All about product offered by Hdfc bank

1. TOPIC
Marketing plan
Sector-Banking , Company-HDFC Bank ltd , Product- Credit Card
SUBMITTED TO
PROFF G.PRAVIN
SUBMITTED BY
RISHIKA GUPTA
DM20C37
1

2. 2

3. Executive Summary
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It has a base of 1,04,154
permanent employees as of 30 June 2019. HDFC Bank is India’s largest private sector bank by assets. It is the largest bank in India by
market capitalization as of March 2020. As of 30 June 2019, the Bank's distribution network was at 5500 branches across 2,764 cities. The
bank also installed 430,000 POS terminals and issued 23570,000 debit cards and 12 million credit cards in FY 2017. HDFC Bank provides a
number of products and services including wholesale banking, retail banking, treasury, auto loans, two-wheeler loans, personal loans,
loans against property, consumer durable loan, lifestyle loan and credit cards. Along with this various digital products are digitization and
Smart BUY. In March 2020, HDFC (parent company of HDFC BANK) made an investment of ₹1,000 crores in Yes bank. As per the scheme of
reconstruction of Yes Bank, 75% of the total investment by the corporation would be locked in for three years. On 14 March, Yes Bank
allotted 100 crore shares of the face value of ₹2 each for consideration of ₹10 per share (including ₹8 premium) to the Corporation
aggregating to 7.97 percent of the post issue equity share capital of Yes bank.
Credit cards are fundamentally different from the others payment methods in that they involve extending credit rather than drawing on an
existing store funds. Banks in conjunction with credit card association such as Visa and Master card, issue general purpose credit cards
department stores also issues credit card to be used for purchases at that particular store. Like Electronic Fund Transfer, payment by credit
card is not anonymous. Since paying with a credit card does not involve a store of Funds, deposit insurance and reserve requirements are
not directly relevant. The bank that issues the card is label and thus merchants paid if the cardholders default .If the issuing bank fails, the
credit card association guarantees payment to merchants with outstanding transaction.
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4. Chapter -1- BANKING SECTOR REPORT
4

5. Modern banking in India originated in the last decade of the 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770
and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.
The largest and the oldest bank which is still in existence is the State Bank of India (S.B.I). It originated and started working as the Bank of Calcutta in mid-
June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks founded by a presidency government, the other two were
the Bank of Bombay in 1840 and the Bank of Madras in 1843. The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's
independence, became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until
the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.
The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The scheduled banks are those included under the 2nd Schedule of
the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalized banks; State Bank of India and its associates; Regional Rural
Banks (RRBs); foreign banks; and other Indian private sector banks. The SBI has merged its Associate banks into itself to create the largest Bank in India on 01
April 2017. With this merger SBI has a global ranking of 236 on Fortune 500 index. The term commercial banks refers to both scheduled and non-scheduled
commercial banks regulated under the Banking Regulation Act, 1949.
The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1,542 urban cooperative
banks and 94,384 rural cooperative banks in addition to cooperative credit institutions. As on May 31, 2020, total number of ATMs in India increased to
210,415 and is expected to reach 407,000 by 2021.
According to Reserve Bank of India (RBI), India’s foreign exchange reserve reached US$ 534.56 billion as on July 31, 2020. According to RBI, bank credit and
deposits stood at Rs 102.19 lakh crore (US$ 1.45 trillion) and Rs 140.20 lakh crore (US4 1.98 trillion), respectively, in the fortnight ending July 31, 2020
Indian Banking Sector
5

6. EVOLUTION OF THE INDIAN BANKINGSECTOR
 Closed market
 State-owned Imperial Bank
of India was the only bank
existing
 Imperial Bank expanded
its network to 480
branches
 In order to increase
penetration in rural areas,
Imperial Bank was
converted into State Bank
of India
 In 2003, Kotak Mahindra Finance Ltd received a
banking licensefrom RBI and became the first
NBFC to be converted into a bank
 In 2009, the Government removed the Banking
Cash Transaction Tax which was introduced in
2005
 RBI was established as the central
bank of country
 Quasi central banking role of
Imperial Bank came to an end
 Nationalisation of 14 large commercial
banks in 1969 & six more banks in1980
 Entry of private players such as
ICICI intensifying the
competition
 Gradual technology upgradation in PSU
banks
 As per Union Budget 2019-20, provision
coverage ratio of banks reached highest
in 7 years.
 According to RBI, India’s foreign exchange
reserve reached US$ 534.56 billion as on
July 31, 2020.
1921
6 For updated information, please
1935 1956-2000
1936-1955
2018
onwards
2000
onwards
6

7. THE STRUCTURE OF INDIAN BANKING SECTOR
Reserve Bank of India
Cooperative credit institutions
Public sector banks (18)
Private sector banks (22)
Foreign banks (46)
State-level institutions
Other institutions
Regional Rural Banks (RRB)
(53)
Urban cooperative banks
(1,542)
Rural cooperative banks
(94,384)
All-India financial institutions
Scheduled commercial banks
(SCBs) (as of September 2019)
Banks Financial institutions
7

8. 0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21
GROWTH IN CREDIT OFF-TAKE (US$
BILLION)
 Credit off-take has been surging ahead over the past decade, aided
by strong economic growth, rising disposable incomes, increasing
consumerism and easier access to credit.
 During FY16-FY20, credit off-take grew at a CAGR of 13.93 per cent.
As of FY20, total credit extended surged to US$ 1,936.29 billion.
 Demand has grown for both corporate and retail loans. Services, real
estate, consumer durables and agriculture allied sectors have led the
growth in credit.
 According to Reserve Bank of India (RBI), bank credit and deposits
stood at Rs 102.19 lakh crore (US$ 1.45 trillion) and Rs 140.20 lakh
crore (US4 1.98 trillion), respectively, in the fortnight ending July 31,
2020.
 Credit to non-food industries stood at Rs 101.33 lakh crore (US$
1.43 trillion) on July 31, 2020.
GROWTH OF INDIAN BANKING SECTOR- 1
8

9. 1,466.47
1,599.34
1,781.12
1,866.22
1,698.97
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
1,800.00
2,000.00
FY 16 FY 17 FY 18 FY 19 FY 20
GROWTYH IN DEPOSIT (US$ BILLION)
GROWTH INDIAN BANKING SECTOR-2
 Access to banking system has also improved over the years due to
persistent effort from Government to promote banking technology and
promote expansion in unbanked and non-metropolitanregions.
 At the same time, India’s banking sector has remained stable despite
global upheavals, thereby retaining public confidence over the years.
 Strong growth in savings amid rising disposable income levels are the
major factors influencing deposit growth.
 Bank accounts opened under the Government’s flagship financial inclusion
drive Pradhan Mantri Jan Dhan Yojana (PMJDY) reached
40.05 crore and deposits in Jan Dham bank accounts stood at more
than Rs 1.30 lakh crore (US$ 18.44 billion).
 As of June 19, 2020, deposits growth of 11 per cent was marginally
lower compared to growth of 11.3 per cent in the previous fortnight
 Significant growth possible in private sector lending as credit disbursal by
private sector banks is expected to increase.
 Market share of private banks in advances is expected to increase from
27.7 per cent in 2017-18 to nearly 35 per cent in 2019-20
9

10. Recent TRENDS IN THE BANKING INDUSTRY SECTOR
10

11. Change in banking industry due to digitization
India’s Dding Forecast (US$billion)
46
58
75
110
150
200
270
350
Digital influence in the Indian banking sector has been growing
faster due to the rising digital footprint.
India’s digital lending stood at US$ 110 billion in FY19.
Digital lending to micro, small and medium enterprises (MSMEs)
in India is expected to reach US$ 100 billion by 2023
0
100
200
300
400
FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23
INDIA’S DIGITAL LENDING FORECAST (US$
billion)
11

12. Of 600,000 village habitations in India, only 5 per cent have a
commercial bank branch.
By May 2020, number of outstanding debit and credit
cards were 835.34 million and 57.17 million,
respectively
51.4 per cent of nearly 89.3 million farm households
do not have access to any credit, either from
institutional or non- institutional sources.
Agriculture requires timely credit to enable smooth
functioning. However, only one-eighth of farm
households avail bank credit.
Local money-lending practices involve interest rates well
above 30 per cent therefore making bank credit a compelling
alternative.
37.5 39.9 42.7 46.1 48.3 50.3
56.66 59.5 58.21
2011 2012 2013 2014 2015 2016 2017 2018 2019
SOARING RURAL OF
MOBILE BANKING (IN PER
CENT)
Column1
Banking penetration in rural India picking pace
12

13. Mobile banking
Mobile banking allows customers
to avail banking services on the
move through their mobile phones.
The growth of mobile banking could
impact the banking sector
significantly.
Mobile banking is especially critical
for countries like India as it
promises to provide an opportunity
to provide banking facilities to a
previously under-banked market.
RBI has taken several steps to
enable mobile payments, which
forms an important part of mobile
banking; the central bank has
recently removed the transaction
limit of Rs 50,000 (US$ 745.82) and
allowed banks to set their own
limits.
Payments on Unified Payments
Interface (UPI) hit an all-time high
of 1.49 billion in terms of volume
with transactions worth nearly Rs
2.90 lakh crore (US$ 41.22 billion) in
July 2020.
Mobile
commerce
Payment of
bills
Mobile
banking
(fund
transfers,
etc.)
Mobile
recharge
Mobile
remittances
13

14. GROWTH DRIVERS OF INDIAN BANKING
 Favourable demographics
and rising income levels.
 India ranks among the top 7
economies with a GDP of
US$ 2,73 trillion in 2018.
 The sector will benefit from
structural economic stability
and continued credibility of
Monetary Policy.
 The Government passed
the Banking Regulation
(Amendment) Bill 2017 to
empower RBI to deal with
NPAs in the banking sector.
 The Insolvency
Bankruptcy
(Amendment)
2017 Bill was
and
Code
Ordinance,
passed by
Rajya Sabha to strengthen
the banking sector (as of
Jan 2018).
Policy support
 India currently spends 6 per
cent of GDP on
infrastructure; NITI Aayog
expects this fraction to grow
going ahead.
 As per Union Budget 2019-
20, investment-driven
growth requires access to
low cost capital, which
requires an investment of
Rs 20 lakh crores (US$ 300
billion) every year.
Infrastructure financing
 Government has smoothly
carried out consolidation,
reducing the number of
public sector banks by eight.
 The Government of India
will invest Rs 48,239 crore
(US$ 6.78 billion) in 12
public sector banks in FY20
to help maintain regulatory
capital requirements and
financial growth in India.
 The Government of India
will invest Rs 5,042 crore
(US$ 730.88 million) in
Bank of Baroda post its
merger with two other public
sector lenders, Dena Bank
and Vijaya Bank.
Economic anddemographic
drivers
Government initiatives
 The scheme was launched
on March 28, 2018 to
provide social security to
elderly people by providing
Rs 10,000 (US$ 155)
pension per month.
 The scheme has
subscription limit till 31st
March 2020.
 The scheme has investment
limit of Rs 15 lakh (US$
23,274).
Pradhan MantriVaya
Vandana Yojna
 The Government of India
plans to allow Common
Service Centers (CSC) to
offer banking services.
 CSC will offer free internet
through BharatNet till March
2020.
Common Service Center
(CSC)
14

