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It gives me great pleasure in presenting the project report that gives the details of my project on Retail Banking Front Office Management Activity carried out at HDFC Bank Ltd.

Serial No. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 2 2.1 2.2 3 3.1 3.2 4 4.1 4.2 4.3

Particulars INTRODUCTION Banking industry profile An overview of Indian financial sector Commercial banks in India HDFC- introduction Founder Background Business objective Organizational Goal Board of Directors Future Head Office Capital Structure Distribution Network Products offered Microscopic study: A review of retail banking Meaning of retail banking Retail growth contributing factor Objective of the Study Primary Objective Secondary Objective Methodology for Project Work Method Method Of primary data collection Method of secondary data collection

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I thank to college guide Prof Chandan parsad for his kind and consistent guidance during the project work. It is impossible to list all the people who have helped me during my project. I take this opportunity to express my whole hearted thanks to Ms. Neha somani Anand vihar Back up Branch Manager of HDFC Bank Ltd., who has treated me as a bank employee & helped me in all my queries personally. I would also like to express my deep sense of gratitude towards all managers, staff, & to all those who directly or indirectly helped me in successfully execution of my work.

4.4 4.5 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

Observational design Methodology Process Data Analysis I. Real Players for particular Retail Bank Branch Welcome Desk Personal Bankers Personal Banker Authenticator Teller Counter Teller Counter Authenticator Branch Manager II. Teller counter Observation Opening Balance, Deposit, Withdrawal, Transfer Transactions, Cheque Clearing, Cheque digit, Travelers cheque, stop payment request, foreign currency cash, foreign currency DD, Fixed deposit amount Parking, Closing Balance. Significance of the particular Account Number Grouping Assignment Loan Activity For Express Loan Center Fixed Deposit Penetration Customer Relationship Analyzer (CRA) Monthly Activity Review Sheet (MARs) Individual Profile Information (IPI) Convenience Banking Channels Bill Pay Insta Alert Direct Banking Channels Phone Banking

5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21



5.22 5.23 5.24 5.25 5.26 5.27 6 7 7.1 7.2 7.3 7.4 8 9 10

Net Banking Mobile Banking XII. Other Important Financial Products Trust & Societies Account Institute & School Fees Collection Mudra Gold Bars Hypothesis Findings Primary Methods Secondary Methods Competitive Features of Retail Banking Conclusion Suggestion & Conclusion Limitation Bibliography


EXECUTIVE SUMMARY The MBA course offered by the Indraprastha University has its own unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period ranging from 4 weeks to 6 weeks after the second semester. The purpose of this internship is to enable the students to appreciate and understand the aspects of the practical world vis--vis the theoretical input administered during regular academic sessions. This helps in creating Managers who are equipped with the experience of linking the theoretical inputs with those of practical exposure and come out with creative solutions/ideas in enhancing the business. In partial fulfillment of MBA degree of Indraprastha University I took up an Study at HDFC Bank and a microscopic study of the Retail Banking Front Office Management of HDFC bank. 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 English-speaking, well-educated work force and the emergence of a middle class population. All these factors have led to the healthy growth of retail banking. Today banks are striving hard to become the market leader in the retail banking & credit sector. The study was undertaken with an objective to grasp the operations & functions of Retail Banking in India and the strategies put in place by HDFC bank to tap the retail banking market and be the market leader.



Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest.

During the Mughul period, the indigenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786. The others which followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as Presidency Banks were independent units and functioned well. These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934.
In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalized and on 15th April 1980 six more commercial private sector banks were also taken over by the government


The Reserve Bank of India, the central banking and monetary authority of India, is the central regulatory and supervisory authority for the Indian financial system. A variety of financial intermediaries in the public and private sectors participate in Indias financial sector, including the following: 1. Commercial banks 2. Long-term lending institutions 3. Non-bank finance companies, including housing finance companies 4. Other specialized financial institution, and state-level institutions 5. Insurance companies 6. Mutual funds Until the early 1990s, the Indian financial system was strictly controlled. Interest rates were administered, formal and informal parameters governed asset allocation, and strict controls limited entry into and expansion within the financial sector. The government of Indias economic reform program, which began in 1991, encompassed the financial sector. The first phase of the reform process began with the implementation of the recommendations of the Committee on the Financial System, the Narasimhaman Committee. The second phase of the reform process began in 1999. 1.3. COMMERCIAL BANKING IN INDIA

Today the commercial banking system in India may be distinguished into:


1. State Bank of India and its associate banks called the State Bank group 2. Nationalized banks
1. Regional Rural Banks mainly sponsored by Public Sector Banks

1.3.2. PRIVATE SECTOR BANKS 1. Old generation private banks 2. New generation private banks 3. Foreign banks in India 4. Scheduled co-operative banks 5. Non-scheduled banks


The co-operative banking sector has been developed in the country to supplement the village money lender. The co-operative banking sector in India is divided into 8 components: 1. State Co-operative Banks 2. Central Co-operative Banks 3. Primary Agriculture Credit Societies 4. Land Development Banks 5. Urban Co-operative Banks 6. Primary Agricultural Development Banks 7. Primary Land Development Banks 8. State Land Development Banks

1. 2. 3. 4. 5. 6. 7. 8. 9.

Industrial Finance Corporation of India (IFCI) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) ICICI Ltd. National Bank for Agriculture and Rural Development (NABARD) Export Import Bank of India National Housing Bank

Indian financial sector has witnessed paradigm shift post liberalization. The focus of commercial banks was primarily to mobilize household savings through demand and time deposits and to use these deposits to meet short term financial needs of borrower in industry, trade and agriculture. In addition, the commercial banks provided a range of banking services to individuals and business entities. However, since 1991, there have been comprehensive changes in the financial system. Various financial sector reforms, implemented since 1991, have transformed the operating environment of the banks and long-term lending institutions.

In particular, the deregulation of interest rates, emergence of a liberalized domestic capital market, and entry of new private sector banks, along with the broadening of long term lending institutions product portfolios, have progressively intensified the competition between banks and long-term lending institutions. The Reserve Bank of India has permitted the transformation of long-term lending institutions into banks subject to compliance with the prudential norms applicable to banks.

