HDFC Competition Analysis-sukh

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Summer Project Certificate
This is to certify that Mr. / Ms. _____________________________ Roll No. _________ a student of PGDM has worked on a summer project titled ____________________________________________

__________________________________________________________ ____________ at ______________________ after Trimester !!! in partial fulfillment of the re"uirement for the Post Graduate Diploma in Mana#ement pro#ramme. This is his/her ori#inal work to the $est of my knowled#e. Date%___________
&i#nature ________________

'_________________________( Name of Faculty

)!MT*+, &*-.

ACKNOWLEDGEMENT
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The purpose of this project report is not whose name appears $ut to acknowled#e the /alue additions ant contri$utions. &uccess can ne/er $e achie/ed throu#h indi/idual effort $ut throu#h #uidance and teamwork. ! would like to take this opportunity to thank my industry #uide Mr. RACHIT SRIVASTAV !RANCH MANAGER "DWARKA# and my faculty #uide $rof R.%. MASILAMANI who helped me to complete this challen#in# task. ! would like to e0tend my #ratitude to Mr&. MANISHA VARMA $er&o'al !a'(er HDFC )a'( "D*ar(a# and MR. VIVEK $ATHAK $er&o'al !a'(er Aut+or,-er HDFC )a'( "D*ar(a# who went out of their way to #uide me throu#hout my project and #a/e /aried insi#hts. ! am #rateful to MR. SH.!HANKAR !OSE !RANCH MANAGER "ANAND NIKETAN# for his constant interest1 in/ol/ement and support. )esides1 ! thank all those in/isi$le hands without whose contri$ution this project would not ha/e $een possi$le. ! would like to thank all the concerned e0ecuti/es and staff mem$ers of HDFC )a'( and other $ank staff mem$ers who acted as a constant support for me and also helped $y pro/idin# /alua$le insi#hts. ! would like to e0press my #ratitude towards my parents for their moral and financial support in completion of this project. .ast $ut not least ! would like to thank my collea#ues and friends for their /alua$le support durin# my summer internship.

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TA!LE OF CONTENTS
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E/EC.TIVE S.MMAR0111111111111111111111111111111 2 INTROD.CTION111111111111111111111111111.3 COM$AN0 OVERVIEW...11111111111111111111111..4 O!%ECTIVE OF THE ST.D0111111111111111111111..56 HDFC !ANK $ROD.CT $ORTFOLIO11111111111111111..54 STRATEGIES OF HDFC !ANK 111111.11111111111111.78 RETAIL !ANKING9 ANAL0SIS11111111111111111111.:; HDFC !ANK RETAIL $ROD.CTS1111111111111111111:6 COM$ETATIVE ANAL0SIS111111111111111111111...;< SERVICE MARKETING9SERV=.AL MODEL ON HDFC !ANK11111..66 ANAL0SIS > RECOMMENDATIONS11111111111111111..83 REFERENCES

E/EC.TIVE S.MMAR0
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The pace of de/elopment for the !ndian $ankin# industry has $een tremendous o/er the past decade. -s the world reels from the #lo$al financial meltdown1 !ndia2s $ankin# sector has $een one of the /ery few to actually maintain resilience while continuin# to pro/ide #rowth opportunities1 a feat unlikely to $e matched $y de/eloped markets around the world. Transition from class $ankin# to mass $ankin# and increased customer focus is drastically chan#in# the landscape of !ndian $ankin#. *0pansion of retail $ankin# has a lot of potential as retail assets are just 334 of the total $ankin# assets and the contri$ution of retail loans to GDP is a mere 54 in !ndia compared to 674 in +hina. This report discusses the retail products a/aila$le with ,D8+ $ank and compares them with the products of competitor $anks. This paper descri$es work undertaken to determine $oth retail customer and staff perceptions of those factors which determine ser/ice "uality. The paper presents some conclusions of si#nificance for retail

$ankin# in particular1 and ser/ice pro/iders in #eneral. !t pro/ides a useful comparison of different $anks with its key competitors i.e. !+!+! $ank1 -9!& $ank1 :;T-: M-,!NDR$ank and P<N=-) N-T!;N-. $ank and presents the attri$utes of ser/ice marketin# with the help of &*R>?<-. model. !t outlines the implementation of the &*R>?<-. model in the $ank2s su$se"uent "uality impro/ement pro#ramme1 as e/idenced throu#h the $ank2s customer satisfaction endea/ors and also what information ! recei/e throu#h customer interaction and $y interaction in different $anks. @ith time it has emer#ed consistently in the recent ser/ices marketin# literature is the importance of frontline employees in ser/ice deli/ery. The internal marketin# concept is $ased on the $elief that a firm2s internal market/employees can $e moti/ated to stri/e for customer consciousness1 market orientation and sales mindedness throu#h the application of accepted e0ternal marketin# approaches and principles. This project considers that the o$jecti/es of the firm could $e achie/ed $y ali#nin# them with the /alues to frontline
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employees as well as with the customers. The information was #ained after continuous interaction from the customers and the different $anks and analyAin# their culture. .

INTROD.CTION
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I'tro?uct,o' to )a'(,'@ C+a'@,'@ face of )a'(,'@ a& a &erA,ce ,'?u&try
)ankin# in !ndia has chan#ed with time1 it has seen a re/olution and it has $een #rowin#. !ndia has e0perienced tremendous reform in financial and $ankin# sector. The jump of economy from the manufacturer industry1 which used to $e the most re/enue #eneratin# industry1 to the ser/ice industry has seen the makeo/er of the $ankin# sector. The $ankin# sector is one of the lar#est ser/ice pro/idin# sectors in !ndia. These ser/ices are of utmost importance to the customers as it takes care of their financial needs1 in fact e/en maintain them. Now this concept of $anks as the ser/ice pro/ider has underwent transformation as the concept of ser/ices is #rowin# and has $ecome more and more comple0. !n !ndia the $ankin# sector is se#re#ated as pu$lic or pri/ate sector $anks1 cooperati/e $anks and re#ional rural $anks. 8orei#n $anks ha/e $een #i/en a different head followed $y upcomin# forei#n $anks in this section. Due to this the customers demand has seen a major rise. These chan#es has #i/en rise to the need of the $ankin# industry to analysis their competition and to ha/e a defined marketin# strate#y 1 to $ecome the leader in pro/idin# the $ou"uet of ser/ices at customers end as well as #i/in# them the $est financial ad/ice. The !ndian $ankin# industry with time has achie/ed an astonishin# and tremendous #rowth rate. @hen asked from $ank e0ecuti/es or rather the e0pert in the field1 the re/enue from the $anks has $een #rowin# and has recorded positi/e results for the year 3BBC 6B. -ccordin# to them the #rowth must ha/e $een around 67 3B4 and is e0pected to #row more than 3B4 in the upcomin# years.

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8i#ure Projected #rowth rate for $anks

Ne* aBBroac+
The de/elopment of technolo#y has led to a more con/enient retail $ankin# system. -TM1 Mo$ile $ankin#1 &M& $ankin# and most popular these days net $ankin# facilities are a/aila$le to and $ein# increasin#ly a/ailed of $y customers. @ith more persons open to the concept of easy $ankin#1 all the leadin# $anks ha/e started strate#iAin# on the concept of con/enient $ankin# lookin# at the fast #rowin# needs of the customers. Now the $anks are stri/in# to achie/e this $y ha/in# a cost effecti/e approach1 which means that to achie/e ma0imum of profit $ut with minimum of cost. The $anks now ha/e such a close competiti/e an#le in almost all of its products and ser/ices within the $ankin# area that it has $ecome difficult for the customers to distin#uish $etween them. - pro#ressi/ely #rowin# $alance sheet1 hi#her pace of credit e0pansion1 e0pandin# profita$ility and producti/ity akin to $anks in de/eloped markets1 lower incidence of nonperformin# assets and focus on financial inclusion ha/e contri$uted to makin# !ndian $ankin# /i$rant and stron#. !ndian $anks ha/e $e#un to re/ise their #rowth approach and re e/aluate the prospects on hand to keep the economy rollin#. The way forward for the !ndian $anks is to inno/ate to take ad/anta#e of the new $usiness opportunities and at the same time ensure continuous assessment of risks.
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Glo)al l,'(a@e
;ur country with time has seen many colla$orations in this sector with forei#n $anks takin# lar#e stakes in !ndian $anks. This has widened the horiAons for $ankin# ser/ices considera$ly and ena$led operations on a much hi#her scale to meet the #rowin# demands of customers. &ome of the forei#n $anks operatin# successfully in !ndia are -)N -MR;1 +iti )ank1 Deutsche )ank1 ,&)+1 &tandard +hartered )ank and etc. The !ndian $anks ha/e now $ecome focused on $ein# customer centric and the future challen#e in front of them is to $ecome a #lo$al $rand e0ample $y pro/idin# an e0hilaratin# e0perience to the customers in the ser/ice industry without compromisin# on the profit. 8or this the $anks need to ha/e a competition analysis of their competiti/e $anks and $y $ein# a$le to de/elop uni"ue marketin# strate#y for penetratin# within the market.

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HDFC !ANKC comBa'y oAerA,e*
A)out HDFC
,D8+ $ank was amon# the few pri/ate $anks to ha/e started their operations in 6CCD after the #o/ernment of !ndia allowed new pri/ate $anks to emer#e in !ndian $ankin# sector. ,ousin# de/elopment and 8inance +orporation of !ndia has $een credited with $ein# one of the $est financial $ank in !ndia with the track record of #i/in# the $est financial ad/ice to its customers and offerin# the $est products and ser/ices in $ankin# area. Due to its impecca$le ser/ice offered to the customer as per their demand and con/enience1 ,D8+ $ank has $ecome one of the leadin# $anks in !ndia offerin# customer ser/ice. !n fact customers credit it for $ein# one of the finest in customer ser/ice leadin# to easy and con/enient $ankin#. @ith its e0perience in the financial markets1 a stron# market reputation1 lar#e shareholder $ase and uni"ue consumer franchise1 ,D8+ has positioned itself as $ein# the $ank that cares for the customers. ,D8+ )ank pro/ides a /ariety of wholesale1 retail1 and depository financial ser/ices throu#h more than 61DBB $ranches and some E1BBB -TMs throu#hout !ndia. *sta$lished $y the ,ousin# De/elopment 8inance +orporation in 6CCD1 the $ank offers deposit accounts1 loans1 credit cards1 insurance1 in/estments1 and related ser/ices. ,D8+ )ank tar#ets indi/idual customers in the middle and upper class1 as well as trusts1 small $usinesses.

ComBa'y Brof,le
,D8+ $ank is a leadin# pri/ate sector $ank and financial ser/ices company in !ndia. The $ank aspires to $e the preferred pro/ider of financial ser/ices to upper and middle income indi/iduals and leadin# corporations in !ndia. The strate#y of the $ank o/er the years ha/e $een to pro/ide a comprehensi/e ran#e of financial products and ser/ices for the customers throu#h multiple distri$ution channels1 with hi#h "uality ser/ice and superior e0ecution of the ser/ices offered. The $ank principally deals into mainly three $usiness acti/ities which can $e cate#oriAed as% retail $ankin#1 wholesale $ankin# and treasury operations. The $ank has achie/ed tremendous #rowth since it started its operations in =anuary 6CC7. ;/er the last fi/e years it has e0panded operations from 3E6 $ranches and FE3 -TMs in 633 cities to 61D63 $ranches and 31GCB -TMs in 73F cities in !ndia as on Decem$er E61 3BBG. -dditionally
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the )ank has a $ranch in )ahrain and representati/e offices in the <.-.* and :enya. Durin# the fi/e years1 $ankHs customer $ase #rew from E.DB million customers to o/er 6F million customers. -s with time the ,D8+ $ank e0panded its #eo#raphical reach and market penetration1 with this the $ank2s assets also increased1 and it #rew from Rs. EB1D3D crore as of March E61 3BBE to Rs. 6GE16G7 crore as of Decem$er E61 3BBG. The net income also recorded an increase from Rs. EGG crore for the fiscal year 3BBE to Rs. 617CB crore for the fiscal year 3BBG at a compounded annual #rowth rate of E3.5B4. Notwithstandin# the pace of #rowth1 the $ank has maintained a stron# $alance sheet and a low cost of funds. -s of Decem$er E61 3BBG net non performin# assets constituted B.54 of net ad/ances. The a/era#e non interest $earin# current accounts and low interest sa/in#s accounts represented 76.FB4 of total deposits for fiscal 3BBG. These low cost deposits1 which include the cash float associated with $ank2s transactional ser/ices1 led to an a/era#e cost of funds includin# e"uity for fiscal 3BBG of D.6B4. ,D8+ $ank is a part of the ,D8+ #roup of companies founded $y our principal shareholder1 ,ousin# De/elopment 8inance +orporation .imited 'I,D8+ .imitedJ(1 which is a pu$lic limited company esta$lished under the laws of !ndia. ,D8+ .imited and its su$sidiaries owned 6C.EG4 of $ank2s outstandin# e"uity shares as of 8e$ruary B51 3BBC. The )ank has two su$sidiaries% ,D8+ &ecurities .imited 'I,&.J( and ,D) 8inancial &er/ices .imited 'I,D)8&J(. ,&. is primarily in the $usiness of pro/idin# $rokera#e ser/ices throu#h the internet and other channels. ,D)8& is a non deposit takin# non $ank finance company 'IN)8+J(1 for the esta$lishment of which the )ank recei/ed Reser/e )ank of !ndia 'IR)!J( appro/al durin# the fiscal year 3BBG.

,D8+ $ank is a commercial $ank of !ndia1 promoted $y the housin# de/elopment finance corporation1 a premier housin# finance company of !ndia. The company head"uarters are situated in Mum$ai and has around all the $ranches in 73G cities which are all linked on an online real time $asis. ,D8+ $ank is a type of pu$lic company and was founded $y Mr. Deepak Parekh. The $ank has appro0imately total assets of !NR 6BB5.G3 $illion. 8or the fiscal year 3BBG BC1 the $ank has reported net profit of Rs.31 3DD.C crore1 up D64 from the pre/ious fiscal. Total annual earnin#s of the $ank increased $y 7G4 reachin# at Rs.6C1 533.G crore in 3BBG BC.
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The chairman of ,D8+ is Mr. =a#dish capoor and Mr. -ditya Puri ser/es as the company mana#in# director. They ha/e $een responsi$le for makin# the company people2s company with their efforts. The company re/enue in 3BBC Rs. 6CF.7 $illion and its profit has $een Rs. 3.3D $illion. The company now has total assets of Rs. 6.G trillion and has 7315GF employees currently workin# with ,D8+. The $ank has a$out 7FB1BBB shareholders. The shares are listed on the &tock *0chan#e1 Mum$ai and the National &tock *0chan#e. The $ankKs -merican Depository &hares are listed on the New Lork &tock *0chan#e 'NL&*( under the sym$ol K,D)K.

AcDu,&,t,o'& a'? Mer@er&
!n a milestone transaction in the !ndian $ankin# industry1 Times )ank .imited 'promoted $y )ennett1 +oleman M +o. / Times Group( was mer#ed with ,D8+ )ank .td.1 in 3BBB. This was the first mer#er of two pri/ate $anks in !ndia. -s per the scheme of amal#amation appro/ed $y the shareholders of $oth $anks and the Reser/e )ank of !ndia1 shareholders of Times )ank recei/ed 6 share of ,D8+ )ank for e/ery 7.F7 shares of Times )ank. !n 3BBG ,D8+ )ank ac"uired +enturion )ank of Punja$ takin# its total $ranches to more than 61BBB. The amal#amated $ank emer#ed with a stron# deposit $ase of around Rs. 61 331BBB crore and net ad/ances of around Rs. GC1BBB crore. The $alance sheet siAe of the com$ined entity is o/er Rs. 61 5E1BBB crore. The amal#amation added si#nificant /alue to ,D8+ )ank in terms of increased $ranch network1 #eo#raphic reach1 and customer $ase1 and a $i##er pool of skilled manpower. The mer#ers can $e termed as a "uest for #rowth in the !ndian $ankin# en/ironment.

!oar? comm,ttee&
The )oard has constituted committees of Directors to take informed decisions in the $est interest of the )ank. These committees monitor the acti/ities fallin# within their terms of reference. >arious committees of the )oard were reconstituted durin# the year due to induction of additional Director namelyN Mr. Pandit Palande. The )oardKs +ommittees are as follows% The )oardKs +ommittees are as follows% -udit and +ompliance +ommittee +ompensation +ommittee
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!n/estorsK Grie/ance '&,-R*( +ommittee Risk Monitorin# +ommittee +redit -ppro/al +ommittee The Premises +ommittee Nomination +ommittee 8raud Monitorin# +ommittee

ComBe'&at,o' Comm,ttee
The +ompensation +ommittee re/iews the o/erall compensation structure and policies of the )ank with a /iew to attract1 retain and moti/ate employees1 consider #rant of stock options to employees1 re/iewin# compensation le/els of the )ankKs employees /is O /is other $anks and industry in #eneral. The )ankKs compensation policy is to pro/ide a fair and consistent $asis for moti/atin# and rewardin# employees appropriately accordin# to their jo$ / role siAe1 performance1 contri$ution1 skill and competence. The +ommittee met E 'three( times durin# the year.

