SUMMER TRAINING REPORT ON ANALYSIS OF VARIOUS SCHEMES PROVIDED BY HDFC BANK

CONDUCTED BY

We understand your world

JAGADHRI
SUBMITTED TO:

Kurukshetra University, Kurukshetra

In partial fulfillment of the degree of Master of Business Administration (Session: 2008-2010)

Submitted to:
DR.Anshu (HOD Of MBA Deptt.)

SUBMITTED By: SONIKA DHIMAN Roll No. 2008054 MBA-3rd Sem. Session: 2008-2010

SETH JAI PARKASH MUKAND LAL INSITUTE OF MANAGEMENT & TECHNOLOGY, RADAUR
Approved by AICTE and Affiliated to Kurukshetra University, Kurukshetra (Haryana) 136119

PREFACE
Theoretical knowledge without the practical exposure is of little value. Theoretical study in classroom are not sufficient to understand the functioning and nature of research. Therefore, it becomes necessary to undergo project work. On the job training in business organization infuses among student senses of critical analysis of the real managerial situations to they are exposed. This gives them an opportunity to apply their conceptual, theoretical and imaginative skills to real life situations and evaluate the results thereof. The concept of summer training, which is there in curriculum of Business Management Schools, serves two important purposes. Firstly, it gives the student the fair amount of insight of the problem faced by them. Secondly, this type of projects helps business management students to get a first hand experience of the actual working conditions, which otherwise is possible only when students the job. Joining any organization without practical experience would be just like getting a driving license without actually a vehicle. I undertook my training in HDFC Bank, ludhiana. During my training, I gained a good experience and in-depth knowledge about the working of banks and how to deal with different situations. This report is account of what I learnt and experienced during my training and I have tried to complete this report with as much perfection as possible.

Acknowledgem ent

ACKNOWLEDGEMENT

Gratitude is not a thing of expression, it is more a matter of feeling.

There is always a sense of gratitude which one express for others for their help and supervision in achieving the goals. I too express my deep gratitude to each and every one who has been helpful to me in completing the project report successfully. First, of all, I am highly thankful to Dr. ANSHU (HOD OF MBA DEPTT) for allowing me to persue my Summer Training Report on Analysis of Various Schemes Provided by HDFC Bank. My special thanks to Mr. Lokesh Dutt (Branch Manager) who encouraged me, properly guided me in each and every possible way through out my Training Report. I give my regards and sincere thanks to Mr. Varun Bali (Deputy Manager) who has devoted his precious time in guiding me and helping me it with in time. I am indebted to the Bank employees who supported me in handling my queries. I feel self-short of words to thanks my parents and friends who had directly or indirectly instrumental in the completion of the project. SONIKA DHIMAN

CONTENTS

INTRODUCTION to Banking of HDFC Profile

BUSINESS PROFILE Capital Structure Shareholding Balance Sheet Awards & Achievements

PROFILE OF THE STUDY OBJECTIVES OF THE STUDY RESEARCH METHODOLOGY Research Design Analytical Tools Limitations of the Study

RESULT & INTERPRETATION SWOT ANALYSIS CONCLUSION

 SUGGESTIONS BIBLIOGRAPHY ANNEXURE - QUESTIONNAIRE

Introducti on

INTRODUCTION TO BANKING
BANKING The word "BANK" is derived from the 'Bancus' or 'Banque', which means a bench. In the early days the European moneylenders and moneychangers used to sit on the benches and exhibit coins of different countries in big heaps for the purpose of changing and lending money, Definition: A Banking company is defined as a company, which transacts the business of banking in India. As per Banking Regulation Act 1949 Section 5(b) "Banking means, accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or otherwise." According to Sir John Paget "No person or body, corporate or otherwise can be a banker who does not, (a) take deposits accounts, (b) take current accounts, (c) issue and pay cheques, (d) collect cheques, crossed and uncrossed, for his customers." In simple words we can say that bank is a financial institution which deals in money and credit by obtaining deposits from public and giving loans and credit to trade and industrial respectively. " Brief restrictions imposed by the Banking Regulation Act 1949 on "Banking Company" 1. Non-Banking Assets and its Disposal: Non-Banking Assets are those assets acquired by the way of security while lending money. It must be shown separately in the sheet and the bank should dispose it within a period of seven years. :

2.

Minimum Limit of Paid Up Capital: Rs. 10 Lakhs if incorporated in India and Rs. 20 Lakhs if incorporated outside India.

3.

Corporate Structure UIS 12: Subscribed capital should not be less than 50% of authorized capital and paid up capital should not be less than 50% of subscribed capital.

4.

Maintenance of Reserve: (a) Statutory Reserve: Section 17 makes it obligatory a banking company to transfer 20% of annual profits every year to this reserve. (b) Cash Reserve Ratio (CRR): U/S 17 of the act, a scheduled bank should maintain with RBI an average daily balance (varies from time to time) and deposits in India. (c) Statutory Liquidity Rati.o (SLR): U/S 24 in addition to the above CRR, every banking company has to maintain in India at least 33.75% not exceeding 40% of its demand deposits in cash, gold (or) an encumbered approved securities valued at a price not exceeding the current market prices is known as SLR. (d) Restriction on Payment of Dividends by a Banking Company U/S 15: The banking company cannot pay dividend on its shares until all its capital expenses and accumulated losses area are completely written off.

5.

No Banking Company can grant any Loan (or) Advance:

To the directors or other parties in which directors are interested.

FUNCTIONS OF BANKS
1. Primary Functions (a) (b) Acceptance of deposits Making Loans and Advances 2. Loans Overdrafts Cash Credit Discounting of Bills of Exchange

Secondary Functions (a) Agency Functions Collection of cheques and bills etc Collection of interest and dividend Making payment on behalf of customers. Purchase and sale of securities. (b) Facility of transfer of funds To act as trustee and executor Safe custody of customers valuable articles and

Utility Functions

securities. customers.

Underwriting facility Issuing of Travelers cheque and letter of credit Facility of foreign exchange Providing trade information Providing information regarding credit worthiness of their

CLASSIFICATION ON BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types: 1. PUBLIC SECTOR BANK Public sector banks are those banks that are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective. 2. PRIVATE SECTOR BANKS These banks are owned and run by the private sector. Various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in preparation to the share of the banks held by him. 3. CO-OPERATIVE BANKS Co-operative banks are those financial institutions. They provide short term & medium term' loans to there members. Co-operative banks are in every state in India -Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. .Every state cooperative bank is an apex bank, which provides credit facilities to the central cooperative bank. It mobilized financial resources from richer section of urb3n population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI.

ORGANIZATION GRADE STRUCTURE

BOARD OF DIRECTORS

MANAGING DIRECTOR

Brand 8

Functional Head Of Group Head

Brand 8

Functional Head

Brand 7

Vice President

Brand 6

Assistant Vice President

Brand 5B

Assistant Vice President

Brand 5A

Senior Manager

Brand 4

Manager

Brand 3

Deputy Manager

Brand 1B

Assistant Manager

Brand 1A

Executive

HDFC PROFILE
Board of Directors: Mr. Jagdish Capoor Mr. Aditya Puri Mr. Keki M. Mistry Mr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pande Mr.Ashim Samanta Mr. C.M. Vasudev Mr. Gautam Divan Mr. Bobby Parikh Mr. Venkat Rao Gadwal Dr. Pandit Palande Mr. Harish Engineer Mr. Paresh Sukhtankar (Chairman/Chair Person) (Managing Director) (Director) (Director) (Director) (Director) (Director) (Director) (Director) (Director) (Director) (Director) (Exec. Director) (Ex. Divn.)

