Summer Project Certificate
This is to certify that Mr. / Ms. _____________________________
Roll No. _________ a student of PGDM has worked on a summer
project titled ____________________________________________
____________ at ______________________ after Trimester-III in
partial fulfillment of the requirement for the Post Graduate
Diploma in Management programme. This is his/her original
work to the best of my knowledge. Date:___________
Name of Faculty
The purpose of this project report is not whose name appears but to acknowledge the value
additions ant contributions. Success can never be achieved through individual effort but through
guidance and teamwork.
I would like to take this opportunity to thank my industry guide Mr. RACHIT SRIVASTAV,
BRANCH MANAGER (DWARKA) and my faculty guide Prof R.J. MASILAMANI who
helped me to complete this challenging task. I would like to extend my gratitude to Mrs.
MANISHA VARMA, Personal Banker, HDFC bank (Dwarka) and MR. VIVEK PATHAK
Personal Banker Authorizer, HDFC bank (Dwarka) who went out of their way to guide me
throughout my project and gave varied insights. I am grateful to MR. SHUBHANKAR BOSE,
BRANCH MANAGER (ANAND NIKETAN) for his constant interest, involvement and
Besides, I thank all those invisible hands without whose contribution this project would not have
I would like to thank all the concerned executives and staff members of HDFC bank and other
bank staff members who acted as a constant support for me and also helped by providing
I would like to express my gratitude towards my parents for their moral and financial support in
completion of this project. Last but not least I would like to thank my colleagues and friends for
their valuable support during my summer internship.
TABLE OF CONTENTS
OBJECTIVE OF THE STUDY………………………………………………………..17
HDFC BANK PRODUCT PORTFOLIO……………………………………………..19
STRATEGIES OF HDFC BANK ……………….…………………………………….28
RETAIL BANKING- ANALYSIS…………………………………………………….35
HDFC BANK RETAIL PRODUCTS…………………………………………………37
SERVICE MARKETING-SERVQUAL MODEL ON HDFC BANK……………..77
ANALYSIS & RECOMMENDATIONS……………………………………………..86
The pace of development for the Indian banking industry has been tremendous over the past
decade. As the world reels from the global financial meltdown, India’s banking sector has been
one of the very few to actually maintain resilience while continuing to provide growth
opportunities, a feat unlikely to be matched by developed markets around the world. Transition
from class banking to mass banking and increased customer focus is drastically changing the
landscape of Indian banking. Expansion of retail banking has a lot of potential as retail assets are
just 22% of the total banking assets and the contribution of retail loans to GDP is a mere 6% in
India compared to 15% in China. This report discusses the retail products available with HDFC
bank and compares them with the products of competitor banks. This paper describes work
undertaken to determine both retail customer and staff perceptions of those factors which
determine service quality.
The paper presents some conclusions of significance for retail
banking in particular, and service providers in general. It provides a useful comparison of
different banks with its key competitors i.e. ICICI bank, AXIS bank, KOTAK MAHINDRA
bank and PUNJAB NATIONAL bank and presents the attributes of service marketing with the
help of SERVQUAL model. It outlines the implementation of the SERVQUAL model in the
bank’s subsequent quality improvement programme, as evidenced through the bank’s customer
satisfaction endeavors and also what information I receive through customer interaction and by
interaction in different banks. With time it has emerged consistently in the recent services
marketing literature is the importance of frontline employees in service delivery. The internal
marketing concept is based on the belief that a firm’s internal market/employees can be
motivated to strive for customer-consciousness, market orientation and sales-mindedness through
the application of accepted external marketing approaches and principles. This project considers
that the objectives of the firm could be achieved by aligning them with the values to frontline
employees as well as with the customers. The information was gained after continuous
interaction from the customers and the different banks and analyzing their culture.
Introduction to banking
Changing face of banking as a service industry
Banking in India has changed with time, it has seen a revolution and it has been growing. India
has experienced tremendous reform in financial and banking sector. The jump of economy from
the manufacturer industry, which used to be the most revenue generating industry, to the service
industry has seen the makeover of the banking sector. The banking sector is one of the largest
service providing sectors in India. These services are of utmost importance to the customers as it
takes care of their financial needs, in fact even maintain them. Now this concept of banks as the
service provider has underwent transformation as the concept of services is growing and has
become more and more complex. In India the banking sector is segregated as public or private
sector banks, cooperative banks and regional rural banks. Foreign banks have been given a
different head followed by upcoming foreign banks in this section. Due to this the customers
demand has seen a major rise.
These changes has given rise to the need of the banking industry to analysis their competition
and to have a defined marketing strategy , to become the leader in providing the bouquet of
services at customers end as well as giving them the best financial advice. The Indian banking
industry with time has achieved an astonishing and tremendous growth rate. When asked from
bank executives or rather the expert in the field, the revenue from the banks has been growing
and has recorded positive results for the year 2009-10. According to them the growth must have
been around 15-20% and is expected to grow more than 20% in the upcoming years.
Figure- Projected growth rate for banks
The development of technology has led to a more convenient retail banking system. ATM,
Mobile banking, SMS banking and most popular these days net banking facilities are available to
and being increasingly availed of by customers. With more persons open to the concept of easy
banking, all the leading banks have started strategizing on the concept of convenient banking
looking at the fast growing needs of the customers. Now the banks are striving to achieve this by
having a cost effective approach, which means that to achieve maximum of profit but with
minimum of cost. The banks now have such a close competitive angle in almost all of its
products and services within the banking area that it has become difficult for the customers to
distinguish between them. A progressively growing balance sheet, higher pace of credit
expansion, expanding profitability and productivity akin to banks in developed markets, lower
incidence of nonperforming assets and focus on financial inclusion have contributed to making
Indian banking vibrant and strong. Indian banks have begun to revise their growth approach and
re-evaluate the prospects on hand to keep the economy rolling. The way forward for the Indian
banks is to innovate to take advantage of the new business opportunities and at the same time
ensure continuous assessment of risks.
Our country with time has seen many collaborations in this sector with foreign banks taking
large stakes in Indian banks. This has widened the horizons for banking services considerably
and enabled operations on a much higher scale to meet the growing demands of customers. Some
of the foreign banks operating successfully in India are ABN-AMRO, Citi Bank, Deutsche
Bank, HSBC, Standard Chartered Bank and etc.
The Indian banks have now become focused on being customer centric and the future challenge
in front of them is to become a global brand example by providing an exhilarating experience to
the customers in the service industry without compromising on the profit. For this the banks need
to have a competition analysis of their competitive banks and by being able to develop unique
marketing strategy for penetrating within the market.
HDFC BANK– company overview
HDFC bank was among the few private banks to have started their operations in 1994 after the
government of India allowed new private banks to emerge in Indian banking sector. Housing
development and Finance Corporation of India has been credited with being one of the best
financial bank in India with the track record of giving the best financial advice to its customers
and offering the best products and services in banking area. Due to its impeccable service offered
to the customer as per their demand and convenience, HDFC bank has become one of the leading
banks in India offering customer service. In fact customers credit it for being one of the finest in
customer service leading to easy and convenient banking. With its experience in the financial
markets, a strong market reputation, large shareholder base and unique consumer franchise,
HDFC has positioned itself as being the bank that cares for the customers. HDFC Bank provides
a variety of wholesale, retail, and depository financial services through more than 1,400 branches
and some 3,000 ATMs throughout India. Established by the Housing Development Finance
Corporation in 1994, the bank offers deposit accounts, loans, credit cards, insurance,
investments, and related services. HDFC Bank targets individual customers in the middle and
upper-class, as well as trusts, small businesses.
HDFC bank is a leading private sector bank and financial services company in India. The bank
aspires to be the preferred provider of financial services to upper- and middle-income individuals
and leading corporations in India. The strategy of the bank over the years have been to provide a
comprehensive range of financial products and services for the customers through multiple
distribution channels, with high quality service and superior execution of the services offered.
The bank principally deals into mainly three business activities which can be categorized as:
retail banking, wholesale banking and treasury operations.
