Académique Documents
Professionnel Documents
Culture Documents
INTRODUCTION
1.1
SECTOR
The Indian economy is emerging as one of the strongest economy of the world
with the GDP growth of more than 8% every year. This has given a great support for the
development of banking industry in the country .Due to recession it has come down to
5.7%. But market now stabilizing.
Due to globalization, competition among the banks has drastically been
increased .As India has a substantial upper and middle class income hence the banks
have immense opportunities to increase their market shares. The consumer being on
the receiving end is in the comfortable position but the banks trying to increase their
market share have to continuously add value for consumers in order to increase market
share and sustain their growth.
BANKING SECTOR
The banking sector is the most dominant sector of the financial system in India.
Significant progress has been made with respect to the banking sector in the post
liberalization period. The financial health of the commercial banks has improved
manifolds with respect to capital adequacy, profitability, and asset quality and risk
management. Further, deregulation has opened new opportunities for banks to increase
revenue by diversifying into investment banking, insurance, credit cards, depository
services, mortgage, securitization, etc. Liberalization has created a more competitive
environment in the banking sector
1.2
INDUSTRY PROFILE
a)
ORIGIN AND DEVELOPMENT OF THE INDUSTRY
The origin of banking in India is traceable in ancient time through the modern banking
hardly 200 years old. The main function of bank is to accept deposits and grant loans.
There is evidence of these functions being performed by a section of the community in
the Vedic periods. There are many references of debt in the Vedic literature. During the
Ramayana and Mahabharata areas banking, which was a side business during the
Vedic period, become a full-time business activity for the people. During the smriti
period, which followed the Vedic period and the Epic age, bankers performed the
function of the modern banks.
Retail banking
According to investopedia.com, 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.
implications arising out of the Basel II accord. Banks, as we all know, are subjected to
more intense regulation as compared to the non-financial firms.
c)
Share of GDP
Growth of Q1
Growth in Q2 FY
%
56.1
21.8
22.1
FY 2014
7.4
5.8
1.7
5.7
2014
9.8
6.3
7.4
8.4
"The entry of a number of banks in India in the last few years has helped provide
increased coverage and a number of new products in the market," says Kamath.
CHAPTER 2
COMPANY PROFILE - HDFC BANK
2.1
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 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 is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to remain
the market leader in mortgages. 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.
2.2
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 have a
strong and active member base. The Bank also has a network of about over 4000
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.
2.3
At present HDFC Bank is the leading most bank in the housing and development
sector and is growing very fast in the other banking sectors such as life insurance &
mutual fund. 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.
2.4
Chairman
Managing
Director
Executive Director
Regional Sales
Head
Area sales Head
Area Sales
Manager
Deputy Sales
Manager
Team Leader
Contract Sales
Executive
Chairman
(Domestic Banking)
(International Business)
Executive
Director
Executive
Director
Executive
Director
Executive
Director
General Managers
Deposits
I.
Savings Account
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever customer occupation, bank is
confident that customer will find the perfect banking solution.
II.
Comprehensive banking
Supplementary savings
III.
Debit-cum-ATM-card
IV.
Fixed deposits
V.
D-Mat accounts
II) Bonds of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited. CARE
has assigned the rating of "CARE AAA" for the Tier II Bonds while Fitch Ratings India
Pvt. Ltd. has assigned the rating "AAA (Ind)" with the outlook on the rating as "stable". In
each of the cases referred to above, the ratings awarded were the highest assigned by
the rating agency for those instruments?
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporate need more sophisticated risk
management information, advice and product structures. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities.
Tech-Savvy
HDFC Bank has always prided itself on a highly automated environment, be it in terms
of information technology or communication systems. All the braches of the bank boast
of online connectivity with the other, ensuring speedy funds transfer for the clients. At
the same time, the bank's branch network and Automated Teller Machines (ATMs) allow
multi-branch access to retail clients. The bank makes use of its up-to-date technology,
along with market position and expertise, to create a competitive advantage and build
market
share.
Capital Structure
At present, HDFC Bank boasts of an authorized capital of Rs 550 crore (Rs5.5 billion),
of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In terms of equity share,
the HDFC Group holds 19.4%. Foreign Institutional Investors (FIIs) have around 28% of
the equity and about 17.6% is held by the ADS Depository (in respect of the bank's
American Depository Shares (ADS) Issue). The bank has about 570,000 shareholders.
Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange,
while its American Depository Shares are listed on the New York Stock Exchange
(NYSE), under the symbol 'HDB'
Functional Departments of the Organisation:The functional departments of the organization consists of the HR department, the
administrative department and the executive department. The HR department of the
organization consists of the people who employ the Persons who they think would be
able to do justice with the job handled.The administrative department of the organization
consists of the director and the manager of the organization. They preside the
organization and control all the operations of the organization such that the organization
could run in a smooth and effective manner. The executive department of the
organization consists of the various employees Who execute the job undertaken by
them. The employees consists of the team leaders, the Corporate financial consultants,.
the telecallers, various staffs and junior staffs who are the main structural framework of
the organization. The organization thus runs with the effective coordination of the HR
department, the administrative department and the executive department such that the
supervisors of the organization preside over the subordinate employees to give them
directions about fulfilling their works most efficiently and effectively. Technical
Consultancy Department: The Technical Consultancy Department is responsible for
technical appraisal of industrial projects. The mission of the division is aimed towards
the verification of the technical viability of industrial projects and assisting the Funds
management in taking the decisions that require technical expertise. Moreover, it is
responsible for conducting technical studies and rendering technical consultancy BANK
to certain industrial sectors for the purposes of investigating modern technologies and
productivity levels for local manufacturing plants.
H R Department:
HDFC Human Resources department plans and direct for the employee population as
well as they are having the following functions as:
Hiring
Promotions
Reassignments
Position classification and grading
Salary determination
Performance appraisal review and processing
Personnel data entry and records maintenance
Policy development
Work permitting immigration visa program
Workers compensation
Finance Department:
The Finance Manager is responsible for all aspects of the accounting and financial
administration of the HDFC, the supervision of the implementation of the HDFC financial
policies, directives and procedures and the initiation of the financial plans within the
guidelines of HDFC The department contains several distinct sections, each of which is
responsible for a proportion of the activities taking place within the finance department.
Marketing Consultancy Department:
The Marketing Consultancy Department plays and important role within the Fund as it
studies and analyzes marketing information in order to build solid base for management
decisions. The division also assists projects sponsors in formulating solid marketing
strategies to improve their industries and strengthen their position in the local and
international markets.
Research Department:
The Research Department is having the capacity to act through four composing units
i.e., the market research unit, economic studies unit, and statistical studies unit. It is the
mission of the division to provide support BANK for information and consultancy to the
senior management and division in the areas of economic, statistical and marketing
information and consultancy through data analysis, processing of economic and
statistical data, market research studies and publishing related periodical reports.
2.5 Organization Structure and Organization Chart:The organization structure of the company HDFC is such that it comprises of the
departments and the employees in the hierarchical order so that they are able to
perform their functions and duties smoothly and effectively doing their job in a manner in
which it should be done. The organization is headed by the administrative department
which coordinates and controls the executive department. The executive department is
a link from the top and the bottom comprising of the lower level employees such that
they work together to fulfill the common objective of getting business from the persons
who get in touch with them and see to it that they are provided with the best of the
BANK which constitute giving financial advise to providing Account to the customers.
The organizational structure is well planned out and it follows a simple format which is
follows:
Organization Chart:-
Each team lead has a team comprising only of both senior as well as junior market
research analyst who aid the team lead in the entire market research process as it has
been discussed previously. This is the basic organizational structure followed by HDFC
BANK.
2.6 Product and service profile of the organization:HDFC Bank offers a bunch of products and services to meet the every need of the
people. The company cares for both, individuals as well as corporate and small and
medium enterprises. For individuals, the company has a range accounts, investment,
and pension scheme, different types of loans and cards that assist the customers. The
customers can choose the suitable one from a range of products which will suit their lifestage and needs. For organizations the company has a host of customized solutions
that range from Funded services, Non-funded services, Value addition services, Mutual
fund etc. These affordable plans apart from providing long term value to the employees
help in enhancing
Goodwill of the company. The products of the company are categorized into various
sections which are as follows:
Personal Banking
Savings Accounts
Salary Accounts
Saving Accounts
Fixed Deposits
Demat Account
Safe Deposit Lockers
Loans
Credit Cards
Debit Cards
Prepaid Cards
Investments & Insurance
Forex Services
Payment Services
NetBanking
InstaAlerts
MobileBanking
InstaQuery
ATM
PhoneBanking
NRI Banking
Rupee Savings Accounts
Rupee Saving Accounts
Rupee Fixed Deposits
Foreign Currency Deposits
Accounts for Returning Indians
In todays world many companies have emerged who have taken a serious note on the
importance of market research and he advantages of using it for the better growth and
development of the company. Hence, our competitors are those companys who are in
the market research and development field as well as the consultancies, since they also
make use of market research and business developers.
