ISBE-A

“CUSTOMERS PERCEPTION AND COMPARATIVE ANALYSIS OF HDFC BANK PRODUCTS & SERVICES”

SUBMITTED BYSUBMITTED BY

MAYANK TYAGIMAYANK TYAGIBatch & Session : FE-2 & 2010-12Batch & Session : FE-2 & 2010-12

Student ID: D1012FWISBE-A10269-(NOI-4-2102)Student ID: D1012FWISBE-A10269-(NOI-4-2102)

Duration: June 16th to August 16th , 2011

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Certificate

This is to certify that Mayank Tyagi , Student Id D1012FWISBE-A10269-(NOI-4-2102)D1012FWISBE-A10269-(NOI-4-2102)

a student of IIPM has worked on Project titled “Customer Perception & Comparative

Analysis of HDFC Bank Products & Services” in partial fulfillment of the requirement for

the programme. This is his original work to the best of my knowledge.

Date: Signature

Seal: (Faculty Guide)

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ACKNOWLEDGEMENT

Successful completion of any endeavor requires the help and creative energy of many people

and this project is certainly not an exception. I am indebted to Mr. D.Gopalakrishnan

(Manager) for being my being my Industry Guide and rendering his cooperation & support,

sharing his knowledge and providing guidance through out the project.

I take this opportunity to thank my faculty guide Ms. Deepti Sharma who has given me

opportunity to work under her guidance and has being the source of inspiration to me.

Date:

Place: Mayank Tyagi

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EXECUTIVE SUMMARY

The bases of the project was to understand the customers perception about the various schemes like Personal loans, Home loans, Car loans under asset products and saving bank account, Current account and Salary account, Demat account, Insurance and mutual funds under liability products for retail banking. This study also reveals the market potential of HDFC Bank in Delhi. The project also encompasses, identifies the scope and various parameters, a customer would look into while transacting with bank for certain scheme.

Overall analysis has been done, keeping in mind the various customer segments like businessmen, salaried people, and others, consideration while opting for any deposits or borrowings through questionnaire as a tool of research via various descriptive statistics and parametric and non-parametric tests. The SWOT analysis shows the pitfalls and identifies the opportunities available for HDFC Bank and competitor analysis has been done by considering four other close competing commercial banks like ICICI, SBI, UTI, IDBI banks at Delhi, analysis has been done by taking the profitability and performance indicator, it says there are several potentials available for HDFC bank to be the market favorite. After the analysis it is found that the major part of the deposits from HDFC Bank, Delhi is formed by businessmen followed by salaried people and professionals and its nearest competitors are ICICI Bank & SBI.

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CONTENTS

SI.NO DESCRIPTION PAGE NO

1 Introduction to HDFC Bank 1.1 History of the Company 1.2 Insight into the Company1.3 Awards and Achievements1.4 Credit Ratings1.5

2 HDFC Products & Services2.1 Personal Banking2.2 Private Banking2.3 Wholesale Banking2.4 Services

3 Literature Review 4 Market Research 4.1 Problem Definition & Objective 4.2 Research Methodology 4.3 Sampling Design 4.4 Data Analysis 4.5 A comparative study among the emerging commercial banks 4.6 SWOT Analysis

5 Recommendations & Limitations

6 Conclusions

7 References & Bibliography

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1.1 History of the company

The Bank was Incorporated on 30th August 1994. A new private sector Bank

promoted by housing Development Corporation Ltd. (HDFC), a premier housing finance

company. The bank is the first of its kind to receive an in-principle approval from the RBI for

establishment of a bank in the private sector. Certificate of Commencement of Business was

received on 10th October 1994 from RBI.

The Bank transacts both traditional commercial banking as well as investment banking.

HDFC, the promoter of the bank has entered into an agreement with National Westminister

Bank Pc. and its subsidiaries (Natwest Group) for subscribing 20% of the banks issued

capital and providing technical assistance in relation to the banks proposed banking business.

70 No. of equity shares issued to subscribers to the Memorandum & Articles of

Association on 30th August 1994. On the same date 500,00,000 equity shares were allotted to

HDFC promoters. 509,20,000 shares were allotted to HDFC Employees Welfare Trust and

HDFC Bank Employees

HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain

management and business-to-consumer (B2C) e-commerce services to corporates.

Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking

services in the city.

HDFC Bank Ltd has appointed Mr. Pandit Palande as an additional Director of the

Bank at the Board Meeting held today i.e. on 24th April 2007. HDFC Bank Ltd has informed

that the Board of Directors of the Bank at its meeting held on October 12, 2007, has been

appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as Executive Directors on the

Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have been senior employees

of the Bank since 1994 and have held various positions of responsibility

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1.Introduction to HDFC Bank…..

1.2 Insight into the Company

HDFC Bank 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 from Housing

Development Finance Corporation Limited (HDFC), in 1994 during the period of

liberalization of the banking sector in India. HDFC India was incorporated in August 1994 in

the name of 'HDFC Bank Limited'. HDFC Bank , one amongst the firsts of the new

generation, tech-savvy commercial banks of India, was set up in august 1994 after the

Reserve Bank of India allowed setting up of Banks in the private sector

The Bank was promoted by the Housing Development Finance Corporation Limited, a

premier housing finance company (set up in 1977) of India. Net Profit for the year ended

May 1, 2007 was upto $400 million up 39%. Headquartered in Mumbai.

HDFC Bank, has a network of over 684 branches spread over 316 cities across India. All

branches are linked on an online real-time basis. Customers in over 120 locations are serviced

through Telephone Banking. The Bank also has a network of about over 1605 networked

ATMs across these cities.

1.2.1 Organizational Structure

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Chairperson

Director Director Director Director DirectorDirector

Managing Director

Executive directorExecutive director

1.2.2 PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track

record in India as well as in international markets. Since its inception in 1977, the

Corporation has maintained a consistent and healthy growth in its operations to remain the

market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling

units. HDFC has developed significant expertise in retail mortgage loans to different market

segments and also has a large corporate client base for its housing related credit facilities.

With its experience in the financial markets, a strong market reputation, large shareholder

base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the

Indian environment.

1.2.3BUSINESS 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.

1.2.4 TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited

(another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was

merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of India,

shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times

Bank. The acquisition added significant value to HDFC Bank in terms of increased branch

network, expanded geographic reach, enhanced customer base, skilled manpower and the

opportunity to cross-sell and leverage alternative delivery channels.

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1.2.5 TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online connectivity,

which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch

access is also provided to retail customers through the branch network and Automated Teller

Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best

technology available internationally, to build the infrastructure for a world class bank. In

terms of software, the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by

Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-

enabled.The Bank has prioritised its engagement in technology and the internet as one of its

key goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise and

technology to create a competitive advantage and build market share.

1.2.6 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over 593 branches spread over 263 cities across India. All branches are linked on

an online real-time basis. Customers in over 120 locations are also serviced through

Telephone Banking. The Bank's expansion plans take into account the need to have a

presence in all major industrial and commercial centres where its corporate customers are

located as well as the need to build a strong retail customer base for both deposits and loan

products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has

branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1131 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and international

Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge

cardholders.

1.2.7 BUSINESSES

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HDFC Bank offers a wide range of commercial and transactional banking services

and treasury products to wholesale and retail customers. The bank has three key business

segments:

1.2.7.1 Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing

companies in the Indian corporate to small & mid-sized corporates and agri-based

businesses. For these customers, the Bank provides a wide range of commercial and

transactional banking services, including working capital finance, trade services,

transactional services, cash management, etc. The bank is also a leading provider of

structured solutions, which combine cash management services with vendor and

distributor finance for facilitating superior supply chain management for its corporate

customers. Based on its superior product delivery / service levels and strong customer

orientation, the Bank has made significant inroads into the banking consortia of a

number of leading Indian corporates including multinationals, companies from the

domestic business houses and prime public sector companies. It is recognised as a

leading provider of cash management and transactional banking solutions to corporate

customers, mutual funds, stock exchange members and banks.

1.2.7.2 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 the customers through the growing branch network, as well as

through alternative delivery channels like ATMs, Phone Banking, NetBanking and

Mobile Banking.The HDFC Bank Preferred program for high net worth individuals,

the HDFC Bank Plus and the Investment Advisory Services programs have been

designed keeping in mind needs of customers who seek distinct financial solutions,

information and advice on various investment avenues. The Bank also has a wide

array of retail loan products including Auto Loans, Loans against marketable

securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider

of Depository Participant (DP) services for retail customers, providing customers the

facility to hold their investments in electronic form. HDFC Bank was the first bank in

India to launch an International Debit Card in association with VISA (VISA Electron)

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and issues the Mastercard Maestro debit card as well. The Bank launched its credit

card business in late 2001. By September 30, 2005, the bank had a total card base

(debit and credit cards) of 5.2 million cards. The Bank is also one of the leading

players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS)

terminals for debit / credit cards acceptance at merchant establish.

1.2.8 Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalization of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on various

treasury products are provided through the bank's Treasury team. To comply with statutory

reserve requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and market risk on

this investment portfolio.

1.3 AWARDS and ACHIEVEMENTS- BANKING SERVICES

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank". We realized that only a single-minded focus on product quality and service

excellence would help us get there. Today, we are proud to say that we are well on our way

towards that goal. The Asset magazine named HDFC Bank "Best Cash Management Bank"

and "Best Trade Finance Bank" in India, in 2006.HDFC Bank named the "Most

Customer Responsive Company - Banking and Financial Services in The Economic

Times - Avaya Global Connect Customer Responsiveness Awards 2005". HDFC Bank has

been named Best Domestic Bank in India in The Asset Triple A Country Awards 2005. In

2004, HDFC Bank was selected by BusinessWorld as "One of India's Most Respected

Companies" as part of The Business World Most Respected Company Awards 2004. In

2004, HDFC Bank won the award for "Operational Excellence in Retail Financial

Services" - India as part of the Asian Banker Awards 2003.

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1.3.1 Asiamoney AWARDS

2006

Business Today Best Bank in India.

Forbes Magazine One of Asia Pacific's Best 50 companies.

Businessworld Best listed Bank of India.

The Asset

Magazine's Triple A

Country Awards

Best Domestic Bank.

Asiamoney Awards Best Local Cash Management Bank in Large and Medium

segments.

Euromoney Awards "Best Bank" in India.

1.4 CREDIT RATING

HDFC Bank has its deposit programmes rated by two rating agencies - Credit

Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The

bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by

CARE, which represents instruments considered to be "of the best quality, carrying

negligible Investmentrisk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR 1+"

which represents "superior capacity for repayment of short term promissory

obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has

assigned the "tAAA ( ind )" rating to the bank's deposit programme, with the outlook

on the rating as "stable". This rating indicates "highest credit quality" where

"protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds of Rs.4 billion

rated by CARE and Fitch Ratings India Private Limited. CARE has assigned the rating of

"CARE AAA" for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the

rating

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with the outlook on the rating as "stable". In each of the cases referred to above, the ratings

awarded were the highest assigned by the rating agency for those instruments.

1.4.1 CORPORATE GOVERNANCE RATING

The bank was among the first four companies, which subjected itself to a Corporate

Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating

Information Services of India Limited (CRISIL). The rating provides an independent

assessment of an entity's current performance and an expectation on its "balanced value

creation and corporate governance practices" in future. The bank has been assigned a

'CRISIL GVC Level 1' rating, which indicates that the bank's capability with respect to

wealth creation for all its stakeholders while adopting sound corporate governance practices

is the highest.We are aware that all these awards are mere milestones in the continuing,

never-ending journey of providing excellent service to our customers. We are confident,

however, that with your feedback and support, we will be able to maintain and improve our

services.

1.5 Financial Statements

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2007Annual Balance Sheet

Fiscal Year End for HDFC BANK LTD falls in the month of March.All items in Millions except Per Share data.