Executive Vice-President (Legal) & Co. Secretary Mr. Sanjay B.Dongre Auditors M/s Haribhakti & Co. Chartered Accountant Registered Office HDFC Bank House Senapati Bapat Marg Lower Parel Mumbai 400 013 Tel.:56521000, 66521000 Fax: 24960737 Website:www.hdfcbank.com Email:investor.heupdesk@hdfcbank.com

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED (HDFC)

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 RBIs 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. HDFC Bank is headquarted in Mumbai. The Bank at present has network of over 4\531 branches spread over 228 cities across India. All branches are linked on an online real time basis. Customers in over 120 locations are also serviced through Telephone Banking. Promoter Business Focus Capital Structure Time Bank Amalgamation Distribution Network Management Technology Businesses Ratings

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. HDFC currently has a client base of over 5,00,000 borrowers, 13,00,000 depositors, 1,00,000 shareholders and 52,000 deposit agents. HDFC raises funds from international agencies such as the World Bank, IFC (Washington), USAID, CDC, ADB and KfW, domestic term loans from banks and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the eighth year in succession. 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. Over the years, HDFC has helped to promote institutions in the field of housing finance, and in the financial sector in general. Notable amongst these has been HDFC Bank. This was initially promoted in a strategic alliance with Nat west Markets-UK. HDFC Bank commenced its operations in February 1995. HDFC Bank currently has strategic business collaboration with The Chase Manhattan Bank. HDFC Bank is presently one of the largest private sector banks following the merger with Times Bank Limited. The merger has provided HDFC Bank a strong presence in the retail-banking segment. HDFC currently holds 24.4 % of equity in HDFC Bank. Stock also listed on NYSE in the form of American Depository Shares Network of over 684 branches in 316 cities & over 1605 ATM's Phone banking, mobile and internet banking Customer base of over 3.1 million accounts Key business areas Wholesale banking

Retail banking Treasury operations Financials (as per Indian GMP) for year ended Mar 31,2003 Total income: Rs 24.96 bn, increase of23% over previous year PAT: Rs 3.9 billion, increase of30% over previous year. Return on Equity -18.1 % -Market capitalization Rs. 66 billion (US$ 1.39 billion). BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The Bank's aim is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services in the segments that the bank operates in 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 and regulatory compliance. HDFC Bank's business philosophy is based on four core values: Operational Excellence, Customer Focus, Product Leadership and People. TIMES BANK AMALGAMATION In a milestone transaction in the In Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank Ltd, effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamation added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to crosssell and leverage alternative delivery channels

DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 684 branches spread over 315 cities across the country. All branches are linked on an online real-time basis. Customers in 80 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 centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base. The bank also has a network of over 1605 networked ATM's across these cities. Moreover, all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders can access HDFC Bank's ATM network. 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 HOFC 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 HOFC are also on the Board. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multibranch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally to build the infrastructure for a world-class bank. In terms of software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritized its engagement in technology and the Internet as one of its key goals and has already made significant progress in webenabling 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 PROFILE HDFC Bank caters to a wide range of banking services covering both commercial and investment banking on the wholesale side and transactional/branch banking on the retail side. The bank has three key business areas: (a) Wholesale Banking Services The Bank's target market is primarily large, blue chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging midsized corporates. For these corporate, 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 that combine cash' management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers.

(b)

Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile 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. Its also a leading provider of Depository Services to retail customers, offering 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 debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in November 2001. The Bank is also one of the leading players in the "merchant acquiring" business with over 25,000 Point-of-sale (POS) terminals for debit / credit cards acceptance 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.

(c)

Treasury Operations 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.

RATING HDFC Bank has its deposit programmes rated by two rating agencies -Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed Deposit programme has been rated 'CARE MA (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 promissory with the outlook on the rating as "stable". This rating indicates "highest credit quality" where "protection factors are very high". In each case referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.

CAPITAL STUCTURE
The authorised capital of HDFC Bank is Rs. 550 Crore. The issued, subscribed and paid up capital is divided into Rs. 354.43 Crore equity shares @Rs. 10/- each.
From year to year Class of Shares Authorized Capital Issued capital Paid up shares (Nos.) 354432920 319389608 313142408 309875308 284791713 282045713 281374613 243596261 Paid up face value 10 10 10 10 10 10 10 10 (Rs. Crores) Paid up capital 354.43 319.39 313.14 309.88 284.79 282.05 281.37 243.60

2007 2006 2005 2004 2003 2002 2001 2000

2008 2007 2006 2005 2004 2003 2002 2001

Eq. share Eq. share Eq. share Eq. share Eq. share Eq. share Eq. share Eq. share

550.00 450.00 450.00 450.00 450.00 450.00 450.00 300.00

354.43 319.39 313.14 309.88 284.79 282.05 281.37 243.60

SHARE HOLDING
Shareholding pattern as on : Face value 30th June, 2008 10.00 No. of shares % of holding 31st Mar, 2008 10.00 No. of shares % of holding

PROMOTERS HOLDING Indian promoters Sub Total 82443000 8294300 19.42 19.42 82443000 82443000 23.26 23.26

NON PROMOTERS HOLDING INSTITUTIONAL INVESTORS Banks fin. Institution & Insurance Flls Sub Total 10838436 118883475 140100491 2.55 10661235 3.01 25.89 31.67

28.00 91765868 32.99 112263221

OTHER INVESTORS Private Corporate Bodies NRIs / Foreign Others Govt. Others Subtotal General Public Grand Total 42499404 16664829 9395656 83145165 15169555 50368231 429608277 10.01 3.92 2.21 19.58 35.73 11.81 100.00 31389135 8.86 6302275 1.78 6091527 1.72 76595508 21.61 120378445 33.96 39348254 11.00 254432920 100.00

BALANCE SHEET AS ON 31st March, 2008

As on Assets Advances Cash & Money at Call Other Current Assets Balance Sheet Total (BT) Liabilities Equity share capital Reserves Deposits Borrowings Other cash liab. / Pros. Grand Total Non performing Assets (NPA)% Capital Adequacy Ratio (CAR)% 31- Mar- 2008 Rs. Mn % BT 634269.00 47.63 147783.40 11.10 44026.90 3.31 1331766.00 100.00 3544.30 111428.00 1007686.00 44788.60 164319.10 1331766.00 0.43 13.60 0.27 8.37 75.67 3.36 12.34 100.00 31-Mar-2007 Rs. Mn % BT 469447.80 51.45 91538.80 10.03 36054.80 3.95 912356.10 100.00 3193.90 0.35 61137.60 6.70 682979.40 74.86 28153.90 3.09 136891.30 15.00 912356.10 100.00 0.43 13.08 -

AWARDS AND ACHIEVEMENTS

HDFC Bank began operations in 1995 with a simple mission : to be a World Class Indian Bank. We realised that only a single minded focus on product quality and service excellence world help up get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been appreciated both nationally and internationally. 2007 Business Today monitor group : survey Financial Express Global HR Excellence Awards : :

One of Indias Most Innovative Companies. Best Bank Award in Private Sector Category Employer Brand of the year 2007-2008 Award first runner up & money more Best Bank Award Corporate Best Bank Award Best Corporate Social Responsibility Practice Award Best Bank Award in Private Sector Best Retail Bank in India HDFC Managing Director Aditya Puri wins the leadership achievement for India.

