PROJECT REPORT

ON

DEPOSITS AND INTEREST RATES OF

DEPOSITS

IN

GURU NANAK DEV UNIVERSITY, AMRITSAR

IN THE PARTIAL FULFILLMENT OF THE DEGREE OF B.COM.
(PROF.)-III
SESSION: 2010-11

SUBMITTED TO:
SUBMITTED BY :
Mr. Vishal Dhawan Sharanjit Kaur
(Retail Finance Banking)

DIPS COLLEGE, DHILWAN

ACKNOWLEDGEMENT

It gives immense pleasure to record my indebtedness and deep sense of

gratitude to Respected Mr. Vishal Dhawan (Branch Manager, HDFC
Begowal) and their staff, my respected teacher Ms. Monica Sharma,
Lecturer in commerce department, DIPS College, Dhilwan, whose
guidance ,valuable suggestions , encouraging attitude and keen interest
enabled me to accomplish this work . It has been my proud privilege to
work under their able guidance. Business is like an ocean and a
manager is like a pearl driver in search of treasure lied beneath the sea;
there is no end of management not a manager lies to get me a report on
“DEPOSITS AND INTEREST RATES ON DEPOSITS”.

I would like to thanks my parents for

everything they have done for me. I express my heartfelt gratitude to my
Lecturer, who have shown me the direction and helped me through out
the entire course of study. I own a very special sense of gratitude to all
the authors and commentators, whose work I have consulted for present
study. Once again, I pay my special thanks to the manager and staff of
HDFC Bank Ltd., for giving me all the information required for this
project.

SHARANJIT KAUR
Deposits offered by HDFC and Interest Rates on Deposits

CONTENTS:

Profile of HDFC BANK

Introduction to the project
 Objectives of the project

 Scope of project
Deposits
 Types of Deposits

 Services offered by HDFC

 AQB Calculation

Rate of interest on deposits

Analysis and Interpretation
Suggestions and Recommendation
Conclusion
Bibliography
BANKING STRUCTURE IN INDIA
A bank is a commercial or state institution that provides financial
services, including issuing money in form of coins, banknotes or
debit cards, receiving deposits of money, lending money and
processing transactions. A commercial bank accepts deposits from
customers and in turn makes loans based on those deposits.
Banking system occupies an important place in nation
economy. In present day’s world, banking institutions have become
indispensable. They play a pivotal role in the economic development
of a country and enlistment of society. Banks are playing an
important role in the nation’s economy. In India, though the Money
market is still characterized by the existence of both the organized
and unorganized segments, institution in the organized money
market have grown significantly and are playing an increasingly
important role. The unorganized sector compromising the money
lender and indigenous bankers caters to the person’s economic needs
especially in country side. Amongst the institutions in the organized
sector money market, Commercial Banks and Cooperative Banks
have been in existence for the past several decades and now they are
being considered as the nerve center of the economy. Banking plays
a very important role in the economic development of the people.
Now-a-days we can not dream of any business without banking
assistance. This is reason the banks are remarked as life-blood of
modern economy. Centurion banks are a new concept in the banking
system and these banks are playing their role for the development of
the semi-urban and ruler areas. The Indian economy is characterized
by the escalating trends towards the usage of banking products and
services both the rural and urban markets.
Banking in India originated in the first decade of 18th century with
The General Bank of India coming into existence in 1786. This was
followed by Bank of Hindustan. Both these banks are now defunct.
 The oldest bank in existence in India is the State Bank of India being
established as "The Bank of Bengal" in Calcutta in June 1806. A
couple of decades later, foreign banks like Credit Lyonnais started
their Calcutta operations in the 1850s. At that point of time, Calcutta
was the most active trading port, mainly due to the trade of the
British Empire, and due to which banking activity took roots there
and prospered. The first fully Indian owned bank was the Allahabad
Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such
as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906,
in Mumbai - both of which were founded under private ownership. The
Reserve Bank of India formally took on the responsibility of regulating
the Indian banking sector from 1935. After India's independence in 1947,
the Reserve Bank was nationalized and given broader powers.
 Housing Development Finance Corporation Limited, more
popularly known as HDFC Bank Ltd, was established in the year
1994, as a part of the liberalization of the Indian Banking Industry
by Reserve Bank of India (RBI). It was one of the first banks to
receive an 'in principle' approval from RBI, for setting up a bank in
the private sector. The bank was incorporated with the name 'HDFC
Bank Limited', with its registered office in Mumbai. The following
year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275
ATMs across India. 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 liberalisation 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.

BUSINESS FOCUS

HDFC Bank's mission is to be a World-Class Indian Bank. The

objective is to build sound customer franchises across distinct
businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk
appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and
regulatory compliance. HDFC Bank's business philosophy is based
on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.

AMALGAMATIONS
 IS NOW

In 2002, HDFC Bank witnessed its merger with Times Bank Limited
(a private sector Bank promoted by Benett, Coleman & Co./ Times
Group). With this, HDFC and Times became the first two private
banks in the New Generation Private Sector Banks to have gone
through a merger.
In 2008, RBI approved the amalgamation of Centurian
Bank of Punjab with HDFC Bank. With this , the deposits of the
merged entity became Rs. 1,22,000 crore, while the advances were
Rs. 89,000 crore and the balance sheet size was Rs. 1,63,000 crore.

TECH-SAVVY
HDFC Bank has always prided itself on a highly automated
environment,be it in terms of information technology or
communication systems. All braches of the bank boast of online
connectivity with the other, ensuring speedy funds transfer for
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'.
Product and Services :

Personal Banking
•
Savings Accounts
•
Salary Accounts
•
Current 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 Current Accounts
•
Rupee Fixed Deposits
•
Foreign Currency Deposits
•
Accounts for Returning Indians
•
Quickremit (North America, UK, Europe, Southeast Asia)
•
IndiaLink (Middle East, Africa)
•
Cheque LockBox
•
Telegraphic / Wire Transfer
•
Funds Transfer through Cheques / DDs / TCs
•
Mutual Funds
•
Private Banking
•
Portfolio Investment Schemes
•
Loans
•
Payment Services
•
 NetBanking
•
InstaAlerts
•
MobileBanking
•
InstaQuery
•
ATM
•

Phone Banking
CORE VALUES OF HDFC BANK :
Integrity…
Walk the talk
Teamwork…
One team one dream
 Customer Centricity…
Serving the frontline
 Passionate Ownership…
 Energy in action
 Excellence…
Being the best

