Introduction:

Salary account is offered to employees of the company. In conventional method

salary is being paid to employee in cash, later on instead of cash Demand Draft
and cheques have been replaced. Sale of Salary account is happen through
specialized team or through top level management meetings. Here Banks need to
convenience HR of the company or key decision maker of the company. Thos
process is little slow because decision maker evaluate the all possible options and
select the best one.
Banks through salary account are able to move there other financial product
to there customer and also it helps banks to generate further deposits. To meet the
need of corporate HDFC bank has solution as per the different segment and it has
3 kind of different salary account which Are as follows
1: Classic salary account
2: Regular account
3: Premium account

In salary account companies as well as employees are not expecting much unlike
other financial products, so I believe HDFC bank can get salary account from
companies by conveying additional services and freebies or USP which they are
offering in present salary account like burglary insurance, fire insurance, personal
insurance.

1
Abstract:

This research is based on corporate view on salary account and its phenomenon as
well as comparative study of these.
Corporate Salary Account is the products offered by the HDFC bank to serve the
need of big corporate. Corporate are considered to be very conservative when it
comes to corporate salary account and so do employees because companies want
to protect the interest of employees. But to serve them HDFC bank has 3 Products
to offer are as follows:
1: Classic salary account
2: Regular account
3: Premium account
These products are offered by bank to companies as per the average salary of the
respective company. HDFC is one of the leading banks providing corporate salary
account to the employees.

Objectives of the Study

• To identify corporate needs with respect to salary account
• To find scope of corporate salary business.
• To open new savings accounts by convincing customers and to promote the
benefits of those which are provided by the bank
• To find the different way of convincing customers.
• To study brand image of the bank.
• To increase the business of the bank.
• Understanding competitors banks standing and strategy in terms to salary
account.

2
Scope of Study
This study will help me to understand banking industry in depth and also I will be
analyzing salary account in comparative analysis. Banks have there salary product
as per the need of organization. By this way banking relation with corporate can be
viewed.

METHODOLOGY:

RESEARCH DESIGN:
• Research Type: Descriptive Research.
• Time Period: 60 days.
• Geographical location: Bangalore

Sources of Data Collection:

Information is collected in 2 types:
1. PRIMARY DATA:
Personal interview- Direct interviews with front end people in the
organization.
2. SECONDARY DATA:
Internal Data: The Company data base
External Data: Internet, News paper

TOOLS OF ANALYSIS
1. PEST analysis- To understand the industry profile.
2. SWOT analysis- To understand the company profile and their position in
selected market areas.

3
 3 PORTER’S five force analysis- To understand the industry with respect to
various concerns
4 Percentage analyses

LIMITATIONS INVOLVED IN THE STUDY

Every work has its own limitation. Limitations are extent to which the
process should not exceed. Limitations of this project are:-

• As a time frame of 60 days was provided by the organization to

perform the study, time was a major limitation.
• Getting appointment from the concern person was very difficult.
• Entry to certain functional zones was restricted by the authorities,
hence that also proved to be a limitation.
• Lack of prior knowledge of the Banking industry proved to be a
drawback in in-depth understanding of the functioning of a few
departments.
• People mind set about the survey was an obstacle in acquiring
complete

4
INDIAN ECONOMIC SCENARIO

It’s almost a decade since we entered into the 2000s. Economic growth in these
years wasn’t so impressive for the western economies. But Indian economy was
able to grow despite of worldwide slow down. This was because of strong
fundamentals in economy as well as proper regulation of respective regulatory
authority and strong consumer base with positive sentiments.

As per the advance estimates of GDP for 2009-10 released by the Central
Statistical Organization (CSO), the economy is expected to grow at 7.2 per cent in
2009-10, with the industrial and the service sectors growing at 8.2 and 8.7 per cent
respectively. India’s gross domestic product (GDP) grew by 6 per cent during
October to December 2009, over the corresponding quarter of the previous year, as
per data released by the CSO.

The economic activities which registered significant growth in the third quarter of
2009-10 over the corresponding period in 2008-09 are mining and quarrying at 9.6
per cent, manufacturing at 14.3 per cent, construction at 8.7 per cent, trade, hotels,
transport and communication at 10 per cent and financing, insurance, real estate
and business services at 7.8 per cent.

According to the latest estimates available on the Index of Industrial Production

(IIP), the index of mining, manufacturing and electricity, registered growth rates of
9.6 per cent, 14.3 per cent and 4 per cent, respectively in Q3 of 2009-10, as
compared to the growth rates of 2 per cent, 0.5 per cent and 2.9 per cent in these
industries in same period in 2008-09. The key indicators of construction sector,
namely, cement and finished steel registered growth rates of 8.5 per cent and 7.7
per cent, respectively in Q3 of 2009-10.

5
Foreign institutional investors (FIIs) were net investors of US$ 4.37 billion in
equity and US$ 2.09 billion in debt instruments in the month of March 2010,
according to the data released by Securities and Exchange Board of India (SEBI).
The number of registered FIIs was 1713 as on March 31, 2010 and the total FII
inflow in equity during January to March 2010 was US$ 4.54 billion while it was
US$ 4.71 billion in debt.

As on March 26, 2010, India's foreign exchange reserves totaled US$ 277.04
billion, an increase of US$ 24.71 billion over the same period last year, according
to the Reserve Bank of India's Weekly Statistical Supplement.