Business Today : American Express : Bombay Stock Exchange & Mass : Comm. foundations Business for social responsibility Outlook Money & NDTV Profit : The Aisian Banker Excellence in : Retail financial services Asian Banker :

2006 Business Today Forbes Magazine Business World The Asset Magazines Triple Asiamoney Award Euromoney Award 2005 Asiamoney Awards Asiamoney Awards The Asian Banker Excellence Hong Kong based Finance Asia magazine

: : : : : :

Best Bank in India. One of Asia Pacifics Best 50 companies. Best listen Bank of India Best Domestic Bank Best Local Cash Management Bank in Large and Medium segments. Best Bank in India.

: : : :

Best Domestic Commercial bank Best Cash Management Bank India Retail Banking Risk Management Award in India Best Bank India

Economic Times Awards

Company of the Year Award for Corporate Excellence. Best Domestic Bank in India Region 2005 Best Local Cash Management Bank in India US$11-100m 2005 Best Bank in India for the third consecutive year in 2005. Most Customer Responsive Company Banking and Financial Services 2005.

The Asset Triple A country : Award The Business Today KPMG : Survey The Business Today KPMG : Survey Economic Global Times Avaya :

Connect

Customer

Responsiveness Award 2004 Asiamoney Award Asiamoney Award Asiamoney Award Asiamoney Award Asiamoney Award Business World Forbes Global Asian Banker Awards

: : : : : : : :

Best Local Cash Management Bank in India US$11-100m Best Local Cash Management Bank in India >US$501m Best Local Cash Management Bank in India 1989-2004 (poll of polls) Best Overall Domestic Trade Finance services in India 2004 Most improved company for Best Management Practices in India 2004 One of Indias Most Respected Companies 2004 Best under a Billion, 100 best smaller size enterprises in Asia / Pacific and Europe 2004 Operational Excellence in Retail Financial Services 2004 Best Domestic Bank in India 2004

The Asset Triple A Country : Awards 2003 Forbes Global

Best Under a Billion, 200 Best Small Companies 2003 Best Domestic Bank in India 2003 One of Indias Most Respected Companies.

The Asset Triple A Country : Awards Business Business World World The : Most : :

Respected Company Awards The Asset Magazine The Asset Magazine

Best Cash Management Bank Best Trade Finance Bank

FE-Ernst & Young Best Banks : Survey Outlook Money Business Today NASSCOM Awards : : & :

Best New Private Sector Bank 2003 Best Bank in the Private Sector 2003 Best Bank in India 2003 Best IT users in Banking 2003

economictimes.com IT Users

There have been some other proud moments as well : London-based Euromoney magazine gave us the award for Best Bank India in 1999, Best Domestic Bank in India in 2000, and Best Bank in India in 2001 and 2002. 2002. For our use of information technology we have been recognized as a Computer World Honors Laureate and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computer World, Inc., USA. Our technology initiative has been included as a case study in their online global achieves. The Economic Times has conferred on us the Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01. Leading Indian business magazine Business India named us Indias Best Bank in 2000. In the year 2000, leading financial magazine Forbes Global named us in its list of The 300 Best Small Companies in the world and as one of the 20 for 2001 best small companies in the world. We are aware that all these awards are mere milestones in the continuing, never-ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services. Asianmoney magazine has named us Best Commercial Bank in India

FACILITIES PROVIDED

Phone Banking, Mobile & Internet Banking. Capital Adequacy Rates (CAR) stood at 13.60% Pension Accounts. Secrecy of Customers State Deposit Lockers. Addition & Deletion of the names of joint account Holders. The time noun for various Banking Transaction. Advances increases from Rs. 46945 Crores to 63427 Crores.

Profile of The Study

PROFILE OF THE STUDY

Theory without proctise is sterile, Practise without theory is blind; The study was related to analyze the various schemes provided by HDFC Bank and the customers responses regarding its different products. Schemes that are covered under the project were saving accounts, current accounts, DEMAI A/c fixed deposits and some other schemes. Study includes the extensive survey in which more than 120 customers were interviewed. Although survey was confined to Jagadhri & Yamuna Nagar one can easily interpret the general overview. During my project I realized that now banking business become more personal in nature as bank staff tries to exploit their own contacts and pays more attention on the customers. In the end I would like to say that HDFC has proved itself one of the best player in the banking industry through its side range of services and its customer satisfaction.

VARIOUS SCHEMES OF HDFC BANK

SAVING ACCOUNTS
A saving Account is where the Bank keeps your money. The account has your name on it, so the Bank known, its your money. The e-age saving account from HDFC Bank brings a comprehensive range of products and services. For opening the saving account initial balance of Rs. 5000/- in the person wants A TM and Rs. 5200 if he wants International Debit Card. FEATURES INTEREST RATE It is calculated at of 3.5% per annum, credited to customers account at quarterly intervals interest is based on the minimum balance in the account between the 10th and last day of the month and is credited to the customers account on March 31st, June 30th, Sept. 30th and Dec. 31st. QUARTERLY STATEMENT The statements are sent to the mailing address of account holders on March 31st, June 30th June 30th Sept. 30th and December 31st of every year. The monthly statements, duplicate statements, certificate of balance are provided free of cost of the bank. ISSURANCE OF CHEQUE BOOK First 25 cheque leaves are free then further can be obtained from the bank. AQB CHARGES You have to maintain average quarterly balance of Urban Rs. 5000 & Rs. Rs. 750 (semi-urban) per quarter is charged.

PERSONALISED CHEQUE BOOK To provide add security saving account cheque hook comes with customers name printed on it at no extra cost. In case of joint account, both account holders name will be printed on the cheque book. DD CHARGES Upto Rs. 1,00,000 Above Rs. 1,00,000 CLOSING CHARGES If saving account is dosed before 6 months then 100 Rs. are charged else no charges. WHO CAN APPY : Resident Individual (Sale or Joint) Minor Hindu Undivided Family Trusts, Associations & Societies. : : Rs. 2.50/1,000 Rs.2.00/1,000

JOINT ACCOUNT : Max. of 3 can jointly open saving Balance Account

TYPE OF SAVING ACCOUNT

1. SUPER SAVER ACCOUNT If one opens super saving account with a nominal sum of Rs. 25,000 then you need not maintain average quarter balance of Rs. 10,000 in your saving balance account. AQB of Rs. 10,000 ion saving balance account service charges f Rs. 750 per quarter are not applicable. 2. SWEEP IN ACCOUNT If one open sweep in account with Rs. 50,000 which is automatically linked to saving account he / she gets an access to zero balance saving account i.e. one doesnt have the need to maintain average quarterly balance of Rs. 10,000. In case of non maintenance of AQB no service charges of Rs. 750 per quarter are applicable one needs to maintain a minimum FD of Rs. 50,000 at all the times to avoid service charges. 3. ZERO BALANCE SALARY A/C When one company opts for the HDFC Bank corporate salary program, employee gets more than a saving account. The account holders get a superior banking experience and a number of value added services such as host of value added services. An e-age banking account that is accessible 24 hours a day, 7 days a week & 365 days a year. Through free net banking, Mobile banking, phone banking, wide network of A TMs with branches across the country employees get the convenience of having their salaries credited directly to their account, a free international debit card, % facility plus free demand draft & preferential interest rates on personal loans. Services charges of Rs. 750 are not applicable under this scheme and the bank provides free fund transfer facility. 4. DEFENCE PERSONNEL ACCOUNT The corporate defence salary program is targeted for serving defense personnel (Indian Air Force, Indian Army, Indian Navy) this program offer world class services & benefits to defence personnel as :

Features : 5. Free international debit card Free DDs upto Rs. 25,000 per instrument at home branch. Discounted rates of interest for asset products. Credit card at preferential rates Locker card at preferential rates Locker facility offered at a 25% discount Free bill pay facility. Free inter city banking Personalized cheque book Free net banking, mobile & phone banking Interest at 3.5% per annum.

