INTERNSHIP TRAINING PROJECT

REPORT
On
“A study on Screening & Eligibility analysis for Credit card
at HDFC BANK

Towards partial fulfillment of

Integrated Master of Business Administration (IMBA)
Indian Institute of Plantation Management Bangalore

Submitted by
Pavan Kumar A K
3rd Semester
Roll No-18OTCMD018

Under Supervision of
Dr .Shilpa . K
Assistant Professor

Session 2019-2020
School of Management
 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its existence
to the constant support and guidance of a number of people. I am grateful to all of them.

I owe a never-ending debt of gratitude to Dr. Shilpa K for their expert guidance and support.

I would like to thank all the respondents for giving their valuable time and providing useful
information.

I am also grateful to all those who have either directly or indirectly contributed towards the
completion of the project, for their support and encouragement.

Pavan Kumar A K
 DECLARATION

I do hereby declare that the Internship Project Report titled “A study on Screening &
Eligibility analysis for Credit card at HDFC BANK” submitted by me towards the partial
fulfilment of the requirement of Integrated Master of Business Administration, exclusively
prepared and conceptualized by me and is not submitted to any other Institution or University
or published anywhere before for the reward of any Degree/Diploma/Certificate. It is the
Original work of mine and has not been obtained from any other part.

Pavan Kumar A K

MBA (3rd SEM)

 PREFACE

As a part of our course curriculum I had to go through a Internship Project Report on any topic
to get the right exposure to the practical aspects of business management.

I want to express my gratitude for the experience and practical knowledge that I earned during
the Summer Internship. In this project report I had presented my great experience in the form
of words. In making the project report theoretical knowledge was needed more than the
practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to its
competitors. I have enjoyed my report preparation and have learnt lots of new things. I have
tried my level best to make this report a reader friendly & also did my level best to fulfill the
objective of the study.
 TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
a. Meaning and Definition
b. Indian Banking Industry
c. Indian Banking System
d. Major Players in India
2. Introduction to Digitalization
a. Meaning and Definition
b. Digital Banking
3. Company Profile
a. History of HDFC Bank
b. Mission, Vision and Objectives
c. Management at HDFC Bank
d. Business Profile
e. Ratings/Awards
f. Products of HDFC Bank
g. Digital Services of HDFC Bank
h. Digital Initiatives
i. Departments at HDFC Bank
g. Swot Analysis of HDFC Bank
Part II
4. Objectives of the study
5. Literature Review
6. Research Methodology
a. Research Design
b. Research Type
c. Sampling Design
d. Sources of Data Collection
e. Data Collection Tools
f. Methods of Data Collection
Part III
7. Data Analysis & Interpretations
8. Findings
9. Conclusion
10. Suggestions
11. Limitations
12. Bibliography
13. Appendix
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial financial services.
The principal type of baking in the modern industrial world is commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money
from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of money which it
pays out on customers order." In fact this is the function which the bank performed when banking
originated.

"Banking in the most general sense, is meant the business of receiving, conserving & utilizing the
funds of community or of any special section of it."

-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where credits are
opened by deposits or collection of money or currency or where money is advanced and waned.

-By Findlay Sheras

Thus
A Bank:

 Accept deposits of money from public.

 Pays interest on money deposited with it.
 Lends or invests money.
 Repays the amount on demand,
 Allow the money deposited to be withdrawn by cheque or draft.

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ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the
benefit of money as a medium of exchange, the importance of banking was developed as it provides
the safer place to store the money. This safe place ultimately evolved in to financial institutions that
accepts deposits and make loans i.e., modern commercial banks.

INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have started with the
appearance of money. The first record of minted metal coins was in Mesopotamia in about 2500B.C.
the first European banknotes, which was handwritten appeared in1661, in Sweden. Cheque and printed
paper money appeared in the 1700’s and 1800’s, with many banks created to deal with increasing
trade.

