I Miti Angira declare that the project report entitled comparison Between Saving
Accounts of HDFC Bank & ICICI Bank a Research work at HDFC Bank, Kota.
The information has been collected from genuine and authentic sources and work
done by me during the academic year 2009-2011. This is being submitted in the
partial fulfillment of the requirement for the award of degree of the Master of
Business Administration (Banasthali University). The matter embodied in this
report has not been submitted for the award of any other degree or diploma.
Place:
Date:
Miti Angira
Banasthali vidhyapith
ACKNOWLEDGEMENT
I wish to express my heartfelt thanks to Mr. Pradip Singh Bhadoriya (Sales manager)
of HDFC Bank, Kota. Their cheerful induction of my first visit to companys office
helped me to know about saving Account as a product and the activity I had to
perform.
I want to give my genial and sincere thanks to Mr. M.K. Joshi (Director,
Banasthali University, Jaipur).I would like to sincerely thank Mrs. Vandana
Joshi,(Head of Management Dept., Banasthali University, Jaipur) for her
valuable suggestion and guidance and making it possible for us to accomplish
the project.
I am also thankful to all the other persons of Finance Department.
My heartfelt gratitude goes to my family members and friends who always inspired
and motivate me in carrying out this study.
Above all, I bow my head before Almighty GOD without whose blessing my
present project would not have existed and thanks for giving me patience and
strength to overcome the difficulties, which crossed my way in the
accomplishment of this endeavor.
Banasthali vidhyapith
PREFACE
M.B.A curriculum is designed in such a way that student can grasp maximum
knowledge and can get practical exposure to the corporate world in minimum
possible time. Business schools of today realize the importance of practical
knowledge over the theoretical base.
The research report is necessary for the partial fulfillment of M.B.A. curriculum and
it provides an opportunity to the researcher in understanding the industry with
special emphasis on the development of skills in analyzing and interpreting practical
problems through the application of management theories and techniques. It is a new
platform of learning through practical experience, which incorporates survey and
comparative analysis. It gives the learner an opportunity to relate the theory with the
practice, to test the validity and applicability of his classroom learning against real
life business situations.
Banasthali vidhyapith
TABLE OF CONTENTS
CONTENT
PAGE NO.
1. ACKNOWLWDGEMENT....
2. INTRODUCTION
2.1 HISTORY OF INDIAN BANKING INDUSTRY
6
8
9
3.2
MANAGEMENT.
3.3 TECHNOLOGY..
3.4 AWARDS AND RECOGNITIONS
3.5 PRODUCT SCOPE.
3.6 ACCOUNTS AND DEPOSITS.
14
16
17
18
20
35
36
38
6. LIMITATION
45
46
7. DATA COLLACTION.
47
49
9. FINDINGS.
53
10. RECOMMANDATIONS
54
11. CONCLUSION
54
12. BIBILIOGRAPHY.
55
5. RESEARCH METHODOLOGY.
Banasthali vidhyapith
INTRODUCTION
Banking is the backbone of a modern economy. Health of banking industry is one of
the most important pre-conditions for sustained economic progress of any country. The
world of banking has assumed a new dimension at the dawn of the 21 st century with the
advent of tech banking, thereby lending the industry a stamp of universality. In general,
banking may be classified as retail and corporate banking. Retail banking, which is designed
to meet the requirements of individual customers and encourage their savings, includes
payment of utility bills, consumer loans, credit cards, checking account balances, ATMs,
transferring funds between accounts and the like. Corporate banking, on the other hand,
caters to the needs of corporate customers like bills discounting, opening letters of credit and
managing cash.
The Indian banking scene has changed drastically with the private sector making
inroads in an area hitherto dominated by large public sector banks. Growing disinvestment is
likely to impact the banking industry as well. There is every possibility of privatization of
public sector banks, leading to greater operational autonomy.
The development of the Indian banking sector has been accompanied by the
introduction of new norms such as Income Recognition and Capital Adequacy, by the
government. The latter implies that banks can lend on the basis of their respective capital
base. These norms have caused banks to construct equity on their own, before going in for
debt. Disintermediation is a real threat for banks. Of late, banks are adopting the EVA
(Economic Value Added) concept wherein revenues are viewed in the context of the risk
associated with them.
The New World order has ensured "Survival of the Fittest". New services are the order of the
day, in order to stay ahead in the rat race. Banks are now foraying into net banking,
securities, consumer finance, housing finance, treasury market, merchant banking and
insurance.
Banasthali vidhyapith
are vital for the countrys economic progress. Commercial banks are the hub of the Indian
financial system. Indian commercial banks are organized as the joint stock banks, both in the
public sector and private sector.
and ensure proper marketing strategy and mistaking into account the economic, cultural,
legal and political environment. As toady in the changes word the needs are changed as
regards to bank as foreign players.
Marketing concept should be followed where we talk about 4 Ps marketing tools in regards
to banks; we should include to more 2 Ps more, People and Procedures as well. An
introduction of ATM 24 hours online banking transactions etc their goal should not be of
profit it should be growth and development with profit
The service sector of the economy is going through a period of almost revolutionary
proportions in which established ways of doing business continue to be shunted aside. It has
been said that the only person in the world who appreciates changes is wet baby.