SAVING PLUS ACCOUNT How you can get access to some of the finest banking of facilities with HDFC Banks saving Plus Account. All you have to do is maintain a average quarterly balance of Rs. 10,000/- and in case of fixed deposit of Rs. 50,000 No minimum AQB is required and experience the benefits below Feature & Benefits : Wide network of branches & over thousand of ATMs 3 Free transactions an any books ATM per months except (SBI / Free International Debit Card Free electronic funds transfer facility, Net Banking, Phone Free Demand drafts on HDFC Bank locations, upto a limit of Rs. Free payable at par Chequebook. Special relationship discount on purchase of Gold Bars.

Andhra Bank ATMs)

Banking & Mobile Banking. 25,000/- per day.

Eligibility : The following are eligible to open a saving Plus Account. Resident Individuals (Sole or Joint Account). Hindu Undivided Families

 6.

Foreign Nationals residence in India.

SAVING MAX ACCOUNT : Welcome to world of convenience. Presenting saving max account, with maximum benefit to make your Banking experience a pleasure. By maintain an average quarterly balance of Just Rs. 25,000/- you get premium services. Features & Benefits Free womans advantage / International Debit Card. Free Demand Draft on HDFC Bank locations, upto a limit of Rs. Free monthly statement of Account. Free Passbook facility at home Branch. Free Bill pay & Insta Alert for all account holders. Free electronic fund transfer facility, Net Banking phone & Self / Third Party cash Deposit / Withdrawl at non home

50,000 per day at home Branch.

Mobile Banking. branches upto Rs. 50,000/- per day free. AQB Non Maintenance Charges If the AQB in saving Max Account >= Rs. 25,000 and / or the balance in the FO is > = Rs. 1,00,000/- then no charges will be levied. If the AQB falls below Rs. 25,000 & For Balance is < Rs. 1,00,000 the charges will be applicable. 7. KIDS ADVANTAGE ACCOUNT / SCHEME In HDFC Bank start saving for your child today & secure his / her future. Which looks after your childs financial growth. So watch the saving grow as your child grows Features & Benefits Amounts is excess of Rs. 5000/- over & above a balance of Rs. 10,000/- gets converted into fixed deposits for a special period in your childs name. Free Education cover of Rs. 1,00,000/-

Net Banking facility to monitor both your saving Account as well Free email statement facility. Free Passbook facility Available. Free funds transfer between your saving Account & your kids Free International Debit Card for your child (above 7 years of

as your kids adv. A/c.

Adv. Account. age) with a maximum drawing capability of Rs. 2500/- per day. HOW TO OPEN To open a Kids Advantage Account one of the parents should have a saving account with the Bank & need to invest a sum of Rs. 10,000 in a fixed deposit in childs name for a minimum duration of 6 months and 1 day. With this zero balance Kids saving Account linked to the fixed deposit will be opened in the childs name. Instruct the Bank to transfer a standard amount (Min Rs. 500/-) from your saving Account every month to your childs account. Eligible to open a Kids Advantage Account : You can open a Kids Advantage Account as long as your child is minor and you have a saving account with HDFC Bank. 8. FAMILY SAVINGS ACCOUNT The family saving group link together upto four Individual HDFC Bank accounts (Same Family) under a single group. In this combined Average Quarterly Balance (AQB) of Rs. 25000/- is required to maintain otherwise charges may apply. Features & Benefits of group. Mutual funds. Free one view to access all your accounts. Cash delivery @Rs. 50/- per delivery. Get 5 free cash withdrawl transactions on SBI Free standing Instructions for Investment into ATMs per group per month. Family members with NRI states can also be paid

 Holders. Statement. 9.

Free International Debit Card for all Account Free Mobile Banking, Net Banking & Email

SENIOR CITIZEN ACCOUNT HDFC Banks senior citizens account is dedicated to you. HDFC Bank appreciates your needs & endeavours to fulfill them in the best manner possible. In this minimum AQB of Rs. 2500/- is required, in case of non maintenance Rs. 250/- per quarters will be charged. Features & Benefits Shop wish pride with your easy shop International Debit Card. Enjoy an enhanced cash withdrawl limit of Rs. 25,000 per day You need not search for an HDFC Bank ATM. You can Keep a close eye on your account with monthly account Avail free SMS alerts to know the transaction. You need not walk down to Branch. Use Phone Banking, Payable at Par (PAP) chequebooks are issued free.

at any HDFC Bank ATM. withdraw cash from ATM of any bank three a month for free. statement offered free.

Mobile Banking or Net Banking.

CURRENT ACCOUNTS
HDFC Bank understand that running a business requires time and money. Also since your business needs are constantly evolving, it requires effective & timely management thats where HDFC steps in. By providing you with a choice of current Account options that facilitate seamless transactions and helps you will faster mobilisation of funds. HDFC makes their business to help you with your business, by offering you a current account loaded with all the benefits you need, to stay ahead of your competition. The current account of HDFC is of following types : 1. Regular current account 2. Premium current account 3. HDFC Bank Trade 4. HDFC Bank Plus 5. MAX Current Account 6. FIEXI Current Account 7. APEX Current Account

REGULAR CURRENT ACCOUNT

The regular current account requires an average quarterly balance of Rs. 10,000 only. Besides many facilities are available. FEATURES OFFERED TO REGULAR CURRENT A/C HOLDERS : Cheque Book Charges (Issued by bank) : o Payable at per o Charges @ Rs. 2/- per leaf ATM Cards. o Free card per account o Replacement of damaged card free o Replacement of lost card

 24 Hour Phone Baking Access (Please check for availability in your city) Anybody can open his account except minor. 30 transaction through ATM per month are free. The charges for non maintenance of AQB are Rs. 750 per quarter. The charges for issuing the new cheque book is Rs. 2/- per leaf Monthly statements are free.

PREMIUM CURRENT ACCOUNT

You can avail benefits of trade & plus account with premium current account that requires an average balance of Rs. 25,000 only per quarter & other benefits. Feature & Benefits offered to Premium Current A/c Holders : Cheque Book Charges (Issued by bank) o Payable at par o Charges @ Rs. 2/- per leaf ATM Cards o Free card per account 1 one o Replacement of Damaged Card Free o Replacement of lost card Rs. 100/ Transaction through phone banking are free. Free monthly statements. Facilities like Net Banking, Phone & Mobile Banking For Non Maintenance of AQB Rs. 900 per quarter are charged.