The history of banking in each country runs in lines with the development of trade and industry, and
with the level of political confidence and stability. The ancient Romans developed an advanced
banking system to serve their vast trade network, which extended throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban co”, meaning
bench, because moneylenders worked on benches in market places. The bank of Venice was
established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver in their safes
in return for a fee. Receipts given to the Merchant were sometimes used to buy or sell, with the metal
itself staying under lock and key. The goldsmith realized that they could lend out some of the gold and
silver that they had and charge interest, as not all of the merchants would ask for the gold and silver
back at the same time. Eventually, instead of charging the merchants, the goldsmiths paid them to
deposit their gold and silver.

The bank of England was formed in 1694 to borrow money from the public for the government to
finance the war of Augsburg against France. By 1709, goldsmith were using bank of England notes of
their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks merged into
larger and fewer groups and expanded into other country.
2
HISTORY OF INDIAN BANKING INDUSTRY

Banking in India has a long and elaborate history of more than 200 years. The beginning of this
industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was
established. But the industry changed rapidly and drastically, after the nationalization of banks
in 1969.

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-
regulated. The financial and economic conditions in the country are far superior to any other country in
the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and
have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.

The digital payments system in India has evolved the most among 25 countries with India’s Immediate
Payment Service (IMPS) being the only system at level 5 in the Faster Payments Innovation Index
(FPII).*

Market Size

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49 foreign
banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in
addition to cooperative credit institutions (FY17 data). In FY07-18, total lending increased at a CAGR
of 10.94 per cent and total deposits increased at a CAGR of 11.66 per cent. India’s retail credit market
is the fourth largest in the emerging countries. It increased to US$ 281 billion on December 2017 from
US$ 181 billion on December 2014.

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49 foreign
banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in
addition to cooperative credit institutions.

Indian banks are increasingly focusing on adopting integrated approach to risk management. Banks
have already embraced the international banking supervision accord of Basel II, and majority of the
banks already meet capital requirements of Basel III, which has a deadline of 31 March 2019.

Reserve Bank of India (RBI) has decided to set up Public Credit Registry (PCR) an extensive database
of credit information which is accessible to all stakeholders. The Insolvency and Bankruptcy Code
(Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the banking sector.
3
FUNCTIONS OF BANKS

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange

STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and specialized
banking institutions. The industry is highly fragmented with 30 banking units contributing to
almost 50% of deposits and 60% of advances. The Reserve Bank of India is the foremost monitoring
g body in the Indian Financial sector. It is a centralized body that monitors discrepancies and
shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) – the
regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks

Schedule Commercial Banks constitute of those banks, which have included second schedule of
Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks in this schedule that
satisfy the criteria laid down vide section 42 (60 of the act) this sub sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector
Public sector banks have either government of India Reserve Bank of India (RBI) as the majority
shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks
4
 Industry estimates indicate that out of 274 commercial banks operating in the country, 223
banks are in the public sector and 51 are in the private sector. These private sector banks include
24 foreign banks that have begun their operations here. The specialized banking institutions that
include cooperatives, rural banks, etc. form a part of the nationalized banks category.

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op Banks

and Commercial
State co-op Commercial
Primary Cr. Societies Banks
Banks Banks Societies

Indian Foreign

Public Sector Private Sector

HDFC,
Banks Banks
ICICI, etc
ICICI etc.

State Bank of Other Nationalized Regional

India and its Banks Rural Banks
Subsidiaries

5
CLASSIFICATION ON THE BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

PUBLIC SECTOR BANKS

Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks.
In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized.
Therefore in 1980 the number of nationalized bank 20. But at present there are 9 banks are
nationalized. All these banks are belonging to public sector category. Welfare is their principle
objective.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country
such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in
preparation to the share of the banks held by him.

CO-OPERATIVE BANKS
Co-operative banks are those financial institutions. They provide short term &
medium term loans to their members. Co-operative banks are in every state in India.
Its branches at district level are known as the central co-operative bank.

ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act. 1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock company. It is a co-
operative organization. These banks find their mention in the second schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of these banks is
less then Rs.5 lacks. The no. such bank is gradually tolling in India.