  03/31/08 03/31/07 03/31/06 03/31/05 03/31/04

Assets

Cash & Equivalents -96,304.42 1,968.20 1,536.40 1,090.20 1,220.30

Receivables 0 12,818.50 9,081.30 5,992.60 4,190.30

Notes Receivable 0 0 0 0 0

Inventories 0 0 0 0 0

Other Current Assets 0 297.40 0 0 82.10

Total Current Assets 3,694.58 15,084.10 10,617.70 7,082.80 5,492.70

Net Property & Equipment 293.78 241.20 195.90 162.40 142.10

Investments & Advances 28,205.11 7,059 6,147.90 4,683.50 4,052.40

Other Non-Current Assets 0 0 0 0 0

Deferred Charges 0 0 0 0 0

Intangibles 0 0 0 0 0

Deposits & Other Assets 1,100.60 1,123.40 821.10 209.20 147.70

Total Assets 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90

 

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Liabilities & Shareholder's Equity

Notes Payable 0 2,458.70 1,701.40 1,423.20 554.50

Accounts Payable 25,192.15 15,831.70 12,529.30 8,334.30 7,006

Current Portion Long-Term Debt 0 0 0 0 0

Current Portion Capital Leases 0 0 0 0 0

Accrued Expenses 0 2,910.30 1,921.50 1,134 1,414.90

Income Taxes Payable 0 0 0 0 0

Other Current Liabilities 0 0 0 0 0

Total Current Liabilities 25,192.15 21,200.70 16,152.20 10,891.50 8,975.40

Mortgages 0 0 0 0 0

Deferred Taxes/Income 0 0 0 0 0

Convertible Debt 0 0 0 0 0

Long-Term Debt 1,119.71 779.60 382.80 115.30 140.20

Non-Current Capital Leases 0 0 0 0 0

Other Non-Current Liabilities 4,107.97 0 0 0 0

Minority Interest (Liabilities) 0 7.50 5 0 0

Total Liabilities 30,419.84 21,987.80 16,540 11,006.80 9,115.60

 

Shareholder's Equity

Preferred Stock 0 0 0 0 0

Common Stock (Par) 0 74.10 70.40 71 65.20

Capital Surplus 88.60 701.30 602.60 591.20 288.60

Retained Earnings 2,785.70 568.50 411.10 295.10 208.70

Other Equity 0 176 158.50 173.80 156.80

Treasury Stock 0 0 0 0 0

Total Shareholder's Equity 2,874.30 1,519.90 1,242.60 1,131.10 719.30

Total Liabilities & Shareholder's Equity 33,294.15 23,507.70 17,782.60 12,137.90 9,834.90

Total Common Equity 102,873.30 1,519.90 1,242.60 1,131.10 719.30

Shares Outstanding 117.80 106.40 103.20 103.20 94.20

Book Value Per Share 873.29 14.28 12.04 10.96 7.64

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Profit and loss Account

The reportable primary segments have been identified in accordance with the Accounting Standard on Segment. Reporting (AS-17) issued by the Institute of Chartered Accountants of India (ICAI).

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Mar ' 08 Mar ' 07 

Mar ' 06 Mar ' 05 

Mar ' 04 

Income :           Operating Income 

 12,354.41  8,303.34  5,567.67  3,723.86 2,970.15

Expenses           Financial Expenses 

 4,887.12  3,179.45  1,929.50  1,315.56 1,211.05

Personnel Expenses 

 1,301.35  776.86  486.82  276.67  204.09

Selling Expenses 

 114.73  74.88  80.85  54.95  37.06

Adminstrative Expenses 

 2,247.48  1,519.32  1,424.59  785.93  621.41

Expenses Capitalised 

 0.00  0.00  0.00  0.00  0.00

Operating Expenditure 

 8,550.68  5,550.51  3,921.76  2,433.11 2,073.61

Operating Profit 

 3,803.73  2,752.83  1,645.91  1,290.75  896.54

Other Recurring Income 

 43.04  102.96  31.38  20.76  59.26

Adjusted PBDIT 

 3,846.77  2,855.79  1,677.29  1,311.51  955.80

Provisions Made 

 1,294.67  754.90  0.00  0.00  16.70

Depreciation   271.72  219.60  178.59  144.07  125.72Other Write offs 

 0.00  241.09  245.16  188.06  93.22

Earnigs Before Appropriation 

 3,522.15  2,596.12  1,473.12  1,070.62  865.63

           Equity Dividend 

 301.27  223.57  172.23  140.07  100.05

Preference Dividend 

 0.00  0.00  0.00  0.00  0.00

Dividend Tax   51.20  38.00  24.16  19.64  12.82Retained Earnings 

 3,169.68  2,334.55  1,276.73  910.91  752.76

The Bank operates in three segments: retail banking, wholesale banking and treasury

services. Segments have been identified and reported taking into account, the target customer

profile, the nature of products and services, the differing risks and returns, the organization

structure and the internal business reporting systems.

NOTES:

1. The above results have been approved by the Board at its meeting held on January 11,

2008

2. During the quarter and the nine months ended December 31, 2007, the Bank allotted

774,600 shares and 2,007,000 shares respectively pursuant to the exercise of stock options by

certain employees.

3. During the quarter ended December 31, 2007, the bank granted 3586500 stock options

under its scheme titled “ESOS VIII” and 3046800 stock options under its scheme titled

“ESOS IX” to

its employees. The grant price of these options is Rs. 994.85, being the closing market price

as on the working day immediately preceding the date of grant of options.

4. Other income relates to income from non-fund based banking activities including

commission, fees, foreign exchange earnings, earnings from derivative transactions and profit

and loss (including revaluation) from investments.

5. Provision for Taxes includes Rs. 375 lacs and Rs. 1200 lacs towards provision for fringe

benefit tax (FBT) for the quarter and the nine months ended December 31, 2007,

respectively.

6. During the quarter ended December 31, 2006, the Bank raised Rs. 47850 lacs as Upper

Tier II capital in the form of subordinated bonds.

7. As on December 31, 2007, the total number of branches (including extension counters) and

the ATM network stood at 583 branches and 1471 ATMs respectively.

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8. Previous period figures have been regrouped/reclassified wherever necessary to conform to

current period's classification.

9. The above results for the quarter and the nine months ended December 31, 2007, have

been subjected to a “Limited Review” by the auditors of the Bank, as per the listing

agreements with Bombay Stock Exchange Limited and The National Stock Exchange of

India Limited.

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2.1 PERSONAL BANKING 2.1.1 SAVINGS ACCOUNT 2.1.1.1Regular Savings a/c:

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through NetBanking, PhoneBanking and MobileBanking.

Features & benefits 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, through SMS.

Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.

2.1.1.2 NO FRILLS Savings a/c:In an effort to make banking simpler and more accessible for our customers, we have

introduced the 'No Frills' Savings Account, which offers you all the basic banking facilities. You can even avail of services like NetBanking, Mobilebanking free of cost.

Features & benefits

Access a wide network of branches and over a thousand ATMs across the country to meet all your banking needs.

Use the Free Electronic Funds Transfer (EFT) facility to transfer funds from your HDFC Bank account to an account in another Bank at the locations as specified by RBItry to meet all your banking needs.

Bank conveniently with facilities like Free NetBanking and MobileBanking.

Enjoy Free IVR based PhoneBanking. (Agent assisted calls will be charged*)

Get Free Quarterly Account Statements.

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2. Products and Services….

Access your account through a Free ATM Card.

9 Free Cash withdrawals per Quarter at Branch and HDFC Bank ATMs.

2.1.1.3 Retail Trust a/cThe Retail Trust Account is beneficial for Trusts and Societies as it earns them a

higher interest as compared to a conventional Current Account that offers no interest.

Features & benefits

Avail of Free Outstation Cheque Collection at HDFC Bank locations across the country.

Enjoy free DD's payable on HDFC bank locations up to a limit of Rs. 50,000/- per DD, per day.

Payable at Par Cheque facility: At a nominal cost, you can avail a PAP cheque book of 25 leaves (Regular non-PAP cheque book come free of cost).

Avail of Special discounts on Foreign exchange transactions and Forex rates at most branches across the country.

Structured Investment Program: Avail of the facility for investing surplus funds lying in your account into Mutual Funds, RBI Bonds and other financial instruments through any of our branches across the country.

2.1.1.4 SALARY ACCOUNT a) Payroll salary a/c:

Features & benefits Nil Interest payout on account balance

Free Payroll Debit Card - (max cash withdrawal at ATMs- Rs 15,000/- and Rs 25,000 at shopping avenues)

BillPay facility at Rs 25/- (plus taxes) per qtr. per Customer ID.

Up to 6 free ATM cash withdrawal transactions; thereafter Rs. 30/- per transaction.

Cheque book issuance @ charge of Rs.5 per leaf (only on request and this is not a standard offering )

b) Classic salary a/c:

Features & benefits Zero Balance Account Free personalised cheque books. Free ATM Card with a withdrawal limit of up to Rs. 10,000/- per day. Free facilities like Net Banking, Phone Banking and Mobile Banking.

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c) Regular salary a/c:

Features & benefits

No minimum balance required.

Free International Debit card with ATM cash withdrawal limit of up to Rs. 15,000 and Rs. 25,000 (non-cash) at shopping avenues.

Free issuance of Demand Drafts up to Rs. 25,000 per instrument, payable at branches within the HDFC Banking network.

Preferential rates on loan products offered by the bank.

Preferential rates on forex transactions.

d) Premium salary a/c:

Features & benefits Free International Debit Card and Add-on Debit card for life.

Free Personal Insurance Accident cover up to Rs. 2,00,000/- on the Debit card.

Free Debit card withdrawals - max cash withdrawal at ATMs- Rs 25,000/- and Rs 50,000 (non-cash) at shopping avenues.

Preferential rates for Gold and Silver credit cards.

Free Demand Drafts up to Rs. 25,000 per instrument, per instrument payable at branches within the HDFC Banking network.

Free BillPay and Insta Alert facility.

e) Defence salary a/c:

Features & benefits The Defence Salary Account is a Zero Balance account.

Enjoy facilities like NetBanking, PhoneBanking, MobileBanking, BillPay, ATM facility, and inter-branch banking.

Enjoy preferential rates on Loans Against Shares, New Car Loans and Used Car Loans, Consumer Loans and Personal Loans.

F)No Frills salary a/c:

Features & benefits Bank conveniently with facilities like Free NetBanking and MobileBanking.

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Use the Free Electronic Funds Transfer (EFT) 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 Deposits at Branch/ATM. Free Cash withdrawals per Month at Branch and HDFC Bank ATMs

2.1.1.5 Kid’s Advantage Account:Features & benefits Automatically increases the balance in your Kids Advantage Account by transferring

a fixed sum from your Savings Account every month. Amounts in excess of Rs. 5,000/- over and above a balance of Rs. 10,000/- gets

converted into Fixed Deposits for a specified period in your child's name. Free International Debit Card for your child (above 7 years of age) with a maximum

drawing capability of Rs. 2,500/- per day. Free Education Insurance cover of up to Rs. 1,00,000/- for your child with every Kids

Advantage Account

2.1.1.6 PENSION SAVING ACCOUNT: Features & benefits

The Pension Saving account is a Zero Balance Account. Timely credit of receivables Free International Debit Card. Enjoy facilities such as NetBanking, PhoneBanking, BillPay, ATM facility, inter-city

and inter-branch banking. Pension Accounts are transferable from one branch/bank to another.

2.1.1.7 FAMILY SAVINGS ACCOUNT

Features & benefits All account holders can operate their account freely without worrying about their

minimum balance. Family members with NRI status can also be part of the group. Get 5 Free Cash withdrawal transactions on SBI ATMs per group per month. Upto 2 free DD's/ MC's on HDFC Bank locations per account per month (max. up to

Rs. 25,000/- per instrument per day). Free International Debit Card for all account holders till the account is part of the

Family group. (NRO Accounts will be issued only ATM cards) Free BillPay & InstaAlerts facility for all account holders till the account is part of the

Family Group. Free Standing Instructions for investment into Mutual Funds Free OneView to access all your accounts. Free MobileBanking, NetBanking & PhoneBanking. Enjoy a Savings account to Savings acount sweep-in to a nominated account (sweep-

in to NRE accounts not permitted from resident / NRO accounts).

2.1.2 CURRENT ACCOUNT:

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2.1.2.1 Plus Current a/c In today's fast-paced world, your business regularly requires you to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives you the power of inter-city banking with a single account and access to more than 220 cities. Features & benefits

Free outstation cheque collection (non HDFC Bank location cheques will incur a nominal charge).

Free limited NetBanking for checking balances in accounts.Full fledged Net Banking can be availed of after completion of certain formalities.

FREE Demand Drafts (without any limit) payable at Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bangalore, Hyderabad, Trivandrum, Chandigarh, Bhopal, Nagpur, Jaipur, Bhubaneshwar, Kanpur, Patna & Guwahati. At all other HDFC Bank Branch locations, Demand Drafts will be issued Free up to a total of Rs.50 lacs per month, incremental to be charged @ Rs.0.25 per Rs.1,000, minimum Rs.25/-, maximum Rs.5,000.These drafts are available free only from the Home Branch

Free Funds Transfer- Huge savings: You can transfer funds absolutely FREE across all locations, except Dahej, in the HDFC Bank network upto a total value of Rs.100 lakhs per month any incremental amount above Rs.100 lakhs will be charged @ Rs. 0.50 /Rs.1000.

Easy cash deposit and withdrawal. You can avail of the service FREE, at home branch, as per the branch's discretion. At non-home branches within the same city, you can withdraw cash up to Rs.50,000/-, but cash deposits are allowed to account-holder (self) only, upto Rs.100,000/- per day at a charge of Rs.2/- per Rs.1,000/-.

Free Cheque book with "At Par" cheque leaves.

2.1.2.2 Trade Current a/c:In today's changing busines requirements, you need to transfer funds across cities, and

time is of the essence. HDFC Bank Trade Current Account gives you the power of inter-city banking with a single account.From special cheques that get treated at par with local ones in any city where we have a branch, to free collection of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 25 lakhs, our priority services have become the benchmark for banking efficiency. Features & benefits

Convenient Inter-city banking across more than 185 cities Safe & convenient Intra-city banking FREE Funds Transfer. Huge Savings.