HDFC BANK TRADE

It is a current account ideal for small funds transfer across varies cities in the country. While trade account is suitable for small businessmen & traders. Features offered to HDFC Bank Trade Account Holders : city). Minimum average quarterly balance is Rs. 40,000/At par payable Cheque Book facility. Free pay order payable in each location. To be issued from home branch. Free demand draft payable at HDFC location upto 30 per quarter Free ATM card for individual / sole proprietorship. Free online, real time net banking. All cheque books are free. Free intercity fund transfer upto Rs. 25 Lacs. In case of non maintains of AQB charges are Rs. 1200/- per quarter. Cheque book is issued @ Rs. 2/- leaf for those accounts which are not maintaining the AQB. 24 Hour Phone Banking access (Please check for availability in your

HDFC BANK PLUS

The product is a current account, which is based on the concept of single account most location banking, With this one account one can access more than 221 cities in the country. In other words the power of a single account and multi city banking is provided through this account. This results in huge saving on inter city movements of funds and their service charges. Features offered to HDFC Bank Plus Account Holders : Minimum average quarterly balance is Rs. 1,00,000/- per quarter. Funds transfer between the other locations is free upto 100 lacs per month. Free pay order and demand drafts of HDFC Bank Location. Free phone banking, net banking and Mobile Banking. Payable at Par Cheque Book facility. Cheque book will be issued @ Rs. 2/- per leaf, for account which are not maintaining the required AQB. Huge saving on bank charges. Free collection of outstation cheques, payable on HDFC Bank locations.

MAX CURRENT ACCOUNT

Presenting Maximum benefit and minimum hassles for you with Max current account. With a Rs. 5 Lakhs average quarterly balance requirement, we present to you a world of privileges that keeps you business expand & grow. Other beneficial features on this current account truely enhances your business potential to the maximum. Features & Benefits Offered : Maximum transactional benefits with faster mobilization of funds. Access to more than 750 branches. Faster collection of outstation cheques. Huge cost savings in inter city transactions for payable at per cheque issuance, funds transfer, Demand Draft / Pay order. Free Account to Account funds transfer between HDFC Bank accounts. Free payment & collection through RTGs. Free anywhere collection & payment (clearing) upto Rs. 5 Crore per month with in HDFC Bank branch network. Free cash deposit upto Rs. 50 Lakh per month across all home branches. Choice of local / payable at per cheques. 500 leaves free per month. Enjoy facilities like 24 Hour phone banking, Net banking & Mobile banking that helps you check your balance & Transaction details.

.DEMAT

ACCOUNT

Now you can avoid multinational, duplication & prefer age of share certificates. Open a Demat Account with HDFC Bank & protect your securities from Damage, doss & theft. And remember, HDFC Bank is the largest Depositary participant amongst all Banks. How to open an HDFC Bank Demat Account Fill up the Application form and agreements & get it signed by all applicants. Attach one photo of each applicant & provide proof of Identity / Residence. Once your Demat account is active, you will receive periodic account statement from HDFC Bank. This account is also accessible on the Internet. Benefits Offered: No Account opening charges. Nonainal Annual Maintenance charges Personalised Instruction Book Paperless trading which help prevent loss & misplacement. Competitive fees for transactions. Zero stamp duty.

CUSTOMISED FEE SCHEDULE FOR DEMAT ACCOUNT / DEPOSITARY SERVICES

S. No. 1. 2. 3. Fee Head Account opening Dematerialisation Rematerialisation Fees Minimum

Nil Rs. 3 per certificate, Plus Rs. 38.00 Rs. 35/- per request At actual, as viewed by depositary currently Rs. 10/per certificate 0.04% of the transaction Nil Nil 0.04% of the

4. 5. 6. 7. 8.

Equity transaction sell Eq. transaction buy Assets Holding Pledge services Folio Maintenance

value

of Rs. 20.00 of Rs. 25.00

value

shares Rs. 500 per Demat Account Rs. 500 per annum

FIXED DEPOSITS
Fixed deposit is the deposits with the bank for fixed period of time at a certain specified rate. These are repayable on the expiry of the specified period to the depositor along with the amount of interest. TYPES OF FIXED DEPOSITS: Simple FD Super Saver Sweep in 5 Yrs. Tax Saving FD

SIMPLE FD: Under Simple Fixed Deposit Scheme the nominal balance for is Rs. 25,000 for the first time and after that one can open simple FD with nominal balance of Rs. 10,000. One can choose any account plan between 15 days of 5 years. Interest is forfeited if the FD is broken before 15 days but there are no penalty charges. Interest is charged from the day when FD is open. SUPER SAVER ACCOUNT: It is an overdraft facility with super account. One earns a high interest on FD and at the same time enjoys the liquidity associated with saving account. Super saver account allow to issue cheques and an ATM card is provided for withdrawals just like saving account. One gets money whenever needed from any of the extensive network of 684 branches in 316 cities & over 1605 ATM across the country. OPERATION: One can open super saver account with nominal balance of Rs. 25,000 and enjoys a temporary withdrawal of limit of up to 75% the deposit. Ever after withdrawal of a part of limit entire deposit continues to earn a high rate of interest i.e. deposit is not broken. One is required to pay an overdraft interest that is 2% more than the interest earned by the fixed deposit for the amount of overdraft and only for the period for which one user the

money. One can take an overdraft simple by using a cheque. If overdraft limits greater than Rs. 2 Lakh than overdraft interest will be charged at the banks Prime Leading Rate (PLR). One can choose any account plan between 6 months and 5 years for super saver account even if one withdraws upto 70% of super saver account on day one and do not put it back for a year, still earns more that he / she earns through saving account. In fact on opening super saver account with nominal balance of Rs. 10,000 one need no maintain AQB of Rs. 10,000 in saving accounts no service charges of Rs. 750 are applicable. SWEEP IN ACCOUNT: In this scheme the fixed deposit is linked to a zero balance saving account. In the event of customers saving account is short of funds, the FD is broken and the required fund is transferred into the saving account and one can withdraw this amount through ATM card or cheque. When one wants his / her money to ear high interest, It work likes a fixed Deposit & when one wants to withdraw money in a hurry, it works like a saving account. OPENING OF SWEEP IN ACCOUNT One can open sweep in account with minimum amount of Rs. 50,000 and thus gets access to zero balance saving account i.e. no service charges are applicable in case of non maintenance of AQB of Rs. 5000 in saving account. One needs to maintain a minimum FD of Rs. 50,000 at all times to avoid service charges. In case of non-maintenance of Rs. 50,000 in FD, saving Account will be subject to service charges of Rs. 750 per quarter in case of non-maintenance of AQB.

FEATURES: Fixed Deposit are maintained in units of Rs. 1 If one requires funds in saving account the exact amount needed is swept into saving account, thus minimizing interest loss. No Penalty Charges There are no penalty charges for banking fixed deposit to saving account. Full Interest Amount swept in earns interest for the tenure it has completed without any penalty. Also rest of the deposit continues to ear the original interest rate till maturity. Linking of New Fixed Deposits and Saving Account Every time when one opens a new deposit of Rs. 10,000 or above one can request to link sweep in facility. But fixed deposits / are broken in the order in which they are opened i.e. the earliest fixed deposit is broken first and the latest fixed deposit is broken at last. Reinvestment One has the choice of rolling over the principal only or principal plus interest i.e. reinvestment of the interest. The automatic rollover will be the same tenure & at interest rate applicable on the maturity date. 5-YEAR TAX SAVING FIXED DEPOSIT In 2006, It was announced for the first time that Bank Fixed Deposits booked by an Individual / HUF for 5 years & upto Rs. 1,00,000/- will be allowed for exemption under sec 80C of Income Tax Act 1961.