6
CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

 COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders. Since their
deposits are for a short-period only. They cannot lend money for a long period. These banks reform
various types or agency job for their customers. These banks are not in a position to grant long-term
loans to industries because their deposits are only for a short period. The majority of joint stock banks
in India are commercial banks which finance trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and put them into
productive use. These banks have shown marked development in Germany & Japan. These banks are
established in HAMBURG City of Germany in 1765. In India a department of post offices functions
as a saving banks.

INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help industrials firms to
sell their debentures and shares. Some times, they even underwrite the debentures & shares of big
industrial concerns.

These banks found their origin in India. These banks made a significant contribution to the
development of agricultural and industries before independence. Mahajans, rural moneylenders and

CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the country. The
central bank is the undisputed leader of the money market. As such it supervises controls and regulates
the activities of commercial banks affiliated with it. The central bank is also the higher monetary
institution in the country charged with the duty & responsibility of carrying out the monetary policy
formulated by the government. India's central bank known as the reserve bank of India was set up in
1935.

7
Investment analysts are the backbone of the financial services sector. They study the financial
reports of companies, assess various statistical information, profitability projections, compare financial
results, survey the industry as a whole and on the basis of the available information, and finally
conclude to a decision. Equity Analysts do jobs similar to investment analysts and research the equity
markets and make predictions.

MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK

8
 INTRODUCTION

The significance of money and credit need no exaggeration. Application of Technology

has transformed very lifestyle of the people and the entire world is dependent on it. In
service sectors like banking, education, health, retailing, etc. technology has become the
main player. Integration of banking services with the technology has given rise for new
‘technology-driven’ services, apart from enhancing overall efficiency of the banking
industry in serving customers. Credit card facility of banks combines technology with the
flow of credit and serves the needs of customers.

India is one of the fastest growing economies in Asia; however, credit card use remains
limited. The credit card market in India had witnessed a steady growth in the late 1980s
and early 1990s, but currently stands stagnant. Indian banks such as State Bank Group,
Citi Bank, Axis Bank, Bank of Baroda, Corporation Bank and HDFC offer credit card
services to their customers.

Credit card use represents a customer lifestyle and increase in the standard of living. The
growing income of the upper middle class is an important driver of the credit card use.
During the year 2007, credit card use in the Asia Pacific region stood at $1.3 trillion,
which was 30 percent of global credit card transactions

Getting Credit Cards Easy now a days Compare to Previous Years. with in a week we get credit
cards. This is Because of Growing Bank Sectors & Adopting New Technology in Bank

What is Credit Card .?

Credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy
goods and services based on the holder's promise to pay for these goods and services.

The issuer of the card creates a revolving account and grants a line of credit to the from which the user
can borrow money for payment to a merchant or as a cash advance to the user.

There is now a flood in Indian banks offering credit cards to the potential customers. Multinational
banks operating in India also have joined the bandwagon with high voltage advertising and seemingly
competitive reward programme for loyal credit card users. Indian credit card market is growing at
almost 30 to 40 per cent annually and the number of credit cards are circulating to twenty seven and
half millions.

9
 Credit card can, therefore, be considered as a good substitute for cash and cheques.

 Many of Nationalized Banks also uses various Risk management Software’s . its has
Became broader aspect in terms of checking their Credit Worthiness.

 Even Many Of the Private Credit Giver Apps uses Various Software like Polaris etc

 Some of the Credit Giving apps like Slicpay , Red carpet , Udhar ,Have emerged at a
Greater Extent to Acquires a Market

Features of Credit Card

1) Credit Card Issuer

This is the bank that issued the credit card. You apply to this bank to get the card, and it determines
card details like reward points and benefits.

2) Credit Card Name

This is the name of this specific credit card. Card names often begin with the name of the issuing bank
followed by the particular card name, the word they use to begin most of their card names, followed by
the name of this particular card: “Cash Rewards.”

3) Credit Card Network

This is the credit card network and level of service associated with this card. If this card were of Visa
Signature status, it would say so right here. The credit card network is responsible for processing
payments made with the card, and there are 4 of them:

 Visa
 Mastercard
 RuPay

Visa and Mastercard are the world’s largest credit card networks, and while they’re both accepted far
and wide, they do have some differences.

