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0601008 prospective market potential for corporate

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  • 1. A PROJECT REPORT ON “PROSPECTIVE MARKET POTENTIAL FOR CORPORATE ACCOUNTS OFFERED BY BANKS.” FOR HDFC BANK BY ANUJ SHUKLA UNDER THE GUIDANCE OF “Prof. SUNIL DOKE” SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION (M.B.A.) Bract’s VISHWAKARMA INSTITUTE OF MANAGEMENT KONDHAWA PUNE- 411048
  • 2. ANNEXURE 2
  • 3. Questionnaire 1. Company Name: ____________________________________________ 2. Industry A) Electric and Electronics B) Information Technology C) Automobile D) Pharmaceutical E) Infrastructure F) Telecommunication g) Others: please specify __________________________________ 3. Contact Person: _____________________________________________ 4. Designation: ________ _______________________________________ 5. Contact Number: ____________________________________________ 6. e- Mail id: _________________________________________________ 7. No. of Employees: __________________________________________ 8. Current Banker: _____________________________________________ 9. Total salary uploaded recently/ Avg. Salary of all employees: _________________________________________________________ 10. Special offer provided from existing bank: a) P.L. Rate: __________________________________________ b) H.L Rate: __________________________________________ c) Vehicle loan Rate: ___________________________________ d) Others: ____________________________________________ 3
  • 4. 11. Are you satisfied with existing Banker? a) Yes b) No 12. Do you expect better products and services from your banker? a) Yes b) No 13. How is the Relationship between you & your Bank? a) Excellent b) Good c) Satisfactory d) Unsatisfactory 14. Did you change your banker recently? A) Yes b) No 15. If yes: From - ____________________________________________ To - ____________________________________________ 16. How is Customer Responsiveness of your Bank? a) Good b) Satisfactory C) Unsatisfactory 17. Would you like to shift to other Bank, if provided better product &Services? a) Yes b) No 4
  • 5. 18. Given options, which Bank, you would like to shift? Please mention: ___________________________________________ Date - Place – Thank you Signature 5
  • 6. 6
  • 7. ACKNOWLEDGEMENT “Gratitude is the hardest of emotions to express as one does not find adequate words to convey what one feels.” It’s my pleasant duty to articulate my deep sense of gratitude to my research supervisor Mr. SUNIL DOKE Vishwakarma Institute of Management, Pune University for his constant and sagacious guidance during the course of this investigation. Without his scholarly advice and kind co-operation it would not have been possible for me to complete this project in the present form. I am profoundly grateful to Mr. RELOJ BALAKRISHNAN (CORPORATE SALARY A/C MANAGER) for helping me in collecting the data for the project and for giving me timely guidance and motivation for completing the project work. I extend my respectful thanks to all respondents for providing me the necessary information in spite of there very busy schedule. Last, but not the least, I am really dearth of words to venerate my parents whose steady efforts and motivation helped me to accomplish this work successfully. I assure that all the information provided by me is original and authenticated. (ANUJ SHUKLA) 7
  • 8. TO WHOMSOEVER IT MAY CONCERN This is to certify that Mr. Anuj Shukla is a bonafide student of our institute. He has successfully carried out his summer project on “PROSPECTIVE MARKET POTENTIAL FOR CORPORATE ACCOUNTS OFFERED BY BANKS.” at HDFC BANK This is the original study of Mr Anuj Shukla & important sources of data used by his have been acknowledged in this report. The report is submitted in partial fulfilment of two years full time course on Master of Business Administration (M.B.A) 2006-2008 as per the rules. Prof. Sunil doke Dr. Sharad Joshi (Project Guide) (Director) 8
  • 9. TITTLE INDEX S. NO. TOPIC PAGE NO. 1. Executive Summary 1-3 2. Company Profile 4-13 3. Objective & Scope of the study 14-16 4. Research Methodology 17-19 5. Theoretical Background 20-25 6. Data Analysis & Interpretation 26-56 7. Findings & Conclusions 57-59 8. Suggestions &recommendation 60-61 9. Limitations 62-63 10. Bibliography 64-65 9
  • 10. LIST OF TABLES AND CHARTS Sr. No. Table No. Table/ Chart Page No. 1 01 Market coverage of the competitive banks including HDFC bank Ltd 28-29 2 02 Market potential for various corporate salary account 30-31 3 03 Customers selection parameters of HDFC bank Ltd 32-33 4 04 Customers prime requirement in corporate salary account 34-35 5 05 A A comparative analysis of competitive banks in Regards with facility of net banking 36-37 6 05 B A comparative analysis of competitive banks in Regards with facility of mobile banking 38-39 7 05 C A comparative analysis of competitive banks in Regards with facility of ATM network 40-41 10