The bank has achieved tremendous growth since it started its operations in January 1995. Over
the last five years it has expanded operations from 231 branches and 732 ATMs in 122 cities to
1,412 branches and 2,890 ATMs in 527 cities in India as on December 31, 2008. Additionally
the Bank has a branch in Bahrain and representative offices in the U.A.E and Kenya. During the
five years, bank‘s customer base grew from 3.40 million customers to over 17 million customers.
As with time the HDFC bank expanded its geographical reach and market penetration, with this
the bank’s assets also increased, and it grew from Rs. 30,424 crore as of March 31, 2003 to Rs.
183,185 crore as of December 31, 2008. The net income also recorded an increase from Rs. 388
crore for the fiscal year 2003 to Rs. 1,590 crore for the fiscal year 2008 at a compounded annual
growth rate of 32.60%.
Notwithstanding the pace of growth, the bank has maintained a strong balance sheet and a low
cost of funds. As of December 31, 2008 net non-performing assets constituted 0.6% of net
advances. The average non-interest bearing current accounts and low-interest savings accounts
represented 51.70% of total deposits for fiscal 2008. These low-cost deposits, which include the
cash float associated with bank’s transactional services, led to an average cost of funds including
equity for fiscal 2008 of 4.10%.
HDFC bank is a part of the HDFC group of companies founded by our principal shareholder,
Housing Development Finance Corporation Limited (“HDFC Limited”), which is a public
limited company established under the laws of India. HDFC Limited and its subsidiaries owned
19.38% of bank’s outstanding equity shares as of February 06, 2009.
The Bank has two subsidiaries: HDFC Securities Limited (“HSL”) and HDB Financial Services
Limited (“HDBFS”). HSL is primarily in the business of providing brokerage services through
the internet and other channels. HDBFS is a non-deposit taking non-bank finance company
(“NBFC”), for the establishment of which the Bank received Reserve Bank of India (“RBI”)
approval during the fiscal year 2008.
HDFC bank is a commercial bank of India, promoted by the housing development finance
corporation, a premier housing finance company of India. The company headquarters are situated
in Mumbai and has around all the branches in 528 cities which are all linked on an online realtime basis. HDFC bank is a type of public company and was founded by Mr. Deepak Parekh.
The bank has approximately total assets of INR 1006.82 billion. For the fiscal year 2008-09, the
bank has reported net profit of Rs.2, 244.9 crore, up 41% from the previous fiscal. Total annual
earnings of the bank increased by 58% reaching at Rs.19, 622.8 crore in 2008-09.
The chairman of HDFC is Mr. Jagdish capoor and Mr. Aditya Puri serves as the company
managing director. They have been responsible for making the company people’s company with
their efforts. The company revenue in 2009 Rs. 197.5 billion and its profit has been Rs. 2.24
billion. The company now has total assets of Rs. 1.8 trillion and has 52,687 employees currently
working with HDFC. The bank has about 570,000 shareholders. The shares are listed on the
Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository
Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
Acquisitions and Mergers
In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted by
Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000. This was
the first merger of two private banks in India. As per the scheme of amalgamation approved by
the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than
1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1, 22,000 crore
and net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity is
over Rs. 1, 63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower. The mergers can be termed as a quest for growth in the Indian banking environment.
The Board has constituted committees of Directors to take informed decisions in the best interest
of the Bank. These committees monitor the activities falling within their terms of reference.
Various committees of the Board were reconstituted during the year due to induction of
additional Director namely; Mr. Pandit Palande. The Board's Committees are as follows: The
Board's Committees are as follows:
Audit and Compliance Committee
Investors' Grievance (SHARE) Committee
Risk Monitoring Committee
Credit Approval Committee
The Premises Committee
Fraud Monitoring Committee
The Compensation Committee reviews the overall compensation structure and policies of the
Bank with a view to attract, retain and motivate employees, consider grant of stock options to
employees, reviewing compensation levels of the Bank's employees vis-à-vis other banks and
industry in general. The Bank's compensation policy is to provide a fair and consistent basis for
motivating and rewarding employees appropriately according to their job / role size,
performance, contribution, skill and competence. The Committee met 3 (three) times during the
The Premises Committee
The Premises Committee approves purchases and leasing of premises for the use of Bank's
branches, back offices, ATMs and residence of executives in accordance with the guidelines laid
down by the Board. The Committee is chaired by Mrs. Renu Karnad. The Committee met 4
(four) times during the year.
Fraud Monitoring Committee
Pursuant to the directions of the Reserve Bank of India, the Bank has constituted a Fraud
Monitoring Committee, exclusively dedicated to the monitoring and following up of cases of
fraud amounting to Rs.1 crore and above. The objective of this Committee is the effective
detection of frauds and immediate reporting thereof to regulatory and enforcement agencies and
actions taken against the perpetrators of frauds.
Customer Service Committee
Committee monitors the quality of services rendered to the customers and also ensures
implementation of directives received from RBI in this regard. The terms of reference of the
Committee are to formulate comprehensive deposit policy incorporating the issues arising out of
death of a depositor for operations of his account, the product approval process, and the annual
survey of depositor satisfaction and the triennial audit of such services. The Committee met 4
(four) times during the year.
HDFC Bank recognizes the importance of good corporate governance, which is generally
accepted as a key factor in attaining fairness for all stakeholders and achieving organizational
efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and
framework for managing and monitoring the bank in accordance with the principles of good
Code of corporate governance
The Bank believes in adopting and adhering to best recognized corporate governance practices
and continuously benchmarking itself against each such practice. The Bank understands and
respects its fiduciary role and responsibility to shareholders and strives hard to meet their
expectations. The Bank believes that best board practices, transparent disclosures and
shareholder empowerment are necessary for creating shareholder value. The Bank has infused
the philosophy of corporate governance into all its activities. The philosophy on corporate
governance is an important tool for shareholder protection and maximization of their long term
values. The cardinal principles such as independence, accountability, responsibility,
transparency, fair and timely disclosures, credibility etc. serve as the means for implementing the
philosophy of corporate governance in letter and spirit.
The Bank’s staffing needs continued to increase during the year particularly in the retail banking
businesses in line with the business growth. Total number of employees increased from 14878
as of March31, 2006 to 21477 as of March 31, 2007. The Bank continues to focus on training its
employees on a continuing basis, both on the job and through training programs conducted by
internal and external faculty. The Bank has consistently believed that broader employee
ownership of its shares has a positive impact on its performance and employee motivation. The
Bank’s employee stock option scheme so far covers around 9000 employees.
HDFC Bank has demonstrated very consistent delivery of performance over the last so many
years and has already notched up its place as the one of the largest private sector bank in the
country and the growth momentum is expected to continue. The bank has stepped up to retail
customer acquisition with deposit accounts increasing from 6.2 million to 8.7 million and total
cards issued (debit and credit cards) increasing from 7 million to 9.2 million (approx). Not only
the retail banking of HDFC is blooming day by day but its services offered in wholesale banking
has also given tremendous growth to the bank. The online banking system i.e. net banking has
been an eye attraction for the customers as it gives them fast and convenient banking. As already
mentioned about its growing distribution network the bank is continually planning for expansion
of the branches of the bank. Customers are efficiently serviced through telephone banking also.
The Bank's expansion plans take into account the need to have a presence in all major industrial
and commercial centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has
a strong and active member base. With the excellent distribution network HDFC aspires to have
as strong position in the market and with the customers.
HDFC bank has always aspired to become a world class bank and has been trying to adopt an
efficient and effective approach to understand the ever changing customer demands and to offer
them superior service. HDFC thus has been marketing itself with the tagline saying “we
understand your world”.