T+e $rem,&e& Comm,ttee
The Premises +ommittee appro/es purchases and leasin# of premises for the use of )ankKs $ranches1 $ack offices1 -TMs and residence of e0ecuti/es in accordance with the #uidelines laid down $y the )oard. The +ommittee is chaired $y Mrs. Renu :arnad. The +ommittee met D 'four( times durin# the year.

Frau? Mo',tor,'@ Comm,ttee
Pursuant to the directions of the Reser/e )ank of !ndia1 the )ank has constituted a 8raud Monitorin# +ommittee1 e0clusi/ely dedicated to the monitorin# and followin# up of cases of fraud amountin# to Rs.6 crore and a$o/e. The o$jecti/e of this +ommittee is the effecti/e detection of frauds and immediate reportin# thereof to re#ulatory and enforcement a#encies and actions taken a#ainst the perpetrators of frauds.
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Cu&tomer SerA,ce Comm,ttee
+ommittee monitors the "uality of ser/ices rendered to the customers and also ensures implementation of directi/es recei/ed from R)! in this re#ard. The terms of reference of the +ommittee are to formulate comprehensi/e deposit policy incorporatin# the issues arisin# out of death of a depositor for operations of his account1 the product appro/al process1 and the annual sur/ey of depositor satisfaction and the triennial audit of such ser/ices. The +ommittee met D 'four( times durin# the year.

CorBorate @oAer'a'ce
,D8+ )ank reco#niAes the importance of #ood corporate #o/ernance1 which is #enerally accepted as a key factor in attainin# fairness for all stakeholders and achie/in# or#aniAational efficiency. This +orporate Go/ernance Policy1 therefore1 is esta$lished to pro/ide a direction and framework for mana#in# and monitorin# the $ank in accordance with the principles of #ood corporate #o/ernance.

Co?e of corBorate @oAer'a'ce
The )ank $elie/es in adoptin# and adherin# to $est reco#niAed corporate #o/ernance practices and continuously $enchmarkin# itself a#ainst each such practice. The )ank understands and respects its fiduciary role and responsi$ility to shareholders and stri/es hard to meet their e0pectations. The )ank $elie/es that $est $oard practices1 transparent disclosures and shareholder empowerment are necessary for creatin# shareholder /alue. The )ank has infused the philosophy of corporate #o/ernance into all its acti/ities. The philosophy on corporate #o/ernance is an important tool for shareholder protection and ma0imiAation of their lon# term /alues. The cardinal principles such as independence1 accounta$ility1 responsi$ility1 transparency1 fair and timely disclosures1 credi$ility etc. ser/e as the means for implementin# the philosophy of corporate #o/ernance in letter and spirit.

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$ro@re&&
The )ank2s staffin# needs continued to increase durin# the year particularly in the retail $ankin# $usinesses in line with the $usiness #rowth. Total num$er of employees increased from 6DGFG as of MarchE61 3BB5 to 36DFF as of March E61 3BBF. The )ank continues to focus on trainin# its employees on a continuin# $asis1 $oth on the jo$ and throu#h trainin# pro#rams conducted $y internal and e0ternal faculty. The )ank has consistently $elie/ed that $roader employee ownership of its shares has a positi/e impact on its performance and employee moti/ation. The )ank2s employee stock option scheme so far co/ers around CBBB employees. ,D8+ )ank has demonstrated /ery consistent deli/ery of performance o/er the last so many years and has already notched up its place as the one of the lar#est pri/ate sector $ank in the country and the #rowth momentum is e0pected to continue. The $ank has stepped up to retail customer ac"uisition with deposit accounts increasin# from 5.3 million to G.F million and total cards issued 'de$it and credit cards( increasin# from F million to C.3 million 'appro0(. Not only the retail $ankin# of ,D8+ is $loomin# day $y day $ut its ser/ices offered in wholesale $ankin# has also #i/en tremendous #rowth to the $ank. The online $ankin# system i.e. net $ankin# has $een an eye attraction for the customers as it #i/es them fast and con/enient $ankin#. -s already mentioned a$out its #rowin# distri$ution network the $ank is continually plannin# for e0pansion of the $ranches of the $ank. +ustomers are efficiently ser/iced throu#h telephone $ankin# also. The )ankKs e0pansion plans take into account the need to ha/e a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to $uild a stron# retail customer $ase for $oth deposits and loan products. )ein# a clearin#/settlement $ank to /arious leadin# stock e0chan#es1 the )ank has $ranches in the centers where the N&*/)&* has a stron# and acti/e mem$er $ase. @ith the e0cellent distri$ution network ,D8+ aspires to ha/e as stron# position in the market and with the customers. ,D8+ $ank has always aspired to $ecome a world class $ank and has $een tryin# to adopt an efficient and effecti/e approach to understand the e/er chan#in# customer demands and to offer them superior ser/ice. ,D8+ thus has $een marketin# itself with the ta#line sayin# Iwe understand your worldJ.

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Now if one o$ser/es the re/enue earned $y ,D8+ durin# last year than it can $e said that re/enue #rowth was dri/en principally $y an increase in net income. The other income 'non interest re/enue( increased primarily due to fees and commissions , profit/ 'loss( on re/aluation / sale of in/estment and income from forei#n e0chan#e and deri/ates income. ;peratin# 'non interest( e0penses increased due to hi#her infrastructure and staffin# e0penses in relation to the e0pansion in the $ranch network1 and #rowth in the retail loan and credit card $usinesses.

net revenue breakdown FY09
treasury and other operating income 4% forex income 9%

fee income 18%

net income 69%

8i#ure ,D8+ $ank re/enue $reakdown

A*ar?& a'? ac+,eAeme't&
,D8+ has earned se/eral awards for its #rowth and pro#ressi/e ser/ices offered to the customers. - few are listed $elow% • +orporate $est $ank award P Dun and )radstreet P-merican *0press corporate $est $ank award 3BBF • • )est )ank -ward in the pri/ate sector cate#ory outlook money and NDT> profit )est Retail )ank in !ndia P The -sian $anker e0cellence in retail financial ser/ices awards.
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• •

*uromoney -wards 3BBC K)est )ank in !ndiaK *conomic Times )rand *"uity M Nielsen Research annual sur/ey 3BBC Most Trusted )rand Runner <p

• • •

-sia Money 3BBC -wards K)est Domestic )ank in !ndiaK !)- )ankin# Technolo#y -wards 3BBC K)est !T Go/ernance -ward Runner upK Glo$al 8inance -ward K)est Trade 8inance )ank in !ndia for 3BBC

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O!%ECTIVE OF THE ST.D0
The o$jecti/e of this study is to study the products a/aila$le with ,D8+ $ank in the retail cate#ory and to understand and analyAe the marketin#. -nother o$jecti/e is to compare them with products pro/ided $y other $anks in the retail cate#ory. The $anks chosen for competiti/e analysis are P !+!+! $ank -9!& $ank :;T-: M-,!NDR- $ank P<N=-) N-T!;N-. $ank The study also aims to understand how ,D8+ $ank works in the ser/ice marketin# $y usin# the ser/"ual model. The study will help to understand the followin# o$jecti/es% • !t will also help to understand and analyAe the dimensions of the awareness and satisfaction le/el of customers with re#ard to the ser/ices pro/ided $y the selected $ranches of the major $ankin# customers. • The study will help to identify and differentiate the $est $ankin# sector amon# the a$o/e $anks in terms of customer satisfaction1 • To ascertain the rele/ant dimensions of ser/ice "uality in $anks1 and1

•

To offer su##estions1 if needed1 $ased on the analytical results of the current study.
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,ence1 the study seeks to de/elop a common understandin# of ser/ice "uality in the $ankin# industry across different customer se#ments. The models of marketin# like ser/"ual model ha/e $een used to analyAe ser/ices of ,D8+ and strate#ic marketin# of ,D8+ $ank. !t helps ,D8+ $ank to maintain a competiti/e ed#e. The data was collected throu#h two sources which help me understand the workin# of ,D8+ $ank and also make analysis for the project. The data was collected throu#h followin# ways% &econdary sources &econdary data pro/ide a startin# point for study and offer the /alua$le source of information. The secondary data was the most important source for my project $ecause it helped in collectin# desired information Primary sources Primary data are data freshly #athered for a specific purpose. The /arious sources of primary data for my project are as follows.  )anks.  +ustomers of different $anks  People from industries

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HDFC !ANK $ROD.CT $ORTFOLIO
$ro?uct& a'? &erA,ce& at a @la'ce
,D8+ )ank mainly pro/ides three kinds of $ankin# ser/ices%
• • •

Personal )ankin# NR! )ankin# @holesale )ankin#

#$% an!ing 17%

"holesale an!ing 28%

personal an!ing 55%

8i#ure product $reakup accordin# to the customer preferences !f the customer needs to deal in forei#n currency and keep ta$s on e0chan#e rates1 transfer funds to !ndia1 make payments etc1 ,D8+ )ank has a ran#e of products and ser/ices that a customer

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can choose from to transact smoothly1 efficiently and in a timely manner. ,D8+ )ank offers "uick1 economical and con/enient options to remit and transfer funds to !ndia. @ith ,D8+ )ank2s payment ser/ices1 one can $id #ood$ye to "ueues and paper work. ,D8+2s ran#e of payment options make it easy to pay for a /ariety of utilities and ser/ices. )ank offers Pri/ate )ankin# ser/ices to hi#h net worth indi/iduals and institutions.

+orporate )ankin# reflects ,D8+ )ank2s stren#ths in pro/idin# corporate clients1 a wide array of commercial1 transactional and electronic $ankin# products. ,D8+ )ank acts as an acti/e medium $etween the #o/ernment and the customers $y means of /arious ser/ices. ,D8+ deals with $asically three areas which can $e se#mented as% • • • @holesale $ankin# ser/ices Retail $ankin# ser/ices Treasury

!t has entered the $ankin# consortia of o/er 7B corporate for pro/idin# workin# capital finance1 trade ser/ices1 corporate finance and merchant $ankin#. !t is also pro/idin# sophisticated product structures in areas of forei#n e0chan#e and deri/ati/es1 money markets and de$t tradin# and e"uity research.

W+ole&ale !a'(,'@ SerA,ce&
The )ankKs tar#et market ran#es from lar#e1 $lue chip manufacturin# companies in the !ndian corporate to small M mid siAed corporate and a#ri $ased $usinesses. 8or these customers1 the )ank pro/ides a wide ran#e of commercial and transactional $ankin# ser/ices1 includin#
21

workin# capital finance1 trade ser/ices1 transactional ser/ices1 cash mana#ement1 etc. The $ank is also a leadin# pro/ider of structured solutions1 which com$ine cash mana#ement ser/ices with /endor and distri$utor finance for facilitatin# superior supply chain mana#ement for its corporate customers. ,D8+ )ank has made si#nificant inroads into the $ankin# consortia of a num$er of leadin# !ndian corporate includin# multinationals1 companies from the domestic $usiness houses and prime pu$lic sector companies. !t is reco#niAed as a leadin# pro/ider of cash mana#ement and transactional $ankin# solutions to corporate customers1 mutual funds1 stock e0chan#e mem$ers and $anks.

Reta,l !a'(,'@ SerA,ce&
The o$jecti/e of the Retail )ank is to pro/ide its tar#et market customers a full ran#e of financial products and $ankin# ser/ices1 #i/in# the customer a one stop window for all his/her $ankin# re"uirements. The products are $acked $y world class ser/ice and deli/ered to customers throu#h the #rowin# $ranch network1 as well as throu#h alternati/e deli/ery channels like -TMs1 Phone )ankin#1 Net )ankin# and Mo$ile )ankin#. ,D8+ )ank was the first $ank in !ndia to launch an !nternational De$it +ard in association with >!&- '>!&- *lectron( and issues the Master+ard Maestro de$it card as well. The )ank launched its credit card $usiness in late 3BB6. )y March 3BBC1 the $ank had a total card $ase 'de$it and credit cards( of o/er 6E million. The )ank is also one of the leadin# players in the Imerchant ac"uirin#J $usiness with o/er FB1BBB Point of sale 'P;&( terminals for de$it / credit cards acceptance at merchant esta$lishments. The )ank is well positioned as a leader in /arious net $ased )3+ opportunities includin# a wide ran#e of internet $ankin# ser/ices for 8i0ed Deposits1 .oans1 )ill Payments1 etc.

Trea&ury
@ithin this $usiness1 the $ank has three main product areas 8orei#n *0chan#e and Deri/ati/es1 .ocal +urrency Money Market M De$t &ecurities1 and *"uities. These ser/ices are pro/ided throu#h the $ankKs Treasury team. To comply with statutory reser/e re"uirements1 the $ank is
22

re"uired to hold 374 of its deposits in #o/ernment securities. The Treasury $usiness is responsi$le for mana#in# the returns and market risk on this in/estment portfolio.

$ERSONAL !ANKING
SaA,'@& accou't Curre't accou't F,Ee? ?eBo&,t& Loa'& I'Ae&tme't& > I'&ura'ce Car?&

Re#ular &a/in#s -ccount

Plus current account

Re#ular

Personal

Mutual 8unds !nsurance

&il/er +redit +ard

fi0ed deposit .oans

&a/in#s Plus -ccount

Trade current account

7 year Ta0 sa/in#s fi0ed deposits

Two @heeler .oans

)onds

Gold +redit +ard

&a/in#sMa0 -ccount

Premium current account

&uper sa/er facility

New +ar .oan

8inancial Plannin#

@omanKs Gold +redit +ard

&enior +itiAens -ccount

Re#ular current account

&weep in facility

<sed +ar .oans

*"uities M Deri/ati/es

Platinum plus +redit +ard

23

No 8rills -ccount

R8+ domestic account

;/erdraft a#ainst +ar

Mudra Gold )ar

Titanium +redit +ard

!nstitutional &a/in#s -ccount

8le0i current account

*0press .oans

>alue plus +redit +ard

Payroll &alary -ccount

-pe0 current account

.oan a#ainst &ecurities

,ealth plus +redit +ard

+lassic &alary -ccount

Ma0 current account

.oan a#ainst Property

,D8+ )ank !dea &il/er +ard

Re#ular &alary Merchant -ccount ad/anta#e current account Premium &alary -ccount Merchant ad/anta#e plus current account Defense &alary -ccount Recurrin# deposits

+ommercial >ehicle 8inance

,D8+ )ank !dea Gold +ard

+onstruction *"uipment 8inance

De$it +ards

@orkin# +apital 8inance

*asy &hop!nternational De$it +ard

:idKs

Demat
24

*asy &hop Gold

-d/anta#e -ccount Pension &a/in# )ank -ccount

account

De$it +ard

&afe deposits lockers

*asy &hop!nternational )usiness De$it +ard

8amily &a/in#s -ccount

*asy &hop @oman2s -d/anta#e De$it +ard

:isan No 8rills &a/in#s -ccount :isan +lu$ &a/in#s -ccount

Prepaid +ards

8ore0 plus card

:isan card

25

WHOLESALE !ANKING AND OTHER SERVICES
CorBorate )a'(,'@ Small a'? me?,um e'terBr,&e& 8unded &er/ices 8unded &er/ices F,'a'c,al ,'&t,tut,o' tru&t& a'? )a'( +learin# &u$ Mem$ership RTG& P su$ mem$ership 8und Transfer -TM Tie ups +orporate &alary a/c Ta0 +ollection Non 8unded &er/ices Non funded ser/ices Mutual funds Tra/elers2 +he"ues -ccounts M Deposits Remittances Trade 8inance -ccounts M Deposits QRupee &a/in# a/c QRupee +urrent a/c QRupee 8i0ed Deposits Q8orei#n +urrency Deposits Q-ccounts for Returnin# !ndians FORE/ SerA,ce& NRI SerA,ce&

>alue added ser/ices

&pecialiAed ser/ices

&tock $rokers

8orei#n +urrency +ash

;ther ser/ices like Pri/ate )ankin# Portfolio !n/estment &cheme home .oans .oans -#ainst &ecurities .oans -#ainst Deposits Gold +redit +ard Payment &er/ices -ccess

26

To )ank Net&afe )illPay !nstaPay DirectPay >isa Money ;nline Donation Net )ankin# ;ne >iew !nsta-lert -TM Phone )ankin# *mail &tatements )ranch Network

!nternet $ankin#

!nternet $ankin#

8orei#n +urrency Drafts

8orei#n +urrency +he"ue Deposits

8orei#n +urrency Remittances 8ore0Plus
27

+ard

STRATEGIES OF HDFC !ANK
28

OBerat,o'al &trate@y
,D8+ $ank has $een a consistent player in the $ankin# industry and has always $een tryin# to produce the well $alanced and ri#ht mi0 of products and ser/ices for $oth of its customers in retail $ase and corporate $ase. ,D8+ $ank operates in a hi#hly automated en/ironment in terms of information technolo#y and communication systems. -ll the $ankKs $ranches ha/e online connecti/ity1 which ena$les the $ank to offer speedy funds transfer facilities to its customers. Multi $ranch access is also pro/ided to retail customers throu#h the $ranch network and -utomated Teller Machines '-TMs(. The )ank has made su$stantial efforts and in/estments in ac"uirin# the $est technolo#y a/aila$le internationally1 to $uild the infrastructure for a world class $ank. The )ankKs $usiness is supported $y scala$le and ro$ust systems which ensure that the clients always #et the finest ser/ices $ank offer. The )ank has prioritiAed its en#a#ement in technolo#y and the internet as one of its key #oals and has already made si#nificant pro#ress in we$ ena$lin# its core $usinesses. !n each of its $usinesses1 the )ank has succeeded in le/era#in# its market position1 e0pertise and technolo#y to create a competiti/e ad/anta#e and $uild market share. !n the era of #lo$aliAation each and e/ery sector faced the stiff competition from their ri/als. -nd world also con/erted into the flat from the #lo$e. Pri/ate sector $anks today used the latest technolo#y for the different transaction of day to day $ankin# life. -s we know that !nformation Technolo#y plays the /ital role in the each and e/ery industries and #i/es the optimum return from the limited resources. )anks are ser/ice industries and today !T #i/es the inno/ati/e Technolo#y application to )ankin# industries. ,D8+ $ank is the leader in the industries and today !T and ,D8+ $ank to#ether com$ined they reached the sky. New technolo#y chan#ed the mind of the customers and chan#ed the "ueue concept from the history $ankin# transaction. Today there are different channels which are a/aila$le for the $ankin# transactions.

