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  1. 1. INTRODUCTION 1 THE TOPIC:1.1 OPENING SAVINGS ACCOUNTS BY MEETINGCUSTOMERSAt HDFC Bank, I was assigned with the topic as “Opening Savings Accounts byMeeting Customers” for my project work. I joined the company as a SalesExecutive. The selection of the topic was to know how the company generatesbusiness through them. Sales Executives are those sources of a company who havetheir own relations and personal contacts among common public that they use togenerate business through. Company has certain criteria to recruit these SalesExecutives.The steps are as follows.1.He should be at least 12th passed.2.He should have good personal contacts.3.He should have convincing power.4. He should be above 18th year old.Once he through all these steps of recruitment, he becomes the Sales Executive ofthe company and reserve the right to sale the various products to any prospectclient also he is paid the commission a certain percentage. There are some rewardand tour package also.
  2. 2. 1.2 REASON FOR SELECTION OF THIS TOPIC:The financial sector is one of the booming and increasing sectors in India. TheSales Executives are one of the most powerful, efficient and effective channelthrough which the company sales its various types of financial products. It is reallydifficult to convince customers and sell a single product but since these executiveshave their own personal contacts which make the entire task easier to sell aproduct. Whereas in my entire project work I found my interest in working in ateam, dealing with customers and finally convincing them to open an account withthe bank.1.3 IMPORTANCE TO THE COMPANY:The ultimate purpose of giving me this topic was to know about the customersperceptions about the different products of the bank, how these products can attractthem and how the company can generate maximum profit by convincing themthrough sales executives.1.4 LEARNING FROM THE STUDY:The process of recruitment for Sales Executives of HDFC Bank.Different products and services provided by the bank.Customers perception about the different products.The brand image of the bank.What are the problems faced by these sales executives daily basis.How to communicate with the customers.Different techniques of dealing with the customers.How to convince and convert a customer into a real customer.
  3. 3. 2. COMPANY PROFILE2.1 Banking IndustryA banking company in India has been defined in the Banking companiesAct, 1949 as one “which transacts the business of banking which means theaccepting, for the purpose of lending or investment, of deposits of money from thepublic, repayable on demand or otherwise and withdrawals by cheque, draft, orderor otherwise ”Banking is an important element of economy’s Indianbanking system overt past few decades, it has played very effective rolein mobilization of savings of the economy, spreading in banking habit to thefurthest corner of the country and large entrepreneurial base. Indian banks havemultiplied their activities in volume, variety and geographical base to meetthe growing needs of the society. The old methods and techniques replaced by newtechniques of viability need based formation of finance schemes and marketingInstead of working for profits, they are required to participate in nation buildingactivities and help in bringing socio economic change. Banks are new centre oftrade, commerce and business in a country. Banking plays a very i mp o r t a n tr o l e i n t h e e c o n omi c d e v e l o p me n t o f a l l n a t i o n o f t h e wo r l d .I n d u s t r i a l r e v o l u t i o n t h a t t o o k p l a c e i n t h e e c o n o mi c d e v e l o p me n to f a l l n a t i o n s o f t h e wo r l d . Industrial revolution that took place inEuropean countries in 18 th a n d 1 9 th centuries would not have taken placewithout the evolution of good banking system. Banking is life blood of moderncommerce. It is very important to study the concept of services as banks arecategorized into service sector: service as deeds, processes and performances. Theservice sector of an economy is going through a period of almost revolutionaryproportion in which established ways of doing business continue to be shuntedaside.The banking system in India constitutes the core of the financial sector. It plays asignificant role in the process of economic growth of the country. Its efficiency anddevelopment thus are vital for the country’s economic progress.Commercial banks are the hub of the Indian financial system. Indiancommercial banks are organized as the joint stock banks, both in the publicsector and private sector.
