1

INTRODUCTION

Changes in Banking Sector

The face of banking is changing rapidly. Competition is going to be tough and with financial
liberalization under the WTO, banks in India will have to benchmark themselves against the
best in the world. For a strong and resilient banking and financial system, therefore, banks
need to go beyond peripheral issues and tackle significant issues like improvements in
profitability, efficiency and technology, while achieving economies of scale through
consolidation and exploring available cost-effective solutions. These are some of the issues
that need to be addressed if banks are to succeed, not just survive, in the changing milieu.

Challenges Ahead
(i) Improving profitability: The most direct result of the above changes is increasing
competition and narrowing of spreads and its impact on the profitability of banks. The
challenge for banks is how to manage with thinning margins while at the same time working
to improve productivity which remains low in relation to global standards. This is
particularly important because with dilution in banks equity, analysts and shareholders now
closely track their performance. Thus, with falling spreads, rising provision for NPAs and
falling interest rates, greater attention will need to be paid to reducing transaction costs. This
will require tremendous efforts in the area of technology and for banks to build capabilities to
handle much bigger volumes.
(ii) Reinforcing technology: Technology has thus become a strategic and integral part of
banking, driving banks to acquire and implement world class systems that enable them to
provide products and services in large volumes at a competitive cost with better risk
management practices.
The pressure to undertake extensive computerization is very real as banks that adopt the
latest in technology have an edge over others. Customers have become very demanding and
1

banks have to deliver customized products through multiple channels, allowing customers
access to the bank round the clock.

(iii) Risk management: The deregulated environment brings in its wake risks along with
profitable opportunities, and technology plays a crucial role in managing these risks. In
addition to being exposed to credit risk, market risk and operational risk, the business of
banks would be susceptible to country risk, which will be heightened as controls on the
movement of capital is eased. In this context, banks are upgrading their credit assessment and
risk management skills and retraining staff, developing a cadre of specialists and introducing
technology driven management information systems.

(iv) Sharpening skills: The far-reaching changes in the banking and financial sector entail a
fundamental shift in the set of skills required in banking. To meet increased competition and
manage risks, the demand for specialized banking functions, using IT as a competitive tool is
set to go up. Special skills in retail banking, treasury, risk management, foreign exchange,
development banking, etc., will need to be carefully nurtured and built. Thus, the twin pillars
of the banking sector i.e. human resources and IT will have to be strengthened.

(v) Greater customer orientation: In todays competitive environment, banks will have to
strive to attract and retain customers by introducing innovative products, enhancing the
quality of customer service and marketing a variety of products through diverse channels
targeted at specific customer groups.

(vi) Corporate governance: Besides using their strengths and strategic initiatives for
creating shareholder value, banks have to be conscious of their responsibilities towards
corporate governance. Following financial liberalization, as the ownership of banks gets
broad based, the importance of institutional and individual shareholders will increase. In such
a scenario, banks will need to put in place a code for corporate governance for benefiting all
stakeholders of a corporate entity.

(vii) International standards: Introducing internationally followed best practices and

observing universally acceptable standards and codes is necessary for strengthening the
domestic financial architecture. This includes best practices in the area of corporate
governance along with full
transparency in disclosures. In todays globalised world, focusing on the observance of
standards will help smooth integration with world financial markets.

2 COMPANY PROFILE & PRODUCT PROFILE

HDFC Bank was incorporated in August 1994 and currently has an nationwide network of 3,062
Branches and 10,999 ATM's in 1,568 Indian towns and cities. The Housing Development Finance

Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from
the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
sliberalization of the Indian Banking Industry in 1994. The bank was incorporated in August
1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.
MISSION:
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

PROMOTER:
HDFC is India's premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC
has developed significant expertise in retail mortgage loans to different market segments and
also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.
BUSINESS FOCUS:
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

CAPITAL STRUCTURE:

The authorized capital of HDFC Bank is Rs.550 crore.

The paid-up capital is Rs. . 469,33,76,540 .

The HDFC Group holds

23.15%

of the bank's equity and about

17.29 %of

the equity is

held by the ADS Depository (in respect of the bank's American Depository Shares
(ADS) Issue).

Roughly 30.68 % of the equity is held by Foreign Institutional Investors (FIIs) and the
bank has about 4,47,924 shareholders.

The shares are listed on the The Stock Exchange, Mumbai and the National Stock
Exchange.

The bank's American Depository Shares are listed on the New York Stock Exchange
(NYSE) under the symbol "HDB".

Graph No:1 shows stake in HDFC Banks Capital

23%

29%

HDFC BANK
17%

ADS
FIIS

31%

Others

TIMES BANK AMALGAMATION:

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved
by the shareholders of both banks and the Reserve Bank of India, shareholders of Times
Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition
added significant value to HDFC Bank in terms of increased branch network, expanded
geographic reach, enhanced customer base, skilled manpower and the opportunity to crosssell and leverage alternative delivery channels.

DISTRIBUTION NETWORK:
HDFC Bank is headquartered in Mumbai. the Bank has a network of 3062 branches in 1845
cities across India. All branches are linked on an online real-time basis. Customers in over
1397 locations are also serviced through Telephone Banking. The Bank's expansion plans
take into account the need to have a presence in all major industrial and commercial centres,
where its corporate customers are located, as well as the need to build a strong retail
customer base for both deposits and loan products. Being a clearing / settlement bank to
various leading stock exchanges, the Bank has branches in centres where the NSE / BSE
have a strong and active member base. The Bank also has a network of 10743 ATMs across
India. HDFC Bank's ATM network can be accessed by all domestic and international Visa /
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MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge
cardholders.