Now if one observes the revenue earned by HDFC during last year than it can be said that
revenue growth was driven principally by an increase in net income. The other income (non
interest revenue) increased primarily due to fees and commissions , profit/ (loss) on revaluation /
sale of investment and income from foreign exchange and derivates income. Operating (noninterest) expenses increased due to higher infrastructure and staffing expenses in relation to the
expansion in the branch network, and growth in the retail loan and credit card businesses.
net revenue breakdown FY09
treasury and other
Figure- HDFC bank revenue breakdown
Awards and achievements
HDFC has earned several awards for its growth and progressive services offered to the
customers. A few are listed below:
Corporate best bank award – Dun and Bradstreet –American Express corporate best bank
Best Bank Award in the private sector category- outlook money and NDTV profit
Best Retail Bank in India – The Asian banker excellence in retail financial services
Euromoney Awards 2009 -'Best Bank in India'
Economic Times Brand Equity & Nielsen Research annual survey 2009 Most Trusted
Brand - Runner Up
Asia Money 2009 Awards - 'Best Domestic Bank in India'
IBA Banking Technology Awards 2009-'Best IT Governance Award - Runner up'
Global Finance Award -'Best Trade Finance Bank in India for 2009
OBJECTIVE OF THE STUDY
The objective of this study is to study the products available with HDFC bank in the retail
category and to understand and analyze the marketing. Another objective is to compare them
with products provided by other banks in the retail category. The banks chosen for competitive
analysis are –
KOTAK MAHINDRA bank
PUNJAB NATIONAL bank
The study also aims to understand how HDFC bank works in the service marketing by using the
servqual model. The study will help to understand the following objectives:•
It will also help to understand and analyze the dimensions of the awareness and
satisfaction level of customers with regard to the services provided by the selected
branches of the major banking customers.
The study will help to identify and differentiate the best banking sector among the above
banks in terms of customer satisfaction,
To ascertain the relevant dimensions of service quality in banks, and,
To offer suggestions, if needed, based on the analytical results of the current study.
Hence, the study seeks to develop a common understanding of service quality in the banking
industry across different customer segments. The models of marketing like servqual model have
been used to analyze services of HDFC and strategic marketing of HDFC bank. It helps HDFC
bank to maintain a competitive edge.
The data was collected through two sources which help me understand the working of HDFC
bank and also make analysis for the project. The data was collected through following ways:Secondary sources- Secondary data provide a starting point for study and offer the valuable
source of information. The secondary data was the most important source for my project because
it helped in collecting desired information
Primary sources- Primary data are data freshly gathered for a specific purpose. The various
sources of primary data for my project are as follows.
Customers of different banks
People from industries
HDFC BANK PRODUCT PORTFOLIO
Products and services at a glance
HDFC Bank mainly provides three kinds of banking services:
NRI banking 17%
Figure- product breakup according to the customer preferences
If the customer needs to deal in foreign currency and keep tabs on exchange rates, transfer funds
to India, make payments etc, HDFC Bank has a range of products and services that a customer
can choose from to transact smoothly, efficiently and in a timely manner. HDFC Bank offers
quick, economical and convenient options to remit and transfer funds to India.
With HDFC Bank’s payment services, one can bid goodbye to queues and paper work. HDFC’s
range of payment options make it easy to pay for a variety of utilities and services. Bank offers
Private Banking services to high net worth individuals and institutions.
Corporate Banking reflects HDFC Bank’s strengths in providing corporate clients, a wide array
of commercial, transactional and electronic banking products. HDFC Bank acts as an active
medium between the government and the customers by means of various services.
HDFC deals with basically three areas which can be segmented as:•
Wholesale banking services
Retail banking services
It has entered the banking consortia of over 50 corporate for providing working capital finance,
trade services, corporate finance and merchant banking. It is also providing sophisticated product
structures in areas of foreign exchange and derivatives, money markets and debt trading and
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian
corporate to small & mid-sized corporate and agri-based businesses. For these customers, the
Bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The bank is
also a leading provider of structured solutions, which combine cash management services with
vendor and distributor finance for facilitating superior supply chain management for its corporate
customers. HDFC Bank has made significant inroads into the banking consortia of a number of
leading Indian corporate including multinationals, companies from the domestic business houses
and prime public sector companies. It is recognized as a leading provider of cash management
and transactional banking solutions to corporate customers, mutual funds, stock exchange
members and banks.
Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers
through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, Net Banking and Mobile Banking.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By March 2009, the bank had a total card base
(debit and credit cards) of over 13 million. The Bank is also one of the leading players in the
“merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit
cards acceptance at merchant establishments. The Bank is well positioned as a leader in various
net based B2C opportunities including a wide range of internet banking services for Fixed
Deposits, Loans, Bill Payments, etc.
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. These services are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.
fixed deposit Loans
- Savings Plus
5 year Tax
Gold Credit Card
- No Frills
- Payroll Salary
- Classic Salary
HDFC Bank Idea
- Regular Salary Merchant
HDFC Bank Idea
Easy Shop Gold
- Kisan No
- Kisan Club
Forex plus card
WHOLESALE BANKING AND OTHER SERVICES
Accounts & Deposits
•Rupee Saving a/c
RTGS – sub
•Rupee Current a/c
•Rupee Fixed Deposits
•Accounts for Returning
Other services like
Accounts & Deposits
-Loans Against Securities
-Loans Against Deposits
-Gold Credit Card
HDFC bank has been a consistent player in the banking industry and has always been trying to
produce the well balanced and right mix of products and services for both of its customers in
retail base and corporate base. HDFC bank operates in a highly automated environment in terms
of information technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its customers.
Multi-branch access is also provided to retail customers through the branch network and
Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in
acquiring the best technology available internationally, to build the infrastructure for a world
class bank. The Bank's business is supported by scalable and robust systems which ensure that
the clients always get the finest services bank offer. The Bank has prioritized its engagement in
technology and the internet as one of its key goals and has already made significant progress in
web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging
its market position, expertise and technology to create a competitive advantage and build market
In the era of globalization each and every sector faced the stiff competition from their
rivals. And world also converted into the flat from the globe. Private sector banks today used the
latest technology for the different transaction of day to day banking life. As we know that
Information Technology plays the vital role in the each and every industries and gives the
optimum return from the limited resources. Banks are service industries and today IT gives the
innovative Technology application to Banking industries. HDFC bank is the leader in the
industries and today IT and HDFC bank together combined they reached the sky. New
technology changed the mind of the customers and changed the queue concept from the history
banking transaction. Today there are different channels which are available for the banking
There are drastically changes seen in the use of Internet banking, in a year 2001 (2%) and in the
year 2008 (25%). This type of technology gives the freedom to retail customers. New and
improved technology results in the advantageous functioning of the bank smoothly and
HDFC BANK is the very consistent player in the new private sector banks. New private sector
banks to withstand the competition from public sector banks came up with innovative products
and superior service. Customer segments (retail & wholesale) account for 84% of Net revenue
(FY 2009) .Higher retail revenues partly offset by higher operating and credit costs. HDFC has
tried to equally well position itself to grow both segments.
The bank attributes its growth and continuing success to the following competitive strengths:
a) HDFC bank is a leader among Indian banks in the use of technology
Since the bank’s inception, it has made substantial investments in technology platform and
systems. Bank has built multiple distribution channels, including an electronically linked branch
network, automated telephone banking, Internet banking and banking by mobile phone, to offer
customers convenient access to our products. Technology platform has driven the development
of innovative products and reduced operating costs.
b) HDFC bank delivers high quality service with superior execution
Bank tries to deliver efficient service with rapid response time. Bank’s focus on personalized
service tries to draws customers to the products and increases existing customer loyalty.
c) HDFC offer a wide range of products
Whether in retail or wholesale banking, the bank tries to be a “one-stop shop” for the Customers’
banking needs. The wide range of products creates multiple cross-selling opportunities for bank
and improves customer retention rates.
d) HDFC claims to have an experienced management team
According to HDFC, many of the members of senior management team who have been with the
bank; since inception seem to have substantial experience in multinational banking.
HDFC BANK mission is to be “a World Class Indian Bank”, benchmarking themselves against
international standards and best practices in terms of product
offerings, technology, service
levels, risk management and audit & compliance. The objective is to build sound customer
franchises across distinct businesses so as to be a preferred provider of banking services for
target retail and wholesale customer segments, and to achieve a healthy growth in profitability,
consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest
levels of ethical standards, professional integrity, corporate governance and regulatory
compliance. Continue to develop new product and technology is the main business strategy of
the bank. Maintain good relation with the customers is the main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following:
•Increase market share in India’s expanding banking
following a disciplined growth
financial services industry by
strategy focusing on quality and not on quantity and
high quality customer service.
•Leverage our technology platform and open scalable systems to deliver more products to more
customers and to control operating costs.
•Maintain current high standards for asset quality through disciplined credit risk management.
•Develop innovative products and services that attract the targeted customers and address
inefficiencies in the Indian financial sector.