The service sector can be best characterized by its diversity. Service organization range in
size from huge International Corporation in such fields as airlines, banking, insurance,
telecommunications, and hotel chain and freight transportation to a vast array of locally
owned and operated small business and numerous business to business services. As currently
defined by the government statistics, services account for the two third to three quarters of
the gross national product. Not only in US but also in many other highly develop industrial
nations.
In the banking and financial services business: this area comprises many different types of
businesses, commercial and retail, with a common denomination, of being in business to
help customer to make or manage money. A high level of trust is implicit and is even more
critical in the wake of the savings and loan scandals of the 1980s. The retail banking
industry has found its historic image of aloofness, a management
The public sector banks largely dominate the Indian banking industry. These banks till early
90s were involved in the traditional banking business of deposits and credit lending. They
performed a supporting role in the overall growth of economy. While most of these banks
Banasthali vidhyapith
Financial Markets
In the last decade, private sector banks / institutions played an important role. They grew
rapidly in commercial banking and asset management business. With the openings in the
insurance sector for these institutions, they started making debt in the market.
Banasthali vidhyapith
Regulators
The Finance Ministry continuously formulated major policies in the field of financial sector
of the country. The Government accepted the important role of regulators. The Reserve Bank
of India (RBI) has become more independent. Opinions are also that there should be a superregulator for the financial services sector instead of multiplicity of regulators.
Banasthali vidhyapith
10
Government pre-emption of banks resources through statutory liquidity ratio (SLR) and
cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending
sides almost entirely were deregulated.
New private sector banks allowed promoting and encouraging competition. PSBs were
encouraged to approach the public for raising resources. Recovery of debts due to banks and
the Financial Institutions Act 1993 were passed, and special recovery tribunals set up to
facilitate quicker recovery of loan arrears.
Consolidation imperative
Another aspect of the financial sector reforms in India is the consolidation of existing
institutions which is especially applicable to the commercial banks. In India the banks are
huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of
them can be merged. The merger of Punjab National Bank and New Bank of India was
difficult one, but the situation is different now. No one expected so many employees to take
voluntary retirement from PSBs, which at one time were much sought after jobs. Private
sector banks will be self consolidated while co-operative and rural banks will encouraged for
consolidation, and anyway play only a niche role
Global Competencies
The progress and growth of Indian banking sector is in the line with the twin objective of
financial stability and growth. Banking in India has increased its size by capitalizing on all
the business opportunity available. The capital adequacy ratio of Indian banks has increased
and is now in a much better position in relation to the other emerging market economies.
The ratio is well in line with the proposed new Basel norms. Several banks raised capital and
some more banks are on the way.
11
Ratio (CAR) of Indian banks stood at 12.8% at March 31, 2005, much above the prescribed
norms. In order to enhance capital adequacy ratio, seven banks including ICICI bank and
Punjab National bank, have raised capital in primary markets to the tune of Rs.12, 000
crores during the year 2005. it has been decided that banks which have maintained capital at
least 9% of the risk weighted assets for both credit risk and market risks of both Held For
Trade(HFT) and Available For Sale(AFT) categories as on March 31, 2006, would be
permitted to treat the entire balance in the Investment Fluctuation Reserve as tier-I capital.
This will help banks to enhance their CAR. Reserve bank Of India (RBI) has given
guidelines to have minimum net worth of Rs. 300 crores for private banks.
New guidelines have been introduced in the Indian banking system to measure up to the
international banking practices. The Indian Bankers Association (IBA) has come up with
Fair Practices Code to improve corporate governance. Banks in India should now explicitly
state their governance philosophy in their Annual Reports as part of Notes on Accounts to
their balance sheets. Risk based supervision was introduced in some selected banks.
Guidelines have been issued to banks not to outsource core-banking functions.
Emphasis has been placed on the role of bank boards. In a move to give freedom in the
functioning of private banks, RBI has withdrawn its nominee directors from almost all the
private sector banks. Amendments have also been proposed to remove the provisions of
having nominated officers of RBI in public sector banks in order to bring their functioning at
par with private banks.
Governments shareholding in several Public Sector Banks (PSBs) reached close to 51%. To
continue governments stipulated minimum shareholding in PSBs, the finance ministry
asked the RBI to come up with the guidelines on hybrid instruments, which can be treated
as capital.
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12
Performance
The year 2005 has been good for the Indian banking. There was robust growth in credit flow
during the year. Credit deposit ratio increased by more than 10% and substantial part of the
banks commercial credit went to large borrowers at sub-PLR rates. Government wants to
further push up the loan to GDP ratio from 43% to 50%. The most significant jump in credit
was to real estate sector. Credit to agriculture has been in line with the governments
objective of doubling its credit in the coming five years.