29

There are drastically chan#es seen in the use of !nternet $ankin#1 in a year 3BB6 '34( and in the year 3BBG '374(. This type of technolo#y #i/es the freedom to retail customers. New and impro/ed technolo#y results in the ad/anta#eous functionin# of the $ank smoothly and efficiently. ,D8+ )-N: is the /ery consistent player in the new pri/ate sector $anks. New pri/ate sector $anks to withstand the competition from pu$lic sector $anks came up with inno/ati/e products and superior ser/ice. +ustomer se#ments 'retail M wholesale( account for GD4 of Net re/enue '8L 3BBC( .,i#her retail re/enues partly offset $y hi#her operatin# and credit costs. ,D8+ has tried to e"ually well position itself to #row $oth se#ments.

ComBet,t,Ae Stre'@t+&
The $ank attri$utes its #rowth and continuin# success to the followin# competiti/e stren#ths% a( HDFC )a'( ,& a lea?er amo'@ I'?,a' )a'(& ,' t+e u&e of tec+'olo@y &ince the $ank2s inception1 it has made su$stantial in/estments in technolo#y platform and systems. )ank has $uilt multiple distri$ution channels1 includin# an electronically linked $ranch network1 automated telephone $ankin#1 !nternet $ankin# and $ankin# $y mo$ile phone1 to offer customers con/enient access to our products. Technolo#y platform has dri/en the de/elopment of inno/ati/e products and reduced operatin# costs. $( HDFC )a'( ?el,Aer& +,@+ Dual,ty &erA,ce *,t+ &uBer,or eEecut,o' )ank tries to deli/er efficient ser/ice with rapid response time. )ank2s focus on personaliAed ser/ice tries to draws customers to the products and increases e0istin# customer loyalty. c( HDFC offer a *,?e ra'@e of Bro?uct& @hether in retail or wholesale $ankin#1 the $ank tries to $e a Ione stop shopJ for the +ustomers2 $ankin# needs. The wide ran#e of products creates multiple cross sellin# opportunities for $ank and impro/es customer retention rates.

30

d( HDFC cla,m& to +aAe a' eEBer,e'ce? ma'a@eme't team -ccordin# to ,D8+1 many of the mem$ers of senior mana#ement team who ha/e $een with the $ankN since inception seem to ha/e su$stantial e0perience in multinational $ankin#.

!u&,'e&& &trate@y
,D8+ )-N: mission is to $e Ia @orld +lass !ndian )ankJ1 $enchmarkin# themsel/es a#ainst international standards and $est practices in terms of product offerin#s1 technolo#y1 ser/ice le/els1 risk mana#ement and audit M compliance. The o$jecti/e is to $uild sound customer franchises across distinct $usinesses so as to $e a preferred pro/ider of $ankin# ser/ices for tar#et retail and wholesale customer se#ments1 and to achie/e a healthy #rowth in profita$ility1 consistent with the )ankKs risk appetite. )ank is committed to do this while ensurin# the hi#hest le/els of ethical standards1 professional inte#rity1 corporate #o/ernance and re#ulatory compliance. +ontinue to de/elop new product and technolo#y is the main $usiness strate#y of the $ank. Maintain #ood relation with the customers is the main and prime o$jecti/e of the $ank. ,D8+ )-N: $usiness strate#y emphasiAes the followin#% Q!ncrease market share in !ndia2s e0pandin# $ankin# followin# a disciplined #rowth deli/erin# hi#h "uality customer ser/ice. and financial ser/ices industry $y strate#y focusin# on "uality and not on "uantity and

Q.e/era#e our technolo#y platform and open scala$le systems to deli/er more products to more customers and to control operatin# costs. QMaintain current hi#h standards for asset "uality throu#h disciplined credit risk mana#ement. QDe/elop inno/ati/e products and ser/ices that attract the tar#eted customers and address inefficiencies in the !ndian financial sector. Q+ontinue to de/elop products and ser/ices that reduce $ank2s cost of funds. Q8ocus on hi#h earnin#s #rowth with low /olatility

31

SWOT ANAL0SIS
STRENGTH • • • • • • • • • • • &upport of /arious promoters ,i#h le/el of ser/ices :nowled#e of !ndian market Ri#ht strate#y for the ri#ht products. &uperior customer ser/ice /s. competitors Great )rand !ma#e Products ha/e re"uired accreditations. ,i#h de#ree of customer satisfaction. Good place to work .ower response time with efficient and effecti/e ser/ice. Dedicated workforce aimin# at makin# a lon# term career in the field.

. WEAKNESSES • • • • &ome #aps in ran#e for certain sectors. Pro$lems of sales staff. Processes and systems1 etc. Not $een fully a$le to position it correctly

32

OBBortu',t,e& • • • • • • • • • Profit mar#ins will $e #ood. +ould e0tend to o/erseas $roadly. New specialist applications. +ould seek $etter customer deals 8ast track career de/elopment opportunities on an industry wide $asis. -n applied research centre to create opportunities for de/elopin# techni"ues to pro/ide /alue added ser/ices. Growin# !ndian $ankin# sector People are $ecomin# more ser/ice oriented #lo$al market opportunity

T+reat& Q.e#islation could impact. QGreat risk in/ol/ed Q>ery hi#h competition pre/ailin# in the industry. Q>ulnera$le to reacti/e attack $y major competitors Q.ack of infrastructure in rural areas could constrain in/estment. Q,i#h /olume/low cost market is intensely competiti/e.
33

Mar(et,'@ &trate@,e&
• • • • • • • • • • • Distri$ution +hoice of channels for ser/ices Modern technolo#y Maintain# pu$lic relationship !nternet ser/ices -d/ertisin# &tron# marketin# position Personal $ankin# for the customers 8ocus on Relationship $ankin# )ank tries to esta$lish a customer relationship mana#ement in almost e/ery $ranch. +ustomer centric technolo#ies

Mar(et,'@ camBa,@'& lau'c+e? )y HDFC )a'(
,D8+ )ank has launched nei#h$orhood marketin# initiati/es in tier two cities and towns to create awareness a$out its /arious products and ser/ices. These initiati/es are especially tar#eted at those consumers who are not aware a$out the $ankKs /arious /alue added ser/ices such as

34

direct $ankin# facilities. These campai#ns demonstrated the ad/anta#es of net $ankin# and mo$ile $ankin#1 as these concepts are relati/ely new to people li/in# in smaller towns and cities. The $ank has also launched another initiati/e called I)usiness :i )atenJ1 which is tar#eted at areas where the $ulk of the population comprises small $usinessmen. The $ank would #et e0perts to talk on a num$er of issues such as /alue add ta0 and sales ta0. -ccordin# to an article in ,indu $usiness line dated No/em$er D1 3BBG1 these campai#ns pro/ide $ank with information a$out customer preferences that can $e used for mass media communication1 makin# it more effecti/e. ,D8+ can measure the result of a campai#n throu#h the sales that they #enerate and the customers that are added. There is a clear return on in/estment1 which from a functional point of /iew #i/es the team a stron#er /oice. ,D8+ has also $een a$le to reduce ad spends $y a$out 6B 67 per cent and has also reduced the cost of ac"uisition. ,D8+ wants to create an en/ironment that is re"uired to support customer intelli#ence that leads to data$ase marketin#. ,D8+ $ank has in/ested in many cross sellin# acti/ities. ,D8+ strate#y has $een not only the ac"uisition of new customers $ut at creatin# product awareness1 enhancin# usa#e and also pro/idin# /alue added ser/ices to customers to reward them for their faith and loyalty. ,D8+ also sends personaliAed mailers a$out their /arious products to the data $ase which they ac"uire. ,D8+ tries to sell itself as one stop financial super market.

Cu&tomer& a'? Mar(et,'@9 +o* ,& ,t ?o'e for reta,l Bro?uct& of t+e )a'(
The tar#et market for retail ser/ices comprises upper and middle income persons and hi#h net worth customers. ,D8+ also tar#et small $usinesses1 trusts and non profit corporations. The marketin# of products is done throu#h $ranches1 telemarketin# and a dedicated sales staff for niche market se#ments. ,D8+ also use third party a#ents and direct sales associates to market certain products and to identify prospecti/e new customers. -dditionally1 $ank o$tains new customers throu#h joint marketin# efforts with our wholesale $ankin# department1 such as our +orporate &alary -ccount packa#e. The marketin# of auto loan and two wheeler loan products are done throu#h joint efforts with rele/ant manufacturers and distri$utors. There are pro#rams that tar#et other particular se#ments of the retail market. 8or e0ample1 the pri/ate and preferred $ankin# pro#rams pro/ide customiAed financial plannin# to hi#h net worth
35

indi/iduals in order to preser/e and enhance their wealth. Pri/ate $ankin# customers recei/e a personal in/estment ad/isor who ser/es as their sin#le point ,D8+ )ank contact1 and who compiles personaliAed portfolio trackin# products1 includin# mutual fund and e"uity trackin# statements. ,D8+ $ank pri/ate $ankin# pro#ram also offers e"uity in/estment ad/isory products. @hile not as ser/ice intensi/e as the pri/ate $ankin# pro#ram1 preferred $ankin# offers similar ser/ices to a sli#htly $roader tar#et se#ment. Top re/enue #eneratin# customers of the preferred $ankin# pro#ram are channeled into $ank2s pri/ate $ankin# pro#ram.

RETAIL !ANKINGF AN ANAL0SIS
RETAIL !ANKING
Retail $ankin# is typical mass market $ankin# where indi/idual customers use local $ranches of lar#er commercial $anks. &er/ices offered include% sa/in#s and checkin# accounts1 mort#a#es1 personal loans1 de$it cards1 credit cards1 and so forth. This is /ery different from wholesale $ankin#.

RETAIL !ANKING IN INDIA
!ndia is poised to $ecome the worldKs fourth lar#est economy in the span of two decades. *conomic prosperity is pro/idin# many in this populous nation with real purchasin# powerN it simply is an opportunity that cannot $e o/erlooked $y #lo$al $anks. Durin# the last decade1 !ndia has emer#ed as one of the $i##est and fastest #rowin# economies in the world. The stren#thenin# economy in !ndia has $een fueled $y the con/er#ence of se/eral key influences% li$eraliAation policies of the #o/ernment1 #rowth of key economic sectors1 de/elopment of an *n#lish speakin#1 well educated work force and the emer#ence of a middle class population.

REASONS FOR THE CHANGE OVER FROM COR$ORATE !ANKING TO RETAIL !ANKING%
36

•

The financial sector reforms undertaken $y the Go/ernment since the year 6CC6 ha/e accelerated the process of disintermediation which has encoura#ed $lue chip corporate to access cheaper funds to meet their workin# capital re"uirements directly from in/estors in !ndia. The dere#ulation of markets and interest rates has lead to cut throat competition amon# )anks for corporate loans and offer other /alued ser/ices at comparati/ely cheaper rates to $i# and hi#h /alue corporate. !n the process1 most of the $anks ha/e e0perienced su$stantial reduction in interest spreads and drain on their profita$ility.

•

The risks in/ol/ed in corporate loans are /ery hi#h as corporate ha/e to keep all their e##s in one $asket. The risks in/ol/ed in retail )ankin# ad/ances are comparati/ely less and well di/ersified as loan amounts are relati/ely small ran#in# from Rs. 7BBB to Rs. 6BB lack and repaya$le normally in short period of E 7 years e0cept housin# loans 'where repayment period is lon# up to 67 years in some cases( and from fi0ed source of income like salaries.

•

@hereas corporate loans #i/e a/era#e return of just B.7 to 6.7 percent only1 the retail ad/ances offer attracti/e interest spread of Eto D percent1 $ecause retail $orrowers are less interest rate sensiti/e than the +orporate. -nother reason for lar#e interest spreads on retail ad/ances is that the retail customers are too fra#mented to $ar#ain effecti/ely.

•

@hile corporate loans are su$ject to ups and downs in trade fre"uently1 retail loans are comparati/ely independent of recession and continue to deli/er e/en durin# the slu##ish phase of economy.

•
•

Retail )ankin# #i/es a lot of sta$ility and pu$lic ima#e to $anks as compared to corporate $ankin#. The #reater amount of consumerism in the country with upswin# in income le/els of $ur#eonin# middle class1 which has propensity to consume to raise their standard of li/in#1 is enlar#in# the retail markets. Gi/en the easy li"uidity scenario in the country the #rowth rate in this sector is likely to #o up manifold in the years come.

•

Retail )ankin# clients are #enerally loyal and tend not to chan#e from one )ank to another /ery often. .ar#e num$ers of Retail clients facilitate marketin#1 mass sellin# and a$ility to cate#oriAe/select clients usin# scorin# system and data minin#. )anks can cut
37

costs and achie/e economies of scale and impro/e their $ottom line $y ro$ust #rowth in retail $usiness /olume. • • • Throu#h product inno/ations and competiti/e pricin# strate#ies )anks can foster $usiness relationship with customers to retain the e0istin# clients and attract new ones. !nno/ati/e products like asset securitiAation can open new /istas in sustainin# optimal capital ade"uacy and asset lia$ility mana#ement for $anks. Retail )ankin# offers opportunities to $anks to cross sell other retail products like credit card1 insurance1 mutual fund products and demat facilities etc. to depositors and in/estors.

HDFC !ANK RETAIL $ROD.CTSF $ERSONAL !ANKING
,D8+ $ank principal $ankin# acti/ities consist of retail $ankin#1 wholesale $ankin# and treasury operations. The retail $ankin# operations of the ,D8+ $ank ha/e $een discussed $elow.

Reta,l !a'(,'@F OAerA,e*
,D8+ $ank considers itself a one stop shop for the financial needs of upper and middle income indi/iduals. !t pro/ide a comprehensi/e ran#e of financial products includin# deposit products1 loans1 credit cards1 de$it cards1 third party mutual funds and insurance products1 in/estment ad/ice1 $ill payment ser/ices and other ser/ices. !t offers hi#h "uality ser/ice and #reater con/enience $y le/era#in# our technolo#y platforms and multiple distri$ution channels. ,D8+ $ank #oal is to pro/ide $ankin# and financial ser/ices to our retail customers on an Ianytime1 anywhere1 anyhowJ $asis. ,D8+ $ank market ser/ices a##ressi/ely throu#h its $ranches and direct sales associates1 as well as throu#h the $ank2s relationships with automo$ile dealers and corporate clients. @hat the $ank does is to esta$lish a relationship with a retail customer and then e0pand it $y offerin# more products and e0pandin# their distri$ution channels so as to make it easier for the customer to do $usiness with $ank. )ank $elie/es in this strate#y1 so that it can
38

lead to #eneral #rowth of the !ndian economy and the !ndian upper and middle classes1 can afford $ank2s si#nificant opportunities for #rowth. ,D8+ Hs plan is to continue to e0pand their $ranch and -TM network as well as their other distri$ution channels1 su$ject to recei/in# re#ulatory appro/als.