OBJECTIVES OF THE PROJECT :

The objectives of the study are –

The main objective of my project is to study the various services
offered by HDFC Bank to the customers.
1. To analyse the financial position of HDFC.
2. To examine that the deposits of HDFC are increasing or not.
3. To examine how the rate of interest is calculated on various
deposits.
4. To analyse the rates of interest on demand deposits and term
deposits and different time periods for that.
SCOPE OF THE PROJECT

The scope of the project is to cover the aspect of various deposit

categories bank is having and the rate of interest on various deposits.
It covers the analysis of deposits, which play an important and
continuous role in banking, as these are the basic part of whole tree
of banking. By far the biggest item on the liabilities side is the
deposits of the customers, which facilitates bank to credit creation
and lending. It is the crucial aspect on which every bank is
concentrating and can increase profitability.
The scope of the project is not limited to the analysis of deposits in
HDFC ,rather the efforts has been made to clear that what are the
account balance requirements in HDFC and how the rate of interest
is calculated on them. The analysis has been made of total deposits,
interest income , interest expended, saving accounts current accounts
in HDFC in last four years to know the performance of the bank.
Deposits offered by HDFC and Interest Rates on Deposits

DEPOSITS

The relationship between a banker and a customer start with the

opening of an account by the former in the name of letter. Initially
all accounts are opened with a deposit of money by the customer and
hence these accounts are known as deposit accounts.
The banker solicits the deposits from the members of the public
belonging to various walks of life, engaged in different status. The
nature of banking facilities sort by them, therefore introduced
different types of accounts with facilities and privileges.
In the course of the bussiness , the bank accepts cash and creates
bank deposits and converts those deposits again into cash. It also
transfers deposits from one person to another. The primary functions
of a bank are the receipt of deposits repayable on demand and
provision of credit facilities to merchants and manufacturers for
productive purposes.

TYPES OF DEPOSITS

There are different types of deposits which are accepted by the

banks –

1) ON THE BASIS OF CREDIT CREATION –

 PRIMARY DEPOSITS -- When a bank accepts cash from the
customer and opens a deposit account in his name , it is called
primary or passive deposit . The creation of primary deposit does
not mean creation of credit . These deposits simply convert currency
money into deposit money .
 SECONDARY DEPOSITS – When a bank ngrants loans and
advances , it , instead of giving cash to the borrower , opens a
deposit account in his name . This is secondary or derivative
deposit . Every loan creates a deposit . It is called derived deposit
because it has been derived from the loan transaction of the bank .

2) ON THE BASIS OF COST

 LOW COST DEPOSITS -- These are those deposits on which
the bank has to pay less cost , eg. – saving Accounts i.e, less rate of
interest as compared to other deposits such as term deposits.
 HIGH COST DEPOSITS – High cost deposits are those which
refer to high cost payable by bank . The deposits in which the bank
pays high rate of interest to the depositors eg.—Fixed deposits.
3) ON THE BASIS OF ACCOUNTHOLDERS –
 SINGLE – In these accounts only single persn is the
accountholder and can deposit or withdraw money as their own . No
other person can withdraw money from his account.
 JOINT ACCOUNT – The two or more persons can open a
joint account and both the accountholders can deposit or withdraw
money in this account .
 JOINT ACCOUNT ( EITHER OR SURVIVOR ) – In such
joint account, both the accountholders can deposit the money , but
only single person can withdraw the money.
 JOINT ACCOUNT (FORMER OR SURVIVOR) – In this
case the two persons have an account jointly, but only first applicant
is nominated or allowed to withdraw money from the account .This
has to be mentioned in the account opening form.
 JOINT ACCOUNT (LATTER OR SURVIVOR) – Such joint
account holds the condition of money withdrawn by second
applicant only.

4) THE DEPOSITS CAN BE BROADLY CLASSIFIED AS

UNDER –
 Savings deposits
 Current deposits
 Term deposits
 Recurring deposits
 Demat accounts
 Home safe accounts

DEMAND DEPOSITS:
A demand deposit is a deposit account held at a bank or other
financial institution, for the purpose of securely and quickly
providing frequent access to funds on demand, through a variety of
different channels. The types of demand deposit are explained
below:

1. SAVING DEPOSIT ACCOUNT – “Saving deposits” means a

form of demand deposit which is subject to restrictions as to the
number of withdrawls as also the amounts of withdrawls permitted
by the bank during any specified period . The aim of saving accounts
is to encourage thrift and moblise small savings of the public . The
depositor also gets interest on the deposits remained in the account .
But generally the rate of interest is lower than the fixed deposits .
2. CURRENT DEPOSIT ACCOUNT – Current accounts are
those accounts generally maintained by traders and bussinessmen
who have to make a number of payments every day. Money from
these accounts can be withdrawn any number or many times
depending upon the balance in the account or upto a particular
agreed amount . Normally , no interest is paid on these accounts .
The depositors have to pay certain incidental charges to the bank for
the services rendered by it. Current deposits are also called demand
deposits or demand liabilities.

3. DEMAT ACCOUNT
– Demat account is for dematerialisation. Dematerialisation is the
process by which physical certificates of an investor are converted to
an equivalent number of securities in electronic form and credited in
the investor's account with his DP. In order to dematerialise
certificates; an investor will have to first open an account with a DP
and then request for the dematerialisation of certificates by filling up
a dematerialisation request form [DRF]. A depository interfaces with
the investors through its agents called Depository Participants (DPs).
 Then buying and selling of shares become easier and quicker . Cash
benefits like dividends and interest will be directly paid to the
customer. One has the option to convert electornic shares back to
physical shares . One can avail loans against electronic shares.
Nomination facility can be availed for Demat acccount as well.The
customer can get statements through e-mail at no extra cost. He can
view transcation statements for the last 3 months by logging on
bank’s website. Bank have to send monthly statements to those who
conduct transaction frequently.

TERM DEPOSITS

1) FIXED DEPOSIT ACCOUNT – Fixed deposit means a

deposit received by the bank for a fixed period of time (say one , two
or five years)withdrawable only after the expiry of that fixed period
and includes deposits such as Recurring / Double Benefit Deposit /
Short Deposits / Monthly Income Certificate / Quarterly Income
Certificate etc. The rate of interest on this account is higher than that
on other types of deposits. The longer the period , the higher will be
the rate of interest . Fixed deposits are also called time deposits.