•Continue to develop products and services that reduce bank’s cost of funds.
•Focus on high earnings growth with low volatility
Support of various promoters
High level of services
Knowledge of Indian market
Right strategy for the right products.
Superior customer service vs. competitors
Great Brand Image
Products have required accreditations.
High degree of customer satisfaction.
Good place to work
Lower response time with efficient and effective service.
Dedicated workforce aiming at making a long-term career in the field.
Some gaps in range for certain sectors.
Problems of sales staff.
Processes and systems, etc.
Not been fully able to position it correctly
Profit margins will be good.
Could extend to overseas broadly.
New specialist applications.
Could seek better customer deals
Fast-track career development opportunities on an industry-wide
An applied research centre to create opportunities for developing
techniques to provide value-added services.
Growing Indian banking sector
People are becoming more service oriented
global market opportunity
•Legislation could impact.
•Great risk involved
•Very high competition prevailing in the industry.
•Vulnerable to reactive attack by major competitors
•Lack of infrastructure in rural areas could constrain investment.
•High volume/low cost market is intensely competitive.
Choice of channels for services
Maintaing public relationship
Strong marketing position
Personal banking for the customers
Focus on Relationship banking
Bank tries to establish a customer relationship management in almost every branch.
Customer centric technologies
Marketing campaigns launched by HDFC bank
HDFC Bank has launched neighborhood marketing initiatives in tier-two cities and towns to
create awareness about its various products and services. These initiatives are especially targeted
at those consumers who are not aware about the bank's various value-added services such as
direct banking facilities. These campaigns demonstrated the advantages of net banking and
mobile banking, as these concepts are relatively new to people living in smaller towns and cities.
The bank has also launched another initiative called “Business Ki Baten”, which is targeted at
areas where the bulk of the population comprises small businessmen. The bank would get
experts to talk on a number of issues such as value-add tax and sales tax. According to an article
in Hindu business line dated November 4, 2008, these campaigns provide bank with information
about customer preferences that can be used for mass media communication, making it more
effective. HDFC can measure the result of a campaign through the sales that they generate and
the customers that are added. There is a clear return on investment, which from a functional point
of view gives the team a stronger voice. HDFC has also been able to reduce ad spends by about
10-15 per cent and has also reduced the cost of acquisition. HDFC wants to create an
environment that is required to support customer intelligence that leads to database marketing.
HDFC bank has invested in many cross- selling activities. HDFC strategy has been not only the
acquisition of new customers but at creating product awareness, enhancing usage and also
providing value-added services to customers to reward them for their faith and loyalty. HDFC
also sends personalized mailers about their various products to the data base which they acquire.
HDFC tries to sell itself as one- stop financial super market.
Customers and Marketing- how is it done for retail products of the bank
The target market for retail services comprises upper- and middle-income persons and high net
worth customers. HDFC also target small businesses, trusts and non-profit corporations. The
marketing of products is done through branches, telemarketing and a dedicated sales staff for
niche market segments. HDFC also use third-party agents and direct sales associates to market
certain products and to identify prospective new customers. Additionally, bank obtains new
customers through joint marketing efforts with our wholesale banking department, such as our
Corporate Salary Account package. The marketing of auto loan and two-wheeler loan products
are done through joint efforts with relevant manufacturers and distributors.
There are programs that target other particular segments of the retail market. For example, the
private and preferred banking programs provide customized financial planning to high net worth
individuals in order to preserve and enhance their wealth. Private banking customers receive a
personal investment advisor who serves as their single-point HDFC Bank contact, and who
compiles personalized portfolio tracking products, including mutual fund and equity tracking
statements. HDFC bank private banking program also offers equity investment advisory
products. While not as service-intensive as the private banking program, preferred banking offers
similar services to a slightly broader target segment. Top revenue-generating customers of the
preferred banking program are channeled into bank’s private banking program.
RETAIL BANKING: AN ANALYSIS
Retail banking is typical mass-market banking where individual customers use local branches of
larger commercial banks. Services offered include: savings and checking accounts, mortgages,
personal loans, debit cards, credit cards, and so forth. This is very different from wholesale
RETAIL BANKING IN INDIA
India is poised to become the world's fourth largest economy in the span of two decades.
Economic prosperity is providing many in this populous nation with real purchasing power; it
simply is an opportunity that cannot be overlooked by global banks. During the last decade, India
has emerged as one of the biggest and fastest growing economies in the world. The strengthening
economy in India has been fueled by the convergence of several key influences: liberalization
policies of the government, growth of key economic sectors, development of an Englishspeaking, well-educated work force and the emergence of a middle class population.
REASONS FOR THE CHANGE OVER FROM CORPORATE BANKING
TO RETAIL BANKING:
The financial sector reforms undertaken by the Government since the year 1991 have
accelerated the process of disintermediation which has encouraged blue chip corporate to
access cheaper funds to meet their working capital requirements directly from investors
in India. The deregulation of markets and interest rates has lead to cut throat competition
among Banks for corporate loans and offer other valued services at comparatively
cheaper rates to big and high value corporate. In the process, most of the banks have
experienced substantial reduction in interest spreads and drain on their profitability.
The risks involved in corporate loans are very high as corporate have to keep all their
eggs in one basket. The risks involved in retail Banking advances are comparatively less
and well diversified as loan amounts are relatively small ranging from Rs. 5000 to Rs.
100 lack and repayable normally in short period of 3-5 years except housing loans
(where repayment period is long up to 15 years in some cases) and from fixed source of
income like salaries.
Whereas corporate loans give average return of just 0.5 to 1.5 percent only, the retail
advances offer attractive interest spread of 3to 4 percent, because retail borrowers are less
interest rate sensitive than the Corporate. Another reason for large interest spreads on
retail advances is that the retail customers are too fragmented to bargain effectively.
While corporate loans are subject to ups and downs in trade frequently, retail loans are
comparatively independent of recession and continue to deliver even during the sluggish
phase of economy.
Retail Banking gives a lot of stability and public image to banks as compared to
The greater amount of consumerism in the country with upswing in income levels of
burgeoning middle class, which has propensity to consume to raise their standard of
living, is enlarging the retail markets. Given the easy liquidity scenario in the country the
growth rate in this sector is likely to go up manifold in the years come.
Retail Banking clients are generally loyal and tend not to change from one Bank to
another very often. Large numbers of Retail clients facilitate marketing, mass selling and
ability to categorize/select clients using scoring system and data mining. Banks can cut
costs and achieve economies of scale and improve their bottom-line by robust growth in
retail business volume.
Through product innovations and competitive pricing strategies Banks can foster business
relationship with customers to retain the existing clients and attract new ones.
Innovative products like asset securitization can open new vistas in sustaining optimal
capital adequacy and asset liability management for banks.
Retail Banking offers opportunities to banks to cross sell other retail products like credit
card, insurance, mutual fund products and demat facilities etc. to depositors and
HDFC BANK RETAIL PRODUCTS: PERSONAL BANKING
HDFC bank principal banking activities consist of retail banking, wholesale banking and
treasury operations. The retail banking operations of the HDFC bank have been discussed below.
Retail Banking: Overview
HDFC bank considers itself a one-stop shop for the financial needs of upper- and middle-income
individuals. It provide a comprehensive range of financial products including deposit products,
loans, credit cards, debit cards, third-party mutual funds and insurance products, investment
advice, bill payment services and other services. It offers high quality service and greater
convenience by leveraging our technology platforms and multiple distribution channels. HDFC
bank goal is to provide banking and financial services to our retail customers on an “anytime,
anywhere, anyhow” basis. HDFC bank market services aggressively through its branches and
direct sales associates, as well as through the bank’s relationships with automobile dealers and
corporate clients. What the bank does is to establish a relationship with a retail customer and
then expand it by offering more products and expanding their distribution channels so as to make
it easier for the customer to do business with bank. Bank believes in this strategy, so that it can
lead to general growth of the Indian economy and the Indian upper and middle classes, can
afford bank’s significant opportunities for growth.
HDFC ‘s plan is to continue to expand their branch and ATM network as well as their other
distribution channels, subject to receiving regulatory approvals.