Reta,l Loa'& a'? Ot+er A&&et $ro?uct&


,D8+ )ank offers a wide ran#e of retail loans1 includin# loans for the purchase of automo$iles1 personal loans1 retail $usiness $ankin# loans1 loans for the purchase of commercial /ehicles and construction e"uipment finance1 two wheeler loans1 credit cards and loans a#ainst securities. The retail loans were 7C.54 of $ank2s #ross loans as of Decem$er E61 3BBG. -part from the $ranches of the $ank1 ,D8+ use their -TM screens and the !nternet to promote its loan products and they also employ additional sales methods dependin# on the type of products. ,D8+ $ank themsel/es performs credit analyses of the $orrowers and the /alue of the collateral. The $ank also $uys mort#a#e and other asset $acked securities and in/ests in retail loan portfolios throu#h assi#nments. !n addition to takin# collateral in many cases1 ,D8+ $ank o$tains post dated checks co/erin# all payments at the time a retail loan is made. !t is a criminal offense in !ndia to issue a $ad check. Thou#h throu#h my o$ser/ation in $ank ! ha/e seen that $ank also sometimes o$tain irre/oca$le instructions to de$it the customer2s account directly for the makin# of payments. EMI calculator9 The $ank offers proper details on how it is done in fact the $ank makes sure that the customers are aware a$out its use and how is it rele/ant. !t makes use of amortiAation ta$le for its calculation. The term and *M! has $een e0plained $elow. EDuate? Mo't+ly I'&tallme't "EMI# -n e"uated monthly installment '*M!( is the fi0ed monthly payment made $y a $orrower to the lender each calendar month. The amount of the *M! depends upon the loan amount1 interest rate char#ed for the loan and the duration in which the loan is to $e repaid. The *M! is made up of two parts1 the principal amount and the interest on the principal amount di/ided across each month in the loan tenure. The *M! is always paid
39



up to the lender on a fi0ed date each month until the loan is paid off in full at the end of the tenure. The $enefit of an *M! for $orrowers is that they know precisely how much money they will need to pay toward their loan each month1 makin# the personal $ud#etin# process easier. Amort,-at,o' Ta)le& a'? W+y T+ey Are .&eful Now1 one mi#ht assume that the *M! is applied in e"ual parts towards the principal and the interest e/ery month1 howe/er this not the case. Durin# the initial years the interest component repaid is hi#her and durin# the latter years of repayment the principal component is hi#her. @hile a portion of e/ery payment is applied towards $oth the interest and the principal $alance of the loan1 the e0act amount applied to principal each time /aries 'with the remainder #oin# to interest(. -n amortiAation schedule re/eals the amount applied towards interest1 as well as the amount paid towards the principal $alance1 with each payment. !nitially1 a lar#e portion of each payment is de/oted to interest. -s the loan matures1 lar#er portions #o towards payin# down the principal. !n addition to $reakin# down each payment into interest and principal portions1 an amortiAation schedule also re/eals the remainin# principal $alance on each payment date .




Loa' reBayme't calculator The followin# ta$le shows the /alue and share of our retail loan products 'net of loans securitiAed out(% 'Rs. crore(

$art,cular& A& at Decem)er :5 7<<8 G of total Aalue -uto .oans +ommercial >ehicle and +onstruction *"uipment Personal .oans .oans -#ainst &ecurities Two @heeler .oans 67163D 37.D4 G1E36 6E.C4 G1C6F 6D.C4 5CC 6.34 31BC3 E.74
40

+redit +ards ;ther Retail .oans Total Reta,l Loa'&

D1B7E 5.G4 51GG6 66.74 ;4 326 5<<.<<G

,D8+ $ank offer secured loans at fi0ed interest rates for financin# new and used automo$ile purchases. !n addition to their #eneral marketin# efforts for retail loans1 ,D8+ market this product throu#h $uildin# their relationships with car dealers1 corporate packa#es and joint promotion pro#rams with automo$ile manufacturers.

Commerc,al Ve+,cle& a'? Co'&truct,o' EDu,Bme't F,'a'ce
,D8+ $ank pro/ides secured financin# for commercial /ehicles and pro/ides workin# capital1 $ank #uarantees and trade ad/ances to customers who are transportation operators. !n addition to fundin# domestic assets1 $ank also finance imported assets for which they open forei#n letters of credit and offer treasury ser/ices such as forward e0chan#e co/er. To do this smoothly $ank coordinates with manufacturers to jointly promote their financin# options to their clients.

$er&o'al Loa'&
The $ank offer unsecured personal loans at fi0ed rates to specific customer se#ments1 includin# salaried indi/iduals and self employed professionals. !n addition1 they offer unsecured personal loans to small $usinesses and indi/iduals.

Loa'& a@a,'&t Secur,t,e&
!t also offers loans a#ainst e"uity shares1 mutual fund units1 $onds issued $y the R)! and other securities that are on our appro/ed list. ,D8+ $ank limits their loans a#ainst e"uity shares to Rs. 3B lacks per retail customer in line with re#ulatory #uidelines and limits the amount of their total e0posure secured $y particular securities. )ank lend only a#ainst shares in $ook entry
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'dematerialiAed( form1 which ensures that they o$tain perfected and first priority security interests. The minimum mar#in for lendin# a#ainst shares is prescri$ed $y the R)!.

T*o W+eeler Loa'&
,D8+ offer loans for financin# the purchase of scooters or motorcycles. The $ank markets this product in ways similar to their marketin# of auto loans.

Reta,l !u&,'e&& !a'(,'@
,D8+ $ank address the $orrowin# needs of the community of small $usinessmen near the $ank $ranches $y offerin# facilities such as credit lines1 term loans for e0pansion or addition of facilities and discountin# of credit card recei/a$les. The $ank classifies these $usiness $ankin# loans as a retail product. &uch lendin# is typically secured with current assets as well as immo/a$le property and fi0ed assets in some cases. The $ank also offer letters of credit1 #uarantees and other $asic trade finance products and cash mana#ement ser/ices to such $usinesses.

Cre?,t Car?&
,D8+ $ank offer credit cards from the >!&- and Master+ard sta$le includin# #old1 sil/er1 corporate1 platinum and titanium credit cards. -s per the information #ained from $ank1 the $ank had appro0imately D7 lacks cards outstandin# as of Decem$er E61 3BBG as a#ainst EG lacks as of March E61 3BBG.

Ot+er Reta,l Loa'&
&uch loans primarily include o/erdrafts a#ainst time deposits1 health care e"uipment financin# loans1 tractor loans1 loans a#ainst #old and ornaments and small loans to farmers. +urrently other loans also include home loans dis$ursed $y the erstwhile +enturion )ank of Punja$ .td.

Reta,l DeBo&,t $ro?uct&
Retail deposits pro/ide the $ank with a low cost1 sta$le fundin# $ase and ha/e $een a key focus area for ,D8+ since commencin# operations. Retail deposits represented 5F4 of $ank2s total
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deposits as of Decem$er E61 3BBC. The followin# chart shows the /alue of our retail deposits $y our /arious deposit products as of the same date%

TyBe of DeBo&,t Value "R&. crore# G of Total
&a/in#s +urrent 8i0ed deposits Total EB1F56 E6.5F4 6D1BB6 6D.D64 731EF3 7E.C3 46 5:; 5<<.<<G

,D8+ $ank2s indi/idual retail account holders ha/e access to the $enefits of a wide ran#e of direct $ankin# ser/ices1 includin# de$it and -TM cards1 access to the #rowin# $ranch and -TM network1 access to other distri$ution channels and eli#i$ility for utility $ill payments and other ser/ices. The retail deposit products include the followin#% a( &a/in#s accounts1 which are demand deposits in checkin# accounts desi#ned primarily for indi/iduals and trusts. These accrue interest at a fi0ed rate set $y the R)! 'currently E.7B4 per annum(. $( +urrent accounts1 which are non interest $earin# checkin# accounts desi#ned primarily for small $usinesses. +ustomers ha/e a choice of re#ular and premium product offerin#s with different minimum a/era#e "uarterly account $alance re"uirements. c( Time deposits1 which pay a fi0ed return o/er a predetermined time period. )ank also offers special /alue added accounts1 which offer the customers added /alue and con/enience. These include a time deposit account that allows for automatic transfers from a
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time deposit account to a sa/in#s account1 as well as a time deposit account with an automatic o/erdraft facility. * )rokin# accounts are offered as current accounts to customers of stock $rokers where all transactions are routed electronically $etween the $roker and $eneficiaries.

Ot+er Reta,l SerA,ce& a'? $ro?uct& De),t Car?&
The de$it cards may $e used with more than DBB1BBB merchant point of sale machines and o/er EB1BBB -TMs in !ndia and more than 3.CB crore merchant outlets and 6B lacs -TMs worldwide. ,D8+ was the first in !ndia to issue international >isa *lectron de$it cards on a nationwide $asis and currently issue $oth >isa and Master+ard de$it cards.

I'?,A,?ual DeBo&,tary Accou't&
)ank pro/ides depositary accounts to indi/idual retail customers for holdin# de$t and e"uity instruments. &ecurities traded on the !ndian e0chan#es are #enerally not held throu#h a $roker2s account or in street name. !nstead1 an indi/idual will ha/e his own account with a depositary participant for the particular e0chan#e. Depositary participants1 includin# us1 pro/ide ser/ices throu#h the major depositaries esta$lished $y the two major stock e0chan#es. Depositary participants record ownership details and effectuate transfers in $ook entry form on $ehalf of the $uyers and sellers of securities. @e pro/ide a complete packa#e of ser/ices1 includin# account openin#1 re#istration of transfers and other transactions and information reportin#.

Mutual Fu'? Sale&
,D8+ offer retail customers units in most of the lar#e and reputa$le mutual funds in !ndia. 8or this $ank earns front end commissions for new sales and in some cases additional fees in su$se"uent years. )ank distri$utes mutual fund products primarily throu#h $ranches and pri/ate $ankin# ad/isors.

I'&ura'ce
44

,D8+ has arran#ements with ,D8+ &tandard .ife !nsurance +ompany and )ajaj -llianA General !nsurance +ompany to distri$ute their life insurance products and #eneral insurance products to the customers. 8or this also $ank earns upfront commissions on new premiums collected as well as some trailin# income in su$se"uent years while the policy is still in force.

$rec,ou& Metal&
,D8+ $ank also import #old $ars for sale to retail customers throu#h $ranch network.

I'Ae&tme't A?A,ce
)ank offer customers a $road ran#e of in/estment ad/ice includin# ad/ice re#ardin# the purchase of !ndian de$t1 e"uity shares1 and mutual funds. )ank pro/ides pri/ate $ankin# customers with a personal in/estment ad/isor who can consult with them on their indi/idual in/estment needs.

!,ll $ayme't SerA,ce&
)esides $ank also offer customers utility $ill payment ser/ices for leadin# utility companies includin# electricity1 telephone1 mo$ile telephone and !nternet ser/ice pro/iders. +ustomers can also re/iew and access their $ill details throu#h direct $ankin# channels. This ser/ice is /alua$le to customers $ecause utility $ills must otherwise $e paid in person in !ndia. These ser/ices -R* offered to customers throu#h multiple distri$ution channelsR-TMs1 telephone $ankin#1 !nternet $ankin# and mo$ile telephone $ankin#.

CorBorate Salary Accou't&
,D8+ offer +orporate &alary -ccounts1 which allow employers to make salary payments to a #roup of employees with a sin#le transfer. )ank then transfer the funds into the employees2 indi/idual accounts1 and offer them preferred ser/ices1 such as preferential loan rates1 and in some cases lower minimum $alance re"uirements.

No'9Re&,?e't I'?,a' SerA,ce&
Non resident !ndians are an important tar#et market se#ment for !ndian $ankin# industry #i/en their relati/e affluence and stron# ties with family mem$ers in !ndia.

Reta,l Fore,@' EEc+a'@e
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,D8+ $ank purchase forei#n currency from and sell forei#n currency to retail customers in the form of cash1 tra/eler2s checks1 demand drafts and other remittances. )anks also pro/ide out forei#n currency check collections. ,D8+ )ank has $een one of the pioneers in e0tendin# internet $ankin# ser/ices to cater to anytime1 anywhere $ankin# needs of its customers $y le/era#in# on to its state of the art technolo#y platforms. !nternet )ankin# has also $een e0ploited $y hackers and fraudsters to decei/e the $ankKs customer and commit frauds. @hile the $ank has $est of the $reed solutions1 processes and people deployed to e0tend secure $ankin# to its customers1 it is important for our customers to know that S&ec<rity is incomplete without <S.

C,t,-e'&H c+arter
,D8+ $ank2s +itiAenKs +harter offers rele/ant information a$out the products1 facilities and ser/ices we pro/ide. +ustomers can also find out a$out the time norms for /arious $ankin# transactions1 our policy on customer information1 and the process followed for redressal of #rie/ances.

TyBe& of DeBo&,t Accou't&
@hile /arious deposit products offered $y the $ank are assi#ned different names1 the deposit products can $e cate#oriAed $roadly into the followin# types. Definition of major deposit schemes are as under % • • • SDemand Deposits S means a deposit recei/ed $y the $ank which is withdraw a$le on demandN S&a/in#s DepositsS means a form of Demand Deposit which is su$ject to restrictions as to the num$er of withdrawals as also the amounts of withdrawals permitted $y the $ank durin# any specified periodN • STerm DepositS means a deposit recei/ed $y the $ank for a fi0ed period withdraw a$le only after the e0piry of the fi0ed period and includes deposits such as Recurrin# / Dou$le )enefit Deposits / &hort Deposits / 8i0ed Deposits / Monthly !ncome +ertificate / ?uarterly !ncome +ertificate etc.
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• •

KKNotice DepositKK means Term Deposit for a specific period $ut withdraw a$le on #i/in# at least one complete $ankin# dayKs noticeN S+urrent -ccountS means a form of Demand Deposit wherefrom withdrawals are allowed any num$er of times dependin# upon the $alance in the account or up to a particular a#reed amount and will also include other deposit accounts which are neither &a/in#s Deposit nor Term DepositN

Accou't OBe','@ > OBerat,o' of DeBo&,t Accou't
)efore openin# any Deposit -ccount1 the $ank will carry out due dili#ence as re"uired under S:now Lour +ustomerS ':L+( #uidelines issued $y R)! and or such other norms or procedures adopted $y the $ank. !f the decision to open an account of a prospecti/e depositor re"uires clearance at a hi#her le/el1 reasons for any delay in openin# of the account will $e informed to him and the final decision of the $ank will $e con/eyed at the earliest to him. The account openin# forms and other material would $e pro/ided to the prospecti/e depositor $y the $ank. The same will contain details of information to $e furnished and documents to $e su$mitted for /erification and / or for record. !t is e0pected of the $ank official to e0plain the procedural formalities and pro/ide necessary clarifications sou#ht $y the prospecti/e depositor when he approaches the $ank for openin# a Deposit -ccount. 8or deposit products like &a/in#s )ank -ccount and +urrent Deposit -ccount1 the $ank will normally stipulate certain minimum/a/era#e $alances to $e maintained as a part of the terms and conditions #o/ernin# operation of such accounts. 8ailure to maintain stipulated minimum/ a/era#e $alance in the account will attract le/y of char#es as specified $y the $ank. 8or &a/in#s )ank -ccount1 the $ank may also restrict the num$er of transactions1 cash withdrawals1 etc.1 for a #i/en period. &imilarly1 the $ank may specify char#es for issue of che"ue $ooks1 additional statement of accounts1 duplicate pass $ook1 folio char#es1 etc. -ll such details1 re#ardin# terms and conditions for operation of the accounts and schedule of char#es for /arious ser/ices pro/ided will $e communicated to the prospecti/e depositor while openin# the account.
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&a/in#s )ank -ccounts can $e opened for eli#i$le person / persons and certain or#aniAations / a#encies 'as ad/ised $y Reser/e )ank of !ndia 'R)!( from time to time(.These accounts are desi#ned to help the indi/idual 'personal customers( to inculcate the ha$it of sa/in# money and to meet their future re"uirement of money. The amounts can $e deposited/withdrawn from these accounts $y use of che"ues/-TM. !t helps customers to keep minimum cash at home $esides earnin# interest. +urrent -ccounts can $e opened $y !ndi/iduals / Partnership firms / Pri/ate and Pu$lic .imited +ompanies / ,<8s / &pecified -ssociates / &ocieties / Trusts1 etc. Term Deposit -ccounts can $e opened $y !ndi/iduals / Partnership firms / Pri/ate and Pu$lic .imited +ompanies / ,<8s/ &pecified -ssociates / &ocieties / Trusts1 etc. )ank has tailored /arious deposit schemes to suit the needs and e0pectations of in/estin# people in e/ery walk of life. The due dili#ence process1 while openin# a Deposit -ccount will in/ol/e satisfyin# a$out the identity of the person1 /erification of address1 satisfyin# a$out his occupation and source of income. ;$tainin# introduction of the prospecti/e depositor from a person accepta$le to the $ank and o$tainin# recent photo#raphs of the person/s openin# / operatin# the account are part of the due dili#ence process. !n addition to the due dili#ence re"uirements1 under :L+ norms'i.e. know your customers( the $ank is re"uired $y law to o$tain Permanent -ccount Num$er 'P-N( or General !nde0 Re#ister 'G!R( Num$er or alternati/ely declaration in 8orm No. 5B or 56 as specified under the !ncome Ta0 -ct / Rules. Deposit -ccounts can $e opened $y an indi/idual in his own name 'status% known as account in sin#le name( or $y more than one indi/idual in their own names 'status% known as =oint -ccount(. &a/in#s )ank -ccount can also $e opened $y a minor jointly with natural #uardian or with mother as the #uardian '&tatus% known as MinorKs -ccount(. Minors a$o/e the a#e of 63 will also $e allowed to open and operate &a/in# )ank -ccount independently.