1.4 Housing Development Finance Corporation - Introduction

Housing Development Finance Corporation Limited, incepted in the year 1977, was a brain child of Mr. Hasmukhbhai Parekh who at the age of 60 following his vision for mortgage finance for housing, gave birth to the Housing Development Finance Corporation which proved to be a trend-setter for housing finance in the whole Asian Continent. HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. It was started with an objective to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner. The aim was to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in housing finance. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment. HDFC's distribution network spans 283 outlets that include 66 offices of HDFC's distribution company and HDFC Sales Private Limited.

In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also sourced through HDFC Sales, HDFC Bank Limited and other third party Direct Selling Agents (DSA). To cater to non-resident Indians, HDFC has an office in London, Singapore, and Dubai and service associates in GCC countries. 1.4.1. HDFC Bank - Introduction The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The HDFC Bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank has 2,225 branches and over 5,200 ATMs, in 780 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30th September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$875.56 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$5.41 billion) in 2010-11. It is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bankits main competitors. 1.4.2. PROFILE IN BRIEF Company: Incorporated: Commencement of Business: Registered Office: HDFC Bank Ltd. August 1994 January 1995 HDFC Bank Ltd. HDFC Bank House, Senapati Bapat Marg Kamala Mills Compound Mumbai - 400013, India Promoter: HDFC Ltd.

1.4.3. HDFC BANK VISION To build a world-class Indian Bank The bank functions with a strong vision to building a world-class Indian Bank with professional approach and world class services. Its vision includes: 1. Increase their market share in Indias expanding banking and financial
2. services industry by following a disciplined growth strategy and delivering high quality customer service. 3. Leveraging technology platform and open scalable systems to deliver more

products and to more customers and to control operating costs. 4. Maintaining their current high standards for asset quality through disciplined credit risk management in the Indian financial sector. 5. Continue to develop products and services that reduce cost of funds. 6. Focus on high earnings growth with volatility. 7. Develop innovative products and services that attract their target customers.

1.4.4. HDFC BANK The Mission Statement The mission statement of HDFC Bank goes like this: Use enabling technology to provide value added products and services to customers. 1.5. HDFC BANK Objectives 1. To build sound customer franchisee across distinct businesses so as to be 2. the preferred provider of banking services for target retail and wholesale customer segments 3. To achieve healthy growth in profitability, consistent with the banks risk 4. appetite. 4. To maintain the highest level of ethical standards, professional integrity, 5. corporate governance and regulatory compliance. HDFC Banks business philosophy is based on four core values 1. Operational Excellence 2. Customer Focus 3. Product Leadership & 4. People.



On February 26, 2000 Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged With HDFC Bank Ltd. It was considered to be the greatest transaction in the Indian Banking Industry. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank Bank. The acquisition gave HDFC Bank and edge over others in the field by adding significant value in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels ACQUISITION OF CENTURION BANK OF PUNJAB In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total received 1 share of HDFC Bank for every 5.75 shares of Times

branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000/- crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore. 3. HDFC Bank Focus:

HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. 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 equity research.

Wholesale Banking Services

Blue chip manufacturing companies in the Indian corporate to small and 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 for its corporate, transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of banking services for its corporate customers, mutual funds, stock exchange members and bank. Retail Banking Services

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master card, 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 70,000Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. 4. Treasury 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. 5. THE REACH OF HDFC BANK - BRANCH NETWORK HDFC Bank is headquartered in Mumbai. The Bank has a network of 2225 branches spread in 780 cities across India. All branches are linked on an online realtime basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank has a presence in all major industrial and commercial centres across the country. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a member base. The Bank also has 5,016 networked ATMs across these cities. Moreover, HDFC

Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
6. Business Locations

The Top Management (MD & Group Heads), the Treasury dealing room, the Private Banking Group and other support groups like HRD, Finance, Audit and Administration operate from the registered office i.e., HDFC Bank House, Lower Parel, Mumbai. The Central Processing Unit (CPU), Phone Banking Unit, Cash Management Services (CMS), Information Technology (IT), Retail Assets Operations, Documentary Services Operations, Payment Desk etc. are centralized at: Chandivili, Andheri (E), Mumbai Marketing, Corporate Banking, Financial Institutions Group, Product Management, Depository-CPU, Custody etc. operate form offices situated at: Kamala City, Lower Parel, Mumbai The credit card operations are centralized at: Anna Salai, Chennai

Background HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs. 100 million. Business Objectives The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective is to increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets... Organizational Goals HDFCs main goals are to: a) Develop close relationships with individual households,
b) Maintain its position as the premier housing finance institution in the country,

c) Transform ideas into viable and creative solutions, c) Provide consistently high returns to shareholders, and d) To grow through diversification by leveraging off the existing client base. Board of Directors HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The board primarily focuses on strategy formulation, policy and control, designed to deliver increasing value to shareholders. BOARD OF DIRECTORS Mr. Deepak S Parekh Chairman Mr. D N Ghosh Mr. Keshub Mahindra Vice Dr. S A Dave Chairman Mr. S Venkitaramanan Mr. Keki M Mistry - Managing Director Dr. Ram S Tarneja

Ms. Renu S. Karnad Executive Director Mr. Shirish B Patel

Mr. N M Munjee Dr. Vijay S. Kelkar Mr. D M Satwalekar

Mr. B S Mehta Mr. D M Sukthankar

HDFC has a staff strength of 1388 (as on 31st March, 2007), which includes professionals from the fields of finance, law, accountancy, engineering and marketing. Future

Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialised financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service. Head Office Head Office: Ramon House, 169, Backbay Reclamation, MUMBAI 40020 Capital structure

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion).

The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).

Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the

bank has about 190,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 684 branches spread over 316 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base. The Bank also has a network of about over 1,740 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. PRODUCTS OFFERED BY HDFC BANK Saving Account Regular saving Account
Savings Plus Account Savings Max Account Savings Max Account

Salary Accounts Payroll

Classic Regular Premium

Savings Max Account Current account Plus current Accounts Trade current Account

Defence salary a/c

Premium current account Regular current account Other Important Accounts

Kids Advantage Accounts Pension saving bank Account Family Saving Account

Regular Fixed Deposit Super Saver Accounts

Sweep in Accounts CREDIT CARDS Silver Credit Card Gold credit card Womans gold credit card Platinum plus credit card Corporate credit card Titanium credit caed Value plus credit card HDFC bank idea silver card HDFC bank idea gold card\ LOANS Personal loan Home loans Two wheeler loans New car loans Used car loans Overdraft against car Express loans Loan against securities Loan against property Loan against rental receivables Commercial vehicle finance Vehicle working capital finance
Construction equipment fianace

PREPAID CARDS Forex plus cards

Gift plus card

Mutual fund Insurance General and health insurance Bonds Financial planning Knowledge center Equities & derivatives Mudra gold bar Trade finance Travelers cheque Foreign currency cash Foreign currency draft PAYMENT SERVICES Netsafe Prepaid refill Bill pay Insta pay Direct pay Visa money transfer E-monies electronic fund transfer Excise and service tax payment Online payment of direct tax ACCESS YOUR BANK Net banking One view Inta alert
Mobile banking



Banking is the financial function which plays an important role not only for the particular individual but also for the overall economy. With changing face of overall economy the face of banking service is also changing now it has become more & more attractive various newer functions has been added in the banking services to attract more & more customers. Earlier banking service is offered as 'facility provider' to customers to protect their saving in the most effective mode. They were never concentrated on profit as a business but with the changing time & with the highly growing economic condition the role of banking is also been changed instead of only 'Facility provider' it has also become a 'profit maker' with new attractive face The business of banks is buying and selling money: They "buy" money (deposits) with interest rates They sell money (loans) for a fee (interest) The difference between what they pay for money and what they get for it is called the "float" - the source of the banks revenues and profits This provides an efficient allocation of scarce resources It also means that banks do not just hold and protect your money - they give it to someone else: consequently, they actually have available only a small percentage of the money that has been deposited Banking: engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc. Retail: the selling of goods to consumers; usually in small quantities Retail Banking: 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.

Retail Banking in India is not a new phenomenon. It has always been prevalent in India in Various Forms. For the last few years it has become synonymous with mainstream banking for many banks. RETAIL BANKING:

Retail Banking is nothing but dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. ASSET SIDE: Fixed, current/saving accounts.

LIABILITIES SIDE: Mortgages, loans(e.g.: Personal, Housing, Auto & Education) Today's retail banking sector is characterized by three basic characteristics: Multiple Products(deposits, credit cards, insurance, investments and securities) Multiple channel of distribution (call centre, branch and internet) Multiple customer groups (consumer, small business and corporate)

The typical products offered in the Indian Retail Banking segment are housing loans, consumption loans for purchase of durables, auto loans, credit cards and educational loans. The loans are marketed under attractive brand names to differentiate the products offered by different banks. WHAT HAS CONTRIBUTED TO THE RETAIL GROWTH? There are some basic reasons which needed to highlight briefly they are; Economic prosperity and the consequent increase in purchasing power have given a fillip to a consumer boom. Note that during the 10 years after 1992, India's economy grew at an average rate of 6.8 percent and continues to grow at the almost the same rate not many countries in the world match this performance.

Changing consumer demographics indicate vast potential for growth in consumption both qualitatively and quantitatively. India is one of the countries having highest proportion (70%) of the population below 35 years of age i.e. younger population.

Technological Factors played a major role. Technological innovations relating to increasing use of credit/debit cards, ATMs, direct debits and internet and phone banking have contributed to the growth of retail banking in India.

The Treasury income of the banks, which had strengthened the bottom lines of banks for the past few years, has been on the decline during the last two years. In such a scenario retail business provides a good vehicle of profit maximization. Considering the fact that retail's share in impaired assets is far lower than the overall bank loans and advances, retail loans have put comparatively less provisioning burden on banks apart from diversifying their income streams.

Decline in Interest rates are has also contributed to the growth of retail credit by generating the demand for such credit.

OBJECTIVE OF THE STUDY 3. When erever we go, whichever seminar we attend, whichever speaker we hear, we are told that Retail is the next big thing. One sector that has been a living proof of this theory is banking. The surge started a few years back and has really taken off in the last three to five years. Thus, it was forced me to have a detail study of the Retail Banking along with its various pin points. PRIMARY OBJECTIVE; 1. To understand the concept of Retail Banking 2. To understand the reason for the growth of retail banking 3. To analyze the challenges & opportunities of it 4. To study the various products being offered in retail banking portfolio 5. To analyzing the key to competitive advantage in Retail Banking 6. And to assess the differentiating feature of the Particular Bank

SECONDARY OBJECTIVE; 1. To understand the real promoters of retail banking 2. To analyze the significance of retail banking on overall customer groups 3. To understand the working structure of retail banking 4. To analyze the effect of retail on the profitability of the banking sector itself as well as on the normal customer behavior 5. Consumer response to retail banking 6. The management quality of retail banking 7. Earning Quality 8. Liquidity Quality

Methodology Of the project: Method : Exploratory research Method of Primary data collection : 1. By carrying out actual project work in a bank branch for 2 months 2. Questioner (The questioner format is different for different designation for a branch) 3. Personal interview Method of secondary data collection : 1. Internet 2. Library Research Observational design : Conditions under which observations are to be made Structured or well thought out instruments for data collection by personal project work/observation, personal interview and by questionnaire. Process Phase 1

Analysis of the exact Retail bank environment This is done by personal visit & by undertaking the project work on retail banking for HDFC BANK LTD, Anand vihar Branch, DELHI Phase 2 Observing the work carried out by all real branch players from the top level to bottom level This is done by core observation & creating a questionnaire.

Phase 3 Analysis of data obtained This is done by analyzing the data obtained from actual project work using various techniques. Data Analysis:I.The Real Promoters of particular Retail Bank: The Current Staff of HDFC Bank with whom I got an opportunity to work with; which we can see are responsible for carry on day to day banking activities. Sr No. 1 2 3 4 5 5 6 Designation Cluster Head Branch Manager Authenticator Teller authenticator Teller Relationship Manager I Personal Banker I Position Held By Mr Rishi Raj Mrs Sarika khanna Mrs Neha somani Mr Rohit M kapoor Mrs Mansi mishra Mr siddharth deshpande Ms anjali arora

Welcome Desk

Mr kiranpal singh

Nature & Significance of the various positions 5.6 FRONT OFFICE MANAGEMENT ACTIVITIES 5.6.1 Welcome Desk