2.1.2.3 Premium Current a/c: A Current Account with the benefits of accessing your account from a large

network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM.

Features & benefitsConvenient Inter-city banking across more than 185 cities.

Free ATM Card to access your account from the wide network of HDFC Bank ATMs, across the country.

Enjoy facilities like 24-hour PhoneBanking, NetBanking and MobileBanking.

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Automatically transfer funds from your Fixed Deposit to your Current Account in times of need

FREE Funds Transfer* across all locations in the HDFC Bank network up to a total value of Rs. 10 lacs per month, (except Dahej), any incremental amount above Rs.10 Lacs will be charged @ Rs.1.50 per Rs.1000/-

2.1.2.4 Regular Current a/c:A Current account is ideal for carrying out day-to-day business transactions.

With the HDFC Bank Regular Current Account, you can access your account anytime, anywhere. Withdraw and deposit cash, issue and encash cheques, make balance-inquiries or ask for mini statements, and even request for cheque books any time, anywhere.

Features & benefits Enjoy FREE 24-hour PhoneBanking, NetBanking and MobileBanking that helps you

check your balance, find out the status of your cheque or stop cheque payment. Sweep-In Account With the Sweep-In Facility you can automatically transfer funds

from your Fixed Deposit to your Current Account in times of need. Attractive rates for inter-city/inter-branch transactions Your funds will be

transferred at Rs.1.50/- per Rs.1000/-. The minimum charge is Rs. 50/-. You can also deposit or withdraw cash for an additional charge of Rs. 2 per Rs. 1000/- (on full amount, if amount is more than Rs. 50,000) at branches other than the branch where you have opened your account

2.1.2.5 Reimbursement Current a/c: No more paperwork, no more receipts to keep track of - a hassle-free account that allows you to deposit the reimbursements you receive from your company on a monthly basis.How to Open a Reimbursement Account

Procure an Account Opening Document (AOD) from HDFC Bank. (If you have just joined, first request your company to open up a Salary Account for you).

Mention your Salary Account number and your Debit Card number on the AOD so that your Debit card can be linked to both, your Salary Account as well as your new Reimbursement Account.

.Features & benefits Easily distinguish between reimbursements and basic monthly salary. Choose from either your Salary Account or your Reimbursement Account when

withdrawing cash from HDFC Bank ATMs. Utilise Net Banking, Phone Banking and Mobile Banking facilities. Receive half-yearly statements of all your reimbursements, thus doing away with

filing individual receipts. No need to maintain a minimum balance (Zero Balance Account) Receive a separate cheque book (on request) for your Reimbursement Account

2.1.2.6 RFC-Domestic a/c:

How to Open a RFC Domestic Account Choose the currency in which you wish to operate. Open your account with an initial amount as per the following-US Dollar = 250 |

Great Britain Pound = 200 | Euro = 250 and maintain an Average Quarterly Balance of the same amount.

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2.1.3 FIXED ACCOUNT 2.1.3.1 Super saver a/c:

Features & benefitsIt's like two Accounts working in tandem to give you better returns.

Choose between a Savings Account or Current Account to link to your Fixed Deposit.

Avail an overdraft facility to supplement your household or business needs Pay back with interest only on the drawn amount, while the remaining Fixed

Deposit continues to earn you interest.Flexibility in altering period of deposit, maturity and payment instructions, principal amount and rollover mode.

2.1.3.2 Sweep in a/c: Features & benefits

Choose between a Savings Account or Current Account to link to your Fixed Deposit.

Earn higher interest on the money till it is swept-in, while the remaining Fixed Deposit continues to earn you interest.

Only an exact amount required to make up for the deficit in the Savings account is withdrawn from your Fixed Deposit (units of Re. 1/-) thereby minimising interest loss.

Multiple deposits can be linked to the Savings account. Flexibility in altering the period of deposit, maturity and payment instructions,

principal amount and rollover mode.

2.1.4 DEMAT ACCOUNT:HDFC BANK is one of the leading Depository Participant (DP) in the country with

over 8 Lac demat accounts.HDFC Bank Demat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. HDFC BANK is Depository participant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

2.1.5 LOANS 2.1.5.1 Personal Loans Features & benefits

Borrow up to Rs 10,00,000 for any purpose depending on your requirements. Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges

2.1.5.2 Home Loans Features & benefits

Home Loan - We offer home loans for individuals to purchase (fresh / resale) or construct houses. Home loans can be applied for individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges).

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Home Improvement Loan - HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminium windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers).

Home Extension Loan - HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan.

Land Purchase Loan - Be it land for a dream house, or just an investment for the future, HDFC Land Purchase Loan is a convenient loan facility to purchase land. HDFC finances up to 70% of the cost of the land (Conditions Apply). Repayment of the loan can be done over a maximum period of 10 years.

Choose from Fixed Rate or Floating Rate with options to structure your loan as Partly Fixed or Partly Floating.

Flexible repayment options to suit your individual needs. Loan cover Term Assurance Plan - HDFC Standard Life Insurance Company Ltd.

offers an insurance plan*, which is designed to ensure that life's uncertainties do not affect your family's interests and your precious home. LCTAP provides a lump-sum payment on the unfortunate demise of the life assured.

2.1.5.3 CAR LOAN Features & benefits

Covers the widest range of cars and multi-utility vehicles in India. Avail 100% finance on your favorite car

Flexible repayment options, ranging from 12 to 84 months. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times

your annual income (for self employed professionals). Speedy processing - within 48 hours Repay with easy EMIs. Attractive car loan plans - To Fastrack your loan, just choose the plan that is right

for you. Attractive Interest rates

2.1.5.3.1 USED CAR LOANS Features & benefits

Choose any car manufactured in India within a certain age. Borrow up to 80% of the value of the car Flexible repayment options, ranging from 12 to 60 months. Borrow up to 3 times your annual salary (for salaried professionals) and 6 times

your annual income (for self employed professionals). Available for almost all car models at attractive interest rates. Repay with easy EMIs. Attractive car loan plans - To Fastrack your loan, just choose the plan that is right

for you. Additional loan on existing loan - If you are a existing HDFC Bank Auto loan

customer with a clear track record of 12 months or more, then you can get an additional loan to the extent of your existing loan amount at attractive rate of interest.

2.1.5.4 TWO WHEELER LOAN100 CC?180 CC?Or maybe a 500 CC? Whichever the bike, our Two Wheeler loan

is the answer. With quick approvals, flexible payment options and easy repayment.

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Features & benefits Flexible repayment options, ranging from 12 to 48 months available even at the point

of purchase Repay through post-dated cheques with easy EMIs. Calculate your EMI Hassle free loans - No guarantor required. Speedy loan approval. Available for almost all models at attractive interest rates

OVERDRAFT AGAINST CARNeed extra cash? Want a lower rate of interest than a personal loan? Have a car to your name?With HDFC Bank's Overdraft Against Car, one can get an overdraft against car and utilise the money for personal or business needs.

Features & benefits Overdrafts available on cars hypothecated with the bank and up to 9 years old. Loans ranging from Rs. 50,000 to Rs. 7 lacs depending on your needs. Borrow up to 90% of the value of the car

2.1.5.5 EXPRESS LOANHouse repairs? School admission? Sister's wedding? HDFC Banks now offer

Express Loans to help fulfill all these needs. The procedure is simple, documentation is

minimal and approval is quick.

Features & benefits

Borrow from Rs. 10,000/- to 75,000/- for any purpose depending on your needs.

Flexible repayment options, ranging from 12 to 36 months.

Repay with easy EMIs.

One of the lowest interest rates in the market.

LOAN AGAINST SECURITIES

With HDFC Bank's Loan against Securities, one can get an overdraft against securities like Equity Shares, Mutual Fund Units, GOI Relief Bonds, LIC Policies, NSC, KVP, UTI Bonds (6.60% ARS & US64 Bonds) and Gold Deposit Certificates, while still retaining ownership. And the best part is that one can continue to enjoy all shareholder benefits such as rights, dividends and bonuses.Features & benefitsOverdraft facility can be availed against pledge of:

Equity Shares* - Demat Shares up to 50% of the value. Mutual Fund units* - Mutual Funds up to 50% of NAV (Net Asset Value). See

approved Mutual Fund Schemes. GOI Relief Bonds LIC Policies

LOAN AGAINST PROPERTY

HDFC Bank brings to you Loan Against Property (LAP). one can now take a loan against residential or commercial property, to expand his/her business, plan a dream wedding, fund

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child's education and much more. Loan to purchase Commercial Property (LCP) is a specially designed product to help you expand your business without reducing the capital from your business.

Features & benefits Loans from Rs. 2 Lacs onwards depending on your needs Borrow up to 60% of market value of the property Flexibility to choose between an EMI based loan or an Overdraft - We also offer to

you overdraft against your self-occupied residential or commercial property and you save money by paying interest only on the amount utilized.

High tenure loans for ease of repayment. Attractive interest rates.

2.1.6 COMMERCIAL FINANCE 2.1.6.1 Vehicle

Truck? Tempo? or a Tipper? If some one is looking for finance to buy commercial vehicle. We offer hassle-free Commercial Vehicle Loan with the best terms for funding at the most attractive rates in India. 2.1.6.2 Working Capital Finance

“HDFC” a bank with substantial appetite for recognised credits., they have a team of customer-driven relationship managers with wide industry experience in various segments. HDFC provide working capital finance by way of cash credit or loans suitably structured for the transporter to fund day-to-day operations like fuel, tyre replacement, repairs, salary, maintenance, etc. 2.1.6.3 Construction Equipment Finance

Forklifts?WheelLoaders?Excavators?If some one is looking for finance to buy construction equipment. HDFC bank offers hassle-free Construction Equipment Loan with the best terms for funding at the most attractive rates in India.

2.1.7 CARDS

2.1.7.1 CREDIT CARDSBesides arming one with unmatched spending power, HDFC Banks Credit Cards are

designed to meet ones unique needs. 2.1.7.2 INTERNATIONAL SILVER CREDIT CARD

Rewards points, Insurance to suit ones needs! Loyalty does definitely reap rewards with HDFC Bank with lower interest rates and privilege pricing on our products.

Features & benefits Add on cards

Get up to 3 supplementary cards for your spouse, parents, siblings (own brother/sister), son and/or daughter (over 18 years) and allow them to enjoy the many benefits of a HDFC Bank International Silver Credit Card.Zero liability on lost card

Report your credit card loss immediately to our executives at our 24-hour call centers. After reporting to us, you carry zero liability on any fraudulent transactions on your card.Widely accepted Accepted at over 110,000 merchant establishments across India and Nepal and

close to 18 million merchant establishments around the world.

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2.1.7.3 GOLD CREDIT CARDFeatures & benefitsUpto5%cashbackonairticketing:Get a whopping 5% cash back on any domestic air

ticket purchased with HDFC Bank Gold Credit Card directly from the Airline Company's website, for transactions above Rs 10000. For transactions up to Rs 10000, get 2.5% cashback.

5% cashback on train ticketing:Get 5% cashback on railway tickets purchased with your HDFC Bank Gold Credit Card at the Indian Railway.

Discounts on hotel tariff:A whopping 50% discount on hotel stays across India and abroad, through complimentary Silver Benefit membership to the International Business Traveller's Club. You are also eligible for up to 50% discounts for car rentals from Hertz-Rent-a-Car, through the IBTC membership.

Insurance benefits:HDFC Banks provide air accident cover of Rs.25 lakhs, rail/road accident cover of Rs 3 lakhs and accidental hospitalisation cover of Rs 50,000 absolutely free on the card.

Greater reward points:With the HDFC Bank Gold Credit Card you earn 2 reward points for every Rs. 100 spent on the card.

Revolving credit facility:Pay a minimum amount, which is 5% (subject to a minimum amount of Rs.200) of your total bill amount or any higher amount whichever is convenient and carry forward the balance to a better financial month. For this facility you pay a nominal charge of just 2.95% per month (35.4% annually) (2.85% per month 34.2% annually for HDFC Bank Account Holders).

2.1.7.4 TITANIUM CREDIT CARDThe HDFC Bank Titanium Credit Card is quite simply the most exclusive Credit card you could ask for. Find out all it can do for you. And you'll never be satisfied with anything less. Features & benefitsDiscounts o n hotel tariff:Enjoy a flat 50% discounts on 150 hotels in India and 1500 hotels worldwide, with the complimentary membership to International Business Travellers' Club.Conversion of reward points to airmiles:You can redeem your accumulated reward points for airmiles on India's top airlines - Jet Airways, Indian, Air Sahara & Kingfisher Airlines.Lowest ever interest rates :0f you choose to use the Revolving Credit Facility,you would pay the lowest-ever interest rate of 1.95% per month. This would translate to ample flexibility in terms of financial planning at your convenience.Zero petrol surcharge:Earn while you spend on your fuel !!! As a HDFC Bank Titanium Card customer, you enjoy not only a full waiver of the fuel surcharge that would be normally applicable otherwise, you also get the benefit of earning reward points on these spends.Lost card liability:In case you lose your card, intimate us immediately. If any fraudulent transactions happen after you have intimated to us, you are fully absolved of any liability on those transactions up to Rs. 2.00 lacs.Interest free credit facility:Your Card now gets you the highest Free Credit Period of upto 55 days from the date of purchase (subject to the submission of the charge by the Merchant).