10
4) Cardholder Name

The name of the owner of the card.

5) Credit Card Number

This is the identifying number associated with this particular card.

It is stored in the magnetic strip. When you swipe your card at a terminal or reader, your number
provides information about the credit card network and the issuer.

Your account number consists of up to sixteen digits and is allocated by your card issuer. Some cards
have only seven digits.

Advantage of Credit Card

 Convenience
 Recurring payments
 Safer
 Interest-free credit
 Rewards:
 Expense tracker
 Credit score

Dis-Advantage of Credit Card

 Blowing Your Budget

 High Interest Rates and Increased Debt
 Credit Card Fraud
Measure to take using Credit Card

 Keep track of all your purchases.

 Don't spend outside your budget.
 Pay off your balance on all of your credit cards at the end of each month.
 Don't loan your credit or give out your credit card information to anyone but reliable
companies.

11
How Credit Card Works

1.

1. Consumer:

a. The first step in credit card processing happens on the consumer level, when a cardholder
swipes, dips their card, or hands over their payment information to the merchant.

2. Merchant:

The merchant accepts and collects the payment information.

a. This can be done in one of two ways. The payment can be accepted physically in so-called card
present transactions. This usually happens at a storefront, with some a credit card reader.

b. The merchant step can also happen online for card not present transactions. Instead of a card
reader, merchants use an online gateway to collect the payment from their customer.

3. Processor:

a. The credit card processor collects that information and is responsible for routing that data
across to the other stages, and facilitating communications between various parties.

4. Card Networks:

a. Your customer's card will operate one of the major credit card networks the most
common ones are Visa and MasterCard.
b. Once the networks receive the payment information from the processor, they pass it to
your customer's bank.

12
 5. Consumer Bank:

a. The cardholder's bank then receives the payment request, and they verify whether the
cardholder has the appropriate funds or credit to complete the purchase.

b. The bank may also run through additional security measures to verify whether they
purchase is legitimate, and not fraudulent.

c. Once they establish that the customer has the funds needed and that the purchase is not
fraudulent, they send a message back through the networks and through the credit card
processor, allowing the transaction to go through.

6. Back To The Merchant:

a. Lastly, the message that the payment has been requested or denied flows back through
the same channels it did to get to the cardholder's bank. When the transaction is handled
in-person, this usually corresponds with a message on the card reader like "Approved" or
"Declined".

b. Assuming a transaction is cleared, the merchant is expected to provide the customer with
whatever goods or services were promised in return for the payment.

Getting the credit card easy but the background work done by concerned bank it is too difficult to give
credit card to people they have to Consider various factors . In this Project we Study on Screening &
Eligibility analysis for Credit card at HDFC BANK

How To Apply For A HDFC BANK Credit Card (And Approval Requirements)

 Common Factors Influence for getting Credit Card :-

 Free borrowing
 Earn free money
 Build a good credit report
 Free insurance
 Protect your money
 It’s the only way to pay
 Emergency Needs
 Personal Expenses

13
How to get Credit Card for that ((reference to HDFC Credit Card))
Customer has Some Eligibility Criteria Based on that they get credit card
Customer has to Select Credit card according to his Eligibility Criteria Stated By Bank
Like are:-
a) Be at least 21 years old or 18
b) Source of Income
c) Occupation :- Salaried / Self Employed
d) Documentation
e) Previous positive credit history

14
Applicants who want Credit Card they Submit A Application through
 Online
 Post
 Visiting A Branch

Now A Days we Get application Through Online Portal of HDFC bank:-

Step 01 : If Applicant pass the eligibility Criteria he should Choose a Best credit
card, in HDFC Website : -

https://www.hdfcbank.com/personal/pay/cards/credit-cards

Selection of Cards Filling of Online Application

A credit card application typically asks for you:

 Name, date of birth and Social Security number

 Gross annual income

 Housing situation

 Time at current residence

 Your signature and date

After Completing of Application . Applicant has to agree terms & Conditions.