  • 11. 8 05 D A comparative analysis of competitive banks in Regards with facility of sales force 42-43 9 06 Key factors that converts a satisfied customer into a loyal customer 44-45 10 07 Table of customer’s preferred bank 46-47 11 08 Customer’s satisfaction with the service provided by HDFC bank ltd 48-49 12 09 Customer satisfaction with account opening criteria 50-51 13 10 The most effective means of communication 52-53 14 11 strengthens and weakness of HDFC bank score card 54-56 11
  • 12. CHAPTER-1 EXECUTIVE SUMMARY 12
  • 13. Executive Summary A new private sector Bank promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector. Certificate of Commencement of Business was received on 10th October 1994 from RBI and the bank was opened by the then finance minister Mr. Manmohan Singh. The Bank transacts both traditional commercial banking as well as investment banking. HDFC, the promoter of the bank has entered into an agreement with National Westminister Bank Pc. and its subsidiaries (Natwest Group) for subscribing 20% of the banks issued capital and providing technical assistance in relation to the banks proposed banking business. The Bank opened its first branch in Ramon House at Church gate, Mumbai on January 16th 1995. Subsidiaries and associate companies of HDFC include HDFC Bank HDFC Mutual Fund, HDFC Standard Life Insurance, HDFC Realty HDFC Chub General Insurance Company Ltd. Intel net Global Services Ltd. and Credit information Bureau (India) Limited. HDFC Bank offers various products for retail customers. It provides the customers with Savings and Current Accounts, Fixed deposits loans and credit and debit cards. It also provides with Investment, payment, Forex and insurance services. HDFC Bank has gone on to win several awards right from the best bank in private sector to best bank in the country. It has received awards from NASSCOM, Economic Times, Business Today, Forbes Global, Business World, Asian Banker’s Excellence award and many others. HDFC Bank is one of the major players in the corporate accounts segment in the country. In PUNE there are three major players in the corporate account segment; viz. Citibank, ICICI Bank and HDFC Bank. PUNE is known as the one of the Information Technology 13
  • 14. hub of India, and therefore these IT equipped organizations and software companies and also some small corporate were the focus of the study. The study was about these organizations and the relationship that they share with the bank that provides them with the corporate accounts for their employees. The study was also to check the willingness of the organizations to go to a new bank if the bank provided them with better products and services. 14
  • 15. CHAPTER-2 COMPANY PROFILE 15
  • 16. HDFC – The Organisation Background HDFC was incorporated in 1977 with the primary objective of meeting a social Need – that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. Business Objectives The primary objective of HDFC is to enhance residential housing stock in the Country through the provision of housing finance in a systematic and professional Manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Organisational Goals HDFC’s main goals are to a) develop close relationships with individual households, b) maintain its position as the premier housing finance institution in the country, c) transform ideas into viable and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the Existing client 16
  • 17. HDFC Bank The Organisation. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations As a Scheduled Commercial Bank on 16th January 1995. In the year 1998 HDFC Bank had tied up with the Ahmadabad Stock Exchange (ASE) to act as its clearing bank . Business Focus HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People Management Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and 17
  • 18. before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength. The management consists of the Chairman Mr Jagdish kapoor and 9 other Directors that assist him in achieving objectives of the bank. i. Mr. Jagdish apoor ii. Mr. Aditya Puri iii. Mr. Keki M. Mistry iv. Mr. Vineet Jain v. Dr. Venkat Rao Gadwal vi. Mrs. Renu Karnad vii. Mr. Arvind Pande viii. Mr. Bobby Parikh ix. Mr. Ranjan Kapur x. Mr.Ashim Samanta 18
  • 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 Services The Bank's target market ranges from large, blue-chip manufacturing companies In the Indian corporate to the small & mid-sized corporate and agri-based businesses. The Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. It 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. 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 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 19
  • 20. provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. Products and Services – HDFC Bank Product range: The following is the product range offered at HDFC: While various deposit products offered by the bank are assigned different names, the deposit products can be categorised broadly into the following types. Definition of major deposit schemes are as under: - 1. Demand deposits: "Demand Deposits" means a deposit received by the bank which is withdrawable on demand like Savings A/c. 2. Term Deposits: "Term Deposit" means a deposit received by the bank for a fixed period withdraw able only after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly Income Certificate etc. 3. Notice Deposit: ''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn on giving at least one complete banking day's notice. 4. Current Account: "Current Account" means a form of Demand Deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit; The account holder gets a personalized cheque book, monthly account statements, and Inter-branch banking. 20