48

;peration of =oint -ccount% The =oint -ccount opened $y more than one indi/idual can $e operated $y sin#le indi/idual or $y more than one indi/idual jointly. The mandate for operatin# the account can $e modified with the consent of all account holders. The &a/in#s )ank -ccount opened $y minor jointly with natural #uardian / #uardian can $e operated $y natural #uardian only. The joint account holders choose any of the followin# options for the disposal of $alance in the a$o/e accounts%
•

*ither or &ur/i/or % !f the account is held $y two indi/iduals say1 - M )1 the final $alance alon# with interest1 if applica$le1 will $e paid to sur/i/or on death of any one of the account holders.

•

-nyone or &ur/i/or/s % !f the account is held $y more than two indi/iduals say1 -1 ) and +1 the final $alance alon# with interest1 if applica$le1 will $e paid to the sur/i/or on death of any two account holders.

The a$o/e mandates will $e applica$le to or $ecome operational only on or after the date of maturity of term deposits. This mandate can $e modified $y the consent of all the account holders. -t the re"uest of the depositor1 the $ank will re#ister the mandate / power of attorney #i/en $y him authoriAin# another person to operate the account on his $ehalf. The term deposit account holders at the time of placin# their deposits can #i/e instructions with re#ard to closure of deposit account or renewal of deposit for further period on the date of maturity - statement of account will $e pro/ided $y the $ank to &a/in#s )ank as well as +urrent Deposit -ccount ,olders periodically as per terms and conditions of openin# of the account. Pass$ook facility is a/aila$le to all sa/in#s account holders free of cost.

49

Nom,'at,o' Fac,l,ty
Nomination 8acility% )ank offers nomination facility in deposit accounts1 safe deposit lockers1 articles in safe custody etc. Nomination facility is a/aila$le on all deposit accounts opened $y the indi/iduals. Nomination is also a/aila$le to a sole proprietary concern account. Nomination can $e made in fa/or of one indi/idual only. Nomination so made can $e cancelled or chan#ed $y the account holder/s any time. @hile makin# nomination1 cancellation or chan#e thereof1 it is re"uired to $e witnessed $y a third party. Nomination can $e modified $y the consent of account holder/s. Nomination can $e made in fa/or of a minor also su$ject to other major indi/idual $ein# named appointee's( durin# the minority period. The $ank recommends that all depositors a/ail nomination facility. The nominee1 in the e/ent of death of the depositor/s1 would recei/e the $alance outstandin# in the account as a trustee of le#al heirs.

I'tere&t $ayme't& M,'orI& Accou't&
The minor can open a sa/in#s $ank account and the same can $e operated $y the natural #uardian or $y the minor himself / herself1 if he/she is a$o/e the a#e of 63 years. The account can also $e opened jointly. ;n attainin# majority1 the erstwhile minor should confirm the $alance in his/her account and if the account is operated $y the natural #uardian / #uardian1 fresh specimen si#nature of erstwhile minor duly /erified $y the natural #uardian would $e o$tained and kept on record for all operational purposes.

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COM$ETITIVE ANAL0SIS
ICICI )a'(
!+!+! )ank is !ndiaKs second lar#est $ank with total assets of Rs. E15ED.BB $illion '<&T G6 $illion( at March E61 3B6B and profit after ta0 Rs. DB.37 $illion '<&T GC5 million( for the year ended March E61 3B6B. The )ank has a network of 31BBC $ranches and a$out 7136C -TMs in !ndia and presence in 6G countries. !+!+! )ank offers a wide ran#e of $ankin# products and financial ser/ices to corporate and retail customers throu#h a /ariety of deli/ery channels and throu#h its specialiAed su$sidiaries in the areas of in/estment $ankin#1 life and non life insurance1 /enture capital and asset mana#ement. The )ank currently has su$sidiaries in the <nited :in#dom1 Russia and +anada1 $ranches in <nited &tates1 &in#apore1 )ahrain1 ,on# :on#1 &ri .anka1 ?atar and Du$ai !nternational 8inance +entre and representati/e offices in <nited -ra$ *mirates1 +hina1 &outh -frica1 )an#ladesh1 Thailand1 Malaysia and !ndonesia. ;ur <: su$sidiary has esta$lished $ranches in )el#ium and Germany. The $ank has a presence in around 6G countries across the #lo$e. They offer a wide #amut of retail products to its retail customers and as well as other $ankin# products related to the corporate se#ment. These include !+!+! personal loan1 !+!+! home loan1 !+!+! car loan1 !+!+! credit cards1 !+!+! .-P etc. They also offer financial ser/ices that span asset mana#ement1 /enture capital1 in/estment $ankin#1 life and non life insurance. !+!+! e"uity shares find a place in the )om$ay &tock *0chan#e and National &tock *0chan#e in !ndia with its -merican depositary receipts listed in the New Lork &tock *0chan#e. !+!+! )ank is one of the most popular $anks in recent times with its presence felt throu#h a hu#e network of 61DC7 $ranches and D1G65 -TMs across
51

the country1 with profits runnin# into G.G $illion in the "uarter ended =une 3BBC. The $ank also has a presence in around 6G countries across the #lo$e. They offer a wide #amut of retail products to its retail customers and as well as other $ankin# products related to the corporate se#ment.

M,le&to'e&
• • • !n 6CCC1 !+!+! $ecome the first !ndian company and the first $ank or financial institution from non =apan -sia to $e listed on the NL&*. Mer#er of !+!+! )ank with )ank of Madura .imited in fiscal 3BB6 and 3BB3. !n ;cto$er 3BB61 !+!+! Personal 8inancial &er/ices and !+!+! +apital &er/ices wholly owned $y !+!+! .imited were allowed to $e mer#ed with !+!+! )ank1 which was formally appro/ed $y the R)! in -pril 3BB3. • :.>. :amath is the +hairman of the !+!+! #roup. +handa D. :ochhar1 the Mana#in# Director M +*; of !+!+! )ank was recently named in 8or$es list of the @orld2s 6BB Most Powerful @omen and ranked in the top 3B of the list compiled $y 8or$es1 sharin# the honor with &onia Gandhi1 +on#ress President who ranked 6Eth.

ICICI )a'( reta,l Bro?uct& Accou't& a'? ?eBo&,t& SaA,'@& accou't
!+!+! $ank sa/in#s account offers the customers followin# features% • • De$it cum -TM +ard Money Multiplier 8acility
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• • • • • •

!nternet )ankin# +ustomer +are Mo$ile )ankin# &tandin# !nstructions Nomination facility DD +all and +ollect

De),t9cum9ATM Car? 9 @ith !+!+! )ank SaA,'@& Accou't the customers will #et a de$it card that one can use to withdraw cash from any -TM. +ustomers may also use their de$it card to directly make purchases throu#h a >isa/Master+ard P;& 'Point of &ale( machine a/aila$le at most stores1 accordin# to the $ank this will help customers access their money from anywhere. The !+!+! )ank !nternational de$it card is a de$it cum -TM card pro/idin# customers with the con/enience of acceptance at merchant esta$lishments and cash withdrawals at -TMs. !f the customers want to withdraw cash from their !+!+! )ank &a/in#s account1 they can walk into any $ankKs -TM and use their !+!+! )ank -TM cum De$it card for free. The a$o/e $enefit is a/aila$le free of cost for the first 7 transaction per month upto Rs 6B1BBB per transaction. Mo'ey Mult,Bl,er Fac,l,ty9The Money Multiplier feature #i/es customer the li"uidity of a &a/in#s -ccount coupled with hi#h earnin#s of a 8i0ed Deposit. This is achie/ed $y creatin# a 8i0ed Deposit linked to customers &a/in#s -ccount pro/idin# them the followin# facilities.


MaE,mum retur'& C -ccordin# to the $ank the customer2s money is ne/er idle. +reation of a linked 8D ensures hi#her rate of interest on their &a/in#s )ank Deposits. ;ne can issue instructions throu#h any channel such as the !+!+! )ank )ranch1 !+!+! )ank Phone )ankin# and !+!+! )ankKs !nternet )ankin# for creation of 8i0ed Deposit's( from the surplus funds in your &a/in#s )ank -ccount 'su$ject to a minimum of Rs. 6B1BBB(. The
53

8i0ed Deposits will $e created in multiples of Rs. 71BBB for tenure of one year or more as instructed $y the customer.


MaE,mum L,Du,?,ty P The customers can withdraw the funds from their sa/in#s account throu#h any channel such as the !+!+! )ank -TM1 !+!+! )ank !nternet )ankin# or $y issuin# a che"ue etc. -ll linked 8i0ed Deposits will $e ena$led for automatic Re/erse &weep in multiples of Rs. 7BBB on a .ast !n 8irst ;ut '.!8;( $asis when the $alance in the &a/in#s -ccount falls $elow Rs.6B1 BBB. The amount re/erse swept will earn interest rates at the applica$le rate for the period that the deposit was held with the )ank. The remainin# amount will continue to earn hi#her interest at the ori#inal rate applica$le to the fi0ed deposit.



Auto Re'e*al deposit.

<nder this facility1 when their deposits fall due1 the $ank will

automatically renew the principal and accrued interest for the same tenure as the ori#inal

I'ter'et !a'(,'@ 8or internet $ankin# the customers need to lo# in with their user !D and password and make $ankin# a hassle free routine. !t is offered free of cost. Cu&tomer Care P The $ank has 3D hour +ustomer +are ser/ice always a/aila$le to answer any "uery or take their instructions. Mo),le !a'(,'@ P The customers ha/e an option of mo$ile $ankin# throu#h which they can do Transferrin# of funds or #ettin# to know their $alance. Sta'?,'@ I'&truct,o'& !+!+! )ank accepts and supports &tandin# !nstructions. -ccordin# to them the customers donKt ha/e to worry a$out the chore of carryin# out a routine transaction. They can just set up a &tandin# !nstruction and then the $ank will mana#e. Nom,'at,o' Fac,l,ty P The customers may nominate a person as $eneficiary to their account proceeds. Nomination facility a/aila$le for $ank deposits.  There can $e only one Nominee for a deposit account whether held sin#ly or jointly.
54

 - person le#ally empowered to operate a minorKs account can file a nomination on $ehalf of the minor.  -pplicants can make nomination $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules 6CG7  The nomination details can $e chan#ed durin# the su$sistence of the account relationship $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules 6CG7.

DD Call a'? Collect P accordin# to the $ank the customers need to wait in $ank to collect DD they can do so on the way to the $ranch1 $y just callin# +ustomer +are and pro/idin# them details of the DD to $e prepared and collect it ready and si#ned at the $ranch.

Salary accou't&
!+!+! )ank &alary -ccount is a $enefit rich payroll account for *mployers and *mployees. -s an or#aniAation1 one can opt for &alary -ccounts to ena$le easy dis$ursements of salaries and to ha/e access to other $enefits too. -ccordin# to the $ank with !+!+! )ank &alary -ccounts employees will enjoy the con/enience of ha/in# the lar#est network of -TMs1 free 3D hour phone $ankin# and free internet $ankin#. @hat the customers would re"uire to do is to send !+!+! )ank an ad/ice 'in form of a che"ue/de$it instruction1 ecs1 etc( for the total salary amount alon# with the salary details of the desi#nated employees in a soft and hard copy format and $ank will credit the respecti/e employeesK accounts as per the company2s statement of ad/ice. !+!+! )ank &alary -ccounts has the $enefits of reduce paper work and sa/es remittance costs and also the employees recei/e instant credit of salaries. )esides all of the a$o/e1 employees will automatically $ecome !+!+! )ank account holders with special $enefits and pri/ile#es of G G $ankin#1 !n/estment ad/isory and much more. !+!+! )ank also has a special offerin#% Defense )ankin# &er/ices desi#ned e0clusi/ely for the armed forces.
55

F,Ee? ?eBo&,t&
The !+!+! $ank fi0ed deposits offer followin# ad/anta#es%
     

@ide ran#e of tenures. +hoice of in/estment plans. Partial withdrawal permitted. &afe custody of fi0ed deposit receipts. -uto renewal possi$le. .oan facility a/aila$le.

Feature&
 The customers can deposit any amount of money in 8i0ed Deposit for as lon# as they wish $etween 67 days to 6B years. -ll fi0ed deposits come with a set choice of in/estment plans. 8i0ed Rate Deposit accounts also pro/ide 8i0ed .oans. Re in/estment 8i0ed Deposit rates do not chan#e $ut works like a Recurrin# De$it -ccount transaction. !n other words1 Re in/estment Plans are compounded o/er traditional deposits and hence are more lucrati/e o/er different time periods. ;ther features include%

M,',mum !ala'ce
 +ustomers can a/ail of !+!+! )ank 8i0ed Deposits for a minimum deposit of Rs 6B1BBB.

Nom,'at,o'
 Nomination facility a/aila$le for $ank deposits.  There can $e only one Nominee for a deposit account whether held sin#ly or jointly.  - person le#ally empowered to operate a minorKs account can file a nomination on $ehalf of the minor.

56

 -pplicants can make nomination $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules 6CG7.  The nomination details can $e chan#ed durin# the su$sistence of the account relationship $y fillin# up the 8orm prescri$ed under the )ankin# +ompanies 'Nomination( Rules 6CG7.  +hoice of two in/estment plans%

Tra?,t,o'al
 !nterest paya$le monthly or "uarterly as per your con/enience  Maturity period ran#es from 67 days to 6B years

Re,'Ae&tme't
 !nterest is compounded "uarterly and rein/ested with principal amount  Maturity period ran#es from 5 months to 6B years

!e'ef,t&
8i0ed Deposits at !+!+! )ank comes with nomination facility. The $ank also offers online access to 8i0ed Deposits throu#h their !nternet )ankin# channel. !nternet )ankin# at !+!+! )ank allows customers to connect to their +redit +ard1 .oan and their 8i0ed Deposit with their sa/in#s account. !n re in/estment deposits1 the interest is compounded "uarterly and rein/ested with the principal. Traditional term deposits pro/ide ta0 shelter and shield you from factors affectin# fi0ed deposits in !ndia o/er lon#er periods of fi0ed time. -ll the facilities a/aila$le with !+!+! $ank can $e listed as follows.

C+a''el&
57

!+!+! )ank has the followin# channels throu#h which it offers its products and ser/ices to its customers. • • • • • )ranches -TMs !nternet )ankin# Mo$ile )ankin# Phone )ankin#

Products and ser/ices !+!+! )ank offers a host of products and ser/ices to its clients1 which include Deposits1 .oans1 +ards1 !n/estments1 !nsurance1 Demat1 NR! &er/ices and ;nline &er/ices etc.