MANAGEMENT:
Mr.C V Vasudev took over as the bank's Chairman in July 6 2010.The Managing Director,
Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC
Bank in 1994 was heading Citibank's operations in Malaysia. The Bank's Board of Directors
is composed of eminent individuals with a wealth of experience in public policy,
administration, industry and commercial banking. Senior executives representing HDFC are
also on the Board. Senior banking professionals with substantial experience in India and
abroad head various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting and
retaining the best talent in the industry, the bank believes that its people are a significant
competitive strength.
BUSINESSES:
HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers. The bank has three key business
segments:
Wholesale Banking Services :
The Banks target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking services,

including working capital finance, trade services, transactional services, cash management,
etc. The bank is also a leading provider of structured solutions, which combine cash
management services with vendor and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior product delivery /
service levels and strong customer orientation, the Bank has made significant inroads into the
banking consortia of a number of leading Indian corporate including multinationals,
companies from the domestic business houses and prime public sector companies. It is
recognized as a leading provider of cash management and transactional banking solutions to
corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services:
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to the customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone
Banking, Net Banking and Mobile Bank.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association
with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank
launched its credit card business in late 2001. By September 30, 2005, the bank had a total
card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading

10

players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals
for debit / credit cards acceptance at merchant establishments.
Treasury :
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalization of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.
RATINGS:
Credit Rating:

The Bank has its deposit programs rated by two rating agencies - Credit Analysis & Research
Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit
programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents
instruments considered to be "of the best quality, carrying negligible investment risk". CARE
has also rated the bank's Certificate of Deposit (CD) programme "PR 1+" which represents
"superior capacity for repayment of short term promissory obligations". Fitch Ratings India
Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's
deposit programme, with the outlook on the rating as "stable". This rating indicates "highest
credit

quality"

where

"protection

factors

are

very

high".

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by CARE and
Fitch Ratings India Private Limited and its Tier I perpetual Bonds and Upper Tier II Bonds
rated by CARE and CRISIL Ltd. CARE has assigned the rating of "CARE AAA" for the
subordinated Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA
(ind)" with the outlook on the rating as "stable". CARE has also assigned "CARE AAA
[Triple A]" for the Banks Perpetual bond and Upper Tier II bond issues. CRISIL has assigned
11

the rating "AAA / Stable" for the Bank's Perpetual Debt programme and Upper Tier II Bond
issue. In each of the cases referred to above, the ratings awarded were the highest assigned by
the rating agency for those instruments?
Corporate Governance Rating :
The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced value
creation and corporate governance practices" in future. The bank has been assigned a
'CRISIL GVC Level 1' rating which indicates that the bank's capability with respect to wealth
creation for all its stakeholders while adopting sound corporate governance practices is the
highest.
CORPORATE GOVERNANCE:
HDFC Bank's Corporate Governance Policy has been adopted keeping in mind the
importance of attaining fairness for all stakeholders, as well as achieving organizational
efficiency. HDFC Bank recognizes the importance of good corporate governance, which is
generally accepted as a key factor in attaining fairness for all stakeholders and achieving
organizational efficiency. This Corporate Governance Policy, therefore, is established to
provide a direction and framework for managing and monitoring the bank in accordance with
the principles of good corporate governance.

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AWARDS:
Our single-minded focus on product quality and service excellence has helped us garner the
appreciation of both national and international organizations.

Awards and Achievements - Banking Services

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service
excellence would help us get there. Today, we are proud to say that we are well on our way
towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.

2013
Skoch Financial Inclusion Awards 2013- Organisation of the year

The National Quality Excellence Awards-Best customer service result

NASSCOM CNBCTV18 IT Innovation Award-Best IT driven Innovation in
banking (commercial)

2012
Businessworld Awards for Banking Excellence 2012-Most tech friendly
13

 DSCI Information Technology Award 2012-security leader of the year

Asia money 2012-Best Domestic Bank in india

2011
ICAI Award- Excellence in financial reporting
UTI Mutual Fund CNBC TV 18 Financial Advisor Awards 2011-Best
performing private bank.

2010

FE-EVI Green Business Leadership Award

Celent's 2010 Banking Innovation Award

The Asset Triple A Awards

2009
Asian Banker Best Retail Bank in India Award 2009
Best Innovator of the year award for our MD Mr. Aditya Puri.

2008
HDFC Bank Managing Director Aditya Puri is the CNN-IBN Indian of the
Year
HDFC bank has won the Asian Banker's Best Retail Bank in India 2008

2007

The Asian Banker Excellence in Retail Financial Services Awards -Best Retail Bank
in India

14

 Asian Banker-Our Managing Director Aditya Puri wins the Leadership

Achievement Award for India.

2006

Business Today---- Best Bank in India.

Forbes Magazine-- One of Asia Pacific's Best 50 companies.
Businessworld------ Best listed Bank of India.
The Asset Magazine's Triple A Country Awards------- Best Domestic Bank.

2005

Asia money Awards- Best Domestic Commercial Bank

Asia money Awards- Best Cash Management Bank - India .
The Asian Banker Excellence- Retail Banking Risk Management Award in India.
Hong Kong-based Finance Asia magazine- Best Bank India
Economic Times Awards-"Company of the Year" Award for Corporate
Excellence.
The Asset Triple A Country Awards- Best Domestic Bank in India Region - 2005
The Business Today-KPMG Survey- Best Local Cash Management Bank in India
US$11-100m - 2005
The Business Today-KPMG Survey-"Best Bank in India" for the third consecutive
year in 2005.
Economic Times - Avaya Global Connect Customer Responsiveness Awards-"Most
Customer Responsive Company - Banking and Financial Services 2

15

2.1 Product Profile:

The Indian Banking system has seen sweeping changes over the years. In the short span of
time that they have been in existence, the leading new private sector banks have truly
revolutionized banking in India. There focus on technology and customer convenience has
brought about a paradigm shift in the banking business. While HDFC BANK today has built
stable business that it believes will deliver sustainable value to its stake holders, there are
also many existing opportunities for further growth.
The Banks operation can be subdivided into the following categories:

16

Figure No. 1 Shows sub division of Bank Operation

HDFC PRODUCT PROFILE

ACCOUNTS & DEPOSITS

SAVINGS ACCOUNTS
Regular Savings Account
Savings Plus Account
Savings Max Account
Senior Citizens Account
No Frills Account
Institutional Savings
SALARY ACCOUNTS
Payroll
Classic
Regular
Premium
Defence
Reimbursement Current
Kissan Club savings
Kids Advantage Account
Pension Saving Bank
Family Savings Group
Kissan No Frills account
CURRENT ACCOUNTS

LOANS
Personal Loans
Smart Drafts
Home Loans
Two Wheeler Loans
New Car Loans
Used Car Loans
Express Loans Plus
Gold Loan
Educational Loan
Loan Against Securities
Loan Against Property
Loan Against Rental
Health Care Finance
Tractor Loans
Commercial Vehicle
Working Capital Finance
Construction Equipment
Warehouse Receipt Loans
CARDS
Credit Cards
17

INVESTMENTS & INSURANCE

Mutual funds
Tax Planning
Insurance
General & Health Insurance
Bonds
Knowledge Centre
Equities & Derivatives
Mudra Gold Bar
FOREX SERVICES
Product & Services
Trade Services
Forex Services Branch
RBI Guidelines
Forex Limits
PAYMENT SERVICES
Net Safe
Merchant Services
Prepaid Refill
Bill pay