1. Nature: Welcome desk is nothing but the Reception Counter where the customer is satisfied for the various Enquiries, queries, doubts, complaints. It is the place where customer is contacted at very first stage. 2. Activities to be carried on: Enquiries, Cheque Book Request, Debit Card, welcome Kit, Delivery of Net Banking Pin & Tins, Stop Payment Request, TDS Certificate, A/C Closure, Retained Cards, Statement Request, Addition and change in personal information, Sign attestation Certificate, Requisition of Direct Banking Channel, Complaints. 3. Significance: Welcome desk is the more attractive name of the reception Counter. Earlier Banks never used to have a reception counters all the queries can be handled by the teller counter of the bank. The customer used to ask their queries during the transaction processing; this hurdles the concentration of the employees & the chances of mistake was on the higher rate, also it was time consuming which will result in irritating activity to the customers. To overcome this barrier & to become more attentive to the customers the Welcome desk concept is being introduced. 4. Result: Customer queries, doubts, complaints can be satisfied with minimum time consumption. Also help in providing better service to the customers for the banking queries. 5. Customer response: Customer is well satisfied & happy because their work is done within minimum time consumption. The service offered is also of best quality. PERSONAL BANKER 1. Nature: Bank employee who manages a customer's account much as a broker manages a client's securities portfolio. He is the Personal attainder provided to the customer whose Average Quarterly Balance (AQB) is more than Rs. 1 Lack. PBs have to give the introduction call, Monthly Activity Review Sheet (MARS) for the each & every meeting of the customer with the progress details & maintain the Customer Relationship Analyzer (CRA). 2. Activities to be carried on: Each personal banker services specific customers, opens new accounts, takes loan applications, answers questions about other banking services, and in general acts as a personal financial advisor. (A/c opening Queries, FD Booking, Pin Mailer Delivery, Customer Service, NRI service, Mutual Fund, Insurance, stop cheque payment request)


Significance: The Personal banker has to handle the Managed Classic Portfolio. The Personal banker introduces them with the various investment opportunities & products to earn high rate of interest. It is the job to guiding them to in wealth management of theirs. PBs are also forced by the bank to increase the business. They have to achieve a target laid down by the bank for opening various accounts.


Result: The Managed Classic portfolio is separated from the huge quantum of the overall accounting data. The Job of the PBs is to manage the account of nearly 100 to 150 customers who are bifurcated from other account data. It will be possible for the PBs to attain them promptly & providing them the, relevant information about their account status & other investment opportunities.


Customer Response: Customers are well satisfied as they get the information of various new facilities, a/cs introduced by the bank & also the rate of interest for different accounts (Fixed Deposit, SA). This will help to manage their wealth profitably.

5.6.3 PERSONAL BANKER AUTHENTICATOR 1. Nature: Personal Banker Authenticator scrutinize the various accounting form filled along with the documents requirement & presently attested by the PBs on behalf of the customers. 2. Activities to be carried on: The Personal persons. Banker Authenticator has to do critical scrutiny of the various

forms filled by the PBs as well as other sales

Significance: The Personal Banker Authenticator authenticates the various banking forms filled by the bank employees so that it should not come back from the back office. It tries to avoid the future repetitive work in case if the forms filled are not accepted.

Result: The time as an important resource, can be saved. The forms which are perfect from all the aspects can be sent to back office. It will be convenient & useful for the back office in case of analyzing the credit standing of particular person. 5.6.4 Teller Counter 1. Nature: A bank employee is a person who receives and pays out money. Teller counter person accepts deposits, encashes cheques, and performs other banking services for the public. In most financial institutions, tellers work from behind a counter or enclosure. Teller counter activity is same as per any other bank. 5.6.5 Teller Counter Authenticator 1. Nature: Bank teller whose duties include supervising other tellers, controlling cash in tellers' drawers, preparing daily cash report for the general ledger, and helping other tellers find a difference if end-of-day debits and credits are out of balance. Actual duties vary by financial institution. Teller counter Authenticators signature is important in case of any deposits or withdrawals above Rs.50000/-. Teller Counter Authenticator is the additional featured activity in the Retail Banking sector. 2. Activities to be carried on: Same as teller counter. 3. Result: Teller counter Authenticators authentication is required in specific case. It will help in maintaining perfect report of all the daily transactions (Deposits, Withdrawals, and Transfers) which will be helpful at the time of Bank Audit also. 5.6.6 Branch Manager 1. Nature: Bank Branch Managers are responsible for overseeing all aspects of banking at their branch. M.P. Birla Institute of Management Page 62

2. Activities to be carried on: Customer service related considerations, ensuring accounting procedures are followed, and confirming that cash reserves are sufficient for daily transactions. Branch Managers regularly prepare financial reports of operations, oversee the flow of cash, monitor the extension of credit, assess transaction risk, raise capital, analyze investments, contribute to marketing and promotional plans, and manage banking personnel. 3. Significance: Branch manager is responsible for the whole working of particular branch therefore he needs experience as well as study of all the matters in depth. 5.6.7 Teller counters observation: Opening Balance Opening Balance is the cash bought in at the opening of the day. The amount depends on the yesterdays closing balance which is carry forwarded as opening balance for today. Generally, the branch holds 15 Lakh cash as opening balance & loose cash separately which includes coin which is off nearly 10 Thousand. The foreign currencies are also kept in case of any specific requirements. Deposit Transaction A deposit transaction is a transaction involving a transfer of funds to another party for safekeeping. It is the money an investor transfers into a bank's savings or checking accounts. It is the Cash, cheques, or drafts placed with a financial institution for credit to a customer's account. Banks broadly differentiate between demand deposits (checking accounts on which the customer may draw at any time) and time deposits, which usually pay interest and have a specified maturity or require 30 days' notice before withdrawal. Withdrawal Transaction Taking funds out of a deposit account by writing a cheque, draft or withdrawal slip in the case of a time deposit or savings deposit. Certain time deposits and certificates of deposit require a notice of withdrawal before funds are withdrawn in cash or M.P. Birla Institute of Management Page 63