Moreover, India received FDI worth US$ 20.92 billion during April-December
2009, taking the cumulative amount of FDI inflows from August 1991 to
December 2009 to US$ 127.46 billion, according to the Department of Industrial
Policy and Promotion.

Six core infrastructure industries grew at 4.5 per cent in February 2010 against 1.9
per cent during the corresponding month last year, primarily due to increased
output in electricity. The six infrastructure sectors—crude, petroleum refinery
products, coal, electricity, cement and finished steel—that constitute 26.68 per
cent in IIP, recorded a growth of 5.3 per cent in the period April-February 2009-
10, as against 2.9 per cent in the same period last year.

Moreover, according to latest data from RBI, loan disbursement by scheduled

commercial banks, including regional rural banks, recorded 16.04 per cent growth
at the end of March 12, 2010, on a year-on-year basis. This is above RBI's
projection of 16 per cent credit growth in this financial year.
Of the more than 200 companies from over 50 countries that form part of the
World Economic Forum's Global Growth Companies (GGC) Community, India

6
today has the second largest representation, with a total of 18 GGCs. Indian GGCs
come from every sector, with a strong representation in information technology
and electronics, retail, consumer goods and banking.

India ranks 49 among 133 countries in 2009-10 in the global competitiveness

index (GCI) prepared by the World Economic Forum (WEF), an improvement of
one position from last year. India's position is a result of mixed performance across
12 categories covered by the GCI.

Exports from India were worth US$ 16.09 billion in February 2010, 34.8 per cent
higher than the level in February 2009, according to the Ministry of Commerce
and Industry. India's imports during February 2010 were valued at US$ 25.05
billion representing a growth of 66.4 per cent over February 2009.

India's logistics sector is witnessing increased activity—the country's major ports

handled 411.95 MT of cargo during April-December 2009, an increase of 5.14 per
cent over previous year traffic, according to data released by the Ministry of
Shipping.

Foreign tourist arrivals in India during the month of February 2010 were 601,000,
an increase of 9.9 per cent over February 2009. Foreign exchange earnings during
February 2010 were US$ 1.43 billion, an increase of 55.4 per cent over February
2009, according to data released by the Ministry of Tourism.

The total telephone subscriber base in the country crossed the 600-million mark to
touch 600.69 million in February 2010, taking the overall tele-density to 51.05,
according to the figures released by the Telecom Regulatory Authority of India
(TRAI). Also the wireless subscriber base increased to 563.73 million.

7
According to the latest statistics from the Association of Mutual Funds in India
(AMFI), the assets under management (AUM) of mutual funds were worth US$
174.96 billion in February 2010, an increase of 36 per cent over February 2009.
According to NASSCOM's India IT-BPO sector performance estimates for FY 09-
10, export revenues for the Indian IT-BPO industry are expected to record a
growth of 5.5 per cent to reach US$ 49.7 billion in FY09-10.

According to data released by Society of Indian Automobile Manufacturers, the

cumulative production data for April-February 2010 shows production growth of
24.34 per cent over same period last year. Passenger vehicles production crossed 2
million and two wheelers production touched almost 9.5 million.

According to the Gem and Jewellery Export Promotion Council, the exports of
gems and jewellery from India including rough diamonds, rose by 10.48 per cent
during April-February 2010 to touch US$ 28.84 billion.

The recovery of the Indian economy, as was broadly expected, worked well for the
advance tax figures for the third installment that was payable by December 15,
2009. The all India direct tax collection between April and December 2009, which
includes corporate and personal taxes, increased 8.1 per cent to US$ 48.39 billion,
according to figures that are currently with the income-tax (I-T) department.

The Indian drug retail market grew by a 29.24 per cent in value terms in October
2009 over the year ago period, more than double the average monthly revenue
growth rate of 13-14 per cent in the recent past, as per market research firm ORG
IMS.

India has joined an elite group of six countries which have successfully decoded
the human genome indigenously. The discovery, which was announced by the

8
Council of Scientific and Industrial Research (CSIR), will bring pharmaceutical
companies a step closer to designing drugs accounting for the specific
characteristics of the Indian physiology.

Merger and acquisition (M&A) activity involving Indian small and medium
enterprises (SMEs) are on the rise. During the first two months of 2010 M&A
transactions worth US$ 155 million have been concluded in the SME sector, up by
66 per cent over the US$ 93 million in transactions in the corresponding period of
2009, according to Venture Intelligence, a Chennai-based research firm focusing
on M&A and PE transactions.

Agriculture
Agriculture is one of the strongholds of the Indian economy and accounted for
15.7 per cent of the country's gross domestic product (GDP) in 2008-09.
In Budget 2010-11 following announcements for the agriculture sector has been
made by finance ministry.

• US$ 88.02 million is provided to increase the Green Revolution to the

eastern region of the country comprising Bihar, Chattisgarh, Jharkhand,
Eastern up, West Bengal and Orissa.
• US$ 66.02 million has been provided to organize 60,000 pulses and oil-seed
villages in rain-fed areas in 2010-11 and provide an integrated intervention
for water harvesting, watershed management and soil health to improve
productivity of the dry land farming areas.
• Banks have been consistently meeting the targets set for agricultural credit
flow in the past few years. For the year 2010-11, the target has been set at
US$ 82.53 billion.

9
 • In addition to the 10 mega food park projects already being set up, the
government has decided to set up five more.
• External commercial borrowings are available for cold storage for
preservation or storage of agricultural and allied products.