  • 21. 5. Corporate Account: These are more commonly known as Salary Accounts. These are account in HDFC bank with zero balance. These are given to salaried people. These accounts are opened by the employer for the employees to deposit the salary of the employee directly to the account. 6. HDFC Bank Preferred: A preferential Savings Account where in, one is assigned with a dedicated Relationship Manager, who’s you’re the one point contact. One also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rates on loans. 7. Sweep-In Account: A Fixed Deposit linked to one’s Savings Account. So, even if one’s Savings Account runs a bit short, one can issue a cheque (or use ATM Card). The money is automatically swept in to one’s Savings Account from one’s Fixed Deposit Account. The excess funds in the account are directly transferred to the fixed deposit account of the account holder. 8. Super Saver Account: It gives one an overdraft facility up to 75% of one’s fixed deposit. In an emergency, you can access your funds while your fixed deposit continues to earn high interest. 9. HDFC Bank Plus: Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus, a Current Account and then something extra for the HDFC bank customers. 21
  • 22. One can transfer up to Rs. 50 lakh every month at no extra charges, between the four metros. One can also avail cheque clearing between the four metros, get cash delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts, at-par cheque, outstation cheque clearing facility, etc. 10. Demat Account: One can conduct hassle-free transactions on the stock market for one’s shares. The shares held by the customer are protected from damage, loss and theft, by maintaining these shares in electronic form. This account can be accessed through Internet too. 11. Loans: There are a variety of loan schemes offered like personal loans, new car loans, used car loans, loan against shares, consumer loans, two wheeler loans, and home loans. These are available with easy payback in monthly instalments. Loans are sanctioned with easy documentation and quick delivery Services offered Following are the services offered at HDFC bank for its esteemed customers i. Phone Banking: Round the clock automated banking services with 39 phone banking numbers available as customer help-line. A customer can call in any time and get help no matter where he may be without any time barrier. ii. ATM banking: HDFC bank brings 24-hour banking for it customers. Apart from routine transactions, you can also pay your utility bills and transfer funds, at any of our ATMs across the country all year round. 22
  • 23. iii. Mobile Banking: A customer can access his account on mobile phone at no extra air-time cost. One’s banking transactions are just an SMS away iv. Inter-city/Inter-branch Banking: One can access one’s account from any of the HDFC’s 347 branches in 174 cities. Other than that the customer can access their accounts at any of the ATM canters across the country. v. International Debit Card: An ATM Card one can shop with all over the country and in over 140 countries other than India. One can spend any currency depending on the country he/she is in, and have the money in rupees in the account here in India. vi. International Credit Cards: HDFC Bank credit cards whether Silver, Gold or Health plus Credit Cards are accepted worldwide. If one has outstanding balance on one’s other credit card, one can transfer that balance to this card at a lower interest rate. vii. Mutual Funds: Apart from a wide choice of mutual funds to suit any consumer needs, one benefit from expert advice on choosing the right funds based on in-depth market analysis by experts. viii. NRI Services: A comprehensive range backed by unmatched features and world-class service ensures NRIs all the banking support they need. 23
  • 24. ix. Utility Payments made easy: One can pay utility bills like telephone bills, electricity bills and mobile phone bills through our ATMs, Internet, phone or mobile phone. Gone are the days when one stood in long queues and wrote cheque. x. FOREX Facilities: Avail foreign currency exchange, travellers’ cheques, and foreign exchange demand drafts to meet your needs while travelling abroad. xi. Insurance: HDFC bank also brings you Life Insurance and Pension Solutions like Risk Cover Scheme, Savings scheme, Children’s plan and personal plan from HDFC Std. Life Insurance Company Limited. 24
  • 25. CHAPTER-3 OBJECTIVE AND SCOPE OF THE STUDY 25