2.1.7.5 VALUE PLUS CREDIT CARDIt's power packed with a host of unmatched features that provides your family with true Value and savings. No wonder we call it the HDFC Bank International Value Plus Credit

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Card.Like the name suggests, the Value Plus Credit Card brings you added value unlike any other card. It is a Guaranteed Cash Back card which enables you to earn up to 5% Cash Back on your spends.Features & benefitsChildren Future Secured:The happiness and the well-being of your children is your most important responsibility. HDFC Bank values your commitment and has designed a comprehensive insurance package of Rs. 1 Lakh enabling your children to continue their education in the unfortunate event of loss of your life due to accident.Household Insurance:HDFC Bank Value Plus Credit Card also comes with a comprehensive House Hold Insurance Policy that covers damage caused to household contents by fire and burglary up to a value of Rs 1 Lakh.Worldwide acceptance:The HDFC Bank International Value Plus Credit Card is accepted at over 23 million Merchant Establishments around the world, including 110,000 Merchant Establishments in India.Cash Advance:Just step into any one of our ATMs or VISA Member ATMs and withdraw cash up to 30% of your credit limit at a very nominal charge.

Accidental Death:In case of death in an air accident your nominated next of kin will receive a compensation of Rs.2,00,000. And in case of death in a rail or road accident, your nominated next of kin will receive a compensation of Rs.1,00,000.

2.1.7.6 HEALTH PLUS CREDIT CARDImagine a Credit Card that takes care of your financial health as well as your family's health and fitness. This is not just a card but a guarantee of a healthy and secure future.Features & benefitsCashless Mediclaim:This card comes with a free cashless mediclaim cover of Rs.50,000 plus a critical illness cover of Rs.1.5 lakhs. The critical illness cover includes open heart surgery, cancer, kidney failure and vascular stroke. You can avail cashless mediclaim facility at any of more than 3000 networked hospitals of the Third Party Administrator (TPA) across the country.Extra protection for your family-Add-on FloatCover:You have the option of extending the Rs.50,000 mediclaim plus the critical illness cover of Rs.1.5 lakhs cover to the add-on cardholders, be it your spouse, children, brothers or sisters. What's more, the add-on cardholders can also avail the discounts at participating hospitals.Protection through insurance:The HDFC Bank Health Plus International Credit Card offers you a comprehensive insurance package at no additional cost. In case of death in an air accident, the nominated kin will receive a compensation of Rs.10 lakhs. In the case of a rail or road accident the nominated kin will receive a compensation of Rs.2 lakhs.Cash Advance:Just step into any one of our ATMs or any ATM displaying MasterCard logo or Maestro Cirrus logo and withdraw cash up to 30% of your credit limit at a very nominal charge (Please refer to the Schedule of charges).Third Party Administrator(TPA):The TPA is an intermediatery between the hospital, the Insurer and the cardmember. Under the TPA system, the mediclaim policyholders need not pay the medical bills upfront. Instead the settlement is to be done between the hospital and the TPA. For the customer, medical expenditure becomes a cashless transaction. For the HDFC Bank Health Plus International Credit Card, the insurer United India Insurance company (UIIC) has appointed Family Health Plan Limited (FHPL) as the TPA.

2.1.7.2 DEBIT CARDS

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What if you could carry your bank account with you? HDFC Bank Debit Cards give you complete access to the money in your accounts without the risk or hassle of carrying cash.

1) Classic Cards (Easy shop International Debit Card)2) Specialised Cards(Easy shop Woman’s Advantage Debit Card)3) Premium Cards(Easy shop Gold Debit Card)

2.1.7.2.1 Easy shop International Debit Card

Features & benefits Daily Limits: Rs. 15000 at ATMs for Withdrawal and Rs. 25000 at merchant

establishments for shopping.

Access your bank account at over 8,00,000 Visa/Maestro/Cirrus ATMs in India and abroad.

Shop at more than 3,50,000 outlets in India and 13 million worldwide. The amount is debited directly to your account.

Use your card overseas. Your account is debited in Rupees regardless of the currency in which you spend.

Worldwide assistance from Visa and MasterCard on your card.

2.1.7.2.3 Easy shop Woman’s Advantage Debit CardHDFC Bank Easy Shop Woman's Advantage Debit Card is India's first Woman's

Debit Card of its kind. Not only does it replace your ATM card, it also opens a world of

privileges that match your status and lifestyle.

Features & benefits Cash Back of Re. 1 for every Rs. 200 spent: For every Rs. 200 that you will spend , you will receive Re. 1 as cash back .This cash back is valid on all purchases made through the card, at all times of the year. Specialised Services: A unique service number will be available for Woman's Debit Card customers to avail information / booking for the services listed ahead. Just call, quote your card number and use any of the services. Entertainment assistance : Dining Referral and Reservation Assistance Flower & Gift Delivery Movie Tickets

Home assistance: Financial Planning & Advisory Services Assistance Electrical & Electronic Gadget Repair Assistance Pest Control Assistance Home Cleaning AssistanceWellness : Medical Check Up Packages Nursing Care Arrangement

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2.1.7.2.4 Easy shop Gold Debit CardHDFC Bank EasyShop Gold Debit Card not only replaces your ATM / Regular Debit

Card, it also opens a world of privileges that match your status and lifestyle. Features & benefits Daily Limits: Rs. 25000 at ATMs for Withdrawal and Rs. 50000 at merchant establishments for shopping. Cash Back: For every Rs. 100 that you will spend, you will receive Re. 1 as cash back. This cash back is valid on all purchases made through the card, at all times of the year!!!0 % petrol surcharge at select Petrol pumps*: As a Gold Card holder, any petrol surcharge levied on your Card at any petrol pump in India will be reversed in the subsequent month. Insurance cover*: The following are included in the insurance covers: Death Cover by Air / Road - Sum assured Rs. 5,00,000Fire & Burglary for the items purchased under Debit Card (upto 6 months) - Sum assured Rs. 50,000 Loss of Baggage Insurance - Sum assured Rs. 20,000.

2.1.7.3 PREPAID CARDS

2.1.7.3.1 ForexPlus CardHDFC Bank brings you the ForexPlus Travel Card - a pre-paid traveller's card

designed to give you a secure and hassle-free travel experience.No more chasing moneychangers. Or paying transaction charges for shopping abroad. The ForexPlus Travel Card is ideal for travelers since it can be blocked if stolen and reloaded, while you are still abroad! In fact, it is the perfect answer to all your foreign exchange needs.The ForexPlus Travel Card is:

Accepted at over 13 million Visa Merchants worldwide Can be used to withdraw cash at 24 hour VISA ATMs anywhere in the world. Reloadable anytime, anyplace. Available in US Dollar, Euro and GBP Currencies. Comes with a Personal Accident Insurance Covers of Rs 2 lacs Includes Loss of Baggage & Passport reconstruction insurance cover

2.1.7.3.2 GiftPlus CardThe card has been packaged to suit any gifting occasion and is available for any

denomination of your choice. It gives gifting the personal touch that we all desire and also gives the beneficiary the freedom to choose the way they want to use it!

Features & benefits More personal than cash Most often than not, we run short of time or ideas to gift -

we then make do with gifting cash! This card with its occasion-based packaging is more personal than cash, as it reflects the thought and effort that has gone behind the gift.

Freedom of choice While the card is more personal than cash, it also allows the cardholder (the beneficiary ) the freedom to choose their own gift. Shop , dine, party - the cardholder can use the card just the way he/she wants. This is the freedom this card gifts the user.

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Ease of usage Giftplus card is a Visa card and can hence be used at any Visa affiliated merchant outlet , both in India and abroad. This gives worldwide usage access to over more then 13 million merchant establishments.

2.1.8 INVESTMENTS & INSURANCEHDFC Bank ensures your money is not just in safe hands; it also works to their

advantage. It helps them to invest wisely through its financial and investment services.2.1.8.1 Mutual funds

Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual Funds could be Equity funds , Debt funds or balanced funds.Funds are selected on quantitative parameters like volatality, FAMA Model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions / due diligence processes with fund managers.

Advantages of investing into a Mutual FundA large part of the success of mutual funds is also the advantages they offer in terms of diversification, professional management and liquidity.Flexibilty - Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans & dividend reinvestment.Affordability - They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy.Liquidity - In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV.Diversification - Risk is lowered with Mutual Funds as they invest across different industries & stocks.Professional Management - Expert Fund Managers of the Mutual Fund analyse all options based on experience & research.

2.1.8.2 InsuranceHDFC Bank offers a world of choice in insurance. one can now avail of Life -

Insurance plans from HDFC Standard Life Insurance.Life – Insurance Unit Linked Insurance Plans

For your child: Give your children a head start by growing your savings. Invest in HDFC Unit Linked Young Star that gives double benefit.For retirement: Earn a pension for life by maximizing your returns. Invest in HDFC Unit Linked Pension.For the long-term: Invest in a savings plan with a long-term horizon and get life cover too. Invest in HDFC Unit Linked Endowment.For retirement: Earn a pension for life by maximizing your returns. Invest in HDFC Unit Linked Pension.Conventional Insurance PlansTo realize your child's goals: Make your child's dreams come true by investing in a plan that fetches a lump sum amount at maturity. Invest in HDFC Children's Plan.For a long-term horizon: Invest in HDFC Savings Assurance Plan which is a pure investment product having tax sops of an insurance product. For cash flow:Get cash lump sums at regular intervals to meet your financial needs. Invest in HDFC Money Back Plan.

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Term Assurance Plan

For life cover:Secure the future of your loved ones by providing for their financial security. Buy HDFC Term Assurance Plan

2.1.8.3 Financial PlanningThe Financial Planning service is offered as an option to long term investors. The

portfolio is advised on in a passive investment style with the asset category as mutual funds. The planner is suitable for investors who wish to take a asset allocation based, long term investment outlook, ignoring the short term volatalities of financial markets.

2.1.8.3.1 Financial Planning takes into account:

Desired asset allocation, risk profile and return expectations

Building cash flows correlating all expenses and income. Inflation and outflows due to loans are considering in building the financial plan

Future goals like retirement, housing and children's education / marriage or other needs

2.1.9 Equities & DerivativesIn financial markets, the only constant thing is change. At such times, HDFC

Securities offers you a unique gamut of services designed to put you in charge of your finances and lets you trade in the comfort of your home or office. Finally, you can trade with complete ease. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. At your instructions, funds / shares can be seamlessly moved from your linked Demat/Bank account to execute your transactions .

2.1.10 Mudra Gold BarHDFC Bank presents Mudra, an offering worth its weight in gold. Mudra is a 24

Karat, 99.99% pure gold bar that you can purchase for investment or gifting.Gold continues to be one asset that appreciates steadily. HDFC Bank now offers Pure Gold bars imported from Switzerland with an Assay certification, signifying the highest level of purity as per international standards.Pure and ReliableMudra is great value for money. These 24 K Gold Bars are made in Switzerland and come with an Assay certification, signifying the highest level of purity as per international standards.ConvenienceMudra Gold Bars are currently available in 5 g, 10 g* and 50 g* weight. The Gold Bars are presented in tamper-proof certified card packs.PriceMudra Gold Bars are competitively priced based on the daily prices in the international bullion market. The price is inclusive of customs duty and other charges involved in the retailing of gold bars.

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2.1.10 FOREX AND TRADE SERVICESIf one needs to deal in foreign currency and keep tabs on exchange rates every now

and then, transfer monies to India, make payments etc., HDFC Bank has a range of products and services that you can choose from to transact smoothly, efficiently and in a timely manner.

Foreign Exchange and Trade ServicesThe following are different methods of transacting in Foreign Exchange and remitting money.

Travelers Cheques Foreign Currency Cash Foreign Currency Drafts Cheque Deposits Remittances Cash to Master Trade Services Forex Services Branch Locator

2.1.12 PAYMENT SERVICESWith HDFC Bank's payment services, one can bid goodbye to queues and paper work.

Our range of payment options make it easy for you to pay for a variety of utilities and services.NetSafe: Now shop online without revealing your HDFC Bank Credit Card number.BillPay: Pay your telephone, electricity and mobile phone bills at your convenience. Through the Internet, ATMs, your mobile phone and telephone - with BillPay, our comprehensive bill payments solution.InstaPay: Pay your bills, make donations and subscribe to magazines without going through the hassles of any registration.DirectPay: Shop or Pay bills online without cash or card. Debit your account directly with our DirectPay service!Visa Money Transfer: Transfer funds to any Visa Card (debit or credit) within India at your own convenience through HDFC Bank's NetBanking facility.e-Monies National Electronic Funds Transfer: Transfer funds from your account to other Bank accounts across India - FREE of cost!Online Payment of Excise & Service Tax: Make your Excise and Service Tax payments at your own convenience through HDFC Bank's NetBanking facility.