Growth potential

• Ernst and Young have forecast the passenger car market in India to grow by
12% annually over the next five years from the present figure of 1.89
million units to reach 3.75 million units by 2014.
• Small and medium enterprises (SMEs) are expected to contribute 22 per
cent to India's Gross Domestic Product (GDP) by 2012, up from about 17
per cent at present, according to a survey by the Associated Chambers of
Commerce and Industry of India (ASSOCHAM).
• The healthcare industry in the country, which comprises hospital and allied
sectors, is projected to grow 23 per cent per annum to touch US$ 77-billion
mark by 2012 from the current estimated size of US$ 35 billion, according
to a Yes Bank and ASSOCHAM report.
• India's domestic business processing outsourcing (BPO) market, which has
close to 500 players, will grow at a compound annual growth rate (CAGR)
of 33.3 per cent, to reach revenues of US$ 6.82 billion by 2013, up from
US$ 1.62 billion in 2008, according to a report by information technology
research firm IDC India.
• According to a report published by domestic broking major Edelweiss
Capital in March 2010, India's GDP is set to quadruple over the next ten
years and the country is likely to be a US$ 4 trillion economy by 2020.
• India will overtake China to become the world's fastest growing economy
by 2018, according to the Economist Intelligence Unit (EIU), the research

10
 arm of London-based Economist magazine. Majority of India
Incorporations top CEOs feel that the Indian economy is likely to grow at 8-
8.5 per cent in the next fiscal, according to a survey conducted by industry
body CII in March this year. As per the survey which took responses from
100 CEOs and industrialists, 60 per cent of the respondents said they expect
GDP to grow 8-8.5 per cent for the year ending March'11, while another 20
per cent expect growth to range between 7.5-8 per cent.

The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years. Based on
the projections made in the "India Vision 2020" prepared by the Planning
Commission and the Draft 10th Plan, the report forecasts that the pace of
expansion in the balance-sheets of banks is likely to decelerate. The total assets of
all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000
crores. That will comprise about 65 per cent of GDP at current market prices as
compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual
composite rate of 13.4 per cent during the rest of the decade as against the growth
rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that,
There will be large additions to the capital base and reserves on the liability side.
The Indian Banking Industry can be categorized into non-scheduled banks and
scheduled banks. Scheduled banks constitute of commercial banks and co-
operative banks. There are about 67,000 branches of Scheduled banks spread
across India. As far as the present scenario is concerned the Banking Industry in
India is going through a transitional phase.
The Public Sector Banks (PSBs), which are the base of the Banking sector in India
account for more than 78 per cent of the total banking industry assets.
Unfortunately they are burdened with excessive Non Performing assets (NPAs),
massive manpower and lack of modern technology. On the other hand the Private
Sector Banks are making tremendous progress. They are leaders in Internet

11
banking, mobile banking, phone banking, ATMs. As far as foreign banks are
concerned they are likely to succeed in the Indian Banking Industry.

Future challenges of Banks in India

The Indian banks are hopeful of becoming a global brand as they are the major
source of financial sector revenue and profit growth. The financial services
penetration in India continues to be healthy, thus the banking industry is also not
far behind. As a result of this, the profit for the Indian banking industry will surely
surge ahead. The profit pool of the Indian banking industry is probable to augment
from US$ 4.8 billion in 2005 to US$ 20 billion in 2010 and further to US$ 40
billion by 2015. This growth and expansion pace would be driven by the chunk of
middle class population. The increase in the number of private banks, the domestic
credit market of India is estimated to grow from US$ 0.4 trillion in 2004 to US$
23 trillion by 2050 third largest banking hub of the globe by 2040.

PEST ANALYSIS:

PEST Analysis stands for “Political, Economic, Social and Technological Analysis”
and describes a frame work of micro environmental factors used in environmental
scanning. It is a part of the external analysis when doing market research and gives a
certain overview of the different macro environmental factors that the company has
to take into consideration. PEST analysis is a useful strategic tool for understanding
market growth or decline, business position, potential and direction for operations.
The use of PEST analysis can be seen effective for business and strategic planning,
marketing planning, business and product development and research reports. PEST
also ensures that company’s performance is aligned positively with the powerful
forces of change that are affecting business environment. PEST is useful when a

12
company decides to enter its business operations into new markets and new
countries. The use of PEST, in this case, helps to break free of unconscious
assumptions, and help to effectively adapt to the realities of the new environment.

Political Environment
Following are the factors which are affecting the political environment of the
company.
 Indian government auto policies aimed at promoting an integrated phased
and conducive growth in the Indian Banking industry.

 Allowing further private Banks to open up branches.

 Assists in development of banking industry for holistic growth of economy.

 Allowing banks to go beyond national boundary for setting branches.

Economic Environment

Following are the factors which are affecting the Economic environment of the
company.

 Indian economy has grown at a rate of 8% per annum.

 The Banking sector has growing at a rate of 13.4% per annum.

 Small and medium enterprises (SMEs) are expected to contribute 22

per cent to India's Gross Domestic Product by 2012.

13
Sociological Environment

Following are the factors which are affecting the Sociological environment of the
company.

 Growth in urbanization, fourth largest economy by public private

partnership index

 Upward migration of household income level

 Increase in public private partnership, let to the increase in market share of

commercial vehicles

 Indian customers are highly discerning, educated and well informed. They
are price sensitive and put a lot of emphasis on value for money

Technological Environment

Following are the factors which are affecting the Technological environment of the
company.

 With the entry of global banks into the Indian market, advance technology
has developed while servicing customer.