  4. 4. 2.2 Public sector banksBanking is one of the most important elements of economy. Indian banking systemover p a s t f e w d e c a d e s h a s p l a ye d a v e r y e f f e c t i v e r o l e i nmo b i l i z a t i o n o f s a v i n g s o f t h e economy spreading in banking habit to thefurthest corner of the country and enlargedentrepreneurial base. Indian banks havemultiplied their activities in volume variety andg e o g r a p h i c a l c o v e r a g e t ome e t t h e g r o wi n g n e e d s o f s o c i e t y, t h e o l d me t h o d s a n d techniques ofviability growth based formation of finance schemes of marketing. Insteadofworking for profits, they are required to participate in the nation building activitiesandhelp in bringing socio-economic change.Banking transactions carried on by anyindividual or firm engaged in providing financialservices to consumers, businessesor government enterprises. In the broad sense, a bank isa financial intermediarythat performs one or more of the following functions: safeguardsa n d t r a n s f e rof funds, guarantees credit worthiness and exchangem o n e y . S u c h institutions as commercial banks, central banks, organizationalbanks, trust companies,finance companies, life insurers and investment bankersprovide these services. A normalend mean common definition of a bank is afinancial intermediary that accepts, transfer and most important creates deposits.This includes such deposits institutes as central banks, commercial banks, savingsand loan associates and mutual savings bank.B a n k s a r e mo s t f r e q u e n t l yo r g a n i z e d i n c o r p o r a t e f o r m a n d o wn e d b y e i t h e r p r i v a t e individual,government interests. Although non corporate bank that single proprietorshipandpartnership are find in other countries since 1863 all federally chartered bank intheUS must be corporations. Only a few states permit formation of non corporatebank. Allcountries subject their banks, however owned to government regulationsand supervision n o r ma l l y i mp l e me n t e d b y c e n t r a l b a n k s a u t h o r i t i e s .B a n k i n I n d i a s h o u l d d e v e l o p appropriate strategy and ensure propermarketing strategy and mistaking into account theeconomic, cultural, legal andpolitical environment. As toady in the changes word theneeds are changed asregards to bank as foreign players.M a r k e t i n g c o n c e p t s h o u l d b e f o l l o we dw h e r e we t a l k a b o u t 4 P s ma r k e t i n g t o o l s i n regards to banks; we shouldinclude to more 2 Ps more, People and Procedures as well.An introduction of ATM24 hours online banking transactions etc their goal should not beof profit it shouldbe “growth and development with profit”The service sector of the economy isgoing through a period of almost revolutionary proportions in which establishedways of doing business continue to be shunted aside. Ithas been said that the onlyperson in the world who appreciates changes is wet baby.The service sector can bebest characterized by its diversity. Service organization range insize from hugeInternational Corporation in such fields as airlines, banking,
  5. 5. insurance,telecommunications, and hotel chain and freight transportation to a vastarray of locallyo wn e d a n d o p e r a t e d s ma l l b u s i n e s s a n d n u me r o u sb u s i n e s s t o b u s i ne s s s e r v i c e s . As currently defined by the governmentstatistics, services account for the two third to threeq u a r t e r s o f t h e g r o s sn a t i o n a l p r o d u c t . No t o n l y i n U S b u t a l s o i n ma n y o t h e rh i g h l y develop industrial nations.In the banking and financial services business:this area comprises many different typesof businesses, commercial and retail, witha common denomination, of being in businessto help customer to make or managemoney. A high level of trust is implicit and is evenmo r e c r i t i c a l i n t h e wa k eo f t h e s a v i n g s a n d l o a n s c a n d a l s o f t h e 1 9 8 0 s . Th e r e t a i l bankingindustry has found its historic image of aloofness, a managementThe public sectorbanks largely dominate the Indian banking industry. These banks tillearly 90s wereinvolved in the traditional banking business of deposits and credit lending.Theyperformed a supporting role in the overall growth of economy. While most of theseb a n k s u s e d t o f o c u s o n g r o wt h o f b a l a n c e - s h e e t p r o f i t a b i l i t y wa sn o t a s i g n i f i c a n t competition. In most of the banks government hasholding of 100% whereas in the few banks the state has fallen because ofpublic issue in the post liberalization period. Someof other leading banksin the segment also proposed to come out with an equity issue to raisefurther capital.The public sector banks have a strong distribution networkall