  • 26. Objective of The Project Learning in the classroom is partial unless it is added with practical experience and training. Training is the most important part of learning in any technical and professional education. Exposing the young prospective executive to the actual business industrial environment not only broaden their horizon but also helps them to effectively grasp the various angels of business. That will beneficial for them when they actually come to occupy the execrative position. It is an aim that practical training of small duration obviously had been made valuable and indispensable of the MBA degree. Hence the objective of the project is: 1. To get the practical knowledge about the market research. 2. To find prospective customer for the HDFC bank and to find the product potential in the market. 3. To make customer informative about the technology offered. 4. To make recommendation and suggestion about the scope and Feasibility for HDFC product. Objective of study Primary: - 1. Analysis and evaluation of customer s satisfaction with respect to product performance. 2. To determine the main characteristic which customers look upon while purchasing and selecting the product? 3. To determine the other brand those are competing with the same product rang. 26
  • 27. Secondary: - 1. Service level and channel associate approach. 2. To find the level of brand awareness. 3. To find out the company market share. Scope of study i. Special area to be focused for increasing the sales and for sales promotion activities to be adopted. ii. To make product more innovative and easy to understand iii. For providing maximum satisfaction to the customer by knowing their needs and requirement about product and services. iv. Steps to be taken at present for survival and facing the competition with other equivalent product. v. Continues improvement and for better management. vi. Maintaining good relation between manager and customer Sample Size The sample size of the project is 550 corporate clients. 27
  • 28. CHAPTER-4 RESEARCH METHODOLOGY 28
  • 29. Methodology of the study Research Methodology Research as a mean of getting knowledge can be carried out either arbitrarily or in a systematic fashion. It is a purposive investigation. Research may be a mean to know the small change and time forced upon us as individual or as a society. Research as process involves defining the problem, formulating the hypothesis, organizing and evaluating the data, deriving inference and conclusion after careful testing. Data Collection As data is required for any research activity, it is collected (for those Both the Primary and Secondary) as follows: Primary Data: I have collected this data through discussion with officers Secondary Data: This data is collected from different sources available consolidated From book publication reports, websites where used as a source of secondary data in order to do this project and to collect necessary data. I have used the manuals and leaflets of the bank Rationality of the study i. The customer s satisfaction survey gives the company the clear idea of the weakness and strength that will help the company in deciding their future strength. ii. It will give update database of its prospective customers in Pune Region. 29
  • 30. iii. Sales process will be possible to improve the basis of information received through study. iv. It will help the company to know the science of the customers in the market. v. It will provide company information about level of satisfaction among customers for the after sales service and make company possible to improve in the weak area and also to help capitalize on weak area of competitors. 30
  • 31. CHAPTER-5 THEORETICAL BACKGROUND 31
  • 32. Corporate Accounts Introduction When an organization opens a HDFC Bank Corporate Salary Account it not only gives its employees more than just an account. They get a host of e-Age Banking facilities such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card (valid in 140 countries) and Bill Pay. And along with that free Demand Drafts and preferential interest rates on Personal Loans. An organization will be giving its employees an account that makes banking a pleasure for them. The organization would have also saved time and money by directly crediting their employee salaries nation-wide at one go. Advantages To the Employer HDFC Bank Salary Accounts benefits the employer by :- i. Reduces your paperwork. ii. Saves remittance costs. iii. Employees receive instant credit of salaries. iv. More convenient than ECS. Advantages to the Employees i. Zero Balance Account The employee does not have to maintain any minimum balance in the account. 32
  • 33. ii. Free Debit Card The employees do not have to pay the annual fee for their Debit Cards. Additionally, the first year annual fee is also waived for one additional account holder, as in the case of a savings account holder. This plus all the other Debit Card benefits are available to your employees. iii. Free Inter-city/Branch banking There is no cap on the transaction size for inter-branch/city transactions for your employees. The fees associated are also waived. They can perform the following transactions: • Cash withdrawal: Customer presence required. • Cash deposit: Customer presence required • DD/MC issuance: Customer presence required • Cheque deposit: Customer presence not required • Any other written instructions: Customer presence not required • This facility is not extended to premature withdrawal of Fixed Deposits iv. Free Demand Drafts Your employees can avail of free Demand Drafts up to Rs 25,000 issued at any of the HDFC Bank branch locations. This offer can be availed of through Phone Banking or Net Banking or at the branch. The amount of the Demand Draft will be debited to the salary account. Please note: DDs drawn on correspondent bank will attract full charges v. Cash delivery If there isn't a HDFC Bank that is easily accessible from your office, we will deliver cash against cheques from the employees once a week subject to a maximum of twice a week. Maximum amount of withdrawal per employee is Rs 33