Features & Benefits offered: Minimum amount Rs. 100/Multiples of 100/Maximum amount Rs. 1 Lac. Tenure 5 years (Lock in period) Rate of Interest 8.5% p.a. & senior citizens 9.00% No partial / premature withdrawal allowed. Sweep in not allowed In the case of Joint holder deposit, the deduction from Income under sect 80C of the act shall be available only to first holder of the deposit. No OD or pledge allowed.

TAX DEDUCTION FOR RE-INVESTMENT FD TDS will be deducted when Interest payable or reinvestment per customer per branch exceeds Rs. 10,000/- in the financial year. A consolidated Annual TDS certificate will be mailed to you after the end of financial year, including details of all deduction. At the end of the financial year, TDS will be deducted on the basis of Interest occurred on the FD(s) even if the interest has not been created.

HDFC BANK FIXED DEPOSITS

Avail attractive Interest Rates upto 9.50% p.a. (Upto 10% p.a. for Senior Citizen) 7-14 days 15-29 days 30-45 days 46-60 days 61-90 days 91-99 days 100-101 days 102-180 days 6 months 1 day 6 months 14 days 6 months 15 day 6 months 16 days 6 months 17 day 9 months 14 days 6 months 15 day 9 months 16 days 9 months 17 days 1 year 1 year 1 day 1 year 14 days 1 year 15 days 1 year 16 days 1 year 17 days 2 years 2 years 1 day 2 years 14 days 2 years 14 days 2 years 16 days 2 years 17 days 3 years 3 years 1 day 5 years 5 years 1 day 8 years Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs Below Rs. 15 Lacs 3.00% 5.50% 6.00% 6.00% 6.25% 7.00% 7.75% 7.00% 8.00% 8.25% 8.00% 9.00% 8.45% 8.75% 9.50% 8.75% 9.00% 9.50% 9.00% 9.00% 9.00% 3.50% 6.00% 6.50% 6.50% 6.75% 750% 8.25% 7.50% 8.50% 8.75% 8.50% 9.50% 9.25% 9.25% 10.00% 9.25% 9.50% 10.00% 9.50% 9.50% 9.50%

OBJECTIVES OF THE STUDY

To know the concept of banking sector. To explore various schemes like saving account, current account, fixed deposits, demat account offered by HDFC Bank. To know which is the most popular scheme of the bank. To know promotional efforts made by the bank to attract customers. To know problems faced by the customers in the bank. To find out awareness level & reaction of customers towards direct banking channels providing by bank. To find causes of dissatisfaction, if any, about Direct Baking Channels. To provide suggestions for improvement in different schemes provided by HDFC bank.

Research Methodology

RESEARCH METHODOLOGY
Research is any organized inquiry carried out to provide information for solving problems. Business research is a systematic inquiry that provides information to take business decisions. Definition Research comprises of defining and redefining hypothesis or suggesting solution, collecting, organizing and evaluating data making deductions and reaching conclusions. By Cliford Woody The term Research Methodology here comprises of all research activities carried on in connection with the Analysis is various schemes under Saving, Current and Fixed Deposit Accounts Provided by HDFC Bank. The basis purpose of Research Methodology is to describe the research procedure. It helps the researchers to the way to move on for carrying the study. Formulation of research problem Extensive literature survey Research Design Collection of data Analysis of Data Interpretation Recommendation

PROBLEM STATEMENT
The first step in research is formulating a research problem. A poorly defined problem will not yield any useful result. It is rightly said that a problem well defined if half solved. In order to identify the research problem three categories of symptomatic situation namely overt difficulties, latent difficulties and unnoticed opportunities should be studied. 1. Overt difficulties are those, which are quite apparent, and which manifest themselves for example if a firm has been witnessing a decline in sale for same time this could be called on overt difficulty. 2. Latent difficulties on the other hand are those, which are not so apparent and I which if not checked, would soon become evident for ex. Decline sales may in due course demoralize the sale staff. 3. Unnoticed Opportunities indicate the potential for growth in a certain area of marketing. Such opportunities are not clearly seen and some effort is required to explore them. As such no problem was given to me while doing my summer training project but I found the following problems in the organization. Complicated terms and Conditions The terms and conditions of every product was so much complicated that it is not easily understandable by the customers. Strict Rules and High Targets Rules and regulation for the employee of the organization were so much tight some time they feel very hectic. Moreover the targets given to them are also very high.

RESEARCH DESIGN
There are many definitions of research design, but no definition imparts the full range of important aspects. Several examples from leading authors can be cited. Research design is like arrangement of conditions for collection and analysis of data that aims to combine relevance to the research purpose with economy in procedures. Research design is purely and simply the framework of plans for a study that guides the collections and analysis of data. Research design is the conceptual structure within which the research is conducted. These definitions differ in detail, but together they give the essentials of research design. First, the design is a plan for selecting the sources and types of information used to answer the research question. Second, it is a framework for specifying the relationship amount the various variables. Third, it is a blueprint that outlines each procedure from the hypothesis to the analysis of data. The design provides answers for such questions as these: Why the study is being made? What techniques will be used togather data? What kind of sampling will be used? How will time & cost constraints be dealt with? How the data can be analysed? In my study the organization was HDFC Bank and sample size was around 100 persons.

TYPES OF RESEARCH DESIGN

Exploratory Research design

Descriptive/ Diagonostic Research Design

Experimental Research Design

SOURCE OF DATA COLLECTION

To make the research complete it is very necessary to have useful and authentic data. There are two types of data collection sources.

PRIMARY SOURCE OF DATA COLLECTION

Primary data are those, which are collected afresh & for the first time & this happen to be original in character. In my project simple well-drafted questionnaire was circulated among all respondents. Full freedom was provided to an individual to answer the questions. Personal & Telephonic interviews, observation, personal opinion & viewpoints of the respondents about the various schemes helped incompletion of the project.

SECONDARY SOURCES OF DATA COLLECTION

These are those which are collected by someone else & which have been passed through statistical process. Brouchers, Manual, Journals, Magazines, Site of HDFC Bank and Various Articles lot many inputs for successful completion of project.

SAMPLING DESIGN

The various sampling plans used in the study were as follows: Random Sampling

In this sampling technique each and every unit of universe has the same chance of being included in the sample and every unit is selected randomly out of population. Judgement Sampling

In this investigator selects only those items, which represents the characteristics of the problem under study. The judgement of the investigator plays an important role in the type of sampling. Convenience Sampling

In this the investigator choose the items according to his own convenience. The sample size depends upon the convenience of the investigator but the chances of inaccuracy and biasness are more.

ANALYTICAL TOOLS
STATISTICAL TOOL
TIME SERIES
MEANING: The set of data collected on the basis is called as Time Series. In other words, when datas are observed on the basis of time, days, month or years, these are known as time series. Under time series, there are two types of variables: 1. Independent variables: This represents the Time. 2. Dependent variables: This represents chances taking place in the value of data (population, sales, production etc.) with the passage of time. DEFINITION: A set of data depending on the time is called time series. KENNY AND KEEPING A time series consists of data arranged chronological. CROXTON AND COWDEN UTILITY OF TIME SERIES: The study of time series has great importance in economic and business world. Some of the utilities of time series are: 1. 2. 3. 4. 5. 6. To study the past behavior of the data. To forecast future behavior Estimation of trade cycles Comparisons with other time series Study of present variations Universal utility.