transferred to another account. These may also be subject to an early withdrawal penalty or forfeiture of interest Transfer Transaction Transfer Transaction includes; 1. Moving funds from one account to another, as from checking to savings. 2. Moving stocks, bonds, or other securities from one owner to another, and recording the change of ownership on registration papers. 3. Electronic payment from one bank to another through the automated clearing house system. 4. Clause in a letter of credit allowing the beneficiary to make the proceeds of the credit available to a third party (secondary beneficiary). The secondary beneficiary is obligated to present the draft to the advising or paying bank to receive payment. Cheque Clearing Movement of cheques from banks where they are deposited back to those on which they were written, and funds movement in the opposite direction. The Federal Reserve operates a nationwide cheque clearing system, including numerous Regional Cheque Processing Centers. Many cheques are cleared by private sector arrangements either by Direct Presentment to the bank or, if the cheque is drawn on a local bank through a clearing house association. Cheque Digit A numeric digit used to ensure that account numbers are entered accurately into the computer. Using a formula, a digit is calculated from each new account number, which is then made part of that number, either at the end, the beginning or somewhere in the middle of the number. When an account number with the cheque digit is entered, the data entry program recalculates the check digit and compares it to the M.P. Birla Institute of Management Page 64

check digit entered. If the digits are not equal, the account number is considered invalid. Travelers Cheque An internationally redeemable draft purchased in various denominations from a bank or traveler's aid company and payable only upon the purchaser's endorsement against the original signature on the draft. Stop Payment Stop payment is a request made when a bank account holder instructs his or her financial institution not to honor payment. Stop payments are issued after a check has been delivered, but before the receiving party has cashed it. Foreign Currency Cash Foreign Currency Cash is a convenient way of meeting personal expenses along your journey, paying for taxis / internal travel, food expenses etc. Foreign Currency Demand Draft FCY DD facility is to make payments for various purposes like: 1. Payment of University fees abroad 2. Making a gift remittance to a friend or relative 3. Payment of application fees for various exams like TOEFL, GMAT etc. 4. Payment for medical treatment abroad 5. And all other permitted purposes as per the RBI guidelines. Fixed Deposit Amount Parking The amount from the customers savings account or cash deposited for making fixed deposits is parked at particular a/c no. which can be used for giving loans. Closing Balance At the end of the working day the report is prepared for the total transaction of deposit, withdrawal, transfer or any other payments. The total balance of cash is M.P. Birla Institute of Management Page 65

calculated & cross checked with BJR (Branch Journal Report). The transaction documents (cheque, slips, challans and vouchers) are filled together which can be required at the time of banking audit. The BJR should match with the transaction documents the Teller Counter Authenticator is responsible for making the BJR and crosschecking of it with the related documents(i.e. cheque no., credit or debit given to proper account, amounts are put rightly or not). He has to clear all the mistakes before the approval of the Branch Manager as once the report is approved by the BM it cannot be changed. Significance of the Account Number 1. Nature: Whichever the customer opens account with HDFC bank Ltd. Each a/c no. contains 14 Digit. 2. Description: Suppose the No. is 012 100 00269900 Branch Code 012: Represent the Branch code likewise every branch have their own code. The A/c no. should start with branch code so that it will be very easy to recognize that with which branch the customer is having their A/C Product Code 100: Represents the Type of Accounts the customer has opened with the bank. There are different Product codes available for different product (Account). Thus the product code could be useful for recognizing the product that customer is presently having. Customers Personal No.: It is the separate no. given to each and every customer who is only having the access on that no. 5.6.8. Grouping Assignment 1. Head: Family saving group 2. Nature: To Group together all the family members accounts under one customer ID head M.P. Birla Institute of Management Page 66

3. Who can apply for the grouping? Existing customers: having 1 or more accounts (saving/Salary/NRI/Salary Reimbursement/ Kids Account) with HDFC Bank with same or different branches. New Customers: The main customer & other family members intend to have 1 or more accounts with HDFC bank. (Other family members includes: Spouse, father, mother, son, daughter, brother, sister, grandparents & grand children) 4. Eligibility: Up to 4 Saving Accounts of individuals can be clubbed under a single family saving group 5. Activities to be carried on: Step 1: The customer whos AQB is more than Rs.1 lakh is headed as a parent account holder & all other family members who so ever having their any account with any branch of HDFC bank are needed to group together. Step 2: Name of the customer, customer ID, the Account No., and the relation of the customer with the group head is needed to find out by calling the customers. Step 3: After collecting all the details of the customers who is going to be grouped the PBs have to search that whether they are already grouped or not, this can be searched out from the data available on Finware. Step 4: The next most important thing is to confirm that for whose portfolio the head customer belongs (Classic, Preferred, and Imperia) accordingly we have to take the approval from their portfolio head if they approved then only grouping can be carried on. Step 5: The form for grouping is then filled including PB Code Branch code Group ID Name of primary ID in Relationship M.P. Birla Institute of Management Page 67

Name of the customer, customer Id and relation to Group ID of the customers who needed to group has to be mentioned. 5.6.9 Loan Activity 1. Nature: In HDFC Bank I had also got on opportunity to learn the loan processing activity. The bank has explained me about the complete loan process for a particular loan product that is Express Loan Centre. 2. Documentation 1. Address Proof 2. Identification Proof 3. 3 Months Bank Statement 4. Income Proof

For Salaried any one of the following; 1. Form 16 2. Salary certificate

For self employed; 1. 2 yrs ITRs with computation of income 2. Balance sheet & P&L Or 3. 2 yrs Form 16A (TDS Certificates)

5.6.10 FD Penetration: 1. Nature: Fixed deposits offer flexibility, security and higher returns in a single bundle of investments. Regular Fixed Deposits 1. Flexibility in opting period of deposits, maturity and payment instruction, principle amount and rollover made

2. Option of Going for Simple interest/ Compound Interest & thus re-investing the principle to let the customers money earn More Higher rate of interest on FD for senior citizens.

4. Sweep-in Facility: Link the FD A/C to the Saving Account & use it to fall back on, in case of emergencies.

5. Super Saver Facility: Customer can enjoy a higher rate of interest along with the liquidity of a Saving Account by opting for a Super Saver Facility on Saving Account. And also can avail overdraft facility of up to 75% of the value of the FD. 6. Customer can get the best world: No penalty for premature withdrawals

5-Year Tax Saving Fix Deposits 1. Min. Amount: Rs. 100/- ; Max. Amount : Rs 100000/- (In a Financial Year ) 2. Tenure: 5Years 3. Customer can avail dual benefits in terms of attractive interest rates along with tax exemption under section 80C of the Income Tax Act, 1961.