  • 34. 10,000, minimum Rs 1,000/-. This service is currently available in Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Pune and Ahmadabad. vi. Overdraft facility Employees with a salary account are eligible for this facility: Employees with a "Net Monthly Take Home Salary" of a minimum of Rs.10,000 can avail a clean overdraft facility on the savings account @ 18%. Please note: The employee has to sign an indemnity bond and give a copy of the latest salary slip. vii. Discounts on loans Your employees can avail of the benefits of preferential pricing on our asset products, namely Loans against Securities, Car Loans and Personal Loans All loans at discretion of the bank. 34
  • 35. Salary Accounts – How it all works The banks approach the corporate houses and present them with the various salary products that are offered by the bank. The organizations then, choose the bank and the product from the various options that are offered to them. These organizations have an association with one of the banks providing salary products Types: There are various types of Salary Accounts that are offered by HDFC Bank for different class of people in the society. Keeping the need of the customer in mind, various types of accounts are designed and offered to the corporate that choose the salary account for their employees. i. Payroll The HDFC Bank payroll account offers flexibility as well as access to premium features like Bill Pay, Insta Alert at a nominal charge. One can also access their account anytime by phone or through the Internet and pay for their utility bills at a nominal charge. ii. Classic The Classic Salary account is a Zero Balance Account which earns the account holder interest on his savings from salary at a competitive rate fixed by the bank from time to time. There is no fee applicable for branch transactions and he receives banking statements once every six months. 35
  • 36. iii. Regular The Regular account is a Zero Balance account and comes with a Free International Debit Card, facilities like free inter-city/branch banking and Safe Deposit lockers (subject to availability).s iv. Preium A power-packed account for successful salaried professionals, the Premium Salary account comes with a free International Debit Card and add-on Debit card for life, with the option of choosing between a Silver or Gold credit card at preferential rates. v. Defence Salary Account This account is designed specifically for Defence personnel’s. The Account is a Zero Balance Account and comes with a free International Debit Card. 36
  • 37. CHAPTER-6 DATA ANALYSIS AND INTERPRETATION 37
  • 38. DATA ANALYSIS INTRODUCUION Data analysis and interpretation plays an important role in turning quantity of paper into defensible, actionable sets of conclusions and reports. It is actually a set of method and technique that can be used to obtain information and insights from data. It can lead the researcher to information and insights that would not be available. It can help to avoid erroneous judgments and conclusion. It can provide a background to help interpret and understand analysis conducted by others. Knowledge of power of data analysis techniques can constructively influence research objectives and research design. 38
  • 39. DATA TABLE NO 1 MARKET COVERAGE OF THE COMPETITIVE BANKS INCLUDING HDFC BANK LTD BANK NAME NO OF RESPONDENTS PERCENTAGE OF RESPONDENTS HDFC 22 22% ICICI 25 25% UTI 14 14% CO-OPERATIVES 9 9% OTHERS 8 8% POTENTIAL MARKET 22 22% TOTAL 100 100% INTERPRETATION i. ICICI Bank Ltd scores top position in market coverage of corporate salary account in Pune Region ii. HDFC Bank gets a second position iii. The amount of potential market is as high as the market share of HDFC Bank i.e. 22% 39
  • 40. GRAPH NO 1 MARKET COVERAGE OF THE COMPETITIVE BANKS ICICI 25% HDFC 22% UTI 14% CO OPERATIV ES 9% OTHERS 8% POTENTIA L MARKET 22% ICICI HDFC UTI CO OPERATIVES OTHERS POTENTIAL MARKET 40
  • 41. TABLE NO 2 MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY ACCOUNT Types of accounts No of Companies Percentage of companies Premium Account 26 26% Regular Account 74 74% Total 100 100% INTERPRETATION i. Out of the companies visited, companies with a average salary of Rs.25000 and No of Employee 15 are 26%. ii. Out of the companies visited, companies with a average salary of Rs.15000 and No of Employee 15 are 74%. 41
  • 42. GRAPH NO 2 MARKET POTENTIAL FOR VARIOUS CORPORATE SALARY ACCOUNT PREMIUM 26% REGULAR 74% PREMIUM REGULAR 42