Plus current Account

Trade current Account
Premium Current Account
Regular Current Account
RFC- Domestic Account
Flexi Current Account
Apex Current Account
Max Current Account
FIXED DEPOSIT
Recurring Deposit
Regular Fixed Deposit

Silver Credit Cards

Value Plus Credit Cards
Gold Credit Cards
Titanium Credit Cards
Womans Gold Credit Card
Platinum Plus Credit Card
Visa Signature Credit Card
World Master Card Credit
Corporate Platinum Credit

Pay Now
InstaPay
DirectPay
Visa Money Transfer
RTGS Funds Transfer
e-Monies Electronic Funds
Excise & Service Tax

Table No. A Shows Product Profile of HDFC Bank

Corporate Salary Account

According to present perspective corporate banking has been evolutes into Corporate
Salary account. When one open a HDFC Bank Corporate Salary Account he gives his
employees more than just an account. They get a host of e-Age Banking facilities
such as Free Net Banking, Phone Banking, Mobile Banking, International Debit Card,
Bill Pay, Demand Drafts and preferential interest rates on Loans.
It has been divided into five parts according to the need of consumers
Following are the Types Of Salary Account of HDFC Bank: Premium Salary Account
Classic Salary Account
Regular Salary Account
Payroll Salary Account

Defense Salary Account

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Premium Account :
A power-packed account for successful salaried professionals, the Premium Salary
account comes with a free International Debit Card and add-on Debit card for life, with
the option of choosing between a Silver or Gold credit card at preferential rates.
Eligibility:
Corporate should have more 50 employees and average salary should more
More than Rs 20,000
Features & Benefits:
Free Personal Accidental Death Cover of Rs. 5 lakhs
Zero Balance Savings Account
Free payable at par cheque book @ 25 cheque leaves per quarter
5 Free transactions per month at Non - HDFC Bank ATMs in India
Free for life Titanium Debit Card for the primary applicant with cash ATM
withdrawal limit of Rs. 50,000/- per day and POS usage limit of Rs.75,000/- per day
Free for life add-on International Debit Card for the Second Holder
Free Personal Accidental Death Cover of Rs. 5 lakhs*
Anywhere Banking across our extensive Branch and ATM network
Free Monthly Account Statements (Option of E-Mail Statements)
Free Passbook facility available at home branch for account holders
Free DDs / MCs up to Rs 25,000 per instrument payable at HDFC Bank branch
locations
Free mobile and e-mail alerts (InstaAlert facility)
Free BillPay (Utility payments)
Free Phonebanking, Mobilebanking and Netbanking facilities
Electronic Funds Transfer options (NEFT / RTGS

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Classic Account:
Eligibility:
The Classic Salary account is a Zero Balance Account which earns you interest on your
savings from salary at a competitive rate fixed by the bank from time to time. There is no
fee applicable for branch transactions and you receive banking statements once every six
months.
Eligibility:
Its providing to the contracted employees of the corporate who is not
permanent .Average salary should more than Rs 5,000.
Features & Benefits:
Zero Balance Savings Account
Free regular cheque book @ 25 cheque leaves per quarter
5 Free transactions per month at Non- HDFC Bank ATMs in India
Free lifetime International Debit Card for the primary applicant with an ATM cash
withdrawal limit of Rs. 25,000 per day and POS usage limit of Rs. 40,000 per day.
Free Half Yearly Account Statements
Free Monthly Account statements by e-mail (Optional)
Free Passbook facility available at home branch for account holders.
Free DDs / MCs up to Rs. 25,000 per instrument, payable at HDFC Bank locations
Free e-mail alerts (InstaAlerts Facility)
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 Free Utility payments facility (BillPay)

Free PhoneBanking, MobileBanking and NetBanking
Electronic Funds Transfer options (NEFT / RTGS)
Bank conveniently with facilities like NetBanking, Phonebanking and MobileBanking
check your account balance, pay utility bills or stop cheque payments all via SMS.
Regular Salary Account:
The HDFC Bank Regular Salary account is a Zero Balance account and comes with
below mentioned features and Benefits.
Eligibility:
Corporate should have more than 15 employee with average salary more than
Rs 10,000.But its variable.
Features & Benefits:
Zero Balance Savings Account
Free payable at par cheque book @ 25 cheque leaves per quarter
5 Free transactions per month at Non- HDFC Bank ATMs in India
Free for life International Debit Card for the primary applicant with ATM cash
withdrawal limit of Rs 25,000 per day and POS usage limit of Rs.40,000 per day.

Add-on International debit card for secondary holder (Free for the first year)
Free Personal Accidental Death Cover of Rs. 1 lakh*
Anywhere Banking across our extensive Branch and ATM network
Free Quarterly Account Statements
Free Monthly Account statements by e-mail (Optional)
Free Passbook facility available at home branch for account holders
Free DDs /MCs up to Rs. 25,000 per instrument payable at HDFC Bank branch
locations
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 Free e-mail alerts (InstaAlerts Facility)

Free Utility payment facility (BillPay)
Free Phonebanking, MobileBanking and NetBanking
Electronic Funds Transfer options (NEFT / RTGS)
Defense Salary Account :
This salary account is for defense personnel employed with the Indian armed forces or
the Indian Navy, Rather than collecting your cheque/cash at the end of the month, you
can instruct your salary wing to start crediting your salary to your Defence Salary
Account.
Eligibility:
Employee should be a defence person.
Features & Benefits:
Zero Balance Saving account
Free Transaction at Non HDFC ATMs In India.
Free for Life Titanium Debit Card for the Primary Account holder with ATM cash
withdrawal limit of Rs. 50,000/- per day and Point Of Sale usage limit of Rs.
75,000/- per day.

Free Add-on International Debit Card for all Secondary account holders.
Free Additional ATM Card for Personnel Below Office Rank (PBORs) even for single
account holders.

Free Family card (Pre-paid card).

Free Personal Accidental Death Cover of Rs. 5 lakhs.
Anywhere Banking across our extensive Branch and ATM network.
Free Quarterly Account Statements.
Free Monthly Account statements by e-mail (Optional).

22

 Free Passbook facility available at home branch for account holders.

Free Unlimited DDs /MCs payable at HDFC Bank branch locations.
Free mobile and e-mail alerts (InstaAlerts Facility).
Free utility payment facility (BillPay).
Free PhoneBanking, MobileBanking and NetBanking.
Electronic Funds Transfer options (NEFT / RTGS).
Bank conveniently with facilities like NetBanking, Phonebanking and
MobileBanking check your account balance, pay utility bills or stop cheque
payments all via SMS.