 Net banking, mobile banking, phone banking improving the quality of

service in banking.

 Technology making transaction easier by way of RTGS, electronic fund

transfer.

14
INDUSTRY PROFILE

A banking company in India has been defined in the Banking companies Act, 1949
as one “which transacts the business of banking which means the accepting, for the
purpose of lending or investment, of deposits of money from the public, repayable
on demand or otherwise and withdrawals by cheque, draft, order or otherwise”
Banking is an important element of economy’s Indian banking system overt past
few decades, it has played very effective role in mobilization of savings of the
economy, spreading in banking habit to the furthest corner of the country and large
entrepreneurial base. Indian banks have multiplied their activities in volume,
variety and geographical base to meet the growing needs of the society. The old
methods and techniques replaced by new techniques of viability need based
formation of finance schemes and marketing. Instead of working for profits, they
are required to participate in nation building activities and help in bringing socio
economic change.
Banks are new centre of trade, commerce and business in a country. Banking plays
a very important role in the economic development of all nation of the world.
Industrial revolution that took place in the economic development of all nations of
the world. Industrial revolution that took place in European countries in 18th and
19th centuries would not have taken place without the evolution of good banking
system. Banking is life blood of modern commerce.
It is very important to study the Banking sector. The banking system in India
constitutes the core of the financial sector. It plays a significant role in the process
of economic growth of the country. Its efficiency and development thus are vital
for the country’s 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.

15
BANKING IN INDIA

The origin of modern banking in India dates back to 1770 when the first joint-
stock bank, named Hindustan Bank, was started by the English Agency House of
Alexander & Co. Calcutta. The bank was, however wound up in 1832.
The real growth of modern commercial banking began in the country when the
government was awakened to the need for banks in 1806 with establishment of the
first Presidency bank, called the Bank of Bengal, in Calcutta in that year. Then
followed the establishment of two other Presidency Banks, namely the Bank of
Bombay in 1840 and the Bank of Madras in 1843. to each of these banks, the
government had subscribed Rs. 3 lakhs to their share capital.
These three Presidency Banks continued till 1920. In 1921 they were amalgamated
into the Imperial Bank of India. In 1935, the British Government in India had
started a central bank called the Reserve Bank of India as a private sector bank.
After independence, eventually by passing reserve Bank of India Act, 1949, the
Reserve Bank of India was taken over by the government of India as a state owned
central bank.
After independence, the Government of India launched economic planning in the
country since 1951. On July 1, 1955 the Government of India nationalized the
Imperial Bank of India and converted it into the State Bank of India. The
establishment of the State Bank of India was a pioneering attempt in introducing
public sector banking in the country. Later on in 1959-60 seven subsidiary State
banks were also nationalized to form the SBI group. The SBI group has the
laudable objective of bringing rural orientation in Indian banking, which it
achieved with remarkable success.
Eventually, on July 19, 1969 fourteen major Indian scheduled banks (with deposits
of over Rs.50 crores) were nationalized by the government with a view to serve
better the needs of development of the economy in conformity with national

16
priorities and objectives. As a result, 85 percent of the baking business in terms of
deposits was brought under public control. On April 15, 1980, six more Indian
scheduled banks (with deposits of over Rs.200 crores) were nationalized. As such,
over 90 percent of the banking activity in the country is brought into the public
sector. In short, nationalization of banks implied a bold and major economic step
in the process of banking reforms in the country. It has resulted in the evolution of
public sector banking.

Public sector banks

Banking is one of the most important elements of economy. Indian banking system
over past few decades has played a very effective role in mobilization of savings
of the economy spreading in banking habit to the furthest corner of the country and
enlarged entrepreneurial base. Indian banks have multiplied their activities in
volume variety and geographical coverage to meet the growing needs of society,
the old methods and techniques of viability growth based formation of finance
schemes of marketing. Instead of working for profits, they are required to
participate in the nation building activities and help in bringing socio-economic
change. Banking transactions carried on by any individual or firm engaged in
providing financial services to consumers, businesses or government enterprises.
In the broad sense, a bank is a financial intermediary that performs one or more of
the following functions: safeguards and transfer of funds, guarantees credit
worthiness and exchange money. Such institutions as commercial banks, central
banks, organizational banks, trust companies, finance companies, life insurers and
investment bankers provide these services. A normal end mean common definition
of a bank is a financial intermediary that accepts, transfer and most important
creates deposits. This includes such deposits institutes as central banks,
commercial banks, savings and loan associates and mutual savings bank.

17
Banks are most frequently organized in corporate form and owned by either
private individual, government interests. Although non corporate bank that single
proprietorship and partnership are find in other countries since 1863 all federally
chartered bank in the US must be corporations. Only a few states permit formation
of non corporate bank. All countries subject their banks, however owned to
government regulations and supervision, normally implemented by central banks
authorities. Bank in India should develop appropriate strategy 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

18
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 used to focus on growth of balance-sheet
profitability was not a significant competition. In most of the banks government
has holding of 100% whereas in the few banks the state has fallen because of
public issue in the post liberalization period. Some of other leading banks in the
segment also proposed to come out with an equity issue to raise further capital.

The public sector banks have a strong distribution network all over the country.
But the strength of earlier periods has now coming out with VRS to bring down
number of employees and improve their efficiency ratio. Almost 80% of the
business is still controlled by the Public Sector Banks (PSBs). PSB are still
dominating the commercial banking system. Shares of the leading PSBs are
already listed on the stock exchanges.