Retail Loans and Other Asset Products
HDFC Bank offers a wide range of retail loans, including loans for the purchase of
automobiles, personal loans, retail business banking loans, loans for the purchase of
commercial vehicles and construction equipment finance, two-wheeler loans, credit cards
and loans against securities. The retail loans were 59.6% of bank’s gross loans as of
December 31, 2008. Apart from the branches of the bank, HDFC use their ATM screens
and the Internet to promote its loan products and they also employ additional sales
methods depending on the type of products. HDFC bank themselves performs credit
analyses of the borrowers and the value of the collateral. The bank also buys mortgage
and other asset-backed securities and invests in retail loan portfolios through
assignments. In addition to taking collateral in many cases, HDFC bank obtains postdated checks covering all payments at the time a retail loan is made. It is a criminal
offense in India to issue a bad check. Though through my observation in bank I have seen
that bank also sometimes obtain irrevocable instructions to debit the customer’s account
directly for the making of payments. EMI calculator- The bank offers proper details on
how it is done in fact the bank makes sure that the customers are aware about its use and
how is it relevant. It makes use of amortization table for its calculation. The term and
EMI has been explained below.
Equated Monthly Installment (EMI)
An equated monthly installment (EMI) is the fixed monthly payment made by a borrower
to the lender each calendar month. The amount of the EMI depends upon the loan
amount, interest rate charged for the loan and the duration in which the loan is to be
repaid. The EMI is made up of two parts, the principal amount and the interest on the
principal amount divided across each month in the loan tenure. The EMI is always paid
up to the lender on a fixed date each month until the loan is paid off in full at the end of
the tenure. The benefit of an EMI for borrowers is that they know precisely how much
money they will need to pay toward their loan each month, making the personal
budgeting process easier.
Amortization Tables and Why They Are Useful
Now, one might assume that the EMI is applied in equal parts towards the principal and
the interest every month, however this not the case. During the initial years the interest
component repaid is higher and during the latter years of repayment the principal
component is higher. While a portion of every payment is applied towards both the
interest and the principal balance of the loan, the exact amount applied to principal each
time varies (with the remainder going to interest). An amortization schedule reveals the
amount applied towards interest, as well as the amount paid towards the principal
balance, with each payment. Initially, a large portion of each payment is devoted to
interest. As the loan matures, larger portions go towards paying down the principal. In
addition to breaking down each payment into interest and principal portions, an
amortization schedule also reveals the remaining principal balance on each payment date .
Loan repayment calculator
The following table shows the value and share of our retail loan products (net of loans
Particulars As at December 31, 2008 % of total value
Commercial Vehicle and Construction
Loans Against Securities
Two Wheeler Loans
Other Retail Loans
Total Retail Loans
HDFC bank offer secured loans at fixed interest rates for financing new and used automobile
purchases. In addition to their general marketing efforts for retail loans, HDFC market this
product through building their relationships with car dealers, corporate packages and joint
promotion programs with automobile manufacturers.
Commercial Vehicles and Construction Equipment Finance
HDFC bank provides secured financing for commercial vehicles and provides working capital,
bank guarantees and trade advances to customers who are transportation operators. In addition to
funding domestic assets, bank also finance imported assets for which they open foreign letters of
credit and offer treasury services such as forward exchange cover. To do this smoothly bank
coordinates with manufacturers to jointly promote their financing options to their clients.
The bank offer unsecured personal loans at fixed rates to specific customer segments, including
salaried individuals and self-employed professionals. In addition, they offer unsecured personal
loans to small businesses and individuals.
Loans against Securities
It also offers loans against equity shares, mutual fund units, bonds issued by the RBI and other
securities that are on our approved list. HDFC bank limits their loans against equity shares to Rs.
20 lacks per retail customer in line with regulatory guidelines and limits the amount of their total
exposure secured by particular securities. Bank lend only against shares in book-entry
(dematerialized) form, which ensures that they obtain perfected and first-priority security
interests. The minimum margin for lending against shares is prescribed by the RBI.
Two Wheeler Loans
HDFC offer loans for financing the purchase of scooters or motorcycles. The bank markets this
product in ways similar to their marketing of auto loans.
Retail Business Banking
HDFC bank address the borrowing needs of the community of small businessmen near the bank
branches by offering facilities such as credit lines, term loans for expansion or addition of
facilities and discounting of credit card receivables. The bank classifies these business banking
loans as a retail product. Such lending is typically secured with current assets as well as
immovable property and fixed assets in some cases. The bank also offer letters of credit,
guarantees and other basic trade finance products and cash management services to such
HDFC bank offer credit cards from the VISA and MasterCard stable including gold, silver,
corporate, platinum and titanium credit cards. As per the information gained from bank, the bank
had approximately 45 lacks cards outstanding as of December 31, 2008 as against 38 lacks as of
March 31, 2008.
Other Retail Loans
Such loans primarily include overdrafts against time deposits, health care equipment financing
loans, tractor loans, loans against gold and ornaments and small loans to farmers. Currently other
loans also include home loans disbursed by the erstwhile Centurion Bank of Punjab Ltd.
Retail Deposit Products
Retail deposits provide the bank with a low cost, stable funding base and have been a key focus
area for HDFC since commencing operations. Retail deposits represented 67% of bank’s total
deposits as of December 31, 2009. The following chart shows the value of our retail deposits by
our various deposit products as of the same date:
Type of Deposit Value (Rs. crore) % of Total
HDFC bank’s individual retail account holders have access to the benefits of a wide range of
direct banking services, including debit and ATM cards, access to the growing branch and ATM
network, access to other distribution channels and eligibility for utility bill payments and other
services. The retail deposit products include the following:
a) Savings accounts, which are demand deposits in checking accounts designed primarily for
individuals and trusts. These accrue interest at a fixed rate set by the RBI (currently 3.50% per
b) Current accounts, which are non-interest bearing checking accounts designed primarily for
small businesses. Customers have a choice of regular and premium product offerings with
different minimum average quarterly account balance requirements.
c) Time deposits, which pay a fixed return over a predetermined time period.
Bank also offers special value-added accounts, which offer the customers added value and
convenience. These include a time deposit account that allows for automatic transfers from a
time deposit account to a savings account, as well as a time deposit account with an automatic
overdraft facility. E-Broking accounts are offered as current accounts to customers of stock
brokers where all transactions are routed electronically between the broker and beneficiaries.
Other Retail Services and Products
The debit cards may be used with more than 400,000 merchant point-of-sale machines and over
30,000 ATMs in India and more than 2.90 crore merchant outlets and 10 lacs ATMs worldwide.
HDFC was the first in India to issue international Visa Electron debit cards on a nationwide basis
and currently issue both Visa and MasterCard debit cards.
Individual Depositary Accounts
Bank provides depositary accounts to individual retail customers for holding debt and equity
instruments. Securities traded on the Indian exchanges are generally not held through a broker’s
account or in street name. Instead, an individual will have his own account with a depositary
participant for the particular exchange. Depositary participants, including us, provide services
through the major depositaries established by the two major stock exchanges. Depositary
participants record ownership details and effectuate transfers in book-entry form on behalf of the
buyers and sellers of securities. We provide a complete package of services, including account
opening, registration of transfers and other transactions and information reporting.
Mutual Fund Sales
HDFC offer retail customers units in most of the large and reputable mutual funds in India. For
this bank earns front-end commissions for new sales and in some cases additional fees in
subsequent years. Bank distributes mutual fund products primarily through branches and private
HDFC has arrangements with HDFC Standard Life Insurance Company and Bajaj Allianz
General Insurance Company to distribute their life insurance products and general insurance
products to the customers. For this also bank earns upfront commissions on new premiums
collected as well as some trailing income in subsequent years while the policy is still in force.
HDFC bank also import gold bars for sale to retail customers through branch network.
Bank offer customers a broad range of investment advice including advice regarding the
purchase of Indian debt, equity shares, and mutual funds. Bank provides private banking
customers with a personal investment advisor who can consult with them on their individual
Bill Payment Services
Besides bank also offer customers utility bill payment services for leading utility companies
including electricity, telephone, mobile telephone and Internet service providers. Customers can
also review and access their bill details through direct banking channels. This service is valuable
to customers because utility bills must otherwise be paid in person in India. These services ARE
offered to customers through multiple distribution channels—ATMs, telephone banking, Internet
banking and mobile telephone banking.