2) RECURRING DEPOSIT ACCOUNT – The purpose of these

accounts is to encourage regular savings by particularly the fixed
income group . Generally money these accounts is deposited in
monthly instalments for a fixed period and is repaid to the depositors
along with interest on maturity. The rate of interset on these deposits
is nearly the same on fixed deposits . The Recurring deposit in Bank
is meant for someone who want to invest a specific sum of money on
a monthly basis for a fixed rate of return. At the end, you will get the
principal sum as well as the interest earned during that period.

3) CERTIFICATE OF DEPOSIT : A certificate from a bank

stating that a company has so much money in the bank on term
deposit. It is a negotiable instrument and can be sold at a discount at a
short notice to raise cash.
HOME SAFE ACCOUNTS – Home safe account is another scheme
aiming at promoting saving habits among the people . Under this
scheme a safe is provided to the depositors to keep it at home and to
put his small savings in it . Periodically , the safe is taken to the bank
where the amount in safe is credited this account . This facility is
generally provided to kids (children).
Deposits offered by HDFC and Interest Rates on Deposits

SERVICES OFFERED BY HDFC

BANK

HDFC BANK mission is to be a WORLD CLASS INDIAN BANK

benchmarking themselves against international standards and best
practices in terms of product offerings , technology , service levels ,
risk management and audit & compliance . The objective is to build
sound customer franchises across distinct businesses. So it offers
various products and services to the customers . It offers following
deposits to the customers ---

1) SAVING DEPOSIT ACCOUNTS – HDFC Bank offers a

number of saving accounts to the customers to manage their moneis
which are as under –
• Regular saving account . Kid’s Advantage Account
• Saving Plus Account Institutional Savings
Account
• Saving Max Account Senior Citizens Account
• No Frills Savings Account Family Savings Group
• NRI Accounts Salary Account

2) CURRENT DEPOSIT ACCOUNT – HDFC present

folllowing range of current accounts that suit different requirements
–
• Current Account Apex Current account max
• Current Account Plus Current Account Flexi
 • Current Account Trade Current Account
Premium
• Current Account Regular

3) FIXED DEPOSIT ACCOUNTS :

• Super Saver Account
• Sweep-In Account
• 5 Year Tax Saving Fixed Deposits

4) RECURRING DEPOSITS

5) DEMAT ACCOUNT
 • Wide network of branches and over thousand ATMs to meet all your
banking needs no matter where you are located.
• Bank conveniently with facilities like NetBanking and MobileBanking-
check your account balance, pay utility bills or stop cheque payment,
REGULAR
 through SMS. SAVING ACCOUNT :
• Never overspend- Shop using your International Debit Card that reflects the
Features & Benefits :
actual balance in your savings account.
• Personalised cheques with your name printed on each cheque leaf for
enhanced security.
• Take advantage of BillPay, an instant solution to all your frequent utility
bill payments. Instruct for payment over the phone or through the Internet.
• Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver
facility on your account.
• Free cash withdrawals on any other Bank's ATM*
• Free Payable-at-Par chequebook, without any usage charges upto a limit of
Rs.50,000/- per month.
• Free InstaAlerts for all account holders for lifetime of the account.
• Free Passbook facility available at home branch for account holders
(individuals).
ACCOUNT BALANCE REQUIREMENT

OPTION 1 :
Minimum AQB required Rs. 10,000/- (Urban / Metro)
Rs. 5,000/- (Semi Urban / Rural)
If AQB is less than :
 Rs. 10,000/- (Urban / Metro) Rs. 750/- per quarter
Rs. 5,000/- (Semi Urban / Rural) Rs. 750/- per quarter

OPTION 2 :
Minimum AQB required with
Fixed Deposit of Rs. 50,000/- Nil
In case of non –maintenance Services charges as applicable
Of Rs. 50,000/- in Fixed Deposit in Option 1

 SAVING PLUS ACCOUNT :

Features & Benefits :
• Wide network of branches and over thousand ATMs to meet all your
banking needs no matter where you are located.
• Free cash withdrawals on any other Bank's ATM.
• Free International Debit Card for all account holders for life time of the
account.
• Free Payable-at-Par (PAP) chequebook, without any usage charges upto a
limit of Rs. 50,000 per month. Above Rs. 50,000, charge of Rs.2.90/- per
Rs. 1,000/- on the full amount.

• Free Demand Drafts on HDFC locations, upto a limit of 25,000/- per day.

• Free BillPay & InstaAlerts for all account holders for lifetime of the account

• Free Electronic Funds Transfer facility, NetBanking, PhoneBanking &

MobileBanking
• Special relationship discount on purchase of Gold Bars

• 25%-off on the Locker rental for the 1st year (only).

• Intercity Banking / Multi-city Banking. Free E-mail Statement Facility.

• Free Passbook facility available at home branch for account holders and
 ACCOUNT BALANCE REQUIREMENTS :

Minimum AQB required Rs. 10,000/-

Minimum AQB required with
Fixed Deposit of Rs. 50,000/- Nil

Service charges in case of non-maintenance :

If AQB in the Savings Plus Account

>= Rs.10,000/- & FD balance >= Rs. 50,000/- No charges

<Rs. 10,000/- & FD balance <Rs. 50,000/- then,

If AQB in Savings Account is between
Rs. 5,000/- & Rs. 10,000/- Rs. 750/-per quarter

< Rs. 5,000/- Rs. 1,000/-per quarter

 • Free unlimited transactions: Cash withdrawal and balance enquiry, at all
HDFC Bank ATMs & at all non HDFC Bank domestic ATMs using your
 SAVING
HDFC MAXCard
Bank Debit ACCOUNT :
• Free Gold Debit Card for primary account holder for lifetime of the account.
Features & Benefits
Gold Debit Card for other account holders at Rs 250/- p.a.
• Free Woman's Advantage/International Debit Card for all account holders for
lifetime of the account.
• Free Payable-at-Par (PAP) chequebook, without any usage charges upto a
limit of Rs. 2 lac per month. Above Rs. 2 lac, charge of Rs.3.50/- per Rs.
1,000/- on the full amount.
• Free Demand Drafts on HDFC Bank locations, upto a limit of
Rs. 1 lac per day.
• Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs
50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on
the full amount would be applicable.
• Free BillPay & InstaAlerts for all account holders for lifetime of the account

• Free Monthly Statement of Account.