DeBo&,t&
8ollowin# deposits are offered%
• • • • • • •

&a/in#s -ccount -d/anta#e Deposit &pecial &a/in#s -ccount .ife Plus &enior +itiAens &a/in#s -ccount 8i0ed Deposits &ecurity Deposits Recurrin# Deposits
58

• • • • • • • • • • • • • • • •

Ta0 &a/er 8i0ed Deposit Loun# &tars &a/in#s -ccount +hild *ducation Plan )ankU+ampus &alary -ccount -d/anta#e @oman &a/in#s -ccount **8+ -ccount Resident 8orei#n +urrency 'Domestic( -ccount Pri/ile#e )ankin# No 8rills -ccount Rural &a/in#s -ccount PeopleKs &a/in#s -ccount &elf ,elp Group -ccounts ;utward Remittance 8reedom &a/in#s -ccount 8amily )ankin#

Loa'&
!+!+! )ank offers followin# loan facilities%
59

• • • • • • • • •

,ome .oans .oan -#ainst Property Personal .oans +ar .oans Two @heeler .oans +ommercial >ehicle .oans .oans -#ainst &ecurities .oan -#ainst Gold ;rnaments Pre appro/ed .oans

Car?&
!+!+! )ank is !ndiaKs lar#est issuer of credit cards. !t also offers other types of cards. The /arious cards offered $y !+!+! $ank are as $elow% +onsumer +ards
  

+redit +ards Tra/el +ards De$it +ards

+ommercial +ards
   

+orporate +ards Prepaid +ards Purchase +ards Distri$ution +ards
60



)usiness +ards

AE,& )a'(
-0is )ank1 pre/iously known as <T! )ank1 is one of the leadin# )anks of !ndia alon# with ,D8+ )ank and !+!+! )ank. *sta$lished in 6CCD1 itKs the first of the new pri/ate sector $anks in !ndia to start its operations1 when Go/ernment of !ndia opened the #ate for the pri/ate $anks to flock into the !ndian financial market. Thou#h the $ank started its operation with the name <T! )ank1 $ut later1 in order to a/oid am$i#uities and confusion with other discrete entities carryin# the same name1 it chan#ed its name to its current form '-0is )ank( in -pril 3BBF. -0is )ank .imited recorded a total income of Rs. 6E1FD7.BD crore as on the year ended March E61 3BBC. !t also made a net profit of Rs. 61G63.CE crore in the same financial year. -0is )ank offers a ran#e of financial products and ser/ices to its clients throu#hout the country. !t also has special stren#th in retail and corporate $ankin#. -0is )ank offers followin# ser/ices%
• • • •

Personal )ankin# +orporate )ankin# NR! Priority )ankin#

$er&o'al )a'(,'@
The Personal )ankin# of -0is )ank includes followin# ser/ices%

Accou't&
   

Vero )alance &a/in#s -ccount :rishi &a/in#s -ccount *asy -ccess &a/in#s -ccount Prime &a/in#s -ccount
61

        

+orporate &alary -ccount @omenKs &a/in#s -ccount Demat -ccount &enior +itiAenKs -ccount Defence salary -ccount Trust/NG; &a/in#s -ccount R8+'D( -ccount -AAadi No 8rills Pension &a/in#s -ccount

DeBo&,t&
   

8i0ed Deposits Recurrin# Deposits *ncash 3D Ta0 &a/er 8i0ed Deposit

Loa'&
     

,ome .oan +ar .oan Personal .oan .oan -#ainst &hares .oan -#ainst Property .oan -#ainst &ecurity
62

 

&tudy .oan +onsumer .oan

Car?&
  

+redit +ards De$it +ards Prepaid +ards

$ayme't&
  

)ill Pay *lectronic +learin# &er/ice Ta0 Payments
• • •

Ta0 e Payments Direct Ta0 Payments Pension Dis$ursement

Ot+er SerA,ce&
   

Mo$ile Refill .ocker ;nline &hoppin# !P;& mart
63



* &tatement

Cre?,t


.ar#e +orporate
• • • • • •

@orkin# +apital 8inance Term .oans Trade &er/ices &tructured 8inance &upply +hain Mana#ement ;/erseas Transactions



-#ri )usiness
• • • • •

:isan Power Powertrac +ommodity Power +ontract 8armin# -rthia Power

  

&M* &tandard &M* 8ast Track Microfinance

$r,or,ty )a'(,'@
64

8ollowin# ser/ices are offered under this cate#ory%

Accou't&
 

Resident NR!

DeBo&,t&
  

8i0ed Deposits Recurrin# Deposits *ncash 3D

Loa'&
      

,ome .oan Personal .oan .oan -#ainst Property .oan -#ainst &ecurity +ar loans +onsumer Power &tudy Power

Car?&
 

Priority De$it +ard +redit +ards
• •

Platinum +redit +ard Gold Plus +redit +ard
65

• • • •   

Gold +redit +ard &il/er +redit +ard &ecured +redit +ard e&hop +ard

Tra/el +urrency +ard Remittance +ard Gift +ard

Ot+er SerA,ce&
o o o

Mo$ile Refill .ocker ;nline &hoppin#

72 +our )a'(,'@ &erA,ce&
8ollowin# ser/ices are offered under 3D 0 F )ankin#%
• •

I'ter'et !a'(,'@ Mo),le !a'(,'@
  

&a/in#s -ccount NR! -ccount +urrent -ccount

• •

$+o'e !a'(,'@ V,&a Mo'ey Tra'&fer
66

• •

$o*er Tra'&fer ATM

KOTAK MAHINDRA !ANK
:otak Mahindra is amon# the leadin# financial or#aniAation of !ndia1 with a ran#e of financial ser/ices that caters to all customersK day to day re"uirements. Their products spans from commercial $ankin#1 to stock $rokin#1 to mutual funds1 to life insurance1 to in/estment $ankin# P di/erse needs of indi/iduals and corporate are catered to. The :otak #roup has a net worth of more than Rs. 51FCC crore with the $ranches1 franchisees1 representati/e offices and satellite offices spread across cities and towns in !ndia. They also ha/e #lo$al offices in New Lork1 .ondon1 &an 8rancisco1 Du$ai1 Mauritius and &in#apore. The :otak Group offers their ser/ices to appro0imately 5.D million customers. The :otak Mahindra Group #ot incepted in 6CG7 in the form of :otak +apital Mana#ement 8inance .imited1 $ein# promoted $y <day :otak1 &idney -. -. Pinto and :otak M +ompany. - stake in the #roup was taken in $y industrialists ,arish Mahindra and -nand Mahindra and this is the time when the company chan#ed its name to :otak Mahindra 8inance .imited.

Kota( GrouB $ro?uct& > SerA,ce&
6. )ank 3. +redit +ards E. .ife !nsurance D. Mutual 8unds 7. +ar 8inance
67

5. &ecurities F. !nstitutional *"uities G. !n/estment )ankin# C. !nternational )usiness 6B. :otak Pri/ate *"uity 66. :otak Realty 8und 63. @ealth Mana#ement

A)out Kota( Ma+,'?ra !a'(
The fla#ship company of :otak Mahindra Group1 :otak Mahindra 8inance .td was esta$lished in 6CG7. The same #ot con/erted into a $ank :otak Mahindra )ank .td in March 3BBE. :otak Mahindra $ank has presence in commercial /ehicles1 retail finance1 corporate $ankin#1 treasury and housin# finance.

SerA,ce& of Kota( Ma+,'?ra !a'( DeBo&,t Accou't&
• • •

&a/in#s account +urrent -ccount Term Deposits

Loa'&
• •

Personal .oans ,ome .oans
68

•

.oan -#ainst Property

I'Ae&tme't SerA,ce&
• • • •

Demat Mutual 8und !nsurance Gold

Co'Ae',e'ce !a'(,'@
• • • •

Net )ankin# Mo$ile )ankin# Phone )ankin# -TM Network

$.N%A! NATIONAL !ANK
The Punja$ National )ank or PN) is one of the well known commercial and $ankin# institutions in !ndia. !t is the second lar#est #o/ernment owned and re#ulated commercial $ank in the country and offers specialiAed solutions and financial ser/ices in a num$er of sectors. -round EF million customers are ser/ed $y the $ank on an a/era#e $asis. The customiAed facilities and ser/ices make it a trusted name in the domain of $ankin#.

Gro*t+ of $u'Ja) Nat,o'al !a'(
Punja$ National )ank was re#istered under the !ndian +ompanies -ct on 6C May in the year
69

6GCD and its first office was set up at -narkali )aAaar in .ahore. &ince then1 the $ank has $ecome a #reat name in the field of $ankin# and is /ery much preferred $y the customers for the wide ran#e of its ser/ices. Today1 the $ank has around D1CBD $ranches in around F5D cities. Due to its facilities and ser/ices of hi#h standards1 Punja$ National )ank has also $een the recipient of a num$er of presti#ious awards. !t has $een adjusted as the 3DGth $i##est $ank across the #lo$e accordin# to a recent sur/ey made $y )ankers -lmanac in .ondon. The *conomic Times has also listed the $ank as EGth amon# the premier 7BB companies and the Cth amon# the most trusted $rands in !ndia. The total asset /alue of the $ank amounts to around <&T5B $illion. There is also a su$sidiary of the PN) in the <nited :in#dom. !n addition the $ank also has $ranches in some other cities like%
• • • • •

:a$ul ,onk :on# ;slo &han#hai Du$ai

SerA,ce& of $u'Ja) Nat,o'al !a'(
Punja$ National )ank offers financial solutions and ser/ices in an array of sectors. -ll these ser/ices that are offered keep pace with the chan#in# market trends in order to fulfill the needs and preferences of the customers. &ome of the well known sectors on which the main functions of the $ank are $ased are%
• • • •

Personal )ankin# +orporate )ankin# -#riculture finance ser/ices !ndustrial finance ser/ices
70

• •

Trade financial ser/ices !nternational $ankin# ser/ices

PN) also has commercial relationship with more than 3BB presti#ious international $anks across the #lo$e. !t has the pro/isions of Rupee Drawin# -rran#ements with around 67 e0chan#e companies in the <-* and 6 in &in#apore. !n case of the personal $ankin# se#ment1 the $ank offers customiAed solutions to take care of almost all financial needs of the customers. &ome of the well known ser/ices that are offered in the $ank are%
• • • •

&a/in#s 8und -ccount 8i0ed Deposit scheme +urrent account .oan ser/ices

Punja$ National )ank is also a well known name in housin# loan $enefits. The $ank offers $oth short term and lon# term loans. The rates are also afforda$le and can $e paid within a particular time. The housin# loans are #i/en for a num$er of purposes such as%
• • • •

+onstruction of a $uildin# Purchase of a new house or a flat Purchase of flat or house on a 8irst Power of -ttorney $asis 8or the purpose of repair or reno/ation of a house or a $uildin#

The PN) ,ousin# 8inance sanctions around GB4 of the cost of the project. ,owe/er1 the ma0imum amount is around Rs 7B lakh. The ma0imum loan amount for the purpose of reno/ation and repair is Rs 7 lakh. !n most cases1 the loan is a/aila$le for a period $etween 7 and 3B years $efore one $ecomes 57 years of a#e. The interest of the loan is $ased on the reducin# $alance and the principal amount of the loan is also $ased on the repayin# capa$ility of the $orrower.
71

Mutual fu'?& of $u'Ja) Nat,o'al !a'(
The mutual funds of Punja$ National )ank are co/ered under the Principal PN) -sset Mana#ement +ompany. &ome of the well known schemes of mutual funds are%
• • • • • • •

Principal Growth &cheme Principal $alanced 8und Principal !ncome 8und Principal #o/ernment &ecurities 8und Principal !ncome 8und P &hort Term De$t Principal +ash mana#ement 8und Principal !nde0 8und

Ta$le showin# analysis on different parameters%

S.NO

$ARAMETE RS

HDFC !ANK

ICICI !ANK

A/IS !ANK

KOTAK MAHINDR A !ANK

$.N%A! AND NATIONA L !ANK EG7B'!ND! -( 36E'D*., !(

6.

)R-N+,*&

6D63 '!ND!-( 6D6'D*.,! (

3BBC '!ND!-( 6BC ' Delhi( 736C '!ND!-(

6FBBW '!ND!-( FG'D*.,!( DB77 '!ND!-( L*&

3D7 '!ND!-( 55'D*.,!( 66Fappro0. '!ND!-( L*&

3.

-TMs

E.

+,*?<* D*P;&!T );9

L*&

L*&

L*&

72

D.

*-&L !NT*RN*T )-N:!NG ->*R-G* ?<-RT*R.L )-.-N+* &->!NG& -++;<NT >-.<* -DD*D

L*&

L*&

L*&

L*&

L*&

7.

&->!NG& R*G<.-R Rs.6B1BBB '<R)-N /M*TR;( Rs. 71BBB '&*M! <R)-N( &->!NG& M-9 -++;<NT Rs. 371BBB &*N!;R +!T!V*N& Rs. 7BBB N; 8R!..& N!. :!D2& -D>-NTG* -++;<NT Rs. 7BBB

Rs. 6B1BBB '<R)-N /M*TR;( Rs. 7BBB '&*M! <R)-N(

V*R; )-.-N+* Rs.717BB *-&L -++*&& Rs. 71BBB in metro or ur$an centers1 Rs. 317BB in semi ur$an centers and Rs. 61BBB in rural centers. PR!M* &->!NG& -++;<NT Rs 71BBB 'ur$an M metropolitan $ranches( or Rs 317BB 'rural M semi ur$an $ranches(

-+*% Rs.7B1BBB PR;% Rs.3B1BBB *DG*% R&.6B1BBB

PN) PR!D*NT &@**P Rs.6B1BBB '<R)-N /M*TR;( Rs. 71BBB '&*M! <R)-N( T;T-. 8R**D; M &->!NG& 8<ND &-.-RL -++;<N T Rs. B

73

&<P*R &->!NG& -++;<NT 5. R-T* -PP.!+-).* ;N &->!NG& -++;<NT F. G. Rs. 37BBB &a/in# -/c E.7B4 on re#ular sa/in#s account &a/in# -/c E.7B4 and interest paid ,alf Learly yes 8ree ?uarter yes E.7B4 and interest paid ?uarterly on easy access account yes 8ree ?uarter yes E.7B4 E.74 pa

Gold de$it card Les &tatement 8ree ?uarter char#es 3D hour phone $ankin# Les

Les 8ree ?uarter Les

Les 8ree monthly Les

C.

The followin# list of the fi0ed deposits that was created $y interactin# with the customers as what they prefer most of the listed $anks. The customers said that they are not aware a$out the 8Ds of :otak Mahindra $ank and don2t mind Punja$ national $ank as they trust the $ank with all of its products. The comparison is made on the $asis of what customers think was $eneficial.

8!9*D D*P;&!T& -ccount name 8i0ed Deposit Re#ular 8i0ed Deposit )ank Name !+!+! )-N: Type of account 8!9*D D*P;&!T& ,D8+ )-N: 8!9*D D*P;&!T&
74

Rate C.74

Minimum

!nterest paid

$alance/deposits Rs.6B1BBB ?<-RT*R.L

G.F74

R&. 6B1BBB

?<-RT*R.L

8i0ed Deposit

-9!& )-N:

8!9*D D*P;&!T&

3.7B4

R&. 6B1BBB

?<-RT*R.L

ANAL0SIS C
@hen discussed with customers re#ardin# their preference for the /arious Pri/ate )anks the analysis from that was that !+!+! )ank and ,D8+ are the two leadin# pri/ate $anks of the city. This is mainly $ecause. • • These two $anks are the first pri/ate $anks which has opened their $ranches in the city. !+!+! and ,D8+ $rands name1 play an important part in their success in the city $ecause people usually #o throu#h the name the company. The difference lies within the few parameters that seem to differ with in the $ankin# structure of different $anks especially pu$lic sector $ank i.e. Punja$ national $ank and pri/ate sector $anks i.e. ,D8+1 !+!+!1 -9!& and :;T-: M-,!NRD- $ank. !f one closely o$ser/es there is not major difference $etween the ser/ices offered in these $anks what differs is their $ankin# culture and how they offer their ser/ices. The factors which distin#uish are • • • • • • )usiness process re en#ineerin# Proper and timely mana#ement of chan#es .ar#e num$er of transactions and chan#es !nternal commitment -/aila$ility of ade"uate finance &trate#ic ,uman Resources chan#es
75



P&< $anks which are a dominatin# force in the !ndian $ankin# system ha/e lacked a proacti/e ,R en/ironment. ,owe/er1 much has chan#ed with the openin# of other sectors and increased competition from newer $anks in the system. &o Punja$ national $ank has under#one a drastic chan#e with in time and has $een #i/in# a serious competition to ,D8+ $ank. There is a realiAation that skill de/elopment is e0tremely important for staff retention as well as the "uality of manpower1 and all $anks whether ,D8+ or any other $ank had in place a system of continuous professional learnin#. few $anks like :otak Mahindra are time and a#ain in the process of re/ampin# their trainin# processes and their emphasis is $ein# laid on hard as well as soft skills. )anks are keen to tie up with e0ternal trainin# a#encies for in house trainin#. Now if one look at the retail products offered at different $anks then the sa/in#s account facility offered at Punja$ national $ank finds more takers in the middle le/el earnin# #roup of people like for e0ample the total freedom sa/in#s account of PN) where there is no need to maintain an a/era#e "uarterly $alance and e/en the fees that is deducted for other accounts where the customers are not a$le to maintain a/era#e $alance is much less than ,D8+1 !+!+!1 -9!& and :;T-: M-,!NDR- $ank. :otak Mahindra $ank seems to tar#et customers of hi#her lea#ue as they don2t ha/e many $ranches in Delhi as compared to ,D8+1 !+!+!1 and -9!& $ank. They ha/e their own e0clusi/e class of customers and they market their products like that only. The current and sa/in#s account of :otak Mahindra $ank is marketed with terms likeJ the powerJ to ha/e an e0clusi/e $ankin# ser/ice. Now ,D8+ $ank has a /ery special way of treatin# its customers $y #i/in# them the con/enience of imperia customer pro#ramme1 classic customer pro#ramme and preferred customer pro#ramme. This helps the $anks in attractin# more and more customers for the retail products. This is referred as priority $ankin#. The plus current account of ,D8+ $ank is preferred more $y the customers the minimum $alance re"uired to $e paid is R&. 61 BB1BBB and the interest paid are nil. Punja$ national $ank actually has $een a$le to de/elop a more trustworthy relation with the customers since it2s a pu$lic $ank and does not char#e much for not maintainin# -?). ,D8+ $ank has $een a leader clearly amon# the pri/ate $anks and has its own stron# and loyal customer $ase !+!+! $ank has $een #i/in# a close competition to ,D8+ $ank as told $y the
76

customers. -fter the customers were contacted !a'( FD emer@e& out to )e t+e mo&t Breferre? option for the clients to in/est in the market after real estate. This is also dependant on /arious reasons which are #i/en as under% o *asy loans a/aila$le a#ainst the )ank 8i0ed Deposits. o +lients can withdraw their money at almost any time #i/in# them the option of maintainin# .i"uidity. o @ith all this )ank 8D also pro/ides a decent return concerned the minimum of the risk in any of the a/aila$le in/estment instruments. o @e ha/e seen a$o/e in the analysis of nationaliAed /s. pri/ate $anks that nationaliAed $anks are the more preferred ones1 this also adds wei#ht to clients preferrin# )ank 8Ds due to trust $uild durin# all these years. T+e' 'eEt Breferre? oBt,o' for t+e cl,e't& ,& .',t l,'( Bla'KI'&ura'ce . -nother thin# that was noted were that majority of clients preferred the short term fi0ed deposits as their fa/orite option. Most of the clients use the ideal money which they ha/e to meet the uncertainty or short term re"uirement. Now if we talk a$out insurances the preference of the people who had in/ested in the insurance sector1 it is /ery clear that .!+ is the leadin# company in this field1 $ecause of many factors such as% .  .!+ is leadin# in this field mainly1 $ecause it is the first mo/er in the insurance sector and there$y had captured most of the market.  .!+ had a /ery #ood network of a#ents1 who can $e seen as the $ack $one of the company.  .!+ had pro/ided $etter ser/ice in the past which had made trust in the mind of the people and for that reason they feel more comforta$le.