over the country. But thes t r e n g t h o f e a r l i e r p e r i o d s h a s n o wc o mi n g o u t wi t h V R S t o b r i n g d o w n n u mb e r o f employees andimprove their efficiency ratio.The public sector banks still control a major share inbanking operation of the country.2.3 Private sector BanksThe banking regulation act was amended in 1993 permitting the entry ofnew privatesector banks. The act also specified certain criteria forestablishing new private sector banks. The criteria are as follows-1.the banksshould have a minimum net worth of Rs. 1 billion2.The promotersholding should be minimum 25% of paid up capital.The last decadewitnessed the maturity of India’s financial markets. Since 1991,everygovernments of India took major steps in reforming the financialsector of the country.The important achievements in the following fields areachieved in following heads:Financial MarketsIn the last decade, private sector banks / institutions played an important role. Theygrewrapidly in commercial banking and asset management business. With the
  6. 6. openings in theinsurance sector for these institutions, they started making debt inthe market.RegulatorsThe Finance Ministry continuously formulated major policies in the fieldof financialsector of the country. The Government accepted the importantrole of regulators. The Reserve Bank of India (RBI) has become moreindependent. Opinions are also that thereshould be a super- regulator for thefinancial services sector instead of multiplicity of regulators.2.4 The banking systemAlmost 80% of the business is still controlled by the Public Sector Banks(PSBs). PSBare still dominating the commercial banking system. Sharesof the leading PSBs arealready listed on the stock exchanges.T h e R B I h a sgiven licenses to new private sector ba nks as part of thel i b e r a l i z a t i o n process. The RBI has also been granting licenses toindustrial houses. Many banks aresuccessfully running in the consumersegments, industrial finance, retail trade, small business and agriculturefinances2.5 Overall approach to reformsThe last ten years have seen major improvements in the working ofvarious financialmarket participants. The government and the regulatoryauthorities followed the step bystep approach, not a bang one. The entry of foreignbanks has assisted in the introductiono f i n t e r n a t i o n a l p r a c t i c e s a n ds ys t e ms . On t h e w h o l e , t h e c u mu l a t i v e e f f e c t o f t h e developmentssince 1991 has been quite encouraging.2.6 PerformanceThe year 2005 has been good for the Indian banking. There was robustgrowth in creditflow during the year. Credit deposit ratio increased bymore than 10% and substantial p a r t o f t h e b a n k ’ s c o m m e r c i a lc r e d i t w e n t t o l a r g e b o r r o w e r s a t s u b - P L R r a t e s . Governmentwants to further push up the loan to GDP ratio from 43% to 50%. Themostsignificant jump in credit was to real estate sector.
  7. 7. 3. ORGANIZATION PROFILECOMPANY HISTORY3.1 FORMATION OF THE COMPANYThe Housing Development Finance Corporation Limited (HDFC) was amongst thefirst toreceive an in principle approval from the Reserve Bank of India (RBI) toset up a bank in the private sector, as part of the RBIs liberalization of the IndianBanking Industry in1994. The bank was incorporated in August 1994 in the nameof HDFC Bank Limited,with its registered office in Mumbai, India. HDFC Bankcommenced operations as aScheduled Commercial Bank in January 1995.PROMOTERHDFC is Indias premier housing finance company and enjoys an impeccable trackrecord inIndia as well as in international markets. Since its inception in 1977, theCorporation hasmaintained a consistent and healthy growth in its operations toremain the market leader inmortgages. Its outstanding loan portfolio covers wellover a million dwelling units. HDFC hasdeveloped significant expertise in retailmortgage loans to different market segments and alsohas a large corporate clientbase for its housing related credit facilities. With its experience in thefinancialmarkets, a strong market reputation, large shareholder base and uniqueconsumer franchise, HDFC was ideally positioned to promote a bank in the Indianenvironment.BUSINESS FOCUSHDFC Banks mission is to be a World-Class Indian Bank. The objective is tobuild soundcustomer franchises across distinct businesses so as to be the preferredprovider of bankingservices for target retail and wholesale customer segments, andto achieve healthy growth in profitability, consistent with the banks risk appetite.The bank is committed to maintain thehighest level of ethical standards,professional integrity, corporate governance and regulatorycompliance. HDFCBanks business philosophy is based on four core values - OperationalExcellence,Customer Focus, Product Leadership and People.