2. Activity Carried on: 1. Calling the customers from managed classic portfolio. 2. Informing them about new FD scheme along with;

Minimum Deposit Amount Tenure Period Rate structure according to the Tenure period 3. If the customers are interested then the next step is to fill the form this can be done by calling the customer in the branch or sending the bank person at their place according to customers convenience. 4. Non interested customers can be followed on for one more time. 5. The Form filled by the customers is authenticated by PB Authenticator & then sent to the back office for approval 6. Once it is approved by the back office the FD amount is parked. 7. The customer will get the amount along with the interest when the FD gets matured. M.P. Birla Institute of Management Page 69

5.6.11 Customer Relationship Analyzer 1. Nature: Customer Relationship Analyzer (CRA) is a document which contains all the details information of the Classic Customer Portfolio. 2. Who maintains it? The PBs who manages the classic Customer Portfolio are responsible for making the CRA for each & every customer of the portfolio. 3. Benefit of the CRA for the Bank The bank can get all the details of the customer investing pattern through the CRA. The information about the customers family members investment pattern is also available. Accordingly the bank can decide on the agreed action for the particular customer to give the customers more investment opportunity & also to increase the business. 5.6.12 Monthly Activity Review Sheet (MARs): 1. Nature MARS is prepared after the preparation of CRA. Mars covers the activity carried on by the PBs to pitch the customer. 2. Who maintains it? The PBs who manages the classic Customer Portfolio are responsible for making the MARS for each & every customer of the portfolio. 3. Benefit of the MARS for the Bank The bank will decide on the next best action to take the lead of product from the customers. MARs will be also useful in deciding the next best action for the PBs to pitch the customer, which will ultimately useful for the bank to increase its business., which will ultimately useful for the bank to increase its business. M.P. Birla Institute of Management Page 70

5.6.13 Individual Profile Information 1. Nature The Individual Profile Information is just like as CRA which contains all the detailed information about the Preferred & Imperial customer Portfolio. 2. Who maintains it? The Relationship Manager for Preferred & Imperial customer Portfolio is responsible for maintaining it. 3. Benefit of the IPI for the Bank The bank can get all the details of the customer investing pattern as well as the life style likings & disliking through the IPI. The information about the customers family members investment pattern is also available. Accordingly the bank can decide on the agreed action for the particular customer to give the customers more investment opportunity & also to increase the business. As the IPI is made for Preferred & Imperial Customer portfolio, more business is earned from this portfolio, therefore it is needed to be focused with huge details. 5.6.14 Convenience Banking Channels Bill pay 1. Nature: No need to stand in long queues & waste time & effort for paying bills through utility Cos counters. 2. How to do: Register online on HDFC Bank website or by submitting the registration form for Bill pay at the branch. And pay utility bills through ATM/ Net Banking/ Phone Banking/ Mobile Banking. Insta Alert 1. Nature: Customer can be updated for their A/Cs while on the move. Receive alerts for transactions on their A/C M.P. Birla Institute of Management Page 71

2. How to do: Register online on HDFC Bank website or by submitting the registration form for Bill pay at the branch. 5.6.15 Direct Banking Channels Phone Banking 1. Nature: Customers can avail the convenience of operating the Bank Account from the comfort of home, without even visiting the branch. Net Banking 1. Nature: Irrespective of the branch in which A/c of the customer exists, they can get real time information at the click of a button. HDFC bank uses industry standard technologies & infrastructures, for insuring the safety & security of the transactions. Mobile Banking 1. Nature: Mobile Banking works through a set of a text messages (SMS) without even making a call. 2. How to do: All the customer need to do is to type in the specified code for the transaction as a text message and have to send on particular no. 5.6.16 Other Important Financial Products Trust and Societies Account 1 Who Can Apply? All Registered trusts. 2 Feature & Benefits: 1. Free Payable-At-Par cheque book, without any usage charge up to a limit of Rs.50000/- per day. 2. Free outstation cheque collection at HDFC Bank locations 3. Free DD on HDFC Bank location, up to a limit of Rs. 50000/- per day. M.P. Birla Institute of Management Page 72

4. Cash transaction (deposits plus withdrawals) up to Rs. 50000/- per day free of charge. 5. Discount on Foreign Exchange Transaction 6. Free Funds Transfer 7. Free Quarterly Statement of Accounts 8. Free net Banking & Phone Banking Facility 9. Demat Account with preferred pricing Institute & School Fee Collection 1. Who Can Apply? Any Institute with minimum 500 students Average annual fee of Rs. 1000/-per student 2. Features & Benefits: 1. Allows parents to walk in to select branches of HDFC Bank to deposit the fees 2. Daily report of the fee collection is sent to the school by CMC team through email 3. The Institute/School can avail of Trust Account benefits by opening a trust account Mudra gold bars

Product Features: HDFC Banks Mudra Pure Gold Bar is 24 karat, 99.99% Pure Gold and comes with the highest standard of purity in Gold. Hypothesis Before the internet era, consumers largely selected their banks based on how convenient the location of bank branches was to their homes or offices with the advent of new technologies in the business of bank, such as internet banking and ATMs now customers can freely chose any bank for their transactions. Thus, the customer base of banks has increased, and so as the choices of customers of the selecting banks. This is just the beginning of the story. Due to globalisation a new generation of private sector banks and many foreign banks have also entered the market and they have brought with them several useful and innovative products. Due to forced competition, public sector banks are also becoming more technology savvy and customer oriented.

Thus, non-traditional competition, market consolidation, new technology and the proliferation of the internet are changing the competitive landscape of the retail industry. Today retail banking sector is characterised by the following: Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution ( branch, internet)
Multiple customers groups ( consumer, small business and


Today, the customers have many expectations from bank such as:1. Service at reduced cost 2. Service anytime anywhere
3. Personalized banking service

With increased number of banks, products and services and practically nil switching costs, customers are easily switching to banks whenever they find better services and products. Banks are findings it tough to get new customers and more importantly retain existing customers. It would be worthwhile to make a check list of the broad needs that your private banker should satisfy. To mention the more significant ones, Customised, professional, unbiased, investment advice. Single point service. Trust and confidentiality. Empowerment to take final decisions. Prompt, efficient service with minimal paperwork. Reliable, speedy, low cost execution of transactions After sales service which includes regular performance reports and pro-active follow up of post transaction delivery and corporate actions

A reasonable return Methodology The topic is a study on correlation between customer in services and satisfaction level of customers HDFC bank. According to this will find out that how many customers are satisfied with the services of HDFC bank. In the starting of research this is the exclusive research but as this research is going on this becomes a concluded research because in starting the ideas comes to find result according to my topic when research is going well then some findings are come. So I take any decision regarding to select the research. Become the conclusive research. In conclusive research, we use some statistical terms so that we find the result in quantity Sample size- 30 Target area Delhi Sampling technique- convenient sampling

In convenient sampling, the selection of units from the population is based on easy availability or accessibility. I am using this sampling technique or method because sample will be selected on the basis of availability of the respondents who met the desired criteria.