  • 43. TABLE NO 3 CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD PARAMETERS OF BANK SELECTION PERCENTAGE OF CUSTOMER CHOICE BRAND NAME 23.60% PERVIOUS EXPERIENCE 22.40% RELIABILITY 22.10% EASY ACCESS 19.80% COMPANY POLICY 14.10% INTERPRETATION i. Brand Name of a bank has the greatest impact on the customer in regards with Bank Selection Parameters. (24%) ii. Pervious Experience and Reliability about the bank get equal score of 22% each. iii. Followed by Easy Access (20%) iv. Company (Applicant company) policy (14%) 43
  • 44. GRAPH NO 3 CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD 24% 22% 20% 20% 14% BRAND NAME PREVIOUS EXPERIENCE RELIABILITY EASYACCESS COMPANYPOLICY 44
  • 45. TABLE NO 4 CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY ACCOUNT BASIC FACILITIES IN CS ACCOUNT PERCENTAGE OF RESPONDENTS ZERO BALANCE 100% ATM NETWORK 85% NET BANKING 68% BILL PAYMENT 34% INTERNATIONAL DEBIT CARD 45% INTERPRETATION i. Zero Balance facility is a must have feature of salary account (100%) ii. ATM Network facility get a second position with 85% of the respondents opting for this option iii. Net Banking facility is mostly opted by those employees who are from the IT or Software Companies due to the nature of work culture and easy access of net. (68%) iv. International Debit Card facility is opted fro only when its given as an additional feature and free of any hidden cost. This facility is generally opted for the employees who are at a higher position. (45%) v. Bill Payment facility is the least opted facility as it comes with some amount of extra charges.(34%) GRAPH NO 4 45
  • 46. CUSTOMERS PRIME REQUIREMENT IN CORPORATE SALARY ACCOUNT 100% 85% 68% 34% 45% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ZERO BALANCE ATM NETWORK NET BANKING BILL PAYMENT INTERNATIONAL DEBIT CARD 46
  • 47. TABLE NO 5.A A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF NET BANKING INTERPRETATION i. Net Banking facility of HDFC Bank is rated as excellent by a majority of respondents (73%). ii. Followed by ICICI Bank,(68%) UTI Bank(64%) iii. Other Banks such as Kotak Mahindra, Bank of Maharashtra, Bank of Baroda, etc are rated as good by 36% of the respondents. iv. Co-Operative Banks are rated as satisfactory by 24% of the respondents. v. Co-Operatives and other banks are rated as unsatisfactory by 38% and 27% respectively. vi. This dissatisfaction is largely due to lack of technical advancements and capital. GRAPH NO 5.A BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY HDFC 73 8 12 5 2 ICICI 68 13 8 6 5 UTI 64 14 7 8 7 CO- OPERATIVES 14 9 15 24 38 OTHERS 19 36 11 7 27 47
  • 48. A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF NET BANKING 0 73 68 64 14 19 0 8 13 14 9 36 0 12 8 7 15 11 0 5 6 8 24 7 0 2 5 7 38 27 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%BA N KS H D FC IC IC I UTI CO -O P O THER S Series1 Series2 Series3 Series4 Series5 Series6 48
  • 49. TABLE NO 5.B A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF MOBILE BANKING BANK EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTIORY HDFC 9 13 27 36 15 ICICI 13 29 27 19 12 UTI 12 18 29 35 6 CO- OPERATIVES 5 14 24 40 17 OTHERS 12 19 25 30 14 INTERPRETATION i. ICICI Bank is rated as the excellent in facility of Phone and Mobile Banking in comparison with the rest of the banks (13%) ii. For HDFC Bank 27% of the respondents rated it as fair and 36% rated it as satisfactory. This is mainly influenced by the perception about the bank and previous encounter iii. The services of all the banks are rated as fair by approximately 25%+ respondents for each bank. GRAPH NO 5.B A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF MOBILE BANKING 49
  • 50. 9 13 27 36 15 13 29 27 19 12 12 18 29 35 6 5 14 24 40 17 12 19 25 30 14 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HDFC ICICI UTI CO- OPERATIVES OTHERS excellent good fair satisfactory unsatisfactory 50
  • 51. TABLE NO 5.C A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF ATM NETWORK INTERPRETATION i. ATM Network of ICICI Bank is rated excellent (80%). Followed by HDFC Bank (75%). ii. UTI Bank gets third position. (70%) iii. Co-Operative Banks are rated as fair by 30% of the respondents and satisfactory by 31% of the respondents. iv. Other Banks are rated as excellent by 33% of the respondents and fair by 27% of the respondents. v. 13% respondents rated co-operative banks as unsatisfactory. BANK EXCELLE NT GOOD FAIR SATISFAC TORY UNSATISFACTIOR Y HDFC 75 9 5 7 4 ICICI 80 8 5 3 4 UTI 70 6 4 12 8 CO- OPERATIVES 15 11 30 31 13 OTHERS 33 19 27 10 11 51
  • 52. GRAPH NO 5.C A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF ATM NETWORK 75 80 70 15 33 9 8 6 11 19 5 5 4 30 27 7 3 12 31 10 4 4 8 13 11 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HDFC ICICI UTI CO-OP OTHERS EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTORY 52
  • 53. TABLE NO 5.D A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF SALES FORCE BANK EXCELLENT GOOD FAIR SATISFA CTORY UNSATISFA CTIORY HDFC 45 8 22 7 18 ICICI 53 8 19 9 11 UTI 47 16 26 11 10 CO- OPERATIVES 35 11 31 16 7 OTHERS 29 18 21 21 11 INTERPREATATION i. The sales executives of any Bank are the biggest source of communication. As they are the back bone of any organization. ii. The networking and customer contact is best done by ICICI Bank’s followed by UTI Bank and HDFC Bank. 53