  8. 8. CAPITAL STRUCTUREThe authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-upcapital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of thebanks equity and about17.6% of the equity is held by the ADS Depository (inrespect of the banks AmericanDepository Shares (ADS) Issue). Roughly 28% ofthe equity is held by Foreign InstitutionalInvestors (FIIs) and the bank has about570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai andthe National Stock Exchange. The banks American Depository Sharesare listed onthe New York Stock Exchange (NYSE) under the symbol HDB.TIMES BANK AMALGAMATIONIn a milestone transaction in the Indian banking industry, Times Bank Limited(another new private sector bank promoted by Bennett, Coleman & Co./TimesGroup) was merged withHDFC Bank Ltd., effective February 26, 2000. As per thescheme of amalgamation approved bythe shareholders of both banks and theReserve Bank of India, shareholders of Times Bank received 1 share of HDFCBank for every 5.75 shares of Times Bank. The acquisition addedsignificant valueto HDFC Bank in terms of increased branch network, expanded geographicreach,enhanced customer base, skilled manpower and the opportunity to cross-sell andleveragealternative delivery channels.DISTRIBUTION NETWORKHDFC Bank is headquartered in Mumbai. The Bank at present has anenviable network of over 1229 branches spread over 444 cities acrossIndia. All branches are linked on an online real-time basis. Customers inover 120 locations are also serviced through Telephone Banking. TheBanksexpansion plans take into account the need to have a presence inall major industrial andcommercial centers where its corporatecustomers are located as well as the need to build astrong retail customerbase for both deposits and loan products. Being a clearing/settlementbank to various leading stock exchanges, the Bank has branches in thecenters where the NSE/BSE hasa strong and active member base.TheBank also has a network of about over 2526 networked ATMs across
  9. 9. these cities. Moreover,HDFC Banks ATM network can be accessed byall domestic and international Visa/MasterCard,Visa Electron/Maestro,Plus/Cirrus and American Express Credit/Charge cardholders.MANAGEMENTMr. Jagdish Capoor took over as the banks Chairman in July 2001. Prior to this,Mr. Capoor wasa Deputy Governor of the Reserve Bank of India.The ManagingDirector, Mr. Aditya Puri, has been a professional banker for over 25 yearsand before joining HDFC Bank in 1994 was heading Citibanks operations inMalaysia.The Banks Board of Directors is composed of eminent individuals with awealth of experiencein public policy, administration, industry and commercialbanking. Senior executivesrepresenting HDFC are also on the Board.Seniorbanking professionals with substantial experience in India and abroad headvarious businesses and functions and report to the Managing Director. Given theprofessional expertiseof the management team and the overall focus on recruitingand retaining the best talent in theindustry, the bank believes that its people are asignificant competitive strength.TECHNOLOGYHDFC Bank operates in a highly automated environment in terms of informationtechnology andcommunication systems. All the banks branches have onlineconnectivity, which enables the bank to offer speedy funds transfer facilities to itscustomers. Multi-branch access is also provided to retail customers through thebranch network and Automated Teller Machines(ATMs).The Bank has madesubstantial efforts and investments in acquiring the best technologyavailableinternationally, to build the infrastructure for a world class bank. TheBanks business issupported by scalable and robust systems which ensure that ourclients always get the finestservices we offer.The Bank has prioritized itsengagement in technology and the internet as one of its key goalsand has alreadymade significant progress in web-enabling its core businesses. In each ofits businesses, the Bank has succeeded in leveraging its market position, expertiseand technology tocreate a competitive advantage and build market share.
  10. 10. BUSINESS FOCUSHDFC Banks mission is to be a World-Class Indian Bank. The objective is tobuild soundcustomer franchises across distinct businesses so as to be the preferredprovider of bankingservices for target retail and wholesale customer segments, andto achieve healthy growth in profitability, consistent with the banks risk appetite.The bank is committed to maintain the highest level of ethical standards,professional integrity, corporate governance and regulatorycompliance. HDFCBanks business philosophy is based on four core values - OperationalExcellence,Customer Focus, Product Leadership and People.RATING 1. Credit RatingThe Bank has its deposit programs rated by two rating agencies - Credit Analysis& ResearchLimited (CARE) and Fitch Ratings India Private Limited. The BanksFixed Deposit programmehas been rated CARE AAA (FD) [Triple A] by CARE,which represents instruments consideredto be "of the best quality, carryingnegligible investment risk". CARE has also rated the banksCertificate of Deposit(CD) programme "PR 1+" which represents "superior capacity for repayment ofshort term promissory obligations". Fitch Ratings India Pvt. Ltd. (100%subsidiaryof Fitch Inc.) has assigned the "tAAA ( ind )" rating to the Banksdeposit programme, with theoutlook on the rating as "stable". This rating indicates"highest credit quality" where "protectionfactors are very high".The Bank also hasits long term unsecured, subordinated (Tier II) Bonds rated by CARE andFitchRatings India Private Limited and its Tier I perpetual Bonds and Upper Tier IIBonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CAREAAA" for the subordinatedTier II Bonds while Fitch Ratings India Pvt. Ltd. hasassigned the rating "AAA (ind)" with theoutlook on the rating as "stable". CAREhas also assigned "CARE AAA [Triple A]" for theBanks Perpetual bond andUpper Tier II bond issues. CRISIL has assigned the rating "AAA /Stable" for theBanks Perpetual Debt programme and Upper Tier II Bond issue. In each ofthecases referred to above, the ratings awarded were the highest assigned by therating agency for those instruments.