Corporate Salary Accounts
HDFC offer Corporate Salary Accounts, which allow employers to make salary payments to a
group of employees with a single transfer. Bank then transfer the funds into the employees’
individual accounts, and offer them preferred services, such as preferential loan rates, and in
some cases lower minimum balance requirements.
Non-Resident Indian Services
Non-resident Indians are an important target market segment for Indian banking industry given
their relative affluence and strong ties with family members in India.
Retail Foreign Exchange
HDFC bank purchase foreign currency from and sell foreign currency to retail customers in the
form of cash, traveler’s checks, demand drafts and other remittances. Banks also provide out
foreign currency check collections.
HDFC Bank has been one of the pioneers in extending internet banking services to cater to
anytime, anywhere banking needs of its customers by leveraging on to its state-of-the-art
technology platforms. Internet Banking has also been exploited by hackers and fraudsters to
deceive the bank's customer and commit frauds. While the bank has best-of-the-breed solutions,
processes and people deployed to extend secure banking to its customers, it is important for our
customers to know that "SecUrity is incomplete without U".
HDFC bank’s Citizen's Charter offers relevant information about the products, facilities and
services we provide. Customers can also find out about the time norms for various banking
transactions, our policy on customer information, and the process followed for redressal of
Types of Deposit Accounts
While various deposit products offered by the bank are assigned different names, the deposit
products can be categorized broadly into the following types. Definition of major deposit
schemes are as under : •
"Demand Deposits " means a deposit received by the bank which is withdraw able on
"Savings Deposits" means a form of Demand Deposit which is subject to restrictions
as to the number of withdrawals as also the amounts of withdrawals permitted by the
bank during any specified period;
"Term Deposit" means a deposit received by the bank for a fixed period withdraw able
only after the expiry of the fixed period and includes deposits such as Recurring /
Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income
Certificate / Quarterly Income Certificate etc.
''Notice Deposit'' means Term Deposit for a specific period but withdraw able on
giving at least one complete banking day's notice;
"Current Account" means a form of Demand Deposit wherefrom withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are
neither Savings Deposit nor Term Deposit;
Account Opening & Operation of Deposit Account
Before opening any Deposit Account, the bank will carry out due diligence as required under
"Know Your Customer" (KYC) guidelines issued by RBI and or such other norms or procedures
adopted by the bank. If the decision to open an account of a prospective depositor requires
clearance at a higher level, reasons for any delay in opening of the account will be informed to
him and the final decision of the bank will be conveyed at the earliest to him.
The account opening forms and other material would be provided to the prospective depositor by
the bank. The same will contain details of information to be furnished and documents to be
submitted for verification and / or for record. It is expected of the bank official to explain the
procedural formalities and provide necessary clarifications sought by the prospective depositor
when he approaches the bank for opening a Deposit Account.
For deposit products like Savings Bank Account and Current Deposit Account, the bank will
normally stipulate certain minimum/average balances to be maintained as a part of the terms and
conditions governing operation of such accounts. Failure to maintain stipulated minimum/
average balance in the account will attract levy of charges as specified by the bank. For Savings
Bank Account, the bank may also restrict the number of transactions, cash withdrawals, etc., for
a given period. Similarly, the bank may specify charges for issue of cheque books, additional
statement of accounts, duplicate pass book, folio charges, etc. All such details, regarding terms
and conditions for operation of the accounts and schedule of charges for various services
provided will be communicated to the prospective depositor while opening the account.
Savings Bank Accounts can be opened for eligible person / persons and certain organizations /
agencies (as advised by Reserve Bank of India (RBI) from time to time).These accounts are
designed to help the individual (personal customers) to inculcate the habit of saving money and
to meet their future requirement of money. The amounts can be deposited/withdrawn from these
accounts by use of cheques/ATM. It helps customers to keep minimum cash at home besides
Current Accounts can be opened by Individuals / Partnership firms / Private and Public Limited
Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Term Deposit Accounts can be opened by Individuals / Partnership firms / Private and Public
Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc. Bank has tailored
various deposit schemes to suit the needs and expectations of investing people in every walk of
The due diligence process, while opening a Deposit Account will involve satisfying about the
identity of the person, verification of address, satisfying about his occupation and source of
income. Obtaining introduction of the prospective depositor from a person acceptable to the bank
and obtaining recent photographs of the person/s opening / operating the account are part of the
due diligence process.
In addition to the due diligence requirements, under KYC norms(i.e. know your customers) the
bank is required by law to obtain Permanent Account Number (PAN) or General Index Register
(GIR) Number or alternatively declaration in Form No. 60 or 61 as specified under the Income
Tax Act / Rules.
Deposit Accounts can be opened by an individual in his own name (status: known as account in
single name) or by more than one individual in their own names (status: known as Joint
Account). Savings Bank Account can also be opened by a minor jointly with natural guardian or
with mother as the guardian (Status: known as Minor's Account). Minors above the age of 12
will also be allowed to open and operate Saving Bank Account independently.
Operation of Joint Account: The Joint Account opened by more than one individual can be
operated by single individual or by more than one individual jointly. The mandate for operating
the account can be modified with the consent of all account holders. The Savings Bank Account
opened by minor jointly with natural guardian / guardian can be operated by natural guardian
The joint account holders choose any of the following options for the disposal of balance in the
Either or Survivor : If the account is held by two individuals say, A & B, the final balance
along with interest, if applicable, will be paid to survivor on death of any one of the
Anyone or Survivor/s : If the account is held by more than two individuals say, A, B and
C, the final balance along with interest, if applicable, will be paid to the survivor on death
of any two account holders.
The above mandates will be applicable to or become operational only on or after the date of
maturity of term deposits. This mandate can be modified by the consent of all the account
At the request of the depositor, the bank will register the mandate / power of attorney given by
him authorizing another person to operate the account on his behalf.
The term deposit account holders at the time of placing their deposits can give instructions with
regard to closure of deposit account or renewal of deposit for further period on the date of
A statement of account will be provided by the bank to Savings Bank as well as Current Deposit
Account Holders periodically as per terms and conditions of opening of the account. Passbook
facility is available to all savings account holders free of cost.
Nomination Facility: Bank offers nomination facility in deposit accounts, safe deposit lockers,
articles in safe custody etc. Nomination facility is available on all deposit accounts opened by the
individuals. Nomination is also available to a sole proprietary concern account. Nomination can
be made in favor of one individual only. Nomination so made can be cancelled or changed by the
account holder/s any time. While making nomination, cancellation or change thereof, it is
required to be witnessed by a third party. Nomination can be modified by the consent of account
holder/s. Nomination can be made in favor of a minor also subject to other major individual
being named appointee(s) during the minority period. The bank recommends that all depositors
avail nomination facility. The nominee, in the event of death of the depositor/s, would receive
the balance outstanding in the account as a trustee of legal heirs.
The minor can open a savings bank account and the same can be operated by the natural
guardian or by the minor himself / herself, if he/she is above the age of 12 years. The account
can also be opened jointly. On attaining majority, the erstwhile minor should confirm the balance
in his/her account and if the account is operated by the natural guardian / guardian, fresh
specimen signature of erstwhile minor duly verified by the natural guardian would be obtained
and kept on record for all operational purposes.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,009 branches and about 5,219 ATMs in
India and presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany. The bank has a presence in
around 18 countries across the globe. They offer a wide gamut of retail products to its retail
customers and as well as other banking products related to the corporate segment. These
include ICICI personal loan, ICICI home loan, ICICI car loan, ICICI credit cards, ICICI
LAP etc. They also offer financial services that span asset management, venture capital,
investment banking, life and non-life insurance. ICICI equity shares find a place in the Bombay
Stock Exchange and National Stock Exchange in India with its American depositary receipts
listed in the New York Stock Exchange. ICICI Bank is one of the most popular banks in recent
times with its presence felt through a huge network of 1,495 branches and 4,816 ATMs across
the country, with profits running into 8.8 billion in the quarter ended June 2009. The bank also
has a presence in around 18 countries across the globe. They offer a wide gamut of retail
products to its retail customers and as well as other banking products related to the corporate
In 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE.
Merger of ICICI Bank with Bank of Madura Limited in fiscal 2001 and 2002.