The banking industry has managed to improve its operating profit ratio by reducing its
operating costs/staff expenses. The asset quality in Indian banking sector has shown
considerable improvement. The gross Non Performing Assets (NPAs) to advances ratio for
the sector declined to 5% in FY05 from 16% in FY97
The Indian banking has improved efficiency in its operations. Cost to income has come
down. Interest income of the entire banking sector has increased. The returns on assets of the
foreign banks have been highest, followed by the private sector banks. Revenue sources of
banks been diversified. They have entered into the business of selling third-party products to
increase their income. Banks are trying to increase fee-based income as interest income
continues to be under pressure and profits from tradi8ng keep declining. Investments in
Statutory Liquidity Ratio (SLR) securities of banks have declined; however, the ratio is in
excess of the statutory limit. RBI reduced the reverse repo rate during the year to direct the
funds to the needed areas. Most of the investments held by private sector banks were in the
maturity bucket of a less than a year while the public sector banks investments were ranging
from one-year to five-year maturity buckets.
At the same time, technological development in the sector helped the banks in diversifying
their business activities to offer different services to customers. Introduction of core banking
solutions has enabled the banks to segregate the credit sourcing (front office) and appraisal
(back office) functions. Many banks will aggressively position themselves on an end-to-end
solution. The total Real Time Gross Settlement (RTGS) transactions increased from 1,
91,792 in March 2005 to 3, 84,176 in September 2005.
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13
Banasthali vidhyapith
14
PROFILE OF BANK
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 a 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.
Capital Structure
The authorized capital of HDFC Bank is Rs.450 crores (Rs.45 billion). The paid-up capital
is Rs.282 crores (Rs.28.2 billion). The HDFC Group holds 24.2% of the bank's equity while
about 13.1% of the equity is held by the depository in respect of the bank's issue of
American Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius
Banasthali vidhyapith
15
(IPEF) and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P
Morgan Partners, formerly Chase Capital Partners) together hold about 5.5% of the bank's
equity. Roughly 27.5% of the equity is held by FIIs, NRIs/OCBs while the balance is widely
held by about 214,000 shareholders. The shares are listed on 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".
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 468 branches spread over 212 cities across the country. All branches are linked on an
online real-time basis. Customers in 90 locations are also serviced through Phone Banking.
The Bank's expansion plans take into account the need to have a presence in all major
industrial and commercial centers where its corporate customers are located as well as the
need to build a strong retail customer base for both deposits and loan products. Being a
clearing/settlement bank to various leading stock exchanges, the Bank has branches in the
centers where the NSE/BSE has a strong and active member base. The Bank also has a
network of over 1054 networked ATMs across these cities. Moreover, HDFC Bank's ATM
network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
Banasthali vidhyapith
16
Management
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor
was a Deputy Governor of the Reserve Bank of India.
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.
BOARD OF DIRECTORS
Managing Director
Executive Director
Executive Director
Chairman
Equities and Private Banking and NRI
Aditya Puri
Paresh Sukhthankar
Harish Engineer
Jagdish Kapur
Abhay Aima
Business
Information Technology and Legal
Treasury
Merchant Services
Audit and Compliance
Anil Jaggia
Ashish Parthasarthy
Bharat Shah
G Subramanyam
Infrastructure
Branch Banking
Navin Puri
Assets and Credit Cards
Pralay Mondal
Retail Liabilities, Marketing and Direct Rahul N Bhagat
Banking Channels
Operations
Finance
Treasury
Rajan Ananthanarayan
Shashi Jagdishan
Sudhir Joshi
Technology
Banasthali vidhyapith
17
Rating
HDFC Bank has its deposit programmers rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Pvt. Ltd. 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". HDFC Bank also
has its long-term unsecured, subordinated (Tier-II) Bonds rated by CARE and Fitch Ratings
India Pvt. Ltd. CARE has assigned the rating of "CARE AAA" for the Tier-II Bonds while
Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the outlook on the
Banasthali vidhyapith
18
rating as "stable". In each case referred to above, the ratings awarded were the highest
assigned by the rating agency for those instruments?
Voted By Corporate
One Of Indias most Innovative companies
Best Bank Award In The Private Sector
Category
Global HR Excellence Awards-Asia Pacific Employer brand Of The Year 2007HRM Congress
Business Today
2008award-First Runner Up
Best Bank Award
Product scope:
HDFC Bank offers a bunch of products and services to meet the every need of the people.
The company cares for both, individuals as well as corporate and small and medium
enterprises. For individuals, the company has a range accounts, investment, and pension
scheme, different types of loans and cards that assist the customers. The customers can
choose the suitable one from a range of products which will suit their life-stage and needs.
For organizations the company has a host of customized solutions that range from funded
services, Non-funded services, Value addition services, Mutual fund etc. These affordable
plans apart from providing long term value to the employees help in enhancing goodwill of
the company. The products of the company are categorized into various sections which are
as follows:
19
Loans.
Cards.
Customer center.
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20
Banking should be effortless. With HDFC Bank, the efforts are rewarding. No matter what a
customer's need and occupational status, we have a range of solutions that are second to
none.
Whether you're employed in a company and need a simple Savings account or run your own
business and require a robust banking partner, HDFC Bank not only has the perfect solution
for you, but also can recommend products that can augment your planning for the future.
Saving Account:
These Accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are confident that
you will find the perfect banking solution. Open an account in your name or register for one
jointly with a family member today.
Regular Salary
No Frills Classic
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21
Bank conveniently with facilities like Net Banking and Mobile Banking- check your
account balance, pay utility bills or stop cheque payment, through SMS.