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

,D8+ and !+!+! are the second in this field mainly $ecause they had opened their $ranches recently $ut ha/e made pro#ress in capturin# a si#nificant share of the market and in the future the ratio is decrease1 $ecause there are many opportunity to cash in $y $oth the company .

The features that distin#uish ,D8+ $ank from other $anks1 accordin# to the customers are% 6. The customers feel that ser/ices across different $ranches of the ,D8+ $ank differs since they ha/e different $ranches for /arious departments for e0ample Dwarka sector 33 which deals with /isa ser/ices $ecause of this the customer ha/e an ad/anta#e of con/enience $ankin# 3. +ustomers ha/in# lon# relationship with $ank rely a lot on the in/estment ser/ices and ad/ices offered $y the $ank since $ank throu#h one or the other way try to #i/e some $enefits to such customers1 the $ank named them as Iclassic customersJ. E. +ustomers call ,D8+ $ank as friendly and relia$le $ank $ecause of its +RM ser/ices D. ,D8+ $ank is also re#arded as a leader in deployin# technolo#y in its ser/ices which makes it different from other $anks. 7. ,D8+ $ank has $ecome relati/ely lar#e especially $y the /irtue of introducin# /arious schemes for the $enefits of the customer. 5. ,D8+ $ank has created a $rand e"uity that reflects trust and inte#rity. F. ,D8+ $ank has also tar#eted kids $y openin# accounts for them and $y introducin# kid2s ad/anta#e plan under mutual funds. Due to these efforts of ,D8+ $ank lots of kids ha/e $ecome loyal customers of ,D8+ already. G. ,D8+ $ank has positioned itself more than just $ank. !t is already percei/ed as Icomprehensi/e financial supermarketJ. -ccordin# to the customers they ha/e created a /irtual market place on the net.
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C. ,D8+ $ank -TM ser/ices ha/e $een considered remarka$le $y the customers. The $ank tries to handles the complaints it recei/es re#ardin# -TMs and D*)!T card as efficiently and effecti/ely as possi$le. This is $ecause one will find ma0imum takers of ,D8+ $ank2s -TM cards. 6B. !n a nutshell what differentiates ,D8+ $ank is Ithe a$ility to add /alueJ1 the I#lo$al ima#eJ and the personality of the $ank i.e. $ein# dynamic1 inno/ati/e and /i$rant .

FINDINGS9
 Sale& Staff ?,ffer ,' t+e,r ,'format,o' a'? TeleB+o'e Call,'@ )y t+e HDFC )a'( ICICI )a'( a'? ICICI Bru?e't,al a'? HDFC &ta'?ar? l,fe A?A,&or& are ?,&tur),'@ t+e cl,e't&9 There is e0cess callin# $y the employee of the ,D8+ and !+!+! $anks and $y the -d/isors of insurance1 and this is one of the reasons why they are not interested in the $ank sometimes1 and the other reason is that most of the time the sales staff does not #i/e what they promise1 their information #enerally differs from the $ankers in the $ank this create a $ad impression a$out the company.  I' t+e )a'(,'@ &ector $u'Ja) 'at,o'al )a'( ,& t+e )a'( ma'y cu&tomer& Brefer 9 PN) is the most preferred $ank $ecause of its $rand e"uity and also $ecause it has an old and loyal customer which has pro/ed to $e a #reat ad/anta#e.. There are se/eral thin#s which fa/or them includin#%   The company2s ima#e in the mind of the people The company2s successful track record in pro/idin# life lon# ser/ices to its customers
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 

- /ery #ood a#ent $ase *0cellent relationship with clients

 A lar@e $art of t+e Mar(et yet to )e coAere? )y Mutual Fu'?&9 .ar#e parts of the people do not know a$out the mutual funds in/estment and insurance and other retail products schemes $ut they ha/e the power of Money. These clients should $e cash in $y the ,D8+ $ank.

SERVICE MARKETINGF ANAL0TICAL ST.D0 ON THE !ASIS OF HDFC !ANK
SerA=ual mo?el of mar(et,'@
The &er/ice ?uality Model or &er/?ual model is used to measure the differences $etween consumers2 perception and e0pectation of ser/ice "uality. -ccordin# to the ser/"ual model there are fi/e #aps% I GaB refers to the difference $etween customers2 e0pected ser/ice and mana#ement2s perceptions of customers2 e0pectations. This #ap means that mana#ement may not correctly percei/e customer e0pectations. II GaB refers to the difference $etween mana#ement perceptions of customers2 e0pectations and ser/ice "uality specifications. This #ap means that althou#h the people in mana#ement le/el may percei/e the correct e0pectations of the customers1 they may not ha/e suita$le and sufficient ser/ice "uality specifications. III GaB refers to the difference $etween ser/ice "uality specifications and the real ser/ice deli/ery.
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This #ap means that althou#h the ser/ice pro/iders may ha/e suita$le and sufficient ser/ice "uality specifications1 they may not ha/e the satisfactory ser/ice deli/ery in the real situation. That may $e $ecause ser/ice pro/iders lack well trained employees to deli/er satisfactory ser/ice. IV GaB refers to the difference $etween the ser/ice deli/ered and e0ternal communication a$out the ser/ice with customers. That is1 the ser/ice pro/iders may not ha/e suita$le and sufficient communication with the customers or the ser/ice pro/iders may ha/e commitments that e0ceed what they can do or they may not sufficiently inform the customers of what they ha/e done. V GaB is the difference $etween consumer e0pectation and their perception of ser/ice "uality measured $y the difference $etween what customers e0pect and what customers percei/e a$out the ser/ice. !n addition1 #ap 7 is a function of #ap 61 #ap 31 #ap E1 and #ap DN that is1 Gap 7X f '#ap61 #ap31 #apE1 #apD(. This means that the ser/ice "uality is closely related to mana#ement perception1 marketin#1 personnel mana#ement1 communications with customers1 ser/ice specifications and deli/ery.

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8i#ure &er/?ual model

82

GA$ I -s e0plained $efore1 this #ap means that the mana#ement is not a$le to correctly meet the customers2 e0pectations. ,D8+ $ank main ser/ice focus is deli/erin# e0cellent ser/ice for the customers. !nfact when in"uired from the customers of the $ranch most of them claim that ,D8+ $ank ser/ice is at par than other $anks. Many of the $ank customers ha/e $een with the $ank since a lon# time. The customers ha/e their loyalty towards the $ank and e/en ha/e trust with the $ankers in the $ank. -nother #ood point a$out the ser/ice is that mana#ement is always there for customer2s ser/ice in most of the $ranches of the $ank one would easily find the $ranch mana#ers a/aila$le. !n my /iew the mana#ement is a$le to correctly percei/e customers e0pectations. The customers of the ,D8+ $ank ha/e $een a$le to de/elop their e0pectation from the $ank on the $asis of mostly word of mouth communication from their relationship mana#ers in ,D8+ $ank or throu#h their own relati/es like for e0ample many of the customers of the $ranch came to in/est in the endowment plan1 one of the insurance scheme offered $y ,D8+ $ank1 $ecause they were #i/en references $y their senior citiAens in the family. Thou#h if one o$ser/es Punja$ National $ank then their customers de/elops their e0pectations more on the $asis of their needs and past e0perience. ,D8+ $ank is a$le to ha/e more or less a clearer perception of customer e0pectations. GA$ II9 +ustomer /alue is percei/ed as one of the principal dri/ers of customers satisfaction which in turn act as a key determinant of repurchase and ultimately of customer retention and loyalty. Thou#h ,D8+ $ank has clear perceptions a$out what customers e0pect from them what this #ap discusses is that whether ,D8+ $ank has suita$le specifications in the ser/ice $asically it talks a$out the ser/ice desi#n. Now in order to deli/er customer satisfaction ,D8+ $ank has personal $ankin# pro/isions for the customers1 there is a Irelationship mana#erJ assi#ned to the customers who look into the customers $ankin# needs also almost e/ery $ranch of ,D8+ $ank has a ItellerJ who #uides the customers. ,owe/er1 it cannot $e denied that there is no scope for impro/ements. @hen contacted the customers they seems to $e satisfied with the customer ser/ice they e0perience in the $ank.

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GA$ III Most of the complaints that $ankin# industry recei/es is in reference with this #ap. There seems to $e a discrepancy within the sales staff. The sales staff of the $ank seems to make promises which they fail to deli/er later. &o what is re"uired is to $e a$le to ha/e a more trained sales staff which has a more clear understandin# a$out each and e/ery product area in which he/she deals so that they can deli/er a more satisfactory ser/ice to the customers. ,D8+ $ank seems to suffer from this #ap at certain le/el. GA$ IV ,D8+ standard life has a /ery stron# e0ternal communication $ut most of the retail products of the $ank lacks in this. Thou#h ,D8+ $ank2s fi0ed deposits seems to $e a pull product rest most of the products are push products. ,D8+ $ank with time has made considera$le efforts to market its products to the customers with ad/ertisin# like $i# /ans ha/in# .+D screens displayin# the products of the $ank. Recently ,D8+ $ank has $een tryin# to #et more and more customers for its loan products. !t is lookin# for a customer $ase in retail as well as in corporate. ,D8+ $ank has in/ol/ed itself into this type of marketin# $ut there are not much ad/ertisements one find a$out ,D8+ $ank retail products on tele/ision as compared to !+!+! $ank which carefully markets it sa/in#s account as well as the personal $ankin# e0perience for the customers. @ith customer and the $ank people interaction ! was a$le to identify certain key words which the customers look for while fulfillin# their $ankin# needs and what most of the $anks promises a$out. These are $asically the parameters $y which the customers as well as the $ank mana#ement measures ser/ice. These are as follows% • • • • • • • • Relia$le 'consistently do what $ank say( Responsi/e 'cheerfully do what $ank say( +ompetent '$ank mana#ement has knowled#e and e0pertise( -ccessi$le '$ank mana#ement is a/aila$le to talk to( +ourteous 'treat with respect( +ommunication 'listens carefully and e0plains carefully( +redi$le 'honest and trustworthy( &ecurity 'information of customers kept pri/ate and confidential(
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• • • • • •

*mpathy 'understands customers /iews and show #enuine interest( Tan#i$le 'maintains #ood $ank en/ironment and #ood staff( &ur/ey needs 'asks and understands needs and e0pectations( Need fulfillment 'needs and e0pectations are identified and met( Mistakes 'mistakes are properly corrected( Treatment 'treat the customers the way they should $e(

85

FO.R =ua?ra't D,a@ram
The dia#ram is used to e0plain the relation of the /arious employees with the $ank. !t helps to understand that who pro/es to $e star for the $ank and who pro/es to $e a dud.

Star& $er&o'al )a'(er& Relat,o'&+,B ma'a@er& Sale& &taff

Du?&

Staff out&,?e )a'( loo(,'@ for curre't accou't a'? &aA,'@& accou't cu&tomer&

Teller ATM a'? De),t car? &erA,ce emBloyee&

'ot aBBl,ca)le

Goo? BeoBle
Star&

'e@at,Ae emBloyee&

The dia#ram puts personal $ankers and relationship mana#ers as stars for the company $ecause they ha/e $een pro/idin# ,D8+ $ank with re/enue. )y maintain# a healthy relation with the customers they attract the customers for new in/estments and new schemes infact in some cases

86

it was o$ser/ed that the customers enter into in/estment deal $ecause of their relationship mana#er or personal $anker. Goo? BeoBle Now the teller and the $ankers which help customers in -TM and De$it card ser/ices ha/e $een re#arded as #ood people $ecause they are willin# to help the customers in any way possi$le. &ome of the $ranches of ,D8+ $ank like the one in +onnau#ht place ha/e a lar#er customer $ase for the -TM and De$it card ser/ices. The stars and #ood people are important for ,D8+ $ank $ecause they are the one $rin#in# customers1 $asically their main function is ac"uisition of new customers and retainin# them. Du?& C Duds are $asically referred to those employees who are not workin# properly or are not successful. The sales staff and the staff e0clusi/ely workin# for current and sa/in#s account does not ha/e correct knowled#e of information re"uired for openin# the accounts in the $ank and it results in dissatisfaction of customers. This happens $ecause of the difference of opinion $etween those in the $ank and those outside the $ank. There ha/e $een lots of complaints re#ardin# that sales staff promised somethin# and it did not happened. Ne@at,Ae emBloyee&9 Ne#ati/e employees are $asically those who work a#ainst the nature of $ankin# or who are not interested in attractin# customers. Duds are different from them $ecause thou#h they do not work properly $ut they ha/e all intentions to attract new customers and #i/e re/enue to $ank $ut they lack in the way they work and their knowled#e a$out their work. )ut ne#ati/e employees on the
87

other hand are not interested in #i/in# any $usiness to the $ank. ! personally did not find any employee with those intentions in the $ank. This dia#ram was constructed in order to make an o$ser/ation a$out who are the employees that are most important for the $ank. &ince $ank is one of the important e0amples of ser/ice industry1 and these employees $ecomes the first encounter with the customers1 representin# $ank. This encounter helps customer in decidin# whether he/she wants to a in/estment relation with the $ank or not.

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ANAL0SIS AND RECOMMENDATIONS
The ser/ice sector has assumed #reater economic importance o/er the past decade. !ndia is fifteenth in ser/ices output. +urrently1 $ankin# in !ndia is #enerally fairly mature in terms of supply1 product ran#e and reach e/en thou#h reach in rural !ndia still remains a challen#e for the pri/ate sector and forei#n $anks. !n terms of "uality of assets and capital ade"uacy1 !ndian $anks are considered to ha/e clean1 stron# and transparent $alance sheets relati/e to other $anks in compara$le economies in its re#ion. The elimination of this waste and meetin# customer e0pectations are the major challen#es facin# mana#ers these days in the ser/ice sector. This is why "uality impro/ement is a /ital concern for many ser/ice or#aniAations. The ser/"ual model represents a different approach to "uality impro/ement. ?uality is increasin#ly $ein# seen as a key strate#ic differentiator within the financial ser/ices sector1 with most major players undertakin# some form of "uality initiati/e. 8rom the customers2 perspecti/e1 ser/ice "uality si#nificantly influences customer satisfaction and customer satisfaction has direct influences on purchase intentions. Research findin#s indicate that ser/ice "uality influences purchase intentions more than does customer satisfaction. !t is therefore imperati/e on the part of $ankers to stress upon $oth ser/ice "uality and customer satisfaction1 in order to raise the purchase intentions of customers.