  11. 11. 2. Corporate Governance RatingThe bank was one of the first four companies, which subjected itself to a CorporateGovernanceand Value Creation (GVC) rating by the rating agency, The CreditRating Information Servicesof India Limited (CRISIL). The rating provides anindependent assessment of an entitys current performance and an expectation onits "balanced value creation and corporate governance practices" in future. Thebank has been assigned a CRISIL GVC Level 1 rating which indicatesthat thebanks capability with respect to wealth creation for all its stakeholders whileadoptingsound corporate governance practices is the highest.3.2 PRODUCT SCOPE: HDFC Bank offers a bunch of products and services to meet the every need of thepeople. Thecompany cares for both, individuals as well as corporate and small andmedium enterprises.For individuals, the company has a range accounts,investment, and pension scheme,different types of loans and cards that assist thecustomers. The customers can choose thesuitable one from a range of productswhich will suit their life-stage and needs.For organizations the company has a hostof customized solutions that range fromFunded services, Non-funded services,Value addition services, Mutual fund etc. Theseaffordable plans apart fromproviding long term value to the employees help in enhancinggoodwill of thecompany.The products of the company are categorized into various sections whichare as follows:Accounts and deposits.Loans.Investments and Insurance.Forex and payment services.CardsCustomer center.
  12. 12. 3.3 PRODUCTS AND SERVICES AT A GLANCEPERSONAL BANKING A. Accounts & Deposits - Regular Savings Account - Savings Plus Account- SavingsMax Account - Senior Citizens Account - No Frills Account - Institutional Savings Account - Payroll Salary Account- Classic Salary Account - Regular Salary Account - Premium Salary Account- Defence Salary Account - Kids Advantage Account - Pension Saving Bank Account - Family Savings Account - Kisan No Frills Savings Account - Kisan Club Savings Account - Plus Current Account - Trade Current Account - Premium Current Account - Regular Current Account - Apex Current Account - Max Current Account - Reimbursement Current Account - RFC - Domestic Account- Regular Fixed Deposit - Regular Fixed Deposit - Super-Saver Account - Sweep-In Account - HDFC Bank Preferred - Private Banking
  13. 13. B. Loans - Personal Loans - Home Loans - Two Wheeler Loans - New Car Loans - Used Car Loans - Overdraft against Car - Express Loans - Loan against Securities - Loan against Property - Commercial Vehicle Finance - Working Capital Finance - Construction Equipment Finance - Offers & Deals - Customer CenterC. Investments & Insurance - Mutual Funds - Insurance - Bonds - Financial Planning - Knowledge Centre - Equities & Derivatives - Mudra Gold BarD. Forex Service - Trade Finance - Travelers¶ Cheques - Foreign Currency Cash - Foreign Currency Drafts - Foreign Currency Cheque Deposits - Foreign Currency Remittances - Cash To Master - ForexPlus Card
  14. 14. E. Payment Services- Net Safe- Prepaid Refill- Bill Pay- Direct Pay- Visa Money Transfer- E-Monies Electronic Funds Transfer- Excise & Service Tax PaymentF. Access Your Bank- One View- Insta Alerts- Mobile Banking- ATM- Phone Banking- Branch NetworkG. Cards- Silver Credit Card- Gold Credit Card- Womans Gold Credit Card- Platinum plus Credit Card- Titanium Credit Card- Value plus Credit Card- Health plus Credit Card- HDFC Bank Idea Silver Card- HDFC Bank Idea Gold Card- Compare Card- Transfer & Safe- Track your Credit Card
  15. 15. H. Get More from Your Card- Offers & Savings- My Rewards- Insta Wonderz- Add-On Cards- Credit Card Usage Guide- Easy EMI- Net safe- Smart Pay- Secure Plus- My City Benefit Card- Debit Cards- Easy Shop International Debit Card- Easy Shop Gold Debit Card- Easy Shop International Business Debit Card- Easy Shop Womans Advantage Debit Card- Prepaid Cards- Forex Plus Card- Kisan CardI . Customer Centre- Offers & Deals- Winners of Contests & Promotions
  16. 16. WHOLESALE BANKING A. Corporate - Funded Services - Non Funded Services - Value Added Services - Internet Banking - B. Small & Medium Enterprises - Funded Services - Non-Funded Services - Specialized Services - Internet Banking - Financial Institutions - Mutual Funds - Stock Brokers3.4. MILESTONES IN THE HISTORYHDFC Bank began its operations in 1995 with a simple mission: to be a "World-class IndianBank". They realized that only a single-minded focus on productquality and service excellencewould help us get there. Today, they are proud to saythat they are well on our way towards thatgoal.It is extremely gratifying that theirefforts towards providing customer convenience have beenappreciated bothnationally and internationally.2007Business Today-Monitor Group survey One of Indias "Most Innovative Companies".Financial Express-Ernst & Young Award Best Bank Award in the Private Sector category.