• 50% off on the Locker rental for the 1st year only.
• Free NetBanking, PhoneBanking & MobileBanking
• Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs
50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on
the full amount would be applicable.
• Optional “MoneyMaximizer” (sweep- out) facility for conversion of your
surplus money into high earning fixed deposits, at the threshold of
Rs.1,25,000/- . In the event of the balance in SavingsMax account
exceeding / reaching Rs.1,25,000/-, the amount in excess of Rs.1,00,000/-
will be swept out in to a Fixed Deposit with a minimum value of Rs.25,000/-
for a 1year 1day period .
• Free Passbook facility available at home branch for account holders
(individuals).
• Free Email Statement facility .
ACCOUNT BALANCE REQUIREMENTS
Minimum AQB required Rs. 25,000/-
Mnimum AQB required with
Fixed Deposit of Rs. 1,00,000/- Nil

If AQB in the Savings Max acount

>= Rs. 25,000/- OR
FD balance >= Rs. 1,00,000/- No charges
 <Rs. 25,000/- & FD balance < Rs. 1,00,000/- then ,
If AQB in the savings account is between
Rs. 10,000/- &Rs. 25,000/- Rs. 1,000/- per quarter
<Rs. 10,000/- Rs. 1,500/- per quarter

THE SAVING MAX ACCOUNT IS OPENED WITH AN INITIAL

AMOUNT OF RS. 25,000/-

 NO FRILLS SAVING A/C :-

All this with a Zero Initial Pay-in and Zero Balance account !

Features & Benefits

 • Access a wide network of branches and over a thousand ATMs across
the country to meet all your banking needs.
• Bank conveniently with Free NetBanking
• Use the National Electronic Funds Transfer (NEFT) facility to transfer
funds from your HDFC Bank account to an account in another Bank at
the locations as specified by RBI
• Enjoy Free IVR based PhoneBanking. (Agent assisted calls will be
charged*)
• Get Free Quarterly Account Statements.
• Access your account through a Free ATM Card.
• Enjoy free Cash/Cheque Deposits at Branch/ATM
• Free cash withdrawal transactions at any Bank ATMS through Debit
Card
• 1 Free Cash withdrawal per month at the Branch. Additional Branch
Cash withdrawals in the month will be charged @ Rs.50/- per
transaction.
• International Debit Card available only on request at the branch @ Rs.
100/- p.a. (plus applicable taxes) for each applicant.
s • First Chequebook consisting of 25 leaves free and subsequent cheque
books to be charged at the rate of Rs 5/- per cheque leaf.
• Free InstaQuery facility
• Take advantage of BillPay, an instant solution to all your frequent
utility bill payments. Instruct for payment over the phone or through the
Internet .
• Enjoy Free InstaAlerts via e-mails or SMS
• Avail facilities like Safe Deposit Locker, Sweep-In and Super Saver on
your account.
• Free Email Statement facility .
 ACCOUNT BALANCE REQUIREMENTS

Minimum AQB required Nil

• Free cash deposit branch/ ATM
• 1 Cash withdrawl transaction per month at any branch :

At home branch: No limit on amount

Atnon-home branch: Upto Rs. 50,000/-
Per Day Free
Above Rs. 50,000/- Rs. 2.90/-per 1,000/-

• >1 Branch cash withdrawl per Rs. 50/-per

transaction

• First cheque book (25 leaves) Free

• Subsequent cheque book Rs. 5/- per cheque
leaf
 SENIOR CITIZENS ACCOUNT :

This account is opened for senior citizens with lower initial balance
of Rs. 2,500/-

Minimum AQB required Rs. 2,500/-

Service charges in case of non-maintenance Rs. 250
per quarter

Additional benefit for customers holding Senior Citizens

Accounts :

Description Sum Insured

Accidental Hospitalisation Cover (Re- Rs. 50,000/- p.a
imbursement)
Accidental Hospital Cash (one claim per year) Rs. 500/- per day for a
maxmimum of 15 days
per year
 INSTITUTIONAL SAVINGS ACCOUNT :
This account is opened for the institutions.
Minimum AQB required Nil
Cash Transactions
At account branch : Self/Third party Free
At non-account branch : Self
• Cash Deposits upto Rs. 50,000/-per day Free
• Cash Withdrawls upto Rs. 50,000/-per day Free
Above Rs. 50,000/-per day Rs. 2.90/-per
1000/-
At non-account branch : Third party
• Cash transaction limit of Rs. 50,000/-per day Free
Above Rs. 50,000/-per day Not Allowed

 SALARY ACCOUNT :
 HDFC Bank provide Salary Account for employees of the
companies, business institutions, government employees and armed
forces , who earn monthly salaries . It is opened at zero initial
balance . Over and above the saving account features, this product
also offers –
• Negotiable monthly , average quarterly balance statements.
• Free demand drafts.
• Overdrafts and loans.
• Priority Banking services for select employees.
• Special salary account for dependents of armed forces.
• Zero balance in salary account.

 FAMILY SAVINGS GROUP :

• Group of maximum 4 savings accounts of individuals
• Combined AB required Rs.
25,000/-

Service charges in case of non-maintenance :

 If AQB in Family Savings Group is between
Rs. 10,000/- & Rs. 25,000/- Rs. 1,000/-per quarter

<Rs. 10,000/- Rs. 1,500/- per quarter

 KID’S ADVANTAGE ACCOUNT :

This account is opened on the behalf of a minor by his / her natural

guardian or by a guardian appointed by a court of competent
jurisdiction .