Private sector Banks

The banking regulation act was amended in 1993 permitting the entry of new
private sector banks. The act also specified certain criteria for establishing new
private sector banks. The criteria are as follows-
1. the banks should have a minimum net worth of Rs. 1 billion
2. The promoters holding should be minimum 25% of paid up capital.
The last decade witnessed the maturity of India’s financial markets. Since 1991,
every governments of India took major steps in reforming the financial sector of

19
the country. The important achievements in the following fields are achieved in
following heads:

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.

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 super- regulator for the financial services
sector instead of multiplicity of regulators.

The banking system

Almost 80% of the business is still controlled by the Public Sector Banks (PSBs).
PSB are still dominating the commercial banking system. Shares of the leading
PSBs are already listed on the stock exchanges. The RBI has given licenses to new
private sector banks as part of the liberalization process. The RBI has also been
granting licenses to industrial houses. Many banks are successfully running in the
consumer segments, industrial finance, retail trade, small business and agriculture
finances.

Deregulation of Banking System

In order to reach the stipulated capital adequacy norms, substantial capital were
provided by the Government and RBI. Government pre-emption of banks’
resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR)

20
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.

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.

Guidelines and Governance

Meeting capital adequacy norms in the recent times gained importance with the
deadline for the implementation of Basel II Accord approaching closer. The
average Capital Adequacy 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

21
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.
Government’s shareholding in several Public Sector Banks (PSBs) reached close
to 51%. To continue government’s 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.

22
 Porter’s Five Forces Model (Indian Banking Industry)

Threat of Substitutes:
RBI’s move to allow further private
banks will brings competition between
players but since GDP growing with 8to
9% there is enough space for banks to do
business.

Bargaining Power of Bargaining Power

Supplier: Rivalry among firms is of Customers:
RBI’s have high: Companies are
good control Customization of heavily investing
over banks, and financial product
change CRR, in economy with
SLR, REPO and High banking good project they
Reverse REPO Growth have good
as per economic bargaining power
condition of Strong Competitors. over banks
country.

Barriers to Entry:
High capital requirement,

Control of Government as well as

RBI

23
COMPANY PROFILE

About company

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 liberalization 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 and,
currently has an nationwide network of 1,725 Branches and 4,232 ATM's in 779
Indian towns and cities

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.

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

24
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.

AWARDS

HDFC’s efforts towards providing customer convenience have been appreciated

both nationally and internationally. HDFC Bank has received many awards and
accolades between 2007 and 2010. Which are as follows:-

Avaya Global Connect 2010 For

Customer Responsiveness Award - Banking & Financial Services category

Financial Express - Ernst Young Survey 2009-10 For

Best New Private Sector Bank

Asian Banker Excellence Awards 2009 For

• Best Retail Bank in India

• Excellence in Automobile Lending
• Bank M&A Integration
• Technology Implementation

The Asset Triple A Awards For

Best Cash Management Bank in India

Dun & Bradstreet – American Express Corporate Best Bank Award 2007

Nasscom IT User Award 2008

25
Asian Banker Best Retail Bank in India Award 2009

Fe Best Bank Awards 2009

UTI MF-CNBC TV18 Financial Advisor Awards 2009

Euromoney Awards 2009

Asia Money 2009 Awards

IBA Banking Technology Awards 2009

IDRBT Banking Technology Excellence Award 2008

Capital Structure

As on 31st March, 2010 the authorized share capital of the Bank is Rs. 550 crore.
The paid-up capital as on said date is Rs. 457,74,32,720/- (45,77,43,272 equity
shares of Rs. 10/- each). The HDFC Group holds 23.73 % of the Bank's equity and
about 16.97 % of the equity is held by the ADS Depository (in respect of the
bank's American Depository Shares (ADS) Issue). 26.59 % of the equity is held by
Foreign Institutional Investors (FIIs) and the Bank has about 4,41,347
shareholders.

The shares are listed on the Bombay Stock Exchange Limited and the National
Stock Exchange of India Limited. The Bank's American Depository Shares (ADS)
are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB' and
the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock
Exchange under ISIN No US40415F2002.

26
Merger and Amalgamation

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory
and regulatory approval process. As per the scheme of amalgamation, shareholders
of Centurion Bank of Punjab received 1 share of HDFC Bank for every 29 shares
of Centurion Bank of Punjab. The merged entity will have a strong deposit base of
around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The
balance sheet size of the combined entity would be over Rs. 1,63,000 crore. The
amalgamation added significant value to HDFC Bank in terms of increased branch
network, geographic reach, and customer base, and a bigger pool of skilled
manpower.

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. This was
the first merger of two private banks in the New Generation Private Sector Banks.
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.

Bank Presence

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

network of 1,725 branches spread in 779 cities across India. All branches are
linked on an online real-time basis. Customers in over 500 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 centers
where its corporate customers are located as well as the need to build a strong

27
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 4,232networked 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.

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. Senior banking
professionals with substantial experience 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

Technology

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

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

28
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs). The Bank has made
substantial efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world class bank. The Bank's
business is supported by scalable and robust systems which ensure that our clients
always get the finest services we offer. The Bank has prioritized its engagement in
technology and the internet as one of its key goals and has already made
significant progress in web-enabling its core businesses. In each of its businesses,
the Bank has succeeded in leveraging its market position, expertise and technology
to create a competitive advantage and build market share.