23

Features or Terminologies or Facilities are provided by HDFC Bank and other banks to their
Customers when they open Salary account with Banks.
1. Anywhere Cash Deposit Facility :
Anywhere cash deposit means Banks customers can deposit their money in any
branch of that specific bank and when he deposit the money immediately cash gets
credit to his account. Customer does not have to wait credit to his account. Customers
can enjoy this facility because of Core banking Solution (CBS).
2. DD (demand draft )Facility :
Demand Drafts are the most popular instruments amongst the different modes of
transferring funds from one place to another.Banks issue demand drafts on their
branch at the place of destination of remittance of funds.A demand draft is drawn by
one branch of a bank on another branch of the same bank and is payable on demand
to the person whose name is mentioned therin or according to his order.Banks issue
drafts remitting funds from one place to another.
3. Cheque Payable at par Facility :
HDFC Bank gives Customers the Exculsive Privilege of free payable at per
chequebook for customers .The payable at par Chequebook entitles Customers to
issue cheque at all locations where HDFC bank have branches.
4. E-fund Transfer Facility:
EFT-Fund any account of any Branch of any bank can be transferred to any other
account of any branch of any bank in another city within 24 hours through
24

INFINET.Presently facility is available where RBI is Conducting Clearing

Work.Present Maximum limit is Rs.2 crore and pet transaction commission is Rs.25/per EFT transaction.
5. 24-hour-ATM Banking Facility:
ATM means Automated teller machines are computer based service systems. Any
account holder of a bank who maintains a certain minimum balance can avail of the
facility. It is a card which enables the card holder to withdraw or deposit cash,to
transfer money, order for a cheque book and get information about his account around
the clock, that is 24 hours a day.The automated teller machines are installed in a
number of cities and big towns at important places.ATM benefit the customers in a
number of ways.It facilitates withdrawal of cash within minutes,it saves the precious
time of the customer as he need not go to the branch at which his account is
maintained, it facilitates instantaneous and automatic accounting and reduces the cost
of banking transaction.
6. Loans/E-loans Facility:
Banks Provide different types of loans Facilities to their Customers like Personal,
Medical loan, Educational loan, Pension Loan, Housing Loan etc. Bank lends money
to their Customers for Specific time and Charge interest on that money. E-loan
Facility is Customers request to bank through internet and approval of loan from bank
within Fraction of minutes. It is time Saved Facility.
7. Internet Banking Facility:
HDFC Bank Provide their customers to access their account from anywhere, anytime.
Through internet they can able to open a new fixed deposit, order drafts, pay their
bills, check up-to-the second account balance, transfer funds etc. From the comfort of
their homes or office or just about anywhere.
8. Phone Banking Facility:

25

HDFC Bank Provide their Customers Phone banking Facility through this facility
customers can transfer Funds, open a new fixed deposit, enquire account balance,
stop payment on a cheque or a series a lot cheques, and a lot more over the phone.
9. Mobile Banking Facility:
HDFC Bank Provide Mobile banking facility to their customers through their mobile
phones. They will be able to conduct a host o banking transaction. All this is made
possible through SMS (short Messaging Service) thus they do not incur any airtime
cost.
10. SMS Alert Facility:
HDFC Bank Provide SMS Alert facility to their customers..Through SMS alert
Facility Bank inform their customers about their transactions entry by sending SMS
(short Messaging Service). It is very excellent service provided by bank because
when any transaction done in bank account of customer then it is immediately
informed to that customers about their accounts transaction through SMS.
11. 8 to 8 Banking Facility:
It is an additional Service facility provided by banks to their customers. Customer
can enjoy this facility from 8 am to 8 pm. This facility becomes very useful when any
customer do any late transactions. Bank provides 12 hours excellent service facility to
their Valuable Customers. Today very few banks are Provides this kind of facility
12. Nomination Facility:
This facility is not for Customers but to their Customers heritance. Customers
heritance can get the benefit of this facility only when customer dies.
13. RTGS Facility:
RTGS means Real time gross settlement here every bank branch have their IFSC
Code and RTGS membership Through this facility one can receive payment from any
other banks' branches who are RTGS members having IFS code or make payment to
any other banks' branches who are RTGS members having IFS code located across
26

the country within two hours at cheaper cost and at the same time with high safety.
Every bank have their different Slabs of for commission and minimum and maximum
limit to send amount.
14. Utility Bill Payment Facility:
HDFC Bank now gives Customers an opportunity to pay their electricity, telephone
and mobile phone bills over the phone, through our ATMs, over the internet and even
through the mobile phone. So they wont have to wait in long queues or go through
the hassles of writing out numerous Cheques. On receiving the instruction to pay the
bill, the bill amount will be deducted fro their account.
15. Auto-Sweep Facility:
Auto Seep facility is one type of facility in which as per the customers

demand

money gets transferred to Fixed deposit after specific Limit. Customer has to inform to
the banks about credit limit to his account when limit goes up then money
automatically gets transferred to Fixed deposit (F.D)
16. Cheque Payable at Par Facility :
Banks Provide Cheque payable at par Facility to Customers means that this Facility is
given for specific Cenrets Overlaef on respective Cheque book.
It means that, the Cheques are Payable at par i.e no collection Charges will be
recovered from the beneficiary.
17. Multicity Cheque Facility :
Banks Provide Multicity Cheque Facility to Customers means that this Facility is
given for only specific Metropolitan Cities Overleaf on respective Cheque book. It
means that, the Multicity Cheque are Payable at Selected Branches only i.e There are
some collection Charges will be recovered from the account holders.
18. Overdraft Facility:
An overdraft Facility which allows customers to overdraw their Salary account,
generally against collateral securities to meet temporary needs.In short, the customer
27

is allowed to draw more than what stands to his credit up to a particular limit. This
facility is given only to those customers who already have salary account in the
bank. The customer is required to pay interest on the amount overdraw by him.

19. CBDT(Central Board of Direct Taxes) Collection Facility:

Central board of direct taxes (CBDT) facility means HDFC Bank accepts Challen of
direct taxes. Direct taxes include payment of tax deducted at source (TDS) on
salaries of Customers, rent and payments to contractors, which are to paid to Income
Tax.
20. E-Broking Account Facility:
HDFC Securities trading account offers the customer the convenience & Flexibility of
buying & selling shares over the phone or the internet,from any where by pressing
buttons of their phones or on the internet.
21. Personalised Cheque-Book Facility:
HDFC Bank Provide Personalised Cheque-Book to their Customers with the names of all
the account Customers printed on every leaf of Cheque.