ACCOUNT BALANCE REQUIREMENTS

OPTION 1:
Minimum AQB required
Rs. 5,000/- Metro/Urban location
Rs. 2,500/- Semi-urban/Rural
location
OPTION 2:
Minimum AQB required with
Fixed deposit of Rs. 50,000/- Nil
Services charges in case of non-maintenance:

If AQB in the Kid’s Advantage Account

>= Rs. 5,000/- or Rs. 2500/- OR
FD Balance >= 50,000/- No charges
<Rs. 5,000/- or Rs. 2,500/- AND
FD Balance <50,000/- Rs. 300/-per quarter
Deposits offered by HDFC and Interest Rates on Deposits
Deposits offered by HDFC and Interest Rates on Deposits

FIXED DEPOSITS OFFERED BY HDFC :

 REGULAR FIXED DEPOSIT :

Minimum deposit Rs. 10,000/-

(for simple or re-investment deposits)
All fixed deposits are cluster deposits held in units of Rs.1/-
Add-on Deposits
Minimum deposits Rs. 5,000/-

SWEEP-IN ACCOUNT :

With this facility , the total amount in fixed deposit account is

available for withdrawl through ATM/cheque. So next time when
the customer issues a cheque or uses ATM card reverse sweep will
allow automatic withdrawl facility. The required amount is
withdrawn and the interest is payable on the remaining amount of
fixed deposit from that period.
• Minimum AQB required Nil
• In case of non-maintenance of Rs. 50,000/- in fixed deposit , service
charges as per option for Savings Regular Account is applied.
• Sweep –In is not allowed on a single Fixed Deposit having value
greater than Rs. 15 lakhs.
• Sweep – In facility is available on any value of fixed deposit.
 5 YEAR TAX SAVING FIXED DEPOSIT :

Minimum deposit Rs. 100/- & in

multiples
of Rs. 100/-
Maximum deposit Rs. 1,00,000/-
Lock – in period 5 years
(Partial/Premature
Withdrawl not
allowed)
• Exemption under Sec80 C of the Income Tax Act subject to
necessary declarations given by the customer.
• Sweep –in not alloweed.
• No OD/ pledge allowed.

 SUPERSAVER ACCOUNT :

In this account , the bank agrees to grant a temporary overdraft

facility for an amount not exceeding the predefined limit which
 should not exceed 90% of the held by bank in fixed deposit on the
behalf of customer .
This is in addition to a zero balance savings accounts.
Account Balance Requirements :
Minimum FD amount with Rs.
25,000/-
minimum tenor 6 months

 DEMAT ACCOUNT :
Facilities offered by HDFC in Demat Account are -
• Opening of demat account.
• Dematerialisation i.e., converting physical certificates to electronic
form
• Rematerialisation i.e., conversion of securities in demat form into
physical certificates
• Nomination facility for demat accounts
• Services related to change of address
• Effecting transmission of securities
• Other facilities viz. holding debt instruments in the same account,
availing stock lending/borrowing facility, etc. electronic settlement
of trades in stock exchanges

Deposits offered by HDFC and Interest Rates on Deposits

CURRENT ACCOUNTS OFFERED BY

HDFC:

 CURRENT ACCOUNT APEX :

• Free intercity remittances / Collections through cheques /
Demand drafts / RTGS.
• 500 Free local / payable-at-par cheque leaves.
• Fre Cash Deposit up to Rs. 100 lacs per month at all branches in
home location.

 CURRENT ACCOUNT MAX :

• Free Intercity cheue payments & collections upto Rs. 5 crore
per month , free demand drafts / orders
• Free 500 local / payable-at-par cheque leaves.
• Free cash deposit upto Rs. 50 lacs per month in home location.

 CURRENT ACCOUNT FLEXI :

• Free home location cash deposit @ 12 times avg. Monthly
balance.
• Free Intercity cheque payments & collections upto 50 times
current month avg. Monthly balance.
• Free RTGS payments & collections.

 PLUS CURRENT ACCOUNT

HDFC Bank Plus Current Account is the perfect answer to the
banking needs of a bussiness which regularly sends funds to and
receivs funds from various cities in the country . Armed with the
advantage of access to more than 361 cities , intercity transactions ,
Payable-at-parCehque Issuance , Funds Transfers , NEFT , RTGS or
Demand Draft /Pay Order, are facilitated, besides faster collection of
outstation cheques .

FEATURES AND BENEFITS :

Average Quarterly Balance (AQB) Requirement in Rs. 1,00,000

Loacal cheque collections & payments Free

Local Account – to- acount Funds Transfer Free
Free monthly limits for Anywhere Cheque Collection 1,00,00,000
& Payments ( excluding Dahej) in Rs.
Anywhere Account-to-Account Funds Transfer Free
Free Monthly Cash Deposit Limit at Home Branch Location in 10,00,000
Rs.
Permitted-per-day Limit for cash deposit at Non-Home Branch 1,00,000
Location in Rs. (chargeable)
Cash Withdrawl from Home Branch Free
Free Payable-at-par Cheque Leaves per month 300
Free Per Day Cash Withdrawl Limit from Non-Home Branch 50,000
in Rs.
Free Pay Orders per month 50
Free Demand Drafts payable at HDFC Bank locations per 50
month
NEFT Payments & collections Free
RTGS Collections Free
RTGS Payments Free

 PREMIUM CURRENT ACCOUNT :

HDFC Bank Premium Current Account gives the benefits of Local

Cheque Collection and Payable-at-par Cheque Issuanceat any
HDFC Bank location at a nominal AQB requirement of Rs.
25,0000/- .

FEATURES & BENEFITS :

AQB requirement in Rs. 25,000

Local cheque collections & payments Free
Local Account-to-Account funds transfer Free
Free monthly limits for Anywhere cheque 25,00,000
collection & payments
Anywhere account-to-account funds transfer Rs. 15 per transaction
Free monthly cash deposit at home branch 3,00,000
location in Rs.
Permitted-per-day limit for cash deposit at Non- 25,000
home branch location in Rs.
Cash withdrawl from home branch Free
Free Payable-at-par cheque leaves per month 100
Free Pay orders per month Free for value above Rs.
1,00,000 per PO
Free Per Day Cash Withdrawl Limit from Non 25,000
home branch
Free Demand Drafts payable at HDFC Bank Free for value above Rs.
locations per month 1,00,000 per DD
NEFT Payments & Collections Free
RTGS Collections Free
RTGS Payments Rs. 100 per transactions

 TRADE CURRENT ACCOUNT :

This account is ideal for small businessmen and traders needing to

carry out regular payment, collection & Funds transfer transactions
locally, as well as across the country , in a time-saving and cost-
effective manner in addition to the conenience of depositing and
withdrawing cash from all HDFC Bank branches .

FEATURES & BENEFITS :

AQB requirement in Rs. 40,000

Local cheque collections & payments Free
Local Account-to-Account funds transfer Free
Free monthly limits for Anywhere cheque collection & payments 50,00,000
Anywhere account-to-account funds transfer Free
Free monthly cash deposit at home branch location in Rs. 5,00,000
Permitted-per-day limit for cash deposit at Non-home branch 50,000
location in Rs.
Cash withdrawl from home branch Free
Free Payable-at-par cheque leaves per month 200
Free Pay orders per month 30
Free Per Day Cash Withdrawl Limit from Non home branch 50,000
Free Demand Drafts payable at HDFC Bank locations per month 30
NEFT Payments & Collections Free
RTGS Collections Free
RTGS Payments Free

 REGULAR CURRENT ACCOUNT :

This account provides the benefit of access to the account from any
HDFC Bank branch at an AQB requirement of as low as Rs.
10,000.