Business

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 Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agriculture 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

29
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 customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking, Net
Banking and Mobile Banking. The HDFC Bank Preferred program for high net
worth individuals, the HDFC Bank Plus and the Investment Advisory Services
programs have been designed keeping in mind needs of customers who seek
distinct financial solutions, information and advice on various investment avenues.
The Bank also has a wide array of retail loan products including Auto Loans,
Loans against marketable securities, Personal Loans and Loans for Two-wheelers.
It is also a leading provider of Depository Participant (DP) services for retail
customers, providing customers the facility to hold their investments in electronic
form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2009, the bank had a total card base (debit and credit cards) of over 13 million.
The Bank is also one of the leading players in the “merchant acquiring” business
with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance

30
at merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

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, corporate 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.

31
Product Offered By HDFC

32
 Accounts & Deposits Loans Investments & Insurance

Savings Accounts Personal Loans Mutual Funds

Regular Savings Account Home Loans Insurance

Savings Plus Account Two Wheeler Loans General & Health Insurance

SavingsMax Account New Car Loans Bonds

No Frills Account Used Car Loans Knowledge Centre

Institutional Savings Account Express Loans Plus Equities & Derivatives

Salary Accounts Gold Loan Mudra Gold Bar

Payroll Educational Loan

Classic Loan Against Securities
Regular Loan Against Property
Premium
Loans Against Rental Receivables
Defence
Reimbursement Current Account Health Care Finance Forex Services
Tractor Loans

Kid's Advantage Account Commercial Vehicle Finance Products & Services

Pension Saving Bank Account
Family Savings Group
Kisan No Frills Savings
Kisan Club Savings
Current Accounts
Plus Current Account
Trade Current Account
Premium Current Account
Cards
Regular Current Account
RFC - Domestic Account
Credit Cards
Flexi Current Account
Apex Current Account
Max Current Account
Fixed Deposits
Regular Fixed Deposit
5 Year Tax Saving Fixed Deposite
Super Saver Facility
Sweep-in Facility
Demat Account
Safe Deposit Lockers
Debit Cards
HDFC Bank Preferred / Classic
Private Banking
Working Capital Finance Trade Services
Construction Equipment Finance Forex Services Branch Locator
RBI Guidelines
Warehouse Receipt Loans
Forex Limits
Payment Services
NetSafe
Silver Credit Card Merchant Services
Value Plus Credit Card Prepaid Refill
Health Plus Credit Card BillPay
Gold Credit Card Visa BillPay
Titanium Credit Card InstaPay
Woman's Gold Credit Card DirectPay
Platinum Plus Credit Card Visa Money Transfer
Visa Signature Credit Card e-Monies Electronic Funds Transfer
World MasterCard Credit Card Excise & Service Tax Payment
Corporate Credit Card Online Payment of Direct Tax
Business Credit Card
Religious Offerings
EasyShop International Debit Card Donate to Charity
EasyShop Gold Debit Card
EasyShop International Business Debit
Card
EasyShop Woman's Advantage Debit Card
EasyShop NRO Debit Card
Access Your Bank
Kisan Card

Prepaid Cards
NetBanking
ForexPlus Card
OneView
GiftPlus Card 33
InstaAlerts
FoodPlus Card
MobileBanking
MoneyPlus Card
Ratings

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 program 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) program "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 "AAA ( ind )" rating to the Bank's deposit program,
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

34
Perpetual bond and Upper Tier II bond issues. CRISIL has assigned the rating
"AAA / Stable" for the Bank's Perpetual Debt program 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.

SWOT ANALYSIS

STRENGTH
Followings are the strength of the company.
• Diversified product portfolio.
• Broad based customer profiles in India also have cross border presence.
• Good brand value and having a standard quality product.
• Serve big corporate as per there requirement.

35
 • Have good coverage in local market in prime areas.

WEAKNESS
Followings are the weakness of the company.
• Poor service to existing customer.

OPPORTUNITIES
Followings are the opportunities for the company.
• Established market presence permits expansion
• Having good clients in basket from longer period.
• Company is well known for its product quality.

THREATS
Followings are the threats to the company.
• RBI’s new policy to allow few more banks in industry is one of the biggest
concerns.
• Existing competition can be a big threat.
• Business cycle affecting companies’ policy.

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

36
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.

LITERATURE REVIEW

Article 1

The article discusses the total employee compensation. It mentions that the
average wage and salary is at 19.41 dollars per hour worked or 70.8 percent of the
labour cost, while the average benefit is at 8 dollars or 29.2 percent of the cost. It
states the paid leave benefits are averaged at 1.86 dollars per hour worked, and the
leave costs for management, professionals and other related professions are at 4.05
dollars per hour.

Bookmarks: http://search.ebscohost.com/login.aspx?
direct=true&db=buh&AN=51495848&site=ehost-live

Article 2
The article focuses on the issue of salary accounts which is offered in several banks
in India. According to a banker, salary accounts provide a good database of
prospective buyers of insurance and retail loans. On the other hand, it is said that

37
market observers are not excited and said that customers may
keep salary accounts with one bank and take a housing loan from another bank

Bookmarks:
http://search.ebscohost.com/login.aspx?
direct=true&db=bth&AN=27477183&site=ehost-live

ANALYSIS & INTERPRETATION:

Question 1: Which category does it belong?