In October 2001, ICICI Personal Financial Services and ICICI Capital Services wholly
owned by ICICI Limited were allowed to be merged with ICICI Bank, which was
formally approved by the RBI in April 2002.
K.V. Kamath is the Chairman of the ICICI group. Chanda D. Kochhar, the Managing
Director & CEO of ICICI Bank was recently named in Forbes list of the World’s 100
Most Powerful Women and ranked in the top 20 of the list compiled by Forbes, sharing
the honor with Sonia Gandhi, Congress President who ranked 13th.
ICICI bank retail products
Accounts and deposits
ICICI bank savings account offers the customers following features:•
Money Multiplier Facility
DD Call and Collect
Debit-cum-ATM Card - With ICICI Bank Savings Account the customers will get a debit card
that one can use to withdraw cash from any ATM. Customers may also use their debit card to
directly make purchases through a Visa/MasterCard POS (Point of Sale) machine available at
most stores, according to the bank this will help customers access their money from anywhere.
The ICICI Bank International debit card is a debit-cum-ATM card providing customers with the
convenience of acceptance at merchant establishments and cash withdrawals at ATMs. If the
customers want to withdraw cash from their ICICI Bank Savings account, they can walk into any
bank's ATM and use their ICICI Bank ATM-cum-Debit card for free. The above benefit is
available free of cost for the first 5 transaction per month upto Rs 10,000 per transaction.
Money Multiplier Facility-The Money Multiplier feature gives customer the liquidity of a
Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a
Fixed Deposit linked to customers Savings Account providing them the following facilities.
Maximum returns – According to the bank the customer’s money is never idle. Creation
of a linked FD ensures higher rate of interest on their Savings Bank Deposits. One can
issue instructions through any channel such as the ICICI Bank Branch, ICICI Bank Phone
Banking and ICICI Bank's Internet Banking for creation of Fixed Deposit(s) from the
surplus funds in your Savings Bank Account (subject to a minimum of Rs. 10,000). The
Fixed Deposits will be created in multiples of Rs. 5,000 for tenure of one year or more as
instructed by the customer.
Maximum Liquidity – The customers can withdraw the funds from their savings
account through any channel such as the ICICI Bank ATM, ICICI Bank Internet Banking
or by issuing a cheque etc. All linked Fixed Deposits will be enabled for automatic
Reverse Sweep in multiples of Rs. 5000 on a Last-In-First-Out (LIFO) basis when the
balance in the Savings Account falls below Rs.10, 000. The amount reverse swept will
earn interest rates at the applicable rate for the period that the deposit was held with the
Bank. The remaining amount will continue to earn higher interest at the original rate
applicable to the fixed deposit.
Auto Renewal - Under this facility, when their deposits fall due, the bank will
automatically renew the principal and accrued interest for the same tenure as the original
Internet Banking-For internet banking the customers need to log in with their user ID and
password and make banking a hassle-free routine. It is offered free of cost.
Customer Care – The bank has 24-hour Customer Care service always available to answer any
query or take their instructions.
Mobile Banking – The customers have an option of mobile banking through which they can do
Transferring of funds or getting to know their balance.
Standing Instructions - ICICI Bank accepts and supports Standing Instructions. According to
them the customers don't have to worry about the chore of carrying out a routine transaction.
They can just set up a Standing Instruction and then the bank will manage.
Nomination Facility – The customers may nominate a person as beneficiary to their account
proceeds. Nomination facility available for bank deposits.
There can be only one Nominee for a deposit account whether held singly or jointly.
A person legally empowered to operate a minor's account can file a nomination on behalf
of the minor.
Applicants can make nomination by filling up the Form prescribed under the Banking
Companies (Nomination) Rules 1985
The nomination details can be changed during the subsistence of the account relationship
by filling up the Form prescribed under the Banking Companies (Nomination) Rules
DD Call and Collect – according to the bank the customers need to wait in bank to collect DD
they can do so on the way to the branch, by just calling Customer Care and providing them
details of the DD to be prepared and collect it ready and signed at the branch.
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. As
an organization, one can opt for Salary Accounts to enable easy disbursements of salaries and to
have access to other benefits too. According to the bank with ICICI Bank Salary Accounts
employees will enjoy the convenience of having the largest network of ATMs, free 24 hour
phone banking and free internet banking. What the customers would require to do is to send
ICICI Bank an advice (in form of a cheque/debit instruction, ecs, etc) for the total salary amount
along with the salary details of the designated employees in a soft and hard copy format and
bank will credit the respective employees' accounts as per the company’s statement of advice.
ICICI Bank Salary Accounts has the benefits of reduce paper work and saves remittance costs
and also the employees receive instant credit of salaries. Besides all of the above, employees will
automatically become ICICI Bank account holders with special benefits and privileges of 8-8
banking, Investment advisory and much more. ICICI Bank also has a special offering: Defense
Banking Services designed exclusively for the armed forces.
The ICICI bank fixed deposits offer following advantages:
Wide range of tenures.
Choice of investment plans.
Partial withdrawal permitted.
Safe custody of fixed deposit receipts.
Auto renewal possible.
Loan facility available.
The customers can deposit any amount of money in Fixed Deposit for as long as they
wish between 15 days to 10 years. All fixed deposits come with a set choice of
investment plans. Fixed Rate Deposit accounts also provide Fixed Loans. Re-investment
Fixed Deposit rates do not change but works like a Recurring Debit Account transaction.
In other words, Re-investment Plans are compounded over traditional deposits and hence
are more lucrative over different time periods. Other features include:
Customers can avail of ICICI Bank Fixed Deposits for a minimum deposit of Rs 10,000.
Nomination facility available for bank deposits.
There can be only one Nominee for a deposit account whether held singly or jointly.
A person legally empowered to operate a minor's account can file a nomination on behalf
of the minor.
Applicants can make nomination by filling up the Form prescribed under the Banking
Companies (Nomination) Rules 1985.
The nomination details can be changed during the subsistence of the account relationship
by filling up the Form prescribed under the Banking Companies (Nomination) Rules
Choice of two investment plans:
Interest payable monthly or quarterly as per your convenience
Maturity period ranges from 15 days to 10 years
Interest is compounded quarterly and reinvested with principal amount
Maturity period ranges from 6 months to 10 years
Fixed Deposits at ICICI Bank comes with nomination facility. The bank also offers online access
to Fixed Deposits through their Internet Banking channel. Internet Banking at ICICI Bank allows
customers to connect to their Credit Card, Loan and their Fixed Deposit with their savings
account. In re-investment deposits, the interest is compounded quarterly and reinvested with the
principal. Traditional term deposits provide tax shelter and shield you from factors affecting
fixed deposits in India over longer periods of fixed time.
All the facilities available with ICICI bank can be listed as follows.
ICICI Bank has the following channels through which it offers its products and services to its
Products and services
ICICI Bank offers a host of products and services to its clients, which include Deposits, Loans,
Cards, Investments, Insurance, Demat, NRI Services and Online Services etc.