All the application of Applicants are Stored in Physical Form & website for Reference

15
In this stage the Risk analyzer Analyze the Various Factors for analyzing the
Applicants Application like

 Segregating the Applications Based on Provided Details

(Any Mismatched Documents /Application can be
rejected)
 Checking their Work Background & Personnel Details

 Checking the Previous loan History

 Checking Credit Risk Factors of Applicant

 Setting a Credit Score Based on Performance in Bank

&old Records
 Giving Acceptance for Credit Risk

 Setting & Approving the Credit limit

 Setting the Interest Rates Based on Approved Limit .

Credit Risk : It is the probability that the borrower will not repay the loan in accordance to
the term of agreement

1. Components of Credit Risk:

a. The capacity and willingness to repay of obligor

b. External environment (Operating conditions ,country risk ,etc.)

c. Characteristic of relevant credit instrument (Product, facility, issue etc.)

d. Quality and sufficiency of any credit risk mitigants (Collateral ,Guarantees ,Credit
enhancements etc. )

Credit limit – The maximum amount of charges a cardholder may apply to the Account

Revolving Line Of Credit –

An agreement to lend a specific amount to a borrower and to allow that amount to be borrowed
again once it has been repaid. Most credit cards offer revolving credit.

16
 COMPANY PROFILE
History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to receive as in
principal 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.

The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office
in Mumbai, India. The Bank commenced operation as a scheduled Commercial Bank in January 1995.

Mission, Vision and Objectives

Mission of HDFC is

To become “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 and
compliance.

The objective is to build sound customer franchises across distinct business so as to be a preferred
provider of banking services for target retail and wholesale customer segments and to achieve a healthy
growth in profitability. 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 five core values:

 Operational Excellence,
 Customer Focus,
 Product Leadership,
 People and Sustainability.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services industry by
following a disciplined growth strategy and delivering high quality customer service.

 Leverage their technology platform and open, scale able systems to deliver more products to more
customers and to control operating costs.

 Maintain their current high standards for asset quality through disciplined credit risk management.
 Develop innovative products and services that attract our targeted customers and address
inefficiencies in the Indian financial sector

 Continue to develop product and services that reduce our cost of funds.
17
 Business Profile

HDFC Bank caters to a wide range of banking services covering commercial and investment banking
on the wholesale side and transactional / branch banking on the retail side. 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..

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial
products and banking services, giving the customer a one-stop window for all his/her banking
requirements. The products are backed by world-class service and delivered to customers through the
growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking,
Net Banking and Mobile Banking.

Products of HDFC Bank

HDFC bank provides very large range of financial product to the customer for their better financial
transaction. The product of HDFC bank are

Savings Account
 Savings Max Account
 Regular Savings Account
 Women Savings Account
 Kids Advantage Account

Salary Accounts
 Premium Salary Account
 Regular Salary Account
 Defence Salary Account
 Salary Family Account
 Classic Salary Account

18
Current Accounts
 ULTIMA Current Account
 Supreme Current Account
 Apex Current Account
 EZEE Current Account

Deposits
 Regular Fixed Deposit
 Recurring Deposit
 5 year Tax Saving Fixed Deposit
 Safe Deposit Locker – the bank also provides the facility of Safe Deposit lockers for you to
store your valuable deposits. The lockers are available in various sizes at various locations.

Rural Accounts
Accounts offered by the bank to farmers for their banking needs. there are 2 types of rural accounts
available:

 Basic Savings Bank Deposit Accounts – Farmers

 Kisan Club Savings Accounts

Loans
Credit Cards
 Super Premium Cards- There are 3 variants under the Super Premium Variety which are:
 Infinia
 Regalia
 Diner’s Club Black

 Co-Brand Credit Cards

 Jet Privilege HDFC Bank Platinum
 Platinum Times Card
 Titanium Times Card

 Professional Credit Cards-

 Doctor’s Superia
 Teacher’s Platinum
 Premium Travel Cards
 Superia
 AllMiles

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 Cash back cards-:

 Platinum Edge
 Titanium Edge
 Money Back

 Premium Cards:

 World MasterCard
 Diners Club Premium
 Diners Club Rewardz
 Visa Signature

 Platinum Plus Card-

 Business Platinum
 Business Gold Credit Card
 Corporate Platinum
 Corporate World MasterCard
 Corporate VISA Signature
 Corporate Card
 Purchase Card
 Distributor Card

 Debit Cards

 EasyShop Platinum Debit Card

 Jet Privilege HDFC Bank World Debit Card
 Easy Shop Titanium Royale Debit Card
 EasyShop Titanium Debit Card
 EasyShop Debit Card
 EasyShop Business Debit Card
 EasyShop Women’s Advantage Debit Card
 EasyShop NRO Debit Card

 Demat Account

 2 in 1 Account
 3 in 1 account

20
  Insurance
 Health Insurance
o Health Suraksha
o Critical Illness Silver
o Critical Illness Platinum Plan
o Individual Personal Accident Plan II

Objectives of the Study

The objectives of the study are:

 To Study The Types Of Credit Card With Special Preference to HDFC.

 To assess the eligible credit limits and the actual credit limits availed by the card holders.
 Factors Influence for Getting Credit Cards
 How to Screening Applicants
 To Study Credit Card Payment Processing And How It Works
 Examine the Credit Worthiness of Applicant
 To offer suggestions for further improvement
 To Study The how Screening And Eligibility is important to get Credit Card
 To Study Problems and Risk Associated in getting Credit Card

Scope of the Study

This project work cover’s one private sector bank HDFC (Housing Development Finance
Corporation). It focuses on the Screening & Checking Eligibility of Customer who wants to
get credit cards .

This study is done with the help of a questionnaire , which contains questions, which probe into the
details to find the reason of their choice. The study will help to know the Factors Influence for
getting Credit Card.

The study helps to know about the Documents Required for getting Credit card The study also
helps to find the best possible checking Worthiness of Credit . The study will also helps in
choosing a best credit card . All these results will help to know the Factors , functions and
operations required for getting credit Cards

Limitions of Study
 Limited time for acquisition of primary data Limited primary data
 Co-operation of the personnel in the bank was limited
 The sample size is small due to the specified reasons
 Findings are based on survey through Online Survey questionnaire.
21
 LITERATURE REVIEW

Rameshgaava (2012) in his study on Topic ‘Indian Banking Sector’ finds that-

The sector of commercial banks consist of 33 foreign banks, 40 private sector banks, and 27 public
sector banks where majority ownership is included by the government. During the reform period, the
financial system permitted the banks to select their lending rates and deposits, and also authorizes
higher disclosure to make sure of large transparency in the balance sheets. As a result of reforms in the
banking sector the share of entire assets of public sector banks was decreased to 75 percent from 90
percent. In the private sector, the new banks entry diminished the concentration of assets which further
might have made the competition stronger which leads to more profitability, productivity, and
enhancing efficiency.

Swarnalatha (2002), in her Ph. D. thesis analyses and the results of the credit cards services. The
study based on the perception of selected credit cardholders of various issuing banks in Chennai city.
This research finding and conclusion based on the hypothesis that single cardholders are less satisfied
than multiple cardholders. Further the results also stated that there are cardholders holding cards both
in Indian and foreign banks are more aware of the services and experienced their greater satisfaction.

Dagobert L. Brito and Peter R. (1995)34, observe that borrowing on credit cards at high interest rates
might appear irrational. However, even low transaction costs can make credit cards attractive to bank
loans. Credit card also provides liquidity services by allowing consumers to avoid some of the
opportunity costs of holding. essential both for economists studying the determinants of growth and for
the creators and producers of such technologies. Moreover, this paper contributes to the empirical
literature on diffusion of financial innovations, particularly Internet banking, in a developing country,
i.e.India.

Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding e-banking
services. A survey of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab.
The respondents were equally divided among three bank groups namely, public sector, private sector
and foreign banks. The present study investigates the perceptions of the bank customers regarding
necessity of e-banking services, quality of e-banking services, bank frauds, future of e-banking,
preference of bank customers regarding banks, comparative study of banking services in various bank
groups, preferences regarding use of e-channels and problems faced by e-bank customers. The major
finding of this study is that customers of all bank groups are interested in e-banking services, but at the
same time are facing problems like, inadequate knowledge, poor network, lack of infrastructure,
22
unsuitable location, misuse of ATM cards and difficulty to open an account. Keeping in mind these
problems faced by bank customers, this paper frames some strategies like customer education,
seminars/meetings, proper network and infrastructure facilities, online shopping facilities, proper
working and installation of ATM machines, etc., to enhance e-banking services. Majority of
professionals and business class customers as well as highly educated and less educated customers also
feel that e-banking has
improved the quality of customer services in banks.

Azouzi, D. (2009) this paper aims to check if the current and prompt technological revolution altering
the whole world has crucial impacts on the Tunisian banking sector. Particularly, this study seeks some
clues on which we can rely in order to understand the customers' behavior regarding the adoption of
electronic banking. To achieve this purpose, an empirical research is carried out in Tunisia and it
reveals that panoply of factors is affecting the Customer’s attitude toward e-banking. For instance; age,
gender and educational qualifications seem to be important and they split up the group into electronic
banking adopters and traditional banking defenders and so, they have significant influence on the
customers' adoption of e-banking. Furthermore, this study shows that despite the presidential
incentives and in spite of being fully aware of the e-banking's benefits, numerous respondents are still
using the conventional banking. It is worthy to
mention that the fear of loss because of transactions errors or hackers plays a Significant role in
alienating Tunisian customers from online banking.

23
 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys and other
research techniques.

Research Design
A research design serves as a bridge between what has been established (the research objectives) and
how to accomplish these objectives. In fact, the research design is the conceptual structure within
which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of
data. More explicitly, the design decisions happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly on the
research purpose.

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose
of descriptive research is description of the state of affairs as it exists at present. The main
characteristic of this method is that the researcher has no control over the variables.

Sampling Design:

24
For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are selected because of
their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Lucknow city.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the answers to

which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer ask questions in
a face to face contact to the other person.

SECONDARY DATA is the data which are available in the form of fact and figures. The sources of
secondary data are:

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

25
 DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

3% 2%

15% Savings Account

Current Account
80% Salary Account
Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving account, 15%
have current account, 3% have salary account and 2% respondents have other account which include
NRI and fixed deposit account in the bank. It means that the bank has a very good amount of saving
account customers as compare to the other account.

26
Q2. Since how long you are having account in HDFC Bank?

15% 0-1 Year

33%
27% 1-2 Years

25% 2-3 Years

3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and more.

Q3. According to you what is more convenient way for banking?

10%

Branch Banking
Digital Banking
90%

Interpretation:

When the customers are asked about their preference between branch banking and digital banking 90%
customers preferred digital banking and 10% customers preferred branch banking as a mode of their
banking transaction. Above graph reveals their preferences for the both.

Q4. Do you use Digital Banking Services of HDFC Bank?

27
 0%

Yes
No
100%

Interpretation:

Out of the 100 respondents all the 100% of them use digital banking services of HDFC bank.

Q5. What are your reasons for choosing our Digital banking services?

100%
90%
80%
70%
60%
50% 60 80 68
40%
30%
20%
10%
0% 0

Interpretation:

Out of the 100 respondents 60% use digital banking services for convenience, 80% use to save time
and 68% use due to 24 hour access.

Q6. Which Digital banking services do you use at HDFC Bank?

28
 100%
80%
60% 75 60 24 4 100
40%
20%
0%

Interpretation:

Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile banking,
24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and all the 100% of
respondents use ATM service.
Q7. For what purpose you use Digital banking services at HDFC Bank?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use to pay bill,
78% use to get balance details, 36% use for recharge.

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

45%
Yes
55% No

Interpretation:

29
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank Go digital
initiative while 55% of them are not aware.

Q9. Which Digital Initiative of HDFC you know about?