Data collection Primary data source Dichotomous questions

yes or no

Primary and secondary Questionnaire

This has only two answers

Data collection tools Structured questionnaire

A structured questionnaire is a formal list of questions framed so as to get the facts. For collecting primary data, I used a structured questionnaire. I prepared questionnaire to be filled by customers to be filled by customers by HDFC bank. I meet to customers of HDFC bank of filled the questionnaire. So that I can know about the satisfaction level of that services which they enjoy as customer. Secondary data collection Magazines, books and websites Data analysis I Table 1 Is relationship manager of your bank taking efforts to monitor your investment portfolio? Frequency 23 07 30 Percentage 76.67 23.33 100

Yes No total

According to this table 76.67% of total respondent are got the suggestions from their bank relationship manager. So they invest money in right direction direction. Table 2 Does relationship banking manager lower your investment risk? Frequency Yes No Total 20 10 30 Percentage 66.67 33.33 100

This table and the chart shows that 66.67 % respondent agree with this statement. Relationship banking minimized their risk factor. This is happened by they followed their suggestions. Remaining 16.67% respondents are disagreeing with the statement that they dont minimize their risk in investment because they think that we are also expert in that field. Table 3

Is the relationship manager skilled/ knowledgeable to give you investment advice? Frequency Yes No 25 05 30 Percentage 83.33 16.67 100

This table chart tells me that 83.33% respondent says that relationship manager is a skilled sitting in a bank. He is a skilled person so he gave us a right advised to us regarding investment and minimizes our risk in investment. Table 4 Relationship efforts of your bank in query by officials Query handling officials Very good Good Poor Very poor Total 11 14 04 01 30 Percentage 36.66 46.67 13.33 3 100

This table shows you the perception of the respondents regarding the queries most of respondent says well. Table 5 Provided investment guidelines Provided the investment Percentage Strongly satisfy Satisfy Neither dissatisfy Dissatisfy Strongly dissatisfy Total satisfy guidelines 7 15 or 05 03 00 30 23.33 50 16.67 10 00 100

Table 6 Knowledge of regular market information Regular Strongly satisfy Satisfy Neither dissatisfy Dissatisfy Strongly dissatisfy Total satisfy information 08 12 or 05 05 00 30 market Percentage 26.67 40 16.67 16.67 00 100

In case of market information more than70% respondents are got the information on


Table 7 Quality of services Quality of services Strongly satisfy Satisfy Neither dissatisfy Dissatisfy Strongly dissatisfy Total satisfy 12 15 or 03 00 00 30 Percentage 40 50 10 00 00 100

This table and chart shows that almost respondents are satisfied with the quality of services. The percentage of this is 50%

Table 8 Priority to greeting on selecting occasion Send greeting Very good Good Poor Very poor Total 10 13 05 02 30 Percentage 33.33 43.33 16.67 6.67 100

HDFC bank sends greeting to most of the investors on the selected occasion.

Table 9 Give information about new services to the investors

Info Very good Good Poor Very poor Total


new Percentage 43.33 56.67 00 00 100

services 13 17 00 00 30

Table 10 Promptness in services Promptness in services Very good Good Poor Very poor Total 07 16 06 01 30 Percentage 23.33 53.33 20 3.34 100

Data analysis II My null hypothesis (H0) is most of customers are not satisfy with services of HDFC bank. Using chi square test Variables Guidelines Market 1 10 05 2 08 12 08 12 40 3 10 08 08 06 72 4 02 05 02 00 09 5 00 00 00 00 00 Total 30 30 30 30 120

information Queries 12 Quality Total 12 39

Degree of freedom Degree of freedom= (no of row 1) (no of col-1) = (4-1) (5-1) = 3*4 = 12 Now, calculate expected frequency Fe = total of row*total of col/total lot

Chi square ()

= (fo-fe)fe

Where, fo = obtained frequency fe = expected frequency F0 10 08 10 2 5 12 8 5 12 8 8 2 12 12 6 Total Fe 9.75 10 18 2.25 9.75 10 18 2.25 9.75 10 18 2.25 9.75 10 18 158.00 (f0-fe) 0.25 2 -8 -0.25 -4.75 2 -10 2.75 2.25 2 -10 -0.25 2.25 2 -12 (f0-fe) .0625 4 16 .0625 22.5625 4 100 7.5625 5.0625 4 100 .0625 5.0625 4 144 416.43 (f0-fe)/fe 0.0064 0.4 0.8 0.027 2.3 0.4 5.5 3.36 0.54 0.4 5.55 0.0278 0.52 0.4 8 27.78

Chi square =(f-f)/f = 27.78 Now see the degree of freedom which is 12 I calculate this earlier Now take the significance level () is 5% The value of chi square in the table at 12 degree of freedom is 5.226 Thus, my null hypothesis is wrong. Alternate hypothesis accepted. Findings 1) Most of the respondents are satisfied with the services which are provided by HDFC bank. It may be possible all the customers are enjoying all services of bank.


There is a high correlation between relationship manager and the customer because he provided all available information on time.

3) 4)

Thus my null hypothesis is become wrong after analysing the data There is customer retention in HDFC bank by providing the best services to the customers.


There is a strong communication between relationship manager and the customers.


Relationship manager is trying to minimise the risk of customer regarding the investment.

7) 8)

HDFC bank is better service provider in banking industry Customers are profitable because this bank give the priority to service than employee.

Limitations The sample size was taken from only 25 respondents which may not be true representative of whole customers perceptions.

It may be possible that all those services which I want to represent

There is also time constraint as limitation.