FEATURES & BENEFITS :

AQB requirement in Rs. 10,000

Local cheque collections & payments Free
Local Account-to-Account funds transfer Free
Free monthly limits for Anywhere cheque Nil
collection & payments
Anywhere account-to-account funds transfer Rs. 15 per transaction
Free monthly cash deposit at home branch 2,00,000
location in Rs.
Permitted-per-day limit for cash deposit at Non- Nil
home branch location in Rs.
Cash withdrawl from home branch Free
Free Payable-at-par cheque leaves per month Nil
Free Pay orders per month Free for value above Rs.
1,00,000 per PO
Free Per Day Cash Withdrawl Limit from Non Nil
home branch
Free Demand Drafts payable at HDFC Bank Free for value above Rs.
locations per month 1,00,000 per DD
NEFT Payments & Collections Free
RTGS Collections Free
RTGS Payments Rs. 100 per transaction

SOME OTHER CONVENIENCES OF CURRENT

ACCOUNTS OFFERED BY HDFC :
• Instant transfer of funds between HDFC Bank accounts .
• Facility to deposit cash at any HDFC Bank branch across the
country.
• Anytime , Anywhere access to your accouny through Direct
Banking Channels such as NetBanking , ATMs , MobileBanking &
PhoneBanking. Withdraw cash without any charge from bank’s
ATM .
• Value added services suchs as doorstep banking & cash
mangement services.
• Dedicated Relationship Manager select branches .
Deposits offered by HDFC and Interest Rates on Deposits

RECURRING DEPOSIT OFFERED BY

HDFC :

Features :

Sr.No. Feature Description

1. Minimum installment Rs. 500 (in multiples of Rs. 100
thereafter)
2. Maxmimum Rs. 1 Lac
installment
3. Interest Rate Same as Fixed Deposits
4. Instalment Frequency Monthly
5. Minimum Tenure 6 Months (in multiples of 3 months
thereafter)
 6. Maxmimum Tenure 10 years
7. Compounding Quarterly
Frequency
8. Tax Deduction At No TDS
Source

Some other terms and conditions are –

• The installment once fixed can not be allowed to be altered at a later

date.
• In case of more than one installment being overdue at the time of
payment, the paid installment if sufficient to cover only one
installment will be appropriated towards the first/earliest installment
overdue.
• In case of premature closure within a month , no interest will be paid
out and principal amount is to be returned.
• In case of delay in payment of any installment , the accountholder
will be liable to pay penal interest at the rate of Recurring Deposit
interest rate (contracted rate of interest at the time of booking of the
RD) + 2% p.a. or such other rate as may be specified by HDFC
Bank form time to time for the actual period of delay.
AVERAGE QUARTERLY BALANCE
(AQB)
Average Quarterly Balance is the average balance to be
maintained in the account over a period of a quarter. The AQB is
different for different types of account.

MODE OF CALCULATION OF AQB

It is the average daily closing balance of each day spread over a
period of three months .

SAMPLE STATEMENT TO
ILLUSTRATE EXAMPLE
Sr. No Date Narration Withdrawl Deposit Closing
balance
A. 1-1-09 Credit 50 4,000
interest
capitalised
B. 10-1-09 ECS Credit- 10,000 14,000
PKT
C. 16-1-09 Cash 2,000 12,000
 withdrawl
D. 25-1-09 Cheque 13,000 25,000
deposit
MICR
Clearing
E. 5-2-09 Broadway 1,000 24,000
automobile
F. 19-2-09 Cash deposit 9,000 33,000
Mumbai
G. 26-2-09 Funds 29,000 4,000
transfer
H. 2-3-09 Cheque paid 1,500 2,500
I. 15-3-09 Cheque 25,000 27,500
deposit
J. 31-3-09 Cash 2,000 25,500
withdrawl
TOTAL 1,71,500

AQB CALCULATION
SR.NO. TIME PERIOD CALCUTION AMOUNT
A. EOD Balance from 1-1-09 to 4,000 *9 36,000
9-1-09
B. EOD Balance from 10-1-09 to 14,000*6 84,000
15-1-09
C. EOD Balance from 16-1-09 to 12,000*9 1,08,000
24-1-09
D. EOD Balance from 25-1-09 to 25,000*11 2,75,000
4-2-09
E. EOD Balance from 5-2-09 to 24,000*14 3,36,000
18-2-09
F. EOD Balance from 19-2-09 to 33,000*7 2,31,000
25-2-09
G. EOD Balance from 26-2-09 to 4,000*4 16,000
1-3-09
H. EOD Balance from 2-3-09 to 2,500*13 32,500
14-3-09
I. EOD Balance from 15-3-09 to 27,500*16 4,40,000
30-3-09
J. EOD Balance on 31-3-09 25,500*1 25,500

TOTAL EOD BALANCE 15,84,000

FOR THE QUARTER 1-1-09
 TO 31-3-09
DIVIDE BY NO. OF DAYS 90
IN QUARTER
AQB = 17,600

RATE OF INTEREST ON DEPOSITS :

The interest on deposits becomes the cost of the bank ,on the hand
income of the depositors. The amount in the account not withdrawn
earns interestincome of the accountholder. There are different rates
of interest on different deposits. The rate of interest on saving
accounts is less than that on fixed deposit. Current accounts does not
get interest. All these rates are specified by Reseve Bank of India
(RBI).

INTEREST ON SAVING DEPOSITS :

• As per RBI mandate, Saving Bank interest will be calculated
oon the daily balances maintained in the account at a rate of interest
as specified by RBI from time -to –time. The existing rate of interest
on saving deposits is 3.50% p.a.
• The Saving Bank interest will be paid at half yearly interest on
30th September And 31 March each year.
• Interest is calculated on the minimum balance in the SB
Account from 10th to the last day of the month.

INTEREST ON CURRENT DEPOSITS :

Current Deposits, also called Demand Deposits are withdrawable
many times a day. So, no interest is paid on demand deposits.
In periods of economic prosperity ,current deposits form a
substantial part of the total deposits while in periods of depression
,fixed deposits predominate over current deposits.