28

Following are the banks which are taken into Consideration For Analysis:
Before Analyzing the Project I have Gone through 45 Bank, 27 Banks are Public Sector
banks, 14 Banks are Private Sector Banks, 04 Banks are Foreign Banks.

PUBLIC SECTOR BANKS

PRIVATE SECTOR

FOREIGN BANKS

BANKS
1.

STATE

BANK

OF

INDIA
2.

UNITED

BANK

OF

1.

AXIS BANK

2.

BANK OF RAJASHTAN

3.

TAMILNAD

2.

HSBC BANK

MERCANTILE BANK

3.

STANDARD

INDIA
3.

BANK OF INDIA

4.

FEDERAL BANK

4.

VIJYA BANK

5.

HDFC BANK

5.

UNION

6.

KOTAK

BANK

OF

INDIA
6.

MAHINDRA

BANK

INDIAN

OVERSEAS

7.

SOUTH INDIAN BANK

BANK

8.

YES BANK LTD.

7.

BANK OF BARODA

9.

ING VYSYA BANK

8.

ALLAHABAD BANK

10. CENTURION BANK OF

9.

UNITED

PUNJAB

COMMERCIAL

11. DEVELOPMENT

BANK(UCO BANK)

CREDIT BANK

10. IDBI BANK

12. KARUR VYASYA BANK

11. DENA BANK

13. ICICI BANK LTD.

12. STATE

BANK

OF

14. INDUSIND BANK LTD.

BIKANER & JAIPUR

13. ORIENTED BANK OF

29

1.

ABN

AMRO

Bank

CHARTERED
4.

CITI
N.A.BANK

COMMERCE
14. STATE

BANK

OF

SAURASHTRA
15. ANDHRA BANK
16. SYNDICATE BANK
17. PUNJAB

NATIONAL

BANK
18. STATE

BANK

OF

HYDRABAD
19. CORPORATION BANK
20. CENTRAL BANK OF
INDIA
21. CANARA BANK
22. INDIAN BANK
23.

BANK

OF

MAHARASHTRA
24. STATE

BANK

OF

BANK

OF

BANK

OF

MYSORE
25. STATE
INDOREN
26. STATE

TRAVANCORE
27. PUNJAB & SIND BANK

30

Chart No.2 Shows Market share of BANK in INDIA

31

3. RESEARCH OBJECTIVE
REASEARCH METHODOLOGY
RESEARCH LIMITATIONS
3.1 OBJECTIVES OF THE STUDY
1) To compare the features of Corporate Salary Accounts of HDFC Bank with
Other Banks.
2)

To Study the Analysis of Corporate Salary Account Products of HDFC Bank With Other
Banks.

3)

To Find the Feasibility of Salary Account Products of HDFC.

3.2

METHODOLOGY USED:

The method for the study carries a lot of significance, as all the result are dependent on
methodology used. A questionnaire was formulated. The questions were open ended as well
as close ended. The questionnaire was designed in a concise manner, keeping in mind the
minimum time to be utilized while interviewing the respective customers. The questions were
arranged in sequential and logical order involving strutted close ended as well as opened
ended questions. Though there were number of questions in questionnaire, care was taken
that maximum information can be obtained without consuming much time of the respective
persons.
3.3

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to research purpose with economy in procedure.
Since the aim is to obtain complete and accurate information about the corporate salary
account. Thus the process had to be started from the grass root level and it was very
important to understand the market for this product (i.e. corporate salary account).

32

The entire process is more of a Descriptive Research type and incorporates a formal
study of the specific problems faced by most Banking companies in exploring the
opportunities in the untapped market. The research work has been carried out on the basis of
HDFC Banks product preference and evaluation of corporate salary account in the new and
underdeveloped market.

3.4 COLLECTION OF DATA

While dealing with this research project data at hand was inadequate and hence it becomes
necessary to collect the data, there were 2 ways used to collect data.

Primary data

Secondary data

1. Primary Data
Primary data is that which are collected a fresh and is supposed to be original in
Character. Primary data is gathered in such a way so that need of the researcher can
be fulfilled .On the basis of primary data researcher withdraw some important
conclusion and gives suggestion according.
I have collected my primary data in the form of questionnaire, Discussion, Interview
with from Staff member of bank. Some important information I have collected from
manager as well as Branch head of the bank.
2. Secondary Data
Secondary Data is that data, which is, collected Prior to the Present Study work. Any
data that is available prior to the commencement of the research Project is called
Secondary data and therefore Secondary is also called as Historical data.
I have collected my secondary data from various brochures of the banks, Printed
Annual Report books and website like hdfcbank.com, google.com etc.

33

3.4

Sampling Techniques

A sample is a microcosm of the population from which it is accepted. It can only be accepted
as accurate within certain limits. Sample must be representative so that valid conclusion
about population can be inferred. However a Sample cannot reflect perfect image of the
population from which it is deans. Sampling plays key role in systematic objective market
surveying.
There are various types of sampling under the head of both sampling methods, while I had
selected Convenience sampling under the head of NON- PROBABILITY sampling.
According to this particular sampling method, I had selected the sample on the basis of my
analysis after considering the banks requirements and conditions which should followed by
the corporate.
Convenience sampling method is used to collect the data.
Convenience Sampling Method
Convenience Sampling Method is used for collecting data. Out of so many banks I have
chosen 45 Banks Conveniently in which 27 Banks are Public banks, 14 Banks are Private
Banks & 04 Banks are foreign banks.
Convenience Analysis used for Study: - Convenient Analysis of various factors has been
done so that the conclusion can be determined regarding the position of HDFC BANK
among its Competitors in market like ICICI Bank, HSBC Bank, Axis Bank (formerly UTI
Bank), Kotak Mahindra, Yes Bank, Standard Chartered Bank, Citi Bank, IDBI Bank etc.
Features, Facilities, Service Charges, Turnover, deposits, Share of bank in the market are the
main parameters. Which shows the positions of various banks from Public Sector, Private
Sector &Foreign Banks?
Sampling size

34

Large sample give more reliable result that small samples. Howve is not important to sample
the entire target population or substantial portion to achieve reliable result.
The sample size was 45 respondents

RESEARCH LIMITATIONS:
Any research or study always has some limitations under which this has to be undertaken.
This one too was not an exception. These limitations are poised by the environment some
external and some inherent. This study has been conducted with utmost consideration to the
adequacy of data and quality of information, The limitation can be enlisted as hereunder:1. Availability of documents as sources of secondary information.
2. Reliability of information collected from various public information sources such as
magazines and website.
3. Respondents are not willing to fill the questionnaire.
4. Sometimes the respondents are not available at their place.
5. Very often the respondent do not express their true feelings, in such case their habit,
preference, practice, cannot be assessed correctly ie the perception level of the
respondents
6. Some of the respondents refuse to give the important information best known to them.
However in spite of these limitations all efforts have been put to make the report
correct, genuine, and fulfilling the objectives of the reports.