2.2 PRIVATE BANKINGHDFC Bank offers Private Banking services to high net worth individuals and

institutions. Our team of seasoned financial and investment professionals provide objective guidance backed by thorough research and in-depth analysis keeping in mind your financial goals.Multiple Recognition from Euromoney: At HDFC Bank, we have always strived towards providing exceptional service to each of our esteemed customers. As testament to this dedication, we have earned the following ranks in a recently conducted Euromoney Survey. Rated as the Best Private Bank in the Super Affluent Category in India.

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2.2.1 NRI BANKING 2.2.1.1NRO FIXED DEPOSITFeatures & Benefits

Open the deposit jointly with a Resident Indian. Avail of a loan on upto 75% of your deposit. Repatriate the interest on your deposit Interest credited at least every three months Nomination Facility available

Cluster Deposit: Your NRO Deposit is held in clusters of Re.1, thus allowing you to encash part of the

deposit amount, making it possible for you to withdraw part of the deposit before the maturity date, while the balance continues to earn interest at the contract rate.

Initial Fixed Deposit: Rs. 25,000/- Add-on Fixed Deposits: Rs. 10,000/-

2.2.1.2NRE FIXED DEPOSITS

Features & Benefits Open the deposit jointly with any other NRI Avail of a loan of upto 75% of your deposit Repatriate your complete deposit (principal and interest) at any time. The entire deposit (principal and interest) is exempt from tax.

2.3 WHOLESALE BANKING 2.3.1 CORPORATES

Corporate Banking reflects HDFC Bank's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products. We achieve this through innovative product development and a well-integrated approach to relationship management.We offer blue chip companies in the India, a full range of client-focused corporate banking services, including working capital finance, trade and transactional services, foreign exchange and cash management, to name a few. The product offerings are suitably structured taking into account a client's risk profile and specific needs. Based on our superior product delivery, industry benchmark service levels and strong customer orientation, we have made significant inroads into the formal banking consortia of a number of Indian companies including multinationals, domestic business houses and prime public sector companies.

Funded ServicesWorking Capital Finance Short Term FinanceBill Discounting Structured FinanceExport Credit Term Lending

Non Funded Services

Letter of Credit Bank Guarantees Collection of Documents

Value Added ServicesSyndication Services Forex DeskReal Time Gross Settlement Money Market Desk

35

Cash Management Services Derivatives DeskChannel Financing Employees TrustsVendor Financing Cash Surplus CorporatesCorporate Salary Accounts Tax CollectionReimbursement Account Bankers to Right/Public Issue

Supply Chain PartnersAt HDFC Bank we create Supply Chain Finance solutions that enable our clients to automate supply chain management resulting in operational efficiency and supply chain gains. Our vast array of services and supply chain solutions help in seamless transfer of funds, faster delivery of goods and reduction of processing costs. And all this from our website or our revolutionary ENet™ service

Agricultural LendingEveryone who is involved in agricultural industry knows that the business is not usual. Each agribusiness faces different challenges and has unique needs. From the fluctuating cash flows to the unpredictability of the weather, managing a successful agribusiness requires a distinctive approach.That's why the HDFC Bank has solutions that are chiefly dedicated to agribusiness.

Small & Medium EnterprisesAt HDFC Bank we understand how much of hard work goes into establishing a successful SME. We also understand that your business is anything but "small" and as demanding as ever. And as your business expands and enters new territories and markets, you need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why we at HDFC Bank have assembled products, services, resources and expert advice to help ensure that your business excels. Our solutions are designed to meet your varying needs. The following links will help you identify your individual needs.2.4 SERVICES

2.4.1 Funded ServicesFunded Services from HDFC Bank are meant to directly bolster the day-to-day

working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - we cater to virtually every business requirement of an SME. 2.4.2 Non-Funded Services

Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel your business. Imagine a situation where you have a letter of credit and need finance against the same or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This is exactly where we can help you so that you don't face any roadblocks when it comes to your business.

2.4.3 Specialised Services HDFC Bank is one of the most trusted entities when it comes to specialised services like selling of precious metals to customers. Under specialised services you can also avail customised control of your value chain through our internet banking platform.2.4.4 Value Added Services

36

There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an assortment of credit cards and debit cards from our merchant services.2.4.5 Internet Banking

Internet banking is a revolutionary service under the banking sector and HDFC Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient.2.4.6 Government Sector

HDFC Bank acts as an active medium between the government and the customers by means of various services. These services include:Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and Sales Tax collections at their local HDFC Bank.E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered.Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus facilitating imports for the Government.Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank.Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by HDFC Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organization).Electronic Collection of fees on behalf of DGFT is done by the bank too.

37

3.Literature Review Dick (2008) estimates a structural demand model for commercial bank deposit services in order to measure the effects on consumers given dramatic changes in bank services throughout US branching deregulation in the 1990s. Following the discrete choice literature, consumer decisions are based on prices and bank characteristics. Consumers are found to respond to deposit rates, and to a lesser extent, to account fees, in choosing a depository institution. Moreover, consumers respond favorably to the branch staffing and geographic density, as well as to the bank’s age, size, and geographic diversification. Consumers in most markets experience a slight increase in welfare throughout the period. Dick (2008) also studied the effect of structural demand model for commercial bank deposit services on consumers. The study concluded that the consumer decisions are primarily on prices and bank characteristics like branch staffing, geographical density, bank’s age and size etc.

3.2 Deregulation and the emergence of new forms of technology have created highly competitive market conditions which have had a critical impact upon consumer behaviour. Bank providers must, therefore, attempt to better understand their customers in an attempt not only to anticipate but also to influence and determine consumer buying behavior. The paper accordingly presents and develops a model which attempts to articulate and classify consumer behaviour in the purchasing of financial products and services. The theoretical insights generated by this model are then used to examine qualitative research data gained from focus group discussions on consumers’ attitudes to their financial providers and their financial products. Finally, these findings are examined for the potential insights they provide to bank providers attempting to identify appropriate strategies which are conducive to increased customer retention and profitability.

Beckett, Hewer and Howcroft ( together examined how new forms of technology have had critical impact on the consumer behavior. So for the better working of the bank, the bank providers must use varied ways to influence the consumer behaviors. The authors formulated a model which reflected to the purchasing of financial products and services which examined the qualitative research of the focus group under consideration. Finally these were used to increase customer retention and profitability.

3.3 Here Mavri (2008) aims to examine customer switching behavior in banking services. More specifically it aims to investigate predictors of churn behavior as part of customer relationship management (CRM).The enhancement of existing relationships is of pivotal importance to banks, since attracting new customers is known to be more expensive. He discusses survival analysis based on data collected from customers of a leading financial services company. It examines a number of variables, which represent characteristics of the customers and of the offered services and products. By using life tables, it estimates the contribution of each separate factor in customers' switching behavior in different periods of

38

3.Literature Review….

time.A hazard proportional model is built to determine the risk of churn behavior, which is the end-result of all the examined factors. Bank's management team could use the findings of our study, in order to determine specific attributes in designing financial services and products, which would add in customers' satisfaction. The approach and results have significant implications for enlarging the duration of the relationship among customer and bank.

3.4 Sadiq (2008) in this paper is to measure the quality of service from customers' perspective. With an enormous growth in internet banking, this paper discusses how banks can be competitive by providing quality services.This study is based on a questionnaire.Based on an extensive review of literature, the paper uses empirical research to analyze service quality of internet banking services provided by banks.Results based on a factor analysis identify three factors that influence users' evaluation of service quality of internet banking services. These factors are labeled as “efficiency and security”, “fulfillment” and “responsiveness”. This research is useful for banks in order to improve service quality and retain/gain a share of the market in a highly competitive industry.The findings are important to enable bank managers to have a better understanding of customers' perception of service quality of internet banking and consequently of how to improve their satisfaction with respect to the online aspects of service quality.This paper makes a valuable contribution given the fact that there are only a limited number of comprehensive studies dealing with the assessment of electronic service quality in banking environment

3.5 The authors Avinandan Mukherjee and Prithwiraj Nath noted that the role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank-to-customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic behavior as antecedents to trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical to developing trust as well as relationship commitment. Communication has a moderate influence on trust, while opportunistic behavior has significant negative effect. Also finds higher perceived trust to enhance significantly customers’ commitment in online banking transaction. An important contribution concerns how trust is developed and sustained over different levels of customer relationship in online banking. The future commitment of the customers to online banking depends on perceived trust.

39

4.1 PROBLEM DEFINITION/OBJECTIVE

4.1.1 Primary objective: To study the perception of customers’ about HDFC Bank via intra products

comparison & How HDFC Bank differentiates its products and services.4.1.2 Secondary objective:

1. To do a comparative study of various attributes of HDFC Bank products and services. 2. To study the loop holes if any of HDFC BANK.

4.2.RESEARCH METHODOLOGY

4.2.1.1 Research Design: Definition "A research design is the arrangement of condition for collection and analysis of data in a manner that to combine relevance to research purpose with economy in procedure”. The research design helps the researcher organize his ideas in a form whereby it will be possible for him/her to look for flaws and inadequacies. The various research methodologies used in this project are

Chi-square test: This is a non-parametric test where we test for independence. Basically we just check whether one factor influences the other or not.

ANOVA: This an acronym to (Analysis of Varience) used to test the means for two or more variables.In simple form the ANOVA should have a dependent variable that is metric.There must be also one or more independent variables.The independent variables must all be categorical.(nonmetric).

Factor Analysis: In principal components analysis and factor analysis one wishes to extract from a set of p variables a reduced set of m components or factors that accounts for most of the variance in the p variables. In other words, we wish to reduce a set of p variables to a set of m underlying super ordinate dimensions.

These underlying factors are inferred from the correlations among the p variables. Each factor is estimated as a weighted sum of the p variables. The ith factor is thus

pipiii XWXWXWF 2211

One may also express each of the p variables as a linear combination of the m factors,

jmmjjjj UFAFAFAX 2211

Where, Uj is the variance that is unique to variable j, variance that cannot be explained by any of the common factors. FA simply reduces a set of p variables to m components or factors prior to further analyses on those m factors.

Extracting Principal Components

From 9 variables we can extract 9 components. This will involve solving 9 equations with 9 unknowns. The variance in the correlation matrix is “repackaged” into 9 Eigen values. Each Eigen value represents the amount of variance that has been captured by one component Eigen values.Each of the 9 variable’s variance is standardized to one. With 9

40

4.Market Research….

variables there is 10x1 = 9variance to distribute. The principal components extraction will produce 9 components which in the aggregate account for all of the variance in the 9 variables. That is, the sum of the 9 Eigen values will be equal to 9, the number of variables. The proportion of variance accounted for by one component equals its Eigen value divided by 9.

Relative Index: This is a statistical tool which helps us to compare among various parameters having unequal weightage.What we do here is find out the RI for all the parameters and then see or the one having the highest RI value. This parameter having the highest RI value would tell that that this factors is most contributing to problem statement.

4.2.1.2 Objective of the Project:The major objectives of the research study are

Examine the psychographics of potential HDFC Bank users and non users Prove the perception of customers towards the commercial banks. To judge awareness level HDFC Bank products & services, amongst people. To find out the customer expectations from HDFC Bank.

4.2.1.3 Sources of Primary and Secondary Data One major aim of this project was to analyze the competition on retail banking market with respect to HDFC and their products & offerings. Therefore I had to gain knowledge about the different products of its products and their various functionalities with respect to HDFC Bank and how the other nabks are doing well in the same aspect. In order to accumulate this nowledge. I had to go through a lot of secondary data namely ( Indian banking System) HDFC Banks' Annual Report and products & services of HDFC bank collected from internet. The only way this project could have been done was' by collecting primary data from the common man For this purpose a detailed structured questionnaire was made and tested before being put to use.

4.3. Sampling Design 4.3.1 Target Segment: - Those customers who are the users of HDFC Bank especially corporates. 4.3.2 Time boundary: 4th April 2010 to 30th July 2010.As these people can be met only at offices, Banks, ATMs and shopping complex during bank working hours, I took their interviews from 10. 00 AM to 6. 00 PM .on weekdays.4.3.3 Characteristics: - To know the perception of customers for using HDFC Bank products & services 4.3.4 Environmental condition: Feasible in all possible economic scenarios.4.3.5 Tools & Techniques: - SPSS package & Excel Sheet. 4.3.6 Who should be interviewed: -Major concern was to interview the right person, at the right time and the right place.

4.3.7 Demographics of Respondents:-Age : (20-50+) yearsOccupations : Student or business or service or othersSex : Male or FemaleMarital Status : Married or Single

41

4.2.3 Sampling methodSample size 101

I

4.4DATA ANALYSIS & OBSERVATION

FINDINGS 1Question no 1: How long have you been using a product of HDFC?