Never overspend- Shop using your International Debit Card that reflects the actual
balance in your savings account.
Personalized cheques with your name printed on each cheque leaf for enhanced
security.
Take advantage of Bill Pay, an instant solution to all your frequent utility bill
payments. Instruct for payment over the phone or through the Internet.
Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on
your account.
Eligibility & Account Operation
The following are eligible to open a Regular Savings Account:
Resident Individuals (sole or joint account).
Minor below 18 yrs. (account only with guardian).
Hindu Undivided Families.
Trusts.
Associations.
Clubs or Societies.
Foreign Nationals residing in India. If you are a Foreign National residing in
India, you may open a Savings Account by temporarily attaching an undertaking
stating sources of credit and a copy of your Residence Permit.
Account Operation
A minimum deposit of Rs. 5,000/- is required to open an account and thereafter an
Average Quarterly Amount of the same amount has to be maintained. It is mandatory
to maintain a minimum Average Quarterly Balance (AQB) of Rs. 5,000/-. If the
balance falls below Rs. 5,000/- a service charge of Rs. 750/- will be levied per
Banasthali vidhyapith
22
quarter. If you open a Fixed Deposit Account of Rs. 50,000/-, then you no longer
have to maintain a minimum balance of Rs. 5,000 on your Savings Account. In effect
your account becomes a Zero Balance Account.
Access a wide network of branches and over a thousand ATMs across the
country to meet all your banking needs.
Bank conveniently with facilities like Free Net Banking and Mobile Banking.
Use the Free Electronic Funds Transfer (EFT) facility to transfer funds from
your HDFC Bank account to an account in another Bank at the locations as specified
by RBI.
9 Free Cash withdrawals per Quarter at Branch and HDFC Bank ATMs
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23
The Current Account is most suitable for business class people. With HDFC Banks current
account, one can get personalized cheque book, inter branch banking and a monthly account
statement in addition to host of other features. The Bank provides two types of current
account facilities.
Amount
Interest
Rate
15 days to 29 days
5%
30 days to 60 days
7.25%
8.00%
Banasthali vidhyapith
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8.5%
8.5%
Saving account
4% p.a
Sweep in Account:
Features
a) Easy to operate: Money gets automatically swept into your saving account, without
any bother.
b) Operate your account through cheque or by ATM: Gives you instant access to your
deposit, whenever you need it.
c) Minimum interest loss: Since your deposits are held in units of Re.1, you only
encash the exact amount withdrawn.
d) Access your money free of cost: There are no hidden charges in the day to day
operations of your sweep in account.
e) Link Several Deposits together: Open a new deposit for Rs.5000 and it will be
linked to your sweep in account.
25
your fixed deposit. The rest of your deposit continues to earn the original rate till
maturity.
There are more benefits of course, You can if you like, always open as on deposit for
just Rs.5000. Further , you can link as many deposit, the Sweep in automatically choose
the oldest deposit first before sweeping money into your savings accounts.
ATM
ATM means Automated Teller Machine but it is popularly known as Any Time Money
and 365 days in a year from anywhere in India. ATMs are actually banks in themselves. In
other words, one can perform the banking operations by pushing few buttons. To withdrawal
cash, make deposit or transfer funds between account you generally insert an ATM card and
enter your personal identification number (PIN). It provides 24 hours encashment facilities
to the customers. In India there are 600 ATMs.
Advantages of ATM:
i.
ii.
Balance inquiry: - Your updated balance will appear on the screen and will also
be printed on the transaction slip.
iii.
iv.
Cheque book request: - Send a request for a cheque book or account statement
and it will arrive at your doorstep.
v.
Funds transfer: - Transfer money from one of your accounts to another. Its
easy. Select the account from which you want it transferred. Both accounts must
be linked to your ATM Cards and Customers ID.
Banasthali vidhyapith
26
vi.
Pin change: - You can conveniently change your PIN (given at the time of
opening your account) whenever you wish. Stay totally in control and ensure
complete security for your ATM Card.
vii.
Refill your Prepaid card - If you are an HDFC Bank Account holder and a
prepaid customer, you can now refill your prepaid card with our Prepaid Refill
service. Know more. - Your cash or cheques can be deposited into your account
and the ATM will immediately print a receipt for the same.
viii.
Learn about all our other products: - Simply select a product and all the
information you require will be displayed on the screen.
ix.
Pay your utility bills - Pay your cellular, telephone and electricity bills through
the ATM using Bill Pay, a comprehensive bill payments solution. Know more
about Bill Pay.
x.
Deposit cash or cheques - You can deposit cash or cheques into your account
and the ATM will immediately print a receipt for the same.
Global Network HDFC Bank ATMs are a part of the VISA International Plus ATM Network
and the MasterCard International Cirrus ATM Network, and can be accessed by all domestic
and international MasterCard, Cirrus or Maestro and VISA Electron cardholders for cash
withdrawals and balance inquiries. HDFC Bank have also partnered with American Express
to offer their domestic and international cardholders the benefits of cash advances from any
of our ATMs.
CARDS
CREDIT CARDS:
Our ranges of Cards help you meet your financial objectives. So whether you are looking to
add to your buying power, conducting cashless shopping, or budgeting your expenditure,
you will find a card that suits you.