35

4. DATA COLLECTION AND DATA ANALYSIS

4.1

INTERPRETATION OF DATA

TABLE NO.01
Table Showing No. of Banks and Various Balances for Opening Corporate Salary Account without
Cheque-Book to their Customers.
Without Cheque Book Minimum Balance
Balance
s

0 balance

Rs.0-100
balance

Rs.100-300
balance

Rs.300-500
balance

Rs.500-1000
balance

No .Of
Banks

23

06

12

Graph No: 3 shows No. of Banks offers different balances for opening corporate salary Account
(without Cheque Book)

Comments:The above Graph Shows that all the banks Keep their different Criteria to Open Corporate
Salary account without Cheque-Book:- Out of 45 banks;
23 banks who keep 0 Balance to open a Corporate Salary account without Cheque
Book Facility.
06 Banks who keep the Balance between Rs.0-100,
04 banks who keep the balance Between Rs.100-300.
TABLE NO.02
36

Table Showing No. of Banks offer Various Balances for Opening C.Salary Account with Cheque-Book to
their Customers.

With Cheque Book Minimum Balance

Balances

0 balance

0-100 balance

100-300
balance

300-500
balance

500-1000
balance

No .Of Banks

23

00

10

11

Graph No: 4 shows No. of Banks offers different balances for opening corporate salary Account
( With Cheque Book)

Comments:The Above Graph

shows that all the
banks Keep their
different Criteria to
Opening Corporate
Salary account with
Cheque-Book, Out
of 45 Banks;
23 banks who
keep
0
Balance
Facility
to
open
an
Corporate
Salary
account with Cheque Book. There is not a single bank who keeps the balance
Between Rs.0-100.
Only 1 bank who keep the balance Between Rs.100-300,10 banks who keep the
balance between Rs.300-500.
11 banks who keep the balance between Rs.500-1000 Balance to open an Corporate
Salary account with Cheque Book.

37

TABLE NO.03
Table Showing No. of Banks provides different No. of Cheques to Customers as per their request.

Cheque Book Facility

No. of Cheque
Leafs

10 leafs

15 leafs

20 leafs

25 leafs

No. of Banks

11

17

16

Percentage

24 %

2%

38%

36%

38

Graph No: 5 shows Percentage of Banks provided different number of cheques to their customers.

Comments:
From the Above Pie-Chart it has been clear that, Out of 45 Banks,
24 % banks Provide 10 leafs Cheque Book to their customer when they open an
account,
2% banks provide 15 leafs Cheque Book, 3
8% banks Provide 20 leafs Cheque Book &
26% banks Provide 25 leafs Cheque Book to their customers when they open an
account with him. Customer can demand more no. of Cheque-book When Customers
Cheque book get finish.
TABLE NO.04
Table Showing No. of Banks Provide ATM Cash Withdrawing limits to their Customers foR
Withdrawing cash through his account.

Cash Withdrawal through ATM

Cash
Limits (Per
day)

Between Rs.0
to 5000/-

Between
Rs.5000 to
15000/-

Between
Rs.15000 to
25000/-

Between
Rs.25000 to
50000/-

Between
Rs.50000
to75000/-

No. of
banks

22

15

39

Graph No: 6 Shows various ATM Cash Withdrawal Limits (per day) given by No. of banks to their Customers.

Comments:The above Graph Shows that,

There are Limitations of Withdrawing cash from account for each & every bank
account Customers.
Out Of 45 Banks; 02 Banks allow their customers to Withdraw the Cash Between
Rs.0-5000/- Per day,
22 banks allow their Customers to withdraw the cash Between Rs.5000-15000/-per
day,
15 no. of Banks allow their Customers to Withdraw the Cash between Rs.1500025000 per day,
03 banks allow their Customers to Withdraw the Cash between Rs.25000-50000/- &
There are only 2 banks allow their customers to Withdraw the Cash Between
Rs.50000-75000/- i.e. Yes
\Bank , Citi bank Allow their Customers to Withdraw the Cash Up to Rs.75,000/-

TABLE No.05
Table Showing No. of Banks Charge ATM Debit card Annual Charges from their Customers.

ATM Debit card Annual Charges.

Charges

Nil

Rs.0-50/-

Rs.50-100/-

Rs.100 & Above

No. of banks

25

40

Graph No: 7 Shows No. of Banks Charge ATM Debit card Annual Charges from their Customers

Comments:Above Graph Shows that, Banks Charges are applicable for using ATM-cum-Debit Card.

Out Of 45 Banks; 25 Banks dose not Charge ATM-cum-Debit Card but

05 no. of banks Charge Between Rs.0-50/- ,

07 no .of Banks Charge Between Rs.50-100/- and there are

08 no. of banks who Charge Rs.100 & above Rs.100.

TABLE NO.06
Table Showing No. of Banks Offer Various Types of Loans to their Customers.

Loan Facility
Types
of loan

Personal
loan

Car loan

Housing
loan

Medical
Treatment
Loan

Pension loan

Educational
Loan

No. of
Banks

42

41

42

41

30

38

41

Graph No: 8 Shows No. of Banks Offer Various Types of Loans to their Customers.

Comments:-

Above Graph Shows that, various types of loans are provided to Customers. Out of 45
Banks, 42 no .of banks Provide Personal loan facility to Customers for their
requirements,

41 no .of banks Provide Car loan Facility to Customers,

42 Banks Provide Housing loan Facility to Purchase a Flat,

41 Banks Provide Medical treatment loan Facility to Customers,

30 Banks Provide Pension loan facility to their old retired Customers,

38 Banks Provide Educational loan Facility to Customers For his childs Education.

42

TABLE No.07
Table Showing No. of banks Provide past Transaction Record Facility to their customers through
Following ways:-

A) Through E-mail:Statement through E-Mail Facility

Status

Yes

No

No.of banks

22

23

Percentage

49%

51%

43

Graph No: 09 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through E-mail facility.