Findings: Introduction: Retail banking as applicable modern times may be defined as providing credits to individuals for non entrepreneurial activities. This is because usually retail loans are used towards consumptions and the loans has to be repaid by the borrower out of his own resources and not from the income stream generated by deployment of the loan. The growth and retail banking in terms of volumes and types of products has been quite pronounced in the recent years. Some of the basic reasons attributed for this spurt are; Indias economic prosperity Consequent increase

Consequent increase in purchasing power Changing consumer demographic with one of the highest section of the population below the age of 35 years Technological innovation such as ATMs, Credit cards etc. Decline in treasury income causing retail banking to be the focus of profit maximization and decline in interest in recent years. There has also been an expansion in the nature and product offered under retail banking Main Content: There has been a revolution in the range of products and the way these are serviced in the retail banking sector than the traditional bankers. For example previously one had to physically visits a bank branch in ordered to open an account where as today the bank often visits a customer who shows or may show and inclination to open an account with it. Modern trends in retail banking Capturing the trend and progress of retail banking would require dividing retail banking by products, services and technology. Even this classification would be quite simplistic, as the broad category mentioned, could get further subdivided. For instance speaking about the services rendered to a customer of retail banking, Customer Relationship Management (CRM) would be one of the areas of study it includes but may not be limited to exception best banking wealth management, Know Your Customer (KYC) compliance, internet and mobile banking products life cycle management, customer data integration and relationship banking among others. The retail banking sector as the new sector for capturing the market & to service their customers have developed some new methods they are as follows; Primary Methods Products: There are two ways to look at bank products that are offered to customers. The traditional products (and now new ways in which they are offered) and new products. The website of any of the banks in India would typically show the following products in the retail banking segment; a) Deposits b) Loans (housing, personal, education, etc.)

c) Investments d) Cards e) Insurance f) Demat services g) Online services It may be noted that deposits are a part of the liabilities whereas all other products mentioned are either its assets or a part of its fee based services. Therefore, only for deposits, banks have to pay its customers i.e. have an obligation towards them; whereas in case of the customers have to pay the banks i.e. customers have an obligation to the bank. While the above are provided to India residents, Non Resident Indians (NRIs) are provided remittance services and property solutions in addition to some of the products/ services offered to resident Indians. Services: In retail banking customer is a customer of branch and gets all his banking services at the branch be it depositing or withdrawing money, applying for a loan, getting an update on the pass book etc. the advantage of branch banking is that it bring the bank and the customer face to face with each other. This face-to-face banking has new variant i.e. door step banking there still is a direct interface with the customer but now it is the bank which visits the customers rather than the other way around. The contact center of the bank is also contributed for providing prompt services to the customers; What does a Retail banking contact centre offer a customer? 24/7 access for enquiry, request and complaint resolution. Service at finger tips Enquiry Account balance details Last five transactions Statement details Bill payment details Reward point details Location of cheque payment boxes Deposit rates / interest rates General information about the bank Request Cheque book Statement Stop payment Opening a fixed deposits Block lost credit or debit card Renewing a credit card / deposit Replacement of credit cards Redemption of reward point Dial a draft

Technology: Technological development has been hugely responsible for such rapid growth and spread of retail banking and products. In some instance like the Automated Teller Machine (ATMs) technological solutions have been a few steps ahead of customer problem. However though technology has provide customers with solutions for their problems it has also been accused of taking the customer away from the bank and the making banking a non intimate activity. The key ingredient of the success of retail banking is in their philosophy is income can be divided into consumptions and savings. Both provide fuel to the engine of the retail banking. Conclusion: From above all information it is seen that, retail banking is directed at salaried and self employed persons. That is on those people who can meet EMI commitments. Thus retail tends to be urban and semi urban in focus. Yet it is seen that retail banking products do not have uniform or standard terms of credit. In fact, despite being marketed to the salaried / self employed class it is seen that terms such as the amount of loan, repayment period, rate of interest, margin, collateral, etc could be different from person to person. It is the appraisal methodology which is score card driven and easy delivery format that makes the retail product unique and capable of fast multiplication. Unlike the past when bank products were marketed in the branches, retail is out in the open. Retail products / loans are issued/ marketed in branches, loan melas, factories, and malls. In additional to bank staff, BPOs, mail order, telephone & e-mail are used to marketing retail. The list of Marketing Avenue is endless. It is enough if the banks touch base with one of them. Thanks to IT also, information about customers is immediately put on the retail highway. Almost no information (lead) escapes the eye of the retail marketing units. Limitations The Summer Project which I did was in Retail Bank Front office only; I couldnt able to go for back office operations process of banking. The questions for which I couldnt able got the answers are; 1. What happened about the various forms which is newly filled by the customers when sends to the back office? How it is approved?


How the processing on the form is done to understand the eligibility of the customers for different products. For E.g.: When the welcome call report come from the back office it includes, the date of opening an account, Name of the customer, Contact, details and also the eligibility for various product like Gold credit card, Loan, FD, etc.

3. 4. 5. 6. 7. 8. 9. 10.

What happened to the amount which is parked as a Fixed Deposit at a particular a/c no.? How the credit analysis of the particular loan applicant is did? How the loan amount for the particular customer is decided by the bank? How the treasury operations are carried out? How the bank collects its debt? What happened with NPA (non performing assets)? How the bank designs various scheme for the customers How the various rate of interest is decided by the bank? For e.g.: For Fixed Deposit the rate of interest is different for different tenure period? Thus, why it is so, what are the criteria for deciding the different rate scheme? Thus, my study is about the front office management of the Retail banking it doesnt include any back office operations or the treasury operations details. The project work focuses on only one side of the banking i.e. Front office , as the front office look after at collecting the business it never highlights on the back office operations which is very necessary to understand as the back office look after the processing of the business & stretching more & more customer for banking business.

Bibliography: Reference scheme used for the study a) Books: Name of the book: Financial services in India Name of the publisher: The ICFAI University Press E- book on retail banking management b) Journals/Magazines: Name of the Author: Shyamala Gopinath

Title of Article: Retail Banking Opportunities & challenges. Name of the Journal/Magazine: Bank Quest No. & Vol. of publication: No.4 Vol.77 Period of Publication: October December 2006 c) Internet Sites:
1. <http://www.hdfcbank/aboutus/com 2. <http://www.hdfcbank/aboutus/com> 3. <http://www.hdfcbank/productataglance/com> 4. <http://www.hdfcbank/aboutus/travellerscheque/com.