Following deposits are offered:
Special Savings Account
Life Plus Senior Citizens Savings Account
Tax-Saver Fixed Deposit
Young Stars Savings Account
Child Education Plan
Advantage Woman Savings Account
Resident Foreign Currency (Domestic) Account
No Frills Account
Rural Savings Account
People's Savings Account
Self Help Group Accounts
Freedom Savings Account
ICICI Bank offers following loan facilities:
Loan Against Property
Two Wheeler Loans
Commercial Vehicle Loans
Loans Against Securities
Loan Against Gold Ornaments
ICICI Bank is India's largest issuer of credit cards. It also offers other types of cards. The various
cards offered by ICICI bank are as below:
Axis Bank, previously known as UTI Bank, is one of the leading Banks of India along with
HDFC Bank and ICICI Bank. Established in 1994, it's the first of the new private sector banks in
India to start its operations, when Government of India opened the gate for the private banks to
flock into the Indian financial market. Though the bank started its operation with the name UTI
Bank, but later, in order to avoid ambiguities and confusion with other discrete entities carrying
the same name, it changed its name to its current form (Axis Bank) in April 2007. Axis Bank
Limited recorded a total income of Rs. 13,745.04 crore as on the year ended March 31, 2009. It
also made a net profit of Rs. 1,812.93 crore in the same financial year. Axis Bank offers a range
of financial products and services to its clients throughout the country. It also has special strength
in retail and corporate banking. Axis Bank offers following services:
The Personal Banking of Axis Bank includes following services:
Zero Balance Savings Account
Krishi Savings Account
Easy Access Savings Account
Prime Savings Account
Electronic Clearing Service
Direct Tax Payments
Supply Chain Management
Working Capital Finance
SME Fast Track
Following services are offered under this category:
Loan Against Property
Loan Against Security
Priority Debit Card
Platinum Credit Card
Gold Plus Credit Card
Gold Credit Card
Silver Credit Card
Secured Credit Card
Travel Currency Card
24 hour banking services
Following services are offered under 24 x 7 Banking:
Visa Money Transfer
KOTAK MAHINDRA BANK
Kotak Mahindra is among the leading financial organization of India, with a range of
financial services that caters to all customers' day to day requirements. Their products
spans from commercial banking, to stock broking, to mutual funds, to life insurance, to
investment banking – diverse needs of individuals and corporate are catered to. The Kotak
group has a net worth of more than Rs. 6,799 crore with the branches, franchisees,
representative offices and satellite offices spread across cities and towns in India. They
also have global offices in New York, London, San Francisco, Dubai, Mauritius and
Singapore. The Kotak Group offers their services to approximately 6.4 million customers.
The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital
Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto and
Kotak & Company. A stake in the group was taken in by industrialists Harish Mahindra
and Anand Mahindra and this is the time when the company changed its name to Kotak
Mahindra Finance Limited.
Kotak Group Products & Services
2. Credit Cards
3. Life Insurance
4. Mutual Funds
5. Car Finance
7. Institutional Equities
8. Investment Banking
9. International Business
10. Kotak Private Equity
11. Kotak Realty Fund
12. Wealth Management
About Kotak Mahindra Bank
The flagship company of Kotak Mahindra Group, Kotak Mahindra Finance Ltd was established
in 1985. The same got converted into a bank - Kotak Mahindra Bank Ltd in March 2003. Kotak
Mahindra bank has presence in commercial vehicles, retail finance, corporate banking, treasury
and housing finance.
Services of Kotak Mahindra Bank
Loan Against Property
PUNJAB NATIONAL BANK
The Punjab National Bank or PNB is one of the well known commercial and banking
institutions in India. It is the second largest government owned and regulated commercial
bank in the country and offers specialized solutions and financial services in a number of
sectors. Around 37 million customers are served by the bank on an average basis. The
customized facilities and services make it a trusted name in the domain of banking.
Growth of Punjab National Bank
Punjab National Bank was registered under the Indian Companies Act on 19 May in the year
1894 and its first office was set up at Anarkali Bazaar in Lahore. Since then, the bank has
become a great name in the field of banking and is very much preferred by the customers for the
wide range of its services. Today, the bank has around 4,904 branches in around 764 cities. Due
to its facilities and services of high standards, Punjab National Bank has also been the recipient
of a number of prestigious awards. It has been adjusted as the 248th biggest bank across the
globe according to a recent survey made by Bankers Almanac in London. The Economic Times
has also listed the bank as 38th among the premier 500 companies and the 9th among the most
trusted brands in India. The total asset value of the bank amounts to around US$60 billion. There
is also a subsidiary of the PNB in the United Kingdom. In addition the bank also has branches in
some other cities like:
Services of Punjab National Bank
Punjab National Bank offers financial solutions and services in an array of sectors. All these
services that are offered keep pace with the changing market trends in order to fulfill the needs
and preferences of the customers. Some of the well known sectors on which the main functions
of the bank are based are:
Agriculture finance services
Industrial finance services
Trade financial services
International banking services
PNB also has commercial relationship with more than 200 prestigious international banks across
the globe. It has the provisions of Rupee Drawing Arrangements with around 15 exchange
companies in the UAE and 1 in Singapore. In case of the personal banking segment, the bank
offers customized solutions to take care of almost all financial needs of the customers. Some of
the well known services that are offered in the bank are:
Savings Fund Account
Fixed Deposit scheme
Punjab National Bank is also a well known name in housing loan benefits. The bank offers both
short term and long term loans. The rates are also affordable and can be paid within a particular
time. The housing loans are given for a number of purposes such as:
Construction of a building
Purchase of a new house or a flat
Purchase of flat or house on a First Power of Attorney basis
For the purpose of repair or renovation of a house or a building
The PNB Housing Finance sanctions around 80% of the cost of the project. However, the
maximum amount is around Rs 50 lakh. The maximum loan amount for the purpose of
renovation and repair is Rs 5 lakh. In most cases, the loan is available for a period between 5
and 20 years before one becomes 65 years of age. The interest of the loan is based on the
reducing balance and the principal amount of the loan is also based on the repaying capability
of the borrower.
Mutual funds of Punjab National Bank
The mutual funds of Punjab National Bank are covered under the Principal PNB Asset
Management Company. Some of the well known schemes of mutual funds are:
Principal Growth Scheme
Principal balanced Fund
Principal Income Fund
Principal government Securities Fund
Principal Income Fund – Short Term Debt
Principal Cash management Fund
Principal Index Fund
Table showing analysis on different parameters:-
Rs. 5,000 in
metro or urban
Rs. 2,500 in
centers and Rs.
1,000 in rural
Rs 5,000 (urban
branches) or Rs
2,500 (rural &
Gold debit card
24 hour phone
The following list of the fixed deposits that was created by interacting with the customers as
what they prefer most of the listed banks. The customers said that they are not aware about the
FDs of Kotak Mahindra bank and don’t mind Punjab national bank as they trust the bank with all
of its products. The comparison is made on the basis of what customers think was beneficial.
When discussed with customers regarding their preference for the various Private Banks the
analysis from that was that ICICI Bank and HDFC are the two leading private banks of the city.
This is mainly because.
These two banks are the first private banks which has opened their branches in the city.
ICICI and HDFC brands name, play an important part in their success in the city because
people usually go through the name the company.
The difference lies within the few parameters that seem to differ with in the banking structure of
different banks especially public sector bank i.e. Punjab national bank and private sector banks
i.e. HDFC, ICICI, AXIS and KOTAK MAHINRDA bank. If one closely observes there is not
major difference between the services offered in these banks what differs is their banking culture
and how they offer their services. The factors which distinguish are•
Business process re-engineering
Proper and timely management of changes
Large number of transactions and changes
Availability of adequate finance
Strategic Human Resources changes
PSU banks which are a dominating force in the Indian banking system have lacked a
proactive HR environment. However, much has changed with the opening of other
sectors and increased competition from newer banks in the system. So Punjab national
bank has undergone a drastic change with in time and has been giving a serious
competition to HDFC bank. There is a realization that skill development is extremely
important for staff retention as well as the quality of manpower, and all banks whether
HDFC or any other bank had in place a system of continuous professional learning. A
few banks like Kotak Mahindra are time and again in the process of revamping their
training processes and their emphasis is being laid on hard as well as soft skills. Banks
are keen to tie up with external training agencies for in-house training. Now if one look
at the retail products offered at different banks then the savings account facility offered
at Punjab national bank finds more takers in the middle level earning group of people
like for example the total freedom savings account of PNB where there is no need to
maintain an average quarterly balance and even the fees that is deducted for other
accounts where the customers are not able to maintain average balance is much less than
HDFC, ICICI, AXIS and KOTAK MAHINDRA bank. Kotak Mahindra bank seems to
target customers of higher league as they don’t have many branches in Delhi as
compared to HDFC, ICICI, and AXIS bank. They have their own exclusive class of
customers and they market their products like that only. The current and savings account
of Kotak Mahindra bank is marketed with terms like” the power” to have an exclusive
banking service. Now HDFC bank has a very special way of treating its customers by
giving them the convenience of imperia customer programme, classic customer
programme and preferred customer programme. This helps the banks in attracting more
and more customers for the retail products. This is referred as priority banking. The plus
current account of HDFC bank is preferred more by the customers the minimum balance
required to be paid is RS. 1, 00,000 and the interest paid are nil. Punjab national bank
actually has been able to develop a more trustworthy relation with the customers since