The products and BANK of our competitors are as follows:
A. Customer Satisfaction Analysis:
Customer
analysis
involves
gathering
data
about
the
customers
and
their
2.7 Market profile of the organization:HDFC Bank Limited provides various financial products and services. It operates in
three segments: Retail Banking, Wholesale Banking, and Treasury. The Retail Banking
segment provides various deposit products, including savings accounts, current
accounts, fixed deposits, and demat accounts. It also offers auto, personal, commercial
vehicle, home, gold, and educational loans; loans against securities, property, and
rental receivables; and health care finance working capital finance, construction
equipment finance, and warehouse receipt loans, as well as credit cards, debit cards,
depository, investment advisory, bill payments, and transactional services. In addition,
this segment sells third party financial products, such as mutual funds and insurance, as
well as distributes life and general insurance products through its tie-ups with insurance
companies and mutual fund houses. The wholesale banking segment provides loans,
non-fund facilities, and transaction services to large corporate, emerging corporate,
small and medium enterprise, supply chain, public sector undertaking, central and state
government departments, and institutional customers. It offers deposit and transaction
banking products, supply chain financing, working capital and term finance, agricultural
loans, and funded, non-funded treasury, and foreign exchange products. These
segments services include trade services, cash management, money market, custodial,
tax collection, and electronic banking. In addition, it provides correspondent bank
services to co-operative banks, private banks, foreign banks, and regional rural banks;
and wealth management products for non-resident Indians. The Treasury Services
segment operates primarily in areas, such as foreign exchange, money market, interest
rate trading, and equities. As of March 31, 2009, HDFC Bank had a network of 1,412
branches and 3,295 automated teller machines in 528 cities in India. The company was
founded in 1994 and is based in Mumbai, India.
In todays growing world everyone needs to diversify their business so as to keep in
touch with the rapid development. By analyzing the growing concerns of the market,
HDFC has clients varying from investment banking sector, retail, web designing
companies, etc. Due to this rapid development HDFC Group has many teams working
for the above mentioned sectors.
HDFC Bank began operations in 1995 with a simple mission: to be a
Bank".
"World-class Indian
excellence would help us get there. Today, we are proud to say that we are well on our
way towards that goal.
2.15 Businesses
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
Wholesale Banking Services
The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporates 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. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector companies.
It is recognised 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 worldclass service and delivered to customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank
Plus and the Investment Advisory Services programs have been designed keeping
in mind needs of customers who seek distinct financial solutions, information and
advice on various investment avenues. The Bank also has a wide array of retail
loan products including Auto Loans, Loans against marketable securities, Personal
Loans and Loans for Two-wheelers. It is also a leading provider of Depository
Participant (DP) services for retail customers, providing customers the facility to
hold their investments in electronic form.
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
2010, the bank had a total card base (debit and credit cards) of over 14 million. The
Bank is also one of the leading players in the merchant acquiring business with
over 90,000 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.
Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
With the liberalisation of the financial markets in India, corporates need more
sophisticated risk management information, advice and product structures. These
and fine pricing on various treasury products 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.
2.16 Ratings
Credit Rating
The Bank has its deposit programs rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has
assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the outlook on
the rating as "stable". This rating indicates "highest credit quality" where "protection
factors are very high"
The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE
and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II
Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA"
for the subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the
rating "AAA (ind)" with the outlook on the rating as "stable". CARE has also assigned
"CARE AAA [Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues.
CRISIL has assigned the rating "AAA / Stable" for the Bank's Perpetual Debt
programme and Upper Tier II Bond issue. In each of the cases referred to above, the
ratings awarded were the highest assigned by the rating agency for those instruments.
Corporate Governance Rating
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced
value creation and corporate governance practices" in future. The bank has been
assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability with
respect to wealth creation for all its stakeholders while adopting sound corporate
governance practices is the highest.