Comments:From the above Pie chart it has been clear that

Out Of 45 banks. 49 % Banks Provide E-mail Statement Facility to their Customers

as per their request

While the remaining 51 % Banks do not Provide E-mail Statement Facility to their
Customers.

B) Through Courier:-

Statement through Courier Facility

Status

Yes

No

No.of Banks

40

05

Percentage

89%

11%

44

Graph No: 10 shows Percentage of banks Provide past Transaction Record Facility to their customers
through Courier facility.

Comments:From the Above Pie Chart it has been clear that,

Out Of 45 Banks, 89 % Banks Provide Courier Statement Facility to their Customer

as per their request

While the remaining 11 % Banks does not give courier Statement Facility.

C) Through Fax:-

Statement through Fax Facility

Status

Yes

No

No.of Banks

07

38

Percentage

16%

84%

45

Graph No: 11 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Fax facility.

Comments:The Above Chart Shows that

Out Of 45 Banks, Only 16 % of the Banks Provide Fax Statement facility to their
customers as per their request while remaining

84 % do not give fax Statement facility to their Customer.

D) Handover Delivery (Physical Statement) Facility:-

Handover Deliver Of Statement Facility

Status

Yes

No

Handover Of
Statement

41

04

Percentage

91%

9%

46

Graph No: 12 Shows Percentage. of banks Provide past Transaction Record Facility to their customers
through Handover Delivery.

Comments:From the above pie chart It has been that

91 % Banks deliver statement of transaction to their customers in their hand when

they visit to Bank,

Rest of the 9 % Banks send statement of record to their customers by courier or post.

E) Through Pass-Book:-

Pass Book Facility

Status

Yes

No

No. of Bank

29

16

Percentage

64%

36%

47

Graph No: 13 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Pass Book facility
.

Comments:As per the above pie chart it has been clear that,
64 % Banks Provide Pass Book recording Facility of his Past transactions to their
Customers and
Other 36 % Banks do not Provide Pass Book Recording Facility to their customers.

F) Through Touch Screen:Statement of through Touch Screen Facility

Name OF Facility

Yes

No

No. of Banks

01

44

Percentage

2%

98%

48

Graph No: 14 Shows Percentage of banks Provide past Transaction Record Facility to their customers
through Touch Screen facility.

Comments:From the above it has been clear that,

only 2 % Banks Provide Screen touch Facility to their customers i.e Citi Bank
Provide Screen touch Facility and
Rest 98 % does not Provide Screen Touch Facility to their customer.

TABLE No.08
Table Showing No. of Banks Provide Phone Banking Facility to their Customers.

Phone Banking Facility (CBS)

Status

Yes

No

No. of banks

33

12

49

Phone Banking Facility

80%
70%
60%

Phone Banking Facility

50%
40%
30%
20%
10%
0%
YES

NO

Graph No: 15 shows No. of Banks Provide Phone Banking Facility to their Customers.

Comments:From the above Chart It has been clear that,

Out of 45 Banks,73% no. of banks Provide Phone Banking Facility to their
Customers &
27% banks do not Provide Phone Banking Facility to their Customers. This Facility is
Possible Because of Core Banking Solution (CBS).

TABLE No.09
Table Showing No. of Banks Provide Mobile Banking Facility to their Customers.

50

Mobile Banking Facility

Status

Yes

No

No. of Banks

34

11

Percentage

75%

25%

Mobile Banking Facility

25%
YES

NO

75%

Graph No: 16 shows Percentage of Banks Provide Mobile Banking Facility to their Customers.

Comments:From the above Chart It has been clear that,

Out of 45 Banks, 75% Banks Provide Mobile Banking Facility to their Customers &
25% Banks does not Provide Mobile Banking Facility to their Customers. This
Facility is Possible Because of Core Banking Solution (CBS).

TABLE No.10
Table Showing No. of Banks Provide SMS Alert Facility to their Customers.

51

SMS Alert Facility

Status

Yes

No

No. of Banks

35

10

Sms alert facility

22%
yes
No

78%

Graph No: 17 Shows No. of Banks Provide SMS Alert Facility to their Customers.

Comments:

From the above Chart It has been clear that,

Out of 45 Banks, 35 Banks Provide SMS Alert Facility to their Customers &
22% Banks does not Provide SMS Alert Facility to their Customers. This Facility is
Possible Because of Core Banking Solution (CBS).

TABLE No.11
Table Showing No. of Banks Provide Utility Bill Payment facility to their Customers.

52

Utility Bill Payment Facility

Status

Yes

No

No.of Banks

31

14

Graph No: 18 Shows No. of Banks Provide Utility Bill Payment facility to their Customers.

Comments:

From the above Chart It has been clear that,

Out of 45 Banks, 31 no. of banks Provide Utility Bill Pay Facility to their Customers
&
14 Banks does not Provide Utility Bill pay Facility to their Customers.

TABLE No.12
Table Showing No. of Banks Provide Overdraft Facility to their Customers.

53

Overdraft Facility
Status

Yes

No

No. of Banks

21

24

Percentage

47%

53%

Graph No: 19 Shows Percentage of Banks Provide Overdraft Facility to their Customers.

Comments:From the above Chart It has been clear that,

Out of 45 Banks, 47% Banks Provide Overdraft Facility to their Customers &
53% Banks does not Provide Overdraft Facility to their Customers.

TABLE No.13
Table Showing No. of Banks Provide 8 to 8 Banking Facility to their Customers.

54

8 am to 8 pm Banking Facility (Additional Service)

Status

Yes

No

No. of Banks

13

32

Percentage

29%

71%

Graph No: 20 Shows Percentage of Banks Provide 8 to 8 Banking Facility to their Customers.

Comments:From the above Chart It has been clear that,

Out of 45 Banks, 29% Banks Provide 8 to 8 Banking Facility to their Customers &
71% Banks does not Provide 8 to 8 banking to their Customers. It is additional
Service to customers to enjoy benefit of his transaction.

TABLE No.14

55

Table Showing No. of Banks Provide Nomination Facility to their Customers.

Nomination Facility
Status

Yes

No

No. of Banks

45

Percentage

100%

0%

Graph No: 21 Shows Percentage of Banks Provide Nomination Facility to their Customers.