WHY BANKS DON’T PAY INTEREST ON CURRENT

ACCOUNTS

As per RBI definition, 'Current Account' shall mean a form of

demand deposit wherefrom withdrawals are allowed any number of
times depending upon the balance in the account or upto a particular
agreed amount and shall also be deemed to include other deposit
accounts which are neither Savings Deposit nor Term Deposit.
There are restrictions on number of withdrawals for other form of
accounts and interest rate & term vary depending on the number of
withdrawals. Since the unlimited number of withdrawals and credits
will increase the cost incurred by financial institutions, no interest is
generally payable on current account balance.
RBI allows primary (urban) co-operative banks may, at their
discretion, pay interest at a rate not exceeding half per cent per
annum on current accounts. As the discretionary provisions
generally lead to increase in cost of such deposits, banks are
encouraged not to pay interest on current accounts.

INTEREST ON FIXED DEPOSITS :

Time deposits are generally for long time period say two , five or ten
years. These can be withdrawn only on the expiry of a stipulated
 period of notice.The longer the period , the higher will be the rate of
interest.The inerest on fixed deposits is calculated on the total
amount of deposit with different rates in respect of different time
periods.

CALCULATION OF INTEREST ON FIXED DEPOSITS :

Time Period Amount Rate Rate of Interest Interest

of FD of interest for (Rs.) for Senior
Interest Senior Citizens
(%) Citizens(%) (Rs.)
7-14 days 15 Lacs 2.25 2.75 33,750 41,250
15-29 days 15 Lacs 2.25 2.75 33,750 41,250
30-45 days 15 Lacs 3 3.50 45,000 52,500
46-60 days 15 Lacs 3.50 4 52,500 60,000
61-91 days 15 Lacs 3.75 4.25 56,250 63,750
91days- 15 Lacs 4.50 5 67,500 75,000
lessthan
6months 1 day
6months 1 day- 15 Lacs 5.50 6 82,500 90,000
6months
15days
6 months 15 Lacs 5.50 6 82,500 90,000
16days
6months 17 15 Lacs 5.50 6 82,500 90,000
days-9 months
15 days
9months- 15 Lacs 6 6.50 90,000 97,500
16days
9months 15 Lacs 5.75 6.25 86,250 93,750
17days-1 year
1 year 1day- 15 Lacs 6.50 7 97,500 1,05,000
1year 15 days
1year16days- 15 Lacs 6.50 7 97,500 1,05,000
2year
2years1day- 15 Lacs 7 7.50 1,05,000 1,12,500
2years15days
2years16days 15 Lacs 7.25 7.75 1,08,750 1,16,250
2years17days- 15 Lacs 7 7.50 1,05,000 1,12,500
3years
3years1day- 15 Lacs 7.50 8 1,12,500 1,20,000
5years
5years1day- 15 Lacs 7.50 8 1,12,500 1,20,000
8years
8years1day- 15 Lacs 7.50 8 1,12,500 1,20,000
10years
METHOD OF INTEREST
CALCULATION:

1. ANNUALLY INTEREST OUTFLOW SCHEME :

Interest Amount: P*r*n/365
Where P = Principal
n = No. of days for which deposit is accepted
r = Rate of Interest (%) per annum

2. QUATERLY INTEREST OUTFLOW SCHEME:

Quarterly Interest Amount: P*r/4
Where P = Principal
r = Rate of Interest (%) per annum
3. MONTHLY INTEREST OUTFLOW SCHEME
Quarterly Interest Amount: P*Rm
Rm = (1+r/4)1/3 -1
Where P = Principal
r = Rate of Interest (%) per annum
Rm= monthly discounted rate

INTEREST ON RECURRING DEPOSITS :

• Interest on recurring deposits is calculated by the bank in

accordance with the directions advised by Indian Bank’s
Association.
• Interest rates for recurring deposits is compounded at quarterly
intervals, at the applicable rates.
• The interest rate applicable for premature closure of deposits(all
amounts) will be lower of : the base rate for the original/contracted
tenure for which the deposit has been booked Or the base rate
applicable for the tenure for which the deposit has been in force wiht
the Bank. The base rate is the rate applicble to the deposits of less
than Rs. 15 lacs as on the date of booking the deposit.
• The different rates of interest with their respective time periods
are-

Time Rate of Interest Senior Citizens Rate Effective

Period (%) (%) From
6months 4.50 5 May,2009
12 months 5.75 6.25 18 May,2009
24 months 6.50 7 19 Feb.,2010
48 months 7.50 8 19 Feb.,2010
60 months 7.50 8 19 Feb.,2010
96 months 7.50 8 19 Feb.,2010
121 months 7.50 8 19 Feb.,2010
DEPOSITS OF HDFC :-

YEAR AMOUNT (IN CRORE)

2006-07 68297.9
2007-08 100769
 2008-09 142812
2009-10 167404

Deposits are the main source of the income and revenue of a bank .
It circulates the flow of money between customers , bank ,and
capital market and act as source of investment made by the bank . So
HDFC Bank set its target of deposits or accounts to open.

The above table indicates that the total deposits of HDFC were
68297.9 crore in 2006-07 , which increased continuously through
out the period till 2009-10 and touched the point of 167404 crore in
2009-10. The reason of this increasing trend of deposits is better
customer services, more cream customers, good efforts of CSE and
advertising and marketing skills.
INTEREST INCOME OF HDFC :

YEAR AMOUNT (IN CRORE)

2006-07 6647.93
2007-08 10115
2008-09 16332.3
2009-10 16172.9

The Bank earns interest income by credit creation , giving loans

such as house financing , agricultural loans, educational loans etc. or
as penalty and Interest from ivestments. The interest income is the
part of Rupee Earned by the bank , so it should be maintained by the
bank.
As the structure of interest income of HDFC is studied , it could be
easily found that the interest income is increasing. In 2006-07, this
income was Rs. 6647.93 crore, which increased to Rs. 10115 crore
in 2007-08 . In 2008-09 , it increased by Rs. 6217.26 crore. But it
declined in 2009-10 indicating that their could be decrease in loans
or other sources of interest income.
SAVINGS DEPOSITS OF HDFC :
 YEAR AMOUNT (IN CRORE)
2006-07 19584.82
2007-08 26153.94
2008-09 34914.73
2009-10 49877

HDFC enjoys the immense goodwill and trust in the market, that
could be exasmined from above increasing trend of deposits. The
customers of the Bank in the category of Savings Accounts are
businessmen , servicemen , and other households i.e. middle class
people in early years. This proves that have more faith in the
governance and credibility of the bank. But at present , some cream
customers are also involved in it , that can be examined from
increasing savings deposits.
From the above table , it is clear that in 2006-07 Saving deposits of
HDFC were Rs. 19584.82 crore, which further increased to Rs.
26153.94 crore in 2007-08. The trend continued in 2008-09 too. In
2009-10, these increased to Rs. 49877 crore. This shows that the
sales of Savings products has been increasing with the passage of
time and the bank has been able to satisfy its customers and made
efforts to achieve efficiency and thus reaching its standards.
 .