100%

80%

60%
88.88 78.33 28.88 44.44
40%

20%

0%
PayZaap Chillr Digital Watch
Wallet Banking

Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers do not know
about Go digital initiative because they are not much aware about this facility. 45% of them are aware
about some initiative and out of those 45% customers 88.88% know about PayZaap, 78.33% know
about Chillr, 28.88% know about Digital wallet, and 44.44% know about Watch banking.

Q10. Do you use HDFC Bank Go Digital banking services?

40%
Yes
60%
No

Interpretation:
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and 60% do not use
it.

30
Q11. Do you think HDFC Bank banking services has improved through Digitalization?

2%

Yes
No
98%

Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of HDFC bank
and 2% of the respondents do not think that digitalization has improved the banking services.

Q12. Please rate that how much Digitalization has improved the Banking Services?

0%
0%
5 Stars
18% 14%
4 StARS
3 Stars
68%
2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the banking services,
68% rate it 4 stars, and 18% rate 3 stars.

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

31
 0%
2%

33% Fully Satisfied

Satisfied
65% Somewhat satisfied
Not satisfied

Interpretation:
Satisfaction level is very important for the direct banking channel of bank. In above graph we can see
that 65% Customers are satisfied with HDFC bank digital services, 33% customers are fully satisfied
and only 2% are somewhat satisfied. It indicates that HDFC bank customers have high satisfaction
level from the services they get.

FINDINGS

In our study we find that 100% respondents are aware with the ATM facility use this facility and
around 75% of them use internet banking, 60% use mobile banking, 24% use phone banking. But the
awareness of Insta query is only 4%.

Most of customers believe that Digital banking is more convenient way for banking and most of them
use digital banking in order to save time and also as it has 24 hour access.

32
Customers use digital banking services at HDFC bank mostly for money transfer, to pay bill, for
recharge, online shopping. HDFC bank provides very quick services to its customers.

Most of respondents who are not using the Go Digital initiatives of the bank, it is because they are not
much aware about the initiatives of the bank.

The customer are using the digital banking services for few purpose it means the use of the digital
banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the service of the bank
for the particular digital banking service.

The response of the respondents indicates that digitalization has a good and positive impact on the
banking services.

According to the response of the respondents it shows that digitalization improved the banking services
very much for the customers.

CONCLUSION

33
 SUGGESTION

 Though the Digital Banking is an effective tool but many of the customers are not using it due to
the awareness of the particular digital banking services. Now the responsibility lies with the bank
to make them aware about various Digital banking channels through publicity and advertisement

 Bank should educate the customer about the usage of digital banking services and also about their
advantages. This would prompt the customers to shift from traditional brick and mortar channel.

 It has been observed that even the customers who know about digital banking services are not
using this facility due to misconception and lack of information. These customers should be
targeted by the bank and must be convinced to use the same.

 The result of the study show that customers are using only few services of various digital banking
services - for example ATM for view balance and cash withdrawal etc. Though digital banking
provides a full gamut of various services. Customer should be made aware of these services and
must be encouraged to use the same.

 The bank may improve existing facilities in rural areas through advertising, spread awareness about
computer and internet banking.

34
 The best way to motivate the customer to use digital banking is more efficient customer care
service.

LIMITATIONS

There are certain limitations of this project report which are listed below.

 This study is limited only to the customers of the HDFC bank, Lucknow.
 The responses of the customers may be biased.
 Sample size is limited to 100.

BIBLOGRAPHY
35
 APPENDIX

Questionnaire

NAME……………………………………

GENDER………………………………..

36
AGE……………………………………

OCCUPATION……………………......

EMAIL ID………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

37
 ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

Yes No

Q9. Which Digital Initiative of HDFC you know about?

Pay Zapp Chillr

Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

Yes No

Q11. Do you think HDFC Bank banking services has improved through Digitalization?

Yes No

Q12. Please rate that how much Digitalization has improved the Banking Services?

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

38
Q13. What is your level of satisfaction with HDFC Bank Digital Services?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

Q14. Any suggestions or recommendation to HDFC Bank?

39