Output

Table 1.1

N Valid 99

Missing 2Mean 3.17Median 2.00Mode 1Std. Deviation 2.511

Table 1.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid < 6 months

7 6.9 7.1 7.1

1 26 25.7 26.3 33.32 17 16.8 17.2 50.53 14 13.9 14.1 64.64 10 9.9 10.1 74.75 5 5.0 5.1 79.86 7 6.9 7.1 86.97 4 4.0 4.0 90.98 4 4.0 4.0 94.99 5 5.0 5.1 100.0Total 99 98.0 100.0

Missing

System2 2.0

42

Data analysis….

Figure1.1

2.02%

5.05%

…4…

7.07%

5.05%

10.10%

14.14%

17.17%

26.26%

7.07%

Missing987654321< 6 months

Duration

The above table shows that from the sample, the maximum number of respondents have started using HDFC bank from 1– 4 years. Having a total percentage of 67.67%.This means that from last four years HDFC is growing and it has become more familiar to the public in private sector banking .But if you closely look at the pie-chart you can see the majority of the sample hold an account with HDFC only for an year.

43

Findings2Question no 2: Tick the most widely used product by you among the following.

Table 2.1

Frequency Percent

Valid Percent

Cumulative Percent

Valid Dmat 8 7.9 8.0 8.0FD 4 4.0 4.0 12.0Mutual fund

8 7.9 8.0 20.0

Credit cards

19 18.8 19.0 39.0

SB/CA 57 56.4 57.0 96.0Loans 4 4.0 4.0 100.0Total 100 99.0 100.0

Missing

System1 1.0

Total 101 100.0

Table 2.2

N Valid 100

Missing 1Mean 4.25Median 5.00Mode 5Std. Deviation 1.282

44

Figure 2.1

Tick the most widely used product by you among the following

6420

Fre

qu

en

cy

60

50

40

30

20

10

04

57

19

84

8

8

Histogram

Mean =4.25Std. Dev. =1.282

N =100

According to the data collected, on which the mean/median / std deviation analysis was run using the SPSS tool , the median tends to indicate that the most widely used product in the sample size is SB/CA/Sal a/c . This is indicated in the mean/median table and the histogram .this being an ordinal scale median is the best measure.(refer to the histogram above)Here we can also check how gender influences the choice of a product using the SPSS tool-Compare means.

Table 2.3

Tick the most widely used product by you among the following

Sex Mean NStd. Deviation Median Skewness

Male 4.25 80 1.307 5.00 -1.456Female 4.37 19 1.116 5.00 -1.641Total 4.27 99 1.268 5.00 -1.480

From the above table it can be inferred that the score of the two means are approximately similar so gender does not quite influence the choice of the product. Though if you closely look at the distribution of the male and female sample collected you can see a considerable difference in the number but even that does not effect to the choice of the products made.We can also look at it from a different perspective, which is the ANOVA(Analysis of variance)

45

Dmat 1FD 2Mutual Funds 3Credit Cards 4SB/CA/Sal 5Loans 6

H0: There is no significant difference between the two genders in choosing the product.AgainstH1: There is a significant difference between the two genders in choosing the product.

ANOVA Table 2.4

Sum of Squares df

Mean Square F Sig.

Tick the most widely used product by you among the following * Sex

Between Groups

(Combined)

.215 1 .215 .133 .716

Within Groups 157.421 97 1.623 Total 157.636 98

Here we can conclude that the significance value is considerably more than (0.05) which says that we can accept H0(null hypothesis).Hence, there is no influence of gender in the choice of the product.Findings 3Question no 3: Comparing other bank products the products of HDFC

Table 3.1

N Valid 100Missing 1

Mean 1.16Median 1.00Mode 1Std. Deviation .707Skewness -1.640Std. Error of Skewness .241

Table 3.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid Strongly dissatisfactory

1 1.0 1.0 1.0

Dissatisfactory 4 4.0 4.0 5.0Satisfactory 68 67.3 68.0 73.0Strongly satisfactory

27 26.7 27.0 100.0

Total 100 99.0 100.0 Missing

System1 1.0

46

Total 101 100.0

Figure 3.1

1.00%

27.00%

68.00%

4.00%

Missingstrongly satisfactorysatisfactorydissatisfactorystrongly dissatisfactory

Comparing other bank products, the produtcs of HDFC

Mean is almost equal to Median (1=1.16) here in the Q3.So we can conclude by saying the that most of the customers of HDFC bank are satisfied with the products.

Findings 4Question no 4: The service of which among the following products do you prefer in HDFC

Table 4.1

N Valid 98Missing 3

Mean 4.14Median 5.00Mode 5Std. Deviation 1.308Skewness -.749Std. Error of Skewness .244

47

Table 4.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid Dmat 3 3.0 3.1 3.1FD 14 13.9 14.3 17.3Mutual Funds

8 7.9 8.2 25.5

Credit Card 23 22.8 23.5 49.0SB/CA 41 40.6 41.8 90.8Loans 9 8.9 9.2 100.0Total 98 97.0 100.0

Missing

System3 3.0

Total 101 100.0

The analysis pertaining to Q4 , where in the mean = 4.14 and median = 5 , reveals that credit cards and SB/CA/Sal A/C are clearly preferred in HDFC . Also it means to suggest that the penetration of HDFC in this segment in much higher in the market . The data also suggests that the most SB/CA/Sal A/C users of HDFC bank prefer the same banks Credit Card . This also can be seen the HDFC has been successful in penetrating across the requirements of its customers instead of loosing some of its services to competitors

48

The service of which among the following products do you prefer in hdfc

6420

Fre

qu

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50

40

30

20

10

0

Histogram

Mean =4.14Std. Dev. =1.308

N =98

Dmat 1FD 2Mutual Funds 3Credit Cards 4SB/CA/Sal 5Loans 6

Findings 5Question no 5: Basing on what parameters do you choose a productTable 5.1

NMinimum

Maximum Mean

Std. Deviation

Basing on what parameters do you choose .

99 1 6 2.39 1.743

Table 5.2

Table 5.3

Frequency Percent

Valid Percent

Cumulative Percent

Valid Dmat 3 3.0 3.1 3.1FD 14 13.9 14.3 17.3Mutual Funds

8 7.9 8.2 25.5

Credit Card 23 22.8 23.5 49.0SB/CA 41 40.6 41.8 90.8Loans 9 8.9 9.2 100.0Total 98 97.0 100.0

Missing

System3 3.0

Total 101 100.0

N Valid 98Missing 3

Mean 4.14Median 5.00Mode 5Std. Deviation 1.308Skewness -.749Std. Error of Skewness .244

49

Figure 5.1

3

9

41

23

8

14

3

Missingloanssb/cacredit cardmutual fundsfddmat

The service of which among the following products do you prefer in hdfc

Again looking at the median ,it being a ordinal scale we can conclude that customers look from service when they want to choose a bank.You can clearly see that the service has occupied more that 50% of the sample size,brand and features being the second important factor for choosing a bank.

Findings 6Question no 6

Analyze the performance of Credit Cards on the following parameters Convenient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Convenient Costly ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Less costly Efficient ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __Less Efficient Aware ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ Not Aware Low TAT ___ ___ ___ ____ _____ ___ ___ ___ ____ ____ ___ High

50

Table 6.1

NMinimum

Maximum Mean

Std. Deviation Skewness Kurtosis

Statistic Statistic Statistic Statistic Statistic StatisticStd. Error Statistic

Std. Error

Convenient 79 1 7 5.59 2.003 -1.237 .271 .184 .535Costly 80 1 7 4.59 2.265 -.388 .269 -1.304 .532Efficient 80 1 7 5.49 1.987 -1.152 .269 .038 .532Aware 80 1 7 5.25 2.053 -.824 .269 -.622 .532TAT 80 1 7 5.01 2.161 -.580 .269 -1.197 .532Valid N (listwise)

79

Table 6.2

Convenient Costly Efficient Aware TAT

N Valid 79 80 80 80 80Missing

22 21 21 21 21

Median 7.00 5.00 6.50 6.00 6.00

Table 6.3

Frequency Percent

Valid Percent

Cumulative Percent

Valid Not Convenient(1)

6 5.9 7.6 7.6

2 5 5.0 6.3 13.93 3 3.0 3.8 17.7

4 3 3.0 3.8 21.55 12 11.9 15.2 36.76 5 5.0 6.3 43.0Convenient(7)

45 44.6 57.0 100.0

Table 6.4

Frequency Percent

Valid Percent

Cumulative Percent

Valid Costly(1) 13 12.9 16.3 16.32 8 7.9 10.0 26.33 3 3.0 3.8 30.04 11 10.9 13.8 43.85 13 12.9 16.3 60.06 4 4.0 5.0 65.0Less costly 28 27.7 35.0 100.0

51

Table 6.5

Table 6.6

Table 6.7

Frequency Percent

Valid Percent

Cumulative Percent

Valid Less Efficient(1)

6 5.9 7.5 7.5

2 6 5.9 7.5 15.03 1 1.0 1.3 16.34 7 6.9 8.8 25.05 10 9.9 12.5 37.56 10 9.9 12.5 50.0Efficient(7)

40 39.6 50.0 100.0

Frequency Percent

Valid Percent

Cumulative Percent

Valid Not aware(1)

7 6.9 8.8 8.8

2 4 4.0 5.0 13.83 5 5.0 6.3 20.04 12 11.9 15.0 35.05 8 7.9 10.0 45.06 6 5.9 7.5 52.5Aware(7)

38 37.6 47.5 100.0

Frequency Percent

Valid Percent

Cumulative Percent

Valid Low TAT(7)

6 5.9 7.5 7.5

6 10 9.9 12.5 20.05 8 7.9 10.0 30.04 5 5.0 6.3 36.33 10 9.9 12.5 48.82 6 5.9 7.5 56.3TAT(1)

35 34.7 43.8 100.0

Total 80 79.2 100.0

52

Figure 6.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

1 2 3 4 5 6 7

Convenient

Costly

Efficient

Awareness

TAT

This question gives us a descriptive analysis of the credit cards of HDFC throughout the various parameters of the credit cards The various tables gives us a n exhaustive but and easy way to understand the perception of customers with respect to various parameters mentioned in the question.Now if you look at the Bar-chart we can clearly say that customers look for convenience as their major parameter in choosing a credit card. But they we can also see that customers are not very happy with the rates of the credit card and they find it costly.This is a bipolar scale where we are using a 7-point rating scale.. But in this we are unable to find out which parameter is the most contributing to the performance of credit cards so we have used the tool of Relative Index.

Table 6.8Parameter RIConvenient 5.595Costly 4.588Aware 5.25Efficient 5.488TAT 2.988

53

Figure 6.2

RI

0

1

2

3

4

5

6

Convenient Costly Aware Efficient TAT

Parameters

RI RI

This table and the above figure clearly shows that the parameters convenient , aware and efficient are the ones contributing to the performance of credit cards , with convenient being the highest.Hence we can infer that the HDFC customers are satisfied with the credit cards but most of them find it Costly. The graph gives you a clear picture.Findings 7Question no 7: The sweep-in facility of FD is ___________ to the customers

54

Table 7.1N Valid 94

Missing 7Mean 2.29Median 2.00Mode 2Std. Deviation .771Variance .594Skewness .748Std. Error of Skewness .249Kurtosis .385Std. Error of Kurtosis .493

Table 7.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid Less beneficial

9 8.9 9.6 9.6

Beneficial 58 57.4 61.7 71.3More beneficial

18 17.8 19.1 90.4

Most beneficial

9 8.9 9.6 100.0

Total 94 93.1 100.0 Missing

System7 6.9

Total 101 100.0

55

Figure 7.1

9

18

58

9

Fre

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60

50

40

30

20

10

0

The sweep in facility of FDmost beneficialmore beneficailbeneficialless bebeficail

The sweep in facility of FD

Findings 8 Question no 8: Rate the following features of FD on a scale of 5.(1=Poor and 5= excellent) Altering period of deposit _____ Maturity and payment instructions _____ Principal amount _____ Roll over mode _____

56

Table 8.1

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 4 4.0 5.3 5.32 13 12.9 17.3 22.73 18 17.8 24.0 46.74 23 22.8 30.7 77.35 17 16.8 22.7 100.0Total 75 74.3 100.0

Table 8.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid 2 18 17.8 22.8 22.83 14 13.9 17.7 40.54 22 21.8 27.8 68.45 25 24.8 31.6 100.0Total 79 78.2 100.0

Table 8.3

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 10 9.9 13.2 13.22 6 5.9 7.9 21.13 26 25.7 34.2 55.34 14 13.9 18.4 73.75 20 19.8 26.3 100.0Total 76 75.2 100.0

Table 8.4

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 5 5.0 6.5 6.52 15 14.9 19.5 26.03 14 13.9 18.2 44.24 23 22.8 29.9 74.05 20 19.8 26.0 100.0Total 77 76.2 100.0

57

Figure 8.1

0%

20%

40%

60%

80%

100%

Percentages

Poor Execellent

Features of FD

Roll over Mode

Principal Amonut

Maturity

Altering Period of Deposits

My objective behind formulating this question was to find out whether the customers are happy with the features offered by HDFC Bank. So while having to do the analysis part we could analyze via the frequency tables. And my main motive was to find out the poor and the excellent scale on a 5 point scale. So the graph above gives us a study of only the poor and the excellent scale. So if you closely look at it you would see that the entire sample size of 100 are happy with the maturity and payment instructions. And also the excellent bar shows equal distribution o all the factors, forcing us to conclude that the customers are more or less happy with the FD as a productFindings 9Question no 9: Rate on a scale of 5 the performance of HSL as a suitable room for investment

Table 9.1

N Valid 72Missing 29

Mean 3.67Median 4.00Std. Deviation 1.035

58

Table 9.2

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 3 3.0 4.2 4.22 4 4.0 5.6 9.73 24 23.8 33.3 43.14 24 23.8 33.3 76.45 17 16.8 23.6 100.0Total 72 71.3 100.0

Figure 9.1

(1=Poor, 5=Excellent)

Performance of HSL

4%6%

33%

33%

24%

1

2

3

4

5

This doughnut area chart show us in terms of percentages as to how much they like or dislike the performance of HSL (HDFC Securities Limited) on a 5 point rating scale(1=Poor,5=Excellent).What we can see here is that rating 3&4 have equal importance(33%) from the point of view customer preference. And 24% of people also have find it excellent. So the customers are happy with the HSL.