Small Medium Big Total

enterprises enterprises enterprise
No. of 4 18 8 30
companies
Percentage 13.33% 60% 26.66% 100%

60.00%
50.00%
40.00%
30.00%
Percentage
20.00%
10.00%
0.00%
Small M edium Big enterprise
ente rprise s enterprise s

38
Interpretation:
Out of 30 respondent companies 13.33% are fall in small enterprises, 26.66% falls
in medium enterprises and in majority 60 % falls in big enterprises.
Findings:
In majority companies falls in medium and big enterprises, company should focus
more on these enterprises.

Question 2: What is your average annual turnover?

Turnover Less then 500 500 to 1000 Greater then Total

Range Crore crore 1000 crore
No. of 18 5 7 30
companies
Percentage 60% 16.67% 23.33% 100%

60%

50%

40%

30%
Percenta
20%

10%

0%
Less then 500 500 to 1000 Greater then
Crore crore 1000 crore
Interpretation:
Out of 30 companies 60 % of the companies have annual turnover of less then 500
crore, 16.67% of companies that is 5 in number have turnover in between 500 to

39
1000 crore and 7 companies which constitute 23.33% have turnover above 1000
crore.
Findings:
60% of the company have turn over less then 500 crore.

Question 3: What is the average salary of employees?

Salary range Less then 3 to 5 Lac Greater then Total

(Cost To 3 Lac 5 Lac
Company)
PA
No. of 19 6 5 30
companies
Percentage 63.33% 20% 23.33% 100%

70.00%
60.00%
50.00%
40.00%
30.00% Percentage
20.00%
10.00%
0.00%
Less then 3 3 to 5 Lac Greater then
Lac 5 Lac

40
Interpretation:
Out of 30 companies 63.33 % have average salary less then 3 lac,20 % of the
companies have average salary in between 3 to 5 lac and 16.67% companies which
is 5 in number have average salary above 5 lac.
Findings:
63.33% of companies, employee salaries is lass then 3 lac if company can attract
these company by offering suitable product as per companies requirement then
Bank can attain more profitability.

Question 4: Which sector/ industry it belongs to?

Industry No. of Company Percentage

Telecom 2 6.67%
Software (IT) 19 63.33%

BPO 1 3.33%
Retail 1 3.33%

Textile 2 6.67%

Auto parts 1 3.33%

Furniture 2 6.67%
Consumer durables 1 3.33%

Hospitality 1 3.33%

TOTAL 30 100

41
 70 Telecom

60 Software (IT)

50 BPO

40 Retail

30 Textile

20 Auto parts

10 Furniture

0 Consumer durables
Percentage Hospitality

Interpretation:
There are 9 different industries are there and out of 30 companies 19 falls in IT
industry which constitute 63.33% , Telecom, Textile and Furniture have 6.67%
companies individually and rest of the industry have 3.33% of the companies
respectively.
Findings:
In majority respondent companies are in it sector so companies product should be
suitable to these IT companies.

Question 5: Which bank’s salary account services currently company using?

Question 6: Rate your satisfaction level with bank?

SL. Name of Excellent Good Average Bad Unacceptabl TOTAL Percentage

No. Bank e
1 HDFC 3 6 2 1 12 40%

42
2 ICICI 2 3 4 9 30%
3 AXIS 4 2 2 8 26.67%
4 CITI 1 3.33%
TOTAL 9 12 8 1 30 100%

40

35

30
Interpretation:
Out of 30 companies 40% have salary account with HDFC bank 30 % of
companies have 25
salary account with ICICI bank 26.67% have account with Axis
Bank and only 3.33% have account CITY bank.
Out of 12 companies who have salary relation with HDFC bank, 3 have rated bank
as excellent service provider,6 rated as good service provider,2 rated average
service provider 20
and 1 has rated unacceptable but later on issue of that company
with bank has been solved and he is quite satisfied.
Out of 9 companies who have salary relation with ICICI bank, 2 have rated bank
as excellent service provider, 3 rated as good service provider, 4 rated average
service providers.15

43
10
Out of 8 companies who have salary relation with Axis bank, 4 have rated bank as
excellent service provider, 2 rated as good service provider, 2 rated average
service providers. And one company rated City bank as good service provider.

Findings:
Axis Bank and ICICI bank considered to be close competitors and there comfort as
well as satisfaction level is quite good so company should be careful.

Question 7: Since how long company is using salary account with current bank?

SL. Name of Bank Average No. of

No. years
1 HDFC 5.6

2 ICICI 4.1

3 AXIS 5.2

4 CITI 4

7
6
5
HDFC
4
ICICI
3 AXIS
2 CITI
1
0
Average No. of years

44
Interpretation:
HDFC bank able to retain customer for longer period on an average which is 5.6
years then second is Axis bank with 5.2 years then ICICI and City with 4.1,4
respectively.
Findings:
Company is able to retain customer for longer period on an average that is quite
impressive if company will promise to provide better service in future then
definitely it may help company to gain core competency.

Question 8: Are you looking forward for any additional services, which the bank is
not offering?

SL. Additional Excellent Percentage

No. services
1 Installing ATM 12 40%
at Premises
2 Additional 2 6.67%
interest on Salary
Account
3 Collection of 1 3.33%
cash through
bank
4 Totally net 5 16.67%
banking
Transaction
5 Providing 9 30%
personal banker
6 Other services 1 3.33%

Total 30 100%

45
 40%
Installing ATM at
35% Premises
30% Additional interest on
Salary Account
25%
Collection of cash
20% through bank
Totally net banking
15%
Transaction
10% Providing Personal
5% Banker
Other services
0%
Interpretation: Percentage
40 % of the companies want to have Bank’s ATM (Automated Teller Machine) in
there campus, 30% companies want personal banker for employees, 16.67% of the
company wants whole banking transaction through internet, 6.67% of companies
looking for additional interest on salary account and 3.33% of companies wants
collection of cash through bank representative only as well as other services

Findings:
Providing additional services really helps bank to gain confidence of customer it is
found that most of the HR prefer banking services through internet because they
want to save time as well as effort so bank should involve more and more banking
services through internet.