Besides arming you with unmatched spending power, our Credit Cards are designed to meet
your unique needs. Choose one that's tailored for you.
Banasthali vidhyapith
27
HDFC Bank has recently launched the Credit Card. Using Credit Cards you can do shopping
and need not carry large amount of money along with you. There are five types of Credit
Cards given by HDFC bank i.e. Silver, Gold, Value Plus, Health Plus and Titanium Card.
But here in Amritsar Titanium card has not yet launched. Here there are only four types of
credit cards. All these cards are lifetime cards. These credit cards are International Credit
Cards.
28
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29
You stand to earn 2 reward points for every Rs 100 spent by you - a clear 200%
advantage over any other credit cards. This would be in addition to special promo
programs where you would earn bonus points.
30
Rs. 55
Rs. 10
Rs. 110
Rs. 10
Eligibility:
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31
A. Resident Indian holding any of the following Accounts with HDFC Bank:1. Saving Account
2. Current Account ( Sole Proprietorship)
3. Super Saving Account
4. Loan Against Shares Account (LAS)
5. Salary Account
B. Non- Resident Indian holding any of the following NRI Accounts with HDFC Bank:1. NRI Saving Account
2. NRE Saving Depository Account
3. NRE Current Depository Account
Advantages of International Debit Card
I. International Debit Card: Its like an ATM card you shop with:
a. Use your HDFC Bank International Debit Card to access your account from a
widespread network of ATMs within India and abroad. Withdraw cash at
over 7, 00,000 Visa/Maestro/Plus/Cirrus ATMs in 140 countries.
b. Shop at over 30,000 establishments in India and over 10 million worldwide
with your International Debit Card.
c. At selected Branches of Canara Bank and Bank of India you can withdraw
cash against your HDFC Bank International Debit Card (available only with
the Visa Electron programme).
II. Cash withdrawal at select Canara Bank and Bank of India branches (for Visa
Electron Programme only): Walk into 450 selected branches of Canara Bank of India
across the country and withdraw cash against your HDFC Bank International Debit
Card (available only with the Visa Electron programme).
Banasthali vidhyapith
32
III. Daily withdrawal limits: you can withdraw up to Rs. 15,000/- at ATMs and make
purchases up to Rs. 25,000/- at merchant locations (Point of sale) per day. For cash
withdrawal Canara Bank and Bank of India locations (VISA Electron Card holder
only) the point of sale limit applies.
NET BANKING
Net Banking is HDFC Bank's Internet Banking service. Providing up-to-the-second account
information, Net Banking lets you manage your account from the comfort of your mouse anytime, anywhere. Net Banking is Real Time, giving you up-to-the-second details on your
account. It can be accessed anytime, from anywhere, giving you complete control over your
finances. There are no queues to stand in, or turns to wait for. With Net Banking you are in
control. HDFC Bank's Net Banking service is secure. Using industry-standard technologies
and infrastructures, our service gives you peace of mind. So next time you think of visiting
your branch, switch on your PC instead.
It is most sophisticated way to bank. This is another convent way to access the bank
account from any
part of word, through internet, when one registers for net banking.
He/She will get a password which can be used with the customer ID number to conduct
transactions and get up to date the products and services round the clock.
Features
Pay Bills
33
Eligibility:All you need to access Net Banking if you have a saving or current or fixed deposit account.
Financial transactions can be made by saving account holder (with either or survivor
mandate), individual current account holder and sole proprietorship account holder.
Now you can also download the form from the website or contact your nearest branch.
ADVANTAGES OF NET BANKING:
i.
ii.
Security: Net Banking uses 128-bit encryption Secure Socket Layer (SSL)
technology, one of the most secure forms of transaction and the highest level of
security commercially available on the internet.
iii.
iv.
Request for a new fixed deposit: Make a Fixed Deposit inquiry or even make
a TDS inquiry on your Fixed Deposits.
v.
Request for a cheque book: Enquire about the status of a cheque issued or stop
cheque payment request in an emergency.
vi.
vii.
Free Online Third Party Transfer Facility: Instantly transfer funds between
your accounts and to a third party that have an account with the bank.
viii.
Demat on NET: It help you view your Demand Account, account holdings,
transactions in the account company-wise, and get details regarding pay-in, payout dates, etc.
ix.
Funds Transfer: Net Banking makes it easy to transfer funds between any of
your accounts, even if they are in different branches/cities.
Banasthali vidhyapith
34
PREFEERED BANKING
How you would like a banker dedicated to take care of all your banking requirements and
suggesting ways to invest your money with good returns from time to time? If you're a
seasoned professional or have been running a successful business over the years, the HDFC
Bank Preferred Programme is meant for you.
As a valued customer you benefit from our Relationship Pricing Programme with exclusive
offers such as a free Gold International Debit card, a free International Titanium card or a
free International Gold Credit Card, loans at preferential rates, etc.