CURRENT DEPOSITS OF HDFC :

 YEAR AMOUNT (IN CRORE)
2006-07 19811.84
2007-08 28759.7
2008-09 28444.92
2009-10 37227

From the above table it is clear that , in 2006-07, the current deposits
of HDFC were Rs. 19811.84 crore and further increased by Rs.
8947.1 crore. But it declined in 2008-09 to Rs. 28444.92 crore i.e.
by 314.2 crore. Inspite of this decline, these increased in the year
2009-10 with large extent upto Rs. 37227 crore due best efforts.

At HDFC Bank, we believe one size never fits all. HDFC thus
designed and tailor-made our Current Account schemes to suit
different customers’ requirements. Yet the current deposits are very
low as compared to savings deposits of the bank. It means that
business customers are less, so the bank should make best efforts to
work upon marketing strategies in case of current accounts.
.
CASA PERCENTAGE OF HDFC :

YEAR CASA (IN %)

2006-07 57.7%
2007-08 54.5%
2008-09 44.4%
2009-10 50%

HDFC sets CASA (Current Accounts Savings accounts ) to achieve

its goals. This CASA percentage expresses the efficiency of sales
department.
As we see, the CASA percentage in the early was more achieved.
In 2006-07 it was 57.7% , that was much better than the year 2008-
09. In 2008-09 , it was 44.4% , even not the 50%. The CASA
achieved is showing the decreasing trend upto 2008-09. But due
working upon marketing strategies, this percentage increased to
50% in 2009-10. But yet there is great need of sustained efforts,
strong fundamentals and progressive policies.
..

INTEREST EXPENDED BY HDFC :

 YEAR AMOUNT (IN CRORE)
2006-07 3179.45
2007-08 4887
2008-09 8911
2009-10 7786.3

A Bank expend the interest on the deposits, that it holds on the

behalf of the customers as these deposits acts as a source of
investment for the bank and to earn revenue. So the interest is the
reward for the customers to use their money by bank for the period
not withdrawn. HDFC has been able to satisfy its customers and to
hold their trust in the bank . So the deposits increased with
considerable amount and that means to pay more interest for the
amount in deposits.
The bank paid interest Rs. 3179.5 crore in 2006-07, whereas in
2007-08 in expended Rs. 4887.12 crore and in 2008-09 , it increased
by Rs. 4024 crore approximately near to be by double amount.
 But 2009-10 shows that the bank expended interest of Rs. 7786.3
crore which is less than the previous year. The reason may be more
withdrawls from the deposits and less percentage of fixed deposits.
As a result of whole study of structure of interest, it could be said that
net interest income as a whole of the Bank has increased during the 4
years.
SUGGESTIONS AND
RECOMMENDATIONS
After the data analysis and interpretations, the suggestions and
recommendations are given below:
1. The analysis shows that the maximum number of clients of the
banks are businessmen and servicemen. The bank has not been so
much successful in capturing students of community. So the bank
should provide some extra facility to attract the students.
2. Majority of the people holding savings account are from service
background .The bank is less preferred for recurring deposit. So the
bank should improve marketing strategies which helps in
maintaining the present services of recurring account, capturing the
target area and attract the new customers.
3. The customers are satisfied with the facilities given by the bank
but most of the customers do not know bank’s official. So the bank
should provide some more information to its customers through
internet, newspaper, television etc. This also helps to attract new
customers and increase faith of the present customers.
4. Contract Sales Executives should be trained to explain the product
features and its value added services to make customer’s product
selection convenient and should be encouraged in order to improve
CASA percentage. Although there are more saving accounts in the
bank , yet most of these people did not even know completely about
concepts, benefits and features of their accounts.
5. The bank prefers cream customers . It is good to increase profits .
But it should also emphasis on small scale units in order to compete
other banks.
6. Though the bank offers free doorstep banking once a day this
fact is also not known to many customers or they still do not trust
this service, what ever the reason the bank can popularise this
service to gain an edge over nationalised banks and co-operative
banks.
7. Although, the balance requirements in the accounts are high.
Yet most of the customers do not have except a few. So these may
not be changed by the bank.
8. Customers give first preference to the HDFC. This means that
bank is successful in maintaining the faith of the customers and the
bank should also continue all this in future so that customers always
rely on this bank and make their investments without worrying.

CONCLUSION:

The project is based on the study of deposits offered by HDFC Bank

and interest rates on deposits. Because accepting deposits is the
primary and all time activity of the banking system. So a continuous
research is made into various areas for finding out the deposits of
HDFC and interest rates thereon, as this is a continuous process
without the visible ends. HDFC bank offers nine Savings Accounts,
more than eight current accounts , good manageable Fixed accounts
and Demat accounts in which some of them nomination facility is
available. The different accounts are offered by the bank after
viewing that one thing does not suit all. The customers get better
services and products at the bank and have their trust in the bank ,
which is being depicted by the analysis of increasing deposits of
HDFC. The deposits can be increased if the suggestions made are
viewed. On the other hand , rate of interest on all deposits are
specified by RBI, which can not be altered by the bank . During the
study of rate of interest , the aspect has come forword that the senior
citizens get 0.50% more interest than the normal rate. At the end, we
can say that HDFC is well on its way towards its goal as we have
realised that only a single minded focus on product quality and
service excellence is there in case of deposits.
BIBLIOGRAPHY :
BOOKS:

MARKETING MANAGEMENT : PHILIP KOTLER

BANKING (THEORY AND PRACTICE) : MONICA AGGARWAL,
A.V.
RANGANADHACHARY
OTHERS :

BANK HISTORY AND PAST RECORDS

BALANCE SHEETS OF HDFC BANK
SITES VISITED : www.hdfcbank.com