Come experience the world of many contended moments. World MasterCard HDFC Bank presents India's First World MasterCard Credit Card - A very premium offering for the truly elite, a card with tailor-made premium privileges that complement a discerning lifestyle. .
  • S.C.M.T. AKHIL BHATT 63 FOREIGN EXCHANGE AND TRADE SERVICES If you need to deal in foreign currency and keep tabs on exchange rates every now and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner. 1. TRAVELLERS CHEQUES Travellers Cheques are a safe and easy way to protect your money when you travel. You can encash them only when you need to, and only against your signature, unlike cash which can be stolen and misused by anybody, immediately. Loss of Travellers Cheque can be reported anywhere in the world by making a single phone and the pre-fixed amount on the cheques are made refundable. 2. FOREIGN CURRENCY CASH Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc. You could avail of Foreign Currency Cash in USD, GBP, EURO, AUD and CAD from our branches offering Foreign Exchange facilities. 3. FOREIGN CURRENCY DRAFTS  Payment of University fees abroad  Making a gift remittance to a friend or relative  Payment of application fees for various exams like TOEFL , GMAT etc.  Payment for medical treatment abroad  And all other permitted purposes as per the RBI guidelines
  • S.C.M.T. AKHIL BHATT 64 4. CHEQUE DEPOSITS You can directly deposit your foreign currency cheques in to your saving or current account. HDFC Bank will then have the cheques sent for collection and the funds will be credited to your account in Indian Rupees. We accept cheques of various currencies like USD, GBP, Euro, JPY, Australian Dollars, Canadian Dollars, UAE Dirhams, Hong Kong Dollars and Swiss Francs. 5. REMITTANCES HDFC Bank offers you the remittance facilities by which you can to send and receive money to your loved ones. They are categorized depending on your location and the urgency with which you want the money transferred.  Cheque Box - A convenient way to remit money, currently available for NRIs in the US and Europe.  Telegraphic transfer - Remittance of money through our Correspondent Banks. 6. CASH TO MASTER Often, foreign ships travel through India and dock their vessels at various ports / harbors in the country. One of the major requirements during such temporary stays, is that of FCY Cash that has to be made available to the Captain of the Ship for covering Crew wages or for other expenses on board the ship. 7. FOREX SERVICES BRANCH LOCATOR Now foreign exchange facilities can be availed by customers who do not have accounts with us at any of our branches transacting in Foreign Exchange. You can buy FCY Cash, TC's and FCY DD's from any our branch and also encash your TC's and Cash at our branches (available at select branches only).
  • S.C.M.T. AKHIL BHATT 65
  • S.C.M.T. AKHIL BHATT 66 FINDINGS Respondent more give consideration on services which are given by the bank when opining an account in the bank. The respondent are opining current account in the bank mainly for there daily transaction purpose that is 82.22 % There are also few number of respondent who are opening current account for their share market purpose and for the brokerage house purpose. Most of the respondent 64 % are opining their account in Nationalized bank rather than the Private or any other. There are more no of respondent are use their current account for 10000 to 25000 for their cash withdrawal that is 74.44 % and also same cash deposite limit that is 54.44 %. Reason for low transation is that most of the respondent having small or medium size firm or shop. Respondent use insta alert facility at the most that is 73 numbers than other like net banking or phone or mobile banking. There are 86.66 % respondent satisfy with their existing bank and also 76.66 % believe that their existing bank is better than other bank. Most of the respondent gives their preference for the SBI BANK that is 32.22 % for better service criteria for the opining an account. Respondent gives most consideration on service while opining an account in any bank and also it is major criteria for improvement of any bank.
  • S.C.M.T. AKHIL BHATT 67 SUGGESTIONS Its marketing people should be through with knowledge of the product and their features, which will lead to attract more and more number of investors. The number of ATM centers should be increased so that it would be stand as assets for them at the time when they require the attention of the investors. To make focus on the rural side because there is lot of potential in this part where much of concentration is not made rather then having a full flagged branch bank has to develop its mobile branch like that of the other government banks so as to expand its area towards villages and towns. It focuses only on the areas, which are flourished with or where there is abundant of money, here they are lacking behind because per the experience now a days in rural areas also there is lot of potential for this type of bank. In case of charges they should have competitive charges as compared to that of other banks so that the investors who all are forwarding themselves towards other bank will divert their mind and will happily invest with HDFC. In marketing mix especially the promotion part should be developed like opening balance of the account should be less than two thousand five hundred i.e. it should be between thousand to two thousand and they should have to consider the charges of 750 Rs and try to reduce it. Bank should have to give cash pick up, cash delivery and cheque pick up to and from the customers which can also increase their customer base. HDFC bank is not accepting cash deposit from third-party but this facility is provided by other banks like UTI etc. Bank should have to provide this facility. HDFC bank takes charges on transaction of cash which deposit to other branches of it. So bank should have to eliminate these charges as it is not taken by other banks.