LEAST SQUARE METHOD: This is the best method of trend fitting in a time series and is most used in practice. This is a mathematical method and a trend line in the method is fitted or obtained in such a way that following two conditions are fulfilled. Merit and Demerit of least square method Merits: This method is far better than moving average method because the trend values for all the years are obtained. Not even a single initial or terminal trends value is left over in this method. It results in a mathematical equation, which may be used for forecasting. It is widely used method of fitting a curve to the given data. The results obtained are reliable and appropriate.

Demerits: The computation process in this method is complex which is not easily understandable. This method does not have the attribute of flexibility. If some figures are editing to or subtracted from original data, all computation has to be redone. It is difficult to select an appropriate type of equation in this method.

1800 1600 1400 1200 1000 800 600 400 200 0 2005 2006 2007 1147 1323 1605

Year X 2005 2006 2007 Total

(ATM Machine) Y 1147 1323 1605 4075

X -1 0 1 0

XY -1147 0 1605 458

X2 1 0 1 2

Two Normal equations are:

= Na + bx = a X + bX

XY

Where

=sum of the production

X =Sum of the deviation taken from years.

X 2 =Sum

of the squire of the deviations

XY

= Sum of the multiplication of deviations and production.

4075 + 3a + Ob 458 = Oa + 2b (2)

(1)

Solving both we get a = 1358.33 b = 229

So the equation is 1358.33 + 229 X and origin = 2005 Computation of trend values 1358.33 + 229 (-1) = 1129.33 1358.33 + 229 (O) = 1358.33 1358.33 + 229 (1) = 1587.33 1358.33 + 229 (2) = 1816.33 1358.33 + 229 (3) = 2045.33 1358.33 + 229 (4) = 2274.33

2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 2009 1129.33 1587.33 1358.33 1816.33 2045.33 2274.33

INTERPRETATION : This shows that the number of ATMs is increasing per year and it is expected that it will be 2275 nearly in 2010.

CORRELATION
The correlation refers to the statistical tool used in measuring the closeness of relationship between the variables. DEFINITION : Correlation analysis deals with the association between two or more variables Simpson & Kafka Sr. No. 1. 2. 3. 4. 5. Degree of Correlation Perfect High Moderate Low Absent Profit After Tax (Rs. Crore) 1200 1000 800 871 600 400 200 0 2005 2006 2007 666 1141 Positive +1 Between +.75 to +1 Between +.25 to +.75 Between 0 to .25 Negative -1 Between -.75 to -1 Between +.25 to -.75 Between 0 to -.25

Dividend Per Share (Rs.)

700 600 500 400 300 200 100 0 2005

DPS y 450 550 700 dx -205 0 270 65

700 550 450

2006
dy -100 0 150 50 dx2 42025 0 72900 114925

2007
dy2 10000 0 22500 32500 dxdy 20500 0 40500 61000

Profit X 666 871 1141 Total

KARL PERSONS CO-EFFICIENT OF CORRELATION

r=

(N dx

N dxdy dx. dy
2

( dx)

)(N dy

( dy)

Where N = no of observation r = coefficient of correlation given by Karl Pearson dxdy = sum of the multiplication of the deviations taken from x and y dx = Sum of the deviations taken from x dy = Sum of the deviation taken from y dx2 = Sum of the squares of the deviations taken from x dy2 = sum of the squares of the deviations taken from y
3x61000 65 x50 3x114925 I65 )2 x 3x32500 (50 )2

= 583 .67 308 .220 = 0.9933 INTERPRETATION: The above calculation shows that the profits and dividend per share are highly correlated. When there are more profits dividend is distributed.

179750

Limitations of the Study

LIMITATIONS OF THE STUDY

Due to constraints of time & resources the present study is likely to suffer from certain limitations some of these are mentioned below, so that study can be understood in a proper way :

Area covered under the report as sample size was very small. The research was carried out in a short period of 6-7 weeks as a part of summer training. The project was completed within the given time frame.

Some of the respondents of the survey were unwilling to give information.

Sometimes wrong respondents provided information, which needed to be, crosschecked & verified.

Chances of biasness are there because of the use of convenient sampling.

Some respondents were not available and thus needed data could not be found.

Availability of data was a constraint due to only on those schemes are considered, which is available.

Though every Precaution has taken due to large data & complex calculation there may be chance of errors.

FINDINGS & INTERPREATION

Q1. How did you come to know about HDFC Bank? SOURCE Friends Marketing Advertisement Exhibitions Others %AGE OF RESPONDENTS 35 40 10 10 05

40 35 30 25 20 15 10 5 0 1 2 10 3 4 5 10 5 35 40

INTERPRETATION : As shown by the table above, people who come to know about the HDFC Bank through friends are 35%, through Marketing are 40%, through Advertisement are 10%, through Exhibitions are 10% and through others are 5%

Q2.

What factor plays an important role while opening an account? %AGE OF RESPONDENTS 20 30 15 20 15

FACTORS Advertisement Special Offer Operational Staff Convincing Power of Executive Credibility of Bank

% of Respondents

Convincing Power 20%

Credibility of Bank 15%

ADS 20%

Operational Staff 15%

Special Offer 30%

ADS Convincing Power INTERPRETATION :

Special Offer Credibility of Bank

Operational Staff

30%, after conducting the survey advertisement plays 20%, Special Offer plays Operational Staff plays 15%, Convincing Power of Executives plays 20% and Credibility of Bank Plays 15% role while opening an account in HDFC Bank. Thus study shows that special offer plays the most important role while opening an account according to the respondents.

Q3.

Which product does you use the most? %AGE OF RESPONDENTS 44 22 26 8 % of Respondents

PRODUCT NAME Saving A/c Current A/c Fixed Deposit Demat A/c

Demat Account 8% Fixed Deposit 26%

Saving A/c 44%

Current A/c 22%

Saving A/c INTERPRETATION :

Current A/c

Fixed Deposit

Demat Account

I this table shows that the people who are using Saving A/c are 44%, Current A/c are 22%, Fixed Deposit are 26% and Other are 8%. Thus the study shows that Saving A/c is the most preferred product of HDFC Bank by respondents.

Q4.

Which FD Scheme is mot popular? FD Scheme %AGE OF RESPONDENTS 30 45 25

Simple FD Super Saver Sweep in A/c 5 Years tax saving FD

% of Respondents

Sweep in A/c 25%

Simple FD 30%

Super Saver 45%

Simple FD INTERPRETATION :

Super Saver

Sweep in A/c

This Table shows that people are using simple FD are 30%, Super Saver are 45% are Sweep in A/c are 25%. Thus the study shows that Super Saver is the most popular FD Scheme by the respondents Most Popular FD Scheme.

5.

Are you able to maintain AQB of Rs. 5000 in saving account? PERCENTAGE OF THE RESPONDENTS Yes No 85 15

This can be shown by this graph % of Respondents

90 80 70 60 50 40 30 20 10 0

Yes

No

INTERPRETATION : Most of the customers were able to maintain average Quarterly Balance.

Q6.