15. ADVANTAGE IN INDIA
 Increase in working population and
growing disposable incomes will raise
demand for banking & relatedservices.
 Housing and personal finance are
expected to remain key demand
drivers.
 Rural banking is expected to witness
growth in the future.
 Mobile, internet banking and extension
of facilities at ATM stations to improve
operational efficiency.
 Vast un-banked population highlights
scope for innovation in delivery.
 Rising fee incomes improving the revenue
mix of banks.
 High net interest margins along with low
NPA levels ensure healthy business
fundamentals.
 Wide policy support in the form of private
sector participation and liquidity infusion.
 Healthy regulatory oversight and credible
monetary policy by the Reserve Bank of
India (RBI) have lent strength and stability
to the country’s banking sector.
ADVANTAGE
INDIA
15

16. Chapter – 2- COMPANY INTRODUCTION
16

17. HDFC Bank Limited is a holding company. The bank offers a range of banking services covering commercial and
investment banking on the wholesale side and transactional/branch banking on the retail side. It also offers
financial services. The bank's segments include treasury, retail banking, wholesale banking and other banking
business. The treasury segment primarily consists of net interest earnings from the Bank's investment portfolio,
money market borrowing and lending, gains or losses on investment operations and on account of trading in
foreign exchange and derivative contracts. The retail banking segment serves retail customers through a branch
network and other delivery channels, as well as through alternative delivery channels. The bank provides its
corporate and institutional clients a range of commercial and transactional banking products. The other banking
business segment include income from para banking activities.
Vision
TO be customer driven best managed enterprise that enjoy market leadership in providing housing related
finance.
Mission
HDFC banks mission ids to be “ a world class Indian Bank”, benchmarking themselves against international
standards and the best practices I terms of product offering ,technology ,service levels, risk management and
audit & compliance .
Objective
is to build sound customer franchises across distinct business so as to be a preferred provider of banking
service for target retail and wholesale customer segment , and to achieve a healthy growth in profitability ,
consistent with the bank’s risk appetite . We are committed to do this while ensuring the highest level of ethical
standard , professional integrity , corporate governance and regulatory compliance .
COMPANY OVERVIEW 17

18. 2020 Launched video Know Your Customer (KYC) facility for its customer
Launched DigiDemat cum Trading facility
HDFC Bank signs MoU with Odisha government to boost start-ups in the state.
2019 HDFC Bank ties up with the CSC (Common Service Centre) SPV (Special Purpose Vehicle) to take
banking and financial services to doorways for the people who are living in small areas of the country
through its network of over 1 lakh VLEs, which will be supported by HDFC Bank’s branches over the 30
states.
2018 Launched Accelerator Engagement Programme (AEP), where HDFC Bank will partner with leading start-
up accelerators from across the world to gain early access to over 30,000 fintech ideas and innovative
solutions.
2011 Launched its new credit card offering called Infinia in direct competition with global credit card major
,American Express(Amex) .The new HDFC product is exclusively for the bank's high net worth and super
rich clients in the country.
2005 HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in Qatar.
2003 HDFC Bank launches India's first mobile payment solution.
2001 The bank has opened its first branch in Aurangabad. HDFC Standard Life Insurance has entered into a
memorandum of understanding with the Chennai-based Indian Bank.
2000 A new company called SESAMi.com (India) has been formed by a strategic alliance between HDFC
Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce solutions for
the Indian market.
1994 The bank was incorporated on August 30
th
, 1994. A new private sector bank promoted by Housing
Development Corporation Ltd. (HDFC), a premier housing finance company. The bank is the first of its
kind to receive an in-principle approval from the RBI for establishment of a bank in the private sector.
Certificate of Commencement of Business was received on October 10
th
, 1994 from RBI
Milestones OF HDFC bank IN Chronological Order
18

19. SEGMENTATION TRAGET POSITIONING
1. Demographic Variables:
1.1 Locations: Urban & sub urban
1.2. Occupation: Working/ Business/ MIG & HNI
Clients
1.3. Age: Minor-joint holder & Above 18
2. Psychographic Variable:
21. Values : Trusted Banking System
2.2 Lifestyle: Rural With Basic banking facility
2.3 Personality: Looks for security and
conservative though process
1. Separate marketing strategy for
different segment
2. Tailors its marketing campaigns
to meet the needs of target
prospects.
3. MIG/HNI
1. Trust, credibility and reinforces
2.Total financial solution provider
3. Modern Bank
4. Quick Service
5. Doorstep Service
6. Customer Friendly
HDFC BANK SEGMENTATION , TARGET AND POSITIONING .
19

20. SR NO Products Retail
1 CARDS
credit card
• Regular
• Premium
• Super premium
• Co-branded card
• Commercial or business card
• Cash back card
• Secured card
• Prepaid credit card
Debit card
• Visa Debit Card
• Visa Electron Debit Card
• Mastercard Debit Card
• Maestro Debit Card
• RuPay Debit Card
• Contactless Debit Card
2 ACCOUNTS
• Salary account
• Reimbursement account
• Exchange earner foreign currency
account
• Saving account
• Digisave youth account
• Salary family account
• NRI account
• DMAT account
• CURRENT ACCOUNT
3 DEPOSITS
• Fixed deposit
• Recurring deposit
• Fixed deposit via SMS
4 LOANS
• Personal loan
• Loan on credit card
• New car loan
• Two-wheeler loan
• Business growth loan
• Home loan
• Pre-owned loan
• Loan against car
• Educational loan
• Rural loan
• Salary loan
• Gold loan
• Loan against securities
• Loan against rental receivables
• Loan for Professional Government
Sponsored programs
• Super bike loans
• Loan against property
5 EMI
• Consumer durable
• Lifecare
• lifestyle
6 FASTAGS · Fastags cards
PRODUCT AND SERVICE OFERED BY HDFC BANK -1
20

21. 7 INVESTMENT
• Public Provident Fund
• National Pension System
• Mutual -ISA
• Mutual Funds-InvestNow
• Demat Account
8 LIFE INSURANCE
• Term Insurance
• Pension plan
• Child Insurance plan
• Investment plan
9 HEALTH INSURANCE
• Mediclaim
• Super Top-up Insurance
10 VEHICLE INSRANCE
• Private car insurance
• Two-wheeler Insurance
• Commercial vehicle Insurance
11 TRAVEL INSURANCE
• HDFC ERGO TRAVEL
INSURANCE
• Student Travel Insurance
12
SOCIAL SECURITY
SCHEME
• Pradhan Mantri Jeevan Jyoti
Bima Yojna
• Pradhan Mantri Suraksha Bima
Yojna
• Atal Pension Yojna
13 HOME INSURANCE • HDFC ERGO Home Insurance
PRODUCT AND SERVICE OFERED BY HDFC BANK-
2
21

22. SWOT ANALYSIS
STRENGHT
Excellence performance in NEW MARKET- HDFC Bank
limited has built expertise at entering new markets and making
success of them .the expansion helped the organization to build
new revenue stream and diversify the economic cycle risk in the
markets it operates in.
Strong Distribution Network- AS HDFC is a old bank it
had great hold on market and a reliable distribution
network that can reach to potential market .
Strong Dealer community – It has built a strong culture
where dealer and distribution not only promote the
product but also invest I training the sales team so that
they easily communicate with the customer and explain
them how he/ she can enjoy maximum benefit of the
product.
High skilled work-force – huge investment done on the
training program of the employee and the work force.
Automation of activities brought consistency of quality
– it has enabled the company to scale up and scale
down based on the demand condition of markets
Efficient free cash flow system- it has efficient free cash
flow that provide resource in the and of the company to
expand new projects.
WEAKNESS
Low Rural Penetration- HDFC has low rural
penetration in the rural area where it needs to
work on.
Low forecasting availability – it has low
demand forecasting thus end up keeping
higher inventory both in-house and in
channel.
Inefficient positing and unique quality of
product –this lead to the high competition on
this segment by the competitor.
Low investment in research and development
– HDFC has low rate of innovation than other
leading competitor it has come across as a
mature firm looking forward to bring out
product based on tested features I the market.
Limited success outside core business- even
though HDFC Bank is one of leading
organization I its industry it has faced
challenges in moving to others product
segment with its present culture.
22

23. Opportunities
The new tax assessment strategy can essentially affect the method of
working together and can open new open door for set up players, for
example, HDFC Bank Limited to expand its productivity.
New patterns in the customer conduct can open up new market for the
HDFC Bank Limited . It gives an incredible occasion to the association to
fabricate new income streams and differentiate into new item classes as well.
New ecological approaches – The new open doors will make a level
battleground for all the major parts in the business. It speak to an incredible
open door for HDFC Bank Limited to commute home its preferred position in
new innovation and addition piece of the pie in the new item class.
New clients from online channel – Over the previous few years the
organization has put immense amount of cash into the online stage. This
speculation has opened new deals channel for HDFC Bank Limited. In the
following not many years the organization can use this open door by knowing
its client better and serving their necessities utilizing large information
investigation.
The new innovation gives an occasion to HDFC Bank Limited to rehearses
separated evaluating technique in the new market. It will empower the firm to
keep up its reliable clients with extraordinary assistance and draw new clients
through other worth situated suggestions.
Monetary uptick and expansion in client spending - following quite a
while of downturn and moderate development rate in the business, is an open
door for HDFC Bank Limited to catch new clients and increment its piece of
the pie.
Opening up of new business sectors due to government
understanding – the reception of new innovation standard and government
international alliance has given HDFC Bank Limited an occasion to enter
another developing business sector.
Threat
The interest of the exceptionally beneficial items is occasional in
nature and any far-fetched occasion during the pinnacle season may
affect the productivity of the organization in short to medium term.
No standard flexibly of imaginative items – Over the years the
organization has built up various items however those are
frequently reaction to the improvement by different players. Besides
the gracefully of new items isn't customary subsequently prompting
high and low swings in the business number throughout timeframe.
Rising crude material can represent a danger to the HDFC Bank
Limited productivity.
Impersonation of the fake and bad quality item is likewise a
danger to HDFC Bank Limited's item particularly in the developing
business sectors and low pay markets.
Expanding pattern toward neutrality in the American economy
can prompt comparative response from other government hence
adversely affecting the global deals.
Extreme rivalry – Stable benefit has expanded the quantity of
major parts in the business over most recent two years which has
squeezed productivity as well as on by and large deals.
Lack of gifted labor force in certain worldwide market speaks to
a danger to consistent development of benefits for HDFC Bank
Limited in those business sectors.
23

24. Opportunities
(external , positive)
Threat
(external , negative)
Strengths
(internal , positive)
Strong distribution network and
strong dealer community should be
used to gain new client through
online as they have strong
connection by utilizing the large
information they have through dealer
and distributors.
High skilled work should be used for
the impersonation of the fake and
bad quality.
With high skilled workforce HDFC
performance is best in new market
therefore they should use this and do
proper business expanding plans .
Efficient free cash flow and resources
should ne used to handle the strong
rival in the market by better
promotion and campaign.
Weaknesses
(internal , negative)
Opening up of new business sectors
due to government understanding is
great opportunity to penetrate in
rural market and get tax benefit with
new tax strategy.
The new innovation idea should be
used to improve forecasting and
also better positing of the product.
Better positing of product an services
to handle the strong rivalriy and be
ahead of the competitors.
Investing more on research and
development they be ahead in
technology , and do better expansion
of business with better forecasting
analysis.
SWOT ANALYSIS IN MATRIX
24

25. POTERS ANALYSIS
25

26. THREAT OF NEW ENTRY
We are aware of the fact that despite of strict laws and high capital requirement many new bank enter into the market .which lead to threat
of entry high. But due to many merger and bank failures no of total banks is decreasing. Core reason for this trust factor where customer
loyalty play important role so for HDFC threat of new entrant is important factor as it have to maintain a proper balance.
Competitive rivalry
Competition within the finicality industry is probably the strongest of the Poters it has a great influence where in baking sectors there few
competitors as due to several merger taking place and also difference in product and service provided is very less the switching cost is usually
low but in the case of loan it would be difficult , customer in past where very loyal but now a days customer are bit experimental have
accounts in more than one bank but HDFC being second largest bank and have gained the trust of the people it can strongly handle
competitive rivalry
Buyers power
The banking enterprise is based closely at the bargaining strength of customers. Some have greater strength than others. For
instance, person customers, in particular the ones in the retail banking marketplace, have fairly little bargaining strength. That's due to the
fact the lack of a unmarried account essentially has minimum to no effect at the company's backside line. But the
bargaining strength of huge organizations of clients is extra due to the fact the financial institution can not manage to pay for to go
through mass defections of depositors. Corporate customers and high-net-really well
worth individuals (HNWI) additionally have extra bargaining strength because the lack of massive money
owed and reasserts of sales can greater considerably have an effect on the financial institution's profitability. The
difficulty of client bargaining strength mainly through extending appealing sign-up gives to new customers. It additionally makes efforts to
get present customers to open extra money owed and join up for added services, which successfully will increase the
switching value for customers through making it greater difficult for them to switch their budget to some other financial institution.
Threat of Substitute
IN banking sectors three is no such huge effect of threat of substitute yes the service and product are usually same but that are easy handle
by big company like HDFC as they strong holding on market with strong dealer and distributor channel yes entry of digital wallet and other
digital payment method may effect but not much because HDFC too have their own app for online transaction.
Supplier power
There are primary providers for a bank. The first organization incorporates of depositors who deliver the number one aid of capital, even
as the second one is its employees, additionally called the aid of labor. The danger from man or woman depositors is
minimal, simply the manner it's far with the bargaining energy of consumers. Major corporate customers, and big corporations of
depositors, though, have a tendency to be a massive danger
26

27. BCG MATRIX
EXPLANATION
The BCG framework is a key administration device that was made by
the Boston Consulting Group, which helps in breaking down the
situation of a key specialty unit and the potential it has to bring to
the table. The framework comprises of 4 orders that depend on two
measurements. These first of these measurements is the business or
market development. The other of these measurements is the
overall piece of the pie of the key specialty unit. Vital specialty units
are set in one of these 4 characterizations. The BCG lattice for HDFC
Bank Limited will help settle on the procedures that can be executed
for its vital specialty units. Key specialty units with high market
development rate and high relative piece of the pie are called stars.
Organizations ought to put resources into their stars and can execute
vertical incorporation, market infiltration, item advancement, market
improvement, and flat coordination procedures. Key specialty units
with high market development rate and low relative piece of the pie
are called question marks. These key specialty units require close
contemplations whether the business should proceed with them or
strip. Vital specialty units with low market development rate yet with
high relative piece of the pie are called gold mines. The business
ought to put resources into these to keep up their overall piece of
the pie. Ultimately, the vital specialty units with low market
development rate and low relative piece of the pie are called
canines. The business ought to strip these vital specialty units.
27

28. Step 1
Enter the Title
of Your BCG
Matrix
BCG Matrix for …
Step 2 Step 3 Step 4
DO NOT
ENTER
Step 5 Step 6
Enter the Products to be
Mapped
Enter
market share
for the
product/bra
nd
Enter
market
share for
their
largest
competito
r
Relative
market
share will
automaticall
y calculate
below
Enter the
market
growth rate
%
Enter
revenue pa
in LAC
Note: Circle
sizes represent
revenue size
1
HDFC CREDIT
CARD
55.69% 24.40% 2.28 33.70% 1,340,969
2
HDFC LIFE
INSURANCE
23.30% 18.60% 1.25 2.00% 34,121
3 HDFC DEBIT CARD 41.88% 29.15% 1.44 30.57% 598,412
4
HDFC MUTUAL
FUND
16.71% 23.00% 0.73 30.20% 27,600
5 HDFC FOREX CARD 16.50% 45.00% 0.37 3.00% 15,200
HDFC BANK LIMITED CLOSE COMPEDITIOR
CREDIT CARD ICICI BANK
HDFC LIFE INSURANCE ICICI Prudential Life
Insurance Company
Ltd.
HDFC DEBIT CARD ICICI BANK
HDFC MUTUAL FUND BAJAJ FINANCIEAR
HDFC FOREX CARD AXIS BANK
REFERENCE FOR BCG MATRIX GRAPH
All shares are calculated on figures available in rbi.org (private sector banks)
28

29. STAR
 The CREDIT CARD brand Strategic business unit is a star in the BCG matrix of HDFC Bank Limited, and this is also the product that generates the greatest sales amongst its
product portfolio. The potential within this market is also high as consumers are demanding this and similar types of products. HDFC Bank Limited should undergo a product
development strategy for this , where it develops innovative features on this product through research and development. This will help HDFC Bank Limited by attracting more
customers and increases its sales.
 The DEBIT CARD brand Strategic business unit is a star in the BCG matrix of HDFC Bank Limited as HDFC Bank Limited has a 41.8% market share in this category. It also the
market leader in this category. The overall category is expected to grow a approx. 30.2% next month which shows that the market growth rate is expected to remain high. HDFC
Bank Limited should use its current products to penetrate the market. This could be done by improving its distributions that will help in reaching out to untapped areas. This will
help increase the sales of HDFC Bank Limited.
CASH COW
 The HDFC LIFE INSURANCE strategic business unit is a cash cow in the BCG matrix of HDFC Bank Limited. This is an innovative product that has a market share of 23.3% in its
category. HDFC Bank Limited is also the market leader in this category. The overall category has been declining slowly in the past few years. HDFC Bank Limited has the power to
influence the market as well in this category. It should, therefore, invest in research and development so that the brand could be innovated. This will help the category grow and
will turn this cash cow into a star. The overall benefit would be an increase in sales of HDFC Bank Limited.
DOGS
 The HDFC FOREX strategic business unit is a dog in the BCG matrix for HDFC Bank Limited. This is operating in a market segment that is declining in the past few years. The
company also has negative profits for this strategic business unit. However, it is expected that the market will grow in the future with environmental changes that are occurring.
The recommended strategy for HDFC Bank Limited is to invest in the business enough to convert into a cash cow. This will ensure profits for HDFC Bank Limited if the market
starts growing again in the future.
29

30. CHAPTER 3- COMPANY PERFOMANCE ANALYSIS
30

31. PERFOMANCE ANALYSIS
This year HDFC further consolidated its leadership position by delivering consistent
improvement in their performance, introducing more impactful employee initiatives,
increasing their commitment to Parivartan, fueling the next wave in digitization through
‘Digital 2.0’, committing to greater focus on ESG, and continuing to expand its geographic
reach.
HDFC recorded an improvement in all key financial metrics, namely Net Interest Income,
Deposits, Loans and Investments during the year. it focus on diversifying across customer
segments and constant effort to deliver superior customer experiences have resulted in this
healthy and consistent growth.
31

32. PROFIT AND LOSS STATEMENT AS
ON 31 ST
Year
ended
31-Mar-20
Year
ended
31-Mar-
19
I INCOME
Interest earned 1,148,126,509 989,720,505
Other income 232,608,187 176,258,849
Total 1,380,734,696 1,165,979,354
II EXPENDITURE
Interest expended 586,263,979 507,288,285
Operating expenses 306,975,289 261,193,700
Provisions and contingencies 224,922,278 186,715,716
Total 1,118,161,546 955,197,701
III PROFIT
Net profit for the year 262,573,150 210,781,653
Balance in the Profit and Loss account brought forward 492,233,022 404,534,155
Total 754,806,172 615,315,808
IV APPROPRIATIONS
Transfer to Statutory Reserve 65,643,288 52,695,413
Dividend (including tax / cess thereon) pertaining to previous year
paid during the year, net of dividend tax credits
48,933,585 40,525,854
Interim Dividend (including tax) 16,469,504 -
Transfer to General Reserve 26,257,315 21,078,165
Transfer to Capital Reserve 11,238,460 1,053,354
Transfer to / (from) Investment Reserve Account - -
Transfer to / (from) Investment Fluctuation Reserve 11,340,000 7,730,000
Balance carried over to Balance Sheet 574,924,020 492,233,022
Total 754,806,172 615,315,808
V EARNINGS PER EQUITY SHARE (FACE VALUE ` 1 PER SHARE) ` `
Basic 48.01 39.33
Diluted 47.66 38.94
Balance sheet & PROFIT AND LOSS STATEMENT of HDFC 2019-2020
BALANCE SHEET
AS ON 31 ST MARCH 2020
As at 31-
Mar-20
As at 31-
Mar-19
CAPITAL AND LIABILITIES
Capital 1 5,483,286 5,446,613
Reserves and surplus 2 1,704,377,008 1,486,616,908
Deposits 3 11,475,022,947 9,231,409,284
Borrowings 4 1,446,285,372 1,170,851,238
Other liabilities and provisions 5 673,943,976 551,082,863
Total 15,305,112,589 12,445,406,906
ASSETS
Cash and balances with Reserve Bank of India 6 722,051,210 467,636,184
Balances with banks and money at call and short notice 7 144,135,970 345,840,208
Investments 8 3,918,266,581 2,931,160,725
Advances 9 9,937,028,781 8,194,012,167
Fixed assets 10 44,319,155 40,300,043
Other assets 11 539,310,892 466,457,579
Total 15,305,112,589 12,445,406,906
Contingent liabilities 12 11,289,534,044 10,247,151,183
Bills for collection 515,849,020 499,528,010
32

33. GRAPHICAL PRSENTATION OF LAST 3 YEAR GROWTH OF HDFC BANK
YEARS RUPEES (
CRORE)
2017-18 1,063,934
201819 1,244,541
2019-20 1,530,511
BALANCE SHEET GROWTH
YEARS RUPEES (
CRORE)
2017-18 376,167
201819 432,687
2019-20 496,691
AVERAGE GROWTH IN LAST TWO YEARS = 19.9%
RETAIL ASSETS
AVERAGE GROWTH OF LAST TWO YEAR=14.90%
1,063,9341,244,541
1,530,511
0
1,000,000
2,000,000
2017-18 201819 2019-20
RUPEES ( CRORE)
RUPEES (
CRORE)
376,167 432,687 496,691
0
500,000
1,000,000
2017-18 201819 2019-20
RUPEES ( CRORE)
33

34. YEARS RUPEES ( CRORE)
2017-18 788,771
3,43,093
4,45,678
2018-19 923,141
3,91,198
5,31,943
2019-20 1,147,502
4,84,625
6,62,877
DEPOSITS
AVERAGE INCREASE IN DEPOSIT IN LAST TWO YEAR 20.66%
788711
923141
1147502
343093
391198
484625
445678
531943
662877
0 200000 400000 600000 800000 1000000 1200000 1400000
2017-18
2018-2019
2019-20
DEPOSIT
Time deposit CASA deposit
Total deposits Linear (Total deposits )
34

35. YEARS RUPEES
(CRORE)
2017-18 17,487
201819 21,078
2019-20 26,257
YEARS RUPEES
(CRORE)
2017-18 658,333
2018-19 819,401
2019-20 993,703
PROFIT AFTER TAX
ADVANCES
AVERAGE GROWTH IN LAST TWO YEARS=22.86%
AVERAGE GROWTH IN LAST TWO YEARS=22.55%
0 500,000 1,000,0001,500,000
2017-18
2018-19
2019-20
ADVANCES
RUPEES (CRORE)
Linear ( RUPEES
(CRORE))
0 5,000 10,000 15,000 20,000 25,000 30,000
2017-18
201819
2019-20
PROFIT AFTER TAX
RUPEES (CRORE) Linear ( RUPEES (CRORE))
35

36. YEARS RUPEES
(CRORE)
2017-18 17,487
201819 21,078
2019-20 26,257
PROFIT AFTER TAX
AVERAGE GROWTH IN LAST TWO YEARS=22.55%
0 5,000 10,000 15,000 20,000 25,000 30,000
2017-18
201819
2019-20
PROFIT AFTER TAX
RUPEES (CRORE) Linear ( RUPEES (CRORE))
GRAPHICAL LAST THREE INCREASE IN EFFICIENCY
36

37. YEARS %
2017-18 41.0
2018-19 38.6
2019-20 39.7
YEARS %
2017-18 14.8
201819 17.1
2019-20 18.5
CAPITAL ADEQUECY RATIO
14.8
17.1
18.5
0 5 10 15 20
2017-18
CAPITAL ADEQUECY RATIO
AVERAGE GROWTH IN LAST TWO YEARS 11.86 %
COST TO INCOME RATIO
36
38
40
42
2017-18 2018-19 2019-20
COST TO INCOME RATIO
AVERAGE FALLL IN LAST TWO YEARS 1.75%
37

38. YEAR GROSS
NPS
NET NPA
2017-18 1.30 0.40
2018-19 1.36 0.39
2019-20 1.26 0.36
AVERAGE FALL IN NET NPA IS 0.2%
1.3 1.36 1.26
0.4 0.39 0.36
0
0.5
1
1.5
2017-18 2018-19 2019-20
GROSS NPA NET NPA
Linear (NET NPA)
NON PERFORMING
ASSETS
38

39. ITEMS %
Interest from Advances 66.5
Interest from Investments 16.7
Commission, Exchange, Brokerage 11.8
Other Interest 1.7
Income Other 1.7
Income FX & Derivative Income 1.6
66.5
16.7
11.8
1.7
1.7
1.6
Rupee Earned
Interest from
Advances
Interest from
Investments
Commission,
Exchange, Brokerage
Other Interest
Income Other
ITEMS %
Interest Expenses 45.2
Operating Expenses 23.7
Transfer to Reserve 9.4
Provisions 8.7
Tax 8
Dividend Paid and Tax 5
45.2
23.7
9.4
8.7
8
5
Rupee Spent
Interest Expenses
Operating Expenses
Transfer to Reserve
Provisions
Tax
Dividend Paid and Tax
Rupee Earned Rupee spent 39

40. YEAR %
2017-18 18.2
2018-19 16.3
2019-20 16.8
YEAR %
2017-18 1.93
2018-19 1.90
2019-20 2.01
15
16
17
18
19
2017-18 2018-19 2019-20
RETURN ON CAPITAL
1.8 1.85 1.9 1.95 2 2.05
2017-18
2018-19
2019-20
RETURN ON ASSET
RETURN ON CAPITAL
RETURN ON ASSETS
GRAPHICAL REPRESENTATION OF RETURNS IN HDFC BANK
40

41. YEAR EARNING
PER SHARE
DIVIDEND PER
SHARE
2017-18 33.9 6.5
2018-19 39.3 7.5
2019-20 48.0 (YET TO BE
DECIDED)
-10 0 10 20 30 40 50 60
2017-18
2018-19
2019-20
EARNING &DIVIDEND PER SHARE
DIVIDEND PER SHARE
EARNING PER SHARE
Linear (DIVIDEND PER SHARE)
EARNING &DIVIDEND PER SHARE
41

42. LAST TEN YEARS BALANCE SHEET OF HDFC
Equity Share Capital 548.33 544.66 519.02 512.51 505.64 501.3 479.81 475.88 469.34 465.23
TOTAL SHARE CAPITAL 548.33 544.66 519.02 512.51 505.64 501.3 479.81 475.88 469.34 465.23
Revaluation Reserve 0 0 0 0 0 0 0 0 0 0
Reserves and Surplus 170,437.70 148,661.69 105,775.98 88,949.84 72,172.13 61,508.12 42,998.82 35,738.26 29,455.04 24,911.13
Total Reserves and Surplus 170,437.70 148,661.69 105,775.98 88,949.84 72,172.13 61,508.12 42,998.82 35,738.26 29,455.04 24,911.13
TOTAL SHAREHOLDERS FUNDS 170,986.03 149,206.35 106,295.00 89,462.35 72,677.76 62,009.42 43,478.63 36,214.15 29,924.68 25,379.27
Deposits 1,147,502.29 923,140.93 788,770.64 643,639.66 546,424.19 450,795.64 367,337.48 296,246.98 246,706.45 208,586.41
Borrowings 144,628.54 117,085.12 123,104.97 74,028.87 53,018.47 45,213.56 39,438.99 33,006.60 23,846.51 14,394.06
Other Liabilities and Provisions 67,394.40 55,108.29 45,763.72 56,709.32 36,725.13 32,484.46 41,344.40 34,864.17 37,431.87 28,992.86
TOTAL CAPITAL AND LIABILITIES 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19 708,845.57 590,503.07 491,599.50 400,331.90 337,909.50 277,352.59
Cash and Balances with Reserve Bank of India 72,205.12 46,763.62 104,670.47 37,896.88 30,058.31 27,510.45 25,345.63 14,627.40 14,991.09 25,100.82
Balances with Banks Money at Call and Short Notice 14,413.60 34,584.02 18,244.61 11,055.22 8,860.53 8,821.00 14,238.01 12,652.77 5,946.63 4,568.02
Investments 391,826.66 290,587.88 242,200.24 214,463.34 163,885.77 166,459.95 120,951.07 111,613.60 97,482.91 70,929.37
Advances 993,702.88 819,401.22 658,333.09 554,568.20 464,593.96 365,495.03 303,000.27 239,720.64 195,420.03 159,982.67
Fixed Assets 4,431.92 4,030.00 3,607.20 3,626.74 3,343.16 3,121.73 2,939.92 2,703.08 2,347.19 2,170.65
Other Assets 53,931.09 49,173.95 36,878.70 42,229.82 38,103.84 19,094.91 25,124.60 19,014.41 21,721.64 14,601.08
TOTAL ASSETS 1,530,511.26 1,244,540.69 1,063,934.32 863,840.19 708,845.57 590,503.07 491,599.50 400,331.90 337,909.50 277,352.59
Number of Branches 5,416.00 5,103.00 4,787.00 4,715.00 4,520.00 4,014.00 3,403.00 3,062.00 2,544.00 1,986.00
Number of Employees 116,971.00 98,061.00 88,253.00 84,325.00 87,555.00 76,286.00 68,165.00 69,065.00 66,076.00 55,752.00
Capital Adequacy Ratios (%) 19.00 17.00 15.00 15.00 16.00 17.00 16.00 17.00 17.00 16.00
Tier 1 (%) 17.00 16.00 13.00 13.00 13.00 14.00 12.00 11.00 12.00 12.00
Tier 2 (%) 1.00 1.00 2.00 2.00 2.00 3.00 4.00 6.00 5.00 4.00
Gross NPA 12,649.97 11,224.16 8,606.97 5,885.66 4,392.83 3,438.38 2,989.28 2,334.64 1,999.39 1,694.34
Gross NPA (%) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Net NPA 3542.36 3214.52 2601.02 1843.99 1320.37 896.28 820.03 468.95 352.33 296.41
Net NPA (%) 0.36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Net NPA To Advances (%) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Bills for Collection 51,584.90 49,952.80 42,753.83 30,848.04 55,242.58 22,304.93 20,943.06 26,103.96 18,692.50 13,428.49
Contingent Liabilities 1,128,953.40 1,024,715.12 875,488.23 817,869.59 821,565.54 975,233.95 723,154.91 720,122.43 865,292.83 575,122.48
2012-13 2011-12
ASSETS QUALITY
CONTINGENT LIABILITIES, COMMITMENTS
EQUITIES AND LIABILITIES 2010-11
BALANCE SHEET OF HDFC BANK (in Rs. Cr.)
SHAREHOLDER'S FUNDS
ASSETS
OTHER ADDITIONAL INFORMATION
KEY PERFORMANCE INDICATORS
2019-20 2018-19 2017-2018 2016-17 2015-16 2014-15 2013-14
42

43. 43

44. Profit & Loss Statement of HDFC Bank
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020
Interest income 20,380.77 27,874.19 35,064.87 41,135.53 48,469.91 60,221.45 69,305.96 80,241.35 98,972.05 1,14,812.65
Interest expense 9,385.08 14,989.58 19,253.75 22,652.90 26,074.23 32,629.93 36,166.74 40,146.49 50,728.83 58,626.40
NET INTEREST INCOME 10,995.69 12,884.61 15,811.12 18,482.63 22,395.68 27,591.52 33,139.22 40,094.86 48,243.22 56,186.25
Other income 4,945.23 5,783.62 6,852.62 7,919.64 8,996.34 10,751.72 12,296.49 15,220.31 17,625.87 23,260.82
NET REVENUES 15,940.92 18,668.23 22,663.74 26,402.28 31,392.02 38,343.24 45,435.71 55,315.17 65,869.09 79,447.07
Operating costs 7,780.02 9,277.64 11,236.11 12,042.20 13,987.55 16,979.69 19,703.32 22,690.36 26,119.37 30,697.53
OPERATING RESULT 8,160.90 9,390.59 11,427.63 14,360.08 17,404.47 21,363.55 25,732.39 32,624.81 39,749.72 48,749.54
Provisions and contingencies 2,342.24 1,877.44 1,677.01 1,588.03 2,075.75 2,725.61 3,593.30 5,927.49 7,550.08 12,142.39
Loan loss provisions 1,198.55 1,091.77 1,234.21 1,632.58 1,723.58 2,133.63 3,145.30 4,910.43 6,394.11 9,083.32
Others 1,143.69 785.67 442.80 (44.56) 352.17 591.98 448.00 1,017.06 1,155.97 3,059.07
PROFIT BEFORE TAX 5,818.66 7,513.15 9,750.62 12,772.05 15,328.72 18,637.94 22,139.09 26,697.32 32,199.64 36,607.15
Provision for taxation 1,892.26 2,346.08 3,024.34 4,293.67 5,112.80 6,341.71 7,589.43 9,210.57 11,121.50 10,349.84
PROFIT AFTER TAX 3,926.40 5,167.07 6,726.28 8,478.38 10,215.92 12,296.23 14,549.66 17,486.75 21,078.14 26,257.31
FUNDS
Deposits 2,08,586.41 2,46,706.45 2,96,246.98 3,67,337.48 4,50,795.65 5,46,424.19 6,43,639.66 7,88,770.64 9,23,140.93 11,47,502.29
Subordinated debt 7,393.05 11,105.65 16,586.75 16,643.05 16,254.90 15,090.45 13,182.00 21,107.00 18,232.00 18,232.00
Stockholders’ equity 25,376.35 29,924.37 36,214.15 43,478.63 62,009.42 72,677.77 89,462.38 1,06,295.03 1,49,206.32 1,70,986.03
Working funds 2,83,634.24 3,45,248.26 4,21,327.31 4,91,599.50 5,95,695.13 7,40,796.07 8,63,840.19 10,63,934.32 12,44,540.69 15,30,511.26
Loans 1,59,982.67 1,95,420.03 2,39,720.64 3,03,000.27 3,65,495.04 4,64,593.96 5,54,568.20 6,58,333.09 8,19,401.22 9,93,702.88
Investments 67,952.59 89,967.10 1,11,303.21 1,00,111.88 1,56,833.82 1,95,836.29 2,14,463.34 2,42,200.24 2,93,116.07 3,91,826.66
KEY RATIOS
Earnings per share (`) * 8.50 11.06 14.24 17.74 21.08 24.42 28.59 33.88 39.33 48.01
Return on average net worth 16.52% 18.37% 20.07% 20.88% 20.36% 17.97% 18.04% 18.22% 16.30% 16.76%
Tier 1 capital ratio 12.23% 11.60% 11.08% 11.77% 13.66% 13.22% 12.79% 13.25% 15.78% 17.23%
Total capital ratio 16.22% 16.52% 16.80% 16.07% 16.79% 15.53% 14.55% 14.82% 17.11% 18.52%
Dividend per share (`) * 1.65 2.15 2.75 3.42 4.00 4.75 5.50 6.50 7.50 ***
Dividend payout ratio 0.23 0.23 0.23 0.23 0.24 0.24 0.23 0.23 0.23 ***
Book value per share as at March 31 (`)
*
54.55 63.76 76.10 90.62 123.70 143.74 174.56 204.80 273.94 311.83
Market price per share as at March 31
(`) **
234.59 259.93 312.68 374.40 511.35 535.58 721.28 964.50 1,159.45 861.90
Price to earnings ratio 27.59 23.51 21.95 21.11 24.26 21.93 25.23 28.47 29.48 17.95
44

45. GRAPHICAL REPRESENTATION OF LAST 10 YEARS GROWTH OF REVENUE , PROFIT , EARNING PER SHARE AND
RETURN .
15,940.92
18,668.23
22,663.74
26,402.28
31,392.02
38,343.24
45,435.71
55,315.17
65,869.09
79,447.07
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
90,000.00
NET REVENUES
5,818.66
7,513.15
9,750.62
12,772.05
15,328.72
18,637.94
22,139.09
26,697.32
32,199.64
36,607.15
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
PROFIT BEFORE TAX
45

46. 8.50
11.06
14.24
17.74
21.08
24.42
28.59
33.88
39.33
48.01
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Earnings per share (`) *
16.52%
18.37%
20.07%
20.88% 20.36%
17.97% 18.04% 18.22%
16.30% 16.76%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Return on average net worth 46

47. CONCLUSION
Analysis and interpretation of financial statements is an important tool in assessing company's
performance. It reveals the strengths and weaknesses of a firm by analysis of financial statements of
HDFC BANK LTD it is clear that it have been incurring profit during the period of study. So the firm should
focus on getting of more profits in further coming years by taking care internal as well as exterrel factors.
And with regard to resources, the firm is take utilization of the assets properly. And also the firm has
shown that it Non performing assets is decreasing with positive growth in profit , assets, deposit
,advance with above average growth calculation we can conclude that in there is expected 20.2% with
current market capital 770642.95 approx. 50.05% of current market holding.
47

48. Chapter – 4
CREDIT CARD INDUSTRY
48

49. The INDIAN CREDIT CARD INDUSTRY
In India, the Mastercard client base in 2019 arrived at 47 million and the market is foreseen to develop at a CAGR of over 25%
during 2020 - 2025 by virtue of rising notoriety of Visas and developing pattern of buying items first and paying later. Visa market
in India is more modest when contrasted and its partner charge card; nonetheless, the market is foreseen to observe huge
development in the coming years. With expanding fame of Visas, banks are zeroing in on metropolitan and semi-metropolitan
business sectors to build their offer on the lookout.
The Indian Credit Card Market can be fragmented dependent on type, administration giving organization, financial assessment,
credit limit, card type, advantages and locale. In light of type, charge card market can be bifurcated into broadly useful and private
name sections. Broadly useful is the predominant portion on the lookout and the section is probably going to proceed with its
strength in the coming a very long time too, as universally useful Mastercards can be utilized at an assortment of stores.
Significant players working in the nation incorporate HDFC Bank Ltd., SBI Cards and Payment Services Limited, ICICI Bank Limited,
Axis Bank Limited, Citibank India and Bank of Baroda, among others. Save Bank of India ceased attractive strip-based cards from
December 31, 2018 because of expanding occurrences of card cloning and skimming.
1950
FIRST CREDIT CARD INTRODUCED
1960 DINNER’S CLUB CARD
INTRODUCED IN INDIA
1980
CENTRAL BANK OF INDIA
ISSUES FIRST CREDIT CARD
2008
FOCUS CHANGE FROM
ACQUISITION TO
CONSOLIDATION
2015
Intensive
increase in the
market
in
2020
Increasing in the increasig
rate
49

50. India is a monstrous and incredibly exceptional market with an early installments industry that appears to be ready for sensational
development. New elements on the gracefully side including controllers and members will undoubtedly get significant change the standards of
the game. With aggregate and nonstop accentuation by government, national bank and other partners, non-conventional installment
strategies are being re-imagined to clear route for quicker and simultaneously less expensive method of installment. As indicated by CRISIL
research, computerized installments esteem in India is required to dramatically increase to Rs 4055 trillion in FY24E from Rs 1630 trillion in
FY19, converting into a five-year CAGR of 20%. Visas, with all pre-necessities of computerized installment marks all the containers as a principal
road. Further, consistent acceleration in optional spending, improved installment foundation and hearty development of web based business
industry further heightens rise in use of Mastercards which address transient credit needs of the client, dissimilar to other installment modes
The Indian Visa industry includes 74 players wherein the main 5 players hold ~75% of the piece of the pie with HDFC Bank being market
pioneer at 27% piece of the overall industry followed by SBI Cards sharing a piece of the pie of 18.1% (as far as number of exceptional cards).
25%
18%
16%
12%
5%
24%
MARKET SHARE
HDFC BANK
SBI BANK
ICICI BANK
AXIS BANK
CITI BANK
OTHERS
CREDIT CARD MARKET SHARE IN INDIA 50

51. The Indian card industry contains ~80 crore check cards (~93.6% of all out gave cards at ~86 crore as of December 2019). Visas include
the leftover ~6% of gave cards at ~5.5 crore as of December 2019. Charge cards have seen quicker development at 32% CAGR in FY16-
19, fundamentally drove by demonetization, which has given a catalyst to non-money installments. All out spends utilizing Visas
remained at ~Rs 6 lakh crore in FY19 with per card spend at ~Rs 1.3 lakh per annum. According to CRISIL research, charge card spend
is relied upon to develop ~2.5 times to ~Rs 15 lakh crore in FY24E. A slew of factors ranging from governments focus on digitisation,
young population with faster technology adaptability, higher mobile penetration, rising e-commerce etc have led to rise in digital
payment and credit cards as an avenue. Improving payment infrastructure (PoS machines) have further supported the acceptance of
card technology for payment. According to Crisil Research, credit card spends have registered a robust growth registering a CAGR of
32% from FY15 to FY19 to reach Rs 6.1 lakh crore as of FY19, and is expected to grow at a healthy rate to reach Rs 15.2 lakh crore as of
FY24E.
1.9 2.5 3.3 4.6 6.1
15.2
-10
0
10
20
FY 15 FY 16 FY 17 FY 18 FY 19 FY 24
CREDIT CARD SPENDING
GROWTH
CREDIT CARD SPENDING 51

52. Card penetration among millennials (people below 30 years of age) has witnessed a robust surge over the last 4 years from
19% to 35%, while share of customers below age of 25 has increased 10X in the same period. India, with median age of
population at ~28 years, faster acceptance of upcoming technology, higher discretionary spending and open to credit are
factors to keep credit card utilization moving towards north. Being an immense and extremely unique market, India with a
nascent payments industry seems poised for dramatic growth with focus on faster and cheaper mode of payment. Credit
cards, with all the prerequisites of digital payment, ticks all the boxes as a paramount avenue. Steady escalation in
discretionary spending, improved payment infrastructure and robust growth of e-commerce industry would further escalate
an upswing in utilization of credit cards addressing short-term credit needs of the customer unlike other payment modes.
Under penetration, growing acceptance of credit cards by millennials and improving payment infrastructure (PoS machines)
further are seen keeping the momentum unabated ahead.
0
100
FY 15 FY 16 FY 17 FY 18 FY 19
Breakdown Credit Card as per age usage
group(%)
< 25 YEARS 25-30 31-40 >40
Breakdown Credit Card as per age usage
52

53. NON – CASH PAYMENT ON THE RISE RISE IN USE OF CREDIT CARD
Relation between rise in non cash payment and use of credit card
53

54. Indian credit card market remains severely under penetrated with card penetration at meagre 3% (per 100 population)
which is amongst the lowest in the world as compared to global standards while the debit card penetration is 65%, thus
entailing into a cross selling opportunity for credit card players.
Further, growing e-commerce industry is seen to provide impetus to credit card usage ahead. As per CRISIL research, e-
commerce industry in India is estimated to be ~Rs 2.9 lakh crore in FY19. Out of this, ~30-35% of payments are been made
using credit cards which stands at ~Rs 101675 crore. Going ahead, e-commerce industry is expected to grow at 23-28%
CAGR in FY19-24E to Rs 9 lakh crore, which will provide further impetus to usage of credit card.
Penetration IN the Market 54

55. HDFC CREDIT CARD
HDFC Bank, the largest issuer of credit cards in the country, has grabbed more than 50 per cent market share in terms of book
size - total net receivables that customers owe to the bank. HDFC credit card book size in November 2015 crossed Rs 20,000
crore mark, representing a 52 per cent market share. The total outstanding in the same month for the industry was around Rs
39,000 crore. According to Reserve Bank of India (RBI) data, the lender had 6.72 million outstanding cards in October, the
highest in the industry. Its closest competitor, ICICI Bank, had about 3.43 million cards. Even though the central bank does not
publish credit card book size data, it mentions the amount of transactions carried on the cards. In October, the amount of
transactions carried out on HDFC Bank's credit cards was Rs 6,820 crore. For the entire industry, spending in October was Rs
21,908 crore. HDFC Bank has now turned more aggressive in its credit cards business. Till October-November in 2014, HDFC is
adding about 75,000-80,000 credit cards a month. In 2015, they have doubled it and source about 180,000 credit cards a
month. Experts say the growth in credit cards is being fuelled by the overall growth in the economy and the government's focus
on cashless transactions. The increase in e-commerce transactions has also fuelled the growth of plastic money. Lenders have
also been focusing on analytics-driven marketing and tailor-made offers to attract customers.
Last year, after a gap of five years, the credit card base in the country managed to cross the pre-Lehman crisis level and is now
well above the 20-million mark. According to RBI data, the number of outstanding credit cards at the end of September with
approx. 131.12 (lakhs).
55

56. MARKET ANALYSIS OF 2020
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
TOTAL
TRANSACTION
No. of
outstanding
cards as at
the end of
the month
Value of
transaction
s
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transactions
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transacti
ons
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transactio
ns
(Rupees
Lakh)
No. of
outstand
ing cards
as at the
end of
the
month
Value of
transactio
ns
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transactio
ns
(Rupees
Lakh)
No. of
outstandi
ng cards
as at the
end of the
month
Value of
transactions
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transactio
ns
(Rupees
Lakh)
No. of
outstandin
g cards as
at the end
of the
month
Value of
transactio
ns
(Rupees
Lakh)
TOTAL
No. of
outstandi
ng cards
as at the
end of
the
month
TOTAL
Value of
transactions
(Rupees
Lakh)
COMPANY NAME
HDFC BANK 14174067 1946179 14394269 1809406 14499647 1517504 14487555 626706
1448566
1 1008259 14570896 1347129 14696665
1403961
14979028 1616847 14979028 1572300
13126681
6 12848291
AXIS BANK 6850890 692781 6916566 640347 6985774 498994 6903188 187572 6829149 255499 6811762 361471 6835217 376713 6665348 406441 6873311 42740161671205 3847219
ICICI BANK 8793125 895442 8971011 913889 9110690 671459 9090119 232203 9091370 425938 9066788 588718 9119964 643837 9181160 674086 9272833 74668081697060 5792252
KOTAK
MAHIANDER 2276761 181032 2315950 967011 2324280 145490 2323580 64566 2321597 95455 2315363 110521 2303722 126952 2304332 137836 2314940 14371520800525 1972578
RATNAKAR BANK 2537468 29192 2619278 279539 2681336 261602 2627886 118357 260889 155609 2609962 198031 2622743 221419 2653709 231634 2713931 681506521327202 8310448
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
No.
of
outstanding…
Value
of
transactions…
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
COMPETITOR ANALYSIS
HDFC BANK AXIS BANK ICICI BANK KOTAK MAHIANDER RATNAKAR
56

57. COMPANY NAME.
TOTAL No. of outstanding cards as at the end of
the month
TOTAL Value of transactions
(Rupees Lakh)
HDFC BANK 131266816 12848291
AXIS BANK 61671205 3847219
ICICI BANK 81697060 5792252
KOTAK MAHIANDER 20800525 1972578
RATNAKAR BANK 21327202 8310448
131266816
61671205
81697060
20800525 21327202
0
50000000
100000000
150000000
HDFC BANK AXIS BANK ICICI BANK KOTAK
MAHIANDER
RATNAKAR
BANK
TOTAL No. of outstanding cards as at the end of
the month
12848291
3847219
5792252
1972578
8310448
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
HDFC BANK AXIS BANK ICICI BANK KOTAK
MAHIANDER
RATNAKAR
BANK
TOTAL Value of transactions
(Rupees Lakh)
57

58. Calculation market share (according to June 2020)
COMPANY NAME Market share(IN RS)
HDFC BANK 1347129
AXIS BANK 361471
ICICI BANK 588718
KOTAK MAHIANDER 110521
RATNAKAR BANK 198031
INDUSIND BANK LTD 124510
others 46984
TOTAL 2777365
COMPANY NAME Market share(%)
HDFC BANK 48.50385988
AXIS BANK 13.01488141
ICICI BANK 21.19700866
KOTAK MAHIANDER 3.979355205
RATNAKAR BANK 7.130180351
INDUSIND BANK LTD 4.483037738
others 1.691676749
TOTAL 100
1347129
361471
588718
110521
198031
124510
46984
0 500000 1000000 1500000
Market share(IN RS)
MARKET SHARE(RS IN LAKHS)
others INDUSIND BANK LTD
RATNAKAR BANK KOTAK MAHIANDER
ICICI BANK AXIS BANK
HDFC BANK
48.50385988
13.01488141
21.19700866
3.979355205
7.130180351
4.483037738
1.691676749
0 10 20 30 40 50 60
Market share(%)
MARKET SHARE (%)
others INDUSIND BANK LTD
RATNAKAR BANK KOTAK MAHIANDER
ICICI BANK AXIS BANK
HDFC BANK
58

59. ANALYSIS
Through the graph and calculation of market share we can comprehend that in year 2020
and in the past few year HDFC bank has been the market leader in credit card market in
private sector and if in whole banking sector we consider than also its leading in the market
wit approx. 48.50% followed by ICICI bank with 21.19% , AXIS BANK 13.014% with close
competition HDFC expects a 20.2% growth in in credit card market share.
59

60. Sr.no TYPE PRODUCT
1 SUPER PREMIUM CARD
• Diners Club Black Credit Card
• Infinia Credit Card
2 LIFE STYLE CARD
• Regalia Credit Card
• Diners Club Privilege Credit Card
• Millennia Credit Card
• MoneyBack Credit Card
• Regalia First Credit Card
• Diners ClubMiles Credit Card
• Freedom Credit Card
3 ENTERTAINMENT
• Platinum Times Card
• Titanium Times Card
4
TRAVEL
• 6E Rewards XL- IndiGo HDFC Bank Credit Card
• 6E Rewards - IndiGo HDFC Bank Credit Card
• InterMiles HDFC Bank Diners Club Credit Card
• InterMiles HDFC Bank Signature Credit Card
• InterMiles HDFC Bank Platinum Credit Card
5 FUEL · IndianOil HDFC Bank Credit Card
6 EMI · Easy EMI Card
7 BUSINESS
• Business Regalia
• Best Price Save Max HDFC Bank Credit Card
• Business MoneyBack
• Best Price Save Smart HDFC Bank Credit Card
• CSC Small Business MoneyBack
8 OTHERS
• All Miles Credit Card
• Bharat Credit Card
• Business Bharat Credit Card
• Business Freedom Credit Card
• Business Gold Credit Card
• Business Platinum Credit Card
• Business Regalia First Credit Card
• Diners Club Premium Credit Card
• Diners Club Rewardz Credit Card
• Doctor's Regalia Credit Card
• Doctors Superia Credit Card
• JetPrivilege HDFC Bank Select / Titanium
• Platinum Edge Credit Card
• Platinum Plus Credit Card
• Solitaire Credit Card
• Superia Credit Card
• Teachers Platinum Credit Card
• Titanium Edge Credit Card
• Visa Signature Credit Card
• World MasterCard Credit Card
9 COMMERCIAL CREDIT CARDS
• Corporate Platinum Credit Card
• Corporate Premium Credit Card
• HDFC Bank & SAP Concur Solutions Black Corporate Credit Card
• HDFC Bank & SAP Concur Solutions Prime Corporate Credit Card
• Business Corporate Regalia Credit Card
• Business Corporate MoneyBack Credit Card
• Corporate World MasterCard Credit Card
• Corporate Visa Signature Credit Card
Types of credit card offered by HDFC Bank
60

61. Types of Credit Cards
Regular
Among the different kinds of Credit Card is the regular card -- like the HDFC Bank Platinum
Plus Credit Card. It’s great as your first Credit Card. It offers all the convenience and safety of
a Credit Card and combines it with benefits like Reward Points and fuel surcharge waivers.
There are also three free add-on cards, which you can give to your spouse, adult children,
parents, brothers or sisters.
Premium
As your income and needs increase, you can upgrade to a premium card like the HDFC Bank
Visa Signature Credit Card. A premium card gives you higher credit limits, more magnificent
Reward Points and more benefits. It also provides some lifestyle-related benefits such as free
lounge access at airports. This is particularly useful if you are a frequent flyer and spent a lot
of time in airports.
Super Premium
These are the top of the line cards that complement your lifestyle – for example, cards like
HDFC Bank Infinia Credit Card or HDFC Bank Regalia Credit Card. Benefits include exclusive
lounge access, complimentary golf games, personal concierge, best-in-class rewards, and fine
dining discounts. These cards come with high credit limits and are usually by invitation only.
Co-branded cards
Co-branded cards are great when you have a specific type of usage. For example, if you are a
frequent traveller, a Jetprivilege HDFC Bank Signature Card can be a great companion on your
travels. You can get exclusive benefits like extra air miles, discounts on flights, dedicated
check-in counters, extra baggage allowance and free lounge access. You can even redeem
your miles for free flights. Other co-branded cards include Maruti Suzuki NEXA HDFC Bank
AllMiles (car-related privileges), Platinum Times Card (discounts on entertainment), and
Snapdeal HDFC Bank Card (online benefits).
61

62. Commercial or business cards
If you want to use a card for business-related expenses, a commercial card is ideal. Achieve savings
on your business travels and expenses and easily manage payments for your purchases. For large
companies, corporate cards offer additional benefits and tools such as 24x7 MIS, spend analysis
and seamless accounting. Examples of HDFC Bank Business Credit Cards are Business MoneyBack
and Corporate Platinum.
CashBack cards
Moneyback or CashBack Cards allow you to earn cash back on your everyday spends. These cash
back are in the form of rewards which you can use to settle the outstanding amount on your Credit
Card. In addition to cash back, you also receive benefits such as shopping and dining discounts.
Platinum Edge and MoneyBack are examples of cashback cards.
Across these different types of cards, some features are standard. These include smart bill
payments, fuel surcharge waivers, interest-free credit, zero liability after reporting lost or stolen
card and EMV chips for security.
Secured Cards
There are some basic requirements that you must fulfil to get a Credit Card, like reasonable
income and a decent credit score. Sometimes some people are unable to meet these requirements
but would still need a Credit Card. There are some kinds of Credit Cards that are meant for this
type of customers – one of them is a Secured Card. A Secured Card needs collateral, like a loan.
You can open a Fixed Deposit in the bank to get such a Secured Credit Card. The FD will then be
used as collateral. You may not even have to offer income proof to get such a card.
Prepaid Credit Cards
Among the different Credit Cards is the Prepaid Card. This can come in handy in some situations.
For example, if you want your child to have a card, but want to contain spending within a specific
limit, you could give him/ her a prepaid Credit Card. Companies can use these kinds of cards for
their employees to meet everyday business expenses. Examples of this kind of card include
MoneyPlus Dependent GPR Card, GPR Card, MoneyPlus Card and FoodPlus Card
62

63. As a leader in India's financial services industry, the company is rapidly expanding its range of services to sub-
urban consumers. More than half of its retail stores are located in suburban and rural areas of India. Demand for
digital banking services in rural areas is also increasing, creating new opportunities for players in the banking
and financial sectors. HDFC's service network is constantly expanding. An extensive physical network of outlets
and ATMs throughout India can serve customers in every corner of the subcontinent. The company also invests in
social responsibility to strengthen its social image. HDFC has grown rapidly in the Indian market and
has a physical presence across India. The company offers a wide range of financial products and services, serving
retail and corporate clients, SMEs and government agencies. HDFC aims to cater to the diverse banking needs of
the Indian population. It is one of the leading providers of digital banking services in the Indian market.
Credit cards of HDFC BANK
HDFC offers a wide range of credit cards that cater to the needs of different customer segments; Larger than
most other Indian banking providers. The various categories of credit cards issued by HDFC
include premium, super-premium, cash-back, regular, commercial and some other categories that target the
needs of other categories of businesses, professionals, freelancers and consumers. . Urban consumers can use
personal banking services to benefit from online services and to pay their bills through their credit and debit
cards or e-banking
Marketing Mix of HDFC BANK LMTD
63

64. HDFC Practice 7 p’s of marketing mix
Product-HDFC offers a huge cluster of items and administrations including internet banking administrations, reserve funds and current financial records,
monetary advances, charge and Visas, speculation alternatives and a few more focused at the financial requirements of the assorted sections of Indian
customers. HDFC's retail banking administrations for singular customers have developed a great deal. Advanced innovation has especially supported the quick
development of banking administrations in India.
Place-The administrative center of HDFC is in Mumbai, India. Anyway the monetary administrations organization has kept up, and broad presence all through
India through its financial sources and ATMs. The organization is constantly growing its actual organization all through India including the country territories. In
the most recent financial, the actual organization of HDFC included 5,103 financial sources just as 13,168 ATMs across 2,748 urban areas and towns (Annual
Report 2018-19). The organization has the greater part of its financial sources in semi-metropolitan and provincial zones. As HDFC entered its 25th year, it is
serving more than 4.9 crore clients straightforwardly or in a roundabout way. During the most recent monetary, the organization added 316 financial sources.
The portion of semi-metropolitan and country sources in the complete organization of HDFC is 53% which mirrors its attention on the provincial and semi-
metropolitan market (Annual Report 2018-19).
Price- Concerning evaluating, when found with regards to banking and monetary administrations, HDFC's methodology is serious yet contrasted with the
contending suppliers in the public area, its costs or charges can be higher. Nonetheless, the organization is attempting to make its administrations accessible to
clients from all segments across whole India remembering the populaces for the provincial and semi-metropolitan regions of the nation. While in certain zones,
keeping money with public area banks can be more productive, there are numerous reasons that HDFC clients discover the bank more appropriate for their
banking and protection related requirements. Aside from the better assistance, there are a lot more reasons that make HDFC the most favored bank including its
serious financing costs. HDFC offers its clients both in the provincial and metropolitan territories banking administrations at reasonable costs. Regardless of
whether it's tied in with opening another record or taking an advance, the organization offers bother free administrations at serious costs. In country regions,
individuals need to have simply INR 2500 as least normal equilibrium.
The Minimum Average Balance limit is higher for metropolitan and semi-metropolitan customers. The advance rates just as charge card loan costs are likewise
moderate at HDFC. In any case, the charges for preparing advances and loan fees can be higher contrasted with the public area administrations suppliers. Credit
preparing charges at HDFC can be up to 2.5% of the advance sum. This is somewhat expensive contrasted with a large portion of different banks in India. The
organization additionally guarantees that its customers whether in India or outside can profit of its administrations with the most noteworthy accommodation.
While in certain respects, you may discover its administrations somewhat exorbitant contrasted with others, the degree of accommodation the organization
offers more than compensates for the charges. Most clients discover it profoundly reasonable since there are sure advantages related with each ledger in HDFC
and the greater part of these advantages make it worth keeping money with the main monetary association of India
64

65. Promotion-Aside from the customary channels of showcasing and advancements, HDFC additionally utilizes computerized innovation and other
present day instruments and techniques to advance its image and administrations. The organization advances its administrations including Mastercards,
credits, and different administrations from its site. Over the long run it has increased an enormous piece of the pie in India as a main monetary
administrations organization. HDFC appreciates solid brand value which is an aftereffect of predictable concentration upon client comfort. It has had the
option to win in the clients' trust through devotion to support. In any case, the brand likewise advances from other computerized channels including web-
based media the Facebook page of HDFC Bank has more than 2.8 million adherents. The organization additionally advances its items and administrations
from Twitter. HDFC is among the most carefully progressed banking administrations supplier in India. Aside from banking from your cell phone, you can
expect profoundly secure exchanges and more imaginative offices contrasted with what different suppliers have to bring to the table. It generally centers
around higher client accommodation and higher security of clients' monetary information which has brought about better verbal exchange and solid
upper hand contrasted with its driving rivals including government banks. Its computerized administrations are considerably more progressed including
the versatile application which empowers it to offer types of assistance to different classes of clients flawlessly.
Higher concentration upon client support has prompted higher client dependability and a more grounded brand picture generally. A great deal of
showcasing additionally goes on at the touchpoints including banking sources and ATMs. The financial sources go about as both showcasing and deals
channels for HDFC. Its devoted client support groups likewise work to educate existing clients and draw in new ones. Thus, the client base of HDFC has
filled quick in India. HDFC is viewed as a capable and dependable monetary administrations brand, inimitable regarding administration quality and
extraordinary as far as generally speaking accommodation. The brand likewise utilizes open air publicizing and advancements for showcasing just as print
and media commercials to advance explicit items or administrations. Aside from that, the organization puts resources into social projects to keep up a
socially mindful picture in its center market. Its social activities which the bank has together named as the Parivartan activity are contacting a huge
number of lives across India. HDFC has additionally procured a few honors and awards for its remarkable work in the field of banking in India. Forbes
names HDFC India's best bank in its review of worldwide banks for 2019. The organization has won a few additional honors in different zones also
including digitalization, promoting, and advanced security of online exchanges
65

66. People-Aside from different zones, HDFC dominates as far as HR as well. The organization places selective spotlight on recruiting and
creating ability that can effectively enable the organization to accomplish its main goal of being 'A World Class Indian Bank'. There are
five fundamental beliefs basic the business theory of HDFC. They are operational greatness, client center, item authority, individuals and
supportability. Aside from a significant guiding principle, its kin's joy and fulfillment are additionally a vital need for the organization. The
organization accepts that at last its prosperity lays on the outstanding nature of its kin and their uncommon endeavors. Hence, HDFC
employs, creates, propels, and holds the best individuals in the banking and monetary administrations industry. As of March 2019, the
quantity of perpetual representatives working for HDFC was 98,061. The organization likewise centers around different parts of HR the
executives including serious compensation and other significant advantages. It prepares its workers to give the top tier client assistance
and carries on ordinary execution survey and the executives so the representatives can discover profession development. During the
monetary year 2018-19, there was an expansion of 10.31% in the middle compensation of HDFC workers (Annual Report 2018-19). The
organization consistently centers around boosting representative fulfillment by giving them the correct workplace just as the wide range
of various significant assets and apparatuses that at that point need to accomplish their latent capacity.
The organization has planned an uncommon recruiting and preparing program for up-and-comers who need to seek after a fruitful
vocation in banking. The Future Bankers program by HDFC is an activity to draw in and create youngsters who need a vocation in banking.
This program means to transform youthful alumni into exceptionally prepared, client confronting staff. Aside from nearby learning for the
initial a half year, an entry level position of a half year is additionally included as a portion of the learning program. The effective
applicants are granted a post-graduate confirmation endorsement just as an all day opening for work with HDFC. As a portion of this
preparation program, the applicants are given information and aptitudes in center financial regions including banking items, measures,
frameworks, guidelines and consistence systems associated with ordinary financial activities. The primary point of this program is to fill
the deficiency of qualified ability in the financial business and make future pioneers in banking.
66

67. Processes-The effectiveness of banking measures is a significant concentration for HDFC to give bother free banking to every one
of its clients. As of late the organization has intensely put resources into advanced innovation and AI to make banking more secure
and more open. HDFC Bank is at present driving the Indian financial industry as far as digitalization and security. HDFC has
consistently centered around dispatching client driven items and administrations. Creative cycles and projects are a need for the
bank. As a piece of its Go Digital recommendation, the Digital Transformation, and Mobile Banking unit at HDFC was established in
July 2014. The DTMB group works after progressing HDFC computerized advancements in the advanced, portable, and social space.
The organization has brought a huge scope of computerized items that make the way toward banking simpler just as secure.
Aside from its ground-breaking net financial entryway and versatile banking application, the organization has dispatched a large group
of profoundly fruitful advanced financial items including moment credits and a few different applications. As of late it additionally
presented automated colleagues at HDFC Bank sources. The organization is likewise wanting to dispatch humanoids in the
homegrown financial space and clients may before long go over one at one of their city branches. For making banking even
advantageous, HDFC Bank likewise permits its clients to visit with bank delegates on talk and Facebook Messenger and profit of
different administrations including charge installments, occasion appointments, and travel appointments. By and large through the
assistance of AI, Augmented Reality and computerized innovation, the organization has had the option to improve the way toward
Banking and exchanges and make them much simpler, quicker, helpful and secure also.
67

68. Physical evidence -It is the digital era and a very large number of customers are using their smartphones and smartphone
apps for their banking needs and to access their bank accounts online. However, HDFC has an extensive physical network spread
across India including its rural parts. While customers can avail of most of the services online, they can still walk into a nearby
branch to see a representative face to face or to ask for information related to new products or services. With the growing use
of online banking, the need for paper has nearly been eliminated from most processes.
Customers can fill most of the forms online and even apply for loans from their smartphones or computers. However, there are
several areas where a customer may like to see a representative face to face and talk to him. In such a case, they can reach
HDFC at any of its touchpoints throughout India. While there are several banks with an extensive network in India, HDFC’s
outlets and ATMs can be traced easily and recognized by their distinct logo as well as blue, white and red colors. The number of
HDFC ATMs throughout the country has also grown fast which its customers use for withdrawal and other services. In tier 1 and
2 cities of India especially, it is not difficult to come across its outlets and ATMs at every major location.
68

69. REMARKABLE ADD CAMAPIGN BY HDFC BANK.
# ‘Make Every #WishComeTrue with #HDFCBankFestiveTreats’ campaign’-
Diwali 2019
AS a leader digital-innovation , HDFC use a cleverly way to use the digital plat form
where it introduce idea where get hold the digital influencer where promoting the HDFC
offers by the product they wish to buy by using HDFC offers where HDFC provided offer
all segments from beauty products, clothing line, travelling and also consumer durable
products this made the add very much personalized and was one of its type was one of
the best add campaign of that year on the occasion of Diwali where people are on
buying mood and also this type of add instigate many compulsive buyers , materialistic
buyers to .This uniqueness of its plans made HDFC a true leader in its field.
This prove the point of 7p’s marketing mix where promotion is one of the strength of the
HDFC bank and playing important role .
69

70. OVERVIEW
By the use of 7p’s HDFC is a market leader in the credit card segment and also the second larges bank in the Indian
banking segment with strong penetration in all the state and mainly a strong hold on urban- rural “1168” market
where the no of branches in rural area “1158” branch. is also increasing day by with huge competition to the ICICI
bank in rural area and axis bank in the urban area with strong distribution channel and great marketing policies
and plans HDFC has become the market leader. Add campaign as mention in promotion part is strong by both the
traditional method and also digital platform where HDFC also involved in many CSR activity which is one sort of
promotion for HDFC IT HAS INVESTED AROUND 535 CRORE . HDFC also promote women empowerment .
Few CSR activities of these year-
• 7.8 Crore+ Beneficiaries of Parivartan
• 1.29 Crore Participants in the Financial Literacy Programmed
• 94,470+ Farmers trained through Holistic Rural Development Programme+9
• This CSR activates helps the HDFC to make positive positioning in the mind of the society and help them to
grow.
70

71. CHAPTER-5 SURVEY ANALYSIS
71

72. Credit card usage study
Objective of the study
Compulsive
buying
Personality traits
materialism demographic
Credit Card Spending Pattern
Data Collection
Primary Data
Survey
Secondary Data
Literature Review
72

73. Compulsive
buying
Personality
traits
Demographic
Materialism
Shopping Addiction
acquisition is necessary for
happiness, the ownership and
display of status
Age ,Gender
Marital status
Education, income level
Conscientiousness,
Agreeableness
73

74. 1. Which age category do you belong to?
2. What is your gender?
3. What is your marital status?
4. What is your highest educational qualification?
5. What is your occupational status?
6. How many credit cards do you own?
7. Which Bank credit card do you use
8. What is your monthly income
9. Which of the following best defines your spending habit?
10. Do you use your credit card while traveling to other countries?
11.How frequently do you use credit card?
12.How many credit card transaction do you make per day?
13.How many credit card transaction do you make in month?
14. Charges paid by you for credit card is should 45 day pay period should be increased?
15. Do you use the credit card bonus point?
16.Do you shop online using your credit card?
17.Which of the following statement matches your credit card usage habits?
18.How did you apply for the credit card?
19.What type of credit card do you own? What is the category of the credit card you are
currently using?
Questionnaire
74

75. Response collected
TOTAL RESPONSE COLLECTED- 50
33
13
3
1
50
0 10 20 30 40 50 60
19-25
36-45
GRAND TOTAL
AGE
12
38
50
FEMALE
MALE
GRAND TOTAL
0 20 40 60
GENDER
Female
Male
Grand Total
1 9 40 50
FREQUENCY
MARITAL STATUS
DIVORCED MARRIEDD SINGLE Grand Total
31
2
1
16
50
0 10 20 30 40 50 60
EDUCATION QUALIFICATION
Grand Total Master degree
High school Diploma
Bachelor degree
2
1
17
1
11
1
17
0 10 20
BUSINESS
SERVICE
STUDENT
UNEMPLOY…
PROFESSION
Total
21
6
15
8
50
0 10 20 30 40 50 60
<10000
11000-22000
23000-50000
50000 OR ABOVE
GRAND TOTAL
INCOME
75

76. 37
11
2
0 10 20 30 40
0-1
2-3
4 OR ABOVE
NO OF CREDIT CARD
Total 2 8 4 1 17 7 1 1 2 1 1 1 4
50
Name of BANK
3
8
31
8
0 10 20 30 40
HIGH
LOW
MEDIUM
VERY LOW
Spending Habit
Total
11
39
NO
YES
Online shopping
Total
76

77. 8
22 20
HIGH LOW MEDIUM
Credit card charges
Total
14 11
25
NO SOMETIMES YES
Bonus point usage
Total
20
11
19
MAYBE NO YES
Total
Total
77

78. Cross Tabulation and Close Analysis of primary data collected
1 1 1
2
1
3
1 1
3
2
1
5
2
6
1
5
4
1 1
5
2
1
0
1
2
3
4
5
6
7
<10000
11000-22000
23000-50000
<10000
11000-22000
23000-50000
11000-22000
<10000
23000-50000
50000
OR
ABOVE
50000
OR
ABOVE
23000-50000
50000
OR
ABOVE
50000
OR
ABOVE
Female Male Female Male Female Male Male
19-25 26-35 36-45 46 OR
ABOVE
HIGH
Low
MEDIUM
Very low
Finding- In this graph four variable is used from demographic factor there are
three and one from compulsive buying factor where according to age, gender ,
income and usage of credit card is medium in all group which shows that the
customer have a neutral behavior towards the usage of credit card.
78

79. MARRIEDD SINGLE DIVORCED MARRIEDD SINGLE
Female Male
Daily 1 2 4
Monthly 2 9 1 4 27
1 2 4
2
9
1
4
27
0
10
20
30
Frequency of usage of credit card
Daily
Monthly
Finding – In this we can see that married people have more likely
to use the credit card then the single one may the reason for such
behavior will be change in the stage of life from single to married
and usage increases.
79

80. 1 1 5 3 1 1 4 4 1 6 1 4 1
12
3 2
0
2
4
6
8
10
12
14
<10000
11000-22000
23000-50000
50000
OR
ABOVE
11000-22000
<10000
23000-50000
50000
OR
ABOVE
50000
OR
ABOVE
<10000
11000-22000
23000-50000
<10000
<10000
11000-22000
23000-50000
SERVICE BUSINESS SERVICE BUSINESS Part time
job
SERVICE Software
engineer
Student student UNEMPLOYED
DIVORCED MARRIEDD SINGLE
Total
Total
Finding – Divorced people are a new segment to be explored by company as
they are interested in online shopping and maximum of online shopping are
done by credit card where as single and married people have a moderate use
of credit card.
80

81. 0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Male Male Female Male Female Male Male Female Male Female Male Male Male Female Male Male
BUSINESS Part time job SERVICE Student student UNEMPLOYED BUSINESS SERVICE
Software engineer
UNEMPLOYED SERVICE SERVICE
19-25 26-35 36-45 46 OR
ABOVE
1 1 1
2
3
4
1
4 4
1
5
2
1 1
1
4
2
5
4
1
2
Usage of credit card
NO
YES
Findings – here the usage rate of for the credit card in travelling
purpose is low and also if we seek for the user maximum male at
age group of 19-25 and 26-35 are their specially the student are
using the credit card for travelling purpose.
81

82. 1 1 1 1 1
2
1
1
4
1 1 1 1
3
1 1 1 1 1
5
1 1 1 1 1 1
7
4
3
0
2
4
6
8
Allahabad
bank
AXIS
BANK
Bahan
Finserve
Central
Bank
of…
HDFC
BANK
ICICI
BANK
NA
None
AXIS
BANK
HDFC
BANK
ICICI
BANK
indian
bank
JkBank
No
PNB
sbi
Allahabad
bank
AXIS
BANK
HDFC
BANK
ICICI
BANK
sbi
No sometimes Yes
Usage of bonus point and charges paid
High
Low
Medium
Finding –In this survey we can find that the charges paid is medium for
HDFC bank where as other bank are moderate .
82

83. All over conclusion for the survey
 Youth use more credit card then the other age group .
 Married people are more often to use credit card in online shopping then the others
 New segment for divorcee can be included extra benefit can be provided to then to
encourage using credit card
 People have moderate compulsives buying behavior with moderate use of credit card
 People use less credit while travelling where as student use it more if we closely
compare the data .
 People are not so much satisfied by the charges they are paying for the credit card .
 Maximum people use bonus point on further transaction .
 In this survey also we find that maximum people have HDFC bank credit card.
 Male use more credit card then female
 Mostly people at least one credit card with them
 Online shopping is done more likely with the credit card
 people have more master cards and visa cards maximum of platinum type with them .
83

84. MARKETING PLAN PROPOSED
Marketing strategy – as we are aware of the fact that HDFC bank is a market leader and second largest bank
with strong marketing mix plan but this are few update marketing strategy that can be used by the HDFC
• Selling credit to customer like credit for any insurance policy
• Introducing credit card according demographic studies like in my survey I found many of then where
student but using a credit card which may belong to their parents or their own but if a personalized
segment will be introduce by HDFC for the student with better offers and less charges it would attract
more customer towards it.
• Another finding was that marital status was also their where one more segment is there is divorcee
segment some thing new can be brought by the bank for the divorcee segment in credit card a new offer
on their credit like offers on travelling dinning or entertainment factor.
• Also married people use more credit card for online purchase then other new offers should be provided
to them.
• Approaching and making contact to small to big dealers and ask them to encourage consumer more to
use credit card .
• HDFC bank have good hold on rural area but credit card usage is low so they can introduce a card for
the farmers and small MSME’s to encourage the use of credit card in rural area .
84

85. Promotional strategy
• New add campaign like which can direct connect with customer emotionally and
provide some type of positive opinion in the mind of the customer .
• Using both digital and traditional platform to promote the its cards with small
few second videos and creating a very distinguished identity for itself in the mind
of the customer .
• Creating interesting jingeles and unique tunes which is common but they can
bring some thing new this a well proven idea.
• Try to penetrate in rural market by some new interesting add related to rural
area .
Pricing strategy
• HDFC have little bit high charges compare to other bank so they can reduce the charge .
• they can also increase the pay back period of 45 days .
• Provide better deals to customer with good tie up with other companies .
• Credit card is the most prefferd card for online shopping so the pricing technique should be use in such
a way that it would benefit both the customer and the bank also
85

86. Conclusion
Indian banking sector is increasing day by day and has a huge
potential in it with being digitalized and mobile banking and after
the sector performance I will come to HDFC bank which I have to
work it’s a market leader and out performing in and every segment
it provide weather it debit card ,loan or credit card and after going
to it balance sheet it growing every with strong hold on rural to
urban areas .HDFC develops various plans for credit cards which
would be convenient according to the requirements of its targeted
market or customer and is thus beneficial to its customer in various
ways. It provides various technology which increases the satisfaction
level of its customers. Therefore the HDFC is one of the top 300
banks in the world. It is the 2nd largest bank amongst all the banks
of India.
86

87. Reference
-sector information – ibef .org. in
- Company details – rbi.org.in
- Perfomance analysis – hdfc.in
- Markwting mix –notesmatic .com
87