  • S.C.M.T. AKHIL BHATT 68 SWOT ANALYSIS OF HDFC BANK STRENGTHS Cutting edge technology, at least by Indian standards Lowest funding costs Best access among Indian banks to capital markets CRISIL assigns AAA rating to HDFC bank on 4/11/2005 which indicates sound position in the sector. HDFC’S distribution network is the biggest strength of the company. HDFC bank is giving low interest rate on housing finance than other private banks. In private sector banking, HDFC bank has the highest number of branches in semi-urban area. The bank has connection with SWIFT international network for easy transfer of money. HDFC has strong management to operate its function. WEAKNESS Scale, some state banks are larger – much larger though sitting targets right now The company has large amount of non-performing loans. The bank has less concentration in rural areas. HDFC bank is taking higher charges on Demand draft, fund Transfer in regular current a/c than other nationalize bank. HDFC bank is not accepting cash deposit from third-party.
  • S.C.M.T. AKHIL BHATT 69 OPPORTUNITY Fast growing Indian economy and massive rise of middle class Rapid expansion of distribution network and retail offerings Low valuation Depreciating dollar The polarized banking scenario, with a large unfulfilled need gap, a bank that offered the best of both worlds had a ready and waiting market. Company also has opportunity from the dissatisfaction of the customers of public sector bank and foreign bank. Company gets benefit by minimizing the remedies of both private bank and foreign bank. THREATS Due to government liberalization and globalization policy, banking sector became open for everybody. So, newer and newer private and foreign firms are opening their branches in India. This has intensified the competition Liquidity in co operative banks also make problem for the private banks. Miracle restructuring of state banks. Either that or they “go nuts” in trying to compete Indian Economic growth peters off.
  • S.C.M.T. AKHIL BHATT 70
  • S.C.M.T. AKHIL BHATT 71 CONCLUSION  From the training, I came to know how to deal with the clients, especially from the marketing point of view. From this one & half month of training I have learnt that practical knowledge is very necessary in any field. My through study of all the organizational departments has also made me aware about how all the departments try to coordinate each other & led the bank towards the peak of profits.  My training at HDFC Bank, Bhavnagar branch, has lead me to learn that how the banks work efficiently although in this competitive era. The training lead me to understand how all the departments of the bank namely operations, marketing, finance and human resource departments work in a coordinated way and how the branch manager tries to join all the different hands with each other.  My training has also taught me how the private sector banks works in this competitive and fast moving environment. The bankers are trying to provide a wide range of products and services and very efficient services to its customers.  The tough and competitive works done by its employees has made me aware about the needs to change with the changing environment to survive in the competitive market. It also gave me an elaborated study of the organizational study of the Bank. My training gave me a good learning and gave me an idea about the practicality of the theories which I have learned as a part of my study syllabus in my M.B.A programme. It also gave me idea how the banks works and are managed by its executives the whole day. The regular and routine decisions taken by the managers of different department so as to let the working go on smoothly without any hindrances. It has also made me aware of regular maintenance of the branch and its employees.
  • S.C.M.T. AKHIL BHATT 72  The professionalism is the most important thing which I noticed. The updated knowledge of not everything but the basic is necessary in this world. It has also gave me an idea how the managers at top level talk and behave very nicely and cordially with the staff right from the watch man, his subordinates to their senior officers along with its customers.  They also try to maintain the good organizational culture and discipline in the organization which is suitable and healthy for all who are working over there and who are directly or indirectly attached to the bank including its customers.  The bank has provided me the learning of how the customers blindly believe on the banks and how the bankers try to retain it patiently.  My learning says that it is not an easy task to remain stand through in this competitive era.  My one and half month experience says that its easy to learn theories but you should know how to apply them practically than only you can put yourself in this environment.
  • S.C.M.T. AKHIL BHATT 73 BIBLIOGRAPHY BOOKS Philip Kotler, “Marketing Management”, 11th edition, Pearson education Asia Publication. MAGAZINE Banking finance, Editor R.G Agrawal and Associates, March 2005 NEWSPAPERS Business standard Economics times WEBSITES www.hdfc.com www.HDFCBANK.COM www.personalfn.com search engine - www.Google.com