Comments:From the above Pie-Chart It has been clear that, Out of 45 Banks, 100% Banks Provide
Nomination Facility to their Customers heritance

56

FINDINGS
5.1 FINDINGS FROM THE WORK

1. First thing I found that there are 23 banks who keep 0 balance to open a
corporate salary account without a cheque-book.
2. There are 23 banks who keep 0 balance to open a corporate salary account with
cheque-book.
3. There are 16 banks who provided 25 leafs of cheque.

4. I have observed from the customers point of view and one thing I come to know
about bank is that, Now-a-days banks are Providing Excellent banking facilities
to their customers but there are also some bank who Charge hidden Charges for
service which is rendered to the Customers like ICICI bank Charge Rs.200/- per
annum for Physical Monthly Statement, For Debit Card charges bank charge
Rs.99+service tax@ 12.36% (as per Government rules) from the customers. &
For Debit card bank charge Rs.2/- per leaf for additional Cheque book.
5.

Banks have Started adopting new technologies and features of Competitors

banks like ATM Facility today it has become common feature of every bank but
even through there are some banks they dont have large no. of ATM centers
due to lack of space problem so here, Service is not given Properly to the
Customers.

6. With the help of technological change work has become very systematic, simple
and

easier to Customers because, now customers can do any transactions of

his account through Phone Banking, Mobile Banking, Internet Banking like

57

HDFC Bank Provide Phone Banking, Net Banking, Mobile Banking Service to
Customers through Phone Banking customers can transfer funds, open a new
Fixed deposit, enquire account balance, Stop payment on Cheque and through
Net banking customer can open a new Fixed deposit, order demand drafts, Pay
their bills, check up-to-the second account balance, transfer Funds and through
Mobile Banking customers can access their accounts through mobile phones so
work as become easier instead of standing in a queue or visit to the bank.
7.

In Some banks I have observed that, there is no Separate account namely

Salary account but all Features are same which are provided to saving account
customers

8. Cash withdrawing limit is vary product to product and bank to bank.

9. 25 banks do not charges for ATM-cum-Debit card.
10. All banks providing various loan to their customer.
11. 22 banks providing E-mail statement to their customer.
12. Only 23 banks providing phone banking Facility to their customer.
13. Only 24 banks providing Mobile banking Facility..
14. 31 banks who provide Utility bill payment facility.
15. Only 21 banks provide overdraft facility.
16. There are very few bank providing 8to8 Banking Facility.
17. All banks providing Nomination Facility.

58

CONCLUSIONS:
Based on the finding of the comparative analysis of H.D.F.C. Bank with other
competitor Bank I came to the conclusion that H.D.F.C. Bank has come good thing that
its other competitor do not have like,
1.H.D.F.C.Bank has various kind of product in salary account for the all types of
corporate .E.g. H.D.F.C. Bank has classic account for the employee who is working on
contract basis. Other bank do not have that kind of product. product is designed very
well. CEO of corporate will spent much more money in comparison with other
employees. Thats why Bank provided higher cash withdrawal limit to CEO.
2.H.D.F.C.Bank has given the various kind of facilities to their customer which is not
given by other bank like,
a. Accidental cover up to Rs5,00,000 to salary account customer.
b. Account provided on the basis of Income. Different employee get different account.
c. Salary account is designed on the basis of corporate need. Permanent employee will
get different account and Contracted employee will get different account.
3. Salary account is a just like saving account. This is the account by which corporate
disburse the salary of employees. Earlier corporate gives the salary by cheque.That
process was vey lengthy and time consuming. Now the bank providing salary account by
which salary direct credited to the account. These are the thing which attract customers
towards the H.D.F.C. Bank.

59

SUGGESTION

More efforts should be made to make customer knowledgeable about Corporate

salary account. Preference should be given to local language for an effective
communication.
Bank should avail various services along with Corporate salary account service.
Bank should maintain customer database upgraded from time to time which will
help for its business actualization.
Bank should provide many effective and attractive schemes so as to attract more
and more customers.
There should be transparency in charges associated with Corporate salary account

60

7.ANNEXURES
1. QUESTIONNAIRE

Name of the Bank

Date
/
/
QUESTIONS
1

What is the Minimum Balance For Opening an Corporate Salary Account

with Your Bank?
Without Cheque-Book :a) 0 to 100 Balance

b) 100 to 300 Balance

c) 300 to 500 Balance

d d)500 to 100
Balance

With Cheque-Book :-

a)0 to 100 Balance

b)100 to 300 Balance

c) 300 to 500 Balance

d) 500 to 100 Balance

If a Customer Open an account With Your Bank then how many Cheque
Leafs are provided to them?
a)10 Cheque Leafs.

b) 15 Cheque Leafs.

c)) 20 Cheque Leafs.

d) 25 Cheque Leafs.

61

What are the Annual ATM Debit Card Charges to your banks Customers?
a)Rs.0-50/-

b)Rs.50-100/-

c)Rs.100/- & above

4

Does Your Bank Offer loan Facilities to your Customers?

a) Yes

Is Your Bank Providing Statement Facility to the Customers to Know his

Past Transaction Entries?
Yes

b) No

No

What are the various ways to inform Your Customers about his Past
Transaction Entries?
-By Email

Yes

No

-By Courier

Yes

No

-By Fax

Yes

No

-Handover

Yes

No

If any other than above please mention

7

Is Your Bank Provide Phone Banking Facility to Customers For

Operating his account through Tele-Phone?
a)Yes
b) No

Is Your Bank having Mobile banking Facility to Customers For Updating

them With new Features and technology?
a)Yes

b) No

62

Is Your bank Provide SMS Alert Facility to Customers For Knowing him
about his daily transaction entries?
a)Yes

10

b) No

Does Your bank have any Additional Banking Facility like 8 to 8

Banking Facility?
a) Yes

11

b) No

Is Your Bank Provide Nomination Facility to Customers heritance if

Customer dies?
a) Yes

12

b) No

Is Your Bank Provide Utility Bill Payment Facility to Customers like

Electricity Bill, telephone Bill Payment?
a)Yes

13

b) No

Is your bank Provide Overdraft Facility to Customers for Withdrawing

Excess Money from Bank?
a) Yes

b) No

63

7. BIBLIOGRAPHY/REFERENCES
Websites:
www.hdfcbank.com

1. www.google.com
2. www.banks.com
3. www.bankspower.com
4. www.business.com/directory/financial
Books & Papers:
1. HDFC Bank Product Booklet
2. HDFC Banks Salary account Palm Plats, Brochures.

3. Philip Kotler- Marketing Management

4. C.R Kothari- Research Methodology

64

65