Which of the following Direct Banking Channels (DBC) you avail the most? DBC FACILITIES ATM Phone Banking Net Banking Mobile Banking %AGE OF THE RESPONDENTS 45 10 25 20

PERCENTAGE OF RESPONDENTS

45 40 35 30 25 20 15 10 5 0

Percentage

ATM

Phone

Net Mobile Banking Banking

DBC Facilities INTERPRETATION : Thus study shows that ATM is the most preferred Direct Banking Channel by the respondents.

Q7.

What are the causes for not using any of the Direct Banking Channels? CAUSES %AGE OF THE RESPONDENTS 32 42 15 5

Unawareness Lack of Knowledge Feel more secure while banking personally Unsatisfied

PERCENTAGE OF RESPONDENTS
Lack of Knowledge 5% Feel more secure banking personally 32%

Unawareness 21%

Unsatisfied 42%

Feel more secure banking personally Unsatisfied Unawareness Lack of Knowledge

INTERPRETATION : This graph shows that the main cause for not using DBC by respondents is lack of knowledge.

Q8.

How will you rate performance of director banking channels you are using? PERFORMANCE OF OBC Best Good Fair Poor Very Poor 40 30 20 %AGE OF THE RESPONDENTS 40 30 20 7 3

40 35 30 25 20 15 10 5 0

7 3 Best Good Fair Poor Very Poor

INTERPRETATION : The graph shows that 40% people says DBC Best, 30% says DBC is good, 20% says DBC Fair, 7% says DBC is poor and 3% says DBC is very poor in its performance.

Q8.

How would you rate performance of HDFC Bank? CAUSES %AGE OF THE RESPONDENTS 40 35 20 3 2

Best Good Fair Poor Very Poor

PERCENTAGE OF RESPONDENTS
Poor 3% Very Poor 2%

Fair 20%

Best 40%

Good 35%

Best

Good

Fair

Poor

Very Poor

NTERPRETATION : This graph shows that 40% people says HDFC is Best in its performance, 35% people says HDFC is Good, 20% says it is Fair, 3% says it is poor and 2% people says it is very poor in its performance.

Q10. Did you face any problems while maintaining your account in bank? % OF RESPONDENTS 80 70 60 50 40 30 20 10 0 Yes No 26 74

INTERPRETATION : This Graph shows that 26% people says they are facing the problem while maintaining the Account and 74% people says they are not facing any of the problem while maintaining the Account in HDFC Bank.

Q11. Why do you prefer HDFC Bank? FACTORS Better Facilities Plan Selusen Agents Others PERCENTAGE 20 30 30 15 5

30 25 Percentage 20 15 10 5 0
Better Facilities Plan

30 20

30

15 5
Selusen Agents Others

Factors INTERPRETATION : The graph shows that 20% respondents preferred HDFC Bank because of Better Facilities, 30% because of Better plan, 30% because of Selusen, 15% because of agents and 5% because of other facilities.

Swot Analysis

SWOT ANALYSIS
STRENGTHS : It has an extensive distribution network comprising of 535 branches in 312 cities & one international office in Dubai this provides a competitive edge over the competitors. The Bank has a strong retail depository base & has more than million customers. Bank has strong brand equity. ISO 9001 certification for its depository & custody operations & for its backend processing of retail operations & direct banking operation. The bank is a market leader in cash settlement service for the major stock exchanges in its country. HDFC Bank is one of the largest private sector banks working in India. It has a highly automated environment in terms of information technology & communication system. Infrastructure is one of the best in the country. It has many innovative products like kids Advantage scheme, NRI services. WEAKNESSES : Account opening and delivery of cheque book take more time. Lack of availability of different credit products like CC Limit, Bill discounting facilities. Complicated terms and conditions of products, which is not easily understandable by the layman. OPPORTUNITIES : Branch expansion Door step services

Greater liberalization is foreign ownership via FDI in Indian Pvt. Sector banks. Infrastructure movements & better systems for trading & settlement in the Govt. securities & foreign exchange markets.

THREATS : The bank has started facing competition from players like SBI, PNB in the finance market itself. This may reduce the profit margins in the future. Some Pvt. Banks have 7 days banking.

Conclusio n

CONCLUSION
35% of respondents carne to know about bank through friends while 40% through marketing executive 10% through ads and exhibition each. Special offer with the products played an important role while opening an account as suggested by 30% respondents are credibility of bank plays important role as suggested by another 15% of respondents agreed while 15% of respondents agreed operational staff and convincing power of executives play important role as 20%. Saving account is the most important product, next come FD, then current and lastly Demat. Super saver scheme is the most popular scheme in FD. Around 85% of respondents are able to maintain their AQB of Rs. 5000 in saving account. ATM facility is mostly used among all direct banking channels as 45% respondents agreed to this. Lack of knowledge about DBC is the most important reason for not using DBC. Also awareness about them is the reason DBC performance is rated as satisfactory. HDFC Banks performance is rated as satisfactory. Executives have satisfactory knowledge about products. 74% of respondents faced no problem while maintaining their account. HDFC Bank is preferred the most because of facilities & better plans & selusen.

Suggestio ns

SUGGESTIONS

Promotional efforts like advertisement canopies increase in number of Marketing Executive, distribution of brochures, sponsoring various shows & functions should be increased to increase awareness about HDFC Bank and its products and attract customers.

On line trading of shares should be started for Demat A/c holders.

Service charges for non maintenance of AQB in saving account should be decreased.

Demonstrate the use of Direct Banking Channels (DBC) like ATM, phone banking, net banking, for account opening and delivery of welcome kit, time should be reduced.

The bank should provide regular and frequent calls to their profitable customers to retain clientele & to make them feel more comfortable and attached to the bank (CRM).

HDFC Bank should also bring a new feature of CC (Cash Credit) limit.

Bibliogra phy

BIBLIOGRAPHY
Websites : www.hdfcbank.com www.pnb.com www.statebankofindia.com finance.indiamart.com rupya.com tribuneindia.com ingvsjabank.com kotakmahindra.com

Journals :

Annual reports or annual statement of HDFC bank Broachers of HDFC

Treasury Mgt. challenges for India Banking Industry, ICFAI university 536-38.

Annexure

QUESTIONNAIRE
Name Age : : ______________________________________________ ____________________ Sex __________________ _____________________ Phone No. : ______________

Occupation : 1.

How did you comes know about HDFC Bank? Friends Ads Marketing Exhibitions Special Offers Other

2.

Which factor plays an important role while opening an account? Advertisement Convincing power of Executives Operational Staff D Credibility of bank

3.

Which product do you use the most? Saving Account Current Account Others FD Super saver A/c

4.

Which FD scheme is mot popular? FD Sweep in account

5. 6.

Are you able to maintain AQB of Rs. 5000 in savings account? Yes you avail the most? ATM Mobile Banking Net Banking Phone Banking No Which of the following facilities Direct banking Channels (DBC)

7.

What are the causes for non using any of the Direct Banking Channels? Unawareness Lack of knowledge about use Unsatisfied Others

8.

How will you rate performance of direct banking channels you are using? Best Poor Good Very Poor Fair

9.

How would you rate performance of HDFC Bank? Best Poor Good Very Poor Fair

10.

Did you face any problems while maintaining your account at bank? If yes please mention what problems you faced. Yes __________________________________________________ No __________________________________________________

11.

Why do you prefer HDFC Bank? Better Services Other Better Returns Attractive Plans Agent Known

12.

Suggestions : ________________________________________________________ ________________________________________________________

Place : _________________ Date : __________________