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Findings 10Question no 10: Please rank from 1 to 5 the features that you like about loans in HDFC TAT ________ Availability ________ Service ________ Rate of interest _________

Table 10.1

TATAvailability Service

Rate of interest

N Valid 85 88 86 86Missing 16 13 15 15

Mean 3.44 3.82 3.22 3.40Median 4.00 3.00 3.00 4.00Mode 4 5 3(a) 4Std. Deviation 1.248 4.430 1.375 1.348

Table 10.2Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 5 5.0 5.9 5.92 19 18.8 22.4 28.23 16 15.8 18.8 47.14 24 23.8 28.2 75.35 21 20.8 24.7 100.0Total 85 84.2 100.0

Missing

System16 15.8

Total 101 100.0 Table 10.3

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 7 6.9 8.0 8.02 20 19.8 22.7 30.73 20 19.8 22.7 53.44 14 13.9 15.9 69.35 26 25.7 29.5 98.943 1 1.0 1.1 100.0Total 88 87.1 100.0

Missing

System13 12.9

Total 101 100.0 Table 10.4

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 11 10.9 12.8 12.8

60

2 17 16.8 19.8 32.63 23 22.8 26.7 59.34 12 11.9 14.0 73.35 23 22.8 26.7 100.0Total 86 85.1 100.0

Missing

System15 14.9

Total 101 100.0

Table 10.5

Frequency Percent

Valid Percent

Cumulative Percent

Valid 1 10 9.9 11.6 11.62 15 14.9 17.4 29.13 14 13.9 16.3 45.34 25 24.8 29.1 74.45 22 21.8 25.6 100.0Total 86 85.1 100.0

Missing

System15 14.9

Total 101 100.0

Figure 10.1

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

100%

Percentages

Poor Good Execellent

Performance of Loans

Rate of Interest

Service

Availability

TAT

A similar interpretation like Q8,but here I have amalgamated all the scales from (1-5).Here we can see that service is the most important factor and the customers are not happy with the service provided by the loans department in HDFC occupying major chunk of the bar in the poor.And in the excellent and very god bar u can see the arte of interest and TAT occupying most of the area.So we can conclude saying the loans department need to work hard with the service they give to their customers.

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Findings 11Question no 11:Rate on a 5point rating scale your preferences regarding the Savings/Current A/C Accessibility _______ Flexibility _______ Features ________ Service ________ Question no 12.Rate the features of Savings(SB) A/C on a 5-point rating scale. 1 2 3 4 5 Average Quarterly Balance(AQB) Payable at Par(PAP) cheque book Sweep in facility Free SBI/ANDHRA bank ATM Transactions Net/Phone Banking

Taking both these questions together and applying factor analysis we can narrow down to a set of few components which play a major role in the functioning of a savings account.

FACTOR ANALYSIS

Table 11.1Component Initial Eigen values Extraction Sums of Squared Loadings

Total% of Variance

Cumulative % Total

% of Variance

Cumulative %

1 3.497 38.859 38.859 3.497 38.859 38.8592 1.931 21.457 60.316 1.931 21.457 60.3163 1.015 11.273 71.589 1.015 11.273 71.5894 .672 7.471 79.060 5 .518 5.756 84.816 6 .440 4.885 89.701 7 .399 4.431 94.131 8 .293 3.256 97.388 9 .235 2.612 100.000

Deciding on how many components to retain rule of thumb is to retain only components with Eigen values of one or more. That is, drop any component that accounts for less variance than does a single variable.

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We can infer from the table that 3 components have Eigen values > 1 So there can be three factors or principal components. Total of 71.589% variation is explained by these four factors.

Table 11.2Component Matrix

VariablesComponent 1 2 3

Accessibility .635 -.545 -.085Flexibility .646 -.584 -.197Features .700 -.402 .055Service .652 -.431 .242AQB .267 .170 .923PAP-Cheque Book .638 .408 -.055Sweep in facility .706 .554 -.042FreeATM transactions

.653 .470 -.189

Net Banking .599 .471 -.121.

The entries in this matrix, loadings, are correlations between the components and the variables. Since the two components are orthogonal, these correlation coefficients are

also beta weights, that is, jjjjj UFAFAFAX 332211 , thus A1 equals the number of standard deviations that Xj changes for each one standard deviation change in Factor 1.

If we happen to look at the 1st component we can see that the factors which are positively loaded are the ones which are highly loaded among the three components.

The variables loaded (positively) well on the first component, sweep-in facilityFD

Features,Free ATM transactions, Service

The second component is loaded by Net Banking and Payable at Par(PAP) cheque book.

The third component is loaded positively by AQB,

Component 1 seems to reflect that the workings of the savings account accounts to easy accessibility

Component 2 seems to the various features given by the Bank through flexible transactions.

Component 3 reflects to the primary features of the savings account

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Conclusion:

While choosing a bank for a savings account the customers look for accessibility ,flexibility, feartues.And the factors contributing to these are-Sweep in facility-FD, Free ATM transactions, Net Banking, PAP , AQB and Service.

Now, incorporating the Q2 (Tick the most widely used product by you) and the age group of the collected sample, we test whether there is a correlation between the two variables?

We now use the cross tabulation and the chi-square (test for independence), so we have the cross tabulation

Table 11.3

Age Total

Under 18

between 18 to 25

between 25 to 35

between 35 to 50

between 50 to 75

Dmat Count 0 0 8 0 0 8 Expected Count .1 1.9 4.0 1.5 .6 8.0 % within Tick the

most widely used product by you among the following

.0% .0% 100.0% .0% .0% 100.0%

% within Age .0% .0% 16.3% .0% .0% 8.1% % of Total .0% .0% 8.1% .0% .0% 8.1%FD Count 0 0 1 0 2 3 Expected Count .0 .7 1.5 .6 .2 3.0 % within Tick the

most widely used product by you among the following

.0% .0% 33.3% .0% 66.7% 100.0%

% within Age .0% .0% 2.0% .0% 28.6% 3.0% % of Total .0% .0% 1.0% .0% 2.0% 3.0%Mutual Fund

Count0 3 4 1 0 8

Expected Count .1 1.9 4.0 1.5 .6 8.0 % within Tick the

most widely used product by you among the following

.0% 37.5% 50.0% 12.5% .0% 100.0%

% within Age .0% 13.0% 8.2% 5.3% .0% 8.1% % of Total .0% 3.0% 4.0% 1.0% .0% 8.1%

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Credit Cards

Count1 5 11 2 0 19

Expected Count .2 4.4 9.4 3.6 1.3 19.0 % within Tick the

most widely used product by you among the following

5.3% 26.3% 57.9% 10.5% .0% 100.0%

% within Age 100.0% 21.7% 22.4% 10.5% .0% 19.2% % of Total 1.0% 5.1% 11.1% 2.0% .0% 19.2%SB/CA Count 0 14 23 15 5 57 Expected Count .6 13.2 28.2 10.9 4.0 57.0 % within Tick the

most widely used product by you among the following

.0% 24.6% 40.4% 26.3% 8.8% 100.0%

% within Age .0% 60.9% 46.9% 78.9% 71.4% 57.6% % of Total .0% 14.1% 23.2% 15.2% 5.1% 57.6%Loans Count 0 1 2 1 0 4 Expected Count .0 .9 2.0 .8 .3 4.0 % within Tick the

most widely used product by you among the following

.0% 25.0% 50.0% 25.0% .0% 100.0%

% within Age .0% 4.3% 4.1% 5.3% .0% 4.0% % of Total .0% 1.0% 2.0% 1.0% .0% 4.0%Count 1 23 49 19 7 99Expected Count 1.0 23.0 49.0 19.0 7.0 99.0% within Tick the most widely used product by you among the following

1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

% within Age 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%% of Total 1.0% 23.2% 49.5% 19.2% 7.1% 100.0%

The cross tabulation above is certainly exhaustive but if you look at it closely you can see that across all age groups w can find the proportion of SB/CA/Sal A/C to be the highest with the age group 25yrs-35yrs having the highest SB/CA/Sal A/C holders

65

Figure 11.1

Tick the most widely used product by you among the following

LoansSB/CACredit CardsMutual FundFDDmat

Co

un

t25

20

15

10

5

0

Bar Chart

between 50 to 75between 35 to 50between 25 to 35between 18 to 25Under 18

Age

Table 11.4

Value df

Asymp. Sig. (2-sided)

Pearson Chi-Square

35.788(a)

20 .016

Likelihood Ratio 31.632 20 .047Linear-by-Linear Association

.067 1 .795

N of Valid Cases 99

Null hypothesis:H0: There is no correlation between the two variables (the age and the choice of products)Against H1: There is a significant correlation between the two variables (the age and the choice of products)The chi-square measures test the hypothesis that the row and column variables in a cross tabulation are independent . A low significance value (typically below 0.05) indicates that there may be some relationship between the two variables.So as our significant value is 0.16,which is not lower than the significant value we cannot say that there is a relation between the age and the choice of the product so we reject our null hypothesis.Findings 12Question no 15:Rate on a scale of 5 the comfort zone of customers in using a HDFC product.

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Table 12.1

Table 12.2-ANOVA

Looking at the descriptive we can see that the means of the ages groups 18-25yrs & 25-35yrs Are very close, hence said they have low variance.So if we run Students F-test the F-statistic would compute the sample variances. Even the mean plot below clearly shows this.H0:σ1= σ2(variance of ages group 18-25yrs is equal to variance of 25-35yrs )Against H1: σ1≠σ2(variance of ages group 18-25yrs is not equal to variance of 25-35yrs )

Figure 12.1

Age

between 50 to 75

between 35 to 50

between 25 to 35

between 18 to 25

Under 18

Mea

n o

f C

om

fort

zo

ne o

f cu

sto

mers

in

usin

g a

pro

du

ct

of

HD

FC

4

3.5

3

2.5

2

N MeanStd. Deviation

Std. Error

95% Confidence Interval(Upper&Lower)

Under 18 1 2.00 . . . .between 18 to 25

21 3.71 1.189 .260 3.17 4.26

between 25 to 35

46 3.70 1.227 .181 3.33 4.06

between 35 to 50

17 3.35 .786 .191 2.95 3.76

between 50 to 75

7 3.86 .378 .143 3.51 4.21

Total 92 3.63 1.107 .115 3.40 3.86

Sum of Squares df

Mean Square F Sig.

Between Groups

4.670 4 1.168 .951 .438

Within Groups 106.764 87 1.227

67

Between Groups represents variation of the group means around the overall mean. Within Groups represents variation of the individual scores around their respective group means. Sig indicates the significance level of the F-test. Small significance values (<.05) indicate group differences.Hence if u look at the significance vakue in the table you can see that the value is greater than(0.05) which shows that there is no group difference between the two samples(18-25yrs & 25-35yrs). So we accept H0(null hypothesis).

Question no 16: The merger with Centurion Bank of Punjab has made the workings of HDFC more flexible and easily accessible to customers.

Strongly Agree Strongly Disagree Agree Disagree

Table 12.3

Frequency Percent

Valid Percent

Cumulative Percent

Valid strongly dissatisfactory

2 2.0 2.1 2.1

dissatisfactory 2 2.0 2.1 4.2satisfactory 68 67.3 70.8 75.0strongly satisfactory 24 23.8 25.0 100.0Total 96 95.0 100.0

Missing

System5 5.0

Total 101 100.0 Figure 12.2

68

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

stronglydissatisfactory

satisfactory

Parameters

Merger of CBP and HDFC Bank

Percentages

The merger of HDFC with CBP has satisfied the customers to 67.3% which ha occupied more than 50% of the sample.