  • 54. GRAPH NO 5.D A COMPARATIVE ANALYSIS OF COMPETITIVE BANKS IN REGARDS WITH FACILITY OF SALES FORCE 45 53 47 35 29 8 8 6 11 18 22 19 26 31 21 7 9 11 16 21 18 11 10 7 11 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HDFC ICICI UTI CO-OP OTHERS EXCELLENT GOOD FAIR SATISFACTORY UNSATISFACTORY 54
  • 55. TABLE NO 6 KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A LOYAL CUSTOMER Elements No of Respondents % of Respondents Personal Touch 75 75% Ensuring Customer Security 37.5 37.5% Offering Customized Products 37.5 37.5% Innovative Products 37.5 37.5% Better Service Pre &Post Banking 93.75 93.75% INTERPRETATION Customer Retention and Customer Satisfaction are inexorably inter - linked. While consumers may be happy to make payments and interact with their bank through convenient – and cheaper – banking channels, they still expect high standards of service. A consistent service reflects the bank’s brand and image across all channels. 93.75 per cent of respondent banks informed that superior service pre and post banking has been one of the essential factors rated high by their customers. 75 per cent of respondent banks felt that Personal touch in the dealings has helped them in winning customers. 55
  • 56. GRAPH NO 6 KEY FACTORS THAT CONVERTS A SATISFIED CUSTOMER INTO A LOYAL CUSTOMER Better service pre and post banking 93.75% Being a leader in offering innovative products from time from time 37.5% Offering Customized Products 37.5% Ensuring Customer Security 37.5% Personal Touch 75% 56
  • 57. TABLE NO 7 TABLE OF CUSTOMER’S PREFERRED BANK BANKS % OF RESPONDENTS HDFC BANK 24% ICICI BANK 29% UIT BANK 10% CO-OPERATIVE BANKS 13% BANK OF MAHARASHTRA 10% KOTAK MAHINDRA 8% INTERPRETATION i. ICICI Bank is the most preferred bank in the market by the customer. (29%) ii. HDFC Bank is the second most preferred bank. (24%) iii. Co-operative Banks are the third most preferred banks. (13%) iv. UTI Bank and Bank of Maharashtra on position No. 4.with 10% each. v. Kotak Mahindra Bank is the least preferred bank as per the respondents in regard with Corporate Salary Account. GRAPH NO 7 CUSTOMER’S PREFERRED BANK 57
  • 58. PERCENTAGE OF RESPONDENTS 24 29 10 13 10 8 HDFC ICICI UTI CO-OP BANKOF MAHARASHTR A KOTAK MAHINDRA PERCENTAGE OF ESPONDENTS 58
  • 59. TABLE NO 8 CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC BANK LTD Elements % of Respondents Yes 83% No 17% INTERPRETATION i. 83% of the respondents where happy with the service quality of offered by HDFC Bank 59
  • 60. GRAPH NO 8 CUSTOMER’S SATISFACTION WITH THE SERVICE PROVIDED BY HDFC BANK LTD % OF RESPONDENTS 83% 17% YES NO 60
  • 61. TABLE NO 9 CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA CRITERIA % OF RESPONDENTS Yes 26% No 74% INETRPREATATION ii. Even though 74% of the respondents are unsatisfied with the documentation in the account opening procedure however in terms with Global Banking HDFC Bank is one of the major contributor for putting India on No.1 position in regards with Regulatory Systems. 61
  • 62. GRAPH NO 9 CUSTOMER SATISFACTION WITH ACCOUNT OPENING CRITERIA % OF RESPONDENTS YES 26% NO 74% YES NO 62
  • 63. TABLE NO 10 THE MOST EFFECTIVE MEANS OF COMMUNICATION Elements % Of Respondents SALES FORCE 53% TELE MARKETING 15.8% WORD OF MOUTH 11.3% NEWSPAPER 9.7% TV 6.2% PUBLIC RELATION 4% INTERPRETATION i. The banks employees are rated as the most effective source of communication (53%) ii. Tele marketing is second most effective means of communication (15.8%) iii. Peers group and positive as well as negative word of mouth publicity is an effective source of communication. (11.3%) iv. With Newspapers, Television, and Public Relations following each other. 63
  • 64. GRAPH NO 10 THE MOST EFFECTIVE MEANS OF COMMUNICATION 53 15.8 11.3 9.7 6.2 4 0 10 20 30 40 50 60 SALES FORCE TELE MARKETING WORD OF MOUTH NEWSPAPER TV PUBLIC RELATION % OF RESPONDENTS % OF RESPONDENTS 64
  • 65. TABLE NO 11 STRENGTHEENS AND WEEKNESS OF HDFC BANK SCORE CARD Parameters Score Regulatory System 5 Technology Advancements 6 Credit Quality 5 Diversification of market beyond big cities 4 Size of Bank 5 Banking Infrastructure 4 Labor Inflexibilities 3 INTERPRETATION i. The Indian banking sector has scored over its counterparts not only in developing but also even in developed world such as Japan, Singapore and Australia on significant parameters. ii. Technology has given birth to a new era in banking. Technology can be the key differentiator between two banks and a major factor to attain competitive edge. Though slow in the beginning, HDFC Bank seem to have paced up in adoption of advanced technology. iii. While enhancement of credit is an important function of the Banks, it is equally imperative to keep a check on the quality of credit to ensure good health of the banking system and effective functioning of market for distressed assets. 65
  • 66. iv. One of the key fundamentals of banking sector – Credit Quality too has been rated fairly well in comparison with other Banks. v. Even though HDFC Bank is a big player in Indian Banking sector still it is not yet penetrated in the rural areas of India to a very great extend. vi. HDFC Bank as earlier said is a large player in the Indian Banking Sector, however when it comes to banking infrastructure it is one of its weak. And so labour inflexibilities. 66