SerA,ce =ual,ty a'? Cu&tomer Sat,&fact,o'F
The customer satisfaction paradi#m posits that confirmed standards lead to moderate satisfactionN positi/ely disconfirmed 'e0ceeded( standards lead to hi#h satisfaction1 and ne#ati/ely disconfirmed 'underachie/ed( standards lead to dissatisfaction. The su$ject of continued 'and considera$le( de$ate in the marketin# literature1 the distinction and association $etween ser/ice "uality and customer satisfaction remains at the forefront of many academic and practitioner oriented research endea/ors. &er/ice "uality and customer satisfaction do e0hi$it independence and are indeed different constructs from the customer2s point of /iew. - small step in unearthin# and understandin# the constructs of ser/ice "uality and customer satisfaction and their implications on competiti/e fruition has $een put forward in a study on $ankin# ser/ices. The comparati/e analysis on the
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ser/ices amon# the major $ankin# se#ments re/ealed that the ,D8+ and !+!+! $anks ha/e topped the list in terms of deli/erin# "ualitati/e customer ser/ice. !t has also $een o$ser/ed that the pri/ate sector $anks compete successfully with forei#n $anks and make efforts to pro/ide $etter $ankin# ser/ices in tune with the chan#in# #lo$al competiti/e scenario. ,owe/er Punja$ national $ank has $een credit $y the customers as $ein# the most trustworthy $anks as it pro/ides /arious features for the lar#er se#ment of customers. Throu#h continuous interaction with the customers and the $ank people it has $een o$ser/ed that customers of $anks such as !+!+!1 -9!&1 ,D8+1 PN) and :;T-: M-,!NDR- were either in ser/ice or self employed. Many customers of PN) were found to $e retired from their respecti/e profession. Thus they recommended that $anks should en/isa#e a strate#y to ser/e customers with different occupations M educational $ack#rounds. )anks must also ad/ance their customer centric strate#ies $y pro/idin# satisfaction throu#h ser/ices leadin# to $etter relationship $uildin# and earnin# profits for the $anks. ,owe/er it also depends on the location of the $ranch like for e0ample a $ranch situated in the residential area will ha/e more customers for pensions like in Dwarka they were more customers for pensions and other senior citiAens ser/ices while in $ranches like +onnau#ht place or :.G. Mar# one will find customers for other needs as well. !t has $een o$ser/ed that poor ser/ice "uality in pu$lic sector $anks is mainly $ecause of deficiency in tan#i$ility1 lack of responsi/eness and empathy. Pri/ate sector $anks1 on the other hand1 were found to $e more reformed in this re#ards. -$o/e all1 the ,D8+ $ank is relati/ely close to the e0pectations of their customers with re#ard to /arious dimensions of ser/ice "uality. 8urther1 the study re/ealed that there e0isted ser/ice "uality /ariation across demo#raphic /aria$les1 and su##ested that mana#ement of $anks should pay attention to potential failure points and should $e responsi/e to customer pro$lems. Now in order to deli/er e0cellent ser/ice the necessity of employee contacts and e/aluation of ser/ice e0periences has $een /ery effecti/e. The pro$lem of relia$ility in /arious measures of ser/ice "uality1 and the perception responses has hi#h relia$ility as compared to e0pectation responses. &er/ice "uality in $ankin# implies consistently anticipatin# and satisfyin# the needs and e0pectations of customers. ,owe/er1 e/aluatin# ser/ice "uality sometimes is not an easy task due to the intan#i$le nature of ser/ices.
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Mea&ureme't of EEBectat,o' a'? $erceBt,o' of SerA,ce =ual,tyF
There are many reasons for poor ser/ice "uality across industries. ;ne reason may $e an ina$ility to collect or use collected data. 8or e0ample1 in direct opposition to consumer opinion1 $ank e0ecuti/es percei/e themsel/es and their companies to $e doin# an e0cellent jo$. This apparent discrepancy of opinion creates "uestions a$out $ankin# ser/ice information #atherin# effecti/eness. )ecause percei/ed "uality is conceptualiAed as the customerKs o/erall attitude towards the e0cellence of ser/ice1 many researchers ha/e relied on a sin#le o/erall "uality "uestion1 measured on a scale ran#in# from poor to e0cellent .More #enerally1 howe/er1 ser/ice "uality perception is thou#ht to $e $ased on se/eral "uality attri$utes . These are% relia$ility reflectin# the technical "uality of the outcome of the ser/ice encounter1 i.e. what is recei/ed $y the customerN and tan#i$les1 responsi/eness1 assurance and empathy reflectin# the functional "uality of the process itself1 i.e. how the ser/ice is pro/ided. &*R>?<-. was deemed Sto $e applica$le to retail and $usiness ser/ices and rele/ant for $ankin# ser/icesS.

Recomme'?at,o'&
The $ank needs to work in a way that it can communicate the features of its products to the customers in the most profita$le way which would $e cost effecti/e for the $ank.

Hou&e*,Ae& a& t+e tar@et cu&tomer&9
The housewi/es can $e tar#eted $y the sales staff $y e0plainin# them to earn money from their monthly day to day e0penses money $y openin# sa/in# account in ,D8+ $ank. This is possi$le as with effect from 6st -pril 3B6B that the $ank interest rate is earned on daily $alance. *arlier it uses to $e half early on the lowest $alance maintained durin# the period. <nder this scheme a housewifeYcustomer will open a $ank account with initial deposit of Rs. 6BBBB alon# with an amount e"ual to total e0pected e0penses to $e incurred $y himYher durin# the month. -s a sample model the tar#et customersYfamilies of Dwarka residents ha/e $een taken into account on an a/era#e the e0penses incurred $y a family in Dwarka ha/in# own house or rented ha/e $een worked out separately as under%

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S.'o. 6. 3. E. D. 7. 5. F. G. C. 6B. 66.

Deta,l& of EEBe'&e& "eEBecte?# Rent *lectricity1 waterM maintenance char#es &weeper char#es Maid char#es +ar wash Groceries and toiletries &chool fees of two kids to $e paid "uarterly '6BBBBZE( >e#eta$les and fruits Milk 'URs.EBZ3( PetrolYtransport Miscellaneous e0penses T;T-.

Fam,ly o' re't 651BBB EBBB 67B FBB 67B EBBB EBBBB EBBB 6GBB EBBB D7BB 57EBB

Fam,ly +aA,'@ o*' +ou&e EBBB 67B FBB 67B EBBB EBBBB EBBB 6GBB EBBB D7BB DCEBB

The a$o/e ta$le clearly re/eals that e0penses mentioned at serial no. 6 to 5 are too incurred once in a month and e0pense at serial no. F will $e incurred "uarterly where as remainin# e0penses are to $e incurred on day to day $asis. -ccordin#ly a family on an a/era#e will initially deposit in its sa/in# account Rs. FBBBB which will include minimum $alance of 6BBBB i.e. -?) for ,D8+ $ank. The interest earned on a$o/e deposits after takin# into account the e0penses incurred $y the family once in a month1 "uarterly and on day to day $asis are projected as under% a( !nterest on minimum $alance of Rs 6B1BBB% Rs 3G.FF $( !nterest on item at serial num$er F% Rs G5.EB c( !nterest on e0penses incurred once in a month% Rs 55.65 d( The other e0penses which are to $e incurred on day to day $asis1 it would $e ad/ised to concerned family/customer to withdraw money on weekly $asis so that interest can $e earned as under% '6( 8irst week 'Rs CDEB after withdrawin# Rs 3GFB for weekly e0penses(% Rs 7.D3 '3( &econd week 'Rs 575B )alance(% Rs E.FF 'E( Third week 'Rs E5CB )alance(% Rs 3.63
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'D( 8ourth week 'Rs G3B )alance(% Rs B.DF Z !nterest has $een calculated $y usin# daily $alance multiplied $y no. of days multiplied $y interest rate of sa/in# account i.e. E.7/E57BB This way a family will earn Rs 6CE.B6 per month i.e. 6CE.B6 Z 63 X 3E65.63 per year out off the e0penses incurred $y family. This scheme can $e named as I*-RN*D @,!.* &P*ND!NGJ. The concept is re"uired to $e ad/ertised properly amon# the dwarka families for which sales personnel can specially $e deputed to /isit personally to the families and moti/ate them for openin# accounts and e0plainin# them the $enefits. The dwarka su$ city pro/ides for housin# for a$out 7 lakh families. Many of these families ha/e not yet $een a$le to mo/e into their flats $ecause of one or the other reason1 howe/er with the inception of metro rail system1 thousands of families ha/e $een residin# in the su$ city. This clearly su##ests there is hu#e scope for tar#eted customers. To $e on safer side it is presumed that at least 64 of the clienta#e could $e con/inced for openin# the account under a$o/e scheme which would amount to 7BBB customers/sa/in# accounts.

V,a),l,ty for HDFC !a'( for t+,&F
6( !nitial deposit per customer% Rs FB1BBB and e0pected num$er of customers i. e. is 7BBB1 $ank will #et deposit of Rs E7BBBBBBB. 3( )ank will #i/e interest to customers U E.74%6337BBBB E( &alary of sales personY administrati/e e0penses% 67BBB'appro0.( D( Total e0penses of $ank '3WE(%63357BBB 7( The $ank can #enerate re/enue $y in/estin# the initial deposit amount of Rs. E7BBBBBBB $y choosin# the $est re/enue #eneratin# scheme. -s a role model it is presumed that this amount will $e in/ested in loan scheme U G.3741 thus would #enerate Rs. 6B6B537BBBBBBBBBB. 5( )ank will earn '7 D(% Rs 6B6B53DCCGFFE7BBB. N;T*% the fi#ures taken for this mathematical calculation are all appro0imation /alue and are e0pected $ut it clearly re/eals that it is a $eneficial scheme for the ,D8+ $ank.

Loo(,'@ for t+e ot+er Bote't,al cu&tomer&
93

The owners of IkiranaJ stores or #roceries stores ha/e lot of money $ut ha/e little knowled#e of as to how to in/est them producti/ely for this the sales staff should #o to them instead of waitin# for them to come to the $ank. The sales staffs that #enerally wait for the customers can actually prepare a data$ase of the customers and try to e0plain them the products that $est suit their needs rather randomly callin# people. Thus they can $e the other tar#et customer and can $e worked upon the a$o/e mentioned way.

G,A,'@ ,'ce't,Ae& for all reta,l Bro?uct& to emBloyee&
The employees should $e #i/en incenti/es for e/ery customer con/ersion in retail products dependin# upon how much ha/e in/ested $y the customer. This will moti/ate the employees to attract customers not only for insurance $ut other products also.

ATM& K eEclu&,Ae &mall )ra'c+e&
,D8+ $ank can place its -TM machines or open small $ranches e0clusi/ely in the corporate or#aniAations this will increase their market penetration in the wholesale customers as well. This actually will help the $ank spread a word a$out its retail products to the customers $y placin# small $rochures of retail products for the tar#et customers. )y openin# small $ranch e0clusi/e for the or#aniAations mi#ht results in spreadin# the features of the insurances or other accounts of ,D8+ $ank.

CRM'eEt $rof,le&
The +RMne0t Profiles can $e used in a way to encoura#e more and more customers. The data$ase can $e properly created $y carefully makin# note and o$ser/ations from the profiles of the customers.

More ,'Ae&tme't ,' $la&t,c mo'ey cu&tomerH& )a&e
The idea $ehind this is that the $ank #i/es credit card swipe machines to the wholesalers and retailers so that they use the credit card of the $ank. -s a result $ank #ets the wide list of customers of wholesalers and retailers. This will surely result in $ulk sales for the $ank. Throu#h
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this $ank can create #roup transactions $y sellin# products to wholesalers and retailers $oth. This will encoura#e retail products of the $anks i.e. credit cards and de$it cards and $ank will #et new customers. This will work $y meetin# the wholesalers first and #ettin# details a$out their retailers and then e0plainin# the $enefits of usin# this transaction. This is actually indirect marketin#. !t means communicatin# $enefits of your products to its customers.

Start Ma(,'@ L,'( *,t+ t+e Nat,o'al,-e? !a'(& to @et more !u&,'e&&
@hen we look at the &mall city1 most of the customers prefer and ha/e their account in nationaliAed $anks1 $ecause this $anks are #i/in# #ood ser/ice for many years and !f ,D8+ can make tie up with the employees of this $anks then they can $e a$le to #et more $usiness from this contact.

Rural )a'(,'@
Rural markets are seen as the new profita$le in/estment for $anks in !ndia with $anks like !+!+! $ank ha/e $een a$le to populariAed micro financin# in which they did a tie up with the &,G $ut what needs to look into is that how successful the $anks ha/e $een in doin# so. This type of $ankin# is increasin#ly $ein# populariAed as social marketin#. !nfact e/en ,D8+ $ank started with )<&!N*&& +;RR*&P;ND*NT M;D*. to make the /ia$ility of $anks $ranches in the un$anked areas of !ndia and did a tie up with NG;2& and post offices. )ut the success of these models is still "uestioned. @hat ,D8+ needs to do is o try to penetrate more into rural $ankin# so that it will $e a$le to ac"uire a lar#er customer $ase.

OBBortu',t,e& a'? C+alle'@e& for $layer&
The $ar for what it means to $e a successful player in the sector has $een raised. 8our challen#es must $e addressed $efore success can $e achie/ed. 8irst1 the market is seein# discontinuous #rowth dri/en $y new products and ser/ices that include opportunities in credit
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cards1 consumer finance and wealth mana#ement on the retail side1 and in fee $ased income and in/estment $ankin# on the wholesale $ankin# side. These re"uire new skills in sales M marketin#1 credit and operations. &econd1 $anks will no lon#er enjoy windfall treasury #ains that the decade lon# secular decline in interest rates pro/ided. This will e0pose the weaker $anks. Third1 with increased interest in !ndia1 competition from forei#n $anks will only intensify. 8ourth1 #i/en the demo#raphic shifts resultin# from chan#es in a#e profile and household income1 consumers will increasin#ly demand enhanced institutional capa$ilities and ser/ice le/els from $anks.

Nee? to Create a Mar(et9Dr,Ae' !a'(,'@ Sector *,t+ A?eDuate Focu& o' Soc,al DeAeloBme't
The term Ipolicy makersJ used in this thesis1 refers to the Ministry of 8inance and the R)! and includes the other rele/ant #o/ernment and re#ulatory entities for the $ankin# sector. ! $elie/e a co ordinate effort $etween the /arious entities is re"uired to ena$le positi/e action. This will spur on the performance of the sector as a whole. ;ther su##estions could $e% • • • • • */ery $ank should take precautions to keep customers e0perience safe. !t should take continued efforts to safe#uard online $ankin# transactions. The $ank should pro/ide more customer awareness and need of transparency in their dealin#s. The $anks should come up with inno/ati/e ways of ser/ice at their door steps this may $e a costly affair $ut will surely #i/e positi/e results in the lon# run. The $anks should take the initiati/e of trainin# the ad/isors a$out the new schemes from time to time which also makes the ad/isors connected to the $ank. The $anks should also emphasis on the monitorin# of *M! which directly relates to the returns of a loan amount.

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• • •

The company should come up with proper fi0ed deposit plans at this point of time where the market is hi#hly /olatile and the in/estors $ecome /ery cautious at this le/el. The $anks should use $rand am$assadors for e0ample the +*;2s of major companies where the company allocate the funds. This will pro$a$ly ensure proper results. The $anks should focus on the ad/ertisin# strate#y and also the marketin# of the $ank product.

Co'clu&,o'
97

,D8+ $ank has $een the stron# arm of ,D8+ and with continual focus on the customer ser/ice has taken the $ank to new hei#hts in the $ankin# industry. !t is on the $rim of increasin# its customers throu#h attracti/e schemes and offers. The project hi#hli#hted the strate#ies adopted $y the $ank and how it tar#ets customers for retail products. !t also e0plains the products ,D8+ offers with its comparison to the close competitors and their retail products. &ince $ankin# industry now days focuses on ser/ice marketin# so the project was a$le to identify the #aps with the ,D8+ $ank. ,owe/er it cannot $e denied that ,D8+ $ank has $een a pioneer in deli/erin# e0cellent ser/ice to its customers which leads to customer satisfaction ration hi#her and hi#her day $y day.

Refere'ce&
98

www.wikipedia.com www.hdfc$ank.com www.icici$ank.com www.a0is$ank.com www.kotakmahindra$ank.com www.punjan$ational$ank.com www.#oo#le.com

!oo(& -rturo Molina1 Da/id Martin +onsue#ra1 -#ueda *ste$an1 IRelational )enefits and +ustomer &atisfaction in Retail $ankin#J1 !nternational journal of )ank Marketin#1 >ol.371 No.D1 3BBF1 37E 3F6. G.&. &uresh +hander1 +handrasekharan Rajendran1 R.N. -nantharaman1 I+ustomer Perceptions of &er/ice "uality in the )ankin# &ector of a De/elopin# *conomy% - +ritical -nalysisJ1 !nternational =ournal of )ank Marketin#1 >ol 361 No71 3BBE1 pp.3EE 3D3. -llred1 -. and ,... -ddams1 3BB6. &er/ice "uality at $anks and credit unions% what do their customers say[ Mana#in# ser/ice "uality1 6B%73 5B

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