Question 9: What is your opinion about HDFC bank?

46
 SL. Attributes No. of Percentage
No. response
1 Sincere 7 23.33%

2 convenient 4 13.33%

3 Quality 10 33.33%

4 Trust 2 6.67%

5 Tech Savvy 5 16.67%

6 Need To 2 6.67%
improve
Total 30 100%

35.00%
30.00%
25.00% Sincere
convenient
20.00%
Quality
15.00%
Trust
10.00% Tech Savvy
5.00% Need To improve
0.00%
Percentage

Interpretation:

47
Out of 30 companies 33.33% of rated HDFC bank quality conscious bank,23.23%
of bank rated as sincere,16.67% of companies rated bank as tech savvy,13.33 find
bank as convenient for them, 6.67% find banks as trusted and 6.67% find that
banks need to improve.
Findings:
Along with good service bank should approach quality improvement methods like
Total Quality Management.

Question 10: Are you interested in switching over to HDFC if HDFC provides the
kind of facility that you are expecting?

Yes interested Not No due Total

interested to other
reason
No. of 4 10 4 18
companies
Percentage 22.22% 55.55% 22.23% 100%

60%
50%
40%
30%
20% Percentage
10%
0%
Yes Not No due to
interested interested other
reason
Interpretation:

48
With Reference to question number 8 this question has been asked out of 18
companies 4 companies found interested in switching to HDFC bank 14
companies were not interested in switching with bank, out of 14 4 companies were
not interested because these banking issues is taken care by head office.

Findings:
22.23% of respondent can’t switch to HDFC because banking decision is based on
head office approval so in these cases Bank should contact to head office which is
out of Bangalore by using strong banking presence in India.

Question 11: Apart from present Banking arrangements, personally which bank
service would they prefer for salary account?

SL. Name of Bank No. of HR Liked Percentage

No.
1 HDFC 10 33.33%

2 ICICI 6 20%

3 AXIS 7 23.33%

4 CITI 3 10%

5 Others… 4 13.33%

Total 30 100%

49
 35.00%

30.00%

25.00%
HDFC
20.00% ICICI
15.00% AXIS
CITI
10.00% Others…
5.00%

0.00%
Interpretation: Percentage

Out of 30 HR manager 33.33% liked HDFC bank, 23.33 liked Axis bank, and
20% liked ICICI bank, 10% liked City bank and remaining liked other then these
banks.

Question 12: Who is your organizational banker for current account?

SL. Name of Bank No. of HR Liked Percentage

No.
1 HDFC 8 21.05%

2 ICICI 8 21.05%

3 AXIS 6 15.79%

4 HSBC 6 15.79%

5 Others… 10 26.32.%

Total 38 100%

50
 30.00%

25.00%

20.00% HDFC
ICICI
15.00%
AXIS
10.00% HSBC
Others
5.00%

0.00%
Percentage
Interpretation:
Few banks maintain more then 1 current account here banks have almost same no.
of account HDFC,ICICI bank have 8 current account each and Axis, HSBC bank
have 6 current account each, and few of other banks also have current account with
these banks.

Findings:
ICICI bank and Axis bank are competing in current account to bank so by offering
good product at more affordable price HDFC bank can ensure more market share.

51
FINDINGS INTERPRETATION AND CONCLUSION

FINDINGS:
Followings are the finding during Internship in company.
• Bank have high income customer which is good for bank to grow with
healthy rate.
• Demand of bank’s product will always be there because existing customer
are itself enough for its product
• Bank’s employees are the key assets of bank both managerial as well as
frontline level.
• Brand value of bank is very good in market which helps them to generate
more customers.
• Bank concentrate more on quality rather then cost cutting measures E.g.
ambience, branch maintenance.
• There is healthy growth for those who work hard and promotion happen
very fast.
• Bank follows proper procedure for every transaction.
• HDFC bank has subsidiaries which give them extra synergies.

SUGGESTION:
Following are the suggestion.
• Employee turnover or attrition is high so bank need to take action
regarding these issues because when employee leaves the company
he may try to convert dissuade bank customer
• Not all employees are properly trained mostly frontline customer.

52
 • After sales service is very important factor which helps banks to
retain customer.
• Back office employee, branch employee and call center employee
are not coordinated, a proper understanding help banks to serve
customer better.

CONCLUSION
Followings are the conclusions.
•

53
BIBLIOGRAPHY

http://www.hdfcbank.com/personal/default.htm
http://www.indiainbusiness.nic.in/indian-economy.pdf
http://www.economywatch.com/indianeconomy/indian-economy-overview.html
http://economictimes.indiatimes.com/news/economy/indicators/For-half-of-India-Inc-
economic-scenario-worsens-FICCI/articleshow/2987220.cms
http://www.ficci.com/Sedocument/20051/FICCI-Economic-Outlook-Survey-April-
2010.pdf
http://rbidocs.rbi.org.in/rdocs/Speeches/PDFs/78461.pdf
http://business.gov.in/indian_economy/economics_state.php

www.ebesco.com

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