  • 67. GRAPH NO 11 STRENGTHES AND WEEKNESS OF HDFC BANK SCORE CARD STRENGTHS AND WEAKNESS OF HDFC BANK Score 5 6 5 4 5 4 3 0 2 4 6 8 Regulatory Systems Technology Advancement Credit Quality Diversification of market beyond big cities Size of Bank Banking Infrastructure Labor Inflexibilities STRENGTHS AND WEAKNESS OF HDFC BANK Score 67
  • 68. CHAPTER-7 FINDINGS & CONCLUSIONS 68
  • 69. FINDINGS As stated earlier there are main two types of consumers in this field and they are: 1 Small Business consumers 2. Big Business consumers WAYS TO COMPETE (FINDINGS) Now all are competing with each other on the basis of different strategies or combination of one or more strategies. But if we try to summarize the strategies then we will find that most of these are common and including all these are not more than the followings: - i. QUALITY SERVICE: Quality Service is the most important strategy used to compete in this market because customers is no more centric only in India, they need better quality in the service provided to them. The policy of ONE PIONT CONTACT should be followed by HDFC Bank. ii. ADVERTISEMENTS: Only ICICI BANK and UTI BANK are countering HDFC BANK in market through advertisements. Others are not even bothering on doing advertisements. iii. PERFORMANCE: HDFC Bank lacks on the prompt action where as others are a bit ahead in this line. HDFC Bank takes nearly 8 10 days to open a salary account for tie customer company. This is mainly because HDFC bank follows the guidelines of RBI and 69
  • 70. the required number of documents for account opening in a bit regress. But when it comes to service performance customers are happy. iv. DIFFERENT SCHEMES: Some additional facilities should be provided to large companies in order increase Brand Value as well as bring customer loyalty. v. POTENTIAL MARKET: The current account holders should be contacted as there is less amount of documentation and lesser time is spend in convincing the customer about HDFC Bank firstly and secondly about Salary Account. Conclusions MARKET FEEDBACK ABOUT HDFC BANKS CORPORATE SALARY ACCOUNT (CONCLUSION): As a summer trainee in HDFC BANK, I would like to conclude my project work on Marketing Strategies of HDFC Bank India Ltd. It was really very interesting interacting with customers and have an insight into HDFC Banks brand image in their minds. The main aim was to know the factors & attributes of brand, and services provided by it, which companies look for in Corporate Salary Account. From the survey, overall conclusion was that people are quite satisfied with HDFC Banks Corporate Salary Account services. 70
  • 71. CHAPTER-8 SUGGESTIONS & RECOMMENDATIONS 71
  • 72. SUGGESTIONS After talking to customers and staffs I suggest the following points to keep customers happy QUICK SERVICE: - HDFC Bank must try to provide services as early as possible and reduce the time gap between date promised and work performed so that customer must not get irritated. PROPER CO-ORDINATION: - Staffs of HDFC are still not comfortable with the queries of customers about their new service, as they sometimes feel dumb to some of the questions. They must get proper updating from the head office related to any changes or problems faced by the staffs. PROPER ORGANISATION OF WORK: - HDFC Bank needs to be more organized in terms with area division among the various internal sales teams. The potential market should be followed up in order to get good sales number. QUALITY SERVICE: - HDFC Bank customers generally have following complains: Number of days has passed yet my account opening process is under process I have not receive my personalized cheque book as it has been more than a month after applying for it I have made a number of complaints but no one is hearing HDFC Bank has to resolve them as early as possible because it affects the service quality very badly. 72
  • 73. CHAPTER-9 LIMITATIONS OF THE STUDY 73
  • 74. LIMITATIONS i. AREA LIMITATION: The study was limited to Pune city only. Hence findings may differ from other parts of India where I have not visited ii. NON-RESPONSE ERROR: It is almost impossible to obtain data from each & every respondent covered in sample. There are always some respondents who refuse to give information iii. LIMITED SOURCE OF DATA COLLECTION: Sources of data for collection of secondary data were limited iv. TIME CONSTRAINT: There was time constraint to this project. The project has to be completed within 2 months. v. BUSY RESPONDENT: Many times respondents were so busy that they didn’t t give reply. There were biased replies also. vi. OTHER REASONS: There were heavy rains during the period of survey. So there was many times problem in conducting survey & transportation. 74
  • 75. CHAPTER-10 BIBLIOGRAPHY 75
  • 76. Bibliography i. The Economic Times ii. The Times of India iii. www.economictimes.com iv. www.hdfc.com v. www.hdcbank.com vi. www.indiabulls.com vii. www.icicibank.com viii. http://www.citibank.com/us/d.htm ix. HDFC Annual Report 2006 x. 10 Years Highlights – (HDFC Bank website – Acrobat File) 76