Features & Benefits:
Investment Options
E-Broking
Relationship Pricing
Business Solutions
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PROFILE OF BANK
BOARD OF DIRECTORS
Managing Director and Chief executive Chanda Kochhar
Officer
Deputy Managing Director
Sandeep Bakhshi
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Executive Director
Senior Secretary
Senior General Manager
Executive Director
Executive Director
Senior Secretary
Chief Technology Officer
Kannan.S
Nita Colaco
Nimesh Shah
Sonjoy Chatterjee
Ramkumar K
Lucy Almedia
Pravir Vohra
Distribution network
The Bank has a network of 2,016 branches and about 5,219 ATMs in India and presence in
18 countries. ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries in the areas of investment banking, life and non-life insurance,
venture capital and asset management. The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
Our UK subsidiary has established branches in Belgium and Germany.
Technology
Sky Cell Communications Ltd, one of the two cellular service providers in Chennai, has
launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC
Bank.
The ICICI has announced the launch of mobile banking services for its customers, using the
wireless application protocol (WAP) technology.
Ford India has tied up with ICICI Bank to introduce a scheme, enabling non-resident
Indians (NRIs) to purchase a Ford Ikon car for their friends and relatives in India.
ICICI Bank has set up an ATM facility at an Indian Oil Corporation petro diesel outlet at
Chennai.
ICICI Bank has tied up with Chennai Telephones to provide Internet bill payment facility to
its customers.
AWARDS AND RECOGNITIONS
ICICI Bank bags the Best bank in SME financing (Private Sector) at the Dun and
Bradstreet awards 2009.
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ICICI Bank NRI services win the Excellence in Business Model Innovation Award
in the eighth Asian Banker Excellence in Retail Financial Services Awards
Programme.
ICICI banks Rural Micro Banking and Agri-Business Group wins WOW Event and
Experiential Marketing Award in two categories:. Rural Marketing Programme of
the Year and Small Budget on Ground Protection of the Year. These awards were
given for Cattle Loan Kamdhenu Campaign and Talkies on the move campaign
respectively.
ICICI Banks Germany branch has been certified by Stiftung Warrentest.ICICI
Bank is ranked 2nd amongst the 57 savings products across 19 banks.
ICICI Bank Germany won the yearly banking test of the investor magazine Euro in
the Call Money category.
ICICI Bank was awarded the runners up position in Gartner Business Intelligence
and Excellence award for Asia Pacific for its Business Intelligence functions.
ICICI Banks Organizational Excellence Group was recently awarded ISO
9001:2008 certification by TUV Nord. The scope of certification comprised
processes around consulting and capability building on methods of quality and
improvements.
ICICI Bank has been awarded the following titles under The Asset Triple A Country
awards for 2009
ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the
Canadian Helen Keller Centres Fifth Annual Luncheon in Toronto. The award was
given to ICICI Bank for its long-standing support to its unique training centre for
people who are deaf-blind.
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Designated Senior Citizens desk for Life Plus customers at all ICICI Bank branches
Anywhere Banking
Internet Banking
Customer Care
Nomination Facility
Features
No more waiting in long queues for you, a senior citizen can now approach the
Designated Senior Citizen desk at any ICICI Bank branch and get his / her account
serviced.
The upcountry cheques collection facility for locations with ICICI Bank presence
free of charge to the Senior Citizen customers.
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Free Access to any Bank's ATM* - The next time you want to withdraw cash from
your ICICI Bank account, just walk into any bank's ATM and use your ICICI Bank ATMcum-Debit card.
Money Multiplier Facility.
Internet Banking is offered free of cost.
Anywhere Banking - This facility entitles the account holder to one free cash
withdrawal or deposit per month up to a limit of Rs.50,000 across all ICICI Bank
branches. Rest of the transactions at normal charges #.
You can give us various types of standing instructions like transferring to fixed
deposit accounts at regular intervals.
An average quarterly balance of Rs 5,000 only.
Nomination facility is available.
Interest is payable half-yearly.
Now, get a specially designed debit card with your new 'Life Plus' Senior citizen
account. This ICICI Bank Ncash debit card is a debit-cum-ATM card providing you with
the convenience of acceptance at merchant establishments and cash withdrawals at
ATMs. With a per-day limit of Rs.25, 000 each for ATM withdrawals as well as for POS
transactions, the Debit Card only adds more comfort and convenience! This is available
free of cost to ICICI Bank Senior Citizen customers.
Minimum Balance
A minimum average quarterly balance requirement of Rs. 5000 with the account. Nonmaintenance of the minimum average quarterly balance attracts a fee of Rs 250 per quarter.
Existing Senior Citizen customers will continue to enjoy the zero balance facility with Rs.
10,000 FD till 30th September, 2007. From October 1st, 2007, a minimum balance of Rs.
5,000 is required.
Nomination
There can be only one Nominee for a deposit account whether held singly or jointly.
Applicants can make nomination by filling up the Form prescribed under the
Banking Companies (Nomination) Rules 1985.
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The nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985.
A Special International Woman's Debit card along with the account with a
withdrawal / spending limit of Rs. 25,000 per day.
Free quarterly physical account statement and free monthly email statement (on
customer request).
Multi channel access through ATM, Branch network and free Internet, mobile and
phone banking.
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**This is as long as the Recurring Deposit is active, else a Minimum Quarterly Average
Balance (QAB) of Rs.10, 000/- is to be maintained and standard charges will be debited on
non-maintenance of QAB.