Findings 13

Question no 18: A bank that you would prefer other than HDFC ICICI Andhra Bank SBI IDBI

ING VysaTable 13.1

age Total

Under 18

between 18 to 25

between 25 to 35

between 35 to 50

between 50 to 75

ICICI Count 0 5 17 3 4 29 % within which

bank would you prefer

.0% 17.2% 58.6% 10.3% 13.8%100.0%

% within age .0% 21.7% 34.7% 15.8% 57.1% 29.3% % of Total .0% 5.1% 17.2% 3.0% 4.0% 29.3%IDBI Count 0 1 7 1 0 9 % within which

bank would you prefer

.0% 11.1% 77.8% 11.1% .0%100.0%

% within age .0% 4.3% 14.3% 5.3% .0% 9.1% % of Total .0% 1.0% 7.1% 1.0% .0% 9.1%Andhra

Count0 3 5 3 2 13

% within whcich bank would you prefer

.0% 23.1% 38.5% 23.1% 15.4%100.0%

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% within age .0% 13.0% 10.2% 15.8% 28.6% 13.1% % of Total .0% 3.0% 5.1% 3.0% 2.0% 13.1%ING Count 0 3 3 5 1 12 % within which

bank would you prefer

.0% 25.0% 25.0% 41.7% 8.3%100.0%

% within age .0% 13.0% 6.1% 26.3% 14.3% 12.1% % of Total .0% 3.0% 3.0% 5.1% 1.0% 12.1%SBI Count 1 11 17 7 0 36 % within which

bank would you prefer

2.8% 30.6% 47.2% 19.4% .0%100.0%

% within age 100.0% 47.8% 34.7% 36.8% .0% 36.4% % of Total 1.0% 11.1% 17.2% 7.1% .0% 36.4%Count 1 23 49 19 7 99% within which bank would you prefer

1.0% 23.2% 49.5% 19.2% 7.1%100.0%

% within age100.0% 100.0% 100.0% 100.0% 100.0%

100.0%

% of Total1.0% 23.2% 49.5% 19.2% 7.1%

100.0%

Table 13.2

Age TotalUnder 18

between 18 to 25

between 25 to 35

between 35 to 50

between 50 to 75

Which bank would you prefer

ICICI 0 5 17 3 4 29IDBI 0 1 7 1 0 9ANDHRA

0 3 5 3 2 13

ING-VYSA

0 3 3 5 1 12

SBI 1 11 17 7 0 36Total 1 23 49 19 7 99

70

Figure 13.1

Which bank would you preferSBIING-VYSAANDHRAIDBIICICI

Co

un

t

20

15

10

5

0

Bar Chart

between 50 to 75between 35 to 50between 25 to 35between 18 to 25Under 18

Age

Yet a different way to analyze the competition of HDFC bank with the other competitors in the market. Through this question I wanted to see which is the other bank that the HDFC users prefer so that I could conclude a specific bank and tell the HDFC to use a particular strategy where it could over come its loop holes. And with a combined effect of age with this question we can figure out which target group to use which strategy to survive the competition. So in this case you can see out of a sample size of 101 SBI has a frequency of 36 with ICICI being second having a count of 29.

The spread of HDFC Bank in the corporate sector (private&public)This is the study of the various sectors tapped by HDFC bank in the city .All the sectors are broadly categorized into 5 categories below. The column chart would help us understand where and in which sector the bank is doing good.(Refer to the Excel in the Annexure).We even have a segregation of all the various products that the corporates hold with HDFC bank. A product wise bifurcation is shown in the excel sheet.(Refer to the Annexure) CSRM Products.xls

Table 13.3Category Number PercentagesTelecom 207 5.00%Financial Services 499 12.10%Central Government 1908 46.60%Pharmaceuticals 1024 25.00%Others 456 11.10%Total 4094 100.00%

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Figure 13.2

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Percentages

Telecom

Financial Services

Central Government

Pharmaceuticals

Others

The graph above shows us that the HDFC has been successful in spreading across all the central government sector. This tell us that this bank has been able to tap the important sector with a 46.60% with the pharmaceutical companies following the trend with a 25%

4.5 A comparative study among the emerging commercial banks. Indian banking sector: Is it on the right track? Performance indicators Commonly-used measures to asses the performance of the banking sector are: Return on Asset (ROA), Operating Profit Ratio (OPR), Net Interest Margin (NIM), Operating Cost Ratio (OCR) and Staff Expenditure Ratio (SER). The first-two are generally considered profitability measures, while the others, the efficiency indices.

Overall performance improvement A comparison of performance indices that the reform measures helped to improve the overall performance of industry. This is reflected in the improvement of all performance indicators barring the net interest margin. Interestingly, the ROA, treated as a proxy for risk-adjusted return, increased from (-) 0.28 percent in the pre-liberalization period to 0.79 percent (against more than 1 percent in other merging markets such as Singapore , Malaysia and Korea) post-liberalization ,indicating a significant rise in the ability of banks to convert their assets into net earnings. Another interesting aspect is that despite a marginal fall in the net interest margin from 2.84 to 2.73 ( which might be due to policy change) , the banking industry has managed to improve its OPR by increasing its non-interest fee-based income and reducing its operating costs/staff expenses. The evidence indicates that after the reform initiation period, the banks have increasingly been providing off balance sheet items such as derivatives, which generate major part of non-interest income. The proportion of operating cost/staff expenses has declined mainly due to computerization and the voluntary retirement scheme.Apart from the overall improvement across the board, another important criterion to evaluate the success story is to check whether the competitive force has led to any convergence in the performance of different ownership group’s in the post-liberalization period. Exposure to the competitive forces is often argued as a panacea to shake poorly performing banks out of their slumber. Although the public banks compared poorly with private banks during the initial

72

period,they made a significant improvement in the latter period by responding well to the new challenges of the competition and consolidation,mostly following a gradual and cautious approach. The pay off is well reflected in the increase in their ROA, OPR and NIM. Some possible reasons for the better performance of public banks could be

They still undertake most of the government borrowing programmers, thereby generating significant fee based income;

The market discipline imposed by the listing of most public sector banks has also probably contributed to this improved performance; and

The reform measures have changed their business strategies particularly greater diversification of non-fund based business and emergence of treasury and foreign exchange business.

The study reveals that the OPR across four ownership groups tend to converge. The NIM tends to converge across private and public sectors while the OCR continues to remain significantly different across ownership groups.

4.6 SWOT ANALYSISIn applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats of HDFC bank. Weaknesses should be looked at in order to convert them into strength. Like wised, threat should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of HDFC bank.

4.5.1 Strength: Low average loan to value ratio & debt averse nature of borrowers. Growth in urban market/ salaried class & Quality of underwriting. Strong Brand - customer base of over 2million. The bank has the power attorney of the client and executes on his/her behalf once

it gets written instructions from its clients. It offers custodial services which will include services such as receiving

dividend of shares and other entitlements such as buyback proposals. Customers don’t have to worry about tracking dividends of companies or

subscribing to buybacks. No threshold limit for offering its services. Cash of Rs. 100000 delivered at your doorstep Offers free Gold International Debit card, a free International Titanium card or a

free international Gold Credit card. It offers e-broking Free standing instructions available only in HDFC Bank. Avail of locker at just 50 % of the annual fee. Preferential pricing for loan against securities, home loans. As a preferred customer you are entitled to a waiver of up to Rs. 2000 per annum

on a host of service charges like Demand Draft/ Managers Cheque charges Inter-branch funds charges Stop payment charges Cheque return/collection charges DD cancellation charges

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Hold mail charges Duplicate statement charges Certificate of balance charges Recovery of old records charges FIRC charges

.4.5.2 Weakness:

Charges customers on the various services it offers. The bank does not charge any fixed fees, it earns commission on the products the

customer buys. Cash withdrawal limit up to Rs. 25000/day. Door step banking available only twice a month and only in metros. Does not provide 24 hours banking transactions by phone. Does not provide 365 days of banking transactions Not so focusing more on rural areas.

4.5.3 Opportunity Growth in demand-driven by improved affordability

Rising disposable income Affordable interest rates Generally stable property prices Fiscal incentives on both interest and principal repayments.

Increasing urbanization & Increased network of outlets. Can target to the small investors not only in urban areas but also to the rural area. Can Provide a zero balance savings account to the customers Can provide the interest on deposits as provided by the co-operatives Can trap the students segment by providing a very low AQB or Zero balance. HDFC Bank can have a professional savings account with the following benefits. Free registration in reputed consultancies. Easy personal loan, car loans, to the account holder.

A Dmat account free with every current & savings accounts (without any registration fee and stamp fee)

Free membership facility to the top rated club members in India.

4.5.4 Threats Competition from other banks is very high . Some banks provide 24 hour banking transaction over phone. Some banks provide transactions for 365 days. Less number of branches as compared to others. As third party cash deposits is not accepted there is a fear that HDFC bank may loose

some customers.

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5.Recommendations……

5. RECOMMENDATIONS More number of ATMs in the city . More aggressive sale is needed for professors, lecturers, and staff members who the

best customer of savings accounts. A Special students' savings account with AQB of fewer amounts could be launched Savings account for working professionals and self employed youths could be started with facilities like free registration in top business consultancies, job consultancies, hassle-free personal loans, free demat account and discounted membership in some reputed clubs.

Ensure the best after sale services by replacing the faulty ones immediately after getting complain.

A group promotional activity aiming, encouraging card holder to use their card to its fullest should be undertaken.

The timings of the bank to be extended from 8a.m to 8p.m. With every purchase, card holders be awarded with some credit points and on the end

of every quarter , special gifts should be given or discount offers on some items produced by some company can be given, which will be sponsored by the producer, the shopkeeper and the banker.

There should be no hidden charges and to be explained when demanded for.

5.1 LIM1TATIONS OF THE RESEARCH Survey was only conducted in Delhi Only 101 questionnaires were filled in different age and occupation groups due to

time constraint. Combining question 1 and 2 it becomes obvious that most people are satisfied about

the SB/CA /Sal A/C of HDFC. The interpretation doesn’t reveal the satisfaction of other products.

Since 70% of my sample are Sal A/C holders so its wrong to conclude that very few people use FD, Mutual Fund, Dmat.

Since my study did not include the income of the people I was not able to categorize the use of the product with the income group and study if any correlation existed.

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The SWOT analysis shows the competitive strategy of HDFC bank especially in widening its networks, continuous up gradation of technology (Fine wire by i-flex) for reduction in OCR and its specific geographical(Rural banking),demographical strategy will bring to serve as a best bank in India. The Competitor Analysis show that it has to focus more to increase its NIM. The percentage of net IPA and capital adequacy ratios are very good relative to its competitors. The survey throws light on various Issues that the customer faces in the market. Analyzing the findings it can be said that good customer relationship raises awareness among the people. There are tough competitions and thus there exists a lot of room to improve so as to become the market leader from all aspects. The only thing is the making of and implementation of the proper strategy in the best effective way. By understanding the steps of competitors before they were implemented is the way lead to the market. The HDFC Bank believes in adopting and adhering to the best corporate governance practices and continuously benchmarking itself against each such practices in the industry. The Bank understands and respects its fiduciary role and responsibility to shareholders and strives hard to meet their expectations. I believe that the best board practices. Transparent disclosures and shareholder empowerment are necessary for creating shareholder value. The cardinal principles such as independence, Accountability, responsibility, transparency ,fair and timely disclosures, credibility serve as the means for implementing the philosophy of corporate governance in letter and in spirit. The banks employees are very friendly among their coordinates and also to their customers.

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6.Conclusions….

7.1 References1) Beckett Antony, Hewer Paul, Howcroft Barry (2000) ,"An exposition

of consumer behavior in the financial services industry”.International Journal of Bank Marketing,Vol:18,Issue 1 pp 15-26.

2) Dick, A . Astrid(2008),"Demand estimation and consumer welfare in Banking Industry”,Journal of Banking and finance,Vol:32,Issue 8,pp 1161-1176

3) Mavri Maria, Ioannou George(2008), "Customer switching behaviour in banking services using survival analysis”,Jounal of Managerial Finance,Vol 34,Issue 3,pp186-197.4) Mukherjee Avinandan, Nath Prithwiraj(2003),"A model of trust in

online relationship banking”, International Journal of Bank Marketing,Vol 21,Issue 1,pp5-15.

5) Sohail M. Sadiq, Shaikh Nassar M. (2008),"Internet banking and quality of service: Perspectives from a developing nation in the Middle East,Jounal of online information review,Vol 32,Issue 1,pp 58-72

7.2 Bibliography Annual Report(2007) of HDFC Bank

A. Kotler Philip &Keller(2006)," Marketing Management”,11th edition.B. Malhotra Naresh (2006) "Markting Research”,4th edition.

D.Websites:- www.hdfc.com www.sbi.com www.google.com/www.googlescholar.com www.kotak.com

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7.References and Bibliography….