CHAPTER 3
RESEARCH METHODOLOGY
3.1
excellence. Therefore, undertaking the project helps in assessing the customer care
level of HDFC BANK. The study is applied descriptive as well as diagnostic in nature. It
also tends to find the customer view about important aspects of the services. At the
same time it was intended to find the customer view about the product and the quality of
service improvement. In short this problem can be defined as: Are customers
satisfied with the services at HDFC?
In todays era of cutthroat competition, it is of an uttermost importance to gain a cutting
edge over the competition, and develop a large market share. This is only possible if
there is a large customer base for the company.
3.2
1. To evaluate the perception level of the account holders towards HDFC BANK
2. To study the importance of customer relationship.
3. To study the impact of customer relationship management on bank customers.
4. To analyze the expectations of banking customers.
5. To suggest the banks under study to strengthen the customer relations.
6. To analyze the satisfaction level of customers of HDFC BANK on the following heads:
1.
2.
3.
Working environment
Customer care
Personal care of the customers
3.3
PLAN OF ANALYSIS :
Calculations have been done for interpretation such as percentages, averages.
The data collected from respondents through questionnaire are organized, coded,
processed and tabulated in order to create graphs and charts to make the project
understandable. Chi Square Test is performed on the inferred data to arrive at a
statistical conclusion.
TOOLS FOR DATA COLLECTION
The tool used for data collection is Primarily Questionnaire method. The questions
contained:
Open- Ended Questions
Where the respondent was given a chance to reply or give suggestions to the Company.
This included Free Responses questions where the respondents
ANALYSIS OF DATA
CHAPTER 4
SUMMARY OF FINDINGS
Most of the customers of the bank are satisfied, but there is a minority of
customers who are still looking for improvement in this aspect of service area as
well in the field of working environment.
One area of strength of the bank which it can really boast off as most of the
customers are satisfied when it comes to customer care.
Overall the result of survey has shown a positive sign for the overall
services from where on they can increase their customer base with the
exception of a few dissatisfied customers which needs to be looked after.
The bank has caused a lot of inconvenience to the customers regarding
its banking hours as shown from the result of the survey. Flexible banking
hours should be achieved to attain higher customer satisfaction again lot of
them are even satisfied .
There is a mixed response when it comes to transaction time. A certain section or
respondents seem to be satisfied but a substantial number of customers are
looking for faster transaction time.
CHAPTER 5
CONCLUSIONS & RECOMMENDATIONS
CONCLUSION
Hence, I conclude by understanding that marketing concepts is essentially about the
few things which contribute to the banks success:
The bank cannot exist without customer.
The purpose of a bank is to create, win and keep a customer. The customer is
and should be the central focus of everything the bank does.
Ultimate aim of a bank is to deliver satisfaction to the customers.
Customer satisfaction is affected by the performance of all the personnel of the
bank.
It is also a way of organizing the bank. The starting point for the organizational design
should be the customer and the bank should ensure that the services are performed
and delivered in the most effective way. Service facility should also be designed for
customer convenience.
RECOMMENDATIONS
1.
The environment of the bank can be made more customers friendly and the
working of the bank should be more organized and efficient by training the
employees of the bank.
2.
3.
4.
Proper and general insturuction about the maintenance and working of current
account and its benefits should be made clearer.
5.
The banking hours should be more customers friendly it should close little later in
the evening.
6.
The banking process needs to be more systematic so that the transaction time
can be reduced.
7.
8.
8. Special schemes should be provided for smaller retail shops as well new
package of offers and discounts should be provided for high network people
and senior citizens .
BIBLIOGRAPHY
BOOKS AND MAGAZINES
1) Tull S. Donald et al Hawkins I. Del --Marketing Research Measurement & Methods
6th edition
Published by Asoke K. Ghosh , Prentice-Hall of India pvt. Ltd.
2) Cooper R. Donald et al Schindler S.Pamela Business Research Method logy 2006
edition
Published by TATA McGraw HILL Publishing Company limited
India Today
Business world, Economic Times, Business world , Money regulator and Business Line
NEWSPAPERS
The Times of India
The Economic Times
Business Standard
WEBLIOGRAPHY
www.hdfcbank.com
www.google.com
www.scribd.com
www.wikipedia.com
www.slideshare.com