Privilege Banking
Choose the ICICI Bank Privilege Banking account to enjoy exclusive benefits across wide
range of product and services.
The Privilege banking account variants we offer are - silver, gold and titanium; each
designed to suit your specific needs. In addition to benefits like money multiplier,
nomination facility, internet banking and mobile banking, you can avail other special
privileges like:
Priority service at all ICICI bank branches and through Customer Care.
Preferential rate on purchase of ICICI Bank pure gold and foreign exchange.
Young Stars
At Young Stars, we will guide your child through the world of banking - from checking the
childs savings account balance to guiding through fun zones and special pages on the
Internet Banking channel. It makes banking a pleasure and teaches your child to manage his
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or
her
personal
finances
through
savings
account.
You can transfer pocket money into your child's account. You can even shop with him / her
at Young Stars Shopping Page. You can also open a recurring deposit in your child's name.
Once you are done with your 'banking', you can access your child's account with all the fun
links to special zones designed to suit your child's area of interests and also impart
knowledge
on
the
current
events
of
the
world.
Key Features
Internet Banking.
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44
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RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps,
necessary to effectively carry out research and the desired sequencing to these steps. The
marketing research is a process of involves a no. of inter-related activities, which overlap
and do rigidly follow a particular sequence. It consists of the following steps:
Objective of Study
Research Design
Data Collection
Data Analysis
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OBJECTIVE
To undertake the comparative analysis of privatize banks (HDFC bank and ICICI
bank) in saving accounts sector.
To study consumer preference for the above two major players
To know the strengths of the HDFC & ICICI brand and also those which can be
daily to strength the brand image.
DATA COLLECTION METHOD
The methodology reveals the methods of data collection. There may be primary sources or
secondary sources of data collection.
Collecting Secondary Data:
After deciding my objective I looked for collecting and studying secondary data. It included
extensive study of literature available in reports of HDFC bank and ICICI Bank, articles,
newspapers, journals, magazines, handouts, pamphlets describing the banks.
Study of secondary data gave me an insight into the problem into hand. It also provides
me with clues and helped in designing primary research. It provided us a more accurate
picture about the functioning of various service providers in the Kota city.
Extensive use of secondary information in the form of magazines, journals, newspaper
clippings, such as Business World, Business Today, Business India, Economic Times, etc.
Internet websites of HDFC Bank and ICICI Bank.
Collecting Primary Data:
The objective of Primary data is formulated on the basis of research objectives. Objectives
set the guidelines and directions of research planning .Formulating the objectives offers the
best feasible means of solution. The primary data for my study was being collected by
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conducting survey. To analyze buying behavior and in order to gain an insight into the buyer
need-satisfaction level, a questionnaire was formulated and administered among 100 people.
The tools for data collection used were following types:
TELEPHONE INTERVIEW:
The telephone interview is used in lieu of personal interviews. It is used because information
has to be collected quickly and inexpensively. By it I asked the customer about their
satisfaction about HDFC Bank and ICICI Bank Home Loan procedure. The direct and
structured questions are asked by customers.
QUESTIONNAIRES:
This method of data collection is quite popular, particularly in case of big enquiries. A
questionnaire is a method of obtaining specific information about a defined problem so that
data, after analysis and interpretation, results in a better appreciation of the problem.
In order to motivate respondents and to get best of the information from them, I was tried to
build questionnaire that is interesting, serve my objective, unambiguous and easy to
complete and is not burdensome. The aim was to enable ease in analysis and facilitate easy
classification of response to get meaningful outcome within acceptable limits.
EXECUTION OF SURVEY WORK:
The survey work is that was done to collect primary data. I conducted Consumer Survey
by using questionnaires. I individually approached to individuals and got the questionnaire
filled by them. The individuals were randomly chosen.
48
The questionnaire was filled by 300 respondents. Out of 100, 35% are females and 65% are
males. The age of the respondents lie between 20years to 60 years. There are15%
respondents lie between age group of 20-30 years,26%respondents are of 30-40 years of
age,30% respondents are of age group of 30-40 ,14% respondents lie between age group of
40-50 years and 15% respondents are of age group 50-60 years.
Government
Private Sector
Business
Others
sector
No. Of Persons
(%)
23%
39%
24%
14%
ANALYSIS
Out of 100 respondents, there are 23% persons who are in government sector,39% persons
are from private sector,24% persons have their own business and 14% belongs to others
category.
29%
10,000-20,000
20,000-30,000
38%
25%
>30,000
8%
ANALYSIS
Among 100 respondents, the salary of 29% persons are below Rs.10,000,salary of 38%
persons lies between Rs.10,000-Rs.20,000,salary of 25% persons lies between Rs.20,000Rs30,000,and salary of 8% persons is more than Rs.30,000.
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Options
Respondents
Percentage
Yes
46
76.67%
No
14
23.33%
Total
60
100
ANALYSIS
As the research is convenience sampling and related to respondents who availing services
are of banks so only those customers were targeted who were having bank accounts and
using banking services. 77% were having their bank accounts.
Q.4.Which bank you prefer to open saving account?
Bank
No. Of
HDFC Bank
Persons
37%
ICICI Bank
29%
Others
34%
(%)
ANALYSIS
Among 100 respondents, 37% persons prefer HDFC Bank to take personal loan, 29%
persons prefer ICICI Bank and 34% persons prefer other banks to take personal loan.
Q.5.According to you which bank provides better services and good treatment in other
products and services?
Bank
No.
Of
HDFC Bank
Persons
27%
ICICI Bank
39%
Others
34%
(%)
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ANALYSIS: Among 100 respondents, 27% persons say that HDFC bank provide good
treatment, 39% persons says that ICICI bank provide good treatment and 34% persons says
that other banks provides good treatment.
Q.6.According to you who enjoy good reputation in saving account sector?
Bank
HDFC Bank
No. Of Persons(%)
ICICI Bank
35%
Others
32%
33%
ANALYSIS
Among 100 respondents, 35% persons say that HDFC bank enjoys good reputation, 32%
persons says that ICICI bank enjoys good reputation and 33% persons says that other banks
enjoys good reputation.
Q.7.Which bank charges lower account maintenance fees?
Bank
No .Of
HDFC Bank
42%
Persons
ICICI Bank
38%
Others
20%
(%)
ANALYSIS
Among 100 respondents, 42% says that HDFC bank charges lower maintenance fees, 38%
persons says that it is low in case of ICICI bank and 20% says that other banks charges
lower maintenance fees.
Q.8.Your opinion about HDFC saving account products?
Opinion
No. Of Persons
Average
10%
Good
14%
Very Good
44%
Excellent
32%
(%)
ANALYSIS
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Among 100 respondents, 10% says that HDFC saving account products are average, 14%
says that it is good, 44% says that it is very good and 32% says that HDFC saving accounts
products are excellent.
Q.9.Your opinion about ICICI saving account products?
Opinion
Average
No. Of persons
21%
Good
46%
Very Good
18%
Excellent
15%
(%)
ANALYSIS
Among 100 respondents, 21% says that ICICI saving account products are average, 46%
says that it is good, 18% says that it is very good and 15% says that ICICI saving account
products are excellent.
FINDINGS
Out of 100 respondents, there are 23% persons who are in government sector, 39%
persons are from private sector, 24% persons have their own business and 14%
belongs to others category.
Among 100 respondents, the salary of 29% persons are below Rs.10,000,salary of
38% persons lies between Rs.10,000-Rs.20,000,salary of 25% persons lies between
Rs.20,000-Rs30,000,and salary of 8% persons is more than Rs.30,000.
Out of 100 respondents, there are 70% people who were having saving account in
any banks.
Among 100 respondents, 37% persons prefer HDFC Bank to open saving account,
29% persons prefer ICICI Bank and 34% persons prefer other banks to open saving
account
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Among 100 respondents, 27% says that HDFC bank provide good treatment, 39%
says that ICICI bank provide good treatment, 34% says that other banks provides
good treatment.
Among 100 respondents, 35% persons say that HDFC bank enjoys good reputation,
32% persons says that ICICI bank enjoys good reputation and 33% persons says that
other banks enjoys good reputation.
Among 100 respondents, 42% says that HDFC bank charges lower maintenance fees,
38% persons says that it is low in case of ICICI bank and 20% says that other banks
charges lower maintenance fees.
Among 100 respondents, 10% says that HDFC saving account products are average,
14% says that it is good, 44% says that it is very good and 32% says that HDFC
saving account products are excellent.
Among 100 respondents, 21% says that ICICI saving account products are average,
46% says that it is good, 18% says that it is very good and 15% says that ICICI
saving account products are excellent.
RECOMMANDATIONS
ICICI Bank and HDFC bank has to improve its brand image, i.e. it has to
position itself in the minds of prospects in a better way in comparisons to others.
People who deal with customers should have complete knowledge about the
different products and their features.
It should more emphasize in advertising, as it is the most powerful tool to
position ant brand in the mindsets of customers.
It should provide online training and for those who are in jobs and want to
become advisors HDFC should provide evening training classes, so that they can
join the training after doing their jobs.
It should open more number of branches in different cities.
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CONCLUSION
After doing a lot of research and studying the materials available on internet, newspapers,
magazines and journals. I want to conclude that people prefers HDFC Bank more than ICICI
Bank for saving accounts in private sector. As private banks are coming daily in our country
still, Mostly people prefers government banks for saving accounts, especially older persons
are more dependent on government banks. It is true that younger population preference is
changing and they prefer more private banks because of services and facilities provided by
private banks. The appearance of banks also becomes very important for the present
generation and private banks put their complete efforts on this, which is lacking in
government banks. At last I can only say that HDFC Bank enjoys leading position in
personal saving account sector.
BIBLIOGRAPHY
Books
www.hdfcbank.com
www.google.com
www.icicibank.com
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ANNEXURE
Dear Sir/Madam,
Name:
I am a student of Banasthali University Jaipur Campus, Jaipur and presently doing a project
on COMPARISION BETWEEN SAVING ACCOUNTS OF HDFC BANK AND ICICI
BANK. I request you to kindly fill the questionnaire below and I assure you that the data
generated shall be kept confidential.
Q.1.In which type of job you are?
a) Govt. sector
b) Private sector
c) Business
d) Others
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d) Excellent
Date:
Place:
Signature:
Thank You
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