  17. 17. Global HR Excellence Awards – Asia Employer Brand of the Year 2007-2008¶-Pacific HRM Congress: Award- First Runner-up.Business Today Best Bank AwardDun & Bradstreet - American Express Corporate Best Bank Award 2007The Bombay Stock Exchange and µBest Corporate Social Responsibility Practice¶Nasscom Foundations Business for Award.Social Responsibility Awards 2007Outlook Money & NDTV Profit Best Bank Award in the Private sectorcategory.The Asian Banker Excellence in Retail Best Retail Bank in India.Financial Services Awards2006Business Today Best Bank in India.Forbes Magazine One of Asia Pacifics Best 50 companies.Business World Best listed Bank of India.The Asset Magazines Triple A Country Best Domestic Bank.AwardsAsia Money Award Best Local Cash Management Bank inLarge and Medium segments.Euro Money Award "Best Bank" in India.
  18. 18. 2005Asia money Awards Best Domestic Commercial BankAsia money Awards Best Cash Management Bank - India .The Asian Banker Excellence Retail Banking Risk Management Award in India.Hong Kong-based Finance Asia Best Bank in IndiamagazineEconomic Times Awards "Company of the Year" Award for Corporate Excellence.2004Asiamoney Awards Best Local Cash Management Bank inIndia US$11-100mAsiamoney Awards Best Local Cash Management Bank inIndia >US$501mAsiamoney Awards Best Local Cash Management Bank inIndia 1989-2004 (poll of polls)Asiamoney Awards Best Overall Domestic Trade FinanceServices in India - 2004Asiamoney Awards Most Improved company for BestManagement Practices in India - 2004Business World One of Indias Most RespectedCompaniesForbes Global Best Under a Billion, 100 Best SmallerSize
  19. 19. Enterprises in Asia/Pacific andEurope - 2004Asian Banker Awards Operational Excellence in RetailFinancial Services - 20042003Business Today Best Bank in India -2003NASSCOM & - Best IT User in Banking -2003ITUsers AwardsForbes Global Best Under a Billion, 200 Best SmallCompanies - 2003The Asset Triple A Country Awards Best Domestic Bank in India -2003BusinessWorld - The Business World One of Indias Most RespectedCompaniesMostRespected Company AwardsThe Asset magazine Best Cash Management BankThe Asset magazine Best Trade Finance BankFE-Ernst & Young Best Banks Survey Best New Private Sector Bank - 2003Outlook Money Best Bank in the Private Sector ± 20032002Hong Kong-based Finance Asia Best Local Bank - IndiamagazineHong Kong-based Asia magazine "Best Local Bank - IndiaEuro money magazine "Best Bank in IndiaAsia money magazine Commercial Bank in India 2002
  20. 20. 2001Hong Kong-based Finance Asia Best Domestic Commercial Bank - IndiamagazineHong Kong-based Finance Asia "Best Domestic Commercial Bank -IndiamagazineEuromoney magazine "Best Bank in IndiaForbes Global Named in The 300 Best SmallCompanies one of the "20 for 2001" bestFE-E&Y Best Banks small companiesThe Economic Times Awards for Corporate Excellence as theEmerging Company of the Year2000Hong Kong-based Finance Asia Best Domestic Commercial Bank - IndiamagazineHong Kong-based Finance Asia "Best Domestic Commercial Bank -IndiamagazineEuromoney magazine Best Domestic BankBusiness India " India s Best BankForbes Global Named in The 300 Best SmallCompanies one of the "20 for 2001" bestFE-E&Y Best Banks small companies
  21. 21. 3.5 MERGERHDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29TheBoards of HDFC Bank and Centurion Bank of Punjab met on 25 February, 2008and approved, subject to due diligence, the share swap ratio for the proposedmerger of Centurion Bank of Punjab with HDFC Bank. The Scheme ofAmalgamation envisages a share exchange ratio of one share of HDFC Bank fortwenty nine shares of Centurion Bank of Punjab. The combined entity would havea nationwide network of 1,148 branches (the largest amongst private sector Banks)a strong deposit base of around Rs. 1,200 billion and net advances of around Rs.850billion. The balance sheet size of the combined entity would be over Rs.1,500 billion. Commenting on the proposed merger, Mr. Deepak Parekh, Chairman,HDFC said, ³We were amongst the first to get a banking license, the first to do amerger in the private sector with Times Bank in 1999, and now if this dealhappens, it would be the largest merger in the private sector banking space inIndia. HDFC Bank was looking for an appropriate merger opportunity that wouldadd scale, geography and experienced staff to its franchise. This opportunity aroseand we thought it is an attractive route to supplement HDFC Banks organicgrowth. We believe that Centurion Bank of Punjab would be the right fit in termsof culture, strategic intent and approach to business.´Mr. Aditya Puri, Managing Director, HDFC Banksaid, ³These are exciting times for the Indian banking industry. The proposedmerger will position the combined entity to significantly exploit opportunities in amarket globally recognized as one of the fastest growing. I m particularly bullishabout the potential of business synergies and cultural fit between the twoorganizations. The combined entity will be an even greater force in the market. Mr.Rana Talwar, Chairman, Centurion Bank of Punjab stated, Over the last few years,Centurion Bank of Punjab has set benchmarks for growth. The bank today has alarge nation wide network, an extremely valuable franchise, 7,500 talentedemployees, and strong leadership positions in the market place. I believe that themerger with HDFC Bank will create a world class bank in quality and scale andwill set the stage to compete with banks both locally as well on a global level. Mr.Shailendra Bhandari, Managing Director and CEO, Centurion Bank of Punjab said, We areextremely pleased to receive the go ahead from our board to pursue thisopportunity. A merger between the banks provides significant synergies to thecombined entity. The proposed merger would further improve the franchise andcustomer proposition offered by the individual banks.´
  22. 22. 3.6 FINANCIAL FIGURE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008 Particulars Quarter Quarter Year ended ended ended 31.03.08 30.6.08 30.6.071. Interest Earned 3672173 206916 1011510 (a)+(b)+(c)+(d) a) Interest/discount on 263638 145362 696673 advances/bills b) Income on 951212 56047 287204 Investments c) Interest on balances 2426 5337 27239 with Reserve Bank of India and other interbank funds2. Other Income 59342 57254 2283153. A) TOTAL INCOME 1+2 421515 264170 12398154. Interest Expended 189826 108364 4887125. Operating Expenses i+ ii 128938 77438 374968 i. Employees Cost 54058 28388 130135 ii. Other operating 74880 49050 244437 Expenses6. TOTAL EXPENDITURE 318764 185808 863274 4+57. Operating profit before 102751 78361 376541 provision and contingencies
  23. 23. 8. Provisions (Other than tax) 34447 30712 148478 and contingencies9. Exceptional Item - - -10. Profit from ordinary activities 68304 47656 228066 before tax.11. Tax Expenses 21869 15533 6904512. Profit from ordinary activities 46435 32123 159018 after tax13. Extra Ordinary Items - - -14. Net profit 46435 32123 15901815. Paid up Equity share capital 42462 33319 35443 (Face value Rs. 10/- each)16. Reserves excluding - - 1114280 revaluation reserves (as per balance sheet of previous year) ANALYTICAL RATIOS i) Percentage of NIL NIL NIL shares held by government of India ii) Capital Adequacy 12.2% 11.1% 13.6% Ratio
  24. 24. iii) Earning Per Share (Rs) a) Basic EPS 11% 10% 46.2% before & after Extra ordinary Items (not annualized) b) Diluted EPS 10.8% 10% 48.2% before & after extraordina ry items (net of tax expense)-not annualized iv) NPA Ratios a) Gross NPA 150274 71016 90697 b) Net NPA 49607 21424 29852 c) % of Gross NPA to 1.5% 1.3% 1.3% Gross Advances d) % of Net NPA to Net 0.5% 0.4% 0.5% Advances v) Return on assets not 0.3 % 03% 1.3% annualizedPublic Share Holding (No. 342173776 250744008 27198992of shares)Percentage Of share 83.6% 75.8% 73.7%Holding
  25. 25. 3.7 QUALITY POLICYSECURITY:The bank provides long term financial security to their policy. The bank does thisby offering life insurance and pension products.TRUST:The bank appreciates the trust placed by their policy holders in the bank.Hence, itwill aim to manage their investments very carefully and live up to this trust.INNOVATION:Recognizing the different needs of our customers, the bank offers arange ofinnovative products to meet these needs.INTEGRITYCUSTOMER CENTRICPEOPLE CARE ³ONE FOR ALL AND ALL FOR ONE´TEAM WORKJOY AND SIMPLICITY
  26. 26. 4. RESEARCH OBJECTIVES & SCOPE OF RESEARCH PROJECT4.1 PROBLEM DEFINITION Sales Executives were with good background human being and through rigorous process of recruitment but still not able to perform up to the expectation level of company, HR is not able to sort out the problem why the performance is not coming even after giving the full marketing support. The communication technique and dealing with the customers is also a problem to the sales executives.4.2 OBJECTIVES OF RESEARCH PROJECT4.2.1 PRIMARY OBJECTIVES To open new savings accounts by convincing customers and to promote the benefits of those which are provided by the bank. o To find the different way of convincing customers. o To study brand image of the bank. o To increase the business of the bank.4.2.2 SECONDARY OBJECTIVES o To determine the need and purpose of a sales executive. o To understand the deciding criteria for people to become sales executive. o To offer suggestions based upon the findings.
  27. 27. 4.3 GEOGRAPHICAL SCOPE The same problem was with the all other branches of HDFC Bank even out of the Hyderabad city. The management is conducting the same research on a big ground while my contribution is tiny. Though my sample size and geographical area was defined and confine to a particular territory but the application of output from the research are going to be wide.4.4 PRODUCT SCOPE o Studying the increasing business scope of the bank. o Market segmentation to find the potential customers for the bank. o To study how the various products are positioned in the market. o Corporate marketing of products. o Customer’s perception on the various products of the bank.
  28. 28. 5. RESEARCH METHODOLOGY AND LIMITATIONS All the findings and conclusions obtained are based on the survey done in the working area within the time limit. I tried to select the sample representative of the whole group during my job training. I have collected data from people linked with different profession Hyderabad.5.1 RESEARCH PLAN5.1.1 Preliminary Investigation: o In which data on the situation surrounding the problems shall be gathered to arrive at o The correct definition of the problem. o An understanding of its environment.5.1.2. Exploratory Study: To determine the approximate area where the problem lies.5.2 RESEARCH DESIGNResearch was initiated by examining the secondary data to gain insight into theproblem. By analyzing the secondary data, the study aim is to explore the shortcomings of the present system and primary data will help to validate the analysis ofsecondary data besides on unrevealing the areas which calls for improvement.
  29. 29. 5.2.1 DEVELOPING THE RESEARCH PLAN:The data for this research project has been collected through self Administration.Due to time limitation and other constraints direct personal interview method isused. A structured questionnaire was framed as it is less time consuming, generatesspecific and to the point information, easier to tabulate and interpret. Moreoverrespondents prefer to give direct answers. In questionnaires open ended and closedended, both the types of questions has been used.5.2.2 COLLECTION OF DATASecondary Data: It was collected from internal sources. The secondary data was collected on the basis of organizational file, official records, news papers, magazines, management books, preserved information in the company’s database and website of the company.Primary data: All the people from different profession were personally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was direct personal interview through a structured questionnaire.5.3 SAMPLING PLAN Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics.Sampling Units: Different professionals Chartered Accountants, Tax Consultants, Lawyers, Business Man, Professionals and House Wives of Hyderabad.
  30. 30. Sample Technique: o Random Sampling o Research Instrument o Structured Questionnaire o Contact Method o Personal Interview5.4 SAMPLE SIZEMy sample size for this project was 200 respondents. Since it was not possible tocover the whole universe in the available time period, it was necessary for me totake a sample size of 200 respondents.5.5 DATA COLLECTION INSTRUMENT DEVELOPMENT The mode of collection of data will be based on Survey Method and Field Activity. Primary data collection will base on personal interview. I have prepared the questionnaire according to the necessity of the data to be collected.
  31. 31. 5.6 RESEARCH LIMITATIONS o It was not possible to understand thoroughly about the different marketing aspects of the Financial Consultant within 60 days. o As stipend, money was not given it was difficult to continue the project work. o All the work was limited in some limited areas of Hyderabad so the findings should not be generalized o The area of research was Hyderabad and it was too vast an area to cover within 60 days.
  32. 32. 6. CHAPTER DATA ANALYSIS , INTERPRETATION AND PRESENTATIONQ1. YOUR AGE ???TABLESerial No. Age Category No. Of Percentage Respondents1 18-23 yrs 40 20%2 24-29yrs 60 35%3 30-35yrs 70 30%4 35-39yrs 30 15% TOTAL 200 100%Base 200 respondentsSerial No. Category No. Of Percentage RespondentsSerial No. Age Category No. Of Percentage Respondents
  33. 33. Serial No. Age Category No. Of Percentage RespondentsSerial No. Age